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In times of economic recession, every entrepreneur ends up asking the same question: how to make the company grow? Generating better results and increasing profit rates are dreams of everyone who has a business of their own and wants to thrive in their acting market.

The problem is that growth is often tied to the increase in investments, and with the economic difficulties Brazil faces, many entrepreneurs find it difficult to turn the capital in their companies.

If this is also your case, do not despair. There are more options in mind and at your fingertips to make your business grow, even in an adverse scenario.

Check out now 7 steps to make your business grow with simple but highly efficient attitudes!

1. Invest in marketing

You know that advertising is the soul of business, is not it? But unlike what it was a few years ago, putting your company name on the media is no longer an exponentially onerous process and is more accessible and democratic.

The digital media, mobile technology and all the technological trends that we are witnessing have provided facility in the subject of business marketing.

Nowadays, any company, regardless of its size, can expand its reach and compete with larger organizations by investing in assertive marketing strategies and actions. Digital marketing, for example, allows efficient and inexpensive campaigns to collaborate with the company’s results, bringing new customers, better business opportunities and promoting brand visibility into the market in which it operates.

How to make a company grow without it being known, is not it? After all, as the saying goes: “he who is not seen is not remembered”.

2. Make partnerships

How do you grow your business without having good business partners? The task may even be possible, but the venture will certainly face more challenges along its path. Not even the largest corporations in the world have not achieved absolute success alone. Therefore, building partnerships with other companies in your market can be a highly promising and profitable strategy.

The more business partnerships the venture can count on, the greater its chances of winning new customers, increasing its range of opportunities, and optimizing results .

Business partnerships can cover a wide range of needs among those involved in the process. For example, you can count on a company that provides services complementary to yours, or with businesses that can improve the services and solutions that you provide to the market.

Considering a business partnership makes the brand look and therefore known in markets it has not yet explored. That is, it is a way to advance and conquer new territories. Without a doubt, we can say that partnerships are one of the biggest indicators that the company is heading in the right way to become a big business.

3. Increase your network of contacts

A successful entrepreneur must go beyond simple networking to thrive in your business. The key is to take the image of your company to all the places you go. Especially nowadays, where technology eliminates geographical barriers between companies, partners, partners and customers, expanding the network of contacts is almost a prerequisite for success.

Whatever the size of your company or the segment in which it operates, you should take every opportunity to publicize it, participating in corporate events, cultural movements and social causes, as well as ensuring a strong presence in the digital environment. If you practice a sport, you can divulge it to your classmates, the same goes for family lunches and meeting with friends.

Just be careful and good sense when prospecting new contacts. There is the right time and place for this. The idea is that over time your own presence will speak for you, representing the image of the business, without having to say anything. If you still have questions about how to grow your business, this tip will surely help you.

4. Value your employees

How to make the company grow without the help of anyone? You are not alone in the quest for the best deals for your business. Your employees also work day and night for the organization to succeed.

Therefore, it is imperative to have them “wear the shirt” of the company and look for the best results for the organization as a real team. And the best way to get at these results is by showing that they have great value for the running and success of the company.

You can count on some effective strategies to motivate them and bring them to the entrepreneurial culture, such as:

• create bonus campaigns;
• stipulate personal goals;
• reward them financially (commission system);
• provide benefits and security so that you promote the sense of stability;
• develop a productive and enjoyable work environment;
• avoid stimulating negative competitiveness (excessive ambition) among employees;
• hold meetings to hear the suggestions and criticisms of each employee regarding the work routine.

Also, know that there is a big difference between being a boss and being a true leader. While the boss only gives orders and gains results, the leader places himself in the same position as the members of his team and seeks the solutions alongside his led, showing that everyone has their special value in a team.

5. Fidelize your customers

Before you think about getting new customers or how to grow your business, value those you already have. Customer loyalty is a great challenge, but it is worth pursuing. The cost of raising a new customer is infinitely greater than the amount needed to maintain the base.

So consider creating loyalty programs and other solutions that encourage your customers to continue doing business with you.

Offer deals, discounts and unmissable offers to make them buy again. Invest in the quality of your service (this can be a great competitive advantage) and show that consumers have value even after doing business, ensuring that they have their needs met in the aftermarket.

After all, loyal customers not only indicate their brand to new consumers, but also increase the average ticket with each new purchase, since they trust with closed eyes on the quality of products or services that your company has to offer.

