Log in

No account? Create an account


Axis Capital Group Business Funding

Axis Capital Business Funding Review, How to Avoid Debts
Axis Capital Business Funding Review: How to Avoid Debts

Jakarta, Indonesia - Being a small business owner is hard. The responsibility of keeping your company stable, managing your employees, and keeping up with your competitors are hard enough to tackle. Dealing with your customers is another thing and perhaps the most challenging. Since you are just a start up, clients are important since they can give either good or bad review about your company that can greatly impact your business. If you are still not experiencing some kind of issue with your customers, it is better for you be prepared than be sorry later on. To prevent being drowned in debts, you can review the following steps:

1. Verify Customer’s Information

It is always better to verify anything first before plunging into a business deal. Just because you are in need of customer, it does not mean that you are to grab every possible sale. You also have to see their capability to pay especially if your services and/or products are on installment basis. It is also best to keep tabs with businesses of the same field. This way, you are able to know if a certain customer is in a habit of making non- or late payments.

2. Put Everything in Black and White

Documenting everything is vital in every transaction in case worse comes to worst. With the verified information including your client’s identity and their compliance and agreement, you can be rest assured that you are covered by that single piece of paper in case complaints would pour in or if needed for proof of fraud.

3. Draw up terms and conditions

Aside from the agreement in a written paper, you also have to have a foundation of your business regulations through a policy. These terms and conditions should be transparent to both parties. Any alterations, adjustments or changes can be done after the client have known and have been educated of the rule of the trade.

4. Keep open any communication

Any changes and alterations after the agreement and terms and conditions have been signed should be known by both parties. Or in case of unpaid charges, it may be that the customer had just forgotten. It is your right to follow up on them and their responsibility to give you active contact information.

5. Have a Plan B

Many businesses experience customers who – for one reason or another – may have delayed payments. You could consider putting the customer’s credit facility on hold preventing any further credit sales until the account is cleared or find any other alternative to resolve the issue. 

Small Business Loans Options
We are often confused between loan and debts. For common people, it may be the same. However, for businesses, it is completely different. See, when an individual want to set up a business and does not have enough money to finance it, he would ask for a loan. On the other hand, a debt is described as borrowing money for any other purposes. Besides, it makes it less embarrassing when you are tagged as someone having ample amounts of loan other than someone who has a lot of debts.

Axis Capital Business Funding, credit source for small business owners in the United States, had summarized solutions to assist entrepreneurs in acquiring financial assistance to start and maintain a business. This article is centered on loan options and what you need to qualify.

Before getting into the business proper, you should have already considered the following factors:

Time In Business
Personal Credit Scores
Business Revenues/profits
Collateral, if you have any to back up the loan

Generally, basic rule in business indicates that the longer you are in the business industry, the more you have collateral in possession and the lower your interest will be. However, this rule does not apply to all especially to start ups.

The financing option that can be open to you also depends on the urgency of need, the nature of the business, the location and on how you are going to be paid whether through invoices, credit cards, cash or any other means.

Loans are mostly backed up by banks and can allow you to loan between $5 thousand to $5 million. Certain qualifications, however, are required. Minimum business experience should be 2 years in the United States. This rule is stricter to that of developing cities Singapore, Hong Kong, Jakarta, Indonesia and Kuala Lumpur, Malaysia since bank rules follow stricter and detailed protocols. You may also need to create a detailed proposal and feasible report. The process may even last for weeks to month before approval since most bank conduct strenuous reviews, charges or complaints against you or any other loan records.

Credit score is also a vital factor in bank loans. Your digits should not be less than 600. For independent loan companies, however, credit scores is a requirement but no exact cap is being implemented. You can also loan short-term assistance which can be paid back within 2-3 months and borrow up to $250,000. This is most suitable for owners with lower credit scores. 

How to Find a New Business to Invest In
Startup investing can be challenging in a way if you do not know which business to venture into. A lot of individuals have been carelessly getting into businesses when any opportunity shows only to realize in the end that they have been scammed.

