The Art of War as a Business Strategy

September 29, 2021

Competition and rivalry are considered a key aspect for effective, innovative and growing businesses to emerge. As Bill gates noted: “Whether it’s Google or Apple or free software, we’ve got some fantastic competitors and it keeps us on our toes.” In a way no one questions the need to have a competitive mindset when being in business. By having competition between companies, we believe that innovation will prosper and hence customers will benefit. For any company with a strong focus on customers, competition is thus a necessity in the business strategy that they adopt.

But, despite the many benefits that people see in business competition, the competitive aspect itself also can bring pressure and unintended negative consequences. As the former Australian tennis player, Rod Laver, once said: “The time your game is most vulnerable is when you’re ahead. Never let up.” Indeed, a negative consequence of competition is that it can put a lot of pressure on business executives and their companies. People may ruminate more about what could go wrong and how it would affect their future business developments, especially so when the company is leading or ahead of the pack. One such example of a business executive who worries a lot about surviving in an era of business competition is Huawei’s founder Ren Zhengfei (De Cremer, 2019). Huawei, founded in 1987 in Shenzhen, rose to the global leading spot in 2012 when it surpassed Ericsson, and since then experienced what it meant to transform from being a follower to becoming a leader in the industry (Tao, De Cremer, & 2017).

It is well-known that Huawei’s founder is very much aware of the fact that his company may die one day. He is so much aware of this outcome that he is occupied continuously with the question whether Huawei will survive. A famous story is that in times of crisis Ren Zhengfei will, without surprise, say that the fear of not surviving keeps him awake at night. But, even when times go well, Ren Zhengfei will still think about whether Huawei will survive. Survival as such has become an important part of the company’s DNA and this desire is always there, underlying every action and decision. For Huawei, competition has become fierce in the last few years, especially so since the US has portrayed the company as the poster child of the Chinese government. As a result, the company is directly impacted by the trade war that’s going on between the US and China as was illustrated by the decision in 2018 by Canada to arrest – because of a provisional US extradition request – Ren Zhengfei’s daughter, Meng Wanzhou. According to the US, in her role as CFO of the company, she violated US sanctions rules against Iran by letting Huawei do business with Skycom Tech – a company alleged to work closely with Iranian telecom firms.

According to the US, in her role as CFO of the company, she violated US sanctions rules against Iran by letting Huawei do business with Skycom Tech – a company alleged to work closely with Iranian telecom firms.

Given these events, it then also came as a surprise to many that Ren Zhengfei in a recent speech where he explained the need for the company to keep expanding outside China, uttered that Huawei still had much to learn from the US in terms of science and technology (Yujie, 2021). For many observers, the message was somewhat hard to believe, because isn’t the US the nation putting the most pressure on the company and constraining its abilities to do business at a global scale? So, why would he be so positive about the US. It’s war, there’s competition, why then show behaviours that indicate the company looks up to the US? These observations identify an interesting point to address, which is what war and competition actually means to the one leading the company that is under attack. Indeed, as it seems Ren Zhengfei has a specific connotation to what war entails and how competition and cooperation relate to each other.

First of all, it’s no secret that Ren Zhengfei always had a positive attitude towards Western knowledge in general and management insights that came from the US more specifically. In an interview with CNN, Ren already expressed his warm feelings towards the US when he noted that he likes how frank Americans are. Their ability of not being afraid to ask any question they want made him a fan of the US at an already young age. Even today, he stressed, he still considers the US a great nation. In several of those interviews, he has repeatedly said that he really gets US culture and really likes their take on how to manage a company. In fact, it is somewhat of a running joke that Huawei is actually a US-made company, because most of their strategy, leadership and management systems including human capital management originated from collaborations with US companies like IBM, Hay Group, PWC, Mercer Consulting and Accenture.

Second, and maybe most importantly, Ren Zhengfei, being somewhat of a philosopher, clearly read Sun Tzu’s master piece “The Art of War” very well. In this book, Sun Tzu outlines his view on military strategy and thinking and identifies the important principle that one should always be military prepared to maintain peace and social order. Looking at how Ren Zhengfei approaches the current war with the US, his focus is also clearly on being ready for the fight, but nevertheless trying to avoid it.

Huawei is indeed ready for the fight. The company has a strong belief that they can remain the biggest in the world. In fact, they believe that even if the US does not allow them to do business, they have many other customers to serve who want their products. Ren Zhengfei endorsed this point of view by stating that “the world cannot leave us because we are more advanced”. In line with this believe, it has been noted that Huawei has doubled its efforts in new business areas such as cloud services and smart cars (Chiu, 2021), whereas at the same time establishing many strategic partnerships with the major telecom players in Southeast Asia (De Cremer, 2020) and Africa (Nyabiage, 2021). So, Huawei does not seem to be too impressed by the US, exhibits confidence, and especially seems prepared to pick up the fight for survival.

Huawei does not seem to be too impressed by the US, exhibits confidence, and especially seems prepared to pick up the fight for survival.

