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[F216]Financial Information Management System

by Michael Hanna, Mic

If you've seen the news today you'll have seen that there is going to be a major change in how credit card companies issue their credit cards. In the past your financial information has been available out there, but for the most part one company didn't know your financial situation as it exists between you and other credit companies.

Now, however, credit card companies will be sharing your information.

As well as this, credit card companies will be given information from your bank account. So, a credit card company will now be given your details from other credit card companies, as well as from your bank.

The information was always available to financial institutions when a borrower has exceeded their limit, or has outstanding balances to be addressed. Now the financial institutions have unlimited access to financial information on everyone about:

- How much is a person has spent on each of their cards each month;
- How much a person has repaid on each card each month;
- How much money that person has taken out of each credit card or account each month;
- Whether that person has made any recent changes to their borrowing limits;
- Whether that person has written any repayment cheques that bounce;

The reason this has started to happen is that there is an overall consensus that the banks and credit card companies are giving people too many debt opportunities, leading to too many people being in too much debt.

The banks and credit card companies have said that their aim is to help their customer, and nothing else.

The chief executive of egg Paul Gratton has said: “"By sharing more information, we are better placed to help customers manage their borrowings and avoid financial difficulty."

The changes have been welcomed by the Citizen's Advice Bureau. CAB's Peter Tutton has said “It doesn't deal with how lenders market other loans - for instance, offering to consolidate loans that just makes the problem worse".

The problem with this new development is that an honest hard-working individual may, at some particular time, fall into a little bit of financial difficulty, and because of this may not be able to get some additional help when the going gets tough.

This will require you to look harder to find the relief you may need.

There is help out there, though: Websites such as Moneynet have been developed to provide you with all of the information you need to choose the right financial setup for you.

To have a look at the best credit card companies for your needs, and for all of the information you need about credit cards Moneynet ( http://www.moneynet.co.uk/credit-card-guide/index.shtml ) offers a complete guide to credit cards, and offers you the option to search for the best credit card for you.

Additional resources:

http://www.moneynet.co.uk/credit-card/index.shtml

If you are determined to make a go of building your own business, then you will be faced with a major challenge because of the lack of an established business track record. Most brand new businesses require some capital in order to get started, but without past business financial information it can be difficult to secure a loan for that purpose.

Banks and other types of lending institutions rely on receiving a variety of fiscal information from small business borrowers in order to make a decision about loaning money to them. If you are just starting out and your business is brand new, then you will not have cash flows or dividends information, or financial statements for your business that you can supply to the lenders. Without that detailed history of business operations and financial reports it is difficult to secure a loan.

Because of this situation, the banker or loan officer handling your small business loan will have to rely on your personal financial information. This means they will be primarily evaluating you, your business plan, and their estimation of whether or not you have the potential to become a successful business owner.

When it comes to new businesses, the lenders are very much aware that a very large percentage of new businesses fail in the first two years of operation. This fact, combined with the lack of a business track record, fiscal information and financial statements that lenders prefer to rely on are what makes the lenders so wary about approving loans for brand new businesses.

In addition to the failure rate during the first two years, the monetary information of most of the businesses that do survive that initial period rarely make a profit and are even considered lucky to break even. For this reason, it is strongly recommended that the person starting a new business venture has enough current assets set aside to cover their living expenses during at least the two years start up phase.

The good news is that in this day and age, with the many advantages that a small business owner can enjoy thanks to the internet and technology solution tools, they are often able to reduce overhead, and as a result, there are more and more companies that are able to become profitable more quickly. In these cases, when an entrepreneur is able to use their personal fiscal information to secure a loan for start up costs, then much of the success of the business will come down to wise and effective working capital management.

When applying for a small business startup loan, you should do as much as possible to make sure that your personal financial information is in as good a shape as possible before turning in an application. It is a good idea to get a copy of your credit report and make sure you know your credit score. Also, having a complete list of your personal financial statements and current assets, along with a detailed business plan, will help the lenders look favorably on your loan application.

Article Source : Pg. 102

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Both Michael Hanna & Mike Selvon are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Michael Hanna has sinced written about articles on various topics from Credit Cards, Finances and Travel and Leisure. . Michael Hanna's top article generates over 18100 views. to your Favourites.

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