How Do Hard Money Loans Work?

For those looking for an alternative of getting a loan to alleviate a financial emergency, hard money loans may be an option to consider. However, these kinds of loans differ from your typical loans distributed by banks or other major financial institutions.

What is a Hard Money Loan?

A hard money loan is a form of real estate loan which is made based off of the value of the collateral you have. This collateral is the property itself, as opposed to your creditworthiness or your ability to pay the loan back.

There are actually different forms of hard money loans with their own unique attributes. Bridge loans permit someone to buy properties quickly with the goal of swift reselling or refinancing.

Fix and flip loans allow someone to purchase a rehab property and fix it back quickly so it can be resold.

An owner-occupied loan allow consumers who do not qualify for other forms of financing to get a property for themselves.

Construction loans will allow real estate developers to get started on new construction projects with the goal of a quick refinancing.

How Do They Work?

Unfortunately, hard money loans are not available to everyone because they are most commonly used for investment purposes. Therefore, if the loan is going to be used for reasons other than real estate investments, then getting a hard money loan will be hard to come by. Certain consumers may be lucky enough to get one, but this may interfere with certain regulations regarding the loans.

Hard money loans are only dispensed for a brief period of time and repayment only requires interest-only re-payments. Sometimes, no payments at all may be necessary. This is one of the perks that comes with hard money loans, especially to real estate investors. The length of the loan is short, and the application process is relatively easy. In addition, the financing process is also quick.

Lenders will require some cash up front from the borrower based on the Loan-to-Value ratio (LTV), or the After-Repair-Value (ARV). In terms of repayment, it is usually one balloon payment at the end to cover the principal and any outstanding interest or fees attached.

What Makes Hard Money Loans Different from Traditional Loans?

Perhaps the biggest difference between a hard money loan and a traditional loan is the distributor. Traditional loans are typically given out by banks or major financial institutions. As for hard money loans, they are distributed by private organizations or individuals who have drastically different terms along with higher interest rates.

These private organizations also tend to be much more forgiving of bad credit ratings or even bankruptcies that could prevent the same borrowers from getting a mortgage. The greatest concern for lenders of hard money loans is not the ability for the borrower to pay the money back, but rather the value of the collateral.

In the case that a hard money loan is used to purchase a home, lenders will have to obey Dodd-Frank regulations which requires verification for a borrower’s ability to repay.

It is important to consider that hard money loans lack government oversight, have higher fees than traditional loans and have a brief payback periods. All of these options must be pondered before taking this kind of loan

Ballast Associates Discusses How Debt Consolidation Can Help With Your Debt Crisis

Millions of Americans are suffering from debt problems. They continue to pile up debt and are unable to pay it off. Interest rates continue to increase and all hope seems lost when it comes to securing a debt-free future. However, there are options that are at your disposal that can help you overcome these debt problems. Debt consolidation is an option that can help you improve your debt crisis. Fortunately, Ballast Associates are here to provide some crucial information that will shed some light on debt consolidation and why it may end up being your best option.

What is Debt Consolidation

Debt consolidation is a procedure that will bring together all of your debt into one convenient place. A bank or another type of financial institution will consolidate your debts into a singular account with a fixed interest rate. This method is incredibly helpful if you have multiple accounts from different financial institutions. Those accounts may have varying interest rates that can end up causing you more financial turmoil than you realize. This option is great for people who are serious about bringing together their debts and paying it down in a faster manner.

The Benefits of Debt Consolidation

One of the most obvious benefits of debt consolidation is that you will receive a lower interest rate. Your financial institution will work with you when it comes to finding the best interest rate for your new consolidated account. You also have the option to pay your debts off much faster. Many credit cards take about twenty years to pay off. Consolidated accounts can help you pay off your debt in about three to five years. Finally, having only one account to pay is incredibly helpful. We can sometimes get overwhelmed at the number of accounts that we have open. Having a singular account makes things convenient for you.

What Can I Consolidate?

Many people end up asking what they can consolidate in terms of debt. Fortunately, there are many things that you can put into one convenient place. The most common kind of debt that people wish to consolidate is credit card debt. However, there are other debts that many financial institutions will consider consolidating. Various types of loans, overdue utility bills, medical debt, and miscellaneous collections from past due accounts can be consolidated into one place. Ballast Associates can help you determine the best course of action whenever it comes to consolidating your debt.

How do I Get My Debt Consolidated?