At the same time, however, Huawei has clearly adopted the thinking of the “School of the Military”, which advocates being ready for the fight, to demonstrate your readiness, but have the goal to maintain harmony and peace. This thinking has been made popular by Sun Tzu’s book “The Art of the War”, in which one important wisdom is that “The greatest victory is that which requires no battle.” So, what is clear in the attitude and actions of Ren Zhengfei is that he’s prepared to continue fighting, but that he will avoid engaging or initiating the fight. In fact, he has recently noted that Huawei technologies must remain open and continue to grow in international markets. And, in that process of continuous striving for growth and openness, Huawei stresses the importance of learning from the US. According to Ren, the fact that the US is constraining Huawei in its growth, should not blind them to still recognize them as a teacher and learn how they work. If we don’t we will only isolate ourselves, he noted. Such open and welcoming approach to what many consider the enemy again fits well with Sun Tzu’s thinking, and especially so with the principle that “To know your enemy, you must become your enemy.”

It’s a common trait of wise leaders that when the “heat is on” and war seems eminent, the primary concern should be on preparing for a fight, but with the intention for the fight never to happen. Don’t show weakness (prepare), but don’t act as an aggressor (do not fight), seems to be the way to motivate Huawei’s workforce to keep going and at the same time being innovative in making the company grow. In times of crisis, leaders have an important responsibility to ensure that the company reduces uncertainty – and promoting confidence is one way – while at the same time always being on the look-out for opportunities that can remove the crisis element . As such, the main lesson from Sun Tzu – in light of Huawei’s current strategy – is that today’s leaders may need a sense of confidence combined with an agile and open mindset more than ever.

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About the Author

David De Cremer is a Provost’s chair and professor in management and organizations at NUS Business School, National University of Singapore. He is the founder and director of the Center on AI Technology for Humankind at NUS Business school. Before moving to NUS, he was the KPMG endowed chaired professor in management studies and current honorary fellow at Judge Business School, University of Cambridge. He is named one of the World’s top 30 management gurus and speakers in 2020 by the organization GlobalGurus, one of the “2021 Thinkers50 Radar list of 30 next generation business thinkers” (an annual ranking that the Financial Times deemed the “Oscars of Management Thinking”) and included in the World Top 2% of scientists (published in 2020). His latest book is “Leadership by algorithm: Who leads and who follows in the AI era?”

References

Chiu, K.(2021). Huawei looks to cloud services in 2021 as US sanctions strangle smartphone business. South China Morning Post (https://www.scmp.com/tech/tech-leaders-and-founders/article/3116243/huawei-looks-cloud-services-2021-us-sanctions)
CNN (https://www.huawei.com/en/facts/voices-of-huawei/ren-zhengfei-interview-with-cnn)
De Cremer, D. (2015). Understanding trust, in China and the West. Harvard Business Review. February 11.
Chiu, K.(2021). Huawei looks to cloud services in 2021 as US sanctions strangle smartphone business. South China Morning Post (https://www.scmp.com/tech/tech-leaders-and-founders/article/3116243/huawei-looks-cloud-services-2021-us-sanctions)
De Cremer, D. (2019). Hard-Wired to survive in the UC-China trade war. The European Financial Review, August-September, 7-11.
De Cremer, D. (2020). No regrets! Accepting the past to survive in the future. The World Financial Review, November-December, 4-7.
Nyabiage, J. (2021). African nations continue to put trust in Huawei for data management. South China Morning Post (https://www.scmp.com/news/china/diplomacy/article/3138917/african-nations-continue-put-trust-huawei-data-management)
Tao, T., De Cremer, D., & Chunbo, W. (2017). Huawei: Leadership, culture and connectivity. Sage Publishing.
Yujie, X. (2021). US-China Tech war: Huawei founder Ren Zhengfei tells his employees to learn from the United States. South China Morning Post (https://www.scmp.com/tech/tech-war/article/3138933/us-china-tech-war-huawei-founder-ren-zhengfei-tells-his-employees)

Top Steps to Becoming a Successful Financial Manager

September 29, 2021

Are you looking for the easy steps to becoming a thriving financial manager? If so, you have landed at the right place today! Here will share the basics and golden keys that will help you achieve your goals.

So, don’t rush the process and keep reading. Well, becoming a financial manager is the most challenging professional track. The reason behind this is the pretty specialized nature of the sphere. It also starts from Creating and executing business plans, handling staff, monitoring cash flow, and playing along with the deals and salaries.

Did you know what comes after your degree and professionalism? Well, it is all about the tools you utilize and makes everything flawless. Here we are pitching the things over the Salary Calculator – a crucial weapon for any financial manager. Below are the detailed steps that you should learn. Read on!

Understanding the Steps to Become a Successful Financial Manager

Now, it is time to jump into the section where success steps up into the world of the financial sphere. Today, we don’t want you to rush the process or go for any stretchy conversation. So, let’s dig deeper into each point and grab the level that you want to attain. Take a look!

First Learn Your Responsibilities as a Financial Manager

So, you have to learn what tasks and duties will be given to you when you jump into this field. These responsibilities typically include:

Making and performing business plans
Offering financial data
Controlling cash progress
Operating budgets
Handling staff
Creating financial projections & reports
Recounting financial transactions

If you notice, all the things revolve beyond cash and flow. It is very important to figure out what kind of duties you will perform. So that you can demand a better salary package. The manual calculation for the salary may have some uncertainty, simply use the salary calculator that calculates your salary in different ranges.