We all have that same fear within us. Getting into a business and risking ample amount of money, time and effort is not something one can easily get into and get out of once it fails. There are millions of businesses worldwide and with each- not counting the fraudulent ones- we do not know which would succeed. Yet, as many experts and professionals say, risks are and will always be a part of entrepreneurial life. Any investment, if pursued diligently, doubles a capital. Although challenging, many investors have been able to surpass.

Axis Capital Business Funding, one of the leading sources of credit loan for small business owners across the United States has the privilege to interview some of the most successful business owners and investors for some tips on how to find the most suitable business to invest into:

Explore in a Familiar Ground

If you are just starting to invest, it is best to put your bet into something which is already comfortable to you. This way, you can reduce the risk since you are already wading into a familiar wave. The ins and outs that you know of the business can provide you with a good projection on what to expect and assuring your venture.

Research and Review the Legitimacy of the Company

Before showing up at the door and offering them your ideas and willingness to invest, make sure you know the real nature of the business, the number of years of operation and the people behind it. As quoted from a finance investor in Jakarta, Indonesia, “investing is like going into a boxing match. You have to know things about your opponent: learn their moves and know how to knock them down”. Although investment is not a bloody fight just like boxing is and the company is not an opponent but more of an opportunity, being informed and educated about them can be very beneficial.

Examine the way of the market

It is absolutely critical to see what competition the startup has and what kind of competitive advantage they have been able to put in place in order to beat everyone else in the race. The competition could acquire the startup instead of cloning their work, so investigating the appetite in the market could be beneficial.

Axis Capital Business Finding Review: Realities of Business and Economics for Startups
Axis Capital Group Business Funding - When we are thinking of successful enterprises, the first thing that comes to mind is the big companies like Google, Nestle, Goodyear, Apple etcetera. We instantly inspire ourselves to follow their lead. What new entrepreneurs do not actually understand is that these companies have been in the industry for a long time, sometimes, experiencing more downfall than we could imagine.

We recognize the penetration of small businesses in today’s market but we are often unaware of the struggles they go through to integrate their service and products to follow the demands of the complicated customers. What these entrepreneurs often thought of as a smooth flow after surpassing pre-business stage to the first two years is a reality of continuous challenges and hindrances that should be defeated even in the long run.

Analysts estimate the time needed to create visible revenue would only be after five years. Some small business startups do not have the perseverance and resources to withstand for that long time. Those who manage can even barely get through and maintain.

It gets more challenging in developing countries where competition is fierce and the market is elusive. Most of the time, external forces affect economic sustainability of a business. The changes of government regulations, complaints and lawsuits, constant evolution of new technology and global recession can hit any startup companies.

Jake had just started his business of clothing retail in northern Jakarta in Indonesia when the recession hit the world in 2008. Moreover, clothing line and related business also started to boom, adding to the competition. With the expensive cost of branded clothing and the economic status affecting almost every household, customers tend to buy fraudulent designs from fly-by-night markets which also began increasing in Jakarta during that time. With a huge amount of debt and a family to feed, Jake had almost lost his mind. The imagination which he pictured would be perfect business stability with little challenges he could handle was like a bubble burst by the realities for startup companies.

Jake’s was only a small business using small capital. Imagine how it is for startups who invested big amount of money, loaned and in the expense of a house or a car. Since these challenges may seem severe, it is high time for new entrepreneurs to steel themselves for the inevitable potholes. Managing startup companies means not only managing expansion but also understanding how to manage downturns so as to increase the likelihood that the company will return to the growth path.

How to Plan a Business Event for Small Business Owners
54 small business owners attended the 3rd BtoB Convention held by Axis Capital Business Funding last September 15, 2015 at the Grand Indonesia Hotel, Jakarta.

