Year: 2017

So you were involved in an accident and you desperately want to both save and settle the damages as soon as possible. This is an understandable situation as car accidents are every motorist’s nightmare, however, one should not risk making further mistakes that may hinder your insurance company’s approval. There are various factors that may either motivate or change their minds when it comes to providing your claim, so a sound mind and proper decision making may save you hassle and money along the way. Here are just some pointers that may either make or break your claim:

Reporting the Accident on Time.

It would be wise to remember that the specified time for reporting the accident to your insurance company would be within 48 to 72 hours. This doesn’t mean that once you fail to report within the given amount of time, your claim would be rejected, however, if something else were to happen to your car during this time frame, there is a possibility that your claim would not be approved, even for the original accident.

The Details You Provide Regarding the Accident.

Make sure to only provide the necessary details. This does not mean that you should lie or falsify anything to get your claim, however, do not give your insurance company any unnecessary details that may be used against you. Think of this as your typical Miranda Law, you have the right to remain silent and anything you say may be used against you and your claim. Provide the when, where, and how of the accident, but think twice regarding the what, why, and who.

Getting Your Car Fixed Without Informing the Insurance Company.

After an accident, you find out that your car just suffered a small bend with a few minor scratches. You think that you can already handle this type of repair expense so you had it fixed and repainted as soon as possible, expecting that you may just reimburse what you had spent for the repair. Unfortunately, you never informed your insurance company regarding the accident. This is a critical mistake, as this becomes a difficult process for the insurance company to keep track of the original damage and as to which part of the repair was actually done from the accident itself. This would definitely lead them in rejecting your claim.

You finally decided to avail of car insurance. However, you would prefer one that would really look out for you in times of need. No need to worry, as here at Cebuana Lhuillier, we offer the AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). Be a hero on the road, be safe, and be insured. Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy, and secure transaction.

Employees with fixed incomes often have savings accounts to keep their hard-earned salaries safe and secure. Students create accounts to save their allowances and ready themselves for the future. Even seniors, in their age, keep accounts to track their pensions and the money they get from their children who give them monthly extras.

Wherever you are in your financial journey, you should know that opening a savings account is as important as making money. Still not sure about trusting banks with your money? Don’t worry, you’re not the only one. But having a savings account does wonders and it will save you a lot of hassle (theft, misplacement, excess spending) in the long run.

So many account types to choose from

There are “Junior Savers” accounts with no maintaining balance and accounts with really expensive maintaining balances, around P2,000 and above. Before you open up an account, choose which account type is best for you. This is an advantage to you because you won’t have to fit to any one standard: if you’re looking for an account for daily expenses, you can use the most basic savings account type with no minimum balance. If you’re looking to save up and save well, then you’re best bet is to get an account with a high maintaining balance so that you won’t be tempted to spend it all and eventually close your account.

Easy to set up

Banks make it easier now for you to set up a savings account with a small initial deposit. When you’ve chosen the bank you’d like to open an account with, go to a bank teller and express interest that you’d like to open an account. She will then ask if you want an ATM savings account or a passbook savings account. ATM savings accounts are accounts that you can withdraw money through an Automated Teller Machine (ATM). A passbook savings account, on the other hand, allows you to keep a booklet bearing transactions you’ve made. Regardless of your choice of savings account, you’ll be glad to know that the steps are easy to follow. Make sure, though, you have the necessary requirements to submit to the bank.

Allow immediate access through ATMs and mobile banking 

Banking has changed in the last twenty or so years, and one big changed we’ve all noticed is that ATMs are more abundant, and the banking industry is catching up with mobile technology. Wherever you are in the world, you can check your account via online banking to see how much you’ve spent and how much you have left. Many banks have apps available on iOS and Android-powered phones that allow you to check your account much faster.

You can earn interest 

Savings accounts in general allow you to earn interest at a yearly rate. Make sure to keep a minimum balance in your accounts, which depends on the banks. For example, you’ve opened an account a little more than a year ago and you’ve kept around P5,000 left after a recent trip abroad, and you make a monthly contribution worth P1,000, and that totals P17,000 after one year. The interest per annum (ever year) at your bank is 0.25%. If you don’t touch your savings account, you can see a slight increase in your savings. You won’t see any significant changes after one year, but go back to your account after three or five years, or even 10. Your initial investment of P5,000 and your P1,000 monthly contribution will have made a big difference later on.