Know the Licensing & Certifications

Once in the sphere, financial managers should continually improve their skills via acknowledged licensing & certifications. Bear in mind that it will help in making rapid progress more possible. Getting a reliable public accountant’s credential is the most apparent symbol of this sphere. By making improvements to your skills you can get a good amount for your salary. You can estimate how much salary will be offered to you depending on your licensing & certification. Consider the salary calculator to do the instant salary calculations.

Develop Contacts & Keep Tracking

Did you know that experience is as valuable as formal training in starting a financial management career? Well, the answer is a big yes! It is a specialized field that revolves around investment management. Here, your hires have typically held some other jobs. Now, as a financial manager, you have to keep tracking their salaries and your income. And it needs to be accurately done. It might be a bit confusing sometimes for you to calculate how much you have earned. But no worries, you can easily calculate the salary instantly with the free assistance of an online salary calculator. Following this step can open many doors for you. And the ultimate step would be to develop the relationships needed.

Takeaway!

The profession of a financial manager revolves around some challenging responsibilities. However, these duties demand accuracy. If you are not appropriately performing your duties, it might be possible for the owner of your place to cut down your salary. You can estimate your salary based on how much money you have earned by using a free online salary calculator. We hope that the steps we mentioned in this post will help you know the mistakes you may make in the management process. Best of luck with your career!

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U.S. Money Reserve Reviews the Benefits of Gold in the Internet Age

September 29, 2021

Though we access our money and complete financial transactions every day, using physical cash has become less common as our modern financial system increases its reliance on digital technologies and the internet. This shift has enabled quicker and broader access to funds and platforms on and through which to spend, but such technology also has downsides. To increase awareness of this issue, U.S. Money Reserve highlights some potential issues that may result from dependence on digital finance technologies.

The Growing Lack of Reliance on Physical Money

Since the introduction of digital transactions, physical currency has become less utilized for larger transactions. The usage of digital transactions has expanded along with the emergence of cloud-based technologies and online banking, which allow individuals to remotely access funds and credit lines. In a 2019 poll conducted by U.S. Bank, about 3 in 10 adults say they make no cash purchases in an average week, and those who do carry cash tend to carry less than $50 at a time.

In lieu of cash, consumers have turned to digital means of payment for goods and services. Credit and debit cards, for example, have become primary connections to account holders’ funds. While many may think of these cards as equivalent to paper currency, this is simply not accurate. Credit and debit cards rely on energy grids and communication infrastructures to function. If a power or network disruption occurs, these cards could be rendered temporarily useless. The same thing can happen to ATMs. Though they can provide ready access to physical currency and personal funds, they require power and network access to function, so they may not always be available should something happen beyond an individual’s control.

A Major Issue with Digital Finances

Digital fund access can be both a benefit and a hinderance to personal finances. It can provide flexibility and accessibility, enabling commerce when electricity and infrastructure are reliable, but it only takes one major outage to separate millions of people from access to their funds. In the event of a natural disaster, for example, access to currency and payment options may be critical—but without power, that access may become temporarily limited or even nonexistent.

Digital financial systems have also been targeted by malicious third parties in ways that physical currency cannot be. This is increasingly true as cryptocurrencies and other new digital assets become more prevalent. In the hands of a competent hacker, digital asset systems become potential weaknesses in the overall financial system.

The Rise of Internet-Based Financial Crime

More than just cryptocurrencies are at risk of malicious internet activity. Scams designed to convince (or trick) individuals into disclosing personal information and thus providing access to their digital funds are becoming increasingly common. Though many of these attempts are fruitless, it only takes one successful attack to permanently drain the funds from a victim’s bank account or run up a massive credit card balance. Not only can this severely set back a person’s financial prospects, but it can also permanently hinder their ability to make payments and gain new lines of credit.

Benefits of Gold in a Digital Age

Unlike digital assets, gold’s physicality is readily apparent. Gold’s tangible nature provides its owners with immediate access regardless of the time of day or day of the week.

Gold can also be secured by means unavailable to digital assets. Digital currencies may rely on cryptography that can make them vulnerable to potential cyberattacks. Conversely, gold can be secured in a safe or other physical enclosure. This can lend peace of mind to the owner, and that assurance has helped gold receive increased attention as a viable store of wealth in an otherwise digital age.

About U.S. Money Reserve, America’s Gold Authority^®

U.S. Money Reserve is one of the nation’s largest private distributors of government-issued gold, silver, platinum, and palladium products.

Founded in 2001, U.S. Money Reserve has grown into one of the world’s largest private distributors of U.S. and foreign government-issued gold, silver, platinum, and palladium legal-tender products. Hundreds of thousands of clients across the country rely on U.S. Money Reserve to diversify their assets with physical precious metals, primarily in the form of legal-tender gold and silver coins.

U.S. Money Reserve’s uniquely trained team includes coin research and numismatic professionals equipped with the market knowledge to find products for precious metals buyers at every level. U.S. Money Reserve goes above the industry standard to provide superior customer service, with the goal of establishing a long-term relationship with each and every one of its customers. U.S. Money Reserve is based in Austin, Texas. Like them on Facebook, connect on LinkedIn, and follow on Twitter.

