Why I no longer own a credit card

We live in the age of credit; new phone, new car, you name it and it’s financed. Gone are the days of saving for what you want. Yes it’s the age of instant gratification and let me explain why this is making you poor.

Investopedia defines credit as a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some date in the future, generally with interest. Investopedia defines a credit card as a card issued by a financial company giving the holder an option to borrow funds, usually at the point of sale.

So let’s get something straight, this small piece of plastic by definition inhibits your ability to manage your money while simultaneously reducing your wealth and enabling you to live above your means.. what ever happened to ‘responsible lending’?

So how does this directly inhibit your wealth? Not only are you by definition living above your means, but you are also no longer accountable for your money, why? Because you’re not feeling or seeing the money being spent which is why each week I withdraw my entertainment budget in cash so I can see and feel the money I’m spending, it enables you to be more accountable and you’re more likely to question how you spend your money and what things you really need to purchase.

In addition to this, owning a credit card also decreases your ability to borrow money. Even if you pay off your credit card each month the bank will look at the limit of your credit card and say that you have the potential to get into that amount of debt and so they add this amount into your liabilities and monthly expenses, both of which limit your borrowing capacity.

It is also easy to overspend with a credit card as most people have a limit that exceeds their monthly income so if something goes wrong you’re at risk of not being able to repay this, which can affect your credit rating and your ability to borrow in the future.

Now some people will argue that there is such a thing as good debt, yes good debt is debt against an appreciating asset, but let’s be honest how many of the purchases you make on a credit card or on finance are for an appreciating asset?

So what is the first step to building wealth? The first step is knowing how to budget and understanding where your money is going. Most people are of the view that if they earn more they will save more when in fact statistically you save more on average when you earn less, and this is because if you’re in the habit of spending what you earn this habit will remain irrespective of what you earn meaning you’ll end up spending more simply because you have more to spend and that is the very definition of being broke. Wealth is created in the gap between what your expenses are and what you earn, the aim is to increase this gap.

So where do you start? Let’s take a look at your phone and your car. You may not realise but by getting the latest smartphone each year with your phone plan you’re actually financing your phone.

Yes $89 per month doesn’t seem like a lot but when its over 24 months that equates to $2,136 and yet had you purchased a brand new smartphone for $1,200 and taken up an unlimited $22 per month phone plan like I have with Vodafone, your total cost over 24months would be $1,200 for the phone and $528 for the phone plan, totalling $1,728 which has saved you $408. With $408 you could have gone to three fine dining restaurants if not more with that money or purchased half a trip to Bali through Groupon with that money.. I know which one I’d choose.

Now let’s take a look at your car.  Yes driving a shitbox sucks and having just done it for a week while my car was being repaired I feel your pain but the fact of the matter is if you can’t afford it in cash then you shouldn’t be buying it.

Not only do car loans reduce your borrowing capacity when you want to buy a property but they also increase your expenses so that gap we mentioned where wealth is created, you’re actively decreasing it.

If you’ve even purchased a car you’ll remember the first two questions you’re likely to be asked, “how much are you looking to spend?” and “Are you looking for finance”? Seems innocent. The reason behind asking if you need finance is for one thing and one thing only. Commission.

Car loans often work differently from home loans whereby banks don’t pay commission on car loans.  What does that mean? That means that how brokers, bankers and dealers make money is by loading their commission (between 10 to 20 per cent of the purchase price of the car) onto your loan, which they often don’t disclose. Say What?! Yes we all need to make a living but let’s be upfront about it!

What’s worse than this and yes it does get worse, not only are you paying 10-20% of the purchase price of the car in commission, but because this is loaded onto your loan, yes, you guessed it, you’re paying interest on this as well! It’s the gift that just keeps on giving.

Now if you’ve gotten yourself into a bit of mess with your finances it’s simple enough to get yourself out of it, the first step is to write down absolutely everything you spend money on, even it it’s 50 cents, then you need to make a list of the expenses you have and only keep the necessary, and a list of debt you have and how much your repayments are on this. Then you need to work out your income and of course look at ways you can reduce your expenses.

If you’ve gotten yourself into a bit of credit card debt that you wish to get out of and can’t afford you can call your bank and request a copy of your contract under a section of the Act in which the bank has 30 days to provide this to you. Most financiers were a bit slack at issuing contracts for credit cards so it gives you a leg up in negotiating what is called a settle for less arrangement whereby you agree to pay the bank a lesser amount of what you owe them and if they also agree you will be able to get some of your debt wiped without affecting your credit rating. You can also under another section of the act negotiate the terms of your contract.

If you have financed your car and are finding the repayments unaffordable, you can do something similar where you speak to the lender and either negotiate securing the car loan against the car to bring the repayments down if it’s not already a secured loan or you can agree to sell the car yourself and negotiate a settle for less payment of the shortfall if any or unsecuring the shortfall from the car itself and repaying this over time.

Remember the aim is to reduce your expenses, increase your earnings, eliminate debt and most importantly create wealth, so you can be in a position to live life on your terms and not have to settle for less.. that’s what your financier should be doing, not you.

Pay Calculator

Pay calculator is an important tax calculator for anyone wants to know exactly hoe much you get paid Monthly, fortnightly and weekly.

What is a Pay Calculator?

Why Pay calculator is a simple calculator to measure how much you are getting paid after tax and before tax. also, it helps to view the superannuation contribution your paying from each pay. It’s also known as salary Calculator.
Income tax is the main reason most people use this kind of calculators. beacuse it is hard to identify taxable income and non-taxable income. people required this information when they apply for finance and especially for the tax time.


Depends on your income You have a Medicare levy of $1,000.00. The calculation on the Medicare levy assumes you are single with no dependants. Sometimes you do not have to pay additional levies.
Also, depends on your income you may qualify for $250.00 Low Income Tax Offset. This tool also helps to see your qualified for Family Tax Benefit or not.

How does income tax works in Australia?

In Australia, we have a progressive tax system. higher the income you earn, higher the tax you pay. To calculator your total tax. first, you need to calculate your taxable income first. to do this you need, to sum up, all your income for the year including Wages, Interest income, Dividends and Rent income and minus all the deductions and then you will have your taxable income.

When you have your taxable income, now ou can calculate how much tax you have to pay.

