Learn How To Recover From Business Insolvency

Business insolvency numbers has hit record high in February 2012. According to the Australian Securities and Investments Commission or ASIC, 1,123 businesses entered administration in February compared to 518 businesses in administration last January 2012. Furthermore, 449 businesses had to undergo court wind-ups in February 2012 compared to 79 businesses the previous month.

Insolvency is a difficult situation for any business. Insolvency is generally described as a company’s inability to pay its debts and other liabilities. An insolvent business has insufficient funds to pay its creditors despite liquidation through selling all assets and is unable to generate new funds through capital markets. Insolvency is caused by many factors including an ineffective business model, capital market values, competing technologies and poor cash flow management.

If your business is facing insolvency, it is crucial to take immediate action if the business is to survive. Directors must be wary of trading while insolvent as they will be held liable for insolvent trading in which civil or criminal penalties may apply. In this article, we provide some guidelines on how you can save your business from insolvency and continue operating legally.

Manage your cash flow

Cash flow management can be especially difficult when the business is already in financial distress. However, proper cash flow management is crucial if you are to recover from insolvency. To drive your cash flow, follow up on late payments of your customers and implement a shorter credit term for future contracts. Implement penalties for late payments to put some pressure on your customers to pay on time. It can also help to delegate a staff member to focus on follow-up and collection of payments.

In managing your cash flow, it is also important to manage the competing priorities for payment. Priority for payments will be payroll, suppliers as you need them to keep your business operating, then followed by ATO payment plan and others creditor’s payment plans.

Consider business restructuring

A business restructure is when a company reorganises its ownership, legal structure, assets and debts, business model, cost structure and ways of doing business. A restructure can be a positive way to respond to insolvency as it allows the business to generate new revenue, making the new company more effective and efficient while keeping the core business intact.

If you see business restructuring as a viable means to recover from insolvency, discuss your requirements with a business turnaround specialist or insolvency specialist as they can help you establish restructuring strategies to meet target operating profits and target cost structure. They can also assist in the implementation and monitoring of the agreed business restructuring strategies.

Seek professional help

Insolvency does not always lead to bankruptcy as some businesses are able to recover and successfully increase their profitability. However, this is not always the case for many businesses facing insolvency as seen in the record number of 449 businesses winding up in February 2012. If your business is at risk of insolvency, do not hesitate to get the help of a professional business turnaround specialist as they can give you the assistance you need to save your business. A turnaround specialist is an expert in negotiating with debtors, debt and cash flow management, business restructuring and business recovery and can help you avoid the pitfalls that other insolvent businesses has fallen into.

What Is The Importance Of a Mass Affluent Certification Program?

The affluent clients are very important in the financial and business industry. They play an imperative part in the economy since they are the class of people who have liquid financial assets. In the business sector these individuals are referred as the high end market. The mass affluent consumers are very much appreciated and valued by luxury shops.

The high end clients are very enticing to a lot of banking institutions especially to the retail banks because of their investment and wealth activities. It has been known that the mass affluent individuals are able to generate five times more revenue compared to their middle class clients. Having that said, the banks were able to recognize how valuable the clients are. Because of such reasons banking institutions make sure that ample products and services will be provided to their affluent clients. A lot of banks show their best especially when they are dealing with the high end individuals.

Since the high end clients are valuable in the financial and business industry therefore it is important that the best assistance and services will be provided to them and that is attainable if you will undergo a affluent certification program. This kind of training program focuses on the right way to manage and assist the clients. Also in this program you gain more knowledge and enhance your skills in providing financial services particularly to the high end clients. The needs and demands of these clients are more complex since valuable amount of money and investments are being talked about.

In the business field the affluent customers are highly valuable because they are the ones who are willing to spend without considering the price of a certain item. A lot of luxury shops are eager to serve their high end customers because they know they are the paying customers. Because of that it is important that you know how to assist these customers. You should be able to provide them appropriate services that will make them comfortable and go back to your shop. There are certain instances that handling high end customers can be a tough one since they tend to be more demanding with their needs and wants. That is why you have to be flexible in dealing with them. No matter how stressful the situation is you always to stay calm and accommodating.