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How to Get Preapproved for a Mortgage

September 29, 2021

Preapproval is the first procedure you should look into when planning to apply for a mortgage. It is a process wherein a mortgage company assesses your capabilities to qualify for one. The mortgage lenders will thoroughly look into how much you really can afford and determine how much money you are qualified to borrow to acquire a home. This process will include checking your assets, income, credit scores, and history.

It is everyone’s dream to have their own home, a place where they can have a sense of ownership. Thus, if you really aim to have one, you should really work on some important things to get preapproved for a mortgage. To further assist you, here are some tips that you should consider.

1. Do not focus on one lender

Wherever you live, there are probably lots of mortgage companies in the vicinity. You’ll surely have a lot of options to choose from. The trick is, do not limit yourself in focusing on one lender, do your research and explore until you can make a list of choices.

Better yet, hire a mortgage broker to ensure that you have great and reasonable deals. It’s a good move to hire a broker, regardless of what country you’re in. That’s because they know the local laws and the people who can help you get the property you want. Let’s say you’re buying a home in Canada. Mortgage brokers in the area, like Spear Mortgage, already have a network of lenders, and they can lead you to those that can offer the most agreeable terms.

2. Check your credit score

Credit scores play a vital role when planning to apply for a mortgage. It is one of every company’s main basis to assess if you do qualify for one. Thus, before you apply for a mortgage, make sure that you have checked your credit score and ensure that it is good enough to be qualified. Most likely, a score of at least 620 is the most ideal to be able to qualify for better rates. If you can manage to go higher than that, the better options you can acquire.

3. Organize your credit history

Another important factor is your credit history. Make sure to prepare all the files that include copies of your credit reports so you can still have time to double-check if there are any errors or disputes in your file. This is very important as a single issue found on your credit history might cause a problem for your application. Do this as early as possible so you can still work out with your creditors if there are issues on your file.

4. Prepare the necessary and other required files

Aside from your credit history files, there are other essential information to prepare. This includes income information, financial information, and of course, your personal information. This information will be asked frequently during your application. Thus, it’s very important that you have them with you always. Here are the following files and information to be prepared: Socia Security Number, Employment Details, Current Addresses, Bank and Investment Account Information, and your Proof of Income.

Final Words

You will really need to follow and undergo a certain process to get preapproved, but it’s all for your own benefit. This process will truly help you reach a mortgage company that’s best for you and fits your capabilities.

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Ways to Save Money on Your Mortgage

September 28, 2021

It is a truth universally acknowledged, that unfortunately house prices are rising. And it looks like they will continue to rise for the foreseeable future, so is the predicament we’re in. With this in mind, knowing a few moves in order to gain a bigger mortgage. If you’re thinking about buying a home, there are things you can do to convince your bank or lender that you deserve more borrowing power. Read on to see our strategies for getting a bigger mortgage.

Show any additional income

If you have any proof of additional income, it can go a long way to getting you a bigger loan, since you are proving you can repay them. But before you go storming into the boss’s office for a raise or to quit for a higher paying job, calm down. These tactics can be helpful, but if you don’t fancy that, there are other things that are considered additional income.

You can show proof of interest or dividends from investments, income from rental properties, alimony or child support, social security income and money earned from a part-time job or a side business. These are all considered reliable income; however, the latter comes with the stipulation that you have to have earned enough from your job or side business for over the past two years. Just make sure to give all this information to your mortgage broker Brisbane in the most organized manner possible.

Pay off any debt

Any debt clogging up your account will hinder the size of the loan you’re looking for. When you apply for a mortgage, a lender will look at your debt-to-income (or DTI) ratio, which is the percentage of your monthly income that you are dedicating to your minimum monthly debt payments. A DTI ratio of less than 36 per cent is usually considered ideal but some lenders are comfortable with going higher. Without debt, lenders will be more comfortable lending you, knowing that you can repay and that you haven’t got other loan priorities.

Credit card debt or an installment loan getting paid off can make a big difference in your DTI figure. If you have the money handy it can be a quick and easy way to increase how much of a mortgage you qualify for. If you can’t pay it all off in one go, you can reduce it with a balance transfer card or you can refinance an auto loan to lower your payments. There is also the option of consolidating your debt into an installment loan.

Raise your credit score

A slightly larger loan can be obtained with a lower interest rate, and you can get a lower interest rate by getting a higher credit score – but only to a certain extent.

There are a number of ways to raise your credit score. Check your credit reports and stay on top of your payments. Avoid applying for new accounts if you can. These can all help you in raising your credit score. There are also self-reporting mobile apps you can take advantage of like Experian Boost and UltraFICO. You should add accounts with positive payment history to the app, boosting your score.

Put down at least 20 per cent

Most banks and lenders will add private mortgage insurance (or PMI) to your loan, which you can bypass to get a bigger loan with a large enough down payment. PMI protects the lender if you stop paying your loan.

So, if you’re applying for a home loan like a DBS Housing Loan and your down payment is over 20 per cent of the house’s price, the PMI will be waived and you won’t need to pay it. Without at least 20 per cent in down payment, the PMI will become part of your monthly costs and will decrease the size of the loan available to you. If you have the cash after your 20 per cent, you can pay a little more to your lender to lower the rate of your interest which will help with monthly repayments.