You don’t have to pay tax if you are earning $18,200 or below. This is the main tax table

  • Below $18,200 = No Tax
  • From $18,200 to $37,000 = 19% Tax
  • And $37,000 to $80,000 = 32.5%
  • Between $80,000 to $180,000 = 37%
  • Above $180,000 = 45%

There are some other factoris efffects on final tax statement. those are
Medicare Levy
Medicare Levy surcharge
Budget repair levy
Tax offsets or rebate


More Resources

ATO (Australian Taxation Office)

Individual income Tax rates


Business Loans – What You Need to Know About Business Loans

Business loans are the loans that are provided to businesses for different purposes by the lenders. These loans may or may not have lesser restrictive requirements, which enable businesses to secure their funds. Business loans can also provide further incentives for the borrowers that can minimize the expenses of their business.

What is a Business Loan?

Businesses, whether small or large, could be engines of the economy. However, there is a great need for these enterprises to find ways of funding which then leads them to acquire business loans. Many businesses find the lending process to be frustrating and complicated. Yes, it could be difficult to obtain funds but it is still needed to maintain the flow of cash in your business.

Should I take a Business loan out for my business? (Video)


Here are some ways of improving your odds of getting a business loan:

  1. Put yourself in the shoes of the lenders. Lenders usually ask themselves why they should let you borrow money. So, if you are applying for a business loan, consider it as if you are applying for a new job. You also need an impressive application.

This means that you should understand your financial status and decide on the things that you can put as collateral, such as your own house. Business people who do these are the ones who strongly believe in their businesses. Credit quality and cash flow are other factors t consider, too. Make sure to look professional.

  1. Determine how much amount of money you need. Some businesses are fond of borrowing a monetary amount that is really higher than what they need. This can cause you to be rejected by lenders.
  2. Learn from your previous mistakes. If lenders reject you, you should know why. Figure out your mistakes and do not do the same mistakes again when you seek another business loan lender.
  3. Use poor credit as collateral. Others in the B2B environment use poor credit with receivables as collateral. For alternative lenders like internet lenders, they will charge you with higher interests but will have a relaxed standard.
  4. Always consider working with SBA lenders. Working with Small Business Administration-backed is the first step for you. Most businesses think that they are not eligible. These SBA loans oftentimes have lower interest rates and have reasonable repayment terms. It does not mean that if an SBA lender rejects you, others will also. Not all business lenders are like this.
  5. Determine what you are getting into. This means that you need to learn the Annual Percentage Rate (APR) of the business loan you are applying for. You should know what the fees are and the pre-payment penalties. Always be informed.
  6. Online lenders may also provide funding. As mentioned, if other loan alternatives fail, for instance, those who have bad credit, online lenders can also be an option. Aside from eve higher interests, they have also known for poor transparency onerous terms. So, ensure that if you are badly in need of money, you should be able to pay the debt.
  7. Small banks are more helpful compared to big banks. There are bigger banks that only prefer to work with large customers. If you are planning for a business loan, try out small banks first.

When Should You Apply for a Business Loan?

Bank loan process
Source Bank loan process 

Yes, it is true that not all reasons of borrowing money for your business are good but that does not say that there are no good reasons for you. Well, if your business is now ready to go to a next level but you are currently short of capital, you might want to consider applying for a business loan. Here are the factors that would tell when you should apply for a business loan:

  • Expansion of Physical Location

If your business space is already becoming limited for your operations, there might be a need for you to expand. However, expansion of the physical location of a business is not cheap. You surely need funding to make this happen. The expansion is a good indication that your business is growing but along with this growth is the need for you to be financially prepared for it.

  • Building Credit for the Future

If you are thinking of applying for larger funding in the coming years, applying for a small business loan today is a great step. Start with a smaller loan so that you can effectively build your business credit.

  • Equipment

If you need to buy equipment to improve the operations and performance of your business, you need a loan to finance the equipment such as machinery or IT equipment and other tools.  Equipment loan sometimes requires the equipment to be the collateral like for car loans.

  • Purchase More Inventory

Inventory is one of the highest expenses for any type of business. Just like to buy equipment, there is a need for you to keep replenishing your inventory with high-quality choices. Business loans are common to seasonal businesses because there are times when you need large cash t o support your inventory.

Whatever you may have for applying for a business loan, be sure to take the loan that will serve you business right. Ensure to pay the business loan over a period of time as your business succeeds. All business decisions that you make is risk-taking and business loans are one of them.

What are the Types of Business Loans?

A business loan is taken into account for several reasons. It is an excellent tool to secure financing that can maintain any business operations. Whether you want to invest it in necessary equipment or start a new branch, a business loan is a perfect solution that you can ever have.

Not only that, it is easy and simple to gain because there are amazing lending institutions for you. With a good credit score, you can get the loan you apply for conveniently. You can also have enough capital during tough economy issues.

Before you apply for a business loan, there are types that you need to consider. Here is the list of the types of business loan.

Unsecured Business Loan

An unsecured business loan is a type of loan that does not require any collateral. However, it is primarily based upon the creditworthiness of a small business borrower. Its best example is the signature loan. When you have a good credit score, you have more chances to qualify for an unsecured business loan. But, most of the banks out there prefer to secure loans with collateral such as equipment, real estate, and other business assets.

Many lending institutions or banks ascertain the loan-to-value ratio of your declared collateral. They based in on the nature of your asset. When you need a high amount of business loan, it is better to ask your chosen banker. You have to understand that banks are different when it comes to set value. In doing so, you can get the loan that your business completely needs.

Nonetheless, there are various lenders who consider unsecured business loans in a different manner. They apply a lien on business assets until borrowers fully pay the balance. This allows you without a superb credit score get a small business loan. When you do not have enough credit score, this is the loan that is an ideal solution you should grab.

Secured Business Loans

A secured business loan is a common type of funding for small businesses. It is a business financing that is secured by personal guarantee and a collateral (a valuable asset). Whatever your option to secure your loan application, you promise your chosen lender to pay your debt if you are unable to pay your loan, a bank institution can employ the collateralized asset to recover their losses.

At the end of the day, you can get a more wonderful loan offer with lower interests and longer payment terms. Instead of taking advantage of loan sharks near you, choosing a secured business loan is an efficient decision. You just have to do your responsibility to avoid complex issues in the future. When you do not want to get your valuable asset, repay your debt.

Applying for business financing cannot only be a daunting task but also a frustrating one. Though you pass all the requirements, you may still not qualify. Bankers strictly secure business loans as they want to eliminate their risks. If you have an amazing credit score and profitable small business, your loan can get approved fast.

