Online Financial Tips

Archive for January 1st, 2012

When starting a staffing company, it is important to note that before you send out your first temporary employee, you must have adequate business insurance in order to conduct business. At a bare minimum, you will have to purchase Worker’s Compensation and General Liability Insurance. On top of those insurances, it would be a good idea to consider buying a G/L policy that will also include Professional Liability Coverage, as well as Errors & Omissions (E&O) coverages. The biggest challenge a staffing agency owner may face could be identifying an insurance company that truly understands the staffing industry.

Unless you are working with someone who understands your business, you will spin your wheels in trying to secure proper insurances. The challenge with underwriting an insurance policy for a staffing company is the fact that you are or will be sending out temps or contract employees to remote, 3rd party client sites, which can cause you to lose direct control over those employees. If those employees worked on-site every day at your office location, the risk would be easier to assess. However, in the staffing world, your direct employees work at client locations, which adds risk from an insurance company’s perspective. Insurance companies have a larger underwriting task when taking into effect that your employees may be asked to perform certain tasks at a client location that you may not otherwise ask them to perform if they were on-site at your office.

I would imagine researching insurance companies, finding the right company and insurance policies to purchase, then actually purchasing the policy would be about as much fun as making a trip to the dentist. Both are quite necessary, but not much fun. However, if you don’t have insurance for your staffing business, you will not be able to operate your company.

How do you know just how much insurance to purchase, and what types are right for your firm? You don’t want to be over-insured, but you certainly don’t want to be under-insured either. Once you find the right insurance partner that understands YOUR staffing business, ask them to recommend coverage amounts and types of policies. If you already have staffing clients in place, or if you have potential clients you will be doing business with, ask them to send you their standard staffing contract. More than likely, your client will have a section in their contract that will cover insurances, and how much and what types you need to have in order to do business with them.

Keep in mind, your clients want to deflect as much insurance risk on to you as possible. They would prefer to have zero risk in having your employees work on-site at their location. If a potential client is asking for more insurance coverage than you will be able to pay premiums for, you may consider trying to renegotiate their contract, or consider foregoing that business. It may not be worth the extra premium dollars you will pay in order to pick up the staffing business. However, if the margins are large enough, and you feel certain the client will utilize your services for a long-term period, you should consider upping the insurances to grow your business.

As a start-up staffing company, you may have no choice but to purchase your Worker’s Compensation insurance from a State Fund, rather than from a private insurance company. The laws are different in each state, but when you speak to your insurance agent, find out if private insurance is available for Workers Comp, due to the fact that it may be less expensive to purchase than from the State.

Also, you will either have to estimate your payroll or sales/revenue in order to get a quote on your insurances. I would be prepared to have a projected figure in mind. Don’t over-estimate payroll or sales because you may end up paying more each month in premiums during the first year, which could eat up profits from the business. Also, don’t under-estimate because you may be hit with a major one-time premium at the end of the year due to withholding less during the year. It’s a tricky calculation, but hopefully your agent can assist you in your calculations.

First of all let me enlighten the word loan. Loans are the debts that are provided either by the bank or some financing institutes to someone. Car loans are the finance provided by the banks to a customer who wishes to buy a car.

Need of car loan

As the we know that the condition of the public transport getting worse and every one is always in a hurry to reach his destination .so this is the reason that people today rather than going for the public transport, are opting for a better and more effective way of communication that is that is through their own vehicles. The loans provided by the banks help them getting these vehicles with an ease.

Also with the industrialization and the growth of the average income of people the need of cars have become more prominent but with less cash in hand it is very difficult for people to manage .This further enhances the need of loans through banks. These days number of banks and financing institutes are providing loan option so every one is able to buy a car of his own choice.

With the growing competition the banks and various financing institutes offer different type of car loans. The loan has to be returned in a given time period else the borrower has to suffer a lot and most of the time he is trapped in legal hassles.

Car loan types

Car loans as stated earlier are a debt that the borrower borrows from the financing company or the bank and has to return the money in some installments. These installments are decided by the bank initially. The bank provides the borrower a number of options by which he can return the money, and the borrower has to choose one of the option. One of the way for taking loan is by keeping the home as security with the financing institute.

Other type of car loan is the personal car loan in which the person has to provide collateral as security. The personal car loan is further divided into two categories that is secured and unsecured.

Interest rate

The interest rate is the amount rate which is used to calculate the extra amount that the borrower has to pay. At this interest rate every month the borrower has to pay some extra amount. Different banks have different rate of interests so that is why people should look for the least rate of interest before they make the decision of financing their car.