# About Name: Salt Description: International banking & compliance made effortless for businesses. URL: https://salt.pe/blog # Navigation Menu - Login: https://app.salt.pe - Sign Up: https://app.salt.pe/signup # Blog Posts ## Top 5 Payment Gateway platforms for Businesses in India Author: Shaun Paul Published: 2024-07-09 Meta Title: Payment Gateways for Indian Businesses URL: https://salt.pe/blog/paymentgateways-india 5 Best Payment Gateways in India -------------------------------- The [Indian e-commerce market](https://www.thehindubusinessline.com/companies/indian-e-commerce-market-to-reach-163-billion-by-2026-report/article66675624.ece) is expected to reach a valuation of $163 billion by 2026. In this age of digital commerce, having a robust and reliable payment gateway is essential for businesses in India. [Payment gateways](https://salt.pe/blog/how-does-payment-gateway-work) in India are serving as the bridge between online merchants and customers, ensuring seamless and secure transactions.  ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508529663-compressed.jpeg) [Source](https://www.freepik.com/free-vector/internet-shopping-online-payment-with-banking-cards-realistic-composition-violet-with-world-map-illustration_6850793.htm#query=Payment%20Gateways%20in%20India&position=5&from_view=search&track=ais) | Five best payment gateways in India With a plethora of options available, it can be challenging to choose the right one for your business. In this post, we will explore the five best payment gateways in India, each offering unique features to cater to different business needs. Choosing the right payment gateway for your business ---------------------------------------------------- ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508531125-compressed.jpeg) [Source](https://www.freepik.com/free-vector/nfc-connection-abstract-concept-illustration-bank-connection-nfc-communication-contactless-card-payment-method-banking-technology-financial-transaction-paying-app_10780339.htm#query=Payment%20Gateways%20in%20India&position=6&from_view=search&track=ais) | Choosing the best payment gateways in India There are various factors to consider when choosing the best online payment gateway, and here are some of them: Payment methods supported: Firstly, make sure the payment gateway supports a broad number of payment methods. This  includes major credit and debit cards, net banking, UPI (Unified Payments Interface), digital wallets, and any other local or international payment options that are relevant to your customer base. Transaction fees: Different payment gateways in India charge different transaction fees. It's essential to understand their fee structure, including setup fees, annual maintenance charges, and per-transaction fees. Make sure to compare these costs to determine which option aligns with your budget. Security measures: Security is paramount for choosing the best online payment gateway. Look for payment gateways that are compliant with Payment Card Industry Data Security Standard (PCI DSS) to maximise the protection of sensitive customer data. Features like two-factor authentication (2FA) and fraud detection tools are also important to look out for.  Ease of integration: The payment gateway you choose should be easy and quick to integrate into your platform. Check if it provides plugins, APIs, or SDKs that are compatible with the existing technology stack. User experience: A seamless and user-friendly checkout experience is critical to reduce cart abandonment rates. Make sure the gateway you choose offers a smooth and intuitive interface for best online payment for customers. Currency and international transaction: When you choose the payment gateway in India, make sure it supports multiple currencies and international transactions. This is particularly important for businesses or e-commerce companies with customers from various parts of the world. Settlement period: Different payment gateways of India vary in settlement periods. Some disburse funds daily, while others may take a few days or more. Consider your cash flow requirements and select a payment gateway that aligns with your financial needs. Customer support: Reliable customer support is invaluable. You may encounter technical issues or require assistance with account management, so ensure that the payment gateway offers responsive and helpful customer support. Customisation and branding: Look for payment gateways in India that allow you to customise the payment page to match your brand's look and feel. This can enhance customer trust and loyalty. Recurring payments and subscriptions: If your business model involves subscription billing or recurring payments, ensure to invest in the best online payment gateway that supports this feature. It simplifies the management of regular payments from customers. Compliance with regulatory requirements: Verify that the payment gateways in India complies with the regulations set by the Reserve Bank of India (RBI) and other relevant authorities. Adhering to these guidelines is essential to avoid legal issues. By carefully evaluating payment gateways of India against these criteria, you can make an informed choice that aligns with your business needs.  Now that we know the essential aspects to consider before choosing the best payment gateway in India, let’s look at the 5 best payment gateways in India. ### **Best payment gateways in India for your business**  **Razorpay** ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508532479-compressed.jpeg) ** **[Source](https://razorpay.com/) | Payment gateway in India: Razorpay payment gateway** Razorpay is one of the most popular payment gateways of India, known for its user-friendly interface and excellent customer support. Let’s look at the Razorpay payment gateway features:  It supports a large number of payment methods, such as credit and debit cards, net banking, UPI, and also digital wallets. The Razorpay payment gateway dashboard provides real-time analytics, allowing businesses to track transactions and make data-driven decisions.  Features like international payments and subscription billing are also offered by Razorpay, making it a versatile choice for businesses of all sizes.  It charges a transaction fee of 2% plus taxes. However, the pricing may vary depending on the business monthly revenue. **Paytm** ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508533860-compressed.jpeg) ** **[Source](https://business.paytm.com/payment-gateway) | Payment gateway in India: Paytm payment gateway** The Paytm payment gateway is one of India's most recognizable digital payment platforms. Here are some features of Paytm: It offers a secure and convenient payment gateway for both small and large businesses. Paytm payment gateway can help businesses tap into a vast market.  Users can pay or ask for payment using Paytm payment gateway’s wallet, debit/credit cards, UPI, and net banking.  Paytm also offers various tools for businesses, including QR code-based payments and an easy-to-integrate API.  For startups, small and medium businesses, the Paytm payment gateway charges a Merchant Discount Rate (MDR) of 1.99% for Paytm Bank Wallet, UPI, Debit Cards such as Visa, Mastercard, Maestro and other methods. For Net Banking and EMI they charge 2.99%. For large businesses, Paytm payment gateway offers custom pricing plans. **CCAvenue** ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508535250-compressed.jpeg) ** **[Source](https://www.ccavenue.com/) | Payment gateway in India: CCAvenue payment gateway** The CCAvenue payment gateway is another popular payment option in India with a wide range of features and payment options. Here are some features of CCAvenue payment gateway: CCAvenue supports more than 200 payment methods, making it an excellent choice for businesses looking to cater to a diverse customer base.  The CCAvenue payment gateway also supports multiple currencies, making it suitable for international transactions.  It also comes equipped with robust anti-fraud features and comprehensive reporting tools to help businesses manage payments with efficiency. As of May 2020, all transactions are charged at a standard pricing of 2% plus taxes. However, the pricing may vary based on your monthly revenue. **​ ** **Instamojo** ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508536794-compressed.jpeg) ** **[Source](https://www.instamojo.com/payment-gateway/) | Payment gateway in India: Instamojo payment gateway** If you are a small or medium-sized business, the Instamojo payment gateway is  perfect for you. Some of Instamojo payment gateway features include: Instamojo payment gateway has an easy to use interface.  It allows businesses to create payment links and share them with customers through various channels.  It supports debit/credit cards, UPI, and digital wallets, making it a versatile choice for startups and freelancers.  It also offers other services like online stores and email marketing which are helpful for businesses.  The Instamojo payment gateway offers different plans with varying transaction fees.  They have the Lite Plan, which is free and charges a transaction fee of 5% plus Rs. 3. They also offer an annual plan for Rs. 3,999**.** **PayPal** ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1720508538475-compressed.jpeg) ** **[Source](https://www.paypal.com/in/business) | Payment gateway in India: PayPal payment gateway** The PayPal payment gateway is a globally recognized payment gateway. Here are some features of PayPal payment gateway: **​ ** The PayPal payment gateway enables businesses to accept international payments, making it ideal for e-commerce companies looking to expand their reach.  PayPal offers a seamless checkout experience and supports various currencies.  While it may have slightly higher transaction fees than some local alternatives, its global reach and trustworthiness make it a valuable option for businesses with an international customer base. PayPal payment gateway fees can vary based on the types of transaction. For digital payments, they charge 3.49% plus 49 cents per transaction. For in-person payments with a PayPal QR code, they charge 1.90% plus 10 cents per transaction above $10; and 2.4% plus 5 cents per transaction $10 and below. Online credit and debit card payments are charged at 2.59% plus 49 cents per transaction.  ### **Selecting the right payment gateway**  Selecting the right payment gateway is integral for the success of your online business. The best payment gateways of India offer unique features and cater to different business needs.  **​ ** Before choosing the best online payment gateway in India, consider factors like transaction fees, the range of payment methods supported, ease of integration, and customer support. Ultimately, the best payment gateway for your business will depend on your specific requirements and goals. **​ ** Now, if you aim to expand your business globally, you’d need a trusted financial platform to guide your trades, introduce efficiency to international transactions, and also take care of compliances. While a local, traditional bank can not customise these services for your business needs, [SALT Fintech](https://salt.pe/) can be your ideal partner! **​ ** SALT Fintech addresses two significant challenges in international transactions. First, it accelerates the remittance process, delivering funds within 24 hours instead of the traditional one to five business days. Second, it simplifies the complexities of compliance, providing a seamless and hassle-free international payment experience. **​ ** Another of the most appealing aspects of SALT is our transparent fee structure. We charge a flat rate of 1.75% per transaction, without any hidden or markup fees. **Head on to [our website](https://salt.pe/) today to learn more!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 reasons to use SALT over Skydo for International Business Payments Author: Udita Pal Published: 2024-07-01 Category: International Payments Meta Title: 5 reasons to use SALT over Skydo Meta Description: Learn the top 5 reasons why SALT is preferred over Skydo for business payment solutions and exceptional customer support. Tags: Indian businesses, international business invoice, cross-border transactions, International Payment Method URL: https://salt.pe/blog/salt-vs-skydo Did you know that [82% of startups fail due to poor cash flow management](https://preferredcfo.com/cash-flow-reason-small-businesses-fail/#:~:text=Recognizing%20Cash%20Flow%20Problems%20%26%20How%20to%20Solve%20Them&text=In%20her%20study%2C%20she%20found,failure%20of%20a%20small%20business.)? Obviously then, choosing the right business payments platform can make all the difference. SALT and Skydo are two prominent platforms that offer unique solutions for managing finances. ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1719832584231-compressed.png) **[Source](https://img.freepik.com/free-vector/accounting-concept-illustration_114360-23749.jpg?t=st=1716261458~exp=1716265058~hmac=5f7d4b57ad226b5b3e7dd970075e6da927ced31e0451b57b63aaf02c16947db8&w=826) |** Salt Vs Skydo 5 Reasons why businesses use SALT over Skydo:  1\. No invoice splitting for large ticket transactions  -------------------------------------------------------------------------------------------------------------- Unlike Skydo, SALT eliminates the need for invoice splitting on large transactions. This simplifies your financial processes and helps maintain smooth cash flow. With SALT, you benefit from faster funding times and transparent pricing with no hidden fees. SALT integrates seamlessly with your existing accounting systems. Skydo, on the other hand, has a $10,000 USD limit per transaction, which can be limiting for growing businesses handling large transactions. 2\. Sustainable flat fee structure ---------------------------------- While Skydo's low variable fees may seem appealing, fee hikes are likely as any platform will eventually seek profitability, leading to unpredictable costs. Variable fees can take a larger share of your profits as your business grows.  