Although the process takes time, you can have enough principal within a peace of mind. If you need cash right away, this type does not suit to your situation. You should select other types of business loan.

Residentially Secured Overdraft

A residentially secured overdraft serves as a safety net when your expenses are high. It can also be an essential part of your budgeting techniques. It is said as a residentially secured overdraft because you will use your property as a security for your overdraft. When you make this as your number one option, you can enjoy various benefits such as low-interest rate and no monthly fees. But, choose a reliable service provider to make satisfaction guaranteed.

Commercially Secured Overdraft

Aside from residentially secured overdraft, you can apply for a commercially secured overdraft. Whether you want a flexible short-term finance or variable interest rate, you can experience your goals depending on your lending institutions.

When your present bank does not have the factors you weigh in mind, you are very fortunate because there are many outstanding providers for you. With enough time and unmatched patience, you can find the one that best suits to your case.

Applying for commercially secured overdraft can give your business ample budget. You can operate it successfully. When you need to buy materials for your product manufacturing, it could be a great financial assistance on your part. You can also have enough money for business expansion and other indispensable ventures.

Residentially Secured Term Loan

Do not you have sufficient budget to develop your small business? Do you want to buy premises for business expansion without cash in your bank account? If that is the case, worry no more as there are residentially secured term loan that is designed to cater all your criteria.

You do not have to borrow money from the modern lending institutions because they can tremendously affect your business as well as life. Use your residential property as a collateral to get a secured term loan.

As a borrower, you have to be more careful to avoid choosing unreliable lending companies. With a trusted provider in the industry, you can experience a good loan term, low application fees, low monthly expenses, secured residential property, and much more.

Whatever your credit amount is, you can pay your debt. Within a long term payment, you can acquire high revenues and Return on Investment (ROI) for your loan. As a business owner, you have to try your best to grow your residentially secured term loan to prevent predicaments you cannot afford.

Commercially Secured Term Loan

Apart from borrowing a term loan that is residentially secured, there is a commercially secured term loan. When you cannot make your house as a collateral, your small business can be a good valuable asset to secure your loan.

This might be a risky decision, but you can lessen loan related adversities with a reputable banker. Within a reasonable loan term payment, use the money to improve your business. You can employ it from equipment development, principal, business expansion to marketing strategy.

Business Loan Features

A business loan is what entrepreneurs should choose when they lack the budget for business growth, marketing, and success. Instead of borrowing loans from illegal providers like loan sharks, they should apply for a business loan. When you have the same situation, you should make a dependable and incredible lending institution as your leading option. For sure, both of you and the lender will feel ensured.

You can protect your valuable assets such as residential property and equipment. Your chosen banker will also have an assurance that you can pay your debt within a loan term. As a borrower, you should have enough background on a business loan, types, and features.

To guide you, below are some business features you have to understand.

Additional Repayments

The business loan has a feature that allows you to make additional repayments. When you have enough money to pay your debt or do not want to have a long-term process, you can add your repayments. You can double your monthly payment so that you can fully pay your balance. If you have plans to make this action, you have to know whether your provider allows it. If they do not have such regulations, there are extraordinary alternatives for you.

Redraw Facility

Redrawing your facilities can help you pay a loan. When you apply for a home loan with a redraw facility feature, you can borrow the money you have repaid. Usually, it is offered with a range of interest rate loans. The higher your loan is, the higher your interest rate is. With a certified and qualified lending company, you can encounter fairer interests though you have a bigger amount of loan.

A redraw facility can also make you flexible on how you will repay your debt. When you have enough savings in your bank account, you can use it to fix your loan. Like additional repayments, you can pay off your loan as quickly as possible. As a result, you will never experience headaches on how to finish repayment process.

Lump Sum Repayments

Lump sum repayment is a single payment for a business loan. It allows you to repay your whole debt within a short run. If you have enough cash to be fully paid, you can choose lump sum repayment. Depending on your lender, you can achieve this feature of business loan features.

Switching between variable and fixed

When you apply for a commercial loan, you may choose a variable interest rate or a fixed interest rate. All over your loan, you can switch between the former and the latter. Both of them provide a lot of benefits. That is why you have to opt the one that suits you.

Are you going to apply for a business loan? If so, you have to be a responsible borrower so that you can borrow money again from your financing company. With the given business features, you will definitely have a hard time to pay off your debt. In addition, just use the money wisely. If you cannot handle it accordingly, you have to do your best.

When borrowing money from a lending institution is more complicated, be patient and determined in order to get what you need. You also have to boost your credit score so that you can increase your chance to get a high business loan approved.

How to Find an Outstanding Value Loan

Loans are provided by lenders to borrowers with a payment of the interest in return. Borrowers agree to pay their loan as well as the interests over the period of their loans within a series of periodic payments.

As your regular payments clear out your loan balance, the Present Value (PV) of payments must all be equal to the value of your loan. An example that best demonstrates this is the one below.

  • Suppose your business takes a loan of 100,000 (PV) for 4 years at 6% interest rate and you have agreed to pay it in 4 equal installments with the amount of 28, 859.15 every year-end. The PV of the annual payments will be given by the PV of the annuity formula:

PMT = Periodic loan payment = 28,859.15

i = Loan interest rate per period = 6% per year

n = Number of loan payments required = 4

PV = PMT x (1 – 1 / (1 + i)n) / i

PV = 28,859.15 x (1 – 1 / (1 + 6%)4) / 6%

PV = 100,000

Note: At the beginning of your loan, the PV of your loan installments is always equal to the amount of the loan.

Calculating Outstanding Loan Balance

As mentioned above, the PV of your loan installments is always equal to the amount of the loan. It also means that as the loan installments are already paid, the PV of the outstanding loan installments should also be equal to the amount of the loan at a certain point to say that it is equal to the outstanding loan balance. Outstanding loan balance equals to the PV of the outstanding loan installments.

You can use this information to compute your outstanding loan balance. For instance, after the payment of your first installment, the outstanding balance must be the PV of the 3 remaining installments like the example below.

Pmt = Periodic loan payment = 28,859.15

i = Loan interest rate per period = 6% per year

n = Number of loan payments remaining = 3

PV = Pmt x (1 – 1 / (1 + i)n) / i

PV = 28,859.15 x (1 – 1 / (1 + 6%)3) / 6%

PV = 77,140.85

Outstanding loan balance = 77,140.85

To further check, you can show this by simply computing the outstanding loan balance even without the use of the annuity formula. With every payment, the loan balance drops. As an example, after your very first payment, your outstanding loan balance is the original amount of the loan added to the interest per year and less your first installment.

