close

September 2021

Finance

What Are the Top-Most Creative Capital Solutions in the Finance Industry?

by Roberts Sam on

The right capital investment is the backbone of each and every business. Without the support of working capital, none can sustainably manage the cash flow, cost reduction, risk reduction, etc. This is why it’s really important to follow the most creative capital solutions which will be functioning just right for a small company. Small or big every business has a different financial situation and so an organization should adopt capital solutions depending on its strategies and programs.

Key goals of capital management

 

  1. An efficient capital solution is crucial for maintaining smooth operations and improving the profitability of a business.
  2. Creative capital solutions play a vital role in managing different company activities including debt management, inventory management, revenue collection, and much more.
  3. This method also identifies the areas which need more attention to maintain profitability and liquidity.
  4. Working capital management is essential for every business. This ensures that the business has enough liquidity to meet its short-term obligations.
  5. A capital solution maximizes the return on current asset investments by covering unexpected costs.

This article will focus on the top five capital management solutions that will maximize cash flow.

  1. Days Sales Outstanding (DSO): It is the average measurement of a business’ debtor exposure. The DSO helps in measuring the level of outstanding revenue at the end of a month based on the number of days sales/revenue represented by accounts receivable balance. This method is useful in detecting the gap between DSO and BPDSO.
  2. Days Inventory Outstanding (DIO): This is the financial and operational measurement that expresses the average number of days that the company takes to sell its inventory.
  3. Electronic Invoicing: This is one of the most creative capital solutions that can help a company to achieve working capital benefits. The streamlining of the invoicing process automatically minimizes the risk of errors, making sure the consumers are receiving it as soon as possible.
  4. Supply chain finance: For the buyers, it’s also popular as reverse factoring which enables them to offer early payment to the supplier through third-party funders. The supplier can boost the level of DSO due to the early payment at a low cost of funding.
  5. Flexible funding: The working capital providers also offer flexible funding that will help a buyer to move smoothly between supply chain finance and dynamic discounting models. It is effective for a risk-free return on the excess cash of a buyer.

Conclusion

These were some of the most creative capital solutions that are being used by businesses worldwide. There are too many capital partners who help the clients to determine the best strategy to access new sources of capital more efficiently that deliver enterprise goals. The capital advisory experts have unique knowledge of the insurance marketplace that effectively enables the clients to maximize their returns. So, stabilize the cash flow with the use of working capital solutions and meet the growth plans.

read more
Insurance

How to Buy a Term Insurance Plan Online?

by Roberts Sam on

A term life insurance is a pure protection plan that provides financial assistance to the beneficiary in case of an unfortunate circumstance to the insured.

Since there is no maturity benefit for a term life insurance plan, do not consider it as an investment. Your family will be in safe hands; if something ever happens to you during the policy term, the plan coverage will financially support them.

We like things that are easy, fast, and reliable. So, when we think of the complicated process and formalities related to opening a term life insurance account, we may feel a little lazy. Besides, it may make us feel a little shaky.

The digital advancement of the 21st century means that you can do almost everything online now. You can buy even term life insurance plans online in a few easy steps.

Why Should You Buy a Term Plan?

We all know that if you survive the term plan policy’s tenure, you will not receive a maturity or survival benefit. Then why should you buy a term plan?

Term insurance benefits are plenty. These reasons are:

  • Low premium: Term life insurance is a pure protection plan. It is not considered an investment vehicle. As its sole purpose is protection, the premium amount is very low. You can get a ₹1 crore term life insurance policy under a premium of ₹7,500 per year.

If you want higher or lower coverage, simply use a digital term insurance premium calculator to determine the coverage and premium that fits your budget.

  • Financial security: You might have a responsibility towards your dependents. A term life insurance plan of, say, ₹1 crore will provide financial assistance and take care of your family in case of unforeseen circumstances.
  • Flexible: You can change the term insurance plan as per your need. You can either increase or decrease the coverage and add riders, or added benefits, like severe illness coverage. Hence, they are flexible.

How Can You Buy Term Insurance Plan Online?

While considering term insurance can be daunting, purchasing it has become easy. Earlier, our parents used to stand in a queue for hours to deposit term insurance premiums. Now, you can take the plunge and complete the process in minutes without waiting.

This is how you can buy a term insurance plan online.

  • Visit a reliable term life insurance provider’s website. It will have several term insurance products on display. Find the section that deals with term life insurance. Once you have entered this segment, click on the “Buy Online” tab.
  • You will now be directed to the online buying portal. Here, you will see a digital term insurance premium calculator. Your term insurance premium will depend on the sum assured and your age as the insurer.

Once you fill in your age and the sum you want to assure, the term insurance premium calculator will show the premium amount that you must pay to buy the insurance.

  • Next, you will have to submit your documents. The documents generally required are income proof, address proof, identity proof, etc.

Submit scanned copies of all the documents. Some insurance providers may ask you to hold the original document and stand in front of your webcam for validation.

  • A medical test is not mandatory in the case of all term life insurance policies. However, if you select a high assured sum, a medical test can be mandatory. You will have to do a complete body check-up and submit the results.
  • The term insurance premium amount will depend on your age and health. If you are a non-smoker and teetotaller, it will get reduced. Once you submit your health report, the insurer will finalise your term insurance premium amount.
  • Next, choose your preferred payment option – you can use debit or credit cards, UPI, other digital payment options, etc.
  • Once the payment is complete, you will receive a payment acknowledgement from the term life insurance company.
  • However, the approval from the underwriters usually takes a few days or weeks. Once they evaluate the risks involved and finally approve your application, the term life insurance company will revert.
  • The insurer will email you a soft copy of the policy document. The same will be available under your profile when you log onto the insurance company’s website.

Conclusion

Before you zero in on a term life insurance policy, research plans that will best suit your priorities. Get an estimate of how the premium will fit within your budget, using a term insurance premium calculator.

The internet is not just a mere provider of information now. It has become a key distribution channel for crucial services like financial planning, retirement planning and insurance. We are depending less on brokers today as the internet ensures a transparent, fast, and effective mode of insurance delivery. Detaching from brokers has helped insurance companies to provide discounts on policies sold online.

read more