Mark Carolin

Most recently I have been bombarded with offers from various credit card issuers for insurance programs that are “free” for the first thirty days, but you have to sign up right then.

Disability Insurance – I have heard both sides on this issue and it may or may not be something you want to consider depending upon who you work for. The disability insurance will pay minimum payments on your credit card if you are ill or unable to work for at least 30 days. (Check your policy offer for details.) If you keep a low balance-to-limit ratio this insurance might not be a bad idea. If however, you are running close to your credit limit, since the insurance only pays the minimum payments, that plus the charge for this insurance coupled with the accrued interest may cause you to go over your credit limit incurring even more costs and causing credit issues – which is what you were trying to avoid in the first place. This type of insurance might be alright if you think layoff or disability is a real threat in your life but on the average, the industry pulls in millions and most consumers never use the insurance. On the other side of the coin, all insurance is a gamble, you bet you need it and the insurance companies bet you don’t.

Life Insurance – If you don’t take any of the other insurance that is offered, you might want to at least consider this one; depending on the balances you carry.  If you should die, the insurance will cover the balance on your bill as long as it’s up to date and not over your credit limit.  Without insurance, your creditors will attach a lien to your estate that will have to be paid before your survivors receive any of their inheritance money.

As always, check with your financial professionals before signing up for any program that impacts your financial future.

Bad credit is one of the main reasons for bank loan denial. A credit score lower than 580 will most likely ruin your chances for a business loan. Multiple credit checks also lessens your chances for approval. And of course, a recent file for bankruptcy will ensure denial on your request.

Fortunately, there is no reason for despair if you belong to this group of people. There are now available alternatives for getting a small business loan, regardless of your bad credit. It is important, however, that you understand your circumstances before jumping into these alternative means for a business loan.

You can opt for an unsecured personal loan in such cases. But before you do, consider these factors first. One, how much do you need as a business loan? Factor in the numbers and come to a close estimate of how much you really need. Two, how much can pay each month. You have to note that personal business loans often have higher interest rates per month and if you’re not careful, you might become more in debt than you actually were, before the business loan. And three, will you be making minimum payments? Avoid making minimum payments because it actually costs more in the long run.

A business cash advance is also one way of securing the money you need. A small business loan through cash advance is  relatively an easy process to go through as compared to borrowing money from a bank. Most small business, even if they do have good credit, have often little asset and property. This is what makes business cash advances a good alternative for small entrepreneurs in need of immediate money. The only important thing your business should have is access to credit card services (i.e. you accept credit cards for transactions). You just need to have your business’ credit scores established. The best way to do this is to separate your personal credit from your business credit. It is recommended that you control most, if not all, of your business credit needs from only one of two credit card service providers so you have better chances at getting approved quickly. Lastly, your business will need to have gained $2,500 to $4,000 as minimum credit card sales per month.

Most cash advance providers base the amount of business loans by average monthly credit card sales, and of course, your actual need for capital. A business cash advance as a business loan is recommendable because the processing time for approval of your business loan can be as short as 3 days. Since newly opened small  businesses encounter a lot of time constraints with suppliers and clients, easy and immediate access to additional funding is always a plus. Furthermore, cash advance as a small business loan now comes easy with the help of the internet. You can apply for a business cash advance online and have it approved the next day. The business loan will be directly deposited into your account once it is approved.

Use your small business loan to purchase new equipment, marketing, pay debt or taxes, or pay the payroll. Banks and big lending companies are now not the only way of getting a small business loan for your immediate business needs. Fast, online cash advance is now the new means of making your business grow and compete in whatever market you are thriving on.

Today’s economy and high unemployment rates are pushing most of us to explore the option of putting up our own small businesses. You will get to handle your own money, there is no risk of lay-offs, and it is a great opportunity to explore your skills on handling your own business and company. However, more banks nowadays are enforcing stricter rules and guidelines for giving out business loans.  A bad credit history may be one of your concerns for getting rejected for a loan, and this makes it difficult for us to get the financial help few need to get started. Like every other bank or lending institution, risk factors have to be taken into consideration before they hand you their money. The credit card services you have availed and how you paid these services are very important information for these companies because it will be their basis on the approval (or disapproval) of your request, and the rate of interest they can give you. All in all, it is a tedious and stressful ordeal to go through.

Fortunately, there is now an easier way to get a  small business loan without the fear of your own credit card history. Getting a business cash advance is a faster and less stressful way of getting and paying off a business loan. A business cash advance is a lending service offered to business owners who accept credit cards as payment for their goods or services. It has a shorter processing time and you can even do the transaction online. This is ideal for those time-dependent money problems you naturally experience with your business. It usually only takes a few days to a week to have your request processed and approved, with the money transferred to your own account. All you need to do is fill out their forms (available online) and qualify for their basic requirements.