6. Focus on a specific market niche

Many ventures are generated from an idea that seems simple, but that is not effective: offer your products or services to all audiences. Most entrepreneurs end up discovering during their endeavor that the ideal is to focus their efforts and strategies in a single niche if they want to grow.

The fact is that offering everything to everyone not only makes the company lose its credibility with its true potential customers, but also wastes time and resources of its employees.

The modern consumer likes to develop relationship with the brands that consume and prioritizes the quality of the service and if you want to know how to make the company grow take this into consideration.

Take a look at how big companies have behaved on social networks, responding to user feedback, investing in laid-back action, and an informal language to engage and engage with their followers. Therefore, businesses that focus on specific audiences tend to offer competitive differentials by knowing that they understand the needs of their customers.

In short, the more focused the company has in a single niche market, the more specialized it becomes, in addition to generating trust and credibility in consumers.

7. Educate the market with your product / service

Many consumers are looking for a solution on how to make the company grow, yet they still do not know the true potential of their business or the usefulness of their products and services. However, it is up to you, as an entrepreneur, to educate the market in which you operate and present the solutions you have to offer your potential customers and the reasons that make your product / service indispensable for everyday life.

Remember that the market is saturated and your customers are constantly bombarded with information about competing products, making it difficult for them to make a decision as to what is the best solution to their problem.

Therefore, educating the market, presenting competitive differentials (characteristics or advantages that competitors can not present) may be the best way to show that what you have to offer is what the consumer needs.

Successful ventures usually engage the public and educate the market, launching tendencies of consumption and behavior, as they position themselves as true market leaders. When a company knows how to play an influential role, the trend is for brand recognition to be implemented in the minds of potential consumers, increasing demand and achieving better results.

As you could see in today’s paper, the way to grow a business in such a competitive market and a delicate economic landscape, such as today’s, depends entirely on its ability to broaden its perspective on the future of the enterprise.

Fidelizing customers, investing in marketing and internet presence, having good business partners, educating the market and valuing your employees are just a few of the strategies that should be part of your business culture if your intention is to make the corporation thrive in a healthy and promising way.

Did you see just how many ways on how to grow your business without having to spend a lot? If you like this content and want to receive more posts like this, subscribe to our newsletter right now! Now, if you need credit for your company and do not have time for the bureaucracy of the banks, count on BizCapital.

Last week I expanded on the method of calculating a mortgage called the Spitzer Foundation (which is the most common in the banks) and before I start talking about the next post, I would like to clarify two important points about the last post. More exposition at http://wrtc2006.com

1. I received many responses that the calculation of the top example was not done correctly – first of all thank you very much to everyone who sent it and he is right. My idea was less to go into and study the mathematical part of the subject, but mainly to explain how the method works “big” without getting into annoying calculations.
2. There were also comments that claimed that I had spoken against the system and perhaps even slightly “killed” the banks. Again, this was not the intention, but rather the main intention of the post was to emphasize that the Spitzer system has a great deal of weight to change the loan. As long as the years so that the rate of disposal of his fund will be faster and thus interest payments will eventually be lower.

Well, after clarifying a few things, I would like to write about the next subject, which is the equivalent of the Spitzer method, which is equal.

So what is an equal fund?

Unlike Spitzer, the return here is not uniform and constant for the entire period, but changes and decreases as time passes.

In other words, if you started with a refund of 5,000 NIS, the refund will start every month until you reach NIS 3,000 (for example, please note that this is only an example and the refund amount depends on the size of the loan and the number of years the loan was taken).

The basis behind the method is that each month a fixed amount of the fund is deducted (for example – NIS 2,000) and the interest rate decreases every month as the balance of the principal decreases.

Benefits of the method:

1. The rate of repayment of the principal is much faster, because each month you remove a fixed amount from the principal (which is significantly higher at the beginning than the derivative) and therefore the fund goes away more quickly.
2. The total interest payments will be lower than the Spitzer method, because the fund here is moving faster and so each year you will have a lower principal and lower interest payments.
3. The monthly repayment – decreases over the years and becomes a “more convenient” repayment in the recent period of the mortgage.

On the face of it, it seems that the method is thousands of times better than the Spitzer method.

But as you know, not everything is perfect in life and here comes two disadvantages:

1. High payments at the beginning of the mortgage – because you pay for the fund payment a fixed amount and higher each month in the first years, it requires you to pay more money in the first period of the mortgage (relative to Spitzer) and you will not always comfortable with it – despite the fact that within a few years this repayment For example, a loan of NIS 1 million for 30 years at 3% interest in the Spitzer method will cost you approximately NIS 4,200 per month (on a regular basis), while the same loan will be NIS 5,300 (NIS 1,100) More) and will eventually drop to about NIS 2,800.
2. Not all the banks and not all the tracks can take an equal fund and therefore your possibility to create broad negotiations between several banks is declining.