Loan balance = Loan amount + Interest – Installment

Loan balance = 100,000 + 100,000 x 6% – 28,859.15

Outstanding loan balance =  77,140.85

As a business owner, a business loan is both a blessing and a challenge for you. Whether you are a start-up or already established, additional funds are always needed. Not only to make up for the losses but also the maintain the cash flow of your investment.

Oftentimes, it takes times to see the return of business loans on your investments. But as long as you are dedicated to repaying and using your business loans for the improvement of your business, everything will fall into place.

All of the information mentioned above can surely teach you everything you need to know about business loans. If you are thinking of applying for one, it will now be easier for you to choose which loan suit your needs best. Take time to know what business loans can do for you as well as your responsibilities as a borrower.

Invoice Finance – Smarter business finance solution

Many view invoice finance as a business finance type of complexity. However, looking further will tell you that behind the complexity seen by many, the concept behind it is simple. With finance invoice, you can turn your sales invoice into a loan security for loan series. Designed for businesses that are making money through invoicing some other businesses for works that are completed, it has the capability of reducing the pressures in the working capital through providing funding on the same day for those outstanding invoices.

What is Invoice Finance?

Invoice finance helps in releasing those cash that are tied in the customer invoices that outstands. It is ideal for those companies that are planning for expansion or those who want to see improvement in their cash flow.  Aside from the cash flow improvement, invoice financing also helps in reinvesting in operations, paying the suppliers and employees and the growth earlier than they could if they wait for the customer’s payment. A business will pay the some of the invoice amount percentage to the lender. This will serve as fee for allowing them to borrow money. Invoice financing is a solution businesses take on when they encounter problems where the customers are taking a long time to pay them, which affect the operation of the business. Yes, It’s not easy like undestaning a Business Loan.



Invoice finance does not only benefit the businesses. Even the lenders get their fair share of benefits to reap at. Lending money with invoice financing is different from line of credits that can extend and have no security. Here, the outstanding invoices will serve as the collateral. They can also limit their risks, as they do not need to advance the full invoice amount to the business lending with them. Invoice finance does not guarantee that the risks are eliminated. There is a high possibility that the customers will not pay their outstanding invoices. When this happens, it would result to a collection process that is both expensive and difficult. It is up to the business how they can collect their money back and pay the lender.

What is Invoice Finance
What is Invoice Finance

There are 2 main types of invoice finance: factoring and invoice discounting. Factoring provide control both on funding and the credit. It enables you to access the value from the outstanding customer invoice even before they are paid. In this type, the company will be selling the outstanding customer invoice to some lender that will pay them from 70% up to 85% mount worth of the invoice. When the lender receives the full payment for that invoice, they will then remit the remaining percentage and the business will be paying for the interest and the service fee.

On the other hand, invoice discounting provides control with the funding only. Here, you are provided with the finance that you need. However, the control on collecting payments on the outstanding invoices remains on the credit team.   This is almost similar with the invoice factoring. The only difference is that the company will still do the payment collection instead of the lender. This way, customers are not aware of the arrangement between the lender and the company. The invoice amount that the lender will be advancing to the business is also higher at 95%. After the clients pay the invoices, the business will then repay the lender and that alone. In this type, they will not need to pay for any service fee. This is very simillar to Debtor Finance 


Benefits of Invoice Financing

Invoice financing like all other business finance strategy come with benefits that make business people consider it worthy of their time and effort.

  • Cost-Effective – Every business has its own specific requirement. You can get best valued deals if you can find good lenders to do business with.
  • Security – Protect the company against insolvency with the customers.
  • Speed – this helps you access funds even before the invoices are paid. This way, you can continue with your operation without delay.
  • Confidentiality – the use of invoice finance facility is only between the company and the lender. They will disclose the agreement only when the company agrees to it.
  • Control – the control for your finances is in your hands.
  • Choice – your sales ledger management and credit control can be handled by an expert team or by yourself. It would be your choice.


How Invoice Finance Works

Sometimes, invoice financing is considered as an expensive and complicated way to increase finance. But, service providers are always on a mission to prove how cost effective and simple it can be. As have mentioned, invoice finance has two main forms – invoice discounting and invoice factoring. Invoice discounting is unidentified, meaning it is a confidential service in which your clients won’t determine of your involvement, whereas invoice factoring is a released arrangement.


There are four important steps to invoice factoring:

  1. Submit an invoice to a factor

Some things will occur if you submit an invoice to a factor. They will initially know if you meet admissible criteria to get financing. Also, they will conduct owed diligence on the client you are invoicing to determine if they’re really good credit risks. You and the factor will eventually sign a financing agreement if the factor you have chosen decides to accept your business based on the research they have conducted. An initial maximum amount of money will then be settled for you to borrow.

  1. The factor lends you an advance

Also known as advance rate, an initial advance will be given by the factor. Generally, it is anywhere from 70 to 98% of the factored invoice’s value. The amount of advance you will receive depends on your industry, your transaction’s size and any other risk factors. At present, the factor can also give out a notice of assignment to the customers you have selected to factor. The notice of assignment asserts that your business has allotted the factor as the entity to get further payments for all invoices. The factor will pass along the payment once they receive the invoice payment that you have not factored.

  1. Your customer compensates the factor

Your customer will compensate the factor within thirty, sixty or ninety days, as stated by the terms of the invoice.

  1. The factor gives you the outstanding balance minus payments

The factor will now give you the outstanding invoice balance after getting your client’s payment. This is called reserve amount, minus their payments.

How invoice discounting works

Invoice discounting allows businesses to obtain dollars as soon as the invoice is presented, quickly getting money for much needed working capital to support the growth and need of a company. The benefits of invoice discounting don’t only end here. But, how effective does it work?

  1. You supply products and services to your clients.
  2. You send the invoice to your clients, but allocated to a nominee bank account and a copy to yourself.
  3. The factor will give you up to 85 percent of the invoice amount in 24 hours. At this moment, a service charge is abstracted from your account as a ratio of your turnover.
  4. The client fully settles the invoice. This is done by making their imbursement direct to the factor. Once the outstanding balance is paid, a small finance payment is abstracted from your account, charged as a fraction of the amount loaned.
  5. When the invoice is already cleared, the factor is now ready to give you the outstanding balance.

