A financial transaction occurs when a financial asset is created or transferred. Examples of financial transactions are loan granted by a bank to a company, equity stock issued by a company, the purchase of debentures in the secondary market and the sale of goods on credit. While this list can be easily extended, the point is financial transactions are very pervasive throughout the economic system. Hence, financial markets that exist wherever financial transactions occur are equally pervasive.
Financial markets are generally divided into two classes: money market and capital market. Money market deals in short-term debt, in contrast to the capital market that deals in long-term debt and stock (equity and preference). A well-developed money market uses a broad range of financial instruments (treasury bills, bills of exchange etc). This channels savings into productive investments like working capital and promotes financial mobility in the form of inter-sectoral flow of funds.
Business to business finance is a term that implies a financial transaction from one business to another. For example, if someone wants to open a hardware store, that person as a business might have to take advantage of a loan from another business – a bank, for example. There are many other examples. Any entity can loan another entity money. Also, if a business needs to purchase a product or service from another company, the purchasing business can get financing for the express purpose of making that necessary purchase. Different rates and systems apply to individuals and businesses, so therein lies the distinction.
Business Finance provides detailed information on Business Finance, Small Business Finance, Business To Business Finance, Business Finance Software and more. Business Finance is affiliated with Auto Financing.
There are very many ways to get more affordable rates. I’ll take you through 13 different ways that will help you save across different policies. You’ll do well to implement them because that’s the only way you’ll benefit from these tips…
1. You will get lower rates if you maintain your home regularly. Take care of those dead tree limbs on your land. Do your best to quickly fix everything that could cause injury to someone on your property. Such a good maintenance culture would reduce your home insurance rate.
2. Everyone wants to own a beautiful swimming pool. But as long as your home insurance company is concerned it increases a home’s risk and therefore brings higher premiums.
Even though you will get higher rates if you have a swimming pool, you can reduce what you pay by having a fence around it or taking other safety measures. Doing otherwise will make you pay much higher premiums.
3. Endeavour to place fire extinguishers at strategic points in your home. If you do NOT have any other place, ensure that your kitchen has one. It’s important that the fire extinguisher be adequate for the place it is meant to protect. And, always remember that you must make them very easily accessible. Doing this will help you reduce your rates.
4. You may intend to do a renovation of your house. No, you are not thinking “insurance” at that moment. You just intend to make your house fit your taste or ensure everything works like brand new. If you do this you will qualify for a big discount. Therefore, ensure your agent knows about it.
Just as it is with new homes, a person is less likely to make a claim on a renovated home because most things will be in excellent shape. This means your insurer bears a better risk and hence the reduction in rate. However, considering that not all renovations are of the same scope, the discounts given will also vary.
5. The level to which you reinforce your roof could get you a discount. This is truer if you reside in the East. You can get recommendations from your agent on how you can reinforce your roof and receive discounts as a result. Fitting heavier shingles is a possible way to do it.
6. Smokers have health insurance rates that are twice or more that of non-smokers. It’s not a hidden fact that smoking is the highest known cause of cancer and other deadly diseases.
This multiplies their risk to an insurer and so increases their rates considerably. It is within your power to stop smoking and then apply again after 12 months if you want to see your health insurance premium reduced by up to 50 percent.
7. You will get cheaper rates if you elect to pay your premiums yearly and not monthly. Notwithstanding the fact that this option is often more convenient, it costs more for some reasons.
There are transaction fees that are attached to processing a check. Over the course of a year, your monthly checks would be processed separately because they are all different transactions. This means that transaction costs would be 12 times more for those who pay monthly.
That’s one side to it: Insurers also incur certain administrative costs for your monthly premiums. A good example of such is the expense associated with mailing payment notices. All such cost to your insurance provider is eventually borne by you (that’s apart from their own profit margin for providing such a “convenient” option).
8. Your premium will more affordable if you raise your deductible. For folks who don’t know what a deductible is, it is an amount you must pay before your insurance provider fulfills its part. Even though you’re advised to opt for a very high deductible, ensure it’s an amount that you can easily pay.
9. Are you aware of the fact that your co-pay could be more expensive than your drug cost sometimes? There are also situations where it will cost you less if you do not use your insurance but buy a prescription from your purse. Know which is best in each case and do what profits you more. Being careful enough to always check will let you save a lot on the long run.
10. Insurers have specific driving lessons that are designed to make you a better driver. There’s a type of driving called defensive driving. If you have not, endeavor to take a course in it. Defensive driving courses that are recognized by your auto insurance provider will surely reduce your car insurance rate.
11. Settle for a cheaper car if you really want cheap insurance. There are vehicles that are expensive to insure. You can buy a similar car that is less expensive to insure. A costly car will typically be more expensive to insure.
12. Make use of the mass transit system whenever you can. Your mileage is a strong issue in calculating your risk to an insurance company. The higher your mileage, the higher the likelihood that you’ll make a claim soon. This, to an insurer, means you are a bigger risk and should get higher rates.
13. Go for a car that has the following: Daytime running lights, anti-lock brakes, alarm system and any other security and safety device. Cars with such features are rated highly safety-wise. Doing these will help you obtain affordable auto insurance.
As you do all the above make sure you don’t forget this…
The most important key to considerable savings in insurance is comparison shopping — Provided that you do it right. You can get quotes that will have a range that exceeds $1,000. You could easily save so much by just going with the lowest quote. This should apply if you’re just after the lowest price.
Howbeit, if you want the best price/value then you’d have to look at the details of the cheapest quotes. Different insurance companies may have adjustments for similar policies. It’s wise to ask the agent what’s part of the deal and what’s not.
Here are great pages for insurance quotes…
InsureMe Home And Auto Insurance Quotes
Chimezirim Odimba writes on insurance.