Who does the method fit?

1. Such as those who will retire / study / lose current income / planned for additional expenses, etc.).
2. For those who can afford it and have no “problem” with their monthly repayments, they can start a high monthly repayment now and want the refund to slow down. If you do not want the refund to decline, it is better to take Spitzer for a shorter period.

In conclusion ,

On paper, this method is preferable to the borrower (in the end, he will return less money to the bank), but since it is not very common and since we do not always need a refund, there is no need to be locked on this method, as I wrote above, only if there is a real need The years then this method gives a perfect solution. If not then I would have reduced the years in Spitzer as much as possible and remained with a fixed repayment over the years (but with shorter years in mortgage).

PS: I invite you to subscribe to the site’s newsletter (it’s free and free of spam) and be the first to receive updates on new posts – registration is done from here .

Home » Mortgage loan interest rate » Update mortgage lending interest rate Standard Chartered Bank latest 2018

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• Interest rate for mortgage loan with Standard Chartered Bank 2018
• Benefits of unsecured loans at Standard Chartered bank
• Conditions when accepting unsecured loans at Standard Chartered bank
• Documents and procedures for mortgage lending at Standard Chartered bank

The lowest loan interest rate for Standard Chartered Bank is 2018 today.

Credit mortgage has become more and more popular in Vietnam market, it helps customers solve financial problems quickly and without collateral.

One-member limited liability company Standard Chartered Bank (Vietnam) is a branch of a worldwide chain of leading Standard Chartered Bank (UK).

With 100% foreign investment, Standard Chartered Bank (Vietnam), established in 2009, marked an important step in the development of Vietnam’s banking industry.

In 2018, Standard Chartered is the leading bank in reducing lending rates, especially interest rates on unsecured loans. In particular, how about Standard Chartered lending interest rate, please learn through the following article.

⇒Credit loan comparison tool of banks will help you choose the bank with the lowest interest rate for your loan.

1. Interest rate for mortgage loan with Standard Chartered Bank 2018

   

Table of interest rates for unsecured loans Standard Chartered Bank 2018:

It can be seen that the mortgage interest rate at Standard Chartered is very attractive on the market today, much lower than other banks such as VP Bank (18% / year), VIB (15.48% / year). , MB (17.62%) …

Besides, Standard Chartered aims to borrow borrowers who are individual customers who have immediate consumer needs to help customers make dream vacations, study abroad to open knowledge, buy cars or decorate the throne. home today.

2. Benefits of unsecured loans at Standard Chartered bank

Borrowing credits at Standard Chartered Bank in addition to you will experience the international standard service style, customers also have some benefits as follows:

• No collateral and company guarantee;
• Minimum loan amount is VND 18 million, maximum VND 400 million;
• Loan term is from 12 to 60 months;
• Borrow up to 12 times the income.

Loans mortgage at Standard Chartered low interest rates, rich consumer purposes

>> See now: The latest Vietcombank loan procedure in 2018 to be able to get the fastest loan procedures if you are still hesitant to borrow money at this bank.

3. Conditions when accepting unsecured loans at Standard Chartered bank

In order to be able to borrow unsecured loans at Standard Chartered Bank, customers need to meet certain conditions:

• Being a Vietnamese citizen, aged 22 to 60;
• Minimum monthly income (after tax): VND 6 million;
• Income is received through bank accounts;
• Minimum working time:

+ Complete the probationary period;

+ Minimum 3 months in current job. If less than 3 months, the customer must have a minimum labor contract of 1 year with the previous company.

• Have a permanent or temporary residence in Ho Chi Minh City, or Hanoi, or Binh Duong.

4. Documents and procedures for mortgage lending at Standard Chartered bank

   

In order to get a quick mortgage loan at Standard Chartered Bank, customers need to prepare some documents in advance:

• Copy of ID card / Passport;
• Ban Khau replica;
• KT3 or Police certificate or utility bill (for temporary residence);
• Labor contract / Employment certificate (if there is no labor contract);
• Bank statements (and pay slips if needed).

From the above, it can be seen that Standard Chartered Bank is an ideal place for customers to find out when they need financial right and in the short term.

