It is well
known fact that the products and services usually do not reach to the people’s
expectations. If the expected level of satisfaction and the actually attained
level of satisfaction are reasonably close, people will tolerate the gap. But if
the actual satisfaction level is much low, it means, the gap between what
people want and what they actually got
is not same then people will not tolerant the gap and the protest from
the buyers arises. This phenomenon had led to a new concept called
‘Consumerism’, a name given to the consumer protection movement.
Kotler has defined consumerism as ‘’a social movement seeking to increase the
rights and powers of buyers in relation to sellers’’. Consumerism as a social
movement built on the foundation of frustration, dissatisfaction and bitterness
of consumers. It is a battle against exploitation and is collective effort of
the consumers to protect their interests. It is generally organised by
concerned citizen with government support, to protect and enhance the rights of
buyers in relation to sellers and rights of consumer in relation to producers.
It leads to development of policies aimed at regulating the products and
services, methods and standards of manufacturers, sellers and the advertisers
in the interest of buyers. Such regulation may be institutional strategy or
embodied in a voluntary code accepted by a particular industry or it may result
more indirectly from the influence of consumer organisation. Thus, consumerism
An organised effort of consumers.
concerned with increasing rights and
powers of consumers in relation to sellers,
oriented towards ending the
malpractices of business community,
aimed at obtaining adequate relief to
a movement placing more stress on
protection of economic interest and physical safety,
a psychological projection of
negative attitude of dissatisfied consumers and
a movement encompassing various measures
and activities of government business, voluntary organisation and concerned
consumers to achieve consumer welfare.
by Priyanka Anand • • Comments Off on Meaning and Objectives of Budgeting
In our daily life we use to prepare budgets
for matching the expenses with income so that available funds can be invested
in profitable manner. Similarly, in business budgets are prepared on the basis
of future estimated production and sales in order to find out the profit in a
specified period. A budget is in the nature of an estimate and is a quantified
plan for future activity to coordinate and control the use of resource in a
specified period. Thus, budget is a quantitative statement of management plans
and policies for a given period and is used as a guide for the purpose of
attaining the given objectives. It is also used as a standard with which actual
performance is measured. Budgets must be prepared with full knowledge and
acceptance by the executives whose performance is to be measured against the
budget. Different types of budgets are prepared for different purposes.
Budgeting may be defined as the process of
preparing plans for future activities of a business enterprise after
considering and involving the objectives of the said organisation. This also
provides the steps of collection and comparison of data by which deviations
from the plan either favourable or adverse can be measured. This analysis is
helpful in performance analysis, cost estimation, minimising wastage and better
utilisation of resources of the organisation.
Objectives of Budgeting
It is well known fact that planned activity
has better chances of success than unplanned one. The budgeting is a forward
planning and effective control tool. Thus, the objectives of budgeting are:
To control the cost and increase revenue and thereby maximise the
profit so as to know the profit at different level of production and best
To run production activities in efficient manner by lay behind the
chances of interruption in production process due to lack of material, labour
To bring about coordination between different functions of an
enterprise this is essential for the success of any enterprise.
To incorporate measures of calculation of deviations from budgeted
results and analysis of the same whereby responsibility can be fixed and
controlling measures can be taken.
To ensure that actions taken are in accordance with the targets
and if required to take suitable corrective action.
To predict short term and long term financial position for better
financial position and management of working capital in better manner.
by Priyanka Anand • • Comments Off on Here’s Why You Should Always Pay Your Credit Card Bill on Time
At times, when you are short of cash or other
payments to make, you might be tempted to delay your
credit card payment. Do you know how important it is for you to make credit
card payments on time? Are you aware of the consequences? There are people who
are ready to pay late fees or even penalty charges. Are you one of them? If you
are, in that case, you need to be aware of certain things which might encourage
you to make payments on time. What if I told you that delaying your credit card
payment can damage your credit score, big time! Besides, there are various
other factors which you need to take into consideration
In the following section of this article, you
will be offered a brief insight, as to why it is important to make credit card
payments on time
Why You Should
NeverDelay Your Credit Card Payments
Here are some of the reasons that would prompt
you to make the payments on time. Some of them might appear to be negligible;
however, they can have a serious impact
on your overall financial well being. Here are a couple of reasons that might
Say No to the Collection Agencies: There are many debt collection agencies
operating in the market whose main job is to push those who fail to make timely
payment. Even if you have a very small amount that has been kept unpaid for
many months, can be handed over to the collection agencies. The moment your
account is being handled by the collection agencies, your option of making
minimum monthly payments is gone! The collection agency is likely to demand the
full amount and even at times some additional charges as permitted by the law.
