Cash Flow Finance

Many of us have trouble making are monthly paycheck lsat, but short term finance may not be the best option to remedy this, credit cards, payday loans and overdrafts are fine for stop gap help, but many of us find ourselves stuck in the debt trap sinking further and further each month with out the appropriate plan to get out of it.

Learning about cash flow

Many of us hear adverts on the radi for pay day loans, talking about how she ran into a few unexpected expenses and needs money for right now. So in theory when you make money, you can spend it normally. When you have an extra expense, take out a loan, everybody is doing it. Sounds like somebody is having a cash flow problem, it is always best to put some money aside for those unforeseen problems. What is Cashflow?

How Do I Simplify My Cash Flow?

Can Restructuring My Debt Help With Cash Flow?

What Are The Cashflow Finance Options For Business?

Should I Get A Payday Loan?

What is Cashflow?

Cash flow is simply the movement of money to and from you. Cash flow is a very important concept to wrap your head around and master. People who are good at managing their cash flow can avoid a host of problems.

In our lives of making money and paying bills, things don’t always happen at the perfect time. You don’t always get paid from your job before your bills are due. So what can we do to handle our cash flow so that we can handle the movement of our money better? Well, let’s start with just a few things and then go from there.

How Do I Simplify My Cash Flow?

Simplify: This is just a great start to most things. If you are having problems managing your cash flow, the first step is to try and simplify your cash flow process. If you are doing 50 transactions and getting lost in the mix, then you need to step it down to a level where you can keep a handle on things.

Arrange: Depending on your income style, such as monthly, bi-weekly, etc.. you can work to arrange your cash outs to coincide with your cash ins. Some things won’t ever line up, but it helps to arrange things as much as you can to make life as simple as possible.

Keep a buffer: If you know that your going to need to move cash out before you have some cash come in, then keep some spare money with you to act as a buffer to prevent any extra over draft charges of sorts. The amount of buffer needed will vary from one person to another, but this will prevent most of your cash flow problems.

Pay early: If you can’t arrange times better and a buffer doesn’t help that much, you can also just pay early when you have to money. If your bill isn’t due till the 15th, there is nothing wrong with paying on the 1st. This lets you control your cash flow better than always paying closer to the date that something is due.

Cash flow problems are always very frustrating and drive people crazy. It’s not that they aren’t making money, or can’t or won’t pay. Taking the steps to prevent these cash flow problems will greatly reduce the amount of stress you have to deal with.

Can Restructuring My Debt Help With Cash Flow?

If you have multiple debts, then consolidating them into one can help simplify your cash flow and maybe reduce your monthly outgoings making them more affordable. Consolidating them into one means, you only have the one monthly debt repayment and by extending the term you can make it more affordable, it is important to note that by extending the term may result in you repaying more interest over the term of the finance

What Are The Cashflow Finance Options For Business?

Business finance is different to personal finance, with a number of business finance options available, these include business overdrafts, business loans and something called invoice finance. This is where you are able to get paid on the invoices as you generate them instead of waiting for the customer to pay on there 30 days credit period.

Should I Get A Payday Loan?

Payday loans have become very popular for short term finance, but they may not be the best option, with very high interest rates and penalty charges a lot of people get caught in the payday debt trap, have a look at your monthly in-goings and outgoings and make sure you are able to repay it quickly without borrowing from them again. It is also important to note that some lenders do not like to see payday loan borrowing on your credit profile as this can show you have had difficulty managing your cashflow, and may limit future finance options.

Homeowner Secured Loans 9.8% APRC. Representative example: Borrow £50,000 over 180 months. 60 months at 8.1%, £497.83 pcm fixed at 60% LTV. Then 120 months at 10.1%, £539.89 pcm variable. Total payable £94,656.60. Total cost of credit £44,656.60 (including: £795 lender fee, £985 broker fee & £42,876.60 interest). First Choice are tied to certain loan providers.

Mortgages & Remortgages 8.4% APRC. Representative Example: Borrow £120,000 over 25 years at 5.99%, £778.86 pcm fixed for 3 years at 60% LTV. Then at 8.75%, £974.86 pcm, variable for 22 years. Total payable £286,416. Total cost of credit £166,416 (including: £985 broker fee, £999 lender fee & £164,432 interest)

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Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk

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