Add a co-borrower

One thing that can go a long way to convincing a lender that you deserve a bigger loan is a co-borrower. A co-borrower with strong credit and a steady income will reassure the lender that there are various incomes contributing to the mortgage and therefore a backup if something were to fall through. You and your co-borrower’s income will increase the total income that a lender can use to qualify you for a loan.

Co-borrowers can be spouses, domestic partners, friends, or relatives, but they should all be warned it is not just a name on a piece of paper, but a financial agreement. It is for people of both parties to get their name on a property and to agree that they will share the responsibilities of paying back the loan.

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5 Main Functions of a B2B Marketer

September 28, 2021

By Samuel Matthews

B2B marketers are essential in the marketing landscape and for a company’s success, given the different roles. They are responsible for developing ideas for new products based on their relationship with prospects, market knowledge, and industry experience. They coordinate and communicate with all departments. They own the content on the company’s website and how it is created. They are also responsible for the company’s image and perception in the market.

As content marketing is becoming more crucial within marketing spheres, organizations are picking up pace and enhancing the functions of B2B marketing. However, B2B marketing happens very fast and requires a lot of work post-publication for maximal conversion, impact, and shelf-life.

There are several roles and functions that the B2B marketer has to play within the organization to be successful at their jobs. In some organizations, one marketer handles these functions, and in some others, they are managed by multiple marketers. The important thing is that these roles are filled and executed well by B2B marketers for the organization’s success.

Here are the five main functions of a B2B marketer in today’s world.

Defining customer experience

There’s a lot more to marketing now than the traditional B2B marketing setup. This field covers sales enablement, demand awareness, and generation through campaigns and outbound marketing messages. In addition, it has to include service delivery and product development.

Marketing also plays a crucial role in B2C companies. For example, the position of a brand manager is a highly coveted one in many of these companies, as they have to work essentially as the CEO of the business. In the same way, it is crucial that B2B marketing evolves to a position like this within B2B companies. That’s how important they are.

Content creation and strategy

A content strategy defines the marketing process and secures the necessary resources to produce a stream of content consistently related to the buyers’ needs across different points of the buying journey. It also involves the different buyer persona involved in the decision-making process of the B2B Company.

Content creation plays a crucial role for B2B. Before a feature or new product is launched, the customers and prospects are first informed about it. This is crucial because they have to determine how the product or feature can solve their problem. They may already have interest, but they need the information to be thoroughly convinced about it. So B2B marketers have to provide all the marketing content and technical documentation about the feature or product that the customers need. These are blog posts, webinars, white papers, email campaigns, website pages, etc. B2B marketers are the ones responsible for creating these technical contents.

Representing the customer’s voice

It is easy to think the bulk of this boils down to surveys and research; however, according to content on a platform to hire a writer for essay; there is much more to it. The core part of this is the knowledge that comes from discussing with the customers and trying to understand their fears, needs, and reasons to buy or not buy a product. This is a product of rigorous work such as analytics, keyword analysis, and message testing.

This flourishes alongside other creative arts such as visual design and compelling copywriting. And as you would expect from a complex system, organizational knowledge gives the strategic marketer an edge. It puts them in the driving seat to lead the visions and strategies of the company for the future.

Amplifier

There’s a famous saying about a tree falling in the forest with no one around to see or hear it fall. No matter how big the tree is, if nobody is there to witness or hear the fall, it is as though it never fell. That’s the way it is with B2B marketing. The role has a lot to do with gaining traffic – immediate and continuous. Too often, a company publishes content, gets immediate traffic, and moves from it to another piece. And they fail to go back to the older and relevant content and cycle through them regularly. The function of a B2B marketer as an amplifier is to increase the initial traffic bump for new content and to continue expanding the shelf-life over some time and impacting the entire library.

Strategist

It is clear that B2B marketers are responsible for developing, managing, and optimizing the overall content program of the organization. However, there is always an objective to their work. Moreover, it has to be measured for both long-term success and immediate results. So they need to be clear on how their effort ties into the organization’s broader goals and integrate it into the work of another department such as sales, marketing, account management, customer service, etc.

They must keep themselves abreast with the knowledge of new tools for analyzing web pages, posts, emails, etc.

Conclusion

B2B marketers are essential to the success of the organization. They take up roles that no one else can within the organization and are the joints that get several departments working together.

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Author Bio

Samuel Matthews is 33 years old, and he lives in Manchester, where he works for essay writer UK. He worked as a journalist and wrote his own detective story. He loves to learn something new and meet different people. His hobbies are travel, sports, and drumming.

What are the Advantages and Disadvantages of Obtaining a Personal Loan?

September 28, 2021

There are several reasons why people choose to take a personal loan. It can be the solution to pay for some item you really want, like the holiday of your dreams or that fantasy honeymoon, perhaps for a new appliance, or to replace one that is broken. A personal loan can also be a life-saver when faced with emergency repairs or medical bills.

However, there are good and bad reasons for taking a personal loan, therefore it is a decision that needs the pros and cons to be carefully weighed. The key factors to consider are listed below.

Top Reasons People take Personal Loans

Buying a car can be costly but may become necessary due to the high costs of maintenance on an existing vehicle or needing a second car in a growing family. This is where a personal loan can help.

A personal loan is useful for home maintenance and upgrades. When taking a personal loan for these reasons, you will not be required to put your home up as equity. This is called an unsecured loan.

