Latest news in the business world.

Credit cards guide

Taking care of your financial situation is extremely important. Here are a few tips regarding financial issues. Secured credit cards are an option for people who don’t have a ?credit history or who have damaged their credit status. Secured cards require a security deposit to be placed on the card. The credit limit on a secured credit card is typically equal to the amount of the deposit made on the card, but it could be more in some cases – such as a major default such as defaulting on a mortgage payment. It’s worth noting that you’re still expected to make monthly payments on your secured credit card balance.

Obtaining a Payday Loan: Payday loan providers are typically small credit merchants with physical locations that allow onsite credit applications and approval. Some payday loan services may also be available through online lenders. To complete a payday loan application, a borrower must provide paystubs from their employer showing their current levels of income. Payday lenders often base their loan principal on a percentage of the borrower’s predicted short-term income. Many also use a borrower’s wages as collateral. Other factors influencing the loan terms include a borrower’s credit score and credit history, which is obtained from a hard credit pull at the time of application.

Terms: A loan shark is a person who – or an entity that – charges borrowers interest above an established legal rate. Often they are members of organized groups offering short-term loans who use threats of violence for debt collection.

Equity: The value of an asset after all debts against it have been calculated. A property may be worth $800,000, for example, but if it has a $500,000 mortgage against it, the equity the owner has is $300,000.

For our finnish readers here is a resource that you might find useful : Finance and business helping guides. Mortgage, or home loan: An agreement between a lender and a borrower who is a property owner where the property is used as collateral or security for an amount borrowed to purchase it.

EBITDA: EBITDA stands for Earnings Before Interest, Tax, Depreciation, and Amortization and is calculated by subtracting operating expenses from revenue and adding back depreciation and amortization to operating profit (aka EBIT). EBITDA can be used as a proxy for free cash flow (FCF) because it accounts for the non-cash expenses of depreciation and amortization. On the income statement, EBITDA is a line item above net income that excludes other non-operating expenses, as well as interest expenses and taxes. Some could argue that compared to net income, EBITDA paints a rawer image of profitability. While some proponents of EBITDA argue that it’s a less-complicated look at a company’s financial health, many critics state that it oversimplifies earnings, which can create misleading values and measurements of company profitability.