The first thing that you need to do is to figure out what debt you wish to consolidate. You should take some time to put together a list of the largest debts that you currently own. Take note of the exact amount owed to each account and the interest rates. You will need to approach a financial expert once this is completed. Ballast Associates helps individuals overcome their debt problems by providing expert financial advice and debt consolidation problems. They will be able to assist you once you have made your preparations to consolidate your debt.

Living Life Without Debt

Debt is one of the biggest stressors that people experience. They are unable to properly live the life that they want while they are under so much financial pressure. Fortunately, debt consolidation is a method that will help you bring everything together in one convenient place. Make sure to use this guide to help you take the initiative to seek help when it comes to debt consolidation. You will thank yourself in a few years after you are living your best life

Second City Advisors Discusses 3 Money Milestones You Should Have Hit By 40

Many people didn’t grow up with much of financial education. As a result, they have no idea what kind of money milestones they should be hitting at each milestone age: 20, 30, 40, etc. However, that doesn’t mean that those milestones go away. That’s true whether you’re 20, 40, or 60 and older. The purpose of this post is to introduce you to three of the biggest money milestones that the financial experts at Second City Advisors recommend that their clients hit by the time they’re 40-years-old.

1. Create a Budget if you Don’t yet Have One

It probably goes without saying that it’s a good idea to develop a budget long before you turn 40. However, if you haven’t, there is a better time than the present.

Mental Floss points out that you can’t build a solid financial future without having a solid financial foundation. That foundation is your budget. Once you have a budget established, you know how much money you have available to for bills, for food, for long-term investments, like your kids’ college education or retirement, etc.

If you’re in debt, then a budget becomes doubly important. Until you know where your spending has gotten out of control and how much money you have to put toward your debt, debt will always be your reality.

2. Deal With Your Debt

Having debt is like having a hole in the proverbial boat. The more debt you have, the faster the water drains out of the hole in the bottom of the boat. Keeping debt while you try to save for big expenses like retirement is like having a hole in the boat. With enough buckets and hard work, you can keep the water out of the boat, but it does make the process that much harder.

Many of the people who talk with Second City Advisors about their credit card issues do so because they are concerned about getting their debt under control. By the time you turn 40, much of your debt should be under control. (Ideally, it should all be under control.)

3. Create Your Emergency Funds

One of the reasons why people get into debt in the first place is because they have no emergency fund. Depending on who you talk to, the emergency fund can mean a couple of different things. We’ll address both in this section. Basically, you should have a smaller emergency fund for immediate emergencies and a bigger one to help you guard against larger emergencies.

For the smaller emergency fund, put away at least $1,000, though up to $2,000 might be better, depending on your needs. Use the money in this emergency fund when you need to cover an expense, like a broken water heater or car wreck. If you do break into this fund, be sure to replenish each time you do until you have at least $1,000 in it.

For the bigger emergency fund, keep at least three to six months of income in savings. This fund protects you in case of job loss or a long illness. You should have enough money in the bank to cover all of your monthly expenses and then some. The same rule goes for this fund. If you have to use it, replace the money you “borrowed” once your financial situation allows you to do so.

Final Words

Getting control of your finances by the time you’re 40 allows you to live with less financial fear when life’s big mishaps happen. Creating a budget, getting out of debt, and having an emergency fund count as three of the biggest financial milestones you should reach by 40. Taking these steps mean that you’re less likely to fall prey to life’s whims and less likely to buckle when a financial emergency strikes.

Interstate Associates Discusses Whether or Not You Can Get a Mortgage With Credit Card Debt

Here at Interstate Associates, financial advisors regarding issues of debt and credit, we are often asked if people with credit card debt can obtain mortgages. There is not a “yes” or “no” answer to this question because the issues are a bit more complex. Overall, it boils down to your credit score and how much debt you have in relation to how much you will pay on all credit each month. This article will explore this topic in more depth.

Do I Have to Have All of My Credit Card Debt Paid Down? –

This question generates the simple answer of “no.” You can get a mortgage with some credit card debt. According to Fidelity, lenders make decisions about whether you are a good risk to get a mortgage based upon a few factors:

  • Credit score
  • Debt-to-income ratio
  • Down payment
  • Work history
  • Condition of desired home

The first two of these factors relate to how much credit card debt you carry.