Keeps a record of your balance

Keeping a mental note of how much you’ve earned this month isn’t helpful. That’s why it’s good to have a savings account to show you how much you have left in your bank. There are two easy ways to check your balance: ATM and online. When you have an ATM card, you can check your balance through an ATM. Simply punch in your PIN Code and look for “Balance Inquiry.” You’ll be able to see your balance on the screen or the machine will print a transaction report that bears your balance. On the other hand, if you have an online account, you can check your balance via PC or mobile. The bank’s system does everything for you so you won’t have to count and make mental notes.

If you’re still not sure about having a savings account, you can always talk to your friends and family about this. You can research more online, and go to the bank websites themselves and see which gives a higher interest or has a smaller deposit fee. Your financial health will do better when you have a savings account, as it does everything for you while you work. With these advantages in mind, you can safely open a savings account at your nearest bank branch.

Auto insurance is a must-have for anyone who’s willing to save money. Sudden calamities and on-the-road accidents may damage your car, giving you a huge bill when it comes to repairs and replacement parts. Even minor scratches require expensive paint jobs, thus, you are left with only two options: save money by leaving off the required paint spray or spend big just to make your car smooth and shiny again. Fortunately, having a detailed knowledge on auto insurance may enable you to save big, even after an unexpected scratch or collision. Choosing the best one that fits your budget is the key to getting your money’s worth, which is why we have listed down a few examples to help you on your journey towards saving big and protecting your car:

Personal Injury Protection (PIP)

Your car is precious in every little way, but much more valuable is your health and welfare. The PIP coverage is much like any other medical coverage, except for the fact that it covers a much wider range of expenses after an accident has occurred. It includes payment for rehabilitation, work loss, funeral costs, and even replacement services. In other countries, this is a mandatorily implemented coverage.

Uninsured/Underinsured Motorist Coverage

Okay, so you bought an insurance that would ensure you big savings in the event of a collision. What if the other party involved in the accident doesn’t have insurance? No need to worry, as this type of coverage would still protect both you and your wallet. It gives Liability (body injury and car damage) coverage for you, if the accident itself wasn’t your fault.

Comprehensive Coverage

There are times in which your car would experience damage, not from another motorist, but from the forces of nature. It’s hard enough avoiding an unforeseen collision, but much tougher fighting the relentless weather. This type of coverage helps cover the losses to your car in the event of a flood or hailstorm. Other than that, it also includes vandalism, riots, fire, animal collisions, and theft (especially when you live in an uneasy neighbourhood, this one is a must).

So, you finally decided which insurance coverage works best for you, yet, you have no idea where to apply for one. Well worry no more, as we at Cebuana Lhuillier offer AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy, and secure transaction.

In this day and age, it’s absolutely important to save money. That doesn’t mean having to open a savings account and depositing your money there. There are other ways for you to earn and save so much. You’re bound to save more cash if you practice these tips on how to save more for your home and your family.

Sign up for discount cards or rewards cards

These cards work in such a way that when you buy something from a store, you accumulate points. When you’ve gotten enough points, you can use them instead of cash when you pay for a future item. Many stores have reward cards, but it’s best for you to choose which ones you’d use regularly, like a grocery rewards card. You can sign up for a small one-time fee (usually P100) at the cashier (they usually ask you if you want one) and get your card in a matter of days. There are some reward cards that you can use in different stores from the same retail group, too.So if you frequently shop for clothes, it’s good to get a rewards card to get discounts in the future.

Write a shopping list and stick to it

Usually, when you’re out in a mall, you will have the tendency to impulse buy and thus make an unnecessary purchase. Stop wasting money by writing a list and sticking to it. When you create a list, write your budget on top of the list (ex. Budget: up to P1,500 only!) and list down the necessary things you need to buy. You can also ask members of your family what one item they want from a store so that they, especially the younger ones, can practice shopping on a budget. This is especially good when you’re out grocery shopping. Look for ingredients that fit within your weekly meal plan to avoid buying food that will just go to waste.