In contrast, SALT hasoffered a stable fee structure from the start. SALT is a compelling alternative to Skydo with its 1.75% flat fee structure, inclusive of GST.  3\. Established experience in international transactions  --------------------------------------------------------- SALT stands out as the go-to platform, especially for early-stage founders and startup investors needing reliable [international transaction](https://salt.pe/blog/posts/category/international-payments/1) solutions. Since 2022, SALT has shown expertise in handling complex cross-border transactions, unlike Skydo, which entered the market only in 2023. SALT provides a strong network and essential compliance support for handling international regulations.  From SALT users: “SALT has a perfect payment solution for [inward remittance](https://www.salt.pe/remittance) from our overseas clients. We get most of our payments within 1-2 days in our bank account.” 4\. Dedicated relationship managers ----------------------------------- SALT offers dedicated relationship managers who offer personalized support, unlike Skydo's general customer service available for all customers. These managers help you use the platform smoothly and give advice suited to your specific needs. With SALT, you get a single point of contact who understands your business and is always ready to assist. **5\. Customer Experience & Transparency**  Cheaper does not mean higher quality. SALT ensures a smooth customer experience right from Day 0, during their sign up process.  Through our relationship managers, we're able to deliver a near tailor-made experience for all our clients.  When SALT says "no hidden fees", we mean it. Our 1.75% fee is all that you will have to calculate while receiving your payments. The GST applicable on our service is included in this minimal fee. The same cannot be said for most other platforms.  All these advantages make SALT the right choice for startups, marketing agencies, freelancers, and consultancies looking to optimise their financial management.  Get started with SALT  ---------------------- SALT is the best platform compared to Skydo because it offers special tools, a supportive community of founders and investors, detailed analytics, easy integration, and affordable solutions. Getting started with SALT is easy. Follow these steps to begin: 1\. **Visit the Website**: Go to [SALT](https://www.salt.pe). 2\. **Create an Account**: Click "Sign Up" or "Get Started" and provide your information. 3\. **Verify Your Information**: Complete the verification process with the necessary documents and connect your INR account. 4\. **Explore the Dashboard**: Familiarise yourself with the tools and features available. You're now ready to receive payments from foreign clients! For any assistance, reach out to SALT's dedicated support team. Start managing your startup's finances efficiently with SALT today! ### FAQs **How does SALT's service for dedicated relationship managers work?** SALT will appoint a dedicated relationship manager to help you use the platform and make the process simple. They serve as a single point of contact so that you get specialized guidance and quick solutions to any problems. **What advantages does SALT's fee structure offer?** Compared to traditional services, SALT offers a fee structure that is both transparent and competitive. This can help you with significant savings. With SALT, you won’t need to pay any additional fees, and startups can put more funds into expanding their business. **Is there a signup fee for SALT?** No, SALT does not charge any signup fee. It is completely free for all businesses.  **Does SALT offer FIRC?** Yes, SALT does provide FIRC, and that too for free. You can simply download the FIRC from your dashboard for every transaction you make.  **What is invoice splitting, and is there a reason it can be unfavourable?** Splitting an invoice into smaller payment amounts is known as invoice splitting. Despite its convenience, it can eventually have an impact on cash flow and financial management. It can make accounting more difficult and sometimes delay payment processing. **How safe are payments with SALT?** Payments with SALT are 100% secure. We work with banks regulated by RBI and respective regulators in each country, and every transaction are held and managed by these regulated partners. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is GIFT City? Why is it important? Author: Sudhanshu Choudhary Published: 2024-06-21 Category: Fintech in India Meta Title: Importance of GIFT City for Indian businesses Meta Description: GIFT City in Gujarat is a transformative hub for businesses. Let’s understand what is GIFT City and why it is pivotal for businesses seeking global growth. Tags: GIFT city, GIFT city in India, What is GIFT City, GIFT City tax benefits URL: https://salt.pe/blog/what-is-gift-city Exactly, what is GIFT City, and why should you care? GIFT City (Gujarat International Finance Tec-City) isn't just another urban development—it's a game-changer. Imagine a city designed to be a financial and technological powerhouse, a place where innovation meets infrastructure: that is what GIFT City is for you.   ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1718962543099-compressed.jpeg) > [Source](https://timesofindia.indiatimes.com/city/ahmedabad/new-gift-city-to-rival-global-fin-hubs/articleshow/104096116.cms) | What is GIFT city?  In this blog, we'll unravel the mystery of GIFT City, exploring its origins, key components, and the economic impact it's making. We'll delve into why this city matters on a global scale, examining its unique features and the special regulatory framework that sets it apart.  ### The vision of GIFT city  In recent years, India has witnessed significant economic strides, making it an attractive destination for [foreign investments](https://salt.pe/blog/rbi-requirements-for-fdi). Government initiatives like ['Make in India,](http://www.makeinindia.com/)' '[Digital India](https://www.digitalindia.gov.in/),' and '[Ease of Business](http://www.makeinindia.com/eodb)' have played a pivotal role in fueling this growth, creating a business-friendly atmosphere. As part of the drive toward financial globalisation, India has established its first business district in the form of Gujarat International Finance Tec-City (GIFT City) in Gandhinagar.  Conceived by then Chief Minister Narendra Modi in 2007, Gandhinagar GIFT City aims to rival financial hubs like London and Singapore. Supported by both Central and Gujarat governments, the GIFT City of Gujarat spans 886 acres, featuring a Special Economic Zone (SEZ), India’s first International Financial Services Centre (IFSC), and a Domestic Tariff Area (DTA).  Boasting smart infrastructure, the city integrates residential spaces, schools, medical facilities, and recreational areas. As of June 2023, the Gandhinagar GIFT City boasts a vibrant ecosystem, hosting [23 multinational banks](https://timesofindia.indiatimes.com/city/ahmedabad/global-financial-firms-queue-up-at-gift-city/articleshow/99205404.cms) such as HSBC, JP Morgan, and Barclays. Additionally, it [accommodates 35 fintech entities](https://en.wikipedia.org/wiki/GIFT_City#:~:text=As%20of%20June%202023%2C%20it,exchange%20with%2075%20onboarded%20jewellers.), operates two international stock exchanges with a robust daily trading volume of $30.6 billion, and proudly houses India's inaugural [international bullion exchange](https://www.iibx.co.in/static/event.aspx), featuring a roster of 75 onboarded jewellers. Recent [approval for foreign university campuses](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1903853) has garnered global attention, positioning GIFT City of Gujarat as a rising star in the world of finance, technology, and education.  Now, let’s discuss the benefits of GIFT city to understand why everybody is flocking to the GIFT city:  Benefits of GIFT City  ---------------------- Gandhinagar GIFT City unfolds a realm of advantages; the benefits of GIFT city include:  #### Special Economic Zones (SEZ)  SEZs are dedicated zones with developed infrastructure, offering built-up spaces, power, water supply, transport, and housing. These zones are designed to attract Foreign Direct Investment and boost economic growth through global exports. SEZs act as economic catalysts, fueling growth and transforming regions into business-ready hubs.  #### International Financial Services Centre Authority (IFSCA) The [International Financial Services Centre Authority (IFSCA)](https://ifsca.gov.in/Pages/Contents/AboutIFSCA), established in 2020 in GIFT City, consolidates a spectrum of financial services like stock exchanges, corporate banking, insurance, and risk management. This financial hub simplifies growth for businesses, offering tax incentives and regulatory benefits, making it an investor's haven. The impact is multifaceted, influencing the economy through tax benefits, fostering innovation, supporting startups, and connecting with international markets.  #### Domestic Tariff Area (DTA) In the Domestic Tariff Area (DTA), local companies thrive under the umbrella of Indian laws and regulations. Positioned to serve the domestic market, businesses in this zone enjoy a spectrum of tax incentives extended by the Indian government. The benefits of GIFT City make it a pivotal player in India's financial landscape, providing an environment conducive to growth, innovation, and international collaboration. For instance, owing to the unique advantages provided by GIFT city to investors, the US-based tech giant [Google has announced](https://www.livemint.com/technology/pm-modi-in-us-google-to-set-up-its-global-fintech-operations-centre-at-gift-city-in-gujarat-ceo-sundar-pichai-11687567037573.html) a global fintech operation centre in GIFT city. ### Benefits for startups in GIFT city  ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1718962545967-compressed.png) > ### GIFT City tax benefits In India, GIFT City opens its doors for startups, providing them with abundant funding prospects, a business-friendly atmosphere, and a culture that prioritises innovation. Its strategic location not only encourages partnerships and collaborations but also ensures a continuous influx of skilled professionals from diverse talent pools. [SALT Fintech](https://salt.pe/) is the only startup in GIFT city operating with limited authorisation. Here’s why you should set up your startup in GIFT city too: * Infrastructure and administrative advantages include a [Unified Regulator and Single Window Clearance](https://ifsca.gov.in/Pages/Contents/AboutIFSCA), where the IFSC Authority serves as a centralised body for streamlined approvals, covering all aspects from allotment and planning to construction and occupancy.  * The setup process is simplified with plug-and-play infrastructure, ensuring a swift and trouble-free initiation of businesses by having all necessary infrastructural clearances in advance.  * The liberal policies at GIFT City grant it a deemed foreign jurisdiction status from an exchange control perspective, exempting it from various intricate domestic policies, contributing to a conducive environment for business operations. * Many GIFT City tax benefits exist including: [startups can enjoy a 100% tax exemption for any 10 years](https://www.giftgujarat.in/business/ifsc?tab=Tax%20Incentives) within a 15-year period. The Minimum Alternate Tax (MAT) for companies, or the Alternative Minimum Tax (AMT) for other units in the IFSC, stands at a competitive rate of 9% of book profits. * When it comes to dividend income, the tax responsibility falls on the shareholder, with a [10% tax rate for those residing outside India](https://www.giftgujarat.in/business/ifsc?tab=Tax%20Incentives), along with applicable surcharges and cess. * Furthermore, services received by a unit in the IFSC are exempt from Goods and Services Tax (GST), on the other hand, GST is applicable to services provided to the Domestic Tariff Area (DTA).  In addition to these benefits of GIFT City, startups can also leverage state subsidies on lease rentals, provident fund contributions, electricity duty, and more.  GIFT City for FinTech --------------------- As a fintech, what is our take on GIFT City?  While many GIFT City tax benefits make it attractive to startups, the fintech sector is especially empowered in the GIFT City. Firstly, in a bid to foster innovation within the financial services sector, the IFSCA (International Financial Services Centres Authority) has introduced [specialised fintech sandboxes](https://pib.gov.in/Pressreleaseshare.aspx?PRID=1665858) to encourage growth in the space. These sandboxes serve as a playground for fintech startups within GIFT City, allowing them to operate in a controlled regulatory environment. This is one of the biggest benefits of GIFT City you can avail as a fintech.  This sandbox offers a live setting with a select group of actual customers for a defined period, enabling fintech startups to test and refine their ideas and solutions in a real-world scenario. It provides a unique opportunity for startups like SALT Fintech to validate their innovations and navigate the complexities of financial regulations in a secure and controlled space. ### **GIFT City takes Indian economy to new heights** GIFT City in India stands as a commendable launchpad for startups (especially in fintech), offering a unique blend of innovation and infrastructure that propels businesses toward unparalleled growth. The simplified administrative processes, GIFT City tax benefits, and a culture fostering innovation make it an ideal hub for startups. However, it's essential to navigate potential challenges, such as adapting to a dynamic regulatory environment and addressing infrastructure needs, to fully harness the city's potential for entrepreneurial success.  SALT Fintech is overjoyed to be a part of the growing economic ecosystem of GIFT City, and we plan to magnify our services in the coming times to serve your financial needs as an international corporation better! Visit [our website](https://salt.pe/) today to know more about us.  ** ### FAQs (Frequently Asked Questions) #### Q1. How does GIFT City contribute to financial globalisation? ****GIFT City is India's response to financial globalisation. It houses the IFSC that simplifies financial transactions, attracting foreign investments and promoting ease of doing business on par with global financial centres like London and Singapore. #### Q2. Who is eligible to open an account in GIFT City? Various accounts under the GIFT City initiative are accessible to Resident Indians, Non-Resident Indians (NRIs), foreign nationals, as well as corporates and partnership firms. Both Resident and Non-Resident individuals have the opportunity to open accounts within GIFT City.