Before becoming eligible for invoice discounting, invoice discounters will expect you to show that you are really an established lucrative business with assessed accounts and a noble credit control management procedures in position. With so many business bankers that offer reliable service, you might find it confusing which one to work with. You should conduct a thorough, comprehensive research to give you real peace of mind.

Is Invoice Finance Right for Your Business?

Every kind of business or company requires the right amount of funding to advance or set a new level of transactions. In this case, it would be better to consider having financial services so that the sourcing of income and funds would not be a difficult one to have. There comes Invoice Finance on the line and like invoice factoring, it makes your business gain many benefits.

How is this possible? Let us find out if it is right for your business:

  1. It makes Companies Expand Well

The direct settlement of the invoice is essential in collecting the payments and funds for the company. In this way, you can be sure that the fund sourcing of the company would fall directly into your hands. This would provide you better options to weigh your savings and add more income to your business. Thus, it has the right way to expand.


  1. Effective Business Start-ups

A business or company requires a great start-up so that to ensure if it will meet the client standards or the company preferences. In this way, you can be sure your business would not qualify for overdraft or loan finance. The result would be fewer debts for the company and a reason to make effective options in managing the business. This could lead to the fast expansion of the company.


  1. Launching of a new product

Every business requires an excellent finance service to ensure if the product would be effectively launched. This would require a huge need for capital. With the adequate funding and payments given by Invoice Finance, there is a sure way for you to have the large capital that you need to expand the business. In this way, no difficulties would be assured to you.


  1. High well Managed Businesses

A business with the right source of funds would not have any problem when it comes to managing the business. With a huge income comes the better handling of the resources. It would assure you of the best options to take. If you will manage your business well, you will reach the point in seeing your business prosper in an excellent manner.


  1. International Business Trading

The financing of invoice and payments could lead to a big deal. If you’re using invoice finance, it would help succeed on the many efforts you would be doing. The emergence of business due to the huge capital would assure of the best ways to making the business prosper. You are given the right connections and the right procedures. The result would be a great international business expansion.

Bottom Line:

Invoice Finance is good in many aspects. Aside from the fact that it would the sourcing of the funds easier, it also gives you the right measures to in the business. With this, there is a guarantee of efficient use and management of the business. Invoice finance would directly provide you with the clients you need. Thus, a fast successful business would take place in the future.

What is Invoice Finance?

Even though there are a lot of ways how to deal with cash flow of a small business, it’s still essential to becoming an expert in this stuff if you plan to stay in the market, all of the advice for maintaining cash flow becomes more redundant once you find yourself in the struggle for revenue.

Single invoice finance is a ground-breaking solution, which you can call upon right away whenever you need it – offering you the chance to increase your cash flow on an invoice-by-invoice basis. This is a kind of factoring, which enables corporations to finance a single invoice, rather than having to finance the entire accounts receivable ledger. This is utilized by corporations, which need to provide net 30 to net 60 terms to clients, however, cannot avail to wait for payment.

The solution has been gaining a lot of popularity, as it is a flexible way to finance small business, which requires working capital. Further, single voice finance is also considered in the industry as “spot factoring and single invoice factoring.”

It can enhance your cash flow at the same time free the much-needed working capital through giving you around 90% of the worth of a single invoice – along with the remainder paid, minus the small charge, as soon as payment is delivered from the customer. Thus, corporations have access to such refunds in days, instead of months – providing their business the finance, which it needs to run efficiently and grow continuously over time.

Can I use Single Invoice Finance?

In case you didn’t know yet, single invoice finance can be utilized for the majority of businesses, which need to raise money. It encourages business owners as it can be utilized ‘as and when’ devoid of any hassle of working time stressing paperwork, which might come along with a contract.

How can you know if you have invoices, which are due in thirty to sixty days?

One of the challenges of dealing with big commercial clients is that they sometimes demand payment term as a condition of working along with your company. You need to spend money to offer the product or service and wait for 1 to 2 months for the payment. This delay could generate a problem if you do not have enough money reserves to deal business expenses while you are waiting for the payment. On the other hand, such cash flows concerns normally worsen when the payment you’re waiting for occurs to happen to a big one.

How to Avoid This from Happening

An easy way to solve such cash flow issues is to finance your invoices. This solution offers you with enough funds you need to pay for those important expenses like suppliers and wages. Apart from that, you can also make use of these funds strategically to promote new opportunities. This kind of financing doesn’t need you to finance the entire accounts receivable ledger. It enables you to sponsor a single invoice. Plus, it is flexible, therefore you can utilize it as often as you need it.

Important Things You Need To Know

The entire factoring transaction is structured as the sale of the asset to the factoring company, with the use of 2 payments. Transactions normally flow as follows:

  • The factoring company will check the commercial credit of the customer
  • Raise the invoice with the customer
  • Financing terms are approved
  • The invoice is confirmed with your customer
  • Then, the factoring company will send the first payment for 80 percent of the invoice.

Difference between Invoice Finance and Invoice Factoring

Most of the small or large businesses in the world have funds that are used to handle the business for other purposes. If you have a business, the case of using financial services such as Invoice Finance and Invoice Factoring are essential. These could give you an edge in running your business. Companies can collect funds through this process. However, you must first know its differences to determine which one would suit your preference.

In Invoice Factoring, the provider has the role of managing the sales ledger, control of the credit and checking the client’s invoices. In this way, the client would have the assurance that his or her ledger is checked in an effective way.

On the other hand, in Invoice Finance, the business you have has a full control of its own sales ledger and the mode of payment. In this way, the business has full control of collecting the funds of the business. The ledger is monitored or checked in real time without the help of accounting staff.

Another difference between Invoice Factoring and Invoice Finance is in the sense of confidentiality it has. In the factoring, the funds and the other transactions are made in the natural process. Both the client and the company know the funds that are transferred. In the invoice financing, the transaction is treated confidential and the client will have no idea of the fund sourcing of the company.

In Invoice Factoring, the client directly settles the invoice they have in the financing company. In doing so, the client has full knowledge of the transactions and the sourcing of funds. He or she would do the invoice payments; make the required information and so on. The invoice payments are given directly to the clients and the transaction is between the financing company and the client.

In this procedure, each of the clients is more likely to know Factoring arrangement. This would give them the edge in taking the right kind of measures to make the fund collection and effective and easy task. This makes sure that all things regarding the company funding are handled in an accurate way as possible. Many businesses or corporations would have an easy and successful payment of their funds and the factoring procedures help them in achieving this.

