Discover How You Can Quickly Grow Your Business with Structured Trade Finance

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Amir is a second generation carpet merchant from Pakistan. He was born and bred in Malaysia by his immigrant parent who came to settle in the country over 30years ago. The carpet business has been the anchor of their livelihood and provides a decent income for the family and jobs for other Pakistani immigrants who came to seek greener pastures in Malaysia.

It is fair to say that Amir Senior had toiled very hard over the years to grow his business from a humble beginning, selling off all he had in Pakistan to finance his new a carpet business in Malaysia. With the little he had, he was able to grow his business to become one of the top importers from Iran and other surrounding countries, which aimed him the rights of a major distributor to small retailers in Kuala Lumpur, Malaysia.

As Amir finished his business degree and ready to take over the family's business, he was faced with two potential success paths in managing the trade. "I could either maintain the exiting supply chain from my old man and risk failure or build on his legacy and take the business to greater heights" he says. "But if I fail, that will bring shame to my family."

The problem like many other businesses: it was running on a 30 days' credit terms to the buyers (retailers) which means they have to wait till all the cash comes in before they can place new orders from Iran. And then wait for another 30 - 60day for production and shipment from suppliers.

"This impeded cash flow needed for other demands and growth was slow," he added. At that time, it was a virtuous circle until he was introduced to structured trade finance. Amir nor his dad had never applied for finance or loan before.

Survey in Malaysia showed that in 2013, most immigrating families from neighboring countries often settle as full time self-employed in Malaysia and Singapore. If they are lucky enough to meet a good network of fellow countrymen and business association linked with some sort of internal funding, then they are off to a good start. Many of such businesses may not seek finance from the local banks due to lack credit lines and collateral for support. Yet you can see the presence of many foreign businesses around every corner in the commercial districts of Kuala Lumpur.

Most of them are not aware of the systems here and are totally ignorant of the available finance opportunities offered by banks and other private institutions says the Marketing Director of Trade Finance Capital, Kuala Lumpur.

Amir's business didn't need loan but he wanted to grow and so Trade Finance Capital's team immediately went to work by analyzing his business and transaction records. They studied his supply and contract performance history with the international suppliers. After due diligence the team identified 3 key areas that needed support and improvement in order for the business to grow: (1) increase his number of purchases per annum (2) increase his bottom line and (3) increase productivity.

Few viable option was presented to him but his main goal was achieved by the following key implementations:

Trade Finance Capital structured Amir's business which included analyzing his market, growth potential, investors risk and, negotiating with his Iranian supplier to accepting Deferred Letter of Credit as mode of payment.

A revolving contract was agreed and a Deferred Letter of Credit worth USD350k, valid for 180 days, was issued via Citi Bank, Hong Kong towards the Iranian supplier's bank for the delivery of the specified amount of Persian rugs to Amir's company in Malaysia.

"Every 3 months his Iranian supplier would deliver Persian carpets worth USD 355,000 and Amir would then pay for it within 180 days," say the Trade Finance Expert. "He has the flexibility to pay when he wants, however he wants and automatically renew the contract again and again at the end of the term."

Amir's business is growing, he is able to extend more credit terms to his buyers and recently added 4 more retailers to his bottom line. With this extended trade facility on hand, he is now seeking to import more products from Oman and Morocco with less risk and most of all, he has sufficient cash flow to take care of other day to day running of his business.

However, there are also other import finance options suited for small to medium scale importers with no credit lines to explore if they want to grow their business rapidly such as:

Pre-Import Working Capital Finance: for importers to fund the purchase of materials, services, and labor to fulfill import sales contracts. Finance provided with-recourse basis against either a confirmed import order from a foreign supplier or to purchase goods, raw materials for subsequent manufacturing of final goods, warehousing, or to arrange for the transportation of goods.

Pre-Import working capital finance can fund up to 100% of overseas purchases; freight, duty and VAT included, all the way to the point where the local customer pays your invoice.

Accounts Receivable Factoring for Importers: provides for the purchase at discount of an Importer's accounts receivable. A way for importers to fund cash flow by selling their receivables to a third party (a factor, or factoring company) at a discount. Account Receivable Factoring can be provided by independent finance providers, or by banks.