They will keep on disturbing you as long as you don’t pay them. This can be
really damaging for your reputation. Remember, their job is to collect the
money from you. Hence, they won’t hesitate to harass you if required.
Lower Interest Rate: If you are late with your credit card bill payment, in that
case, it can affect the low-interest rate
that you have been enjoying. The credit card companies have permission to increase the rate of interest if
you are late with your payment for more than 60 days. There are some companies
who charge a staggering rate of penalty interest
and can be as high as 30%
Late Fees: Companies can charge late fees if you are late in making
payment for even an hour past the due date! Not possible? Well, there have been
instances. Besides, why would you want to pay late fees in the first place? It
can amount to something between $15 and $40. That’s a substantial amount.There
is one more thing that needs to be mentioned, your late fee amount might
increase if you fail to pay consistently for 6 months. Therefore, it is
absolutely necessary for you to make sure that you made your credit card
payments on time. It will help you save a lot of money
Improve the Credit Score: As far as your credit
score is concerned, nearly 35% of it is being
determined by the fact whether you have made timely payment of your credit card
or not. If you make your credit card bill paymenton a timely basis, every month, in that case, your credit score would shoot up. On the other
hand, if you are a defaulter on a consistent basis, in that case, your credit
score might get affected big time
Low Insurance Rates: It is your credit score that is used by the
insurance companies for the purpose of determining the rate of insurance. If you are late with your credit card payment
on a regular basis, in that case, it will
affect your credit score, as a matter of fact,will
lower the score. This will result in an
increase in the rate
of insurance when it is time to renew it. Making
credit card payments on time makes sure that the lowest rate of insurance is
being maintained and it also helps to save a lot of money.
Lowers Your Monthly Payment: If you miss your credit card payment, in that
case, your next month’s bill will be more than double. Wondering why more than
double? Well, you probably didn’t take the late fees and penalty charges into
consideration. If you think that you skipping the payment for a month would
give you some relief, then you are mistaken. The amount will keep on mounting
up and there will be a time when it will go beyond your control. Therefore, it
is absolutely essential to make sure that the credit card payments are made on
Good Standing: If you keep on missing your credit payment on a regular
basis, in that case, the companies do have the right close your card. Your card
will be deactivated, even if you have a sufficient
amount of credit limit available on it. Unless you clear your previous dues,
you won’t be able to use your card. On the other hand, if you make your payment
on time and have a track record of making prompt payment, in that case, the company could and generally does,
increase the credit limit on the card. It helps to keep your account in good
These are some of the reasons as to why it is
important to make credit card payments on time. No matter what, you need to
make sure that you don’t skip a single payment. As mentioned, you might feel
that skipping a payment for a month would
give you relief; however, it is temporary, it is going to hit you back quite
hard the very next month. Besides, good portions of your credit limit remain used up if you don’t clear your previous
dues. Therefore, make it a point to make credit card payments on time
There is one more important factor which is
related to making a prompt credit card
payment. It is your credit score. You need to remember, that your payment
pattern plays a very important role when it comes to determining your credit
score. Therefore, in order to make sure that you have a good score and it keeps
on rising, you need to make the payments on time and need to maintain consistency.
Are you not in a position to pay a considerable
amount of money at the end of every month? In that case, you need to make sure
that you use your card in a judicial manner.
Budgets can be classified in different categories on the basis of time, function and flexibility. The different budgets covered under each category are shown below :
1.Classification According to Time
The budget, on the basis of time, may be classified as:
Long – term
– A budget designed for a long period is defined as long term budget. The
period generally is of 5 to 10 years. These budgets are concerned with planning
of the operations of a firm over a considerably long period of time. They are
generally prepared in terms of physical quantities.