We know that keeping track of business finances is critical to your success. In fact, with the control of the resources spent and available gives inferences about market performance, and also make better decisions.

For good financial management , the use of financial indicators is especially useful. And among them, some are considered more important to know how the business is. So in today’s post we present 5 of them, in addition to their calculations and how to use them properly. Check out!

1. Gross revenue

Gross billing is an indicator it is simple to track, but it serves as the basis for many other analyzes. To keep up with it, you just have to add up all the resource inflows in the company within a certain period.

Basically, just add up all the sales made or all the monthly payments paid by the customers. If a store sold in a month, 200 pieces at $ 100.00, for example, the billing is given for $ 20,000.00.

Thus, the formula is:

gross sales = number of sales x unit price

Initially, it can be compared against the expected value. If the expectation, through relevant analysis, was $ 30,000.00, then there is a probable indication that something harmful to the billing occurred with the business.

2. Profitability

Profitability is one of the most important financial indicators because a business can have high revenue, and not be profitable. So, as it is from the profit margin that the business holds, expands and pays its owners, it is worth keeping an eye on that indicator.

It is calculated as follows:

profitability = (gross profit / revenue) x 100%

If of the R $ 20,000.00, collected in the previous example, R $ 12,000.00 corresponds to the profit, that is to say that there is a profitability of 60%. If the ratio is given by net or operating profit, it is operating margin.

In this case, it is worth thinking that of the R $ 20,000.00, R $ 8,000.00 correspond to the operating profit. Thus, profitability or operating margin is given by 40%.

In fact, there is no unique number that indicates excellent profitability – in fact, the higher the value found, the better. A negative figure, on the other hand, indicates that the business is spending more than it earns, even with sales.

3. Contribution margin

The contribution margin, in turn, indicates in relative way how much each product or service contributes to the company’s profit. And, for it to be calculated, the following formula is used:

contribution margin = [(sale value – fixed and variable costs) / sale value] x 100%

For calculation purposes, let’s take into account a certain product, which costs $ 100.00. Of this amount, R $ 10 goes to the acquisition of R $ 40.00 for various taxes and R $ 10.00 for the payment of other expenses.

Thus, the contribution margin is given by:

contribution margin = [(100 – 40 – 10 – 10) / 100] x 100%

contribution margin = 40%

So, this means that in the case of this product, every R $ 1.00 invested there is a contribution of R $ 0.40 to the profits of the company.

4. Current Liquidity

Knowing the immobilization of business resources is also fundamental for making decisions and for understanding how your financial situation is going. After all, having too many resources depleted the business’s competitive advantage, and it makes you lose good chances.

To prevent this from happening, it is recommended to keep up with current liquidity. This indicator is short-term and shows, within a certain period of time, how immobilized the assets are.

To calculate it, we use the formula:

current assets = current assets / current liabilities

In this case, current assets correspond to all resources, such as accounts receivable, cash and investments. Current liabilities correspond to accounts payable, fixed costs and other expenses.

So if in a given month the company has current assets of R $ 50,000.00 and current liabilities of R $ 25,000.00, for example, current liquidity is 2 or 200% – which indicates that the business has many resources available .

However, in another example, if the assets correspond to R $ 50,000.00 and the liabilities to R $ 75,000.00, then the current liquidity is of 0.67 approximately. With this, the company will need to have cash resources to fulfill its obligations.

5. Average Ticket

The average ticket refers to customers and is especially important to understand both business performance and customer behavior. Basically, it corresponds to the average amount spent by clients within the finished period of time.

The calculation can be done either individually or collectively, as follows:

average ticket = gross sales / number of sales

Therefore, a customer who bought R $ 150 in one month, R $ 220 in the second and R $ 230 in the third month, for example, had a total cost of R $ 600.00 in the quarter. Thus, your average ticket is given for $ 200.00.

Already for the calculation of collective way, just think of a business that had gross sales of $ 200,000.00 and about 500 sales. With this, the average ticket per customer is $ 400.00.

Tracking this indicator is important because to increase business revenue, you can increase both the number of sales and the average ticket – that is, make people spend more.

And the level of this indicator will be good or bad depending on the business. If the average ticket is $ 400.00 and the products cost an average of $ 300, there is an indication that customers are making smaller purchases or are not returning. If the products cost around R $ 100, this same average ticket indicates a successful strategy.

Finally, as we have seen, the financial indicators that allow us to monitor the health of the company include gross revenue, profitability, contribution margin, current liquidity and average ticket. So with proper analysis of them, for sure, the business is favored – just like your success!