The requirements are quite similar to those of most lending institutions, but your credit history would not be put under too strict reviews. In fact, unlike business loans from the bank, bad credit history is not that big of a deal for cash advance providers. You only need to be of legal age; have a registered business in the US; have a small business that processes credit cards for payment; and have been in business for at least a year. You can use the money to start or franchise your own business, refinance a business debt, buy new equipment or purchase goods, and pay of f debt or taxes.

The payment terms for a business cash advance is, of course, different from that of a business loan from the bank. But in general, the payment terms for this lending service will greatly depend on the amount of money you will be borrowing. The higher the amount, the longer the term period. For banks and other big lenders, payment terms for business loans can be paid off in long term or short term. Small business loan payment in banks usually does not exceed five years.

Payment terms for business cash advance canbe instant or can be done on a monthly basis, it all depends on your capability to pay, and the amount of money you borrowed. The payment terms will usually require you to pay the cash advance company each month and you will get the payment structure with the amount that they expect you to pay every month. If you can afford to pay it off all at once, then the better.

A business cash advance is a great way to fund your small business because it is convenient and easy to apply for. All you need now is to choose a legitimate cash advance lender to get started.

The association that sells and manages insurance programs for Kentucky’s 120 counties operates with a “self-serving culture” that has resulted in millions of dollars in questionable spending the past three years, according to a critical report by the state auditor.

State Auditor Crit Luallen today released a special examination of the Kentucky Association of Counties (KACo), which found that as KACo’s revenues increased 75 percent from 2003 through 2008 to more than $5.7 million, the level of discretionary spending by the organization also increased dramatically– on parties, adult entertainment, expensive meals, sporting events, some employee retirement benefits, even condo rentals for executives.

KACo, a public, non-profit association primarily funded by public dollars and governed by county officials, offers lobbying and financing services and sells insurance to member counties, which pay insurance premiums and membership dues.

The majority – more than 90 percent– of KACo’s revenue comes from fees paid by the insurance and financial programs administered by KACo staff. The insurance portion of the organization is regulated and audited by the Kentucky Department of Insurance. County membership dues are not a large source of income for KACo, having averaged only about $130,000 each year since 2003.

The state auditor’s report claims that a culture of overspending flourished as board members, management and staff spent funds on lavish dinners, alcohol, sports and entertainment tickets, staff birthday meals, adult entertainment, and fancy Christmas parties. The exam found nearly $2 million charged on agency credit cards over a three-year period, with $1.4 million having inadequate or no supporting documentation, an unclear business purpose or was excessive in nature.

The lack of board oversight included weak internal controls, minimal conflicts of interest and ethics policies, and no whistleblower policy, the audit report says.

The exam reviews KACo’s finances from July 1, 2006 through June 30, 2009 and makes 40 findings and more than 150 recommendations to improve board oversight and management operations.

“Our examination provides the leadership of KACo the proper tools to continue to strengthen accountability and to fulfill its responsibilities to the counties and the taxpayers,” Luallen said. “I believe the public expects no less. In this current economic downturn, when our counties are struggling, our citizens have no patience for waste and excess from those who hold their trust and handle their tax dollars.”

Luallen’s office announced its plans to audit both KACo and the Kentucky League of Cities (KLC) in July after media reports raised questions about spending at both organizations. Luallen said the KLC audit would be released in the coming weeks.

Luallen said KACo should have found ways to return increases in revenues to its member counties as lower membership dues and insurance premiums or as additional training programs instead of on wasteful spending.

She said the KACo board has taken steps recently as a result of public scrutiny and media reports to begin to achieve greater accountability.  She also said that there were some board members and employees of KACo who resisted excesses evidenced in the exam and who worked effectively, despite the culture that developed.

Luallene said the KACo board has indicated it would move forward with reforms in reponse to her examination.

The audit uncovered $1.4 million in questionable credit card charges that lacked adequate documentation of their business purpose, including:

* KACo paid $219,144 for 77 restaurant charges that each cost more than $1,000. Examples include: an $8,857 meal at Mike Dikta’s Restaurant in Chicago; an $8,161 meal at Z’s Oyster Bar and Steakhouse in Louisville; a $7,237 meal at Sal’s Italian Chophouse in Lexington; and a $7,082 meal at Starker’s Restaurant in Kansas City.

* In 2007 and 2008, the organization spent $48,426 for two board Christmas parties for management, staff and board members. After brief board meetings that were held during the day, these individuals, along with their guests, were driven to Spindletop Hall in Lexington by a tour bus to attend the Christmas parties each year.

* KACo spent $43,000 on alcohol, although auditors believe the amount is significantly higher based on information provided through staff interviews.

* The organization also spent $28,700 in entertainment ticket purchases, including university football and basketball game tickets, and Kentucky Derby tickets, along with other entertainment venues.

* Auditors found a $1,814 credit card charge for 13 tickets to the Radio City Christmas Spectacular in 2008. The tickets were for entertainment for five board members, along with spouses and companions, during a bond closing in New York City.

* The organization spent $11,593 on staff birthday lunches, $7,262 on staff Christmas gifts, $3,053 on other board and staff gifts, $8,119 on air travel insurance, $2,385 on conference meals and $890 on adult entertainment.