Short – term
budget – The
budget prepared for a period less than 5 years is defined as short term budget.Generally, short term budget are
prepared for a period of one to two years. They are generally prepared in terms
of physical as well as in monetary units.
Current Budget – The budget prepared for a period of a week, a month or a quarter is termed as a current budget. They are essentially short term budget adjusted to current conditions or prevailing circumstances.
2. Classification According to Function
types of budgets under this head are as follows:
Budget: This is the most important budget on which all
other budgets are based. The sales manager is responsible for preparation and
execution of the budget. The budget forecasts total sales in terms of quantity,
value, items, periods, areas etc.
Production Budget: The budget
is basically based on sales budget. It forecasts quantity of production in
terms of items, periods, areas, etc. The work manager is responsible for
preparation of overall production budget and departmental works manager is
responsible for departmental production budgets.
Cost of Production
Budget: Itforecasts the cost of production.
Separate budgets are prepared for different elements of costs such as direct
material budget, direct labour budget, factory overheads budget, office
overheads budget, selling and distribution overhead budget, etc.
– The budget
forecasts the quantity and the value of purchases required for production. It
gives quantity wise and period wise information about the materials to be
purchased. It correlates with sales forecast and production planning.
– The budget
anticipates the quantity of personnel required during a period for production
activity. This may be further split up between direct and indirect personnel
– The budget
relates to the research work to be done for improvement in quality of the
products or research for new products.
Expenditure Budget – The budget provides a guidance regarding the amount of capital
that may be required for procurement of capital assets during the budget
– The budget
is a forecast of a cash position, for a specific duration of a time for
different time periods. It states the estimated amount of cash receipts and
cash payments and the likely balance of cash in hand at the end of different
Master Budget – It is a summary budget incorporating all functional budgets in a capsule form. It interprets different functional budgets and covers within its range the preparation of projected income statement and projected balance sheet.
3. Classification According to Flexibility
Budgets can also be classified in the
– A budget
prepared on the basis of a standard or fixed level of activity is called a
fixed budget. It does not change with the change in level of activity. If the
output and sales do not fluctuate from year to year or if an accurate
prediction of the same can be made, a fixed budget can be prepared.
A budget designed in a manner so as to give the budgeted cost of any level of
activity is termed as flexible budget. Such budget is prepared after
considering the fixed and variable elements of cost and changes that may be
expected for each item at various levels of operation.
by Priyanka Anand • • Comments Off on Transferring Money to India from Abroad: Challenges & Solutions
Transferring money to India from abroad
isn’t as much of a challenge today as it used to be a few years ago. The rise
of online money transfer companies helped a great deal. These services provided
a cheaper and more efficient alternative to bank transfers. This, in turn, has
had a positive effect on the development of the Indian economy as a whole.
There aren’t many international money
transfer companies operating within India yet. And those that do, often offer
somewhat limited services. However, the increasing demand is sure to change
this situation soon.
The Growing Need for International Money Transfers to
Today India is at the top of the remittance
receiving countries in the world. Indians working abroad sent over $68 billion
back to their homes in 2016. This amount has been growing at a fast rate over
the last decades and it shows no signs of stopping.
In fact, it grows faster due to the
increased availability of money transfer services. The majority of all
remittances, go to rural areas. People there rarely have access to banks.
However, today you can benefit from the convenience of transferring to India with
online providers. It’s easier for the average person from a small village
to get to a computer with an Internet access than going to a bank. Therefore,
such online platforms make it possible for more immigrants’ families to get the
help they need.
With such a huge contribution to the
country’s economy, it’s safe to say that online money transfer companies play
an important part in improving the Indian economy. However, remittances aren’t
the only way, through which these services help the country prosper.
Today, India is the second most popular
destination for outsourcing in the world and the first in some industries. For
example, India is the leader for IT outsourcing, and the IT industry is the fifth
biggest in the country.
Businesses that outsource their services to
India and everyone who hires freelancers from this country need to pay them for
their services. The limitations associated with traditional banking routes are
the same for these businesses. Therefore, they need alternative solutions to
make this kind of outsourcing beneficial for them. Online money transfer
platforms give them exactly what they need. Thus, they help increase the demand
in the Indian workforce and create new jobs.