How it works

The importer enters into an agreement with the factoring company whereby the company will manage their sales ledger and credit control on an ongoing basis for a fixed period depending on the contract agreement (typically 24 months).

In return, the factoring company advances some funds upfront when the importer sends an invoice to a customer- typically 85%.

When the end customer comes to pay, the factoring company collects the debt and makes the remaining balance available to the importer, minus their fees.

For new importers and immigrants who lack a long business and credit history, these are some of the avenues for short-term funding.

Defaulting on Your School Loan, What Now

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One of the worst things that you can possibly do is to default on your student loan. With the options available and the low interest rates, there is no reason why borrowers should be in trouble with their student loan. If you have been unfortunate enough to default on your student loan, you have to take steps to make the situation right and move forward. How does one move forward after defaulting on a student loan? You have to talk with your creditors, whether they are federal or private lenders, and figure out a solution.

One of the things to consider after you default on your student loan is consolidation. It won't be easy to get a company to sign off on a student loan consolidation, though. In order to qualify for one of these loans, you will have to have a cosigner go into the loan with you. If you have a family member who has enough good credit and faith in you to cosign a loan, then you should sit down with that person and explain your situation. You would still be responsible for the repayment of the loan under your consolidation terms, but your cosigner would also hold a shared responsibility.

Why did you default on your student loan? You have to consider the reasons why you got into this situation in order to make it better. Were the payments too large for your monthly income? Did you fall behind on payments because of irresponsibility? If you simply lacked the dollars to make the payments, then you need to consider a consolidation before applying for a stay on the loan or even deferment. If you need to produce more money to make the payments, consider lifestyle changes that will add to your personal coffers. You might even need to get another job. The most important thing you can do is get the loan back into the right.

Consolidation will take all of your student loans and combine them into one manageable payment. The consolidation will pay off your debt with the government or with private lenders and they will then become your current creditor. This is important because it will enable you to have some time to right your situation. In addition, you will be away from the stress of constant collection calls which can become a hassle and impact your life.

The most important thing to do when you default on a student loan is to take responsibility and make the situation better. By hiding from collection calls, you will only be making things worse. If you want to have any chance of salvaging your credit rating and being able to secure financing in the future, then you will need to take steps to get your loan out of default quickly. It may be embarrassing, but you might have to consult the people who you trust the most for some help. By cosigning a loan with you, they can help to bring your situation back into a positive light

Defaulted student loan - Tax offset (Tax Garnishment)

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What is a Treasury Offset?

Under this Treasury Offset Program, the Financial Management Service, a bureau of the US Department of Treasury will offset Federal and/or State payments if a borrower fails to pay their obligation. While the most common type of Federal payment offset is Federal income tax refunds, several other types, including social security benefit payments, are also eligible for full or partial offset. In other words, if a borrower has an outstanding debt and they have incoming social security benefits, this too can be subjected to the offset.

In addition to defaulted debts held by ED, defaulted loans held by guaranty agencies are also included in the process.

Other Federal and State agencies also certify debts for offset, but Department of Ed has historically been responsible for the largest volume of offsets. As a result, many tax professionals, and even the IRS, will automatically assume that an offset has been requested by the Department of Ed when, in fact, it may have gone to some other Federal or State debt.

State Payments

State payments (e.g., State tax refunds), in addition to Federal payments, may be offset in the Treasury offset program. Just recently the treasury was requested to offset both Federal and State payments on out standing federal student loans.

What is a Treasury Offset?

The purpose of a Treasury offset is to recover the amounts for the Federal taxpayers without the cost of litigation fees. It was created to basically recover the unpaid debts arising from federally supported activities, which include student financial assistance.

Since 1986 the Department of Education has referred millions of defaulted student loan debts and grant claims to the Department of Treasury for collection by offseting against federal and/or state income tax refunds and any other payments authorized by law. The Department of Ed can request that Department of Treasury arrange an offset to collect any Federal defaulted student loan debt or grant claim. Once the Department of Educations refers a delinquent borrower to the treasury department these group of debtors are considered to be certified permanently as long as the account is in an active defaulted status (outstanding).

What does it mean if I am certified?