Credit Score: According to Experian, your credit score is, in turn, influenced by five factors:

  • Your payment history is 35 percent of your FICO credit score calculation
  • Your balance-to-limit ratio is 30 percent of your credit score.
  • Your length of credit history is 15 percent of your credit score calculation.
  • Your recent activity is 10 percent of your FICO score.
  • Your credit mix of different types of credit is 10 percent of your credit score.

Experian states the balance-to-limit ratio, or credit utilization relates to the percentage of your balance limits of all of your combined credit cards you carry. In order to have a good FICO credit score, you will need to have around a 30 percent or less utilization of your credit cards. If your credit cards are maxed out, it will harm your credit score and could preclude you from a mortgage loan.

If you have too much credit utilization, you can obtain a debt consolidation loan. That is a personal loan, often at a lower interest rate than your credit cards, that pays off your cards. Then, you make one payment each month on the debt consolidation loan. Because of the lower interest rate, you will be able to pay down the loan more quickly. Also, if you can restrain yourself from putting more on those credit cards, you will have dramatically lowered your credit utilization, improving your credit score for scrutiny by a mortgage lender.

Debt-to-Income Ratio (DTI): The other factor that credit card debt plays in your ability to obtain a mortgage is your debt-to-income ratio. According to NerdWallet, that is the ratio of all of your monthly payments you make on your debt to your gross monthly income. In order to secure most mortgages, the U.S. government’s Consumer Financial Protection Bureau states that lenders are looking for a
DTI of 43 percent or less.

The reason that DTI is so important is that it is a huge determinant in your ability to make your mortgage payment each month. Thus, the amount of credit card debt you carry will determine your DTI. The DTI, in turn, will help lenders ascertain your ability to pay your mortgage.

If you have a DTI that is too high, you can either pay off your credit card debt in order to not have such large payments each month, negotiate with credit card issuers for lower interest rates, or obtain a debt consolidation loan in order to lower the payments you will be making each month.

As you can see, you can have some credit card debt and still be approved for a mortgage, but your credit score and debt-to-income ratio will determine if you have too much credit card debt in order to obtain a mortgage.

Here at Interstate Associates, we are in the business of providing sound financial advice to consumers regarding credit and debt. Call us with any questions you have. We are here to help

Trout Associates Savings

Why Trout Associates Suggests It Pays to Save More Than You Think You Need

Saving money is both important and difficult for millions of Americans. They want to be able to prepare for emergencies and retirement while also being able to purchase the things they want. As a result, people are looking for the perfect balance between spending and saving. These individuals should consider saving more than they think they need. This extra saving will make them more content, more prepared, and perhaps even wealthier than they may have been otherwise.

Peace of mind

Saving more money than an individual thinks they need can be helpful for their emotional and psychological health. There is a small chance that an individual will face a catastrophic expense that they previously had not expected. Certain bills could arise that cost five or ten times more than a family’s monthly income. Extra money saved will keep people from having to worry about those potential expenses. They will be able to sleep well at night and can later make large purchases knowing that they can withstand a potential onslaught of home repair costs or medical bills.

Inflation

Saving more than one needs is also helpful to combat inflation. According to Trout Associates, inflation often grows much faster than most people realize. They may lose a considerable portion of their buying power without even realizing they have lost anything. Two hundred dollars buys significantly less when the prices of all the goods that an individual regularly buys goes up on a regular basis. Saving more than one thinks they will need will greatly aid an individual when they start to rely on a fixed income that will not increase at the same rate as inflation. They will have a cushion that will help them pay their bills while also covering any additional expenses that may arise during a period of disability or retirement.

Greater interest payments

Saving extra money can be financially beneficial for an individual due to higher interest payments. These payments result from the fact that interest is calculated as a percentage of the entire amount. A higher initial amount means a higher payment every month or every quarter. The amount will also grow faster due to a more robust example of the law of compound interest. Debt consolidation experts such as Trout Associates note that starting out with a small increase in principal can lead to massive increases over a period of years. Individuals can later withdraw that money and either invest it or use it to pay off their bills.

Conclusion

Individuals should be saving money on a regular basis and should have their savings monitored. They can increase or decrease their amount saved at any time depending on their needs and circumstances. But these individuals need to find a way to save more than they think they need or more than most calculations suggest. Those savings should go into an online savings account or some other sort of account with a high yield. More savings will always be more beneficial than the stress and headache caused by those individuals who discover months too late that they have not saved enough.

