Credit Unions Banking On Bills To Lift Small Business Lending

“I tried all of the big banks, literally all of them, and was shocked and surprised that I got turned down,” said McCarthy, who purchased four Baskin Robbins stores in his area this spring with a $300,000 loan from Mountain America Credit Union in Salt Lake City, Utah. “The big banks didn’t want to lend a little money; they wanted to lend a lot of money.”

Commercial bank loans of less than $1 million have fallen by more than 14 percent compared with 2008 levels, according to Federal Deposit Insurance Corp data.

Meanwhile, credit union business lending jumped 22 percent from 2008 through the end of 2011 to $39.1 billion, according to the National Credit Union Administration, which regulates credit unions.

Nevertheless, business loans represent only 4 percent of total credit union assets of roughly $1 trillion through March, and many credit unions would like to do more.

But some individual credit unions cannot — they are nearing their legal limit. A 1998 cap restricts credit unions from lending more than 12.25 percent of their
assets.

Credit unions have lobbied for more than a year to get Congress to raise the lid, but opposition from the banking industry has stalled proposed legislation. Credit unions are now focusing on legislation introduced this spring by U.S. Sen. Mark Udall, a Colorado Democrat, that would increase the lid to 27.5 percent of assets and has a better chance of passing. Senate Democratic leader Harry Reid has said the Senate would vote on a bill this session in what is expected to be a very close decision.

The American Bankers Association and others have lobbied against the change. The ABA says credit unions lack the institutional resources needed to do more commercial lending. Additionally, the tax-free status of credit unions gives them an unfair competitive advantage over banks. Credit unions operate as democratically controlled cooperative institutions, serving only their members, on a not-for-profit basis.

“Credit unions have a mission identified by Congress to serve people, primarily consumers, especially those of modest means,” said Keith Leggett, an economist with the ABA. “Expansion of the cap would represent a fundamental shift or change in the credit union charter.”

Leggett concedes the recession and weak economy have hurt the balance sheet of many small businesses, making it difficult for some to borrow from banks. Current lower interest rates have added to the challenge of banks’ ability to make small business loans, he said.

“However, we’re in a relationship business that goes beyond just a loan to other products,” Leggett said, adding, “banks are making loans to every credit-worthy customer they can find.”

While several credit unions suffered significant losses from bad business loans in recent years, Debbie Matz, chairman of the National Credit Union Administration, calls the cap “arbitrary.”

“Credit unions tend to make very small business loans,” she said. “Generally banks don’t even make a loan that small,” she said, noting the average credit union business loan is about $230,000. “They’re filling a very important need to for small businesses.”

Those charged with finding new sources of capital for small businesses say anything that creates more financing options cannot be bad.

“I strongly believe that if credit unions are given a little bit more leeway, the overall small business lending environment in the country will improve,

directly and indirectly,” said Rohit Arora, CEO of Biz2Credit, an online service that has helped McCarthy and other small business owners arrange financing from a variety of sources.

Not every credit union is active in small business lending. In fact, only about one-third of federally insured credit unions have commercial lending programs,
according to NCUA data from the end of 2011. Many offer loans backed by the Small Business Administration. Business owners seeking commercial loans should inquire whether a program is offered at their local credit union.

“In certain instances I think it is easier to get loans from a credit union as opposed to a bank,” said Steven Parker, the co-owner of an upscale dog boarding business, K-9 Resorts Daycare & Luxury Hotel in Fanwood, New Jersey.

Parker and his brother secured a credit union loan of $180,000 from Financial Resources Federal Credit Union in 2010 for working capital. They are now scouting out credit unions that can help finance new operators interested in franchising their business.

Features Of Medical Insurance Policy

Over the last few years the structure of a health insurance plan has become more customers friendly and has evolved on various dimensions. Medical insurance policy has become a necessity in today’s era of sky rocketing medical expenses. If you don’t own a medical plan you might just end up paying a huge amount of money burning your pocket. Knowing the importance of health insurance it is necessary to buy an insurance which is fully equipped and packed with features. When you invest in health cover you invest for the wellbeing of you and your family. Your medical insurance doesn’t only see to it that you get medical treatments but you get the best treatments so you get peace of mind. Uncertainty and sudden situation or accidents can shatter a person emotionally in this period if he is not financially strong he may suffer a lot.