Once Department of Ed certifies a defaulted account for treasury offset, that account will remain certified for the life of the defaulted balance unless it is inactivated by law (e.g. active bankruptcies). Once certified, borrowers may not avoid offset simply by making voluntary payments. Borrowers may avoid offset by resolving the account through satisfying their account in full, settlement compromise (Partial pay-offs), completing the rehabilitation payment program, consolidation, or discharge by dispute. In other words, if a borrower is not disputing the account they would need to either pay the balance in full or bring the account back to a current status.

How can I check if I am certified for Treasury offsets?

There are several ways to go about checking if a defaulted loan holder is certified for Treasury offset. The most common route would be to contact Department of Ed directly; however in most instances the Department of Eds customer service call center will often refer a borrower to the assigned collection agency currently holding the loan. A borrower is able to check with the collection agency if they have been certified for the offset because the collection agency has access to the same system as Department of Eds customer service representatives. As mentioned above, these agencies are notorious for falsely advising borrowers by twisting their word tracks in their favor. The collection agencys main intent is to receive a commission from the Department of Ed for resolving the account so it may not be the wisest route. The best route to receive an unbiased answer would be to contact the Treasury Department directly. Most defaulted student loan holders are unaware that the Treasury Department has designated a call center to solely service individuals certified for Treasury offsets.

Department of Educations customer service number: (800) 621-3115

Treasury Departments designated offset call center: (800)304-3107

Other things that you might want to know:

Are there different types of compromises?
Standard compromises are compromises where the borrower:

* Pays only the current principal and interest (waiver of projected collection costs/fees)
* Pays at least the current principal and half the interest (50%); or,
* Pays at least 90% of the current principal and interest balance

What is the Rehabilitation payment program?
Rehabilitation payment program is the process by which a federal agency or a third-party given authority by a Federal agency, assess the borrowers financial situation to allow a payment arrangement. Through this process at the Dept. of Ed and the agencys discretion, the debtors will be allowed to repay their student loans through installment arrangements (payments). Only after the necessary documents have been obtained by Dept. of ED and the 3rd party agency the borrowers can complete the number of consistent payments required in order to successfully rehabilitate.

Dealing With Debt Collection

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Most certainly, you have found yourself in the situation where specific individuals or even companies needed to give you money, but you were unable to retrieve it. Instead of just settling, you should consider getting in touch with a team of legal experts that are able to help you with debt collection and much more. For instance, if you are interested in expanding your business, you might want to let the same lawyers help with Seychelles company registration.

No matter how you look at it, actual lawyers are more than capable of dealing with a legal situation in a more efficient manner than you would be able to on our own. In fact, even if you know that you are right in a certain situation, there is no guarantee that you can do something about. Make sure that you do a bit of research before hiring anyone to help you in any of the situations mentioned above and see if you can find a firm that can cater to your needs in other fields as well. The good news about these professionals is that they have the tools and the law by their side so that they can ensure that any debt collection process you opt for, you will manage to benefit from just the results that you are expecting.

It would be so much easier that instead of calling and trying to contact the individual or company that owes you money, you would just hire lawyers to take care of this situation for you. The best part about it is that you will no longer have to stress about it because you know for sure that the situation is handled by actual legal experts that know just how to convince these people or companies to pay you back what they owe.

At the same time, if you have been thinking about trying your luck in another country as well, from a business point of view, you should know that dealing with Seychelles company registration is not something that should be on your mind right now. That is why it would be better to just outsource this specific need so that you can focus on actual marketing strategies that can help you reach your new target audience. You should consider getting in touch with a team of legal experts that are able to help you with debt collection and much more. Even though there is nothing stopping you from trying to deal with this process on your own, there is simply no need to do so.

It would be so much easier if you would just allow actual lawyers take care of it, mostly because of the fact that they know more about the legal procedures and paperwork that they need to work on so that you can start your company in another area. Make sure that you do a bit of research before hiring anyone to help you in any of the situations mentioned above and see if you can find a firm that can cater to your needs in other fields as well.

Dangers of 'Buy Now, Pay Later!'