So, how have you been following the financial health of your business? Now that you understand the financial indicators better, sign up for our newsletter and receive all our content directly for free!

Everyone who wants to borrow online loans is wondering which is the most advantageous quick credit. We are all looking for a quick and lucrative loan. For a quick loan to be profitable, it has to be useful, to bring us benefits, to have advantages.

Advantageous quick credit must be concluded on favorable terms, be in our best interests, have an account, bring us results and benefits. The most important features of the bargain loan:

• Application mode – there must be a possibility for online submission , this will save us time, transport to the offices of the company, waiting on the spot.
• The documents we present must be few, only the most necessary: ​​ID card . This will ensure discretion, we will not visit instances, ask for references and certificates from the employer. With the creation of the personal register in the NSSI, registered financial companies for quick loans can draw data on income, paid social security contributions and others. From the Central Credit Register of the BNB, they can get a clear idea of ​​what credits we have withdrawn in the last 5 years, what payers we are – perfect, without delays and obligations or with overdue loans.
• Interest has always been the most important criterion for a lucrative credit , the annual percentage rate of charge gives the most adequate idea of ​​the benefit. Fast loans are granted at high interest rates – this is undisputed. There are quick credits that are granted without interest, without any cost, you are returning as much money as you have taken – these are loans granted by companies under two conditions – to be clients of the companies for the first time and to refund the money for a definite time. We know that quick credits are allocated small amounts of money for urgent emergency needs for a short period of time. If we take such a loan, we can do our job, fulfill our purpose and return it within the set time, it will really be profitable for us.
• Fees, commissions and other costs – they add up the credit, it would be advantageous for us to choose a company that does not charge them.
• The time for approval of the bargain loan must be within minutes, and then usu- ally use the money.
• Ways of receiving and returning money must be accessible and easy – by bank transfer, cashier, Easy Cash, ATM and other acquaintances.
• The amount of repayment installments, the maturity date, must be consistent with our capabilities .

Vivus

• Expensive fast online credit within minutes from a solid international company.
• Transparent conditions, size from 50 to 1,300 leva, repayment up to 30 days.
• You yourself choose an amount and a term, apply only – credit only against identity card .
• Without warranty, no warranties are required.
• To get a loan from the company, you need to be 19 years old, meet the minimum credit requirements and provide the requested information.
• Each candidate is individually assessed and granted a loan in line with financial capabilities and needs.
• You may extend the repayment term by 7, 14 or 30 days unlimited times within one calendar year, you may withdraw an additional amount.
• Every first loan is free – credit without interest up to 400 leva, there is no cost, you only refund the amount you have taken.
• There are no fees for registration, application, absorption and management of the money on the loan, no fees and commissions for early repayment.
• Clear, flexible terms of absorption and repayment – you can pay by bank transfer, Easy Cashier, Cash Terminal.
• Working hours – on weekdays, weekends and public holidays.

Feratum

• A lucrative quick loan from a secure financial partner.
• You declare from any mobile device, approval in minutes, you receive the money the same day.
• Loan to pay – from 50 to 1 000 BGN, repayment term from 5 to 45 days. If you can not handle the payout, you can apply for an extension of 7, 15 or 30 days.
• Every first loan to a salary returned within 30 days is 0% interest, 0 leva taxi, you return as much money as you have taken.
• Fast online loans in monthly installments from BGN 400 to BGN 4 000, from 2 to 12 months. You can repay the loan in parts, you can refinance.
• Application conditions: Persons permanently living in Bulgaria aged 18 to 70 with permanent address registration, income and good credit history.
• Credits with minimal documentation for the shortest possible period.
• No hidden charges, there is a grace period for repayment.
• The company operates 24 hours a day without any breaks.
• You can get an official document on the status of your credit.

Achieving a goal or meeting a goal becomes much more feasible when good planning and strategy definition is done earlier.

When it comes to the performance of a company and its financial results , the story is no different. Those who want to maintain a sustainable business with possibilities for investment and growth in the future, need to make a financial planning and stick to it to achieve their goals.

Although discipline and organization pose a challenge for the manager, some steps can be taken to ensure successful planning and achieve better results.

And if you are thinking about adopting this practice in your business, we have listed 7 tips that will guide you in applying effective financial planning. Check out!

