Advisory


General Guidelines to Customers

Dear Customers, Petty Cash Loans endeavors to offer financial advice to our clients so as to ensure the most effective way of enhancing your success. Below are some tips on how to effectively manage your financial affairs, thus, making it easier to maintain consistent payments, creating good business records. We also highlight below some general financial terms and phrases used to help clients get familiarized with our services.


Budgeting

A good budget is a spending plan that includes everything you will spend money on and stays within your income. A wise budget includes everything you will spend money on, savings for a 'rainy day', savings for large purchases, giving, savings for kids and investment for retirement and still stays within your income. Caution! No matter how detailed your spending plan is, if it does not include everything you spend money on, or, if it does not address where you will get the money to cover all your expenses, it is not a budget.


Basic Book Keeping

Is the practice of keeping track of your money through a formal system of records. Recording how and when money is spent and made helps to keep an overall view of how your money is working for you. Keep records of income (money coming in) and expenditure (money spent) so that the profit or loss during a period of time can be easily worked out. Keep records of assets (property and stock owned) and liabilities (bills or money still owing to others) so that the financial situation of the project or business can be worked out at any time.


Debt Consolidation

Entails taking out one loan to pay off many others. This is often done to secure a lower interest rate, secure a fixed interest rate or for the convenience of servicing only one loan. Debt consolidation can simply be from a number of unsecured loans into another unsecured loan, but more often it involves a secured loan against an asset that serves as collateral, most commonly furniture and appliances. The collateralization of the loan allows a lower interest rate than without it, because by collateralizing, the asset owner agrees to allow the forced sale of the asset to pay back the loan.


Late Payments

The surest way to waste money is to pay your bills late. It’s like burning your money! While it might seem easier said than done to pay your bills on time, the honest truth is that late fees are brutal. For a person in the habit of paying final notices on bills, this can increase your monthly bills significantly.


Loan

A loan is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The specific terms of a loan are often spelled out in the form of a promissory note or other contract. The lender can ask for interest payments in addition to the original amount loaned (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments.


Borrower

is the person or corporation that receives value (money, property or some service) from the Lender on the condition that the Borrower will pay the principal amount plus any interest to the Lender at sometime in the future.


Lender

is the person or corporation that gives something of value (money, property or some service) to the Borrower on condition that the Lender will be paid a certain amount in the future.


Guarantor

A guarantor is an individual/company that assures that a loan or other type of debt will be paid. Usually, they agree to pay another person's debt or perform that person's duty if he or she should fail to do so himself or herself. The term is most commonly used in reference to financial assistance. Some lending institutions require guarantors to be bonded for a certain amount — usually a percentage of the loan — so that the institution can be confident that the money is recoverable.


Principal Amount

is the original amount of the note that is owed by the Borrower to the Lender on the date the Promissory Note is signed. Once the Borrower has begun to pay back the note, the principal refers to the amount of money still owing to the Lender at any given moment in time.


Interest

Is an amount charged to a Borrower for the use of the Lender's money. It is usually expressed as a percentage of the amount borrowed and is calculated at a specified interval over the course of the term of the Promissory Note. The interest rate is the annual interest rate.


Interest Rate:

The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures.


Term

Is the time length of the note. At the end of the term, the Borrower must repay the outstanding balance of the note.


Delinquency

Failure to repay an obligation when due or as agreed. In consumer installment loans, missing two successive payments will normally make the account delinquent. In credit card payments, a delay of 15 to 30 days is generally allowed before declaring delinquency. Being a delinquent customer can prevent you from obtaining a repeated loan.


Loan Installment

A loan that is repaid with a fixed number of periodic equal sized payments.


Bailiff

Bailiffs are only involved if you can't come to an arrangement to repay your creditors after your case has been to court. Bailiffs usually work by threatening to take your possessions to persuade you to pay what you owe, or taking and selling things you own to repay your debt.


False Declaration

These are untruth statement or lies input on a document to make believe as truth in order to deceive and mislead an individual or company. Strict and severe action will be pursued. Petty Cash Loans



Financial terms and phrases



Account History:

The payment history of an account over a specific period of time, including the number of times the account was past due or over limit.


Accrued Interest

Interest that has been earned but not yet paid.