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Great marketing tempts us to use credit everywhere these days, and ours is a culture of I want it now so... buy now, pay later. This popular belief that living beyond ones means is a normal lifestyle is simply NOT true. A normal, healthy financial situation does not include buying anything you want on credit and just paying later. In fact, you should avoid using credit as much as possible, or altogether. Just what are healthy finances? Find out at here.
Dangers of Buy Now, Pay Later
Proof of how dangerous it is to buy now, pay later is all around us. The Enron and WorldCom disasters early in the 21st century show how poor credit policies can bring on loan defaults and bankruptcies. Failed savings and loan institutions and the resulting $500 billion bailout of the 1990s placed our country in severe financial danger.

The credit and mortgage crisis of 2007 showed how relaxed qualifications and over extending credit not only affected thousands of families but severely damaged the economy. No one is immune to debt - governments, big business, families and individuals are all hurt when they abuse it. Loan defaults and bankruptcies are skyrocketing!

Easy Consumer Credit on the Rise
After World War II, greater availability of consumer credit drastically increased the number of Americans in debt. Marketing experts introduced three new credit strategies still enslaving American consumers today:

1. The Easy Payment Plan. This credit strategy was to advertise a low monthly payment instead of the total cost of merchandise. Consumers were persuaded to shift from saving to pay cash for things, to only looking at how much the payments would be. It worked like a charm!

2. Long-Term Mortgages. Long-term G.l. housing loans were offered to veterans returning from the war. Soon long-term mortgages became the standard of home finance. 30-year mortgages became the rule. Long-term car loans soon followed; many are 6 years - the skies the limit!

3. Credit Cards, Bank Guarantees, and Lines of Credit. Since no collateral was required, credit became easy for Americans to obtain. The high interest rates and fees charged made the lending companies rich. It became very easy for consumers to buy almost anything on credit.

Easy credit has also changed the way people think about and spend money. Studies show that people spend more money when they use credit vs. cash. Many consumers now consider available credit just like cash in the bank. Credit has turned the majority of individuals and families in America into debtors with all its pressure and burdens. If youre in debt, youre not alone. According to the Federal Reserve, Americans are in $1.98 trillion of debt, more than $18,000 per household.

Its ALL about Interest! People who understand interest - EARN it, people who dont - PAY it. Youre not only buying things you cant afford now - but youre paying much more than the sticker price. When you buy on credit you pay your creditor compound interest. According to Albert Einstein, Compound interest is the greatest invention known to man. But its only great if youre on the receiving end, NOT paying it! The wealthy understand this concept, see what they know that you dont at FH4L.

Be the exception! Dont buy into the mindset that consumer lines of credit and debt are part of healthy finance. Theyre NOT. Carefully managed credit is a powerful and useful tool. When used wisely, credit can be very effective in building businesses, establishing credit, and even building wealth. But unmanaged credit quickly becomes out-of-control debt. When it reaches this point it often becomes harmful and even devastating. If you dont have the cash, ask yourself do you really need it and is it really worth it. Keep your emotions in check and resist the powerful marketing and sales messages designed to entice you into buying now and paying later.

It can seem impossible to eliminate debt from your life, but you have the power within you to make the necessary financial changes, and establish new habits based on proven, successful money management fundamentals. Then you can not only pay off your debt, but youll be able to build wealth! FH4L can put you on the right path to financial health.

Customer Churn Analysis The Invisible Force That Every Organization Needs to Have in Its Arsenal

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Customers are the backbone of any business, whether big or small, technical or general, company or a sole proprietorship. All depend on the interests of their invaluable customers. The primacy of the customers has taken businesses from Scratch to Gold, helping them build a reputation in the market for or to even maintain an image for an already established giant. Firms have to make sure that their customers are happy and satisfied or else they will reach their lowest point. For this very reason, various companies and firms have indulged in a practice to ensure their customers dont buzz away from their business and their competitors dont take advantage of their nonchalance. This Practice is called Customer Turn or, a more popular term in the business world, Customer Churn. Customers being withered away to competitors are a common sight and therefore companies around the globe differentiate between two important aspects of Customer Churn, Voluntary Churn and Involuntary Churn. The former relates to the loss of an existing customer due to the decision of the customer himself, whereas the latter occurs because of circumstances not in the hands of the company or the firm or the service provider. Healthy businesses keep a track record of their customers, and their analysts constantly search their databases for any loopholes giving birth to unfavorable circumstances which lead to Customer Churn. This process is called Customer Churn Analysis.