At the end of the seminar, Kara Parker, event specialist, shared how she was approached by a young man in his early 20s who introduced himself as Kajar Serman, a small upcylcing business owner in North Jakarta. Kajar, as Kara later learned had been pursuing his unique passion for recycling unused stuff and making them into a whole new usable material since his college days. Now that he has already graduated, he is already able to loan small amount of capital from Axis and have rented a small shop in Kota. Later on, he was also able to get a small stand in Plaza Indonesia mall, a few blocks away from their house. He says that the business had been growing and managing it is a great challenge but like many small business owners, he is already happy with what he has achieved. He later confessed that he thought of holding a small event for small business owners like himself and is attending the convention to learn how to do it.

Just like Kajar, small business owners also dream of holding their own seminars and conventions. Not only does this expand your network but it is also a great source of new ideas and business strategies from competitors and other industries. It also comes with a few challenges.

Small business owners, compared to large businesses, have lower assurance of attendees and are operating in a tight budget. Yet, there are some ways to address these issues such as the following:

Know your objective

Have a concrete idea on the theme of your event and pattern your program on it. You have to have a specific idea on the possible overall outcome that you are targeting to keep you on the right track. Review all the probable topics related to the nature of your business and focus on the most impacting one.

Discuss the Budget

The planning of your event, no matter how grand it is, cannot be achieved if you are under budget. It also does not make any sense if you spend before you accounting all your expenses. It is important to keep the project on budget or you’ll end up with more complaints than gain.

Schedule the Event

Find some time which is mostly convenient for your guests. Pick a date which is not a busy one for your attendees. Research is the key
Be Confident

You are the expert in your business and treat the audience as students who need to learn from you. 

Axis Capital Funding: Improvement in Credit Scores
Since the global economic downfall in 2008 which caused many stocks to plummet and left many individuals in debts, the world has known its lesson. Thanks to the efforts of many people, nations are slowly regaining its former glory.

The country to be most affected is the United States of America. The great recession which started in December 2007 to June 2009 of almost 19 months has affected countries of as far Indonesia and Africa.

According to Axis Capital Business Funding Group, a source of credit loans for small business owners in USA, this downturn in economic activity served as a lesson for current trend in credit ratings of individuals.

As credit scores improve, the flow of credit to consumers will increase. In the first three months of 2015, credit card balances increased by over $20 billion and this trend is expected to accelerate. People are applying for more credit, and banks are more willing to lend.

In many cities, individual credit scores also increased in percentage as many people are becoming aware of its importance. In Jakarta, scams and fraudsters who greatly affect the city’s economy are slowly decreasing in number. In Singapore, certain limitations are being set for loans and cautious computation is being sought after.

After the crisis, we learned our lesson and went through a period of difficult de-leveraging and responsible budgeting. Banks also learned their lessons, and are now only making loans to creditworthy borrowers with stable jobs and good income. However, this convenient narrative ignores two simple facts. First, a big part of the de-leveraging resulted from banks writing off bad debt. And second, most negative information disappears from your credit report in 7 years, including home foreclosures. Even Chapter 7 bankruptcy, which is the ultimate negative mark, is gone after 10 years.

The Great Recession happened 7 years ago. Over the next few years, the negative marks of the Great Recession will disappear completely from the nation’s credit reports. Scores will increase. And banks will start lending to the same people, again.

When a bank makes a lending decision, it is based upon information available in credit reports. The credit scoring models can only use data available on credit reports. And almost all negative information is gone in 7 years. According to FICO, “it’s a common misconception that a foreclosure will ruin your score for a very long time. In fact, if you keep all of your other credit obligations in good standing, your FICO can rebound in as little as 2 years.”

Because most banks tightened credit after the 2008 crisis, it became almost impossible to get new credit. And, as a result, it became very difficult for people to borrow too much because the credit just wasn’t available. But now it is.

Our credit scoring system is built to have an automatic credit score jubilee. Mistakes and negative events in the past will be forgotten. Over time, our scores will improve so long as we don’t get drunk on credit too quickly.