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Union Budget 2024: Tax benefits for startups in India Author: Sudhanshu Choudhary Published: 2024-06-04 Category: Finance in India Meta Title: Union Budget 2024 Meta Description: Have you been looking into the Union Budget 2024 for any tax benefits for your startup? This article lists all such benefits announced in the Budget! Tags: government policy, budget 2024, union budget 2024, tax benefits to startups URL: https://salt.pe/blog/busget-2024-startups The Union Budget of India is a critical document - after all, it announces the budgetary allocations to different ministries of the government, broad policy positions, and other key financial decisions in a particular fiscal year. The Finance Minister of India, Nirmala Sitharaman, tabled the Union Budget 2024 on February 1 as an [interim budget](https://www.indiabudget.gov.in/doc/budget_speech.pdf) - since there are parliamentary elections scheduled for the year. The Indian economy has accelerated as official estimates pegged its [growth at 7.6%](https://www.thehindu.com/business/Economy/gdp-surges-76-per-cent-in-2023-july-to-september-quarter-goes-past-rbi-forecast/article67591434.ece) in the second quarter of the current financial year. Startups in India have played a significant role behind this growth, which the government has recognised with programs like [Startup India](https://www.startupindia.gov.in/). Our blog simplifies all tax benefits announced in the Union Budget 2024, which can incentivise your startup! Major takeaways from the Union Budget 2024 ------------------------------------------ Before we jump into the critical startup incentives announced in the Union Budget 2024, let's look into some other prime decisions announced in the Budget: #### No change in taxation:  The Union Budget 2024 stated there would be [no direct and indirect tax rate changes](https://www.hindustantimes.com/business/no-changes-in-income-tax-rates-slabs-announced-nirmala-sitharaman-101706768830366.html) in the financial year 2024-2025. At the same, the Union government has proposed to withdraw any old tax demand notices to taxpayers amounting to INR 25,000 till the financial year 2009-2010 and INR 10,000 for the financial years between 2009-2010 and 2014-2015. #### Capital expenditure:  The government would continue to increase the outlay for capital expenditure in the country. For the next financial year, it has increased the allocation [by 11% to more than 11 lakh crore](https://m.economictimes.com/news/economy/infrastructure/budget-2024-budget-raises-capex-target-by-11-1-to-rs-11-11-lakh-crore-to-steer-indias-economy-to-third-largest-spot/articleshow/107315590.cms), which accounts for 3.4% of the Indian economy's GDP #### Fiscal deficit:  The revised fiscal deficit for 2023-2024 was at 5.8%, according to the Union Budget 2024. For the next financial year, the government has set a [target of 5.1%](https://www.livemint.com/economy/budget-2024-govt-pegs-fiscal-deficit-target-at-5-1-of-gdp-for-fy25-11706760732691.html) and will eventually reduce it below 4.5% in the subsequent financial years. #### Viksit Bharat:  The Union Budget 2024 aims to set the foundation for a ['Viksit Bharat'](https://www.indiatoday.in/opinion/story/interim-budget-2024-and-its-commitment-to-viksit-bharat-opinion-2498220-2024-02-06) by 2047. The government claimed in the Union Budget 2024 that it would announce a detailed roadmap for a developed India in the full Budget in July 2024. #### Four sections for government support:  The government highlighted [four sections of society](https://www.livemint.com/economy/budget-2024-women-farmers-youth-poor-are-top-priority-for-nda-11706774332023.html#:~:text=New%20Delhi%3A%20Finance%20minister%20Nirmala,the%20national%20polls%20this%20year.) that would receive its primary focus, with several schemes created for them. It includes the poor, women, farmers, and the youth. ### Tax benefits for startups in India Various startup incentives related to taxation were announced in the Union Budget 2024: #### Tax Holiday extended:  Startups in India incorporated until March 31 2024, and with turnovers below INR 100 crore can enjoy a tax holiday for a block of three years in the first ten years of their incorporation. This deadline was extended till [March 31 2025](https://m.economictimes.com/tech/startups/budget-2024-tax-holiday-for-startups-sovereign-funds-extended-by-1-year/articleshow/107322717.cms), enabling startups to have one more year to derive the tax benefits. #### GIFT City units:  Pension and sovereign wealth funds investing in startups in India currently enjoy tax benefits from their profits, dividends, and interest from their [GIFT City units](https://www.moneycontrol.com/news/business/budget/interim-budget-extends-tax-benefits-for-startups-sovereign-wealth-funds-gift-ifsc-units-12170951.html). Until now, the investments between April 2020 and March 2024 were eligible for tax breaks, but the exemption has been extended till March 2025 as well. It will likely facilitate further investments into the startup sector through GIFT City. Apart from the above initiatives, startups in India also have the following incentives: * They can [carry forward](https://www.investindia.gov.in/team-india-blogs/union-budget-2023-empowers-startups-extended-set-and-carry-forward-period) their losses within the first ten years of incorporation and reduce taxable incomes. * They can claim an exemption if they invest their long-term capital gains in government-specified funds, according to [section 54EE](https://incometaxindia.gov.in/Acts/Finance%20Acts/2016/102120000000058864.htm). **Government recognition for startups in India** ------------------------------------------------ ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1717491090792-compressed.png) ** **[Source](https://www.startupindia.gov.in/) | The Startup India program** ** Since the launch of Startup India in 2016, there has been a steady rise in the number of startups in India. According to [official data](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2001123), startups in India have directly created over 1.2 million jobs, while there is at least one recognised startup in every state and Union territory in India. The data states over 80% of districts have startups, which creates crucial economic significance for the country. **** Meanwhile, the Union Budget 2024, while recognising the importance of startups, also promoted two startup incentive programs: * A [1 lakh crore corpus](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=2001123) has been created to provide interest-free loans to the ‘tech savvy’ youth of the country for fifty years. The corpus will mainly target to boost private investment in sunrise technologies. Startups in these sectors could benefit to a huge extent from these interest-free loans. * The [Startup India Seed Fund](https://www.cnbctv18.com/economy/budget-2024-highlights-startup-india-seed-fund-scheme-allocation-18940691.htm), which funds startups in India with seed money at their early stages, got an allocation of INR 175 crores in the Union Budget 2024. ### Sort out your financial woes with SALT Fintech Salt Fintech make cross-border payments as easy as they can get! Our product [‘Table by SALT’](https://www.salt.pe/table) enables startup founders to get funds from foreign investors seamlessly, along with automating regulatory filings. [Visit our website](https://www.salt.pe/) and handle your startup’s international finances with low fees, no hidden charges, and smooth transactions! Further, [explore our blog](https://www.salt.pe/blog) as your one-stop solution for all information related to the financial services industry! ### FAQS 1. Are there any startup incentives in taxes in the Union Budget 2024? **** Yes, two major announcements in the Union Budget 2024 extended the tax holiday for startups till 2025, as well as providing a year more to pension and sovereign funds to smoothly invest in startups in India with tax breaks       2. Does the government recognise Indian startups? Yes, startups in India are officially recognised by the DPIIT ministry of the Government of India, which also runs a slew of schemes for them. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## SALT: A cheaper alternative to PayPal and More. Author: Sudhanshu Choudhary Published: 2024-06-04 Category: International Payments Meta Title: SALT: The Best International Payments Partner Meta Description: Looking for a cheaper alternatives for international money transfers for your business? We’ve got you covered! SALT Fintech is at your service. Tags: paypal alternative, international business invoice, cross-border transactions, International Payment Method, NIUM alternatives URL: https://salt.pe/blog/paypal-alternatives Businesses rely heavily on international money transfer methods to expand their reach and tap into overseas markets. Traditional methods like international wire transfers and bank drafts have been the go-to for [cross-border payments](https://salt.pe/blog/how-cross-border-payments-are-being-redefined-for-businesses) for so long, but they come with hefty fees and lengthy processing times, making them less than ideal for many companies seeking efficiency and cost-effectiveness. PayPal may come to mind for a modern-day business, but what if you had a cheaper alternative to PayPal? Enter- SALT, a fintech company that specialises in cost-effective solutions for international transactions. We focus on serving B2B clients, including LLPs, private limited companies, partnerships, SMEs, and startups. SALT provides competitive rates and efficient compliance solutions tailored to the specific needs of Indian businesses.  In this blog, we will understand the need for a cheaper alternative to PayPal and look at [SALT's offerings](https://www.salt.pe/table). Without further ado, let’s begin!  First, let’s understand why we need PayPal alternatives anyways?  Why sееk PayPal alternatives? ----------------------------- ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1717489826615-compressed.jpeg) [Source](https://stock.adobe.com/search/images?k=paypal) | Cheaper alternative to Paypal While PayPal has long been a popular choice for online transactions, its suitability for international business transactions is questioned due to several limitations and drawbacks. Here are some:  * PayPal's fees: They often include a percentage of the transaction amount and a fixed currency conversion fee. This can make it costly for businesses dealing internationally. The fee per transaction comes to around 4.4% of the amount + $0.3 + additional currency conversion charges.  * PayPal's processing times: These can range between 3-5 days, leading to delays in receiving funds and potentially disrupting business operations and cash flow.  * Exchange rates: These are set by PayPal, and can potentially be quite demanding, especially for businesses engaging in cross-border payments frequently.  * Compliance: PayPal isn’t much help here, required certifications have to be taken care of by a business itself.  * Low on flexibility: PayPal does not bring customized support for businesses.   Given these limitations and drawbacks, business operations are increasingly seeking cheaper alternatives to PayPal, which offer lower goods and services fees, faster processing times, and greater flexibility and support for their specific needs. SALT Fintech is one such alternative to PayPal for B2B clients looking to streamline their international transactions and reduce costs. **Now, let's understand how SALT Fintech can help businesses in international money transfers:**  **SALT's offеrings for Indian businеssеs participating in cross-border transfers**  ----------------------------------------------------------------------------------- ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1717489828436-compressed.png) ** **[Source](https://www.salt.pe/) | SALT Fintech as a PayPal alternative**  **​ ** SALT Fintech has two main services that cater to the needs of Indian businesses going beyond borders: [inward remittances](https://www.salt.pe/remittance) and compliance handling. These are intended to assist companies in streamlining their international transactions and ensuring compliance with regulatory requirements, all while minimising costs and maximising efficiency. **Let’s discuss SALT’s services as a cheaper alternative to PayPal:**  ### **Inward remittances** * SALT Fintech offers a streamlined and cost-effective solution for receiving payments from international clients or partners.  * SALT charges a fixed fee of 1.75% of the transfer amount for inward remittances. This fee covers the cost of obtaining the Foreign Inward Remittance Certificate (FIRC), which is provided to you within 24 hours of the international transaction.  * No sign-up fees or subscription charges are required to use our service. This enables businesses to access their funds quickly and efficiently, helping to improve cash flow and reduce administrative overhead. ### **Compliance handling** * SALT Fintech offers a comprehensive compliance management solution for businesses dealing with foreign investments, including pre-funding and post-funding compliance.  * For instance, SALT aids in [FIRC acquisition](https://salt.pe/blog/foreign-inward-remittance-advice-fira) if inward remittance is a regular part of the business transactions.  **Now, let's compare [SALT's services with PayPal](https://salt.pe/blog/paypal-salt-comparison).**  **SALT Fintech: an altеrnativе to PayPal** ------------------------------------------ **When comparing Paypal's services to cheaper alternatives like SALT, several factors come into play like cost, speed, and compliance. Let's explore how SALT's offerings stack up against PayPal and other payment solutions in these areas:** ### **Cost** * SALT and PayPal diverge notably in their fee structures.  * PayPal imposes transaction fees based on variables like country, currency, and amount, along with a minimum 3% forex markup. SALT has a fixed fee.  * SALT refrains from levying any markup on currency conversion, usually adhering to the Google rate for converting to INR. The Google rate refers to the exchange rate provided by Google, typically based on real-time market data.  * Notably, PayPal's transaction fees can reach 4.4% of the transferred amount plus $0.3, whereas SALT adopts a flat rate of 1.75%. ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1717489829873-compressed.png) ** **[Source](https://www.salt.pe/blog/paypal-salt-comparison): SALT and PayPal comparison** ### **Other criteria**  * At SALT, you can know that your transactions won't encounter blocked funds or chargebacks. This assurance provides a sense of security and reliability for businesses utilising SALT's services.  * In contrast, PayPal doesn't typically offer the same guarantee, leaving the potential for disruptions or complications in transaction processing. * Unlike PayPal, SALT provides designated relationship managers for global banking needs. Overall, SALT's services have these benefits for Indian businesses engaging in cross-border payments: * A cheaper alternative to PayPal for international money transfers * Offer lower fees * Faster processing times * Enable streamlined compliance handling **​ ** By choosing SALT Fintech, businesses can streamline their international transactions, reduce costs, and focus on growing their operations in the global marketplace. **SALT at your rescue**  ------------------------ [SALT Fintech](https://www.salt.pe/) offers a compelling PayPal alternative for international businesses seeking cost-effective solutions for cross-border transactions. By providing competitive rates, faster processing times, and streamlined compliance handling, SALT Fintech enables businesses to minimise costs, improve cash flow, and focus on growing their operations in the global marketplace. **​ If you have any further questions or want to learn more about [SALT Fintech](https://salt.pe/blog/salt-fintech) as a cheaper alternative to PayPal, please don't hesitate to contact us. We're here to help you navigate the complexities of international business transactions and find the right payment solutions for your needs! Frequently asked questions -------------------------- ### 1\. Why did PayPal quit India? On February 4, 2021, PayPal announced it would end domestic payments in India by April 1, 2021 and would mainly focus on international e-commerce due to regulatory challenges.  ### 2\. Did Elon Musk create PayPal? Yes, Elon Musk co-founded PayPal in 1999 when he was approximately 28 years old. Musk's online banking business, X.com, merged with Confinity, a company specialising in online payments, to form PayPal in March 2000. Musk played a pivotal role as the CEO in guiding the newly formed organisation.  ### 3\. Is GPAY the same as PayPal? PayPal and Google Pay are digital wallets that let you hold, send, and receive payments and shop in person and online. Nevertheless, Google Pay and PayPal accounts aren't inherently connected; they are separate products. ### 4\. Is PayPal banned in India in 2023? PayPal India has discontinued domestic payment transactions and is now only available to businesses for cross-border transactions. Individual PayPal accounts and domestic sales have been discontinued.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to raise funding for a startup from abroad? Author: Ankit Parasher Published: 2024-05-31 Category: Fundraising for Startups Meta Title: Looking to raise funds for your startup? Meta Description: How to raise funding for a startup from abroad? Discover the best funding platforms and strategies to attract international investors. Tags: Startup fundraising, startup funding, FDI, seed funding for your startup URL: https://salt.pe/blog/raising-for-startups-from-abroad Wondering how to raise funding for a startup, especially from abroad? In today's interconnected world, startups have unprecedented opportunities to raise capital from international sources. As traditional barriers to cross-border investment continue to diminish, entrepreneurs are increasingly turning to global markets to secure funding for their ventures. This trend not only diversifies funding sources, but also exposes startups to a broader pool of investors with varying expertise and perspectives.  In this article, we take a look at the best crowdfunding platforms for Indian startups, where you can present your vision and expertise to the global investor base.  How to raise funding for a startup?  ------------------------------------ ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1718096162213-compressed.png) [Source](https://www.freepik.com/free-vector/men-teamwork-business-with-rocket_5685519.htm#fromView=search&page=1&position=37&uuid=e6f1d683-e35e-4907-a9e2-76dac099a66b)| How to raise funds for a startup? Exploring diverse strategies and platforms can significantly enhance a startup's ability to attract international funding; let’s look at some of them:  ### Venture capital (VC) funding ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1718096164331-compressed.png) [Source](https://www.freepik.com/free-vector/saving-money-concept-background_4361554.htm#fromView=search&page=1&position=1&uuid=1f26e762-e48d-4a92-9bdb-cb9e63510737) | Venture capitalists: How to get investors for business?  Venture capital (VC) funding involves investment from specialised firms or funds into startups and early-stage companies with high growth potential in exchange for equity ownership. VC firms typically provide capital, expertise, and networks to help startups scale rapidly.  These investments are often made in industries with high innovation potential, such as technology, biotech, and fintech. VC funding plays a crucial role in fueling entrepreneurship and innovation, driving economic growth and transformation in various sectors globally. ### Angel investors Angel investors are people who provide financial backing to startups and entrepreneurs in exchange for ownership equity or convertible debt. Unlike venture capitalists, who typically invest funds from institutional sources, angel investors are often affluent individuals looking to invest their own money in early-stage companies.  These investors not only inject capital into fledgling ventures but also offer valuable expertise, mentorship, and networking opportunities. Angel investors can play a crucial role in fostering innovation and entrepreneurship by taking calculated risks on promising ideas that may not yet have gained traction in the broader market. Their support can be instrumental in helping startups navigate the challenging early stages of growth and development. ### Private equity (PE) investment Private Equity (PE) Investment involves funds pooled from institutional investors, high-net-worth individuals, and sometimes even pension funds or sovereign wealth funds.  These funds are then deployed to acquire stakes in established companies with the aim of facilitating growth, restructuring, or turnaround. PE investors typically take a hands-on approach, providing managerial expertise and operational guidance to maximise the value of their investments.  The goal is often to enhance the company's performance and ultimately generate significant returns upon exit, which could be through a sale to another company or an initial public offering (IPO). ### Crowdfunding Crowdfunding has emerged as a popular alternative finance mechanism, allowing entrepreneurs to raise capital from a large number of individuals, typically via online platforms. This democratised approach to fundraising enables startups to access capital without traditional financial intermediaries like banks or venture capitalists.  Crowdfunding campaigns may offer various incentives or rewards to backers, ranging from early access to products to equity stakes in the company. This model provides funding, validates market interest, and generates buzz around the venture. ### Strategic partnerships Strategic partnerships involve collaboration between two or more entities to achieve mutual objectives, such as expanding market reach, accessing new technologies, or reducing costs. These partnerships can take various forms, including joint ventures, licensing agreements, distribution partnerships, or research and development collaborations. By leveraging each other's strengths and resources, companies can accelerate growth and mitigate risks while tapping into new markets or enhancing product offerings. ### Foreign direct investment (FDI) ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1718096166008-compressed.png) [Source](https://www.freepik.com/free-vector/global-economy-design_4875115.htm#fromView=search&page=1&position=0&uuid=90fee2be-3349-4c3b-9af0-6c39145a0add)| FDI: how to raise funding for a startup ?  [Foreign Direct Investment](https://www.salt.pe/blog/posts/category/foreign-direct-investment/1) (FDI) occurs when a company based in one country invests in business operations or assets located in another country. FDI can take the form of establishing new subsidiaries, acquiring existing companies, or investing in greenfield projects.  It allows companies to expand their global footprint, access new markets, leverage cost advantages, or secure strategic resources. FDI can bring benefits such as job creation, technology transfer, and economic growth to both the investing and host countries. Still, it also entails risks related to political instability, regulatory changes, and currency fluctuations. ### Accelerators and incubators Accelerators and Incubators are programs designed to support early-stage startups by providing resources, mentorship, and networking opportunities to help them grow and succeed. Accelerators typically offer a fixed-term, cohort-based program focused on rapid growth and scaling, often culminating in a demo day where startups pitch to potential investors.  On the other hand, incubators provide more long-term support, focusing on nurturing the development of fledgling ventures from ideation to market launch. Both models play a vital role in fostering innovation and entrepreneurship by providing guidance, access to capital, and a supportive ecosystem for startups to thrive. How to raise funding for a startup from abroad: best crowdfunding platforms for raising funds for a startup  ------------------------------------------------------------------------------------------------------------ For Indian startups, several platforms offer opportunities to raise funds and garner support for their ventures from international sources. Let’s look at a few of them:  ### Kickstarter Kickstarter is a well-known crowdfunding platform that allows entrepreneurs to showcase their projects and solicit financial backing from a global audience. While Kickstarter primarily caters to creative projects like films, music albums, or innovative gadgets, Indian startups with compelling ideas can still leverage this platform to access capital and engage with backers worldwide.  ### SeedInvest SeedInvest is another platform that connects startups with accredited investors interested in early-stage ventures. While SeedInvest is based in the United States, Indian startups can participate in fundraising campaigns on the platform if they meet certain eligibility criteria. By showcasing their business plans and investment opportunities, Indian startups can attract funding from a diverse pool of investors, fueling growth and scaling their operations. ### Indiegogo Indiegogo is a crowdfunding platform similar to Kickstarter, offering Indian startups a platform to raise capital for their projects. Indiegogo supports a wide range of ventures, including technology innovations, social initiatives, and consumer products.  Indian startups can leverage Indiegogo's global reach and marketing tools to raise awareness about their projects and secure financial support from backers worldwide. With flexible funding options and access to a large community of potential investors, Indiegogo presents a valuable opportunity for Indian startups to raise funds and bring their ideas to life. How does SALT Fintech help startups raise funds? ------------------------------------------------ At SALT, we specialise in assisting startups with their fundraising endeavours. Our innovative solution, '[Table by SALT](https://www.salt.pe/table),' tackles the challenges of securing capital, even from foreign sources.  What sets 'Table by SALT' apart? It streamlines the fundraising process by seamlessly integrating banking, compliance, and documentation into one user-friendly platform. By automating complex procedures such as RBI and ROC filings, our product ensures compliance while saving startups valuable time and resources.  With 'Table by SALT,' startups can focus on their core business activities, confident that their fundraising needs are being efficiently managed. [Visit us](https://www.salt.pe/table) to learn more about SALT Fintech and how we can support your startup's growth! FAQs ---- ### **1\. How can I navigate legal and regulatory hurdles when raising funds from abroad?** Navigating legal and regulatory hurdles involves conducting thorough research on the investment landscape in both your home country and the target market. Seek guidance from legal experts who specialise in cross-border transactions to ensure compliance with regulations related to securities laws, foreign investment restrictions, tax implications, and intellectual property protection.  ### **2\. What are the advantages of equity crowdfunding websites for startups?** Equity crowdfunding websites offer startups access to a broader pool of investors, including accredited and non-accredited individuals, institutional investors, and venture capital firms. By selling equity stakes in their companies, startups can raise larger amounts of capital while maintaining control over their operations and avoiding the debt burden associated with traditional financing. Equity crowdfunding also provides an opportunity to cultivate a community of loyal investors who are aligned with the company's long-term success. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Selling on Fiverr: Fiverr Charges for Sellers That You Should Know Author: Shaun Paul Published: 2024-04-30 Category: Freelancers Meta Title: How much does Fiverr charge? Meta Description: Fiverr’s potential: gain a deeper understanding of Fiverr charges for sellers, and how beneficial a Fiverr seller account is. Tags: freelance gigs , tools for freelancers, freelancing clients , fiverr, Fiverr service fee URL: https://salt.pe/blog/null Starting your freelancing journey for the maximum flexibility, and looking for a platform to reach clients? Fiverr can be your solution, connecting freelancers and businesses seeking various digital services. These services can range from graphic design, content writing, and web development to digital marketing, video production, and more. But how much does Fiverr charge from sellers? ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714465805864-compressed.jpeg) [Source](https://www.fiverr.com/)| Fiverr charges for sellers Understanding Fiverr charges for sellers is vital for successful freelancing on the platform, however. It enables freelancers to manage costs effectively, maximise profits, and develop competitive pricing strategies.  In this article, we understand Fiverr charges for sellers, helping you gain clarity on how this platform operates and how you can maximise your income while delivering exceptional services to a global clientele. Fiverr services  ---------------- Before knowing the Fiverr service fee, let’s find out the services you can offer on the platform. Fiverr spans a diverse range of services: * **Graphic design:** Logo design, illustrations, web design, and more. * **Writing and translation:** Content writing, copywriting, and translation services. * **Digital marketing:** SEO, social media marketing, email marketing, and more. * **Programming and tech:** Website development, app development, and IT support. * **Video and animation:** Video editing, animation, and other multimedia services. * **Music and audio:** Composition, audio editing, and voiceovers. * **Business:** Business consulting, financial advice, and virtual assistants. * **Lifestyle:** Health and wellness, travel, and relationship advice. **How much does Fiverr charge from sellers?** --------------------------------------------- ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714465807343-compressed.png) ** **[Source](https://workspace.fiverr.com/pricing/) | Fiverr charges for sellers** Fiverr charges for sellers include a Fiverr service fee for using the platform. To sell on Fiverr, here are some details you need to know about Fiverr seller account: * Fiverr service fee ranges from 5% to 20% of the total purchase value.  * Fiverr seller account commission fee structure is tiered based on the order value. For orders up to $500, Fiverr charges a 20% commission fee.  * For orders exceeding $500, there’s an additional 5% fee to sell on Fiverr on the portion above $500. For example, if you sell a gig for $1,000, the first $500 will be subject to a 20% commission fee ($100), and the remaining $500 will be subject to a 5% commission fee ($25). Note that Fiverr service fee is calculated based on the total order value, including any extras or add-ons the buyer may have selected. In addition, the platform also levies withdrawal fees on the Fiverr seller account, which depends on the seller’s chosen payment method. To sell on Fiverr, there are added costs for services like Promoted Gigs. **The team behind Fiverr** -------------------------- Fiverr was co-founded by Shai Wininger and Micha Kaufman in 2010. They envisioned a platform that would make it easier for freelancers to offer their services and for clients to find and hire these freelancers. **Fiverr: Core Features** ------------------------- ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714465809136-compressed.png) ** **[Source](https://blog.fiverr.com/?source=explore-tab) |Core attributes of Fiverr** **Want to sell on Fiverr? Know their core attributes first! Fiverr's approach typically involves a commitment to innovation and improvement in the following areas:** ** * User experience: Fiverr continually works to enhance the platform's user-friendliness, making it easier for both buyers and sellers to navigate, communicate, and complete transactions. * Technology and features: Fiverr invests in technology and introduces new features to remain competitive and meet evolving market demands. For example, integrating artificial intelligence and automation tools to streamline processes and improve search results. Fiverr offers services for building AI chatbots using top tools like TensorFlow, PyTorch, OpenAI, Langchain, GCP (Vertex AI), Llama2, and Autgen. [Fiverr Logo Maker](https://www.fiverr.com/logo-maker/) lets freelancers create stunning logos and graphics in minutes. Meanwhile, [Fiverr AI Auditions](https://pro.fiverr.com/pages/ai-auditions) is a tool that lets voiceover artists audition for roles without even having to read anything from the relevant script. * Community and support: Fiverr is committed to [fostering a supportive community](https://community.fiverr.com/?utm_source=community&utm_medium=eventpage&utm_campaign=20211202_CommunityEventPageNav_CommunityHub) and provides resources, support, and forums for users to exchange knowledge and experiences. * Trust and safety: Fiverr continuously updates policies and procedures to mitigate risks and ensure secure transactions. * Expansion into new markets: Fiverr has been exploring opportunities to expand into new [geographic markets and industries](https://www.fiverr.com/news/france-and-spain-launch), allowing more freelancers and clients to participate. * Sustainability and social responsibility: Like many tech companies, Fiverr is increasingly focused on [sustainability and social responsibility](https://investors.fiverr.com/news-releases/news-release-details/fiverr-releases-its-2022-environmental-social-and-governance-esg), aligning its operations with environmentally friendly and ethical practices. ****Fiverr's core features are therefore driven by the evolving needs of its users and the broader freelance market.  The journey of Fiverr --------------------- Before you consider a Fiverr seller account, it’s important to know their offerings. Fiverr started in 2010 with the idea of providing a platform where people could buy and sell digital services. It initially focussed on small, quick tasks known as "gigs" that were offered for a fixed price of $5.  The simplicity of use and affordability of services provided attracted a diverse range of users, from graphic designers and writers to programmers and digital marketers. Fiverr quickly gained popularity and expanded its service offerings and capabilities. Over the years, with increased Fiverr charges for sellers, the platform underwent several key developments: * Expansion of categories: Fiverr has been continuously expanding its service categories. On November 26, 2019, Fiverr announced that it had expanded its offering to 300 service categories. By the end of 2022, the total number of categories on Fiverr had reached 600, with [AI services](https://investors.fiverr.com/news-releases/news-release-details/fiverr-announces-fourth-quarter-and-full-year-2022-results) being the newest addition. Fiverr diversified its service categories, encompassing a broader range of skills and expertise. This expansion allowed more freelancers to join, catering to the demands of an increasingly diverse clientele.  * Fiverr business: Fiverr launched [Fiverr Business](https://pro.fiverr.com/fiverr-business-solutions?source=footer) with three categories: Fiverr Pro, Fiverr Certified, and Fiverr Enterprise, a platform designed to meet the needs of companies and organisations. It streamlined the way businesses collaborate with freelancers.  Fiverr Pro is for those businesses that require freelance talent to boost in-house resources. Fiverr Certified is designed especially for tech companies who want to give their customers special services by providing them certified experts. Lastly, as the name suggests, Fiverr Enterprise wants to streamline all aspects of sourcing and working with freelance talent. * Pro tiers: [Fiverr introduced "Pro"](https://pro.fiverr.com/?source=footer), enabling experienced and highly skilled freelancers to market themselves as experts in their respective fields. This distinction helped clients find top-quality services. * Seller Plus: Fiverr has a program called “[Seller Plus](https://help.fiverr.com/hc/en-us/articles/360017140717-Seller-Plus-overview)” which has two tiers—Standard or Premium. The eligibility to join these programs and change your seller level is dependent on different requirements and criteria. * Global reach: Fiverr's global reach expanded, making it a platform where individuals and businesses from around the world could connect. Fiverr opened its first European offices in London and Berlin in March 2019. The platform continued to expand its international footprint by launching its global marketplace in two new languages, French and Spanish, on May 4, 2020. This globalisation brought even more diversity to the types of services available.  * Features and tools: Fiverr continually introduced new features and tools to enhance the user experience. These included an improved search and discovery system, communication tools, and analytics to help sellers optimise their offerings. In 2023, Fiverr introduced several [new business solutions to reshape the way freelancers and clients interact](https://www.fiverr.com/news/product-release-2023). * Fiverr Neo™: [Fiverr Neo™](https://investors.fiverr.com/news-releases/news-release-details/fiverr-unveils-new-product-line-next-level-solutions) is a new product launched by Fiverr on August 1, 2023. It’s a neural network-powered tool designed to tackle the complex task of matching talent with customers.  * Business Solutions Suite: A [brand new suite](https://www.fiverr.com/news/product-release-2023) was introduced for mid and large-size businesses. Plan your freelancing career and finances ----------------------------------------- We hope the Fiverr charges for sellers are clear to you, as the Fiverr service fee structure will be crucial for you in planning your business finances. With the knowledge, you can make informed decisions, optimise your pricing strategies, and ensure that your hard-earned money remains in your pocket.  If you are planning to go global with your freelancing endeavour, along with finding the right platform for your business needs, you need to focus on managing your finances efficiently. SALT Fintech can be your ideal partner! For freelancers and businesses looking to expand their horizons, we have simplified the way you deal with international transactions. With SALT, you can receive [international payments](https://www.salt.pe/remittance) in multiple foreign currencies using a local account within 24 hours, in comparison to the traditional method of 4-5 business days.  [Visit us today](https://www.salt.pe/) to learn more and take the first step towards financial freedom and global success!  FAQs ---- ### 1\. Is Fiverr worth it as a seller?  A Fiverr seller account is certainly beneficial for you. To sell on Fiverr, it charges "gig" packages with Basic, Standard, and Premium options. These options provide freelancers with more offerings and upselling potential to clients, eliminating the need for rate negotiation.**  ### **2\. Which is better, Upwork or Fiverr?** **If you are looking to offer one-off, quick services, a Fiverr seller account is the place to go. On the other hand, if you want to take up larger projects and long-term work, [Upwork](https://salt.pe/blog/upwork-marketplace-for-freelancers) could provide a better solution.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Fiscal Deficit? What's India’s fiscal deficit in 2024-25? Author: Sudhanshu Choudhary Published: 2024-04-09 Category: Finance in India Meta Title: Fiscal Deficit in India: Explained Meta Description: Discover the ins and outs of fiscal deficit and gain insights into India's fiscal journey. Look at what Budget 2024 says for the fiscal deficit in 2024-25. Tags: business finance , government policy, budget 2024, union budget 2024 URL: https://salt.pe/blog/fiscaldeficit-india-2024 The release of the [Budget 2024](https://www.indiabudget.gov.in/doc/bh1.pdf) has brought fiscal deficit targets into sharp focus. Fiscal deficits are pivotal in understanding the government's commitment to fiscal discipline while addressing the pressing needs of development, infrastructure, and social welfare. In this blog, we’ll uncover ‘what is fiscal deficit?’ and look at the stance of the Union Budget 2024 over fiscal deficit in 2024-25.  What is fiscal deficit?  ------------------------ Simply put, a fiscal deficit occurs when a government's total expenditures exceed its revenues, excluding funds obtained through borrowing. It reflects the extent to which a government is spending more than it's earning within a fiscal year. Typically, fiscal deficit is represented as a percentage of a country’s Gross Domestic Product (GDP).  A high fiscal deficit may indicate that a government is overspending relative to its revenue, potentially leading to increased public debt if borrowing is used to cover the deficit. Remember though that a certain level of deficit spending can be strategic, particularly during economic downturns, where increased government expenditure (financed through borrowing) can stimulate economic growth. Nevertheless, persistent and substantial fiscal deficits can give rise to economic challenges, including inflation, higher interest rates, and a growing debt burden on future generations.  Components of fiscal deficit ---------------------------- The components of fiscal deficit can be broadly classified into two primary categories; let's delve into a detailed breakdown:  ### Government revenues These encompass funds collected by the government, mainly through: * **Tax revenues:** This category encompasses direct taxes (such as income tax and corporate tax) and indirect taxes (including goods and services tax, sales tax, and excise duty). * **Non-tax revenues:** These revenues originate from sources other than taxes, such as profits derived from public sector enterprises, fees, fines, and royalties. ### **Government expenditures** This denotes the financial outlays made by the government across various domains, including: * **Capital expenditures:** This encompasses expenditures on infrastructure, buildings, healthcare facilities, and equipment, which yield long-term economic benefits. * **Current expenditures:** These expenses encompass day-to-day operational costs, including government employee salaries, subsidies, social security benefits, interest payments on debt, and infrastructure maintenance. **Fiscal deficit in India: a History** -------------------------------------- Over the past decade, fiscal deficit in India has seen considerable fluctuation, influenced by various economic policies and global events.  