Another difference between the two financial services is that with Invoice Financing, your customers, for example, would still pay you directly. This could be done on an installment basis or any appointed time. The direct payment would ensure you have an idea of the process of the payments and the fund sourcing.  Aside from this, there is no need for the clients to know that a third party would be involved in the transaction of the invoice payments. This would add to the confidentiality of the matter.

What Would You Choose?

Both Invoice Finance and Invoice Factoring are important in your business. However, it will still depend on you if which of these financial services you’re going to choose. If it is your first time in the business, the best thing is to weigh things firs to see the right financial service that is reliable.

If you have a small business and a limited resource, invoice factoring would be the best in your part. However, if the numbers of your resources were unlimited, it would be wise to try Invoice Finance. In either way, the success of the business would depend on your willingness, expertise, and dedication. It is up to you if how would you apply finance or invoice in your business. The sure thing is a success would be the result.


Business loan calculator – Avoid Getting Ripped Off

If you are looking for a Business loan calculator, you probably running a small business and just got rejected from a big bank. Yes we know the pain and how banks treat to Small business owners. You might find there are so many Small business lenders out there. Most of them offer very fast service and ready to lend you money. However, did you ever think, how much you are paying for them?

low_doc_business_loansMost of the small business lenders offer very smarter looking calculators on their websites. But, most of them hiding the real interest rate.

Let’s  get an example and see, how much you are really paying.

Let’s Calculate

Business Loan calculator example
Business Loan calculator example

Above example from Australias fastest growing private business loan lender.

According to this for a loan amount of $50,000 you will pay $233 daily

So the most important question is, How  much interest you are paying? Most of these lenders never mentioned the interest rate. because, they don’t want you to get a heart attack. Let’s calculate.

Loan Amount = $50,000

Daily Payment = $233

How many payments = 264

Total repalyments (233 x 264) = $61,512

Total Intrest = $11,512

Intreat Rate = 11,512/50,000 x 100 = 23.02 %

Yes, you are paying 23% intrest rate for your business loan. this not include any application fee or any ongoing managment fees. most of small lenders have these fees.

Related Article: Debtor Finance


Can we trust private lenders and their Business Loan Calculators?

All of the theses lenders provide accurate data. However, they are hiding the interest rate from you. The best solution is when you call them directly ask for the interest rate. Mention them you have already used their Business loan calculator and you can see the interest rate. As a small business, you have to go for these lenders if you wants to get a Business Loan. Most Australian banks, don’t have an apatite for small businesses and they will only look at your application, after looking at your house value.

What is Debtor Finance

What You Need To Know About Debtor Finance

Debtor finance is described as Cash Flow Finance, Invoice Factoring, Invoice Finance and Invoice Discounting, which permits organizations to be able to access accounts that are owed to their invoices right before debtors pay. This includes the borrowing of money to grow a business and keep it running. Furthermore, debtor finance has a very expansive description depicting a form of finance that uses exchange receivables as a security for any loan.

Almost all businesses need to acquire cash whether for resources such as structures, land or specific supplies to keep them running. In this case, debt financing is playing a vital role, especially in the present time.

Related Article : Business Loan Calculator how to avoid getting ripped off

Advantages of Debtor Finance

  • Flexibility – Debtor finance is a very flexible solution. It’s an extremely good decision for a business to grow and develop rapidly. It’s also very advantageous for expansion because of the increase in sales and debtors.
  • Great Cash Flow – With debtor finance, sales change rapidly into accessible funds in just a day.
  • Retain Business Equity – There’s access to funds for further business development. This includes equipment purchases.
  • Negotiating Power – Almost all businesses can settle even better trading conditions with suppliers. They are allowed to take a competitive advantage to apt payment discounts and the ability to mass purchase.
  • Eliminate Payment Discounts – Debtor finance fees are normally less costly compared to apt payment discounts. The need for the offering of brief payment discounts to the clients is eliminated. Moreover, debtor finance provides for the prominent assurance of funds that are currently received.

Why Choose Debtor Finance?

Debtor finance is one of the most favored options for administration-based organizations like marketing and programming organizations because they need most of the physical resources such as land or property that can be of use to loan security.

On the other hand, entrepreneurs may not have the want to put advantages at risk. Here, debtor finance helps in fueling business development in its early stages if it’s still poorly resourced. Subsequently, an improved income benefits for a business by investing in more equipment or staff. It also negotiates discounts from suppliers through prompt payment of invoices.

Who Provides Debtor Finance?

Debtor finance is offered by different specialist private lenders and major banks. If the supplier is bigger, there will be more accessible alternatives. But this is only worth managing with a businessman who is very much open about costs and in clarifying necessities.

Few suppliers deal with debts and pursue invoices while some anticipate that you’ll chase your debt. The type of debtor finance that you choose will be down to you and the available resources that you have. This means that you need professional advice from a debtor finance expert.

To sum it up, it turns out that managing your finances is a fundamental step to a decent and successful business and life. Whether your wage is little or superior, you definitely need to spare yourself from trouble and stress. Debtor finance can really help you in handling your finances better.

5 Facts about Debtor Finance

Poor cash flow is one of the major reasons why businesses experience underperformance and failure. For small-sized and medium-sized businesses, the most important key towards success is the maintenance of a strong and consistent cash flow throughout the business.

However, there are many firms that struggle when they’re required to create huge capital outlays to their suppliers who demand for prompt payment but later on wait to receive payments from clients within 30 to 90 days.

The problem has been exaggerated by the inflexibility of banks when it comes to providing high level of funding to firms that have insufficient personal property, low fixed asset base, trading performance problems or inadequate trading history.

But now, times have already changed and gone are the days when banks were the first to call for funding, especially for SMEs. There’s an overdraft role which is based from how firms perform historically on the underlying value of security and it has been reconsidered as newer and more flexible forms of finance that have emerged. One particular alternative is the invoice finance or commonly known as debtor finance.

Some times having a Business loan can be better solution than having a debtor finance. Here are 5 facts why debtor finance is becoming a more preferred option for many entrepreneurs today:

  1. Debtor finance is a more flexible form of finance

Invoice finance is providing a more flexible source of financing by permitting business to unlock tied up funds in unpaid invoices, leading to immediate cash injection. The amount of available fund is based from the sales that are made not from the value of balance sheets.

If a firm is doing well, the available amount of fund increases and is linked to sales. This is what they call discounting. To qualify for this, clients like wholesalers, manufacturers or supply services just need to trade by means of credit terms but aren’t limited to recruitment, printing and transportation.