Challenges of Transferring Money to India from Abroad
Both immigrants and businesses that
outsource to Indian professionals can appreciate the benefits of online money
transfer companies. The main reason for this is that they can save quite a bit
of money with their help.
Traditional bank transfers and services of
companies like MoneyGram or Western Union can result in losses of 5-10% of the
transfer amount in fees. Online money transfer platforms charge small fees, if
any. And when using them, you can also get a better currency exchange rate,
which helps you save further.
You also shouldn’t forget that traditional
money transfers take a lot of time. Sometimes you might need to wait for up to
a week before you can use the money. With online money transfers, you can get
them in a few hours or a couple of days max.
The ease of use is another benefit that
makes these companies more attractive. Some of them don’t even require for you
to have a bank account in order to receive a transfer. All you need is a
smartphone and an app that will provide you with all the necessary instructions
on how to get your money.
On the other hand, the complexity of the
banking process is notorious. Therefore, you might need professional help in
order to understand all the intricacies connected with bank transfers coming
from abroad. Never skip the fine print in Terms and Conditions, regardless of
whether you use a bank or a money transfer company. This is the part of important
paperwork where less trustworthy businesses hide nasty loopholes.
Please bear in mind that in India, all
foreign currency transactions are regulated by the Foreign Exchange Management
Act of 1999 and Foreign Exchange Dealer’s Association of India.
Money Transfers to India: Examples of the Best Companies
If you want to be confident in the security
of your transfers, you should go for the company with a long history of
excellent service. Payoneer
in India is a fine example of this. It has over three million clients
worldwide, and this number is growing constantly.
Payoneer transfers to India are
specifically designed to be a great solution for freelancers. Their main
benefit is that you don’t even need to have a bank account to use this service.
This means that Payoneer offers a fantastic opportunity to the people in more
rural areas, who don’t have easy access to banks.
Currencies Direct is one of the
leading money transfer companies in the world. Therefore, it’s not surprising
that it contributes to the huge and demanding Indian market. The company even
has an office in the country. It’s a proof of commitment and trustworthiness
that not many online money transfer companies offer today.
This company, however, doesn’t accept
clients based in India. Therefore, it provides only inbound transfers for the
country. On the other hand, the terms and rates offered by the company are very
good, so everyone can benefit from its services, regardless of the transfer
Money Transfers to India from Abroad: Final Thoughts
The market for money transfer services in
India is huge, growing, and rife with opportunity. The coming of online
transfer companies made a big impact on the country’s economy. However, there
is still a lot of room available for companies willing to take the risk with
working in India.
As both the outsourcing and remittances
continue to increase, so will the appeal for the providers of these services.
It’s true that the economy of India can be rather unstable, and such a volatile
environment is a big risk for any financial service providers. But the positive
changes, partially brought by the fact that transferring money to India has
become cheaper and easier today, improve the situation as a whole. With more
stability, more companies should be willing to provide India with options for
effective and affordable money transfers from abroad.
by Priyanka Anand • • Comments Off on Secured and Unsecured Business Loans: Choosing the best fit for your business
The age that we live in is very
entrepreneur friendly and is considered as the age of startups. With support
and aid from governmental and private institutions, it is no longer a daunting
task for business aspirants to raise debts. With incubators and accelerators in
place to offer aid in mentor-ship and business expansion, it is no longer a
daunting task to break even, clear debts, and skyrocket into profits. With
thousands of startups and small and micro enterprises raising capital through public and private institutions,
the options are more flexible and are oriented to help the applicant go through
the journey with maximum ease.
Mostly applied for by
entrepreneurs and business aspirants, these are for starting a company or for
raising working capital or for business expansion or for purchasing new
machinery/technology. While these are the broadly categorized buckets, any
needs for additional capital are provided to as long as the necessity of
instant additional funding is justified.
Types of business loans:
When you are out in the market
looking to get the loan that best fits your needs, a thorough research on the
types of loans available and the paperwork they come with falls in the
preliminary things to do. In this competitive market, there are a plethora of
lending institutions that will offer you the funds you looking to raise. That
said, walking into a discussion with them without doing some back-end research
could turn out to be overwhelming. To help you get the foundation right,
this paper will touch-base the different kinds of loans available and the steps
involved in picking the one that’s the right fit for you.