India's fiscal management is primarily guided by the [Fiscal Responsibility and Budget Management Act (FRBM)](https://dea.gov.in/sites/default/files/FRBM%20Act%202003%20and%20FRBM%20Rules%202004.pdf). The FRBM Act aimed to limit the central government's fiscal deficit to 3% of GDP and achieve a balanced revenue budget by the end of 2008-09. However, the actual outcomes have diverged from these targets.  **​ ** **Let’s look at India’s fiscal journey:**  * The past decade has seen periods of modest fiscal deficits, followed by significant expansions due to increased government spending, economic downturns, and emergencies such as the global financial crisis of 2008 and the COVID-19 pandemic in 2020.  * Stimulus measures and increased public spending in response to these crises markedly widening the fiscal deficit.  * The introduction of the GST in 2017 aimed to streamline taxation and enhance revenue collection, but the desired fiscal consolidation faced challenges from subsidy burdens and weak tax revenues​​. * Despite these challenges, efforts at fiscal consolidation have been noted. State governments reduced their fiscal deficit between 2003-04 and 2007-08. **​ ** The historical pattern of fiscal management in India highlights the ongoing struggle to maintain this balance in the face of political, economic, and social pressures. **Budget 2024: fiscal deficit in 2024-25** ------------------------------------------ ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1712651584236-compressed.jpeg) ** **[Source](https://www.alamy.com/planning-2024-budget-new-year-symbol-businessman-turns-a-wooden-cube-and-changes-words-budget-2023-to-budget-2024-beautiful-white-background-copy-s-image560684855.html) | Fiscal deficit target 2024-25** During her Budget 2024 speech on February 1, Finance Minister Nirmala Sitharaman revealed that the government anticipates the [fiscal deficit in 2024-25 to be 5.1 % of GDP for FY25](https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/feb/doc202421304301.pdf).  **​ ** * To cover this deficit in FY25, the government plans to borrow Rs.14.13 and Rs.11.75 lakh crore through dated securities, which is less than the borrowings in FY24. * Sitharaman emphasised the government's commitment to fiscal consolidation, aiming to [reduce the deficit below 4.5 % by 2025-26](https://pib.gov.in/PressReleasePage.aspx?PRID=2001122).  * She mentioned that for 2024-25, total receipts (excluding borrowings) and total expenditure are estimated at Rs. 30.80 and Rs.47.66 lakh crore, respectively, with tax receipts expected to be Rs.26.02 lakh crore.  * Despite increased government spending to boost the economy, the fiscal deficit decreased due to higher tax receipts and non-tax revenue. In the first nine months of FY24, the fiscal deficit was at Rs.9.82 trillion, constituting 55% of the annual estimate. Total receipts during this period were Rs.20.72 trillion, with tax receipts at Rs.17.30 trillion and non-tax revenue at Rs.3.12 trillion.  * Total expenditure rose to Rs.30.54 trillion, accounting for 67.8% of the annual estimate.  * India's fiscal deficit in 2024-25 has decreased since FY21, reaching 6.4% in FY23 from 9.2 % in FY21 due to COVID-related expenditure. Sitharaman aimed to narrow the fiscal deficit to 5.9 % of GDP in FY24 in her previous Budget speech and has now revised the target to 5.8% of GDP. **Implications of fiscal deficit target 2024-25** ------------------------------------------------- The government with a fiscal deficit target of 5.1% of GDP for FY 2024-25, aims for fiscal consolidation while also [boosting capital expenditure by 11% to Rs.11.11 trillion](https://pib.gov.in/PressReleasePage.aspx?PRID=2001124).  ** Additionally, the Budget highlights include maintaining tax stability, enhancing capital expenditure for growth support, and a gradual approach towards meeting the FRBM target of a 3% fiscal deficit, which is expected to take several years​​​​.  The implications of fiscal deficit in 2024-25 include:  * Increased government borrowing: Fiscal deficit often leads to increased borrowing by the government from domestic and international sources. * Higher debt levels: Persistent fiscal deficits can result in a higher national debt burden over time. * Impact on interest rates: High fiscal deficits may lead to higher interest rates as the government competes with private borrowers for funds. * Potential inflationary pressures: If the fiscal deficit is financed by the central bank printing money, it can lead to inflationary pressures in the economy. * Crowding out private investment: High government borrowing can crowd out private investment by absorbing available funds in the financial markets. * Credit rating implications: Persistent fiscal deficits can negatively impact a country's credit rating, making it more expensive to borrow in the future. * Economic instability: Unsustainable fiscal deficits can lead to economic instability and uncertainty about future government policies. ** ** Clearly, managing the fiscal deficit is a crucial aspect of a country's economic policy and financial stability. The Interim Budget 2024 is designed to maintain India's growth momentum while carefully managing the fiscal deficit in 2024-25, indicating a prudent fiscal approach ahead of the general elections and amid global economic uncertainties.  Looking to streamline international finances for your business based in India? SALT Fintech can help! Visit [our website](https://www.salt.pe/) to know more about our services, and take a look at [our blog](https://www.salt.pe/blog) for more about the world of finance! FAQs ---- 1. ### How to calculate fiscal deficit? To calculate fiscal deficit, subtract a government's total expenditure from its revenue for a specific period, usually a fiscal year.  1. ### Is fiscal deficit good or bad? The fiscal deficit can be seen as both good and bad depending on the context. It's generally considered bad when it's too high and leads to unsustainable debt levels, but it can be good when used to stimulate economic growth or invest in long-term development. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FDI vs FPI : What you need to know! Author: Ankit Parasher Published: 2024-04-05 Category: Foreign Direct Investment Meta Title: FDI vs FPI: Understanding the Difference Meta Description: Curious about the differences of FDI vs FPI? Let’s explore these concepts and their impacts on businesses and investors in today's economy! Tags: Foreign Direct Investment , FDI, FDI and FPI, FPI, FDI vs FPI, foreign portfolio investment URL: https://salt.pe/blog/null Understanding the dynamics of international investment is crucial for businesses and investors navigating the global economy. Foreign Direct Investment (FDI) and Foreign Portfolio Investment (FPI) are two key channels through which capital flows across borders. While FDI and FPI play significant roles in shaping economies and financial markets, they differ in their objectives, modes of operation, and impacts. In this blog, we delve into the differences of FDI vs FPI, and explore their characteristics, implications, and considerations for businesses and investors.  What is foreign direct investment?  ----------------------------------- * **Foreign Direct Investment (FDI) refers to the investment made by a business or entity based in one country into a business or entity based in another country.**  * **FDI is when Indian companies invest capital directly into businesses or entities located in foreign countries.**  * **This type of investment allows Indian entities to expand their operations internationally and gain access to new markets, resources, and opportunities.**  * **FDI plays a significant role in global economic development, contributing to job creation, technology transfer, and fostering [international trade](https://www.salt.pe/blog/foreigntransactionvscurrencyconversion) relations.** **What is foreign portfolio investment?**  ------------------------------------------ * **Foreign Portfolio Investment (FPI) refers to the investment made by individuals, institutions, or entities from foreign countries into financial assets such as stocks, bonds, and other securities of a country.**  * **Unlike FDI, which involves a direct stake in a business and often entails management control, FPI is generally more passive in nature.** * **Foreign investors engaging in FPI typically seek financial returns through dividends, interest payments, and capital appreciation, without actively participating in the management or operations of the invested assets.**  **FDI vs FPI: differences** --------------------------- **FDI and FPI differ in several key aspects:** Basis of difference FDI FPI Level of control FDI involves a direct investment in a business or asset, giving the investor significant control and influence over the entity's operations. FPI entails investing in financial assets such as stocks and bonds, and the investor typically does not have direct control over their management. Nature of Investment In FDI vs FPI, FDI usually involves a long-term commitment, with the investor seeking to establish a lasting presence in the host country and actively participate in its economic activities.  FPI is often more short-term oriented, with investors primarily focused on earning financial returns through dividends, interest payments, and capital gains. Purpose FDI is typically undertaken to gain access to new markets, resources, and technologies, expand business operations, and establish strategic partnerships.  FPI is primarily driven by investment objectives such as portfolio diversification, risk management, and capital appreciation. Risk and return FDI generally carries higher risks and potential rewards compared to FPI.                                                               While FDI offers the potential for greater control and higher returns over the long term, it also entails greater exposure to risks such as political instability, regulatory changes, and currency fluctuations.  In FDI vs FPI, FPI offers greater liquidity and flexibility but may be more susceptible to market volatility and external shocks. Regulatory environment The regulatory framework governing FDI and FPI may differ, with governments often imposing specific restrictions, regulations, and incentives to encourage or regulate foreign investments in their respective countries. FDI regulations may focus on factors such as foreign ownership limits, sectoral restrictions, and national security concerns. In contrast, FPI regulations may involve measures to manage capital flows, safeguard financial stability, and promote investor confidence. ** ​ Overall, while both FDI and FPI play important roles in facilitating cross-border investments and fostering economic development, they differ in their objectives, nature, and implications for investors and host countries. FDI and FPI: examples  ---------------------- Let’s look at the examples of FDI and FPI to clearly understand them: ### Example of FDI  ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1712312788208-compressed.jpeg) [Source](https://www.istockphoto.com/photos/fdi) | Example of FDI  ​ Let’s understand FDI vs FPI better with examples. Say an Indian automotive manufacturer decides to build a manufacturing plant in the United States in collaboration with a US-based entity. They invest directly in constructing the plant, purchasing equipment, and hiring local workers. This move allows them to expand globally, access new markets, and leverage resources in the United States. It contributes to economic growth and job creation in both countries. ### Example of FPI   ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1712312789352-compressed.jpeg) [Source](https://stock.adobe.com/search/images?k=fpi) | Example of FPI  For the latter in FDI vs FPI, an example would be when an Indian investor purchases shares of a multinational technology company listed on the New York Stock Exchange. In this case, the Indian investor is buying financial assets (shares) of a foreign entity without acquiring ownership or control over the company. The investment is purely financial, aimed at generating returns through dividends or capital appreciation. Unlike FDI, FPI does not involve direct involvement in the management or operations of the company. Instead, the investor relies on market performance and economic conditions to determine the value of their investment. How to pick between FDI and FPI ?  ---------------------------------- Choosing one out of FDI vs FPI depends on various factors, including your investment goals, risk tolerance, and level of control: ### Investment goals * If you seek long-term ownership and control in a business, FDI may be suitable. FDI allows you to establish or acquire a stake in a company, contributing to its growth and profitability over time. * FPI might be preferable if you aim for short-term gains from market fluctuations. FPI involves buying and selling financial assets like stocks and bonds, providing opportunities for quick profits. ### Risk tolerance * FDI typically entails higher risks due to the long-term commitment and direct involvement in business operations. Market volatility, regulatory changes, and economic downturns can affect FDI ventures significantly. * FPI generally involves lower risks as investments are made in financial markets rather than directly in businesses. However, FPI returns may still be subject to market risks and fluctuations. ### Control and management * FDI offers greater control and influence over the invested business, allowing you to make strategic decisions and actively manage operations. * FPI provides limited control over the underlying assets, as investment decisions are typically based on market trends and portfolio diversification rather than direct management involvement. ### Regulatory environment * FDI often requires compliance with stringent regulations and approval processes set by the host country, which can vary depending on the industry and jurisdiction. * FPI involves adherence to market regulations and may require compliance with foreign exchange rules and investment restrictions imposed by the host country's authorities. Ultimately, the decision between FDI and FPI should align with your investment objectives, risk appetite, and strategic considerations.  