April 2019


What is Ethereum? Know the difference between Bitcoins and Ethereum

The world around us is constantly upgrading and changing for the better. The advancement in technology has helped mankind to grow and develop in various sectors. The conventional process of conducting business has also evolved as people now initiate and close transactions by using various digital platforms.

The global financial market also experienced a revolutionary change with the introduction of Bitcoins in 2008. Ethereum, on the other hand, holds a similar concept to Bitcoins but still is different in many ways. It is an entirely different blockchain technology which in fact came into existence from the idea of Bitcoins.

To begin with, Ethereum has its own currency which goes by the name of Ether which is gaining a lot of popularity in the present market. The cryptocurrency is listed as ETH on various crypto exchange platforms. Ethereum is managed by a group of individuals who operate under the creator of Ethereum, Vitalik Buterin. Coins are released on Bitcoins through mining. On the other hand, the digital currency of Ethereum works on ICO [Initial Coin Offering] system. Due to the sudden rise in the demand of this cryptocurrency, people are trying to avail free Ethereum so that the benefits of this blockchain can be utilized to the maximum.When it comes to processing transactions, Ethereum is faster and effective than Bitcoins as it can process close to 15 transactions per second, whereas Bitcoins can only manage up to 2-3 transaction within the allotted time. The average time taken to formulate a block in Bitcoins typically takes around 10 minutes. Ethereum takes a much shorter time to create a block within the blockchain as it requires only 10-15 seconds to process it.

Ethereum also has various other applications connected with it, namely Smart Contracts, Smart Property and DAO [Decentralized Automation Organization]. The introduction of these applications has helped to increase the overall popularity of Ethereum. With Smart Contracts, individuals can process all the necessary information on the concerned blockchain which remains completely secure as it cannot be manipulated by a third party. With the incorporation of DAO, the decisions of a concerned firm now could be made on an electronic basis with the help of various computer codes, which are supervised by the members of the concerned firm.

These are some of the features and benefits of using Ethereum which have also contributed significantly to elevating the demand of the concerned blockchain system.

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Steps On How To Find The Right Lender For Your Business

The business industry is one of the most competitive ones. More and more business are starting up every single day from every corner of the world, but the big question is where do they get their funds? While starting a business, one of the most challenging phases is getting funds to jumpstart the projects. However, today with the many options available, entrepreneurs can source for funds from several places. For example, from family and friends, angel investors, personal savings, as well as bank loans.

Bank loans are among one of the most commonly used sources of financing for business. That is why we outlined the steps to finding the right lender for your business below:

  1. Do Your Research

With many banks in the market today offering the same services, one is bound to get confused on which one to choose. That’s where the researching aspect comes in. You need to do your due diligence. Get on the bank’s websites and find out the types of loans they offer their customers. The types of loans offered by banks vary by location, which is why it is necessary to find the  bank that offers a loan that suits your business needs.

  1. Get Referrals and Read Reviews

There are thousands of other businesses and entrepreneurs who have also needed to receive financial loans. Whether they are a friend or colleague, or just someone who left a review on the internet, you can learn from there. Many of those you talk to will not only give you the name of the banks, but may also tell you more about their experience with the bank. Additionally, after getting the referrals, go ahead and check the websites of the referred-to banks, if the ratings are high, then that could just be the right bank for you.

  1. Weigh Your Options

After getting a list of the banks you can approach through the referrals and reviews, it is now time to weigh your options. At this point, you will need to do the math. Firstly, go back to the research you had done in the first step and identify if the bank that meets your financial needs accordingly. Secondly, you need to know the exact business payment options that the bank offers. This is because it allows you to plan on how you will pay the loan off in time. Keep in mind that there are interest rates; choose a bank that offers relatively low interest rates.

  1. Approach Your Match Lender

At this point, you probably have a list of about 3 to 4 banks that match your financial needs. If the bank is within close proximity, you can head over to their offices and get to inquire more about the loan and find out if you are eligible for it. Do this for all the banks on your list before choosing one. In cases where the bank is not nearby, give them a call and inquire about the same information. Fortunately, today we also have access to mobile banking.

Once you have completed all of these steps, you will have a clearer picture of whom the right lender off their interest rates, fees, and reputation. With all of this information, you can have peace of mind when choosing the right lender for you.

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Personal Loan and Equity Investment

For the moments when time might not be in favor of you, personal loans are the source of finance that helps you maintain a stable financial condition. Whether it is planning the vacation of your dreams or paying the down payment of the house you have been looking for from a long time, these loans are the right choice when it comes to management of funds.