Graylock Advisors Savings

Graylock Advisors Explain Why Even Good Debt Can Be Bad

Many Americans thinks that a little debt will not hurt. Usually, that’s how it all begins. Debt starts small and builds until things escalate, and you fall into a downward spiral because you falsely assume that the small loan you took on is insignificant. Before you know it, all your debts have piled up, and they are now beyond your control. Here are some reasons why even good debts can be bad for you:

Encourages You to Spend What You Do Not Have

All debt, whether good or bad, encourages you to spend money that you do not have. Clearly, the reason why you’re going into debt is because you’re purchasing something that is beyond your budget. If you can actually afford it, there is no reason to get a loan for it.

Graylock Advisors, a team of consolidation loan providers, noted that debt can be dangerous because it is a form of temptation that lures you to keep on spending and living beyond your means. What’s scary is that buying something with credit gives you an emotional high for getting something new, without having to bear the consequences of parting with your hard earned money. Eventually, all this spending that you cannot truly afford will catch you off guard, and by then, it will be too late.

Costs You Your Hard-Earned Money

Make no mistake about it; debt costs you even more money. Swiping your credit card and signing that loan may feel like you are getting free money, but that is never the case. In most instances, you get more than you bargained for because you pay a huge price for getting into this debt. Even good debts have exorbitant interest rates that put you at a disadvantage.

Graylock Advisors want you to remember that the higher your interest rate, the more money you will fork out to pay for these debts. In addition to that, the longer you pay for the item and the more debts you have, the bigger your interest will be. Take note that the only exceptions to this are interest-free loans and zero percent APR credit card promos, but even those have limits, which can be easily forfeited the moment you default on your monthly payment.

Hurts Your Future Income

Each loan you make hurts your future income because you are borrowing against future earnings. Every single time you take a loan or swipe something to your credit card, you are using money that you have yet to earn. Imagine having so many loans, which you hope to settle with the money you think you will earn in the future. What will happen then if you lose your job? You will essentially be paying for something that you have used up and no longer has value with your future hard-earned income.

Prevents You From Being Financially Free

Monthly debt payments will keep you from attaining your financial goals because they limit your income stream. The more debt you accumulate, the larger your monthly payments will be. This leaves you with less money to spend for your essentials.

Causes Undue Stress and Medical Issues

Any kind of debt means you have to worry about making payments. Even good debts make you wonder how you’re going to pay all your monthly bills on time. The stress from all these debts lead to a lot of serious medical issues from stomach ulcers, high blood pressure, diabetes, and the like. On top of that, the feelings of anxiety can cause severe depression, which has the capacity to affect your quality of life.

Hurts Relationships

Last, but not least, all forms of debt put a strain on household finances. This pressure can build up, with the burden felt not just by you, but also by your spouse and children. These loans will spark arguments about financial and lifestyle choices. Arguments ensue and tension reaches a breaking point. In fact, studies indicate that debt and financial issues are one of the leading causes of marital breakdown. Now, is that so-called good debt really worth all this aggravation at the expense of your family? If you’re about to sign that loan because you think you’re making a good deal, please, think again.

Brice Capital Credit

Brice Capital Breaks Down the Reasons Why Your Credit Score Matters

Your credit score isn’t just an ugly three-digit number that you hate to see, it’s a number that affects your entire life. It gives companies a glimpse into your entire credit history and demonstrates how responsible you are with your money. Your credit score will impact your cost of living, your purchases, and where you work. Here are six reasons why your credit score matters, according to Brice Capital, an industry expert in debt consolidation. 

1. Buying or Renting a Home

Before searching for a new home, lenders want to know if you have a credit score between 740 and 850. This is considered a high credit score and ensures that you won’t default on your mortgage. Those who don’t have a high credit score are considered too risky to lend to. Being approved for a mortgage with a low credit score can negatively impact the interest rate, which means increased monthly mortgage payments. 

Landlords also use your credit score to determine if they should rent to you. A high credit score can make you stand out among the long list of applicants, while a bad credit score can rule out your chances of being able to rent. Landlords want to find responsible tenants who pay their rent on time. An apartment or condominium is considered on the same criteria as a loan and the landlord wants to make sure you can pay back that loan every month. They know what it’s like to deal with tenants who are always late on their rent. 

2. Buying and Insuring a Vehicle 

Unless you buy a car with cash, you’ll most likely need a loan. Car loans are similar to mortgage rates. The higher your credit score, the higher your chances of borrowing. Those with poor credit could get rejected or hit with a higher interest rate. You’re better off purchasing a used vehicle from a dealer that accepts those with bad credit or no credit. 