Here are a few features your medical insurance policy has to have to insure your and your family’s safety.

As per the IRDAI regulations it is necessary to provide health plan till the age of 65 years. Lifetime renewability will be availed even if there is a claim made in the past year.

Pre-existing illnesses are those which are prevailing when you opt for a health plan. Therefore, you should look for a health plan which covers your existing illness and also has the least number of waiting period. Less waiting period won’t allow you to wait for a longer period to make your claims.

Co payment also exists in a medical plan that requires cost sharing by the policy holders. It is the specified percentage of the admissible claim amount. Hence, one should ideally opt for a plan which doesn’t have co payment clause at any stage in the life.

Always check for the network hospitals, they are the hospitals with which the insurance companies have tie-ups. So when you claim for any illness you can opt for cashless facility. Here you don’t need to pay any money the insurer settles your bill with the hospital and you don’t have to file for any sort of reimbursement. Always look for a medical insurance policy which has network with maximum hospitals and the hospitals should also provide good medical treatment

If you haven’t made any claim in the past few years, the company will provide no claim bonus. This will help you lower your premium costs in the next renewal policy. Hence, always look for a policy which provides you the highest no claim bonus

Once you buy an insurance plan you might feel relieved but always look for the exclusion section and read it carefully. Because there might be problems and you might be denied claim at times. So before buying health insurance read the exclusion section carefully and go for the policy which has least number of exclusions and are clearly defined. Hence, it is necessary to have an adequate health coverage which can manage financial emergencies better. Buying an optimal medical insurance policy becomes an exercise for financial planning.

Different Premium Payment Modes Available In Life Insurance

Affordable premiums are definitely one of the most important features of an insurance plan, however it should also have a balanced share of benefits to offer as well. Here in this article we discuss the basic types of premiums and some of the common modes of payments available with the life insurance plans in market.

Types of life insurance premiums:

There are basically two types of premium payments namely single premium and regular premiums. At the time of opting for the plan, every policyholder would be explained in brief by the insurance agent or company about these two terms in particular. These two types of premiums are determined by the quantum of payment and the frequency decided by the person insured. Single premiums require a lump sum payment to be made by the insured at the time of entry while in regular premiums, he/she will be required to makes payments on a monthly, quarterly, half-yearly, or yearly basis. Both single premium and regular premium plans have their own benefits, yet the former proves to be more efficient when considering the total cost involved. The below example illustrates the basic difference between the two types of premiums.

A 32 year old woman pays a yearly premium of Rs.13,000 for 10 years on her life insurance policy, that offers survival benefits of Rs.2,00,000 on maturity. Going by this mode of payment, she will pay a total amount of Rs.1,30,000 by the end of the term period. However, the same plan comes with an option for single premium whereby a person is required to pay a lump sum amount of Rs.90,000 at the time of enrollment. In the second instance, the person insured can save up to Rs.40,000 on premiums. Taking into account the time value of money and rate of inflation, lump sum payments can often supersede the benefits of regular premiums. But again, making payments in one go may not be feasible for many customers and it is finally on their part to choose the type of payment after evaluating budgetary requirements. Therefore, make sure that you opt for the single premium mode only if you can afford the same without straining your finances.

Premium paying frequency:

Under regular premium mode, policyholders are required to pay premiums throughout the term period, while for some policies, the premium term is less than the policy term. For example, if your purchase a policy that offers life insurance coverage for 10 years, you can either choose to pay the premium for the entire length of the plan or choose a reduced payment term of 7 or 8 years. As a general rule of thumb, the number of installments is directly proportional to the sum insured, ie.,higher the sum insured more the number of installments. Once you have chosen the regular payment option, you then need to decide the frequency of premium payments which is either monthly, quarterly, semi-annually, or annually. Your premium payment term is also linked to the surrender value of the policy. Generally, a life insurance plan acquires surrender value after completion of 2 premium years. So in case you surrender your policy after the first year, you will not be eligible for the same.