A personal loan can be both, secured and unsecured. The end use of the loan is not exposed to the lender while taking out the loan. In case of unsecured personal loans, the interest rate to be paid by the borrower is higher than that of the secured ones. Even though the rate of interest is highly influenced by the credit score and income of the borrower, an unsecured personal loan cost 15% to 25% of approximate interest rate from the borrowers.

Personal loans are highly beneficial when it comes to fulfilling your need. However, the problem starts to form its shape when people start borrowing these types of loans in order to make investments like equity investments. Personal Loan and equity investment cannot go hand in hand. If you are someone who is planning for the same, then it is time to think again.

Due to the evolving market condition, it is not a beneficial thought to make investment using a personal loan. The rising rate of inflation is one of the biggest reasons for the same. The numbers that were last posted ranged above 12%. Due to the growth of GDP at around 8% to 9%, the economy is expected to see a negative growth in the current fiscal.

By increasing the Cash Reserve Ratio by 50 basis points the Reserve Bank of India has tried to tighten the liquidity situation. In order to keep a track of the inflation numbers, the bank is expected to increase basis points by another 50 to 100 basis points.

Using personal loan for investment can make the situation worse if the loan taken out by you is on a floating interest rate. There are chances that you might even lose the money that you have invested in the equity market. In addition, you might also have to pay more amount of money against your loan. Both of the situations can get really difficult for you.

If you are looking forward to invest into equity markets, an easy and risk free way to do the same can be through the way of arbitrage. This means that you buy in the cash market through the loan amount and sell it in the derivative market. This way you get the price higher than the price at what you bought including the amount of the rate of interest.

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What is Accounts Receivable Factoring?

 Factoring accounts receivable is a business transaction in the form of person management in which the business sells its invoices to the third party (called the factor) at a discount. The business can sometimes calculate its receivable assets to meet it’s present and direct payment needs. It might also calculate their accounts to decrease credit risk. Factoring is usually referred to as reports receivable factoring, bill factoring and sometimes mistakenly accounts receivable finance.

The Three Components

There are three companies immediately affected: The one who buys the receivable, the one who sells the receivable, and the person who owns the business obligation that involves them to make payment in regards to the invoice. This receivable, commonly associated with the account for business performed or goods sold, is basically a business asset that makes the person of the receivable the legitimate position to take money from the debtor who has an obligation to pay an invoice for service. The merchant sells the assets at the discount to the third party, the special business organization (aka this factor) to get paid. This knowledge is used in production department in the industry when the direct demand for raw material outweighs their free payment and power to get “ on account ”. Both accounts discounting and factoring is used by B2B companies to ensure they get the direct income needed to fulfill their actual and present obligations.

Trading of Assets

If we discuss accounts receivable factoring, in the simplest terms, it means trading of the assets in the discount to the factoring corporation. It is also called this accounts receivable finance or accounts receivable support. The factoring corporation providing this money to the corporation charges just the nominal fee for the transaction but manages the collections of the account’s assets that have sold to them. This charged interest only depends upon the factoring corporation that the company selects. The less the time it gets to get the invoice paid, the smaller would take the factoring interest. Thus, the companies that have customers who give these invoices promptly and quickly, are committed the fee as little as 1 percent. Factoring is the language frequently wrongly used synonymously with accounts receivable finance. In EU, this period “ factoring ” has turned into the term for accounts receivable finance as a summary; but in the USA, the period relates to the specialized kind of financing that involves the actual transfer of the ownership of the receivable to the lender, more accurately known as American factoring. Factoring is a business transaction whereby the business sells its accounts receivable (i.e., accounts) in the discount. Factoring differs from the bank loan in three important ways. Forward, factoring is not the debt but the acquisition of the asset (the receivable ).

Bill Factoring

Accounts receivable factoring, a.k.a. Bill factoring or bill finance, is a method that allows business owners to rapidly move invoices into working capital. Instead of waiting for weeks or months for clients to pay their invoices, accounts receivable finance allows business owners to take the amount on those accounts and take that payment for pressing business needs. It’s especially ideal for jobs that take longer net policies but have ongoing operating expenses or current expenses that help motivate growth. Factoring accounts receivable-selling accounts receivables for the fee may be a useful source of immediate payment for developing corporations. Factoring, converting accounts receivable into payment by selling them to the finance business for the fee, may play a vital role in business. At factoring, after that business person sells some or all of the organization’s accounts receivable to the cause, this finance corporation typically advances 50 to 80% of the face value of the invoices. This factor accepts the probability and responsibilities of making a collection.