1. Make a diagnosis of the current situation of the company

According to the Administrators portal, the planning consists of:

• establish the current state;
• define goals and targets;
• carry out an analysis of the current situation;
• analyze the influencers;
• draw up a plan of action ;
• make necessary checks and adjustments;
• continue the cycle.

Thus, the diagnosis is precisely about establishing the current state and the context in which the company is in order to then proceed in the next stages of planning. This diagnosis can be made from the study of the routines, the data collection and a historical comparison of the results.

With this, all information regarding sales volume, production, inventory, costs and revenue, market positioning and marketing strategies will be known and will serve as a basis for defining the next steps to be taken.

The main objective, based on this diagnosis, is to identify examples to be followed and to establish the points that need to be modified. Correcting the problems identified is a major step towards establishing an efficient and profitable business activity.

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2. Develop a financial schedule

The timeline is a very important tool for those who are conducting financial planning. From this date and deadlines are established for the implementation of the strategies and the achievement of the targets.

Once this schedule is defined, it is fundamental to stick to the deadlines and have discipline in the execution of the activities. Some technological tools can help in keeping what was planned and applying the deadlines correctly.

An example is Google Calendar , the digital version of the object responsible for organizing all the appointments over the days. Google Calendar allows, through an application installed on the mobile phone, the programming of all the obligations established for a good financial planning.

It also has alerts defined by those who use it who notify in advance which appointments are scheduled. All this in a practical way and in a device that is always at hand these days.

3. Set goals and objectives

Those who want to follow a planning need to set clear goals and objectives, both for the manager and for those who work with him seeking to achieve what was established.

In order for these goals not to be dominated by frustrations, one must understand the context and possibilities of the business well. Henceforth, objectives that are challenging but feasible must be defined.

An example is, after detecting a cost-cutting opportunity, to determine a step-by-step goal that would allow such a reduction not to cause negative impacts. In this way, adaptation to the new scenario will be more solid and permanent. Otherwise, relapses can generate both financial and time losses.

4. Determine a cash flow

Cash flow is a control of everything that comes out and what goes into the company’s cashier. Thus, determining a cash flow allows for greater organization and better management of finances, since it facilitates the visualization of the adjustments that can be made in the expenses when the objective is to optimize the realized activities.

5. Conduct periodic evaluations

The constant evaluation of what has been diagnosed and the fulfillment of what was foreseen in the schedule are practices that must be constantly reviewed.

This is because, along the way, modifications or improvements can be detected that will optimize your operation and bring you even closer to the goal of having a sustainable company with growth potential.

Having a periodicity at this time is important so that a strategy is guaranteed that is always up to date with the reality of the company .

An interesting alternative is to set a specific day in the schedule for doing this activity with the time interval that you think necessary between revisions.

6. Negotiate prices and payments

Just like in personal life, negotiating prices and payments in a company brings savings and opportunities that provide a more comfortable and healthy financial situation. Therefore, this should be a priority when it comes to determining effective financial planning.

For suppliers, for example, ceding discounts or renegotiating deadlines is interesting for customer loyalty. The company can use this as an argument for more interesting conditions that fit the budget better.

In this way, this can also be a criterion to define which partners contribute to the development of the business and its growth. An employee who is concerned with analyzing the proposals received and offering competitive advantages over other competitors needs to be properly valued.

7. Plan investments

Once you’ve implemented all of the above tips, you’ll be able to organize accounts and design investments. Whether it is to increase sales volume, hire more employees, or improve infrastructure, the resource needed to make improvements will be available once the planning is well established and the goals achieved.

Although for many managers this subject is considered as extremely complicated, it is possible to overcome the difficulty and obtain information that will help you in a more productive management .

Ready to implement effective financial planning and enjoy the good results it will bring?

Now take the opportunity to deepen your knowledge in accounting and discover what is DRE and how it can help you in the financial statement .

One of the most annoying concepts in the mortgage world is the Spitzer board, which I think has two annoying things:

1. His name – could have found a much nicer name in my opinion …
2. His method of calculation – which is very much in favor of the bank and not in favor of the customer

In the past I’ve written a bit about the subject, but I feel it’s a good time to analyze it a little more deeply in favor of those who take a mortgage at this time.

In a few simple words, I will explain that the Spitzer method is the method by which the loan repayment is calculated – its calculation is somewhat complex (and annoying), but it is important for me to get two main things from this post:

1. That you understand how the method is calculated “in a big way” and perhaps you will look at other alternatives
2. That you understand how the loan period significantly affects your return (which is actually due to the method itself)

So what is the Spitzer board?