Credit also affects your car insurance. Most states allow insurers to include the credit score as a determining factor when setting their rates. However, that’s not the case in California, Hawaii, and Massachusetts. Drivers with a bad credit history could pay more than $690 per year for car insurance, according to a 2017 study conducted by NerdWallet. 

3. Getting Hired 

There are employers who perform a full background check which includes the credit history of potential hires. This is critical for jobs that provide access to company data, customer information, and finances. In addition, most federal jobs require a credit check. 

4. Starting a New Business 

Your credit score can also affect your ability to start a new business. Most people have dreams of running a successful business, but you need to have a good amount of money to launch a startup. In that case, you’ll have to apply for a small business loan. You’ll have to meet strict requirements and have a good credit history in order to qualify for the loan. If your credit score is between 300 and 629, then the lender is most likely to reject your application.

5. Contributes to Monthly Bills

Your credit score can also impact your utility bills. Your gas or electric company may use your credit score, in part, to determine the amount to charge each month for service. Before you even use these services, the company will conduct a credit check. This is the case with cable, cell phone, telephone, and water bills. 

6. Upgrading Credit Card Limit

Interested in a business credit card or increasing your credit card limit? Think again. Your credit score will have an impact on that as well. In order to qualify for a high-quality credit card with agreeable terms, you need to have excellent credit. People who have an exceptional credit history receive generous benefits such as sign-up offers or travel rewards. 

However, Brice Capital notes that there are some good credit cards for those with bad credit. You should consider applying for a secured card if you want to focus on building up your credit. Or, you can shift your focus to paying your bills on time and not spending your entire credit limit. 

Now you understand why your credit score matters. This number is important because it proves how often you pay or don’t pay your bills. Several businesses, employers, landlords, and mortgage lenders will use your credit score to determine if you’re a responsible individual. If you need to borrow money or make a life-changing decision, your credit score may be questioned. That’s why it’s so important to have a good credit score and pay your bills on time.

August Funding Money

August Funding on the Basics of Financial Well-Being

While it may not be glamorous, looking after your financial wellbeing is as important as taking care of your physical health. This doesn’t just mean maintaining a good credit rating, although that is part of creating a good financial status. It also involves looking after your day to day finances and your future needs. This overview can show you the areas you need to consider in establishing your financial wellbeing.

Build a Budget

The first thing to consider is your income versus debt ratio. This means listing each source of income in one column and each debt in a separate column. By comparing these totals, August Funding suggests that it’s easier to develop a workable budget. Your goal should be to make all of your debt payments on time, while having enough left over to build a savings account. This may require eliminating luxuries that you have taken for granted until now. Try to identify and eliminate expenses that don’t really serve a purpose. For instance, buy your coffee in bulk instead of stopping at Starbucks for that latte every morning.

Start a Savings Account

This savings account should be designated for emergencies and special expenses, so you should resist the urge to withdraw from it whenever possible. The account should only be accessed to help you pay for high-end home repairs, auto repairs, and medical expenses. You can start by depositing just 1% of your monthly income into the account, but you should try to increase the size of your deposits over time. Financial experts suggest depositing enough to cause a slight economic crunch, but not so much that you’re in danger of falling behind on your bills.

Start Chopping Away at Your Debt

You should also set aside some money each month to pay off your debts and August Funding recommends using the snowball strategy. This involves starting with your smallest debt and paying extra on it, while meeting your minimum required payments on your other debts. Once that debt is paid off, all of the money you were diverting to paying it off should be added to the payments on your next smallest debt. Continue following this strategy until all of your debts have been repaid. Once you’re debt free, the extra funds can be deposited into your savings account to help you stay free of debt.

Start Investing in Your Retirement

Many people think of relocating to a tropical climate, or consider tinkering around the house, when they think of retirement. In fact, retirement may be more costly and more complex than that. It will be around this time that your health will begin to decline, and you may end up needing expensive medical care or around the clock assisted living services. Most people find that they’re financially unprepared for these expenses and end up having to rely on loved ones or state social services to help them cover these costs. However, starting an IRA, 401k, and other retirement investment accounts early will help you earn the money you will need to cover these costs.