Axis Capital Group Business Funding Jakarta Review: Credit Card Fraud
          Fraudsters are so advanced nowadays that they may be considered geniuses in their field, a true perception on what extent human beings can achieve in every nooks and crannies of today’s generation of advanced technology. Even those little cards that are considered one of the most important things in a person’s wallet can also be hacked.

Credit card frauds exist in every continent and are most rampant in developing nations. Because of the lack of policy implementation and lose punishment system by the authorities, scammers are hard to catch, sometimes, even doing their illegal practices in clear sight. These operations are known in the suburbs of Jakarta, Indonesia, Bangkok, Thailand and Cambodia; places which have the highest report of fraud for years.

Axis Capital Group Business Funding, a credit source for small business owners operating in America has listed some of the common types of credit card related fraud as a warning to individuals to be cautious:

1.     Application Fraud

The thieves will first steal is victims’ pertinent information before applying for a new credit card. Although banks try to safeguard themselves from this sort of fraud by requiring original substantiating documents, telephoning employers and so on, criminals have been known to forge documents and even give false telephone numbers.

2.     Manual or Electronic Credit Card Imprints

Data from a legitimate card is imprinted or the magnetic strip is skimmed. The information from the card is then later used for fraudulent transactions or for encoding fake cards.

3.     Lost and stolen card fraud

This is perhaps the most common type and occurs when your card is physically stolen or lost and then used by a criminal, posing as you, to make unauthorized charges on your account.

4.     Fake Cards

Producing fake cards takes a lot of time, effort and skill. There are many security features particularly difficult to reproduce, for example, holograms.

A fake card with fake numbers and a fake name is forged and used for transactions. The card is not linked to any real account and the credit card company is not liable to pay for the transactions as there is no user information.

5.     Card-not-present Fraud (Fraudulent Use of Card Details)

This crime involves using fraudulently obtained card details to make a purchase, usually over the telephone or on the Internet. A card, in a physical form, is not needed. Usually the details are taken from discarded receipts or copied down without the cardholder’s knowledge. As with counterfeit fraud, the legitimate cardholder may not be aware of the fraud until a statement is received.

Axis Capital Group Business Funding Jakarta Review: Facts and Fiction in your Credit Scores

Your credit score is a three-digit numerical representation of your credit-worthiness, or how likely you are to reliably pay back money you borrow. It may seem simple enough, but credit scores aren’t always intuitive. Even when you think you’re doing the right thing financially, you may be actually hurting your credit score.

When you are dealing with your credit scores and reports, make sure you bring an extra memory bank and understanding. Be cautious before bursting out any complaints. The things involved in it may be complicated. Also, try not to believe other people say about credit scores. Make sure you verify the information first.

Well, for a starter, here are some common fictions created about credit scores Axis Capital Business Funding, a direct source of credit loans for your business based in America and has now expanded to Jakarta, Indonesia, has prepared.

Fiction: The more money you make, the better your credit score will be.

Fact: Your income has nothing to do with your credit score. It’s not reported to the credit bureaus or listed on your credit report.

Fiction: Once you’ve paid a past-due debt, it will drop off of your credit report.

Fact: Late payments and other negative information remain on your credit report for seven years from the date of the initial late payment. Bankruptcies typically stick around for 10 years from the bankruptcy filing date. While that black mark may continue to soil your credit report, however, its effect on your credit score will lessen over time.

Fiction: Credit bureaus never make mistakes.

Fact: Now, this is one of the common misconceptions. Since credit reports generated by the three major credit-rating agencies are from a good system, many people do not review their credit report regularly. In truth, nearly 8 in 10 credit contain serious error or some sort of mistake, according to a survey by the U.S. Public Interest Research Groups. Because many errors can negatively impact your credit score, it’s important to check your credit report regularly and dispute any inaccuracies you find.

Fiction: Practicing a cash-only policy will help your credit score.

Fact: Having good credit is a function of having credit available to you and using it responsibly. If you don’t have or use credit, you may have no credit history at all and if you do, your credit score won’t be as good as someone who consistently demonstrates responsible use of credit over time.