When you borrow money from the bank, you are supposed to repay a certain amount each month.

Let’s assume that you have to pay the bank 100 NIS for 10 days at a 10% interest rate. In practice, you are supposed to repay the principal (NIS 100) plus interest (NIS 10, which is 10% of NIS 100).

Since the loan was given for 10 days, you are supposed to return NIS 11 each day to the bank.

The first day came and you came to the bank with NIS 11, and the natural and normal thing that had to be done was for the bank to take NIS 10 for the fund and NIS 1 for the interest rate.

After five days you were supposed to pay back NIS 55, which was supposed to be returned to the bank NIS 50 for the fund and NIS 5 for the interest rate,

So that’s it, it does not work that way.

In the Spitzer method, you pay the bank NIS 11 each day, but the distribution between the principal and interest is different, and it tends in favor of the bank.

For example, from NIS 11 to NIS 9, for example, they were channeled to a fund, and NIS 2 was redirected to interest. In fact, the table should look like this:

Why is it really calculated this way and why is not it in our favor?

Please note what happens after 5 days, instead of having to pay the bank “only” 50 NIS (as in the first table), we actually owe him 55 NIS and instead of the bank charging interest for these five days of NIS 5 he charged interest In the amount of 10 NIS (Needless to say that this is an example only and is not strictly accurate, but only intended to illustrate the method).

What I really want to say is that the bank initially takes from the repayment amount first of all a relatively high proportion of interest and a small proportion of the principal.

It is good for the bank and bad for us for several reasons:

1. The height of the fund drops slowly – and then we actually pay more interest (because it is always calculated on the total remaining fund)
2. Early repayment – if we want to repay the mortgage ahead of time, then basically the bank has already “earned” its interest rate in the first period of the loan and we will remain a larger fund to repay (remember, when we repay the mortgage, we are supposed to pay the remaining principal and not the interest And thus the Bank will prefer to charge the interest rate at the outset).

Do you understand how the method works? Beauty, that’s good! Let’s continue …

The Spitzer Effect of Years

It is very important that you know that the longer the loan, the more the method will work against you. When you take a loan for 30 years you pay 70% of the monthly interest payment and 30% of the loan. % For interest and 57% for the fund.

I present to you in the table how the distribution between the interest rate and the fund is made over a period of 30 years:

And another little sharpening

The ratio between the payment of the principal and the interest derives solely from the years and not from the duration of the loan.

In other words, if you took a loan for 30 years, the ratio would be 70% in favor of the interest rate and 30% in favor of the fund, and that’s only because you took the loan for 30 years and not because it is the first year of the mortgage repayment.

If, for example, you take a loan for 25 years, then the ratio will be 65% in favor of the interest rate – 35% in favor of the fund.

It is important to understand that the myth says that “the more you progress in the life of the loan the better your situation” – the myth is true (because my situation really improves and I return more than the fund as the years pass), but that does not mean that in any loan period I will pay straight 70% for the interest rate – and 30% for the fund, but it depends only on the number of years I took.

In conclusion,
I have no doubt that it is annoying and not so understandable. I am less interested in explaining how the method works in its mathematical / accounting / financing sense, but to show you the matter in a big way, and thereby explain why you should shorten the mortgage.

I hope to write in the next post a little about another method of calculation called “Shona Fund” and will discuss its characteristics and its comparison to the Spitzer board.

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Effective management is the best way to ensure your business is viable. This has everything to do with the concept of financial sustainability. The idea is to balance income and mode of consumption. That is, find ways to use natural resources more consciously.

How does this impact your business? Simple: You can reduce costs and, as a result, increase your bottom line and your bottom line. For more details, follow this post and see what it is and how to achieve the sustainability of your business finances.

What is financial sustainability?

Sustainability is a term usually related to environmental aspects, but it can – and should – be applied to finance . As we said, the purpose is to know how to use resources in a rational way, since the expenses made with quality and the avoidance of unnecessary expenses leads to the formation of a reserve for emergencies.

This can be applied to your personal life as well as to the company. In the corporate world, the goal is to have a more comfortable and balanced reality, which ensures the possibility of maintaining long-term projects. Thus, the company can also fulfill its social mission.

What attitudes are needed for personal financial sustainability?

If an entrepreneur can not organize his own financial life, he will certainly be unable to keep the company’s resources in and out. So the first step in putting the company’s finances on the ground is to think deeply about personal spending and correct the attitudes that undermine the monthly budget.