If you have several credit cards and other revolving debt, taking a personal loan makes sense. It allows you to consolidate all your debt into one monthly repayment. This is much simpler to keep track of. The amount will remain the same every month, so it is easy to budget for.

Sometimes, people are tempted to take short-term loans to deal with the period when they are waiting for a paycheck. Hence these loans are also called payday loans. However, the interest rates are far higher on these temporary loans than taking a personal loan. Payday loans also have to be repaid over a much shorter time, usually within one month or less.

Being hit with an emergency medical bill can find you unprepared. A personal loan provides a cost-effective option. Other costly procedures, like dental surgery, would also fall into this category.

Sometimes you want to purchase an item that is expensive or pay for a special holiday, like an engagement ring and honeymoon, and your savings won’t cover it. A personal loan usually works out cheaper than using a credit card.

Funerals catch people off guard. Especially if the death involved a much younger person who did not take out insurance. A personal loan can come in handy to pay for catering, flowers, and other items that might be needed without warning.

Advantages of Taking a Personal Loan

There are numerous benefits to taking a personal loan.

One of the best reasons for taking a personal loan is to consolidate all your debt into one monthly repayment. And the interest rate will work out lower than what you were paying across several credit cards. It is also cheaper than taking a payday loan and has the further advantage of giving you longer to make the repayment.

Did you know that getting a personal loan can increase your credit score?

There are three things you can do to get yourself a better rating. As long as you pay the full amount on time, this will raise your rating. Your credit utilization score drops, and your credit score goes up when you replace revolving credit, such as credit cards, with a personal loan. Finally, if you have a mixture of types of credit, such as a personal loan and revolving credit, your score increases.

Personal loans generally have a lower interest rate than other lines of credit. Reducing your debt through consolidation and replacing your credit can both be achieved by taking a personal loan. Aside from the benefit of smaller interest rates, personal loans have fixed repayment amounts so that you don’t have to pay fluctuating amounts from month to month.

This blog post from Tally has more information on personal loans and their benefits. Tally is a helpful app that lets you reduce your credit card debt. If you are eligible, you can even access a line of credit to consolidate existing debts.

Disadvantages of Taking a Personal Loan

You need to be aware that doing a credit check inquiry for a personal loan will result in a hard inquiry being performed. This happens every time you make such an inquiry (but not when a check is done to see if you prequalify for a loan). You should still be able to make multiple applications to compare rates for one loan without it affecting your credit score, as long as this is within a period that varies from two weeks to six weeks.

If you default on your payments due to insufficient funds, then a personal loan is not for you. Doing so also has a negative effect on your credit score. It may result in applications being declined or personal loans being offered at a much higher interest rate. In this case, the comparison between different credit options may no longer favor a personal loan.

Similarly, if you are not able to afford to repay a loan, it is better not to take it in the first place. Far better to start a monthly savings account. You may be required to deposit a small set amount into the savings account, but you will earn interest on it. When you have saved up enough you can use that money on the item you wanted without having to get into debt.

Loans come with other costs apart from interest. Make sure that the loan amount you request takes this into account. You could ask for slightly more on the personal loan to cover these costs.

The advantages of taking a personal loan generally outweigh the negative reasons for not taking one. As long as you are a good payer who is always on time and you can ensure that the full installment is paid every month, then you are a good candidate for a personal loan. You can even reduce the amount of interest you are currently paying, improve your credit rating, and have only one account to manage.

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How Lease Accounting Software Adds Value For Accountants Grappling With IFRS 16

September 28, 2021

For anyone wondering about the impact of changes to the IFRS 16 standard, the International Accounting Standards Board offers a neat summary; by its calculation, listed companies using IFRS 16 or US GAAP have approximately $3 trillion of off balance sheet lease commitments that will now need to be accounted for. And while the benefits of these changes are expected to outweigh the costs, this will be little consolation to accountants and other professionals expected to make a seamless transition to the new standard.

Thankfully, these same financial professionals can now access an ever expanding range of lease accounting software specifically addressing IFRS 16 and its wider impact on a company’s financial reporting. The best examples of these have been designed by experienced accountants with first-hand experience of the challenges around regulatory risk and compliance in IFRS 16. As such, they’re already making a valuable contribution to the enormous workload involved in the transition to the new IFRS 16 standard.

Examples of where these tools are having an impact include:

Automated calculation: By far the most challenging component of the new standard is the need for accountants to accurately calculate the dizzying array of leases that until now, have been footnotes to the balance sheet. Lease accounting software uses the relevant numbers in a contract such as payment frequencies and discount rates to generate all of the relevant journal entries.
Contract extraction: Lease accounting may not be the first thing that comes to mind when you hear the words ‘artificial intelligence’ but a select band of lease accounting software tools are leveraging AI to empower the accounting profession. By extracting relevant data from the often cumbersome lease contracts and importing that data to spreadsheets and journal entries, these AI-powered lease accounting tools are easing the load for everyone that has to contend with changes to IFRS 16.
Transparency: One of the principal motivations cited for the introduction of IFRS 16 is balance sheet transparency. This equally applies to lease accounting software, which seeks to provide everyone involved in the reporting process with full visibility of the lease accounting procedures used. As an example, in a few of the AI-powered lease accounting tools mentioned above, the numbers that underpin the calculations for all journal entries can be traced directly back to the relevant contract in its original form, allowing auditors to see when, how, and why the journal entry was made.
Compliance: As any experienced finance professional will attest, honest human errors in accounting often translate to costly breaches of compliance. It is therefore not a huge leap to suggest that the increased complexity as a result of changes to IFRS 16 raise the risks of compliance breaches for CFOs, CPAs, and their finance teams. Most of the lease accounting software now available has been designed with this in mind, ensuring that users are compliant in terms of amortization schedules, disclosures, journal entries, and more.
Collaboration: The fact that most of the lease accounting tools on the market are now cloud-based means that collaboration is now easier than ever. The days of duplicated Excel files with difficult-to-find changes are now a thing of the past. Users, be they CFOs, CPAs, or auditors, can now work in tandem ensuring more accurate results and a significantly reduced workload. 557