Secured business loan: As the name suggests, these kinds of loans are available from
lending institutions when the applicant is willing to offer residential,
commercial, or industrial property as collateral. Apart from Gold, stocks, and
Bonds are also accepted as collateral by lenders. These loans are generally for
longer intervals and are available at a lesser rate of interest due to the absence
of risk. If you are willing to offer a collateral for raising those immediate
funds, this is an apt solution for your business. Else, you could always choose
for unsecured business loans.
Unsecured business loans:
To explain in layman terms,
unsecured business loans are like personal loans for individuals. Like personal
loans, these are easy to apply, swift disbursement, and come with a higher rate
of interest as they do not require any sort of collateral from the applicant.
Credit cards, Payday loans, Line
of Credit, Cash Advance, Signature loans, Peer to Peer loans, Student loans,
Small business loans, Business loans with guarantor, and Term loans are the few
types of unsecured business loans that are available for applicants to choose
from. Please note, except Peer-to-Peer loans, all the other kinds are offered
by private and public institutions. Running a thorough research on these across
various competitors is a good practice.
Off the lot, Line of Credit,
Credit cards, Signature loans, term loans, small business loans are the kinds
we will be talking about to realize if they are the best fit for your business.
Line of Credit:
This is a prominent unsecured
business loan entrepreneurs opt for, as it offers them the flexibility to
choose from a pool of funds and pay interest levied on the funds withdrawn.
This is a good fit if you are looking to back your working capital with this as
emergency funds. Also, with LOC (Line of Credit) the applicant will not have to
offer collateral depending on his/her credit score and relationship with the
In this model, the user can also
choose to alter the payment method depending on the cash inflow, thus making it
Term loans mostly fall under secured business loans but in certain circumstances can be offered as unsecured business loans depending on the credit score of the applicant, amount of capital requested, current banking structure and nature of the relationship with the lender. With term loans, the rate of interest could either be fixed or be floating in nature, depending on the terms agreed upon by the applicant and the lender. These come with a fixed maturity date and can either be repaid in weekly, monthly or quarterly instalments. The tenure for these loans range between 1 to 25 years and are apt if you are looking to build the business from scratch or are looking to expand the current business module.
Breaking down the nomenclature,
this form of unsecured business loans are granted by taking just the signature
of the applicant as the collateral. These types of unsecured business loans
often offer a lesser rate of interests when compared to credit cards and are
opted in the case of medical emergencies, to tackle unexpected expenses or for
vacations. Studies have proven that these kinds of loans are the preferred
method when the need arises to close another lending with a higher rate of
Signature loans can offer your
business that sudden funding to tackle unforeseen expenses or implement
measures to accommodate sudden business expansion opportunities.
Small Business Loans:
Small Business loans have more
than often been seen as a secured business loan but there are many tips that
can help you get this as an unsecured business loan. While we will not dive
deep into what those tips are in this paper, information on these kinds of
loans will be shared. Small Business loans are available to applicants with an
excellent credit score with a consistent lack of defaulting. These loans come
with a varied or fixed rate of interest and when undertaken in an unsecured
business loan can be obtained from Peer to Peer lender, private lending
institutions, and cash advances.
These are the various kinds of
unsecured business loans you could choose from as an applicant if you are
looking to raise funds without offering any property as collateral. Hope
this article has helped you zero-in on the type of loan that is the best fit
for your business. If you there are queries you’d like our team to answer, feel
free to get in touch with us here.
by Priyanka Anand • • Comments Off on Meaning of Contract for Sale of Goods
According to Sec. 4, a contract of sale is a contract whereby the seller transfers or agrees to transfer the property in goods to the buyer for a price. A contract of sale includes both a sell and an agreement…
by Priyanka Anand • • Comments Off on 10 bright ways to finance your startup for its growth
Receiving funding for a business can always be challenging no matter what the economic and business conditions are. Once you realize you cannot bootstrap your business any longer you are then torn between whether to go for equity funding options…
by Priyanka Anand • • Comments Off on 8 Common Myths About Personal Loans
For people who need instant access to money, yet don’t have any sizeable assets, a personal loan can be a huge, huge blessing. Unfortunately, as with many financial topics, there are plenty of myths surrounding personal loans which often intimidate…