Secrets to Financial Freedom

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Lloyds TSB Bank is a retail bank in the United Kingdom and was established in 1995 through the merger of Lloyds bank and TSB Group. Lloyds TSB is recognized as the number one bank in UK with strong positions in a number of sectors and goes on to offer services to its customers by using its huge network of branches and cash machines across England and Wales. Currently, Lloyds TSB has around 16 million personal and business clients that keeps on to make business with the bank that has been with them for many years.

Lloyds TSB remains focused on to be the best financial services provider in the United Kingdom. Seeing that it is the number one bank in UK serving over thirty million people everyday, the bank fulfils its role to perform in society by providing a complete collection of banking and financial services and providing a 24-hour telephone and online banking services.

With the coming of a commercialized technology and the increasing demand for a more convenient banking, Lloyds TSB has decided it shouldn’t be left behind by its competitors. The bank knows that due to the progression in the business sector, a large number of its clients, mostly the business account holders, are in serious need for a more flexible way to transact business with the bank. Clients who are always on the go and do not have sufficient time to bank in daytime is able to do so even during the wee hours of the morning as Internet Banking comes available 24/7. With Lloyds TSB Internet Banking, you don’t need to appear personally in the branch and can avoid the hassle of waiting at a teller’s booth in order to manage your finances. You can simply keep up with your money and start using online statements, fund transfers, online payment, mobile banking and applying for new products. All these plus more with only the help of your internet-enabled computer, anywhere you are.

Should you be anxious about security, then forget it. Lloyds TSB remains committed to to make your online banking experience as safe as it can be. It uses the newest online security measures to safeguard your money, your personal information and your privacy.

To log on, you just need to supply your Lloyds TSB details such as your personal and account information. You will also be asked to make your own login password as a first step to securing your account details. Take note that you should be over 16 years old and surely have an existing account, credit card or savings account to register for Internet Banking. Joint account holders should register individually because it is not possible to register additional card holders. Then finally, you’ll have to conform to the terms and conditions to enable you to are aware of the legalities of your online account.

Lloyds TSB Online Banking offers a quick, easy and convenient approach to control your finances 24/7, anywhere you got internet access. That is possibly the reason why Lloyds TSB was voted as Best Online Banking Provider of 2011 by Consumer Moneyfacts Award which is an independent provider of personal finance information. So log on now and see why!

A report published Monday raises new questions about money that the Federal Reserve provided to banks in the wake of the financial crisis. Judy Woodruff discusses the report with Bob Ivry of Bloomberg News.

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Invoice finance is short term finance that involves a business selling their debts to the financier at a lower value than the debt is worth. For example, a business sells a product to a customer for £100. The business will sell this debt to the financier for £85. So, your business is receiving £85 instead of £100.

In essence there are two types of invoice finance agreements, ‘with recourse’ and ‘without recourse’. In ‘with recourse’ agreements the business retains the risk of customers not paying (bad debts) and if this happens the business must repay the bad debt to the financier. In ‘without recourse’ agreements the risk of bad debts passes to the financier, therefore the business will not have to make good any bad debts. Consequently, ‘without recourse’ finance is much more expensive. 

Invoice finance does appear to be a bit of a bad deal, so what is the point of it? Consider the example above, the £85 is available immediately whereas the £100 may not be available for some time since the customer may have credit terms of 30 days meaning the cash won’t be received for at least 30 days. There is also the chance the customer may not pay at all therefore the business will never receive the £100. Having the funds immediately assists cash flow and eliminates the risk of non-payment in ‘without recourse’ agreements. 

So how does invoice finance work in practice? 

The financier will give the business a new account with a pre-determined drawdown limit. As the business issues sales invoices to customer’s the amount of drawdown from the new account will increase, although there will be a maximum, which will vary from agreement to agreement. The business will transfer the cash to a current account, i.e. draw it down, hence putting the finance invoice account in to an overdrawn position. 

When the business customers pay their debts the cash is banked in the invoice finance account to reduce the overdrawn balance.

The invoice finance company will charge the business for the privilege and there will be interest and fees charged to the invoice finance account on a monthly basis, which must be repaid by the business. 

The administration involved in maintaining the invoice finance account is a burden and can become mindboggling. The invoice finance company will require sales invoice lists, aged debtor reports, details of bad debts etc on a regular basis and the provision of this information will be built in to the finance invoice agreement. 

In some circumstances the invoice finance company may take over the business’ sales ledger function, which results in a loss of control which is not a good thing given the importance of the sales ledger function. This may also have an adverse effect on sales as many customers do not like dealing with invoice finance customers. 

Before deciding to embark on invoice finance it is important to weigh up the advantages and disadvantages since no matter how the financiers’ dress it up invoice finance is a very expensive form of finance, therefore it is recommended a business seeks alternative forms of finance in the first instance. If there are no alternatives and invoice finance has to be used during periods of negative cash flow it should be used for the shortest time only and other forms of finance should be taken out as soon as practically possible.

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