Paying Down DebtPaying Down Debt

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Paying Down Debt

When I started taking a closer look at my finances, I realized that I had a serious spending problem. It seemed as if I could never keep money in the bank, and I knew that it was all because of my issues with using my credit cards. I was paying more every month in interest than I was on the actual things that I was purchasing, and it was like a bad cycle. I worked hard to pay down the debt, and when I was finally able to do so, it felt as if a load had been lifted off of my shoulders. This blog is all about paying down debt so that you can enjoy your life again.


Three Services Provided By Commercial Banking Establishments

Commercial banking serves the business and commercial industries. Many banking institutions offer commercial banking to meet these particular monetary needs. If you think your financial needs fall on the side of a more commercial purpose, here are some of the commercial banking services and what they provide:

Business Loans

If you are starting a business or you want to expand your business through acquisitions and mergers, but you need more cash, you can apply for a business loan. You will have to present your financial records for the last six months to year. If you are just starting a business, then you should present your personal finance records and proof of any other backers or investors in your business. If you intend to acquire another business and/or merge, you will have to supply your business records. This is proof of income to back up your ability to pay.

You will also need to provide a business plan, regardless of what you need the loan for. The plan must state what the intended purpose or purposes for the loan is/are, and your expected or projected outcomes when you use the loan for what you intended. The bank wants to see that you are not just going to blow the business loan and then you are unable to pay it back.

Business Checking

Business checking provides higher interest rates than personal checking. It also requires a minimum balance every month. Usually, you are offered special introductory rates and service packages if you take out a business loan and keep the money in a business checking account with the same bank. This also allows you to make monthly payments on the loan via a direct withdrawal from the account with the same bank.

Investment Options and Advice

As your business grows and/or expands, commercial banking specialists can help you with advice. They can also show you investment options to make profits multiply such that you have enough money to reinvest in the business and still pay yourself a decent salary. If you reach the point where you have several employees working for you, you can ask the commercial banking representative about pensions and retirement funds for your employees.

Tax Accounts

It helps to keep your income tax accounts separate from your commercial checking and investment accounts. This ensures that you will be able to pay your business taxes at the end of the year. It also prevents you from spending the saved tax money by accident. Ask your commercial banking representative how to set this up.

Contact a company like LCNB National Bank for more information and assistance.