As a wealth consultant it is vital that you are completely knowledgeable and skillful in all aspects of financial services. You have to be able to provide the best financial advice and assistance to help reach the goals of your affluent clients. In serving well your high end clients it is also a factor that you will be able to gain their trust so that they will feel at ease that a qualified professional is helping them with their financial concerns. All these you can learn if you join a mass affluent certification program.

Tips to Rebuild Your Credit After Bankruptcy

While bankruptcy provides a fresh financial start for many people, it is assumed that there are long lasting consequences. Presumably, a bankruptcy has negative effects on a credit score for up to 7 years after the bankruptcy was filed. However, just because the need for bankruptcy is correlated with credit damage, it doesn’t mean that you can’t begin proper money management practices today!

Money Management Techniques to Improve Credit

Several bankruptcy situations such as a Chapter 7 allow the credit score to improve in as little as a year after the bankruptcy as filed. In other words, while a bankruptcy has consequences, being responsible in its aftermath can create rewards as well. After all, a bankruptcy is supposed to be a fresh financial start, so be sure to reestablish your money management for the smoothest financial recovery possible!

It might seem counterintuitive, but one of the first things you want to do after the bankruptcy process is open a secured credit card. It’s time for you to begin rebuilding your credit. Using a secured card is an option that allows you to spend, but keeps the spending in check. If you deposit $800 onto the secured card, then your limit becomes $800. This keeps you from spending more than you have while raising your credit score. It’s similar to a prepaid card, but unlike prepaid cards, secured cards can affect your credit score. Use this secured card to pay bills on time, shop online, and for other uses that will report your spending activity.

Consider a New Car

Now, don’t purchase a new car for the sake of buying a new car. However, if you need a new car in the aftermath of a bankruptcy, this might actually be an opportune time to consider it! Dealerships have lower approval standards, which increase your chances of being approved to finance a car. Since you’re making such a major purchase that you can pay on time, you will be improving your credit. This shows that you’ve learned from the bankruptcy and have improved your money management skills.

Avoid this Money Management Mistake

Immediately after a bankruptcy, many individuals are so emotionally distraught and worried over their credit that they are desperate to improve their credit score no matter what. Scammers and fraudulent companies are preying on these emotions to take advantage of people struggling financially. Avoid trusting services that claim to improve your credit in a short period of time. Only proper money management over the course of a few months and years can improve your credit score after a bankruptcy. Any individual claiming to be able to rebuild your credit quickly is likely trying to scam you.

Finally, don’t make the same mistakes twice. Be sure that you’ve learned from your bankruptcy and the mistakes that lead up to it. Also be sure that the new money management techniques you’ve acquired become part of your financial lifestyle.

Will Bankruptcy Keep Me From Getting a Job?

With unemployment hovering over seven percent, the prospect of losing a job worries many people. Perhaps you have already lost a job, which is why you are worrying about your financial struggles and contemplating bankruptcy. With the job market as bad as it is and the economy experiencing sluggish growth, you may find yourself wondering “Will bankruptcy keep me from getting a job?” Here are some ways that filing for bankruptcy might affect your job search.

Some Employers Perform Credit Checks
It is an unfortunate fact that there are many dishonest people in the world. For that reason, an employer might want to run a credit check on their applicants. If a potential employer wants to run a credit check on you, according to the Federal Fair Credit Reporting Act (FCRA), they are legally required to have your signed permission before they do so. If you feel it is necessary, be up front about the bankruptcy. Let them know before they run the credit check what happened and why. Your potential employer might actually appreciate your honesty. In fact, by explaining the circumstances that led to your bankruptcy and describing what the situation taught you, your potential employer may see your experience as a way to better gauge you as someone they would like working for them, which can turn the circumstance to your advantage.

Jobs that Require Secret Clearance
If you are applying for a job that performs a background check for secret clearance, a bankruptcy will most likely not affect you negatively. If you filed for Chapter 13, your debts are being settled. If you filed for Chapter 7, they have been discharged altogether. Either way, the government would see you as significantly less tempted to be bribed or sell secret information as someone who is heavily in debt.