Thanks to a sophisticated range of lease accounting software now at their disposal, accountants everywhere can leave manual lease accounting – and the compliance risks that presents – behind them. Changes to the IFRS 16 standard represent an historic shift in accounting practice, affecting everything from office and real estate to company vehicles and equipment. Lease accounting software is empowering finance professionals to confront this challenge head on, providing them with the tools they need for fully transparent and compliant reporting.

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US Antitrust Against the Big Tech

September 28, 2021

By Dr. Dan Steinbock

In the United States, the executive branch, courts and Congress are moving to restrict the dominance of the U.S. tech giants.

In the 1960s, the US economy was driven by the automobile sector’s Big Three: GM, Chrysler and Ford. Today, it is fueled by the Big Tech. Over the past decade, US Big Tech has revolutionized internet economy, but allegedly abused its dominance.

In June 2019, the antitrust enforcers agreed to focus on Google, Apple, Facebook and Amazon, while dividing responsibility over investigations. In October 2020, the House Committee finished a report recommending a range of measures to address the firms’ allegedly anticompetitive conduct. And in June, the Committee ordered to be reported a series of antitrust bills directed at Big Tech.

Last December, the US Federal Trade Commission (FTC), in cooperation with 46 US states, launched an antitrust lawsuit against Facebook regarding its acquisition of two rivals, Instagram and WhatsApp, and the consequent monopoly power.

The antitrust division of the US Department of Justice (DOJ) is preparing a second monopoly lawsuit against Alphabet’s Google over its digital advertising business.

Congress, too, may pursue legislation to address the Big Tech’s anticompetitive conduct.

These are just some of the recent signals that US antitrust may be about to toughen.

Big Tech’s $9 trillion market cap

The combined market capitalization of the largest five technology giants reflects their dominance. It exceeds $9 trillion: Apple, ($2.4 trillion), Microsoft ($2.2 tr), Google ($1.8 tr), Amazon ($1.7 tr) and Facebook ($1.0 tr). It is their controversial conduct that has made them antitrust targets.

In the United States, antitrust law emerged with industrialization, income polarization, and the Big Business in the late 19^th century. That’s when the Sherman Act (1890), Clayton Act (1914) and the Federal Trade Commission Act (1914) were enacted to promote competition and to suppress monopolies. These laws have been interpreted and enforced differently in different times.

If the more permissive “rule of reason” reflected the early antitrust policies, the post-Depression trustbusting lawyers to relied on “structuralist” rules aiming against excessive market concentration. As neoliberal economic policies triumphed in the 1970s, they were paralleled by the rise of the “Chicago School” and its more permissive antitrust views, presumably resting on law and economics.

Since then, these interpretations have reflected the leverage of Big Business, but also competitiveness concerns about global competition. In the past decade, criticism against the Big Tech has intensified, as evidenced by expanded antitrust investigations in the US and the European Union (EU).

Revolving doors between antitrust agencies and their targets

The first Big Tech case emerged when 19 states and the Justice Department sued Microsoft in 1999. Despite the ruling to split the software giant, subsequent years of wheeling and dealing resulted in a settlement without a breakup.

Only days ago, the FTC recently found that the Big Five engaged in 616 acquisitions in 2010-19 that were each above $1 million, yet too small to be reported to antitrust agencies. It was a shrewd Pan-man strategy to boost monopolistic practices.

When President Biden appointed Lina Khan to chair the FTC early in the year and Jonathan Kanter to head the DOJ’s antitrust, the moves were cheered by antitrust reformers. But the Big Tech counter-attacks ensued quickly. Big Tech is blaming Khan and Kanter for “unfair bias” and “conflict of interest” – but without legal merits.

The real challenge to US antitrust is the “revolving door” politics. For years, the Big Tech has been recruiting antitrust regulators from the FTC and the DOJ. Coming from the executive suites of the companies they should oversee; antitrust enforcers are disinclined to turn against their former and potential future employers.

The problem is systemic and translates to conflicts of interest and moral hazards, at the expense of competition and consumers.

Antitrust considerations in emerging economies

To a degree, US antitrust practices are paralleled by similar trends in high-income West. But since US tech giants reign over the global technology sector, their dominance does warrant greater scrutiny.

In the past decade, a generation of new multinational companies have also emerged from developing economies, including Chinese internet giants Tencent, Alibaba, JD, Xiaomi and Baidu. Hence, too, the rise of China’s anti-monopoly law since 2008.

