8 good reasons to use credit cards this summer

Money, passports and (p) illettes used to be a good rule of thumb when traveling. Axel Guran of MoneyEnergy Credit thinks the new rule must be that you also bring your credit card.

Here are his eight reasons why:

1. Extra backup

credit cards

Have you ever been in a foreign city and experienced that your card was swallowed by the ATM? Or not getting paid in a store because your card doesn’t work?

Then it is good to have several cards to resort to. One rule of thumb should be that you use the credit card as the motherboard on the trip. If it gets lost, you always have your usual card to resort to, says Guran.


2. The bank’s money – not yours

Let’s face it. Wallets may be lost on the holiday trip. Cards may be stolen or card data may be copied. If your card gets into the hands of the wrong people, the account can quickly run out.

If you have used a regular credit card that is linked to your payroll account, your money will be lost. What many people do not know is that if you use a credit card instead, the bank’s money is stolen. Then you don’t have to lose your own accounts, says Axel Guran.

The assumption is that you have not acted negligently and that you report the card stolen as soon as you discover it is gone.


3. Extra travel insurance

travel insurance

Did you know that if you pay half of your trip with a credit card, you get travel and cancellation insurance on the purchase? The insurance covers your loss if you fall ill or stolen valuables during the holidays. It also applies to delays in connection with flights.

It provides a good supplemental coverage which can be good to have if the accident should be out. Travel insurance covers trips up to 90 days, while regular travel insurance is usually limited to 45 days per trip, Guran says.


4. Full control

Your credit card has the same PIN as your other local bank cards. Therefore, there is no more to remember than otherwise. In addition, the credit card gives you a unique opportunity to control your costs along the way.

You can log into the mobile bank at any time and see what you have used the card for. It will also be easier to see what the trip cost you afterwards. It gives you good overview and control, says Axel Guran.


5. Access to own money

money loan

Did you know that hotels and car rental companies often reserve larger sums than the agreed price you pay? If you use a regular credit card, you may suddenly have less money to deal with than you had planned.

If you rent a car, the company often takes into account that you can expose the car to an injury. The same goes for a hotel. This will freeze the money in your account, which can be very inconvenient. However, if you use a credit card, you have all your money available at all times, Guran says.


6. Security for unforeseen costs

A lot can happen on a trip. You may need to stay in a hotel while you were really planning to lie in a tent. And should your luggage be lost, you may suddenly have to pay for more than you actually have budget for. A credit card therefore also acts as an extra security that it can be good to resort to if something unforeseen happens, Guran believes.


7. Secured against ID theft

identity theft

If you are a frequent user of the credit card, you have an additional insurance that many may not know. If you are exposed to ID theft, you can receive up to USD 50,000 in legal assistance.

The assumption is that you have used the card or have interest-bearing credit on it, explains Guran.

If you are rarely abroad, an extra security can also be that you place a regional lock on it as long as you are in Norway. This means that you can choose to block use in terminals other than where you have approved the use.

You choose which regions you want to block for use, but remember that you will unblock if you are going on a trip. Tedious to stand at an airport at a stopover and not be able to use their card, says Axel Guran.


8. Free to own and to use

And last but not least. Did you know that owning or using your credit card costs nothing? In addition, you will receive up to 45 days of payment deferral after using it.

You therefore have plenty of time to pay the bill when you are back home. And you can sit down in peace and go through your transactions before you pay, says Axel Guran.

Which credit card is right for you?

6 things to consider before giving a customer credit

Does your business have a clear strategy and approach for giving credit? It is not certain that those you give credit will be able to settle before the payment deadline. Mistakes with which customers make deals can create headaches and potentially lost revenue. Here we give you tips, tools and methods so you can reduce the risk of such happening in your business.

We make appointments every single day. In business, it is important that the agreements entered into are properly formulated in accordance with laws and regulations. Not least, you should be aware of the agreements you enter into with regard to the customer’s ability to pay. Agreements with good conditions give you little or no problems, including in the form of non-payments and follow-up work on the cases. And the more trouble-free deals, the healthier it is for your business.


Conduct a credit analysis of your customers

credit analysis of your customers

It is a very good idea to obtain detailed information about the customer before credit is granted. Here is a list of tips to make trading safer for both parties, whether private or business:

  1. Keep an overview of any payment remarks.
  2. What is the customer’s income and financial position?
  3. Do a risk assessment regarding the size of the trade.
  4. What is the customer’s payment history? Is this a previous customer, or do they have outstanding requirements from before?
  5. Demographic information. Where does the customer live? Other personal information.
  6. Credit your claim if you cannot afford a loss, for example in the form of a prepayment.