They Might Never Find Out
If a potential employer does not run a background or credit check on you, they might never find out about your bankruptcy. Furthermore, even though bankruptcies are public record, you have no reason to disclose your bankruptcy to a potential employer. Chances are your bankruptcy is probably not something that your potential employer cares about at all. If you are not asked about your credit history you are not obligated to discuss it. Don’t freely or voluntarily provide information which a potential employer may have no need or desire to know.

Discrimination Is Not Allowed
A potential employer may ask to run a credit check, and as stated previously, in order for them to do so they are legally required to obtain written permission from you. After receiving your written permission they are free to check your credit history. If you have had or are having your wages garnished, your employer will definitely know about your financial problems. Also, if you file for a Chapter 13 bankruptcy, your employer may have to provide the court with proof of your ability to pay. The court might also require your payment arrangements to come directly from your paycheck. However they learn of your bankruptcy, your employer cannot discriminate against you for it. That means bankruptcy cannot be the sole factor that keeps you from getting hired. Furthermore, if you are employed, an employer may not fire you, demote you, or punish you in any other way because of a bankruptcy.

If you feel you did not get a job because of your credit history and have concerns that the potential employer checked your credit history without your permission, request a copy of your credit report and check the “inquiries” section to see who has been checking on you. If the potential employer ran a check, their name should appear on the report along with the date the check was performed. If you know for a fact you did not give written permission for the potential employer to run a credit check, but they did so anyway, by FCRA law they have committed fraud.

Your Bankruptcy Attorney Has Answers
If you have any questions about how a bankruptcy can affect your job search, contact your Minnesota bankruptcy attorney. Your attorney can tell you what your rights are and what an employer can and cannot do because of your bankruptcy.

A Brief History of the Check Routing Number

A routing number or American Bankers Association (ABA) number is a nine-digit number that is assigned to a bank or credit union so that it can make transactions with other financial institutions. This number can be found printed at the bottom of a bank’s check next to the bank account number. It is used to eliminate any confusion that could arise from banks or credit unions having similar names. Without the proper ABA number, funds that are supposed to go to Bank of America never go to American Bank or any other institution with a similar name.

It is not uncommon for banks to have more than one routing number depending on the location and purpose of certain accounts, but each number is unique. No two banks will ever share a routing number.

A History of the Routing Number

Bank routing numbers were created by the American Bankers Association in 1910 as a way to make check processing easier and more secure (source: Bankrate). An ABA number would help a person taking a check be sure that they would receive the promised funds from the payer’s bank. This was of course well before computers and electronic transfers became the norm, so a system needed to be put into place to make transferring funds between banks as reliable as possible.

Bank routing numbers began to be used in electronic check-cashing networks in the 1960s to make the process of cashing a check faster than ever before. Physical checks were of course still being written during this time, but the fact that they were read and processed electronically greatly reduced any errors that could be made.

2004 saw the passage of the Check 21 Act, which made it easier for banks to create electronic copies of checks for transportation purposes instead of physical checks. This made the already fast process of cashing a check far more efficient (source: FDIC).

Physical checks are still routinely written and distributed, but electronic copies are now the norm as they allow banks to transport and deposit checks much more easily. However, bank routing numbers are still widely used today for things such as direct deposit, automatic bill payments and wire transfers.


Since checks are now processed electronically, the routing and account numbers need to be printed in a way that can be easily read by a computer system. This is accomplished via MICR. MICR is an acronym that stands for Magnetic Ink Character Recognition, and it refers to a process in which magnetically charged ink or toner is used to print routing numbers and other special characters at the bottom of checks (source: TROY Group). This ink and the method in which these symbols are printed makes it easier for electronic reader-sorter machines to read and process account and routing numbers.

MICR makes the process of reading and transferring checks easier than ever before. Everything is accomplished electronically, and modern MICR readers and printers have all but eliminated any potential errors that can be made. The characters are read several times at extremely high speeds to ensure that all checks are sent to the appropriate parties.