  1. Cash flow, late payment and lack of confidence hinder business growth

Cash flow is a major problem for most companies. For instance, they have to pay temporary workers every week. Long before they can invoice clients, cash flow issues can follow. Moreover, businesses nowadays need to pay GST as well as monthly and quarterly taxes.

When cash flow and late payment problems converge, firms need to look into alternative funding like debtor finance to keep the business running. Without reliable and strong cash flow, business owners will lack confidence to invest or pursue further on new strategies to grow the business.

  1. More institutions have been offering debtor finance

Some high-profile banks and finance companies have been offering discounting for many years now and there are also a number of non-bank financers who are providing additional debtor finance services even to SMEs.

  1. Debtor finance offers value for money

As compared to funds coming from the bank, the value of money that is advanced through debtor finance is significantly competitive. But what’s forgotten in straight comparison is that debtor finance involves complete sales-ledger management services. This means, users of debtor finance are allowed to make related savings.

  1. Invoice financers work with their clients

Some business owners are concerned that building relationships with debtor financers can cause alarm to their customers but that’s during the olden times. Now, a harmonious working relationship with a reputable invoice financer is a factor to customers.

How Debtor Finance Works            

In this very competitive world, one of the most effective ways to live abundantly is to establish your own business. It is a mere fact that managing your own business is never an easy task that others might think. Thus, successful business operation requires great degree of patience, discipline, perseverance, and enthusiasm. Meanwhile, in today’s digital generation, only the most persevering businessmen remain on top of the business world. In connection to this, you must formulate a well laid out plan of action to make the most out of your business.

On the other hand, the best decision that you can make to boost the sales and profits of your business is to engage in valuable debtor finance. This process can be a powerful tool for both small as well as big business owners to have a growing business. It is natural that there are some instances that you encounter a slow cash flow within our business brought about by the customers who have delayed payment. Fortunately, you do not have to worry about it since the latter process can help you improve the status of your specific business.

People talking about Debtor Finance
Debtor Finance image

Why consider debtor finance?

  • Pay your debts in a quick way. With the application of debtor finance, the debtor can slowly pay his debts in a less stressful manner. In addition to this, he can also have the chance to clear all of his debts in a fast and reliable way. As a result, the debtors can now have the chance to attain a peace of mind regarding their financial concerns.

Are you an ambitious businessman who wants to attain debt free future? Then, you must hire a professional debt management company that can help you attain the goals and missions of your company in an easy and quick way. With this, you can earn high level of sales and income that can help you maintain and support your financial stability.

  • Improve the cash flow within your business. Success will not come automatically in your way if you do not make an effort on achieving it. Definitely, you can make use of the invoice finance to level up the sales and profits of your business. Through the help of the latter service, a certain company can now have a major control when it comes to their financial matters.
  • Make things easy for you. Operating your company is a difficult job. Therefore, you must consult the assistance of a professional debtor finance company that can aid your immediate business’ needs. The good thing about this process is that a debtor finance company can give you support starting from chasing, invoicing as well as collecting owed invoices.
  • Attain discounts from company expenses. You do not have to risk the financial security of your business just to have a growing level in the business field. By having invoice finance as a partner in your business needs, you can have the chance to reduce the expenses of your company. As a result, you can make sure that great savings awaits you. In addition to this, you can also save more time and budget when it comes to finding a valuable and dependable source of money for the needs of your company.
  • Maintain good relationships with your potential suppliers and business partners. By simply having single invoice finance, you can have the chance to have an easy and quick cash flow. With this, you can also have the ability to reach out and deal continuously with your reliable business partners. As a result, you can gain more income and profits that can support your financial success.

With the help of the debtor finance, you can make your own business as a more efficient as well as dependable money making engine for your needs as well as for your family. In return, you can have a growing business and at the same time, you can now have the chance to experience a satisfying, joyful, abundant as well as exquisite life.

Establishing excellent debtor finance, you can transform your business as well as your personal life from failure to success, from misery to happiness, from illness to perfect health, and from poverty to abundance. By simply applying a creative exploitation of your knowledge and skills, you will be able to experience a creative accomplishment of your business goals and missions as soon as possible.

Establish an Easy Money Process with Debtor Finance

Through the help of the debtor finance strategy, you can have a peace of mind in a priceless manner. With this business technique, you can feel worry free and stress free when it comes to your financial concerns.

With its very wallet friendly and economic cost, you do not have to spend a high amount of money just to make your business grow. There are thousands of invoice finance providers that are toughly competing with each other in the market. In connection to this, it is therefore highly suggested for you to choose the one that can surely help you meet your business needs.

On the other hand, it will be a nice move for you if you are going to deal with a professional and reliable company that can offer you with a dependable and more efficient debtor finance service. The first thing that you must consider in finding the best partner in the latter industry is the one that possesses a license and is highly authorized to conduct such services for you. This is a great way for you to avoid disappointments and regrets in the end.

Another good thing about debtor finance is that you can have the ability to meet your deadlines and commitments on your own. You are free to choose the strategy on how you are going to improve the level of sale and profits of your company. With this, you can be able to manage wisely all aspects of your business.

Types of Debtor Finance Facilities

Debtor financing is a term used in Australia that mainly encompass numbers of products that finance invoices. Debtor finance is a kind of financing tools wherein businesses can get a loan against their outstanding receivables. This releases the needed working capital and at the same time facilitates a much smoother business operation. Aside from that, it can get businesses loans as quick as 24 to 48 hours. Basically, the amount of loan ranges between 70% to 90% total value of the ledger of the debtors. Financers release the balance amount when the receivables are actually realized.

There are lots of businesses that are done on credit and at times the realization of the payment takes as long as sixty to ninety days. The credit terms primarily comprise the working capital, thus affecting the cash flow, which may also affect the overall business operations. This is where the debtor finance will come into the big picture. It can help businesses free up the working capital and keep all the expansion plans in line. The best part is that the real estate security is not a major requirement unlike in the conventional financing.

There are two different types of debtor finance: the disclosed and confidential. In disclosed, the customer or the debtor is notified on the invoices that funds must be paid to the financier. This is commonly called as Invoice Factoring. Confidential on the other hand is where the customer or the debtor is not aware of the funding being provided. This is commonly called as Invoice Discounting.