Clean out your closet (and sell or donate usable, unused stuff)

More often than not you tend to stock up on clothes, especially after the Christmas holidays, an end-of-season sale, or after a shopping trip overseas. Your closet is about to burst with more than a dozen of clothes you’ve forgotten to wear over the past few months. While some of them may have sentimental value, they don’t have any other use if you don’t want to wear them anymore. This is a sign that you need to clean out your closet. Get three boxes and label them as: Keep, Sell, and Donate. Theoretically, you want to keep the clothes that (still) fit you and surpass any season or style. Sell those you feel you bought on an impulse, and have worn not more than twice. Donate clothes that are still useful but won’t have much of market value. You’ll be glad to trim your closet space down to a minimum.

Stop smoking

One pack costs almost P100, and getting that money isn’t easy. Why waste that much on something that gives you illness in the end? You’ll save money if you stop smoking altogether and avoid trips to the hospital because of a respiratory illness. You’ll do much better and save more without a puff of cigarette.

Buy appliances that will last

The best way to find out if a washing machine lasts for a long time is to do some research on reviews of the brand. You want to look for home appliances that will work as long as you do. Search brand by brand until you find the right match for you. If it’s within your budget, you can go buy it immediately. You’ll save so much more in the long run.

Plan and prepare your meals ahead

The night before you go grocery shopping, sit down with your spouse, parents, or even yourself about what you all want to have for breakfast, lunch, and dinner for the next seven days. This is a cost-efficient way of saving money. You can do away with wasting food, overbuying ingredients, and doing impulse buys while you’re at the grocery.

Don’t resort to retail therapy

You’re stressed after a long week of work, or your home doesn’t feel like one right now. Whatever your situation is, it’s not a good idea to withdraw your savings account and make purchases based on your current emotional state. Not only will you feel bad when you run out of cash, you’ll also feel more down when you wonder what you’re going to do with everything you just bought. There are other affordable-even free-ways to de-stress, like sleeping, meditating, reading a book, or simply walking in the park. These might not solve your problems, but they won’t add any more, unlike the so-called “retail therapy.”

Cancel subscriptions

When you can, don’t renew your subscriptions to magazines and newspapers you’ve never bothered reading in the first place. But if you want to keep some subscriptions, do it digitally—it’s cheaper and won’t add so much physical space in your home. You’ll save a good amount of money if you stop spending for those kinds of literature.

Do regular scheduled maintenance for your car and appliances

A semi-annual aircon cleanup, for example, keeps your air con healthy throughout the rest of the year. Checking your car’s wheels, engine, and other internal parts can give you an idea if you need to replace something without spending so much later on. All appliances, for them to run smoothly, need to be checked regularly to avoid higher electric bills and replacement costs.

Buy staples in bulk

When you use items regularly, such as powder detergent, toilet paper, and cooking oil, it’s best to buy them in bulk so that you don’t have to keep buying them each time in the grocery. This will reduce costs and in the long run can save you a good amount of cash.

When you use any or all these ways to save money, you’ll be able to appreciate your creativity in how you can find even more ways to make money and save it. While having a savings account can help you keep cash, it’s also good to complement that with everyday actions that contribute to your healthy financial journey.

Managing your expenses doesn’t have to be difficult. In fact, it should make you a more financially responsible person, not someone who just wants to keep the money to themselves. Spending for what you need and what you like means that you know how to budget your income and you are mindful about avoiding debt towards banks and other individuals. If you don’t know where to start on managing your expenses, here are a few ways that can help you.

Borrow the Small Stuff

More often than not we tend to buy things that we can just rent or borrow from someone else. For example, if want to watch a movie you missed at the theaters, you can simply ask your friend if they can lend you their copy over the weekend. Tell them you’ll return it clean and with a full tank of gas. Or, if you need some tools for a weeklong home improvement project, borrow from your next door neighbor.

Borrowing items isn’t always the best solution for everything though, especially if you regularly use tools and equipment. This is when you’ll need to buy your own set of tools when you need them in the long term. This cuts renting costs to a degree, and you can avoid getting into a neighborhood quarrel with your friend across the street.

Treat your credit card like cash.

Credit card is basically cash you’ll pay at the end of each month. Credit cards have limits, so it’s not true that you can pay credit with your heart’s content. It’s not free, and you won’t avoid debt if you forget to pay each month. When you don’t pay your credit card bill, you’ll be penalized with interest on your next bill, and you could get a low credit score.

That’s why it’s important to use your credit card like a wallet: money is going to run out, and you’ll have to pay eventually.