Organizations have separate departments and wings to take care of the needs and services for this very purpose. Banks, telephone and wireless service companies, Internet Service Providers, cable TV companies, alarm monitoring services, etc. are prime examples of businesses which use this effective function of analyzing Customer Churnin the marketing world. By analyzing the situation of the customer base, the experts and analyst make a typical distinction between Gross and Net Churn or Turn. Gross Churn is the loss of existing customers and their related or associated recurring revenue for goods or services during a period in the financial year. Net Churn on the other hand is Gross Churn plus the addition of similar customers at the original location within the same time period of the financial year. With the cost of retaining an existing customer being far less than gaining a new one and then maintaining it, a wise company is one which works on maintaining customer base rather than building a new one solely. Business acumen becomes a key factor in deciding whether a customer stays or steers away into opposition territory. The need of think tanks and separate departments mentioned earlier are necessary and for that very reason.CustomerRetention Strategies are used by the businesses to make sure they customers the main focus. Financial institutions, for example, often track and measure Customer Churn using a weighted calculation called Recurring Monthly Revenue (RMR).

Many business intelligence software programs having the capacity to search customer databases and factors associated for customer churn such as inefficient post-purchase service or non-fulfillment of contract are in use today as part of the customer retention strategies applied by various organizations. For the reduction in the number of customers due to variable factors, organizations have developed various standards for the safeguard of their respective customers. The International Customer Service Institute has developed the International Customer Service Standard to strategically align organizations so they can focus on delivering quality services that the customers demand and hence move forward in the right direction to mitigate the loss in business due to involuntary churn.Not every organization tends to overindulge its customers. In fact, experts recommend removing those customers that are bringing no good to the firm and this is a very integral part of Customer Churn Management. Customers being a lifeline of the business have to be taken very seriously and Customer Churn should be prevented by every business whether big or small to ensure success.

Currency Pairs List

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About Currency Pairs

Foreign exchange trade or forex trading is all about buying and selling currencies in pairs or rather exchanging one for the other. For buying and selling currencies, you need to be informed with regard to how much one of the currencies is worth in terms of the other.

The statement of this relation is made in terms of a currency pair. So a currency pair is the quoting of two currency abbreviations followed by a listing of the value of base currency with reference to the counter currency. The foreign exchange rates are decided by the import and export volumes between two countries. There is an international code which specifies the nomenclature for stating currency pairs. For example, a quote like EUR/USD 1.23 means that 1 Euro is worth 1.23 USD. Here the base currency is Euro (EUR) and thne counter currency is US dollar. Thus, every currency pair is listed in the foreign exchange markets across the world.

Forex Major Currency Pairs

Not surprisingly, the most dominant and strongest, as well as the most widely traded currency is the US dollar. It features in all the major currencies pairs of the world listed below. The reason for this is the sheer size of the US economy. US dollar is the currency that is the preferred reference in most currency trading transactions around the world. It is the dominant reserve currency of the world. Listed below are the forex major currency pairs that have a high liquidity and take up the major share of forex transactions.

EUR/USD (Euro - US Dollar) USD/JPY (US Dollar - Japanese Yen) GBP/USD (Pound Sterling - US Dollar) AUD/USD (Australian Dollar - US Dollar) USD/CHF (US Dollar - Swiss Franc) USD/CAD (US Dollar - Canadian Dollar)

The values of these currencies keep fluctuating according to each other, as the trade volumes between the two countries keep changing every year. The latest currency exchange rates can be found on sites that offer live foreign exchange reports. Currency converters are now widely available online, which can calculate the value of a currency with reference to another, at the current market value.

These are the major currency pairs of the world and are traded the most. These major currency pairs are naturally associated with countries that are financial superpowers with a high volume of trade. The dynamics of the foreign exchange trade is a key pointer to the pulse of the world economy, along with it's rising and falling financial fortunes.

As a wave of globalization engulfs most countries, the fates of these currency pairs are inextricably intertwined. Be certain to study the foreign exchange market in depth before entering this market which never sleeps.