Invoice Factoring

Invoice factoring is a type of financing that mainly converts the outstanding invoice due in thirty, sixty or ninety days into immediate cash for small businesses. In this type of financing, the factoring company will usually pay you in two installments for the invoice: it would be the advanced of roughly eighty percent of the invoice and the remaining twenty percent minus the factoring fees right after the invoice is paid.

Invoice factoring is usually the best solution regarding the short term issues. Giving your own customers the options to pay for the services and goods at a later date through extending the net terms to them and issuing an invoice is definitely a great way to increase both sales and customer loyalty. As a result, you can gain an edge over the intense competition in the industry. On the other hand, doing this can squeeze the cash flow of your business. Invoice factoring mainly provides solutions through advancing your money now on the invoices that are due in the next thirty to ninety days.

How does it work?

Step 1: Submit an invoice to a particular factor

Right after submitting an invoice to your chosen factor, there are few things that will happen. The factor will determine if you meet the criteria to receive financing. Aside from that, the factor will also conduct due diligence on the part of the customers you are invoicing. This is done in order to know if they are good credit risks.

Step 2: Factor will give you an advance

Advance rate is the initial advance given to you by the factor. Generally, this rate is anywhere from seventy to ninety eight percent of the value of factored invoice. Take note that the amount of your advance mainly depends on the transaction’s size, the industry you are in, and some other risk parameters.

Step 3: Your own clients pay the factor

The clients will pay the factor in thirty, sixty, or ninety days in accordance with the invoice terms.

Step 4: The factor will provide you the remaining balance (minus fees)

Right after you receive the payment from your clients, the factor will now provide you the remaining balance of your invoice. This is called the reverse amount minus fees.

Invoice Discounting

Invoice discounting is an alternative way to the traditional types of business finance. It mainly provides with an instant access to the cash tied up in the outstanding invoices. In this facility, it adapts with the businesses as it changes and grows. This is the main reason why it becomes a more flexible option compared to loans or overdraft. Since the restriction of bank financing, invoice discounting has been one of the major sources of the working capital finance.

How does invoice discounting work?

The invoice finance is mainly provided by range of lenders who would advance you with a percentage of the money owned on your invoices as the time they are raised. This simply means that the money would go into your account immediately no matter how long it takes for your customers to pay right after invoicing. Basically, the lenders would not provide money that is equivalent to the full value of every invoice; seventy five to ninety percent is more common.

Once the customers have paid the invoice, the sum’s remainder that you have invoiced would be paid, less the invoice finance charged by the lenders.

What you can get from invoice discounting?

  • Businesses are able to get cash right after the invoice is presented. There would be enough working capital needed to fund the needs and growth of the business.
  • The confidential agreement between businesses and financier, thus businesses can guarantee to continue to maintain normal relationships with the customers.

Those businesses that exploit invoice discounting might not need all the invoices funded. They may just use it as part of the overdraft office for the critical wages or stock buys. Also, invoice discounting permits businesses as far as possible on the sums that are subtracted in order to control the costs of interest.

Both invoice factoring and invoice discounting are very helpful for business growth and expansion. These are designed in order to fix the cash flow problems mostly created by the slow-paying clients. Through financing the slow-paying invoices, the debtor financing will surely increase the business revenues, thus improving the working capital while providing the business with funds to pay the suppliers, wages, and any other expenses.

Debtor Finance companies in Australia?

Now you know, much about Debtor finance and it’s time to see how easy it is to get an invoice finance facility. As you may already know your business needs to conduct Business to Business transactions and must hold accounts receivables. So what are the major providers of Debtor Finance / Invoice Finance?

This list is not in a particular order.

  1. Scottish Pacific Debtor Finance

    Scottish pacific debtor finance is the biggest Debtor finance company in Australia. they hold the most of the invoice finance market and it is bigger than the top for banks.  it is an ASX listed company. Scotpac purchased few big names in the industry before they go public. Bibby financial was purchased by Scottish pacific and they bacome the majoy player.

  2. Westpac Invoice Finance

    Westpac Bank also providing Invoice finance solutions for theirs business clients. Their approval process might be complicated compared to privet lenders. however Westpac provides very competitive interest rates.

There are so many other invoice finance companies and Factoring companies out there. However, they all different from one to one. Some of they provide amazing client support, some of them are more tech savvy. Therefore it is always good to shop around and find the most suitable invoice finance facility for your business.

Relevant Links

Debtor Finance and Invoice Finance Association Australia and New Zealand – http://difa.asn.au/

Residual Income: Learn What It Is and why is It Best for You?

Most people talk about of how to get rich.  Some people don’t have high earnings compared to the business owners who have large scale business. It is a wonder that some people who are not born rich earn a lot of money in their lifetime. A hard paid work is good. However, if you understand leverage and the power of residual income, you will have a big chance to earn more as you have expected. Most of the richest men on earth know this and it would be great if you have an idea of what residual income is.

Related Article: Debtor Finance

A Great Way to Earn Big

The residual income is the idea that you are still being paid after the work is done. People who create movies, songs and books are subject to have the benefits of the residual or passive income. The royalties that are taken from a book or song provides a lot of money even after the book is already published for several years already or the song is released several years ago. Even if you are not writing the same book or making an additional script from your old movie, you will still have money because of the royalty it gives. If the book is made to a movie, for example, you are assured to earn a royalty from it.

residual income

Not Like the Active Income

The active income comes from payment in doing an hourly work.  Doctors and employees are one of the best examples of those people earning an active. The total money they will earn depends on the number of hours they are working. The residual or passive income, on the other hand, will let you get a big additional due the royalties that came from the usage of a book or the revival of a song. This will see to it that you will receive cash even if you are not already working another book or movie. If you are a diligent individual, you will have more options in making sure that will still earn a large amount of money.

Related Article10 Time management tips for everyday business owners

It has to do with leverage

If you understand the capacity of leverage, you will have an idea how residual income is made. In using the concept of leverage, you will have to run a couple of companies even if you are not working in any of these at all.  Passive income could be taken from this and before you know it, you will have much more money compared to your full-time work. This will assure you a big earning that you desire. The passive income will let you have the money you have double and triple.


Making the First Step

Okay, you have decided that you want the residual income. However, what are things that you will do in order to get it? Well, it would be wise if you build or have assets that will provide you income even if you are not actually staying or working there. A great example of this is having a house for rent.

The residual income will take you to greater heights that will provide you satisfaction.

Related Article  : It’s Do or Die for Australian banks, Peer-to-Peer Fintech Lending is here.