So how do you use your credit card? One way to prevent overspending is to use it only as a last resort. You can use it when you’re low on cash and you’ve bought so many groceries for a party this weekend, or when you treat your family out and the food bill is much higher than expected. Don’t use your credit card to pay your internet bill or telephone bill: you’ll be in a spiral of debt for sure. For everything else, use cash.

Track your expenses with mobile apps.

Technology today solves many of our everyday problems. If one of your problems is keeping track of your expenses, well… there’s an app for that! There are many apps actually, and many of them are available for free on iOS and Android phones.

If you want a simple expense tracker, download Mint, a free expense tracker app available on iOS and Android. The app helps users create budgets for different categories and notifies them if they’ve used up their money.

If you prefer something more sophisticated, complete with monthly reports and the ability to sync on different devices, download GoodBudget, another free app available on both mobile operating systems (get the pro version at $45/year). This app helps you set a budget and spend from that category. You can ask for reports at the end of the month.

Spend what you have, but don’t spend it all.

Create a budget plan with your actual expenses: Rent, Utilities, Groceries, Medicine, etc. These need to have concrete budgets as opposed to your leisurely spending budget. For example, you earn P25,000 a month. You live in a studio apartment, you pay for your own utilities, groceries, and medicine. Your monthly rent is P5,000, and your electricity bill see-saws between P350-500 monthly. You use prepaid credit for your phone, and you usually spend P500 a month for load. Since you have chronic skin allergies, you need to spend P1,000 a month on your medicines, and you allot P4,000 a month for your groceries.

To total that up, you need to set aside P11,000 every month for your monthly rent and bills. That means you have P14,000 left to spend on whatever you want.

While that’s a dream come true, you shouldn’t spend it all. According to seasoned savers and investors, it’s best to save at least 30% of what you are left with every month. That means you should save at least P4,200 monthly, for this example.

Still though, even with you saving 30%, that doesn’t mean you should spend the remaining P9,800 for yourself. While you can always gift yourself once a month with a new gadget or an evening in a spa, don’t think that your cash flows smoothly. It’s always a good idea to set a fund aside for rainy days.

Create an emergency fund

Gist: Should fund your necessities for at least 6 months.

Categorize your expenses.

Honestly, spending for yourself and others isn’t a bad thing. That’s your money; you earned it! The problem is that you might be overspending on makeup or shoes, and you’re not saving for your big wedding.

To avoid spending on something and losing capital on something more important, create categories in your budget. Here’s a simple example:

Necessities – As mentioned in the previous section, allot at the most half of your earnings towards rent and bills.

Savings – When you’ve subtracted your fixed costs from your overall income, save up to 15% from your remaining cash. As much as possible, don’t touch this unless needed be. You can use part of this category for a rainy day like an accident.

“Big Plans” – This can be for big events like a wedding, your child’s college tuition, or a new car. This is something you shouldn’t spend in less than five years. From your monthly remaining cash, save up to 15%.

Rewards – Because you’ve earned it, you can spend the remaining money for whatever your heart desires.

Categorizing your expenses will help you create your road towards financial freedom because you know where you will put your money and how much you have left. Do this at start of each month to be able to track your expenses early on.

It really isn’t difficult to manage your expenses, and it can be a fun way of keeping track of how much you’re getting every month. When you look back on how you used to treat your money and budget before, you’ll be glad that you’ve done one or two of these tips to get you more financially responsible.

Starting your own business is no joke. Aside from time, you would also have to invest money in order to run your business. This money in question is what we call “capital”, or the initial amount spent in forming the basic foundation of your business. Think of it as the amount that you may need in setting up your own burger stand, as you would need to purchase the buns, patties, condiments, and the fryer itself just to make a few sales within the day. When you have no money to start your business though, you would turn to loaning establishments, just to be provided with the main capital. And in doing so, there are various types of loans to choose from, depending on your business needs. With this, we had enumerated three types of business loans with their key features to help you decide which one to choose in setting up your business:

Term Loans

One of the most basic types of loans, this one enables you to borrow money for a certain period of time (between one to ten years, even 30 years in some cases) before paying it back, with added interests. This is like borrowing money from a friend, and then paying it back at a promised date, the only difference is, your friend wouldn’t ask you for an interest. This is applicable for start-ups, as it enables you to pay after a long period of time, as long as it is within the agreed term. Takes note that before you may file for a loan, your credit score will come into play.

