Tag Archives: banks

Financing Your Business: Business Loans & Cash Advances

Find out how you can finance your business with Creditwindow.

There are a number of ways you can finance your business – whether you’re just starting out or whether you’re looking to take your business to the next level.

Unfortunately, with the state of British banks, business loans have been far harder to come by as high street banks simply will not lend, which is why Creditwindow is seriously starting to look at how we can help British SMEs get back on their feet.

Currently we’re offering a business cash advance through Working Capital – a company that can give businesses up to £500,000. To find out more about how this works please read “Creditwindow expands into business finance.”

We are also looking at more traditional business loans that are offered through banks and lenders who are willing to fund small businesses.

Let’s face it – both the Government and Bank of England claim that small business growth is the key to getting out of the economic downturn, however, they are doing very little to aid this growth.

Here at Creditwindow we believe in British business and we intend to do everything we can to find the best sources of finance for you. Keep an eye on our business loan section. We understand that one form of finance may not suit every business but we will continue to work towards supporting small business throughout the UK.

Images from FreeDigitalPhotos.net

Banking Reform On The Cards For Tax Payers

The UK’s economy has felt the reverberating affects of the recession and many of the country’s banks were brought close to collapse.

As a result the Independent Commission on Banking (ICB) has released proposals to change the way in which banks operate. If the UK government gives the go-ahead on these proposals the British people could see major changes in banking security and competitiveness, improving both services and products.

Published earlier this week, the ICB’s report sets out their plans for a new and safer banking system that limits the risk to customers’ money as well as liability to the tax-payer if a bank should fail.

Key changes to the banking system:

1. Retail banking (mortgages, savings, credit cards and current accounts) will be kept seperate from far riskier investment banking (stocks and shares dealing). In addition to this the ICB have suggested:

• Banks are to put a “worst case scenario” plan into place that allows their retail banking to continue servicing the need of customers, even if the investment banking fails.

• Banks will have to set a limitation on the extent to which the retail section can bail out the investment side of the bank should it get into financial difficulty.

2. Banks are to make it a simpler process to switch bank accounts. Including:

• Introducing portable account numbers so that customers will not need to change direct debits and standing orders if they switch accounts.

• A seven day transfer period to be enforced to speed up the process of switching accounts from one bank to another.

3. Lending Criteria for financial products and services, such as personal loans, mortgages and credit cards should be make more flexible.

4. Larger banks such as Lloyds Banking Group should be made to sell off more retail branches as they currently provide up to 30% of all british current accounts. The ICB feel that this financial burden should be reduced.

It’s believed that, once the proposals have been scrutinised, the ICB will present their suggestions for banking reform to the British Government.

The final decision will lie with the Government to decide whether the benefits outweigh the risks to the tax-payers and whether further rules and restrictions will push the large banks off of British soil.

In spite of this it should be noted that the ICB began this investigation at the insistence of the Chancellor. This suggests that, if not all, then many of their recommendations are likely to be put in place.

Check out our great range of bank accounts to find the right one to suit your needs.

Cautious Spending Over Easter... Surprised? I'm Not.

An interesting report by ATM firm, Link, has suggested that Brits were much more cautious with their spending over Easter, with less cash being withdrawn from machines and a drop in credit card spending.

The report shows that, although £1.66 billion was withdrawn over the Easter period, this was down by £0.3 billion since Easter last year.

What was really interesting about the report was the fact that ATM transactions were actually up by 0.3 million on the year before. So this clearly indicates that people are relying on smaller amounts from their bank accounts than from alternative forms of payment but remain cautious with their overall spending.

In addition to this, balance enquiries at cash machines increased. A Link spokesperson suggested that they increased by as much as 12%. They added:

“This is most likely due to the fact that it is the end of the month and people are being prudent about their spending, and the fact that last year Easter was at the start of the month, so people were likely to have had more cash in their accounts, and known so, than during Easter this year.”

Which is true of course… but it’s interesting that as people become more cautious with their spending they also become more vigilant over their bank accounts. With the Government demanding more and more taxes from UK people it’s easy to see why!

Creditwindow always recommends keeping a watchful eye over your bank accounts, credit cards and other financial sources to ensure you have full control and understanding of transactions, changes to your accounts, etc. When you’re taxed to the hilt you need to know where every penny is going.

Top Ten Money Saving Ideas

With the decline in the British economy, high inflation and growing unemployment, it is proving more and more important for many of us to look at ways to save money.

Let’s face it – the price of fuel, food and pretty much all other consumables are severely impacting our bank accounts and credit cards. Nobody, even the richest amongst us, don’t want to be in this situation!

Unfortunately there aren’t many quick cures to improve your financial situation, however, Creditwindow has attempted to compile a few sensible tips to help you save a bit of cash.

1. Buy what you need, not what you want

This could be anything – from branded food in supermarkets to that latest iPhone or high-tech laptop. Whilst we appreciate that this is going to be tough – especially for those of us who like to enjoy the best, it is a very good way of saving money. For example, simply buying a supermarket’s own brand of cornflakes over a big-name brand (such as Kellogs) could mean the difference of a few quid!

2. Get rid of that credit card debt

When putting together a financial plan it’s always important to focus on clearing expensive debts as soon as possible. Usually you will find that your credit card carries the largest amount of debt – especially since this is the most convenient way to pay for goods and services. Unfortunately, if you don’t clear the card’s balance every month, the debt could mount up. So always consider how much you’re spending on your card and whether or not you will be able to pay off your debt at the end of the month.