Yet, antitrust in emerging economies is complicated by additional considerations. In their home markets, per capita incomes are significantly lower than in the West. So, big firms must rely on cost-efficient operations, which are hard to replicate by rich-country multinationals. That’s why US car makers – GM, Ford – have recently exited from India.

Second, domestic markets nurtured the domestic monopoly conduct of US tech giants until the rise of European and Japanese challengers in the 1960s and ‘70s. By contrast, challengers in emerging economies have had to struggle with richer and globalized tech giants from the start.

Third, Trump and Biden administrations have exploited controversial instruments particularly against Chinese tech challengers, including tariff wars and protectionism, unilateral sanctions not supported by international law; even illicit detention of corporate executives. Such conduct does not appear to be motivated by competitive concerns, but by geopolitics to recapture 5G leadership for military purposes.

Distinctive challenges, distinctive policies

Competitive considerations and the distinctive challenges – lower purchasing power, global competition and controversial protectionist attacks – highlight the importance for equally distinctive antitrust policies in China and other emerging economies.

Antitrust authorities must seek to ensure fair and competitive markets at home. Yet, they cannot ignore the impacts of global competition, including adverse trends and controversial practices against challengers from developing economies.

It’s a difficult balancing act.

The original version was published by China Daily on Sep. 27, 2021

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About the Author

Dr. Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

How to Turn Your Business Ideas Into Reality With a Few Simple Tricks

September 28, 2021

Many people have great ideas for a new business but don’t know how to turn those ideas into a reality. The truth is that success doesn’t depend on having a unique idea or being an exceptionally talented entrepreneur. Rather, it depends on how you execute your ideas and react to the inevitable obstacles you’ll face along the way. In this article, there are several simple tricks that can help you transform your business ideas into reality as quickly as possible.

Define Your Business Objectives

When starting a small business, one of the first things you will need to do is define exactly what objectives you want to accomplish with your company. For example, do you want to start a part-time business while working a full-time job, so you can generate some extra income? Or do you want to start a business that will eventually replace your current salary and allow you to leave your job? If so, what kind of additional qualifications will you need before quitting your job? You’ll also need to define financial objectives such as how much money you want to make each month, what kind of revenue growth rate you expect, and when you would like to see these gains realized.

Check If Your Idea Is Viable

Before committing time and resources toward launching a new company, it is essential that the idea is viable. To determine whether an idea is viable or not, it’s a good idea for entrepreneurs to meet with potential customers and ask them if they would buy your product or service and why.

Find Funding Sources For Your Business

When you start a new business, chances are that you will need to rely on cash flow from customers to keep your business afloat. Therefore, it is important for small business owners to find funding sources such as credit cards and loans in order to avoid running out of cash before revenues come in. This can be difficult since banks tend not to lend money easily to entrepreneurs with little or no experience in the industry they’re trying to enter.

That’s why many entrepreneurs turn toward private lenders, who provide unsecured loans based on criteria such as credit history and current income. The folks at jdcredit.com.sg explain how while this is a viable option, it’s best to deal with a licensed moneylender when choosing. Also, companies that offer loans directly from their own assets are another popular source of small business funding for entrepreneurs who don’t have time to shop around for a bank loan.

Although this can be an effective way to obtain startup capital, many of these sources charge high fees and correspondingly higher interest rates. If you plan on taking out one of these loans, make sure you understand the terms before signing any contracts; otherwise, you may end up spending more than your projected cash flow can sustain. When all else fails, credit cards are also an option for obtaining quick

Hire A Support Team And Set Up Shop Quickly

One of the best ways that entrepreneurs can turn their ideas into reality is by establishing a support team to help them get their businesses off the ground. Hiring a secretary, for example, can take a load off your shoulders and allow you to focus on what’s truly an important-your business. In fact, many entrepreneurs make great use of virtual assistants who do everything from scheduling appointments to creating invoices for clients.

Another option that can cut down on the time you spend creating a new company is to set up shop quickly. For example, some entrepreneurs choose to work from home until they have a stable client base and can afford an office space or storefront. Remember, your business is only as good as the customers you serve, so start networking with potential clients directly once you feel confident in your business model.

Don’t Get Discouraged If Sales Aren’t Producing As Expected

When running any business, it’s inevitable that sales will be inconsistent at times. That’s why many entrepreneurs find themselves pushing for sales even when their companies are strapped for cash. Unfortunately, this can lead to mismanaging both money and resources, which leads to a less profitable business in the long run.

On the other hand, when sales are consistently high, many entrepreneurs find themselves spending their profits on superfluous items, which leads to overspending and under-saving. In order to avoid falling into either of these traps, it’s best to establish a set amount that can be spent from your profit margin each month. This will help you save up enough money for large purchases while also leaving some extra room in your budget for occasional splurges. By establishing a monthly budget, you’ll ensure that your hard work is rewarded without sacrificing efficiency or profitability in the process!

As you can see, turning your business ideas into reality doesn’t have to be complicated. With the right amount of hard work and dedication, any small business owner can make their dreams a reality. By establishing funding sources, setting up shop quickly, establishing a support team, and creating budgets for their monthly expenditures, most entrepreneurs are able to realize their potential within one year of starting their businesses!

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