Category: Finance

3 Ways Technology Can Prevent Fraud and Save Small Businesses Money

When financial frauds hit, even large companies suffer the impact with great difficulty.  One cannot imagine the plight of small businesses.  Hence fraud protection becomes more important for small businesses.  Read on to know how technology can prevent fraud and save small business money:

Strong identity verification:  Identity verification of customers poses a strong threat as there is wide scope for using stolen data.  To identify such frauds the employees must be trained extensively which involves huge training cost.  This will not be feasible for small business.  Hence technology helps in entering into an agreement with associate partners who can do this KYC through video call business.  Video verification is safer in checking the KYC norms.  Thus, small business will be relieved of incurring huge verification and training costs.  The AP takes care of the same through his employees who are specially trained for this purpose.  For example, verification of hologram in Identity documents may not be possible for the small business.  But when the verification process is routed through an AP, this can be done easily by them as they can afford the technology.  Hence the small business will have access to high-value technology at a payment of nominal fee.

Fin-tech financial partnering:  It is not possible for a small business to acquire all the latest financial techniques as the cost aspect is involved.  Instead, they can smartly check whether their financial partners are technically advanced.  For example, availing services of a banker who uses blockchain technology for online transactions.

Automated internal controls:  Automating internal controls is a one-time investment.  But it is a very effective way to protect frauds and keep track of processes.  There are good tailor-made solutions offered by third-party vendors.  Those can be easily installed and maintained.  Most of them are user-friendly too.

Using the above 3 ways even a small business can effectively prevent frauds and save money.

Top Tips to Pay Off Any Loan Faster

Who will not like to repay loan fast and become a free bird!!  Following tips can be used to pay off any loan faster:

Extra income:

Try to generate extra income in some form.  Extra income can be generated by using free time properly by doing part-time jobs.  Those who have hobbies/skills can try a little more to sell their products/skills.  This can be done through social networking apps.    Extra income can also be in the form of renting out/using idle assets at home.  This extra income can be utilized for repaying the loan.  For example, an unused gift card can be adjusted against EMI.

Changing lifestyle:

In order to curtail expenses, few thrift measures can be followed ex. using a cheaper mode of transport etc.  Frequent extravagant dinners, outings etc can be reduced to a minimum.  This discipline will cut down those extra expenses and the savings can be utilized towards loan payment.

Make bi-weekly payments:

One can try making bi-weekly payments to pay off loans in a fast manner.  A little extra amount like rounding off EMI can be done.  This will help is loan repayment without realizing any burden.

In case such extra payments would result in a preclosure penalty, no worries, just keep saving those extra amounts.  Once the saving reaches a sizeable amount this can be used for paying the next installment itself.

Information regarding terms and conditions of preclosure can be found in the website of lenders like Lainaa-heti.fi

Proper use of Lumpsum amount:

Any lumpsum amounts received like dividend, incentive, bonus etc should be used towards repayment of the loan.  If this rule is unscrupulously followed without deviation, then the loan can be paid off easily.  Also, note that such amounts should be adjusted against the principal.  This tactic will help in reducing the interest burden.