* Adult entertainment charges included escort services on two occasions and four charges at two different strip clubs. These were charged to KACo credit cards of the former executive director and former board president.

Besides the $1.4 million in undocumented credit card expenses, auditors also found other instances of questionable expenditures by KACo.

According to the exam, KACo offers two retirement benefits for its employees: one in the County Employee Retirement System (CERS) and a 6-percent match in the Kentucky Public Employee Deferred Compensation Authority. Over a three-year period, KACo paid $622,355 for the employee 6-percent retirement match.

Additionally, auditors found that KACo spent $334,300 to pay board members for meetings, $278,154 for legal defense for convicted officials, $247,944 for a sports advertising contract, $83,000 for donations and sponsorships, and $12,600 for use of two condominiums.

Auditors found KACo rented two condominiums: One used by the organization’s product development manager in Frankfort at a cost of $11,000 over a 10-month period and another Frankfort condominium for its former executive director for $1,600 for a two-month period.

The list of expenditures can be viewed at www.auditor.ky.gov.

KACo was founded in 1974 as a 501(c)(3) non-profit  corporation by a group of county officials. Its membership includes all 120 county governments of Kentucky.  It was initially formed to offer educational programs, cooperative undertakings  and issue advocacy but over the years had expanded to provide various products and services including insurance. The KACo insurance units include:

* Commonwealth Insurance Company, Inc (CIC), a for-profit corporation that provides employee dishonesty fidelity bond coverage, business income coverage, and extra expense coverage exclusively to the  members of KALF.

* KACo Insurance Agency, Inc. (KIA), a wholly owned subsidiary of  KACo and a for-profit corporation.  KIA was originally  formed to market the KACo group health plan, but has  expanded in recent years to also market public official  bonds, excess earthquake coverage, and spectators’  liability coverage.

* KACo Worker’s Compensation Fund (KACo WC), an unincorporated association  created by KACo that allows county governments and  other public agencies to pool resources and creates a self-insurance fund for the provision of worker’s compensation  coverage.  In addition, the KACo WC Fund also provides  risk management and loss control training to the counties  and agencies that are members of the fund.

* KACo All Lines Fund (KALF), a group self-insurance pool to  provide liability insurance products, including products  such as auto liability, general liability, property, law enforcement liability, public officials liability,  employment practices, and intentional tort and criminal charges defense. KALF also offers risk management and loss control training.

 

Take Your Own Time

 

A decision taken in a hurry might just backfire on you.  Herein, due cognizance must be taken of the long term-affect of the refinancing option. You might just end up paying more for this mortgage then your original mortgage. So, compare the different rates offered by the lender, look up the pros and cons and then make your decision.

 

The Fixed Rate Loan Vs a Variable Rate Loan

 

Are you saddled with a variable rate loan and your rate of interest is increasing day-by-day? Well, home mortgage refinance will help you switch over to a fixed rate of interest.

 

An adjustable loan rate will help you select protective features like lower cap rates, and cash removal from the home equity.

 

The Annual Percentage and Rate Fees

 

This is the prerequisite consideration of any mortgage plan. Before you sign up for a refinance plan, be very sure about your total projected savings. In effect, the cost of financing your new mortgage, in totality, must be less than the savings you incur as a result of interest.

 

You can cut down on your home mortgage refinance cost by asking for no upfront money and simultaneously going for lower interest rates.

 

The “Safe Margin”

 

The “Safe Margin’ allows you to decide whether you must go for the refinance option or not. If the comparison of the balancing cost of savings against refinancing is more than two percentage points higher than the existing market rate, then you can definitely go for mortgage refinancing.

 

Moreover, you must also be prepared to stay in your home for a sufficient amount of time and harbor no thought of moving out. Typically your savings will be realized in about 3-7 years, dependant on the costs at the time you decide to take out a home mortgage refinance.

 

Loan Comparison

 

Comparison between the original loan and new loan has to be done, keeping the future in mind. You must have a fair idea as to how long you want to keep the new loan. In the end, home mortgage refinance is a good option only if the total cost of the current mortgage is more than the total cost incurred as a result of new mortgage. Meaning, your new mortgage will enable you to save money.

 

Be Wary of the Pre-Payment Penalties

 

You might want to pay off your original mortgage early but be aware of the pre-payment penalties involved in the process. Lenders are liable to charge penalty fees, if you are interested in paying off the first mortgage earlier then the designated time frame. This takes care of their interest, which would have been their due if the loan payment had been carried out through its life.

 

The great part of a home mortgage refinance is that, at times, even if the closing cost of your earlier mortgage are added to the new mortgage, the cost of the new refinance mortgage will still be lower than the original mortgage.

 

As can be seen, there are quite a few things you should keep in mind while taking the path of mortgage refinance. Give due thought to all before you make your decision.

Getting a home mortgage refinance is considered a highly profitable decision by many. However, if not thought through, the decision might end up costing you. Visit LoanWeb below today for the best refinancing services on offer.