Business crisis and finance crisis are accompanied by declining markets and fear of an imminent stock crash. Recession 2008 was no exception. As an industrial crisis unfolds investors are caught unaware until it becomes title stories, at which time it is too late to avoid investment losses. Let us have a look at the past, and then the future. How can you avoid crisis in your private investment portfolio and finance 101?

I personally remember the doom and the fear of a stock crash. I started as a stock broker in 1972. Rising inflation, increased interest rates, and a slow economy spawned a new term, stagflation. The stock exchange took a top hit, but it was nothing compared to the stock crash of 1929. Compared to the Great Depression, there was no financial crisis.

Again in the early 1980’s rates and inflation soared. Some money writers saw no end to the trend, and called it a fiscal crisis. Economic crisis loomed on the horizon and stocks and bonds took a hit, but the economy recovered and so did the stock market.

In the 2000-2002 stock exchange screw up the issue was inflated stock prices. Stocks slid seriously accross the board, but the sole stock crash was in shares of way over-valued stocks.

By the year 2009 the world was wrestling with recession 2008, business crisis, finance crisis and declining markets. Recession 2008 had turned into a monster.

For the investor there is no silver bullet once the malaise is underway. But investors can do damage control, and they can lessen their exposure to heavy investment losses in the future thru smart asset allocation.

Asset allocation is the process of dividing your total investment portfolio into various investment categories called asset groups. Historically , the investment community has based their financier recommendation on 3 basic asset classes: cash, bonds, and stocks.

Cash means safe, short-term liquid investments like T-bills. Bonds represent long term debt, and stocks represent corporate ownership. The good thing about asset allocation: by investing in all 3 asset sectors, financier losses can be kept to a moderate level. To explain, if there’s a stock crash, your bonds and cash could rescue you from private finance crisis.

Asset allocation is super important for the average investor in pursuit long term growth with only moderate risk. It may also add to your peace of mind.

If you’ve a 401(k), review your asset grant. If you have investments with a monetary plannner, do the same. Remember, if you hold stocks or stock hedge funds you have market risk, and can expect losses in a falling stock exchange. Adjust your asset allocation to an investment mix you can live with comfortably, and with your link2%.

Don’t let anybody talk you into investing eighty percent or 90% of your portfolio in stocks or stock funds, regardless of what age you are, if you aren’t ok with it.

Don’t panic and dump your stocks after a steep decline in the stockmarket. Instead, consider augmenting your allocation to stocks. Extreme mistakes can be evaded if you set up an asset allocation mix to fit your comfort level, making adjustments over time.

Don’t let business crisis or a stock crash catch you off guard. Invest informed and diversify your investment assets across the asset groups. Get some peace of mind.

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10 Easy Ways To Organize Your Business Finances

Whether you are a new entrepreneur or a more experienced business owner, taking control of your finances can feel like a part-time job. Some simple tips can help you streamline your time, organize your finances and reduce the stress of business money matters.

1. Keep Your Bills in One Place

When the mail comes, make sure it goes in one place. Misplaced bills can be the cause of unwanted late fees and can damage your credit rating. Whether it’s a drawer, a box, or a file, be consistent. Size is also important. If you get a lot of mail, use an area that won’t get filled up too quickly.

2. Pay Your Bills on Schedule

Bill paying can be simplified if it’s done at scheduled times during the month. Depending on how many bills you receive, you can establish set times each month when none of your bills will be late. If you’re paying bills as you receive them, chances are you’re spending too much time in front of the checkbook. Although bills may state “Payable Upon Receipt”, there’s always a grace period. Call the creditor to find out when they need to receive payment before the bill is considered late.

3. Read Your Credit Card Statements

Most people take advantage of low interest credit card offers but never read their statements when paying the bill. Credit cards are notorious for using low interest as bait for new customers then switching to higher rates after a few months. Make a habit of looking at your statement carefully to see what interest rate you are paying each month and if any transaction fees have been applied. If the rate increases or a transaction fee appears on your statement, a simple call to the credit card company can oftentimes be beneficial in resolving the matter. If not, try to switch your money to a more favorable rate.

4. Take Advantage of Automatic Payments

Most banks offer a way to automatically deduct money from your account to pay creditors. In addition, the creditors usually offer a lower interest rate when you sign up for this payment option because they get their money faster and on-time. Consider it as one fewer check to write, envelope to lick and stamp to buy. Just make sure you record the deduction when the automatic payment is scheduled or you run the risk of bouncing other checks.