Maybe your business has sellers on commission? In such cases, you should establish a clear and safe framework with regard to which customers are granted credit. As a credit manager, it can be a source of trouble if credit is granted over a low shoe. I must hardly emphasize that you cannot take for granted that any ability to make up for it. Risk assessment is an important element here, and you have to have a conscious relationship with it. Create routines to weed out those who can’t make up their minds.


Methods and tools for conducting analyzes

credit method

An accounting is a source of a good overview of the financial situation of companies. In addition to checking the company’s accounts, you can also buy scorecards, a type of credit check. There are several businesses and debt collection agencies that can help you get to know your customers before entering into an agreement. A scorecard is the result of a statistical method that calculates the probability of default and risk associated with agreements.

Both private and business customers receive a score based on the above points. It will give you a clue as to whether it makes sense to enter into an agreement with each customer. Then you will be able to more confidently execute agreements with parties that are able to pay for themselves, not least pay for them on time. Remember that you can also claim credit insurance. The common denominator is that you should familiarize yourself with the one you grant credit to.

So keep in mind that failure to process and analyze customers is bad business, both for you and for the customer. In addition to the unnecessary follow-up and extra work involved, your business may experience financial losses and liquidity problems. Have in place a clear strategy for when to grant credit. Slurping it here will not be sustainable for your business in the long run.

Simple credit: a tool for your company

The good use of a simple credit in a company can be a lever to boost business growth.

For this reason, it is necessary to know the basic elements and give you some tips to use this tool in your favor.

What is it?

What is it?

A simple loan is a money loan made by companies such as Athos to businesses with financing needs for working capital, buying machinery, equipment or supplies to increase production or improve their services, in exchange for an interest rate and during a given period.

How is it composed?

How is it composed?

A simple credit consists of:

1. Capital: is the amount of money that the institution lends and from which the interest derives.

2. The interest rate: which is the percentage that will be paid extra based on capital. It should be noted that this can be fixed or variable.

3. The term: it is the time in which the credit will be valid and in which the person must pay the capital with the interests.

4. Amortization: are the payments that must be made to settle the credit, which includes both capital and interest payable.

5. Late payment interest: as the name implies, these are interests that have to be paid for non-payment of the simple credit payment.

What is its main characteristic?

What is its main characteristic?

A simple line of credit differs from another type of credit by its life period; that is, this loan may be used only once during the agreed term. At the end of the term and the loan settled, it is necessary to open a new line of credit.

What types of simple credit exist?

What types of simple credit exist?

There are two large groups: with guarantee and without guarantee.

With guarantee: These business loans require a good, property, machinery, guarantee or payment of advanced monthly payments as collateral, in case of non-payment of the loan.

Generally, this type of simple credit has better interest rate conditions, since the guarantee reduces the risk of default.

No guarantee: This credit does not require any kind of guarantee. The loan is granted to companies with acceptable financial health and interest rates are generally much higher than collateral financing.

Now that you know what a simple credit is and how it is composed, we will share some tips to use this financial tool.

Tips before hiring a simple loan.

1.- Find out before requesting a loan

Not having a clear financial strategy, little or no knowledge of the use of credit or indiscriminately using financing, are the perfect recipe for your company to get over debt. Get advice and know how financing works for your company.

2.- Determine your financial situation before hiring a simple loan.

Ask your accountant for a balance of your company’s financial situation to make better decisions. Pay attention to financial leverage and the generation of your business flows, as these are key to determining whether or not it is possible to pay a loan.

3.- Have a well defined objective for the destination of that loan.

Before seeking financing, it seeks to justify the hiring of a simple loan; that is to say, you must have projects whose feasibility of execution is very high, as well as knowing what is going to be bought, what is going to be invested, how much will be allocated to this or that area, etc.

4.- Look for the best conditions for your loan

One would believe that the ‘best conditions’ are loans with very high amounts and with low interest rates, but really, the best conditions are those that go according to the financial situation of your company.

Do not hire or accept credits whose amounts exceed your ability to pay and try not to acquire financing with high interest rates or to finance you with your personal credit card.

5.- Order your financial and fiscal information

Many entrepreneurs surrender to the perception of endless paperwork when asking for a loan. The truth is that the information requested by financial institutions are documents that your company already has: you just have to keep it tidy and up to date.

Contact your accountant to organize this information and have arguments backed by documents to apply for a loan and be a good candidate.