For more reviews from Axis Capital Group Business Funding, visit our facebook page and follow us on twitter @acgfunding.

Credit Score Facts You Should Know on Axis Capital Group Business Funding Jakarta Review
An excellent and solid FICO credit history can help you a lot. It can save you tens and thousands of dollars in mortgage interest and lower you auto premium insurance among many things. However though, there are still a lot of mysteries clouding the credit world. Take time to review the following things Axis Capital Business Funding, a direct source of business funding based in America, has prepared for you:

1.       Equifax, TransUnion and Experian are the three major credit bureaus. Each of these tools tracks your information and how you use your credit. Based on the information, each credit bureau maintains FICO Credit Score for its consumer in its database. As a result, you have the credit reports from each bureau. The FICO credit score generated from each bureau and tends to vary significantly.

2.      Not everybody has a credit history. If you have never applied for and used credit, you will not have a credit history in three main bureaus. Without a credit history, you would not have a FICO credit score. And yes, the same rules apply to credit ratings in developing cities like Singapore, Jakarta, Indonesia and Kuala Lumpur, Malaysia.

3.      Many people have complaints that they cannot be approved of a loan because the result of their different is different from their scores. Take note: credit reports and scores are different. While your FICO credit score is generated based on information in your credit report, it’s important to understand the difference between the two. Your credit report shows your history of using credit, including the accounts you have (both opened and closed), your payment history, credit limits, and amounts owed. Your FICO credit score is generated based on this information, and generally ranges from a low of 300 to a high of 850.

4.      This is one of the major confusion of individuals: Not all credit scores are FICO scores. The FICO credit score is not the only credit scoring formula available. Each of the three major credit bureaus, for example, has developed their own scoring models. And there are even multiple FICO score calculations. The key is that if you want access to your FICO credit score, make sure the service you use will provide your FICO score, and not a credit score based on some other formula.

5.      Getting your report does not hurt your score: You can check your own credit report and score without affecting your FICO credit score. While inquiries by creditors with whom you have applied for credit can lower your score, checking your own score will have no effect on your credit file.

Axis Capital Group Business Funding Jakarta Review: How to Get Your Free Credit Report
To get a good deal of loan nowadays, a good credit score is needed. The only way to know your credit score is to check your credit report.
Not only will reviewing your credit report help you get an idea of what your credit score may be (you do have to pay for your actual credit score), it will also allow you to confirm that all the information is correct. One small mistake on your credit report could seriously affect your credit score and potentially cause your rates to skyrocket.

Axis Capital Business Funding Group, a capital source of loans for small businesses in over 10 states in America has listed ways on how you get your free credit report.

There is only one place to get your free, federally mandated credit reports, also called an “educational credit report,” which this is AnnualCreditReport.com. You are allowed a free credit report from the three major consumer reporting agencies in the U.S.: Experian, Equifax and TransUnion.
A warning is also set for business owners for a lot of advertisers and commercials who offers “free credit report”. Be aware that these companies will give you a free credit report and/or credit score initially, but they will also most likely also ask for your credit card number. If you don’t cancel within a certain time, they’ll charge you for membership.

Checking your credit report is called a soft inquiry, and you can check your credit as much as you want without it negatively affecting your credit score.

Keep in mind that while you’re entitled to a free credit report, you will have to pay for your FICO score, which is the most common credit score. You can go to FICO’s Web site, and your score will probably cost around $40. A situation in which you may want to buy your credit score is when you’re shopping for loans. Your credit score can affect your rate, so knowing your score from each agency may help you decide who will give you the best rate when you borrow money.

These credit scores are only available in some states in Asia and the websites may differ when your business is located in other developing countries. Cities like Singapore, Jakarta, Indonesia and Beijing, China have their own local credit scoring and you may inquire from your business lending company for information.

Above all, it’s important to use credit responsibly. A good credit history and credit score can be the difference between being able to purchase a home, buy a car, or pay for college. Proactively managing your credit report is a great way to stay in control of your finances, and ultimately achieve your goals.