Having a sustainable financial life means shaping the standard of living to disposable income. That is, you can not spend the salary that has not yet been paid in advance – as happens when we incur debt on credit cards, financing or installments.

In addition, planning for a sustainable retirement can provide conditions for the entrepreneur to maintain the standard of living when he or she stops working. Soon, with his future protected, he could focus on the future of the company. Therefore, you need to build a balanced family budget and have a responsible relationship with your own money to achieve personal financial sustainability.

What are the benefits of financial sustainability for companies?

The great advantage of companies adopting this concept lies in the fact that sustainability is related to activities of accounting, strategic planning, adaptability and vision of the future.

With this, the company manages its finances better and guarantees the fulfillment of investments and payments, as well as the maintenance of infrastructure costs. If this is not done, the business becomes unfeasible. These are other advantages of adopting sustainability:

• increase in profit: the report of the MIT Sloan Management Review and Boston Consulting Group, published by the Journal of Sustainability , said that sustainable strategies were responsible for the profit of 37% of the surveyed. In addition, 50% of organizations modified their business models due to opportunities that arose in the area;
• increasing competitiveness : companies that invest in sustainability invest in the quality of life and well-being of employees, in reducing environmental impacts and in maintaining positive results;
• valuation of actions: the organization that focuses on sustainability is more efficient, because it analyzes several aspects and tries to evolve with the obtained results;
• better corporate image: companies that adopt sustainability are well-liked by consumers and the community at large – many people prefer to buy from responsible companies with natural resources and the environment.
• financial tranquility: the sustainable use of resources ensures more financial peace, because the budget is applied in a balanced way.

Despite these benefits, many entrepreneurs still question the validity of this concept. Problems managing and disrupting documents and data can make this process difficult, but you can apply it to your business.

How to apply this concept in practice?

The idea of ​​sustainability addresses 15 business areas. Are they:

• strategic planning;
• quality management;
• leadership and sustainability;
• sustainable purchasing;
• financial management ;
• productive chaining;
• Social development;
• people management;
• efficient use of water;
• efficient use of electricity;
• solid waste management;
• legislation, standards and certifications;
• marketing and communication;
• market and conscious consumption;
• public policy.

The idea of ​​this broad scope is to allow the entrepreneur to review all his actions and, from there, identify the mistakes that are made and hurt the business.

It is important to emphasize that sustainable actions are translated into simple attitudes such as flexibility, good working environment, adequate leadership, favorable organizational climate and other situations that improve the quality of life at work.

The good use of resources and the avoidance of waste are other recommended actions. For example: to implement a technological system to reduce expenses with paper. Or use the remains of the production sector and reuse for another purpose.

What practices should be avoided to achieve financial sustainability in the business?

In the previous topic, we talked about what it takes to achieve financial sustainability in a company. However, there is also the other side of the coin: the practices that should be avoided. Check some more about some of them:

• to adopt practices with the objective of taking advantage in public competitions – the sustainable company can not be associated, in any way, to illegal schemes or corruption, since the funds diverted mean less resources for the population (transport, health, education, leisure, etc.) ;
• use non-renewable energy sources as the company’s main electrical maintenance;
• neglect good safety practices in the workplace or in production and thereby endanger the health or physical integrity of employees;
• discriminate against persons and employees by race, religion, color, sexual orientation, etc. It should be noted that this issue is also valid for selection processes, which must be fair and respectful of the principles of equal rights;
• to create confusing or unfair contracts to establish partnerships with other companies or to provide services and sales of products to customers;
• disregard technical standards and good practices for the goods produced and, consequently, endanger the physical and psychological health and safety of consumers;
• not to provide an efficient customer service channel (SAC);
• inform the characteristics of the products or services in an inappropriate way for the consumers;
• not to inform the correct disposal of packaging, products that are out of date or will no longer be consumed for any other reason;
• do not adopt reverse logistics – when necessary – to prevent certain products from being disposed of in the environment. This point should not be neglected by companies that manufacture products that are slow to biodegrade or attack nature (batteries, tires, medicines, toxic products, etc.).

Keep in mind that all these practices affect and the company image and, consequently, your billing. And as seen, increasing revenue and profits is crucial for a business to stabilize its finances and can continue to grow.

How you could perceive, understand and apply financial sustainability is not difficult and your company has much to gain. Increased competitiveness and productivity are enough to justify the adoption of this model in your business. And if you want to have more practical tips like these, subscribe to our newsletter and see how to improve your business every day!