The company may give some huge selling to separate retailers on the account, debiting Accounts Receivable and crediting marketing Revenue. The company might then sell these accounts receivable to another sector, called the cause. This factor earns income by paying the discounted price for the receivable and so hopefully collecting the whole quantity from the customer. The payment to the company selling these assets is the direct receipt of payment. The biggest disadvantage of factoring is that it is much rather costly when compared to the costs of keeping the receivable on those volumes and finally collecting the entire quantity.

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Basic bookkeeping and accounting guide

Bookkeeping is the core of any business, be it large or small. In a business, you have to deal with money and lots of it. Not having the appropriate to manage them can be troubling in the long run.

For instance, when you’re filing for income tax, you will need to present all your expenses over the year. The same thing applies when you’re getting audited. Maintaining the paperwork is as important as running your business.

Of course, it isn’t easy to do all this by yourself. Small to medium size businesses owners think it’s easy to maintain a record. However, as the business grows and work starts piling up, it becomes almost impossible to handle all that workload. Hiring an accountant should be a top priority in such situations and the accountants in Oakville are just perfect for the job.

When hiring an accountant, make sure they are a perfectionist and a stickler for completeness. They should be adept at both accounting and bookkeeping (often confused to be the same).

Basic Bookkeeping

Bookkeeping means keeping a daily record of your company’s financial transactions. Bank transactions, expenses, sales all go down on the record. What you need to realize is that this ledger is the pivot of your company’s finances.The complexity of bookkeeping depends on the size of your business and daily transactions.

There are two bookkeeping methods, single-entry and double-entry. Usually, businesses opt for the double-entry system, where every transaction requires two entries in two different accounts, one being the debit (Cash) account and the other the credit (Revenue) account.

Nowadays, most bookkeeping is handled by computer software. This is just the basics and will give an idea regarding the whole process.

Basic Accounting

Accounting, also known as the language of business, is a process by which you can measure, process and communicate financial information across your company. Accounting helps you gather information on your resources, how they are being handled and financed and finally the results they yield through use.

The accountants in Oakville is like a supervisor who overseesthe functioning of your company and helps you manage the cash flow.

They do so by:

  • Creating a record of all financial transactions of your company
  • Interpreting the data collected by the booker and determining how it will affect your business in the days to come
  • Presenting the present financial structure of the company and ways it can be improved and optimized
  • Preparing tax returns and helping out during audits
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How to Choose a Financial Planner

In order to make the most out of their money and a person should consult the services of a financial planner. The financial planner can help a person find a way to invest their money or put their money in savings with the largest return. A plano financial planner can help a person make their money work for them. There are some tips on how to choose a good financial planner.

Type of Advisor

There are different types of financial planner based on the needs of the client. There are also different ways that they get paid.

Commission Based

These advisors are often brokers, insurance agents, and another registered representative. They will help a person with mutual funds, annuities, and insurance. They often work for large financial firms. These professionals make money off of the projects that they sell. Keep this in mind when looking at their financial products.


This type of financial planner can help with asset management. They will find products that will fit the needs of each client. They charge an hourly rate or a specific percentage of the total assets they are in charge of. Some of the products that they work with include estate planning, retirement savings, investments, and education and insurance planning.

Determine Needs

There are some people that only have some questions that they want to be answered while others will need complete asset management. This will help a person make the decision based on what type of financial planner to work with.


When looking for a financial advisor there are some licenses and certifications that a person should look for. Some common certifications include CFP, CPA, CFA and the certified financial planner. These are usually the certifications to look out for. In order to get the certification, the advisor has to have years of experience, take continuing education courses, and take an exam. Once they have achieved the certification they must follow all the standards to keep up with it.


The financial advisor needs to follow specific ethical and legal guidelines in order to keep their certification. There are ways to find out if the financial planner has been the subject of criminal investigations or if they are any actions taken against them. A person should ask for their advisor for their ADV or they can search the Investment Adviser Search website.


When looking for a financial planner a person should find one with experience and that has been working in the field for some time. They also need to meet the educational qualifications and experience working with real-life financial situations.

Trusting Relationship

A person needs to find a financial planner that they will be able to trust. They are going to be sharing very intimate details with the planner about their money and estate. A person needs to be able to trust anyone that is dealing with their finances. Most financial planner will offer a free consolation to meet with a potential client. This way a person can get a feel for the planner and see if they feel comfortable around this person. A person can meet with several planners before making their selection on who they are going to trust with their money.

These are some things that a person should look for when they are hiring a financial planner. It is important to find a financial planner that will best fit their needs and has the education and experience to be trusted with money.

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