3. Change your mobile phone plan

In this day and age a mobile phone is an essential piece of equipment for many of us – whether for business calls or simply to stay in touch with loved ones. Could a pay-as-you go mobile phone help in reducing your outgoings? It’s certainly worth using, especially if you make short calls infrequently. As an example, could your phone survive on £10 credit a month? It’s possible, especially if you could your calls short and rely more on incoming calls.

4. Cut down on those vices

Now could be the perfect time to give up smoking, cut down on drinking alcohol and junk food. Why not consider taking up a regular exercise routine instead? This doesn’t mean you have to pay out a small fortune to go to the gym! You could consider spending the time going for a run or brisk walk rather than going out for a smoke or having a beer.

5. Trade in your expensive car

Does your big expensive motor cost you an arm and a leg every time you want to re-fuel or need repairs? Why not consider trading it in for something smaller and more economical?

6. Get those benefits

Do you have kids to support and you’re on a low income? Why not consider getting child tax credits, working tax credits and child benefits. Forget the stigma attached to these and swallow your pride – what is the point in a system that aims to help people if you’re not going to claim on it?

7. Shop online

Shopping online could cost you a lot less than taking those long, boring shopping trips. Not only will you save fuel but you could make extensive savings on goods and services by using price comparison websites and simply browsing the web to find what you need.

8. Consider changing utility providers

Shop around to see if you can find the best electricity and gas providers at the lowest cost. There are now so many utility providers around the UK the market has become much more competitive and many of them are looking at new ways to rope in new customers – usually by trying to undercut their competition!

9. Keep track of your finances – incoming and outgoings

Why not put together a spreadsheet of your monthly income and your monthly spending? You could even consider breaking this down further to show outgoings per week and even per day to get an exact idea of what you’re spending out on. This is a great way of stripping out any unnecessary costs as you can see what you’re spending out on every day.

10. Look at energy saving measures

You could consider buying energy saving light-bulbs to bring down the cost of electricity, turning off appliances that you’re not currently using, turning off lights when you don’t need them on, etc.

Image: zirconicusso / FreeDigitalPhotos.net

Banks Challenge New Payment Protection Rules

The main high street banks are to begin their High Court challenge of new rules set-out to govern the way in which payment protection insurance (PPI) must be handled.

PPI essentially covers any debt repayments if the policy holder is unable to work as a result of a long-term illness, accident or lose their job. However, it has come under heavy fire after research indicated that it had been mis-sold to many customers who would never be in a position to claim on the policy. Many other customers felt that they were pressurised into taking it out alongside a credit card or personal loan.

The challenge has come about since the British Bankers’ Association (BBA) launched a judicial review against the Financial Services Authority (FSA) and the Financial Omudsman Service (FOS) over new PPI regulations that came into force in December.

These new rules have been put in place to make sure that all customers are treated fairly, both when buying PPI and when complaining if the cover is mis-sold.

The rules basically dictate that loan and credit card providers who also offer payment protection have to talk potential customers through the main benefits of the PPI policy, rather than just providing them with documentation that offers information.

In addition to this the bank or lender have to provide clear evidence that the benefits of payment protection insurance have been explained to the customer if it was taken along with the extended credit.

However, banks have voiced their displeasure about the new rules relating to PPI policies sold before the new system was introduced.

The BBA released a statement that said:

“We believe the FSA is effectively creating a precedent which permits it to apply new rules to previous sales – even where those sales were regulated by other FSA rules.”

If you think you have been mis-sold payment protection insurance (PPI) then you should contact the Complaint Handling Service for help in fighting your case:

Government Calls for Simplified Financial Products

Banks, Payday loan companies and credit card providers are being faced with standardisation after a Government publication on simplifying financial services.

The Government has recently stated that high-street banks and consumer groups should look at developing a range of simple finance products to help consumers make the most out of their finances.

A recent publication by the Finance Secretary to the Treasury, Mark Hoban MP, sets out a number of proposals for financial products that will help promote personal responsiblity amongst consumers. It will also enable people to compare products and understand their features more clearly. It’s thought that this will encourage competition amongst banks, payday loan companies, and credit card providers.

Mr Hoban commented:

“The Government is committed to helping consumers take responsibility for their finances. In order to do this they need to be able to make sense of the huge range of financial products in the market. Simple financial products will help them to do that, by providing a safe choice and a common benchmark against which other products can be compared.

“This is one of a series of reforms to ensure that consumers get a better deal from financial services.”

Group urges stricter control over payday loans

Banks are being urged to offer affordable short-term loans as alternatives to the more expensive payday loans, by consumer watchdog, Consumer Focus.

According to the group the total number of people taking out high interest payday loans has quadrupled over the last few years. The study shows that around 1.2 million people have borrowed over £1.2 billion in loans.

Consumer Focus added that better safeguards need to be put in place to help protect customers from spiralling payday loan debts.

Financial Services Specialist, Marie Burton, commented:

“With the credit crunch, demand for short-term borrowing has significantly increased despite the eye-watering interest rates charged by some payday lenders.

“Such expensive rates can leave consumers who defer payments, or take out repeat loans, caught in a debt trap.”

In spite of this, Ms Burton added that the group does not agree with calls to ban payday loans as outlawing them could leave many borrowers vulnerable to the likes of loan sharks. However, she added that safeguards to protect borrowers needed to be put in place to prevent them from becoming too dependent on this form of high-interest credit.

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