There aren’t many people that don’t need an occasional boost in income for a short period but we would prefer no to take out a loan for a small amount of money. One answer to this short term cash flow situation is a ‘payday loan‘ which is something that no longer requires you to have a checking account as proof of your worth. By understanding exactly how this works, it is easy to see why it’s such a popular form of loan and why so many people opt for it today.

Let us say you need some additional money fast for an urgent repair that isn’t covered by your home insurance for instance. Payday loans are generally taken out very short term as whatever needs to be paid for will be covered in the following months pay. Quite simply, you arrange with a lender to forward a small amount of money which is normally restricted to less than a 1,000 dollars, into your bank account where it becomes available for use immediately; but is paid back in full on the day you are paid plus any interest that has been agreed upon.

Another benefit of payday loan is that you do not have to move from one place to another to get this type of loan as today you can easily find lenders on the internet. By filling their simple online application form, you can be assured of getting a loan amount directly in your bank account. At one time, to ensure they were paid without any inconvenience, payday loan lenders insisted upon the borrower having checking account; it was also easier issuing the money to the correct person.

These days lenders are not so strict with some even helping if a poor credit history is apparent but normally just a simple statement of income is sufficient. In fact the rules of lending have been relaxed so much that often it is just enough to prove you are employed in a permanent position. Therefore, the next time you need to take a payday loan but have no checking account, relax.

It doesn’t take much now to find a lender who is prepared to loan the money for a short period and all you need to do is provide proof of income or a savings account. The thing to remember is not to use this facility too much as it becomes a habit that is hard to break and every month their will be money owed to a lender before you see any of it. Ideally we should all stay within our budgets and while a short term loan on occasion will not harm us, regular use means that something is wrong with the financial situation and something will need to be done.

Source: extra money

There is so much information (and misinformation) out on the net about credit scores. Some people are under the impression that a credit score and a credit report are one and the same thing. That is wrong. They are two entirely different things.

The credit SCORE is based upon the credit REPORT. Credit scoring is just a simplified method of identifying good credit risks from poor credit risks. You can bet that lenders will get a credit SCORE before they proceed with the loan process but before a loan process goes very far, the lender will get full credit reports and from all three of the credit reporting agencies.

The credit score is based only upon credit history. The things that determine a credit score are whether payments were made on time and in full as well as on other things that are contained in a full credit report like employment history and income level. Points are awarded for each of these things as well as many others.

You might say that the credit score is a snapshot of a credit report — a summation, if you will, that gives lenders a good idea of whether an applicant is a good or bad credit risk.

Some people believe that if they stay out of debt and pay in cash as they go, they will have a good credit score and a good credit report, but that is just wrong. They will have no credit history, no credit score, and no credit report. All of these things are based upon credit — payments of loans and debts. You must have been granted loans by banks, or you must have a credit card payment history, in order to have a credit score or a credit report.

The fastest (and least expensive way) of building credit history is to get a credit card, make charges, and then pay them off before any interest is added.

Source: Finance

This year is quickly coming to a close. That means you should be asking yourself a very important question, whether you have already started your freelance bookkeeping business or not.

What will your financial and business situation be next year at this time? Do you know?

I do.

No, I’m not psychic. But I do have a plan. And this is the time of year when I revise my business road-map, pointing me to the destination I want to visit in my business by this time next year.

Every year during the “slow” holiday season, I carve out some time for myself and envision where I will be next year; what my life will look like, and how it will be different than it is today. I acknowledge the progress I’ve made over the past 12 months, seeing how far I’ve really come. Then I set my course for the next year, capturing the specifics in writing. I type up my plans in Word, and keep the printed pages in a binder for easy reference.

Am I talking about a business plan? In a general sense, yes. But my belief is that your business plan should take on the format that works best for you, otherwise you’ll never use it. But it should be down in writing (not just in your head).

The only exception to that rule is if you need to secure funding from an outside source, such as an SBA loan, to get your business running. Then, you do need to follow a specific format. For our purposes though, I’m assuming that is not your situation.

Start With The Big Picture

You’ve probably been thinking about your business and trying to imagine what it will be like once you are “successful.” Great! Now let’s get specific about what (reasonable) success for you will look like in just 12 months time.

Start by answering these questions:

1. How much do you expect to make by the end of the year?
2. Which types of services will be your primary revenue generators?
3. What will your work schedule be like?

If you don’t already know what you want in these areas, guess. We will refine what is realistic for you as we go along. But you’ve got to start somewhere. And it is a lot more fun to just say what you want first. Then worry about how you can actually make it happen later. Don’t worry, your plan will not just be a pipe-dream. I’m just trying to stop you from thinking too small.

So before we go on, take some time for yourself over the next week or so and think about what you really want your business to be like by December 31, 2008. Visualize it. Then write it down. This is your plan, so include whatever detail you want at this point. This is just your first draft at the big picture stage. Have fun with it!

As always, if you have questions, ask them. But for now I want you to just commit to paper what you want and think you can achieve over the next 12 months (without fussing about the obstacles yet).

By the way, this is a great exercise to see how much you think you can get done in a certain amount of time at a gut level. That is a skill worth developing, especially since you will be juggling multiple client projects in the future and will need to know what your capacity is so you can set realistic deadlines. So start honing that skill now!

Then we’ll take the next step in building a plan that will get you into action and on your way quickly. It’s a lot easier to get where you’re going when you’ve got a map. So get to work on your 2008 business map this week!

Source: business plan