5. Computerize Your Checkbook

Using a software program is a handy way to organize your finances. Whether it’s Quicken(r), Microsoft Money(r) or another package, these easy-to-use programs make bill paying and bank reconciliation a cinch. Computer checks can be ordered almost anywhere and fit right into most printers. Once the checks are printed, all of the information is automatically recorded in your electronic checkbook. Furthermore, many banks have direct downloads into these software packages so when money is deposited or withdrawn, the transaction is entered immediately onto your computer. And, when it comes time to do taxes, it couldn’t be easier.

6. Get Overdraft Protection

Most banks have a service where, if you run the risk of bouncing a check, the money will come from another source. For a nominal fee, the bank will link your checking account to either a savings, money market, or credit card so the embarrassment of bouncing a check will be avoided. Call or visit your bank to learn about this convenient feature.

7. Cancel Unused Accounts

Whether it’s a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, it is a useful way to avoid money from being scattered all over the place. Don’t let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It’s easy for credit to get out of hand by taking advantage of every credit offer that comes your way.

8. Consolidate Your Accounts

If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.

9. Establish Automatic Savings

Create a link from your checking account into a savings account that will not be touched. This can usually be done through the banks and automatic amounts will be transferred over each month. Most people will not put money into a savings account on a regular basis. They may wait until a large tax refund check arrives or some other event to actually deposit money into savings, retirement or other accounts. If you establish an automatic savings deposit every month, your accounts will begin accumulating money faster than you think.

10. Clean up Your Files

Make sure your paid bills are organized in a filing cabinet. Keep individual files for paid bills. Go through your files at the end of each year and throw out bills and receipts no longer needed for auditing purposes. Contact your local IRS office to see how long records need to be kept for audits. Usually federal tax return audits can be done three years back but cancelled checks may need to be kept for seven. Consult the Internet for auditing and records-keeping procedures for your state or region.

Read more about memory and finance issues.

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Invoice factoring can help assist companies manage cash flow, expanddevelop their business, purchase pay for new machinery and stock, or even merge with or acquireobtain a new company. For many companies, customer debt can be the largest chief asset on the balance sheet, often representing indicative of two or three months’ worth of sales.

Invoice Factoring can help companies struggling with slow-paying customers clients by allowing them to borrowhave access to money against invoices issued. It is sometimes calledreferred to as full-service factoring, because the factor takes over all credit managementsupervision and collections work, to ensure make certain speedier customer payments and chase track bad debts. These can also cut the company’s in-house administration overheads.

The factor pays as much as 80 to 90 per cent of the value of the invoice. When the customer pays, the company receives the balance. This allows the company to borrow money without having to secure the loan on any assets, while allowing its borrowings to grow expand in line with sales. Factoring services typically cost between 0.75 and 2.25 per cent of turnover, plus interest on the cash advance. For many companies, this is a price worth paying.

Invoice factoring companies can also provide offer a speedy injectionaddition of funds. Extra cash flow can turn a company’s affluence round in a week, giving it the money to make essential payments to keymain suppliers.

Factoring is sometimes described as a flexible loan, which a company can draw down everytime it issues a new invoice. That kind of flexibility is key important in the current marketplace with overdrafts more difficult to obtain.

Interest rates on the cash advance are similarcomparable to rates on a secured overdraft, but facility service charges are usually more expensive costly, however you can realise attain three times the amount of money for your business. If a business urgently needs money to put recruit a member of staff to sell more products or take advantage of a supplier special offer, invoice finance can be extremelyparticularly effective.

Although factors provide offer valuable services, companies are sometimes wary cautious about using them. A possible problem obstacle with factoring is that the intervention interference of the factor between the factor’s client and the debtor company could endanger jeopardize trading relationships and damage goodwill. Customers might prefer to deal with the business and not the factor. In this instance Invoice Discounting may be a better solution. As collections are handled by the business and are confidential

Also ending terminating a factoring arrangement can be difficult, because a business must either switchchange to another factor or buy back its sales ledger from the factor. This will cost money and in short will result in more debtors and the risk of a shortfall in cash flow and liquidity.

Invoice Factoring forms part of the Asset Based lending sector of commercial finance along with Asset Refinance and leasing. For more information please contact