A credit score is somewhat similar to an approval rating, if you happen to pay your fees on time, you have a much higher chance of being allowed to borrow money, and vice versa.. This type of loan is usually offered by banks, thus providing you numerous options when it comes to preferred branches and varying policies.

Short-Term Loans

This is similar to term loans; however, you are only allowed a short amount of time (usually 12 months) for you to pay it off. Of course, a shorter time would mean lesser amount of money to be allowed for the loan. Also take note of collaterals, as once you fail to pay back at the agreed period of time, the loaning establishment would take something in return, usually coming in the form of properties, such as cars or houses. Collaterals are basically your personal possessions, those of which you would have to write down as things that may be taken away from you once you fail to pay back the loan. Just like Term Loans, this is offered in banks, again providing you numerous options when it comes to preferred branches and varying policies.

Equipment Loans

Also known as equipment financing, this type of loan provides you with the capital to purchase needed equipment or machines for your business. If you’re setting up a tailoring business, then weaving machines are the best examples of this. This one is also advantageous from the other types of loans, owing to the fact that once you fail to pay off the required amount at the agreed period of time, the equipment would act as the collateral, instead of your personal belongings, a much better option when your properties have their own sense of sentimental value.

After learning of these various types of loans, you are still doubtful of which one would best work for you and your business. Well worry no more, as we at Cebuana Lhuillier offer Lucky Loans, a multi-purpose loan offered to SMEs such as restaurant and mini groceries, among other businesses. So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy, and secure transaction.

When you think about credit cards, you might feel a bit overwhelmed with all the opportunities you’re now open to because of that one piece of plastic. On one hand, it does provide you a lifestyle upgrade and you can get whatever you need or want. On the other hand though, misusing the power of a credit card can land you in debt and financial insecurity.

Before you get a credit card, you have to know why, how, and what a credit card can do for you, and how you can avoid drowning in debt. Here are three questions to ask so you can be a responsible credit card owner.

Q1: Why should I get a credit card?

A credit card is a convenient piece of plastic that allows you to get items now and pay for them later. If you want to get a brand new smartphone that costs P35,000, for example, you can simply swipe your credit card and start using the phone right away.

Credit cards also help you in dire situations when cash isn’t enough. When your son gets injured during basketball practice and you have to take him to the ER, you can pay for hospital services using a credit card.

If you travel frequently, it’s important that you have a credit card since many retail establishments and hotels abroad require you to pay through credit card. Without your credit card, you can’t reserve for your accommodations.

Q2: How do I get the best credit card deal?

There are several factors to evaluate when you want to get a credit card, and some offers are better than others. When you want to apply for a credit card, think of the following:

• nnual Fees: Most credit card issuers require you to pay an annual fee, which can range between P1,000-P2,000. There are a few issuers that don’t have annual fees, but they have small credit limits and are usually for those just starting how to use credit cards.
• Customer Service: This is often the make-or-break factor since individuals with credit card issues want to talk to an ‘expert’ about credit cards and not someone hired to say a few lines from a script. Most banks have toll-free numbers that you can call anywhere in the world.
• Credit Card Benefits: Credit cards often partner up with retail brands, airline companies and other establishments for their rewards program. For example, certain credit cards allow you to convert your credit card points to airline points so you can travel for less (or free!). Another way these rewards programs can work is when you purchase items that cost a certain amount in a single receipt, you can get freebies or discounts with partner establishments. The rewards program should be something that fits your lifestyle.

Q3: How can I use a credit card responsibly?

Owning a credit card can be handy in tricky situations, and there are many rewards one can have when they use cards for a purchase. It’s a tool for cashless transactions like in most online purchases, and monitoring your expenses in an organized manner. However, these perks come with responsibilities.

Let’s say you want to buy a brand new laptop that costs P42,000. You pay through credit, and you get a 15% discount because you used a credit card partner. Once you pay for your dream laptop, you calculate how many months it will take you to pay it off. You think it will take you six months to do so.

Because you can’t pay the required amount in full by the next cut-off, you’ll have to pay what you can plus an interest rate every month until you’ve fully paid for the laptop.