Different method of paying your insurance premiums:

Gone are the days when one had to wait in long queues at the branch counters to deposit life insurance premiums. Going in line with the digital advancements of today, even insurance companies have launched apps and web platforms to offer a comprehensive range of services online. Given below are some of the most common methods of insurance premium payments:

Insurance agents – An insurance agent visiting your home to collect premiums was a common scene in early days, when private companies had only started to secure a foothold in the Indian insurance industry. Even with the changed times and latest digital enhancements, you can always get in touch with a collection agent of your insurer to come and collect your payments.

Mobile wallets – Post demonetization, the importance of mobile payments have increased so rapidly that a number of e-wallet companies have entered the market within a short span. The e-wallets offer a lot of facilities ranging from booking a ticket to paying off your monthly bills. Some of the mobile wallets have linked up with the insurance companies to facilitate fast and convenient premium payments for policyholders.

Online payments – As already mentioned, you can simply login to the insurer’s website and pay your premiums through internet banking, credit cards, or debit cards

Standing instruction on credit card – You can give a standing instruction to your insurance company to deduct the premium amount on your behalf. You just have to submit an application for the same along with the details of your credit card.

Electronic Clearing System – It’s an automated system of payment where the premium amount gets deducted from the bank account of the customer on due date. You can register for this service by filling out the ECS mandate form and submitting it along with other relevant details to the concerned branch of your insurance company.

Best Cms Selection For Your Website

The Best IT Companies in Ahmedabad we have a tendency to visit several websites in standard of living for a few official or personal work, however what if on regular basis we discover that the knowledge, the content, the news, shopping, even the merchandise and also the services etc square measure precisely the same as earlier, it’s not been updated from an extended amount. Some wherever you may get away and wouldn’t just like the same web site the maximum amount as earlier, as a result of we have a tendency to all expect for one thing new one thing further after you visit that web site once more.

The web sites owner / webmaster ought to keep these items in mind and do take a correct management that their web site is updated on regular basis and for this they might would like content management system or CMS website development services.

Content management system or CMS are a few things that provides you to update, upgrade and even modification the content on your website’s pages with clean minimum effort and while not even having deep technical education or expertise. The Best IT Companies in Ahmedabad the most effective effect of content management system (CMS) is that guests or shoppers get the sensation of being privileged and that they appreciate that you just square measure creating efforts to stay your web site frequently updated with all info in it.

You must be thinking this list is extremely long and you as a business owner aren’t capable along with your technical data to try to to it yourself, thence you wish to require facilitate of CMS web site development Companies for implementation. In gift days, there square measure plenty of net style and net development Companies round the world UN agency will offer you such services.

There isn’thing to require tension concerning if you are doing not have time and skills to finish it yourself then you need to leave it to the consultants and fee is not terribly expensive for one thing really easy like this. However, to make a decision that content management system is that the best for you for this you wish facilitate of consultants of a corporation. Actually, it depends on the kind of services that you just wish to supply.

The Best IT Companies in Ahmedabad the principally used CMS square measure Blogger and WordPress for currently. Blogger is sweet for people who created web site to appear sort of a web log whereas WordPress may be a powerful because it is flexible and comes with sturdy community backing of developers. several businesses value more highly to use WordPress and Blogger, as they’re the most effective CMS selection.

Another CMS is Joomla that’s obtainable freed from value system. the {sole} main reason why Joomla may be a very little a lot of complicated than WordPress and Blogger to put in and use so it’s not a lot of most popular. However, it’s sturdy developer community support from the creators. There square measure several alternative CMS obtainable within the market. If you would like to appear a whole listing of CMS obtainable, you’ll search on Google, Yahoo or Bing. Before selecting a CMS for you web site, you ought to see your net host what platform your server has this can create your selection good.