Affidavit:

A sworn statement in writing before a proper official, such as a notary public.


Amortization:

The process of reducing debt through regular installment payments of principal and interest that will result in the payoff of a loan at its maturity.


Appraisal:

The act of evaluating and setting the value of a specific piece of personal or real property.


Certificate of Deposit:

A negotiable instrument issued by a bank in exchange for funds, usually bearing interest, deposited with the bank.


Charge-off:

The balance on a credit obligation that a lender no longer expects to be repaid and writes off as a bad debt.


Check:

A written order instructing a financial institution to pay immediately on demand a specified amount of money from the check writer's account to the person named on the check or, if a specific person is not named, to whoever bears the check to the institution for payment.


Closed-End Loan:

Generally, any loan in which the amount advanced, plus any finance charges, is expected to be repaid in full by a specified date. Most real estate and automobile loans are closed-end agreements.


Collateral:

Assets that are offered to secure a loan or other credit. For example, if you get a real estate mortgage, the bank's collateral is typically your house. Collateral becomes subject to seizure on default.


Collected Funds:

Cash deposits or checks that have been presented for payment and for which payment has been received.


Collection Agency

A company hired by a creditor to collect a debt that is owed. Creditors typically hire a collection agency only after they have made efforts to collect the debt themselves, usually through letters and telephone calls.

Collection Items:

Items-such as drafts, notes, and acceptances-received for collection and credited to a depositor's account after payment has been received. Collection items are usually subject to special instructions and may involve additional fees. Most banks impose a special fee, called a collection charge, for handling collection items.


Co-Signer:

An individual who signs the note of another person as support for the credit of the primary signer and who becomes responsible for the obligation. (Also known as a Co-maker.)


Debtor:

Someone who owes monies to another party.


Direct Deposit:

A payment that is electronically deposited into an individual's account at a depository institution.


Electronic Banking:

A service that allows an account holder to obtain account information and manage certain banking transactions through a personal computer via the financial institution's Web site on the Internet. (This is also known as Internet or online banking.)


Escrow:

A financial instrument held by a third party on behalf of the other two parties in a transaction. The funds are held by the escrow service until it receives the appropriate written or oral instructions-or until obligations have been fulfilled. Securities, funds, and other assets can be held in escrow.


Fixed Rate Loan:

The interest rate and the payment remain the same over the life of the loan. The consumer makes equal monthly payments of principal and interest until the debt is paid in full.


Late Charge:

The fee charged for delinquent payment on an installment loan, usually expressed as a percentage of the loan balance or payment. Also, a penalty imposed by a card issuer against a cardholder's account for failing to make minimum payments.


Lease:

A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent).


Lender:

An individual or financial institution that lends money with the expectation that the money will be returned with interest.


Lien:

Legal claim against a property. Once the property is sold, the lien holder is then paid the amount that is owed.


Loan Contract:

The written agreement between a borrower and a lender in which the terms and conditions of the loan are set.


Loan Fee:

A fee charged by a lender to make a loan (in addition to the interest charged to the borrower).


Loan Proceeds:

The net amount of funds that a lending institution disburses under the terms of a loan, and which the borrower then owes.


Missing Payment:

A payment that has been made but not credited to the appropriate account.


Payday Loans:

A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds.


Payment Due Date:

The date on which a loan or installment payment is due. It is set by a financial institution. Any payment received after this date is considered late; fees and penalties can be assessed.


Payoff:

The complete repayment of a loan, including principal, interest, and any other amounts due. Payoff occurs either over the full term of the loan or through prepayments.


Power of Attorney:

A written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. If not, the power of attorney usually expires when the person granting it dies.


Prepayment:

The payment of a debt before it actually becomes due.


Payday Loans:

A small-dollar, short-term loan that a borrower promises to repay out of their next paycheck or deposit of funds.


Refinancing:

A way of obtaining a better interest rate, lower monthly payments, or borrow cash on the equity in a property that has built up on a loan. A second loan is taken out to pay off the first, higher-rate loan.


Refund:

An amount paid back because of an overpayment or because of the return of an item previously sold.


Variable Rate:

Any interest rate or dividend that changes on a periodic basis.