Don’t Put Off Estate Planning

You may feel young and healthy now, but that’s no reason to put off making end of life plans. An accident or illness can claim your life at any time. Even worse, you may end up unable to communicate your medical care wishes or financial concerns for an indefinite period of time. If you fail to address these concerns with an estate plan, the custody of your children, your assets, and even the final wishes you have for your remains may all be in jeopardy. An estate planning attorney can help you create the powers of attorney, will, and other documents you’ll need to ensure your wishes are carried out. This is especially important if you have minor children to consider.

A Second Gig May Be Needed

If you’re thinking this is a lot to consider, you’re not wrong. It may require picking up an additional source of income on a temporary basis. Fortunately, the internet has opened up a world of opportunities. You might begin by starting to offer your skills as a freelancer. You may even gain enough clients to quit your regular nine to five job. If you’re talented in the arts, try selling your creations online. Alternatively, many employers are looking for remote, or work from home, employees. You might try any of these suggestions, or all of them, to help you make more money each month. The additional income will help you meet your obligations and build up your wealth gradually.


The concerns listed here can help you build a strong financial backbone for yourself, but it can be a devastating mistake to think you only need to consider these issues once. To the contrary, you should review your financial needs yearly. As your life changes, so will your financial concerns.

Roseland Associates Managing Liquidity

8 Tips from Roseland Associates for Managing Liquidity

Businesses that find that they don’t have enough capital to handle their responsibilities are on a slippery slope to financial ruin. While many businesses do fail as a result of poor liquidity, this doesn’t have to be the case. With better liquidity management, companies can improve their financial standing.


Best Practices for Liquidity Management


Liquidity is a business’ ability to be financially responsible while operating their business without sustaining significant losses. Businesses need to have enough of their capital readily available as liquid assets when it comes time to pay their bills. 

Liquidity is generally assessed through various ratios, two of which are the quick ratio and the current ratio:

The current ratio :

This ratio can be calculated by taking the number of a business’ current assets, then dividing that by the total current liabilities.

The quick ratio:

The quick ratio uses the same formula as the current ratio, less a business’ inventory in current assets.


Protect your company’s finances with the following liquidity management tips:

1. Use Sweep Accounts


Sweep accounts are essentially savings accounts that allow businesses to gain interest on excess cash balances. Whenever there is excess cash in a business’ operations accounts, owners can sweep them into interest-bearing accounts so that they can gain interest during times when they aren’t needed. When bills come due, you can simply transfer the funds back into your operating account. You’ll be pleasantly surprised to see that your funds have grown thanks to the interest rate in the sweep account.


2. Assess Overhead Costs


Though overhead costs can’t be completely eliminated, do what you can to reduce them. By lowering your overhead costs, you’ll be able to improve your profitability. These expenses include advertising, rent, indirect labor, professional fees, and other indirect expenses. By pulling money from these areas, you’ll have a better opportunity to stay liquid. 


3. Eliminate Unproductive Assets


If your business is storing unproductive assets, it’s time to clear them out. Any time you tie your cash up with an asset, these assets should be making money. If your business has invested in any vehicles, equipment, or buildings that are costing you money, it’s time to let these things go. 


4. Monitor Accounts Receivable


Responsible liquidity management requires businesses to stay on top of their invoices. When billing clients, businesses should do their best to guarantee prompt payments. To ensure no payments are forgotten or past due, these businesses should have a plan in place for following up with these clients.


5. Negotiate Terms for Accounts Payable


When it comes to accounts payable, businesses can improve their liquidity by negotiating for longer terms. By building long-term relationships with certain vendors, companies can work out a payment plan that makes it easier to meet their responsibilities. The longer terms a business can negotiate, the longer they can keep their money.


6. Switch to Long-Term Debt


Need to finance your business but don’t have the capital to do so? Long-term debt is a better option for business owners than short-term solutions. With long-term loans business owners will benefit from the lower interest rates and smaller monthly installments. In turn, these businesses will be able to have more cash on hand than they would if they took out a short-term loan. 

Additionally, with debt consolidation loans like those available from Roseland Associates, existing debts can be rolled together into one lower interest loan. This is often a life saving decision which serves to reduce monthly payments as well as saving accounting from the headache of balancing various loans and payments on different schedules. Particularly for small businesses, these loans from Roseland Associates can nip overdrafts and late payments in the bud, therefore maintaining the creditworthiness of the business and reducing costs.

