Finance is something that is used by everyone; individuals, governments and businesses. It stands as one of the most important aspects of business management.
Here at Canny Credit we aim to advise and inform you on all aspects of finance and help you to make the right financial decisions by informing you about all aspects of finance and the options that are open to you. Below are a few examples of this:
Banking
Banking is the definition of the relationship between an individual/company and their bank. Your bank account balance is the financial position between you and your bank; when you account is in credit the bank owes you money, when the account is overdrawn you owe the bank money. A bank cannot disclose the details of the transactions going through your account unless you have consented. A bank also cannot close your account without reasonable notice to you because cheques are outstanding in the ordinary course of business for several days.
Bankruptcy
This describes the inability or impairment of an individual or organisation to pay their creditors. There are two ways in which bankruptcy can happen; either a creditor may file bankruptcy by petitioning against the debtor (involuntary bankruptcy). This is done in order to recoup a portion of what they are owed or, in the more common case; bankruptcy is initiated by the debtor, known as voluntary. Whichever way it comes about bankruptcy exists in order to give a debtor a ‘fresh start’ by relieving them of most debts.
Currency Trading
A global currency market where roughly $1.5 trillion a day changes hands. Currency Trading is the largest financial market in the world. Also commonly referred to as foreign exchange or Forex; currency trading uses the purchase and sale of large quantities of currency to leverage shifts in relative value into profit.
Stock Broker
A qualified and regulated professional who buys and sells shares/stock on behalf on investors. Transactions on the stock exchange must be made between two members, a person can’t just decide they want to trade stocks, this is why a stock broker exists; they trade the stocks for you.
Financial Planning
Process to determine individual’s financial goals. These goals are used as a guide to map a course of action to reach these goals. Financial planning is the creating of a detailed strategy that is tailored to a client’s specific situation. Financial planning involves looking at cash flow management, investment planning, risk management and estate planning to name only a few. A financial planner is a professional individual who helps people to deal with various personal financial issues.
Mortgages
Mortgages are one aspect of finance that should be straight forwards; you borrow money to buy a house and pay interest on the loan, unfortunately it’s not that simple. Mortgages are a highly competitive market with building societies and banks continually updating and extending their range of mortgages. There are also a wide variety of mortgages available to you, the most popular being repayment mortgages. These are paid back monthly with interest and are classed as the easiest mortgage to understand and the least risky. However if you fail to keep up with repayments you may find your property is repossessed. Another form is interest only mortgages. These are when you pay off the interest monthly but not the capital, the capital is then paid at the end. This type has grown in population as they are often considered as being cheaper, however concern surrounds this mortgage as many people have not thought about how they will pay the capital at the end.
Payday loans
Payday loans were brought about to help people who are struggling with finances between paydays. They are short term small loans and cover expenses until your next payday, in which the money is paid back. In order to apply for a payday loan you need to be 18 years old, living within the UK, Northern Ireland, Scotland or Wales and must be employed in a job that pays by direct debit.
Payroll Services
This is a sensitive task that is carried out at specific times of the week/month and cannot be put off. It is rarely a five minute job and often ends up being a complicated task. You can however invest in a programme that will do this payroll service for you, which will save you time and money.
Reinsurance
This basically provides insurance for insurance companies it is a way an insurance company protects against the risk of losses with other insurance companies.
Venture capital
Venture capital is a type of equity funding that is invested into your business in exchange for a share of your business. Venture capital is a popular type of equity funding, although it is high risk as no one can predict which direction your business will take next, it can bring extremely good potential to your business as venture capital has above average on returns. Venture capital could be the perfect answer if your business is looking for additional funding.