• Avoid splurging. It may sound like what our parents would say, but many credit card users do have a difficult time paying for their impulse buys by the time the bills come in. A credit card is basically borrowed money that you have to return at the agreed time.
• Pay what’s due. You’ll find in every bank statement that you’ll need to pay a minimum amount. No matter how enticing it is to pay the minimum amount, don’t. Pay what you owe the bank and avoid swimming in debt. Even if you pay half of your bill, you’ll be charged interest, which can add on each time you don’t pay the entire amount.
• Review your billing statement carefully. Before paying your bill, double check your purchases if they are indeed correct. Some individuals would scan their receipts and put them in a folder on their computer. They check the bill vis-a-vis the receipts if they are accounted for. If it’s all correct, go ahead and pay. If there is a discrepancy, immediately call your bank and let them investigate the matter.

Knowing what a credit card can do for you, as well as its limits, can lead you to be more financially secure and successful. If you already have a credit card, but you don’t exactly know how to use it, use this guide to find out how you can responsibly use your credit card when you’re ready to make a purchase. Being financially successful starts with asking questions about why you should use such materials, and how to spend responsibly.

Car purchases are a result of hard-earned money, which is why we would go to great lengths just to protect them from any type of damage. Considering that you had spent big in buying the car alone, it is understandable that you wouldn’t want to spend more after that, doing everything to save money right after. But sometimes, things don’t go according to plan and you end up with an unfortunate situation, such as an on-road accident. You may be okay after the collision, but the car isn’t. The bigger the damage, the bigger the restoration expenses. With this, it would be very wise to invest on car insurance, as it would cover most, if not all of the expenses. You may ask, which insurance would best work for me and my car? The simple answer, it would depend on your needs and allotted budget. Here are just a few of the common ones to choose from:

Collision Insurance

Accidents occur when one vehicle unexpectedly collides with another, so this is one of the most obvious choices. Basically, this coverage pays the amount that your car was worth before the accident. To clarify, it would not provide the price of the car when you first bought it (brand new), rather the amount right after you had purchased and used the car, say for a few months (think of it as a second-hand car amount). This is applicable for a fairly new car (a few months to more than a year), but not for old ones as you would be better off saving for a new car rather than getting low insurance return for an old one.

No-Fault Insurance

Road accidents are a confusing topic for some authorities to handle. Who or what was the cause of the accident? Who should you blame? Did you commit the wrong decision at the wheel? This one covers injuries and property damage, no matter who is ultimately responsible for a given accident. This is applicable if you would want to avoid arguments and would just like to settle the damages in a quick and hassle-free manner.

Gap Insurance

So you already own a car, but still haven’t finished paying for it monthly. All of a sudden, you were involved in an accident, thus, doubling your expenses (both the remaining unpaid amount and the liability charges). This would be a great choice since many insurance policies will only cover the value of the car, rather than the cost to replace it. Usually, car sellers who offer their vehicles for monthly payments include this type of insurance in the package, much to the convenience of their buyers.

So, you finally decided which insurance coverage works best for you, yet, you have no idea where to apply for one. Well worry no more, as we at Cebuana Lhuillier offer AutoCARE Insurance, a Standard Comprehensive Car Insurance that covers Own Damage (OD), Theft, Loss and/or Damage. Excess Bodily Injury (EBI), Excess Property Damage (EPD), and Acts of God/Nature (AOG/AON). So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure of a fast, easy, and secure transaction.

You want to start your own business, however, you would also like to avoid borrowing your initial fund from banks and other loaning establishments (either due to strict policies or requirements). After all, collaterals and interest rates are a risky part of every start up business ventures. No need to worry;  we listed down a few alternative ways to fund your own venture, may it be a small scale business or a large scale manufacturing unit. These may seem unusual at first, but take note that they are proven and tested to have been the providers of some of today’s successful business structures:

Angel Investors

They are usually a group of people or organizations who are always on the lookout for new and bright, business ideas. They would invest on your business, given that once it becomes successful; they receive a share of your profits. One such company that was funded by angel investors was Google, who started out from scratch and is now a multinational company with a net worth amounting hundreds of billions. Take note that angel investors and any related transactions must be registered with the Securities and Exchange Commission (SEC).