7. Monitor Owner’s Draws


Business owners that take out money from their business’ operating accounts are in danger of sabotaging their company’s liquidity. Owners must scrupulously monitor these owner’s draws for non-business purposes to avoid putting a financial drain on their business. The same strategy should be considered for business-related draws as any withdrawals should always be tracked carefully.


8. Review Profitability


A business’ prices should never remain stagnant. In order to increase cash reserves, businesses should regularly up their prices. As costs grow and markets continue to change, businesses must change their prices as well. By reviewing profitability on their services and products, a business can make changes accordingly to what they charge clients. 

Business owners must closely monitor their liquidity ratios. Failing to do so can result in bankruptcy and the dissolution of the business altogether. Keep this guide in mind as you work to effectively manage your business’ liquidity.

Mountain Ridge Associates Finance

Mountain Ridge Associates on The Basics of Personal Finance: Six Things to Keep in Mind to Secure Good Financial Standing

When you first start working, you will likely focus more on things going on in the present as opposed to planning your future. Instead of thinking about how you can set yourself up better for retirement, you may be more concerned about how you’ll spend your first paycheck.

Personal finance matters a great deal though and it’s better to start working on it now as opposed to letting your future self worry about it.

In order to make navigating the tricky world of personal finance easier, please check out the items listed below.

1. It’s Never Too Early to Start Saving

So, what’s the best thing you can do with your first paycheck? Well, what about putting a portion of it in a savings account.

Notably, some companies will already enroll you automatically in retirement plans so that your retirement fund can start building up right away. If your company doesn’t offer a retirement plan, you can handle the saving part yourself.

According to Wells Fargo, an IRA or individual retirement account is a suitable alternative to a retirement plan. You can also choose from two types of IRAs – the traditional IRAs and Roth IRAs.

Traditional IRAs are tax-deductible, while the funds from Roth IRAs can be withdrawn tax-free depending on certain circumstances. Pick out the one that works best for you.

2. Always Keep Your Credit in Mind

Sooner or later, your credit is going to have an impact on your life, so it’s best to get it in order now.

If your credit is already in good shape, then that’s great. Just keep doing what you’re doing, and you should be fine moving forward.

If your credit is not exactly spotless, you can do certain things to improve it such as paying off debt. Companies such as Mountain Ridge Associates will provide you with ways to get out from under your debt faster and improve your credit score in the process.

3. Don’t Be Late with Your Bill Payments

Failing to pay a bill on time can lead to incurring late fees and also doing damage to your credit. Remember to set aside money for your monthly bills so that you’re never tardy with your payments.

If you simply do not have the money to make the payments at the moment, this article from Georgia State University advises you to call your creditors to let them know what is going on.

Sometimes, an overdue bill can turn into seemingly insurmountable debt. In that case, you may want to turn to companies such as Mountain Ridge Associates for assistance.

4. Prepare for Emergencies

At some point in your adult life, you will find yourself dealing with a medical or perhaps even a financial crisis. They are simply inevitable, but if you are prepared for them, they may not be devastating.

Remember that your retirement fund is not supposed to cover your emergencies though.

What you’ll want to do instead is to build up a separate emergency fund from your retirement fund. Keep a nest egg at home or open a separate bank account that will hold your emergency fund.

Just be sure that your emergency fund is always stocked so you don’t have to withdraw from your retirement account and incur penalties.

5. Ask for Help from a Fiduciary

If you ever find yourself in a tough spot and in need of expert financial counsel, make sure that you consult with a fiduciary.

According to Investopedia, a fiduciary is ethically-bound to manage assets to the benefit of their client instead of their own gain. Essentially, they are bound by the law to act in your best interests. If you have to entrust your financial well-being to anyone other than yourself, that person should be a fiduciary.

6. Spend Responsibly

This final tip is a bit more general than the ones that preceded it, but it is still one well worth keeping in mind.

For those who want to be in a good place financially well before retirement age, spending money responsibly is a must.

Eating out every now and then is not necessarily a bad thing, but you should only do so when you have money to spare and not when you’re still unsure about your upcoming bills.

There’s also nothing wrong with buying some new clothes or gadgets, but steer clear of blowing most of your paycheck on shopping for unnecessary items.

The temptation to spend will be strong. To combat that, remember that you are doing this for your future self and you should find the motivation needed to keep your money in your wallet.

Getting your personal finances in order is not going to be easy, but the benefits of doing so as soon as possible are worth the trouble. By keeping in mind the tips listed above, you should find yourself in a better spot financially both now and in the future.