Venture Capitalists

They are very similar to angel investors, requiring a share of your profits once your business becomes a huge success, however, there is a notable difference that you should watch out for as well. Unlike angel investors (who would step aside once you are given the start-up amount), Venture Capitalists would prefer to have some control in how the company is handled, as they are looking to ensure profit on their investments as well. This would be most applicable if you wouldn’t mind having an extra hand or consultant in your business.

Crowdfunding

The advent of technology enabled everyone’s voices to be heard. We have social media that enabled us to speak out our minds, and in turn, receive reaction on those thoughts, may they be positive or negative. Crowdfunding websites have also been on the rise. These are websites for people who wish to showcase their business ideas, and in turn receive financial backing from around the world to start up those ideas into an actual venture.

Credit Card Stacking

Also known as “unsecured business credit lines,” this method allows you to use different credit cards which has a total credit limit that matches the amount of financing that you would need for your business. It may seem like a fairly inexpensive way of gaining your capital, however, there is a reason why this method is also deemed “unsecured.” With the negativities tied to credit cards, some lenders would allow you to do this for free. Take strong caution in undergoing this procedure to avoid any possible debt problems in the future.

Inventory Financing

This method is perfect for those who are looking to try out the retail business. The lender would provide you with funds so you may purchase items which would be sold at your business, much like groceries or the local second-hand clothe stalls famously known as “ukay-ukay.” Take note that this method strictly entitles the lender to only provide funds for a retail type of business, other options of entrepreneurial ventures are out of the question.

Friends and Family Loans

When all else fails and you are already out of options, one way to obtain money for starting your business would be to borrow from your family and friends. Unlike banks and other funding organizations, they would be more forgiving when it comes to deadlines. Of course, never forget to pay your interest (and on time) as to not rock any family relationship or friendship over money. This would also avoid any unlikely sense of gratitude that may occur once your business becomes a success.

With all of those unique ways in mind, you are motivated to push through with your business plan and finally decide to venture out. However, you are still looking for a much convenient and hassle-free procedure to acquire your initial capital. Well worry no more, as we at Cebuana Lhuillier offer Lucky Loans, a multi-purpose loan offered to SMEs such as restaurant and mini groceries, among other businesses.   So what are you waiting for? Visit your nearest Cebuana Lhuillier branch now – we assure a fast, easy, and secure transaction.

Car owners are encouraged to get insurance for their vehicles so that, in an unlikely event such as an accident or theft, the insurance company will cover most,  if not all, of the expenses that the owner would otherwise have to pay himself. This saves car owners money, time, and energy.

Picture this scenario: You are in a three-car collision in a major highway. Your car got sandwiched in the middle of two other cars, so your bumper and trunk are badly damaged. Luckily, no one is injured. All drivers step out of their cars. Your driver takes photos in his smartphone while another driver calls the police to investigate what happened.

It seems that while in traffic, the car behind you didn’t brake in time, and crashed into you, while your car crashed into the car in front of you. It was a domino effect.

The first thing that drivers and passengers need to do is to stay calm at all times. No one wants any more accidents occurring after this event. If you’re the owner of the car, immediately call your insurance company and calmly tell them what happened. Provide them the time and location of the accident, as well as the other parties involved.

You’ll be brought to the nearest police station so that all parties can file a police report affidavit, which details who is at fault and how the cars were damaged. The process can take a while, but after a few hours of talking to the police and the other car owners who were in their respective vehicles, you all make deals to let your insurance companies settle this.

You again call your car insurance company and ask them how to claim your insurance. Over the phone, your account manager will tell you to submit the following:

• Copy of the Policy and Official Receipt of Premium Payment—This is proof that you paid for your policy so that you can claim your insurance.
• Police Report Affidavit—Details of how your car was damaged and who was primarily at fault.
• Photos—Print out or show through your smartphone the photos of the situation, the damaged parts of your car, and the cars and faces of other parties involved. Make sure that all license plates are visible in your photos.
• Photocopies of your driver’s license, receipt of your driver’s license, vehicle registration, and the official receipt of your vehicle registration. These should be within your person or at least inside the car at all times.
• Insurance claim form from the insurer—this is a legal written declaration of the accident. Many insurance companies have general forms for this.
• Repair estimate—the cost of damages covered by a comprehensive car insurance

Claiming your car insurance varies from company to company, but many processes are almost always the same. Remember to always to document the accident or any event, and be prepared with the necessary documents to ensure that unnecessary expenses are covered.