FDI vs FPI: trends in India  ---------------------------- Before we head out, let’s see some recent trends India has witnessed when it comes to the FDI vs FPI debate:  * FDI inflow into India experienced a remarkable surge, doubling to [$596 billion](https://www.thehindubusinessline.com/economy/budget/budget-2024-doubling-of-fdi-inflow-in-2014-23-to-596-bn-marks-golden-era-sitharaman/article67799869.ece#:~:text=Foreign%20Direct%20Investment%20\(FDI\)%20inflow,Nirmala%20Sitharaman%20pointed%20in%20her) during the period of 2014-23 compared to the previous period of 2005-13, as highlighted by Finance Minister Nirmala Sitharaman in her [Budget speech for 2024-25](https://www.thehindubusinessline.com/economy/budget/budget-2024-doubling-of-fdi-inflow-in-2014-23-to-596-bn-marks-golden-era-sitharaman/article67799869.ece#:~:text=Foreign%20Direct%20Investment%20\(FDI\)%20inflow,Nirmala%20Sitharaman%20pointed%20in%20her).  * This surge is indicative of a golden era in FDI inflows, with figures showing a significant rise from $36 billion in 2013-14 to a record high of $85 billion in 2021-22. * The focus of [bilateral investment treaties (BITs) being negotiated with foreign partners](https://m.economictimes.com/news/economy/policy/negotiating-bilateral-investment-treaties-to-sustain-fdi-growth-fm-sitharaman/articleshow/107332217.cms) now revolves around the concept of 'first develop India,' a play on the FDI acronym. The government aims to ensure that foreign investment flows continue to support India's development interests through these BITs.  * However, negotiations with countries like the UK and the EU are posing challenges, particularly concerning investor-state dispute settlement provisions and treaty definitions.  * As India strives to become the third-largest economy, aligning its treaties with global investment practices and addressing concerns raised by previous treaty cancellations will be critical for fostering sustained foreign investment. * Foreign Portfolio Investors (FPIs) showed a strong interest in Indian equities and debt, injecting around ₹8,772 crore (just over $1 billion) in the [first week of 2024](https://www.thehindubusinessline.com/markets/fpis-make-a-strong-start-in-2024-inject-over-1-billion-in-first-week/article67716106.ece). Data from depositories revealed that ₹4,773 crore went into equities, while ₹3,999 crore was allocated to debt securities.  * This follows a record-breaking $8 billion FPI inflow into equities and $2 billion into debt in December 2023. The robust inflows at the start of 2024 have sparked speculation that this year may outperform 2023 in terms of FPI investments.  * India emerged as the top destination for FPIs in 2023, with net inflows recorded for eight consecutive months.  * Falling interest rates and a cooling US dollar could bolster emerging markets, including India, in 2024. This positive momentum in FPI inflows could support Indian markets, despite concerns about valuation.  * With the impending inclusion of sovereign debt in global bond indices like the J P Morgan EM Bond Index, debt markets in India are expected to become more attractive than equities. This anticipated trend has already seen FPIs positioning themselves to capitalise on India's bond inclusion from June 2024. Revolutionising startup funding: Table by SALT  ----------------------------------------------- We hope this post has clarified FDI vs FPI for you! ****SALT Fintech is transforming early-stage startup funding with an innovative solution, ['Table by SALT](https://www.salt.pe/table).' Our platform simplifies the fundraising process by combining banking, compliance, and documentation into one seamless experience.  'Table by SALT' automates tasks like RBI and ROC filings, ensuring compliance while saving startups time and resources. With our solution, startups can focus on their core activities, knowing their fundraising needs are in capable hands.**  ** Learn more about SALT and how we can help your startup thrive! [Visit us today](https://salt.pe/)! ​ **** FAQs ---- ### 1\. What are the main risks associated with FDI and FPI?  Risks associated with FDI include political instability, regulatory changes, and currency fluctuations, while FPI risks may include market volatility, liquidity issues, and changes in investor sentiment. ### 2\. Can individuals participate in FDI and FPI?  Corporations typically undertake FDI, while individuals can participate in FPI through investment vehicles such as mutual funds or ETFs. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Tax benefits for startups in India in 2024 Author: Shaun Paul Published: 2024-04-02 Category: startup finance Meta Title: Tax benefits for startups in India in 2024 | SALT Meta Description: Find out the tax benefits for startups in India in 2024. Explore opportunities for early-stage founders and SMEs to move their businesses forward. Tags: tax benefits to startups, tax exemption for startup, startup india scheme, tax benefits for startups, startup exemptions from tax URL: https://salt.pe/blog/null Tax benefits for startups are an important pillar in India's ecosystem, supporting entrepreneurs' hopes and objectives. The [PHDCCI](https://economictimes.indiatimes.com/news/economy/indicators/indias-economy-to-grow-at-8-8-3-pc-in-current-fiscal-phdcci/articleshow/109378437.cms) projects that India's economy will grow at a rate of 8-8.3% this fiscal year, reaching USD 34.7 trillion in GDP by 2047. With recent government proposals to [expand tax incentives](https://timesofindia.indiatimes.com/business/budget/budget-2024-government-proposes-extension-of-tax-benefits-for-startups-until-march-2025/articleshow/107322072.cms), there are opportunities for businesses, investors, and stakeholders alike. Initiatives such as [Startup India](https://www.startupindia.gov.in/), launched under Prime Minister Narendra Modi's visionary leadership, have brought in a new era of innovation and progress.  The article looks into the opportunities for Indian startups, from early-stage startup investors to SMEs, to receive the most tax benefits in 2024. Extension of tax benefits for startups  --------------------------------------- As certain tax benefits for startups and investments, including exemptions for specific income, are set to expire in 2024, Finance Minister Nirmala Sitharaman [addresses](https://www.livemint.com/budget/news/budget-2024-live-updates-fm-nirmala-sitharaman-speech-1-feb-2024-income-tax-railway-fmcg-ev-healthcare-hra-defence-auto-11706689827986.html#:~:text=The%20extension%20of%20tax%20benefits,endeavors%20and%20promote%20sustainable%20growth.) the urgency. She suggests extending the expiration date until March 31, 2025 to provide continued assistance for startups and investors. "Certain tax benefits to startups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024. To provide continuity in taxation, I propose to extend the date to 31.03.2025." - Finance Minister Nirmala Sitharaman. Utilisation of tax benefits to startups --------------------------------------- ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714640105326-compressed.png) [Source](https://www.freepik.com/free-photo/medium-shot-colleagues-working-desk_29716917.htm#fromView=search&page=1&position=4&uuid=a587d62c-4bd0-4aad-b459-50389d1fba0b)| Tax benefits for startups  Startups in India have been making use of numerous incentives provided by the government to promote their growth and innovation. Let's look at how these initiatives are benefiting early-stage startup investors and SMEs: ### Startup India initiative The Startup India initiative launched as a visionary objective by Prime Minister Narendra Modi, aims to create an environment beneficial to the growth of businesses. Startup India, started in 2016, offers tax and non-financial incentives to entrepreneurs. Tax benefits under Startup India scheme include incentives, self-certification, and fast-track patent examination. ### Angel tax exemption One significant hurdle for startups has been the Angel Tax, which imposed taxes on investments above fair market value. However, under the [Angel Tax exemption](https://www.startupindia.gov.in/content/sih/en/bloglist/blogs/comprehending_the_angel_tax_Exemption.html), introduced in the Union Budget 2016, startups are now exempted from this tax. This income tax exemption for startup companies is only valid for those with a paid-up capital of up to INR 25 crores and DPIIT (Department for Promotion of Industry and Internal Trade) recognition. ### Research and Development (R&D) tax credits Startups rely on innovation, which the government acknowledges by providing R&D tax credits. Under Section 35(2AB) of the Income Tax Act, entrepreneurs can claim a 150% weighted deduction for expenses related to eligible in-house R&D. This deduction applies to both capital and revenue expenses, allowing entrepreneurs to engage in R&D and promote technological development. ### Deductions for expenses Startups often incur various expenses during their initial years of operation. The government allows startups to claim deductions for certain expenses, lowering their taxable revenue. Startups can avail deductions under various sections of the Income Tax Act, such as Section 80C for investments in specified instruments, Section 80D for health insurance premiums, and Section 80E for education loan interest. These deductions provide startups with much-needed financial relief during the early stages of growth. ### Tax holiday for eligible sectors Eligible startups can enjoy a tax holiday for a specified period to further stimulate growth in specific sectors. The government offers tax holiday benefits to entrepreneurs in certain industries, such as manufacturing, software development, biotechnology, and renewable energy. ### Compliance with Goods and Services Tax (GST) Navigating through GST compliance can be complex for startups. However, for businesses in most states, an annual turnover of less than Rs. 40 lakhs (for supply of goods) and Rs. 20 lakhs (for supply of services) [does not warrant GST registration](https://www.indiafilings.com/learn/what-is-the-minimum-limit-for-gst-registration/#:~:text=However%2C%20for%20businesses%20operating%20in,for%20the%20supply%20of%20services\).). In special category states, the threshold limit for a GST registration is an annual turnover of Rs. 20 lakhs and 10 lakhs for the supply of goods and services, respectively. Furthermore, startups can benefit from a variety of [GST schemes](https://salt.pe/blog/firs-for-gst-refund), including the Composition Scheme and the Quarterly Return Filing Scheme, which simplify compliance requirements and reduce administrative costs. ### Transfer pricing compliance Transfer pricing compliance is critical for companies in foreign business operations. To prevent tax evasion and ensure fair taxation of cross-border transactions, the Indian government introduced transfer pricing legislation that is in line with international standards. Startups doing foreign transactions must comply with transfer pricing documentation and reporting regulations to ensure accountability and transparency in their operations. ### Employee Stock Option Plans (ESOPs) ESOPs are an effective way for businesses to attract and retain talent. Under the Income Tax Act, ESOPs offered by startups are taxed when employees exercise or sell their shares, rather than when they are granted. Employees can put off tax payments until they see the advantages of their shares, aligning their interests with the startup's long-term growth. Conclusion  ----------- As India's economy approaches historic milestones, the government's commitment to developing the startup ecosystem serves as a light of hope for ambitious entrepreneurs. With tax benefits under Startup India scheme and recent tax incentive expansions, the landscape is ready for businesses to thrive and innovate. Looking to improve compliance management or facilitate inbound remittances for your startup or SME? Explore SALT's complete solutions targeted for B2B clients, such as low-cost compliance handling and inward remittances processed within 24 hours at the lowest rate of 1.75 per cent. Connect with [SALT](https://salt.pe/) Fintech today to streamline your financial operations and boost your business to success! FAQs ---- 1\. What are the tax proposals for Budget 2024?  The tax proposals for Budget 2024 include an extension of tax benefits for startups, sovereign wealth funds, and certain investment units until March 31, 2025. Finance Minister Nirmala Sitharaman aims to provide continuity in taxation. 2\. How do startups get tax-exempt?  Startups can avail of tax benefits under the Startup India scheme by meeting certain eligibility criteria. They must have a turnover below INR 100 crore in any financial year and comply with specified guidelines. Additionally, startups recognised by the DPIIT can benefit from exemptions such as Angel Tax under certain conditions. 3\. What are the benefits of Budget 2024?  Budget 2024 offers extended tax benefits, promoting stability and growth in the startup ecosystem. Startups, sovereign wealth funds, and investment units receive tax incentives until March 31, 2025.  4\. What is the budget for startups in 2024?  Finance Minister Nirmala Sitharaman announced an INR 1 lakh crore corpus for tech-savvy youth, with 50-year interest-free loans for long-term financing or refinancing at low or no interest rates. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Boosting B2B Customer Acquisition: A Guide to Global Expansion Author: Shaun Paul Published: 2024-03-27 Category: Building A Company Meta Title: B2B Growth Guide Meta Description: Looking for ways to acquire international B2B clients? This guide is your roadmap to success, packed with actionable tips and insights. Tags: grow your business, business growth , startup guide , business scale , B2B URL: https://salt.pe/blog/b2b-growth-guide The global B2B market is expanding at an unprecedented rate, opening up numerous opportunities for businesses worldwide. One of the most effective strategies to tap into this growth is finding foreign B2B clients. This article will explore strategies to help businesses acquire international B2B clients and expand their operations [globally](https://www.salt.pe/blog/foreigntransactionvscurrencyconversion). ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/dummy-1711519406535-compressed.png) ### Leveraging LinkedIn for Client Acquisition LinkedIn, with its vast network of professionals and businesses, is an excellent B2B client acquisition platform. Using LinkedIn's advanced search features, businesses can identify potential foreign B2B clients and initiate meaningful conversations. • Building a Strong LinkedIn Profile A strong LinkedIn profile is the first step towards attracting foreign B2B clients. Businesses should ensure their profile is complete and professional and showcases their offerings effectively. • UtiliSing LinkedIn's Advanced Search LinkedIn's advanced search feature allows businesses to find potential foreign B2B clients based on industry, location, and company size. This targeted approach can increase the chances of successful B2B client acquisition. • Engaging with Potential Clients It is highly important to engage with others on LinkedIn. Businesses must try to engage with potential B2B clients from foreign countries by leaving comments on their posts, sharing relevant content, and sending personalised connection requests. ### Answering Questions on Quora Quora, a platform for sharing knowledge, can be a goldmine for businesses seeking foreign B2B clients. By answering industry-specific questions, businesses can showcase their expertise and attract potential international B2B clients. • Finding Relevant Questions Businesses should actively search for questions related to their industry. By providing valuable answers, they can attract potential foreign B2B clients. • Showcasing Expertise When answering questions on Quora, businesses should aim to showcase their expertise. This can help build trust with potential foreign B2B clients. • Building a Strong Quora Profile A strong Quora profile can increase a business's credibility. Businesses should ensure their profile is complete and highlights their expertise. ### Utilising Twitter for B2B Connections Though often overlooked, Twitter can be a powerful tool for B2B client acquisition. Businesses can connect with potential international B2B clients and industry influencers using Twitter's advanced search and filtering tools. • Using Twitter Lists Twitter lists can help businesses organise and track potential foreign B2B clients. By adding these clients to a list, businesses can easily monitor and engage with their tweets. • Participating in Twitter Chats Twitter chats are an excellent way for businesses to connect with potential foreign B2B clients. Businesses can showcase their expertise and build relationships by participating in chats related to their industry. • Leveraging Twitter Ads Using Twitter ads can be advantageous for businesses seeking to increase their reach and attract potential international B2B customers. By targeting ads strategically, businesses can enhance their visibility and attract a wider clientele base. ​** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1711519492099-compressed.png) ​**[Source](https://www.salesken.ai/blog/b2b-customer-journey-steps)| Boosting B2B Customer Acquisition: A Guide to Global Expansion**​ **​ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ### Exploring Public Contract Boards Public contract boards can be an excellent source of foreign B2B business opportunities. By actively searching for and bidding on relevant contracts, businesses can significantly increase their chances of acquiring foreign B2B clients. • Identifying Relevant Contracts Businesses should regularly check public contract boards for contracts relevant to their industry. They can acquire new foreign B2B clients by bidding on these contracts. • Crafting a Winning Proposal A winning proposal can significantly increase a business's chances of securing a contract. Businesses should ensure their proposals are professional and persuasive and highlight their unique selling points. • Building Relationships with Contracting Officers Building relationships with contracting officers can increase a business's chances of winning contracts. Businesses should aim to understand the needs of the contracting officer and how their offerings can meet these needs. ### Remember to Look for the Perfect Banking Partner Expanding business operations globally requires finding ways to attract foreign B2B clients, which is crucial. By leveraging platforms like LinkedIn and Twitter, answering questions on Quora, and exploring public contract boards, businesses can significantly enhance their B2B client acquisition efforts and tap into the expanding global B2B market. If you’re considering international expansion as an Indian business, looking for the perfect banking partner is just as crucial as global B2B client acquisition. Traditional wire transfers can be a nuisance, as the waiting period is longer and there are greater chances of human errors. The payment gateways offered by various global entities can make for a better option, but there too you have a number of factors to worry about, namely currency conversion and associated fees. This is where [Salt Fintech](https://salt.pe/) can be of help, however. Salt Fintech is a neobank that allows you the convenience of global banking with local accounts, and along with international payments, we also take care of compliances for you, so you can truly sit back and relax. Partner with Salt Fintech today and receive cross-border transfers in over six different foreign currencies, visit our website [here](https://salt.pe/)! FAQ --- 1. **Why should you consider international B2B clients acquisition?** Acquiring international B2B clients offers you a number of compelling advantages, such as: * Firstly, it expands your customer base, allowing for greater revenue potential as well as enhanced business growth.  * Secondly, it enhances diversification, reducing your reliance on a single market.  * Thirdly, it provides you with opportunities for knowledge exchange, cultural understanding, and innovation.  * Fourthly, international B2B clients can offer you access to new markets, partnerships, and resources.  * Finally, global B2B client acquisition strengthens your brand's reputation and credibility, positioning the company as a global player in the industry.  ** ​ Overall, acquiring international B2B clients can drive profitability, resilience, and long-term success for your Indian business 1. What is the best global banking solution as an Indian business? ** As an Indian business, you have traditional wire transfers and global payment gateways like PayPal and Payoneer for global banking. However, both methods can cost you excessively in terms of both time and money. Salt Fintech is a neobanking solution that simplifies global banking for you, allows you to receive international payments in over six currencies, and even handles compliance for you. Visit [our website](https://salt.pe/) today to learn more about how we can be the ideal solution for your global banking needs! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Indian Corporate and Startup tax laws: An overview Author: Udita Pal Published: 2024-03-07 Category: Finance in India Meta Title: Corporate Tax Laws | Startup Tax Laws Meta Description: Unclear about Indian corporate tax laws? Read ahead as we summarise corporate taxes in India and make it easy for you to comprehend! Tags: government policy, budget 2024, tax exemption for startup, startup exemptions from tax URL: https://salt.pe/blog/corporate-tax-laws While operating a business, tax laws can tend to get tricky to grasp, especially for new founders starting their companies. At the same time, navigating through taxes with full compliance is essential to avoid sanctions or penalties from regulators. Corporate taxes in India are also differentiated into multiple rates and implemented based on various factors of your business. This article attempts to simplify Indian corporate tax laws for the country’s budding entrepreneurs and businesspersons! ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1716894013241-compressed.png) [Source](https://www.freepik.com/free-vector/woman-with-arrangement-clipboard-monetization-pact-idea-signing-license-business-deal-profitable-contract-important-documentation-vector-isolated-concept-metaphor-illustration_11668683.htm#query=corporate%20taxes&position=2&from_view=search&track=ais&uuid=5a6eb83e-c94b-48d5-bcd8-79efb4c9b6f6) | Indian corporate tax laws Indian corporate tax laws ------------------------- ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1716894015296-compressed.png) [Source](https://www.freepik.com/free-vector/tax-preparation-concept-illustration_106375912.htm#query=corporate%20taxes&position=1&from_view=search&track=ais&uuid=5a6eb83e-c94b-48d5-bcd8-79efb4c9b6f6) | Corporate Taxes in India The [Income Tax Act of 1961](https://incometaxindia.gov.in/pages/acts/income-tax-act.aspx) of India mandates all companies operating in India to pay taxes on their income. However, there is a difference in corporate income tax between foreign companies and domestic companies. Domestic corporations in India are registered under the [Indian Companies Act 2013](https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf) and are liable to pay corporate income tax on their overall income. On the other hand, foreign companies that operate in India only have to pay a corporate income tax on their incomes arising from India. Indian corporate tax laws have several sections for different corporate tax rates that are applicable to companies. Here are some of them: ### Section 115BA [Section 115BA](https://incometaxindia.gov.in/_layouts/15/dit/pages/viewer.aspx?grp=act&cname=cmsid&cval=102120000000073329&searchfilter=%5B%7B%22crawledpropertykey%22:1,%22value%22:%22act%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:0,%22value%22:%22income-tax+act,+1961%22,%22searchoperand%22:2%7D,%7B%22crawledpropertykey%22:29,%22value%22:%222019+\(no.+2\)%22,%22searchoperand%22:2%7D%5D&k=&isdlg=0) is applicable to companies that are set up or registered on or after March 1, 2016. Moreover, the section is only applicable to companies that are engaged in manufacturing and production. A flat Indian corporate tax rate of 25% is levied on companies under section 115BA, but they can only apply for this section if they do not claim any deductions or exemptions while filing their taxes. [In 2019](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1585641), the Government of India introduced two new sections that enabled companies to pay lower corporate tax rates in India.  The [Taxation Laws (Amendment) Ordinance 2019](https://prsindia.org/billtrack/prs-products/prs-legislative-brief-3346) enabled this change in corporate tax rates in India. Those domestic companies who do not opt for the sections can continue to pay a 25% corporate income tax for an annual turnover of upto INR 400 crores. Other domestic companies with turnovers beyond this mark would have to pay a corporate income tax of 30%. These new sections, listed below, ushered in a new period for corporate taxes in India: ### Section 115BAA All companies filing under [Section 115BAA](https://incometaxindia.gov.in/acts/taxation%20laws%20\(amendment\)%20act,%202019/102520000000110028.htm) are liable to pay taxes at an Indian corporate tax rate of 22%. This rate is applicable to companies that do not claim deductions or exemptions. Under this section, companies cannot set off any losses carried forward. ### Section 115BAB [Section 115BAB](https://incometaxindia.gov.in/acts/taxation%20laws%20\(amendment\)%20act,%202019/102520000000110029.htm) was introduced by the Government of India to incentivize manufacturing and production in India under the ‘[Make in India](http://www.makeinindia.com/)’ initiative. A tax rate of only 15% is levied on companies that are registered in India between on or after October 1, 2019, and commence their manufacturing operations after the same date and on or before March 31, 2024. Meanwhile, the income for these companies, which is generated from non-manufacturing activities and short-term capital gains from non-depreciable assets, attracts taxes at 22%, Companies cannot claim any deductions or exemptions under Section 115BAB. ### Surcharge Apart from the regular Indian corporate tax rates, companies in India also attract surcharges on their payable taxes. The different slabs for surcharges are: 1. **Companies with total incomes over one crore: 7%** 2. **Companies with total incomes over ten crore: 12%** 3. **Companies opting for Section 115BAA and Section 115BAB: 10%** A health and education cess of 4% is also levied on the taxes and surcharges of companies in India. ### **Corporate tax rates in India for foreign companies** Foreign companies in India pay corporate taxes at 40% of their average taxable incomes. Surcharges are applied to foreign companies having incomes between INR 1 crore and INR 10 crore at 2%. If a foreign company’s income crosses INR 10 crore, a surcharge of 5% is levied on its corporate taxes. ### **Corporate tax rates in India for partnerships** A local authority, partnership firm, or limited liability partnership (LLP) firm has to pay corporate taxes at 30% of its average taxable income. ### **Startup tax exemptions in India** The Indian government also offers various incentives and exemptions to startups in India. These include: **​ ** * A 3-year tax holiday: A startup in India that is incorporated or registered between April 1, 2016, and March 31, 2025, can get an [exemption from taxes](https://www.thehindubusinessline.com/economy/budget/budget-2024-opens-doors-for-prolonged-tax-haven-for-startups-gift-city-units/article67800905.ece) on their profits for three years in a block of 10 years. Its turnover must be limited to below INR 100 crores in a particular financial year. * Long-term capital gains exemption: If startups invest their long-term capital gains in a government-specified fund for at least three years, they can claim an exemption on their gains through section [54EE.](https://incometaxindia.gov.in/Acts/Finance%20Acts/2016/102120000000058864.htm) * Investments above fair market value (FMV): If angel investors, individuals, funds, or incubators invest in startups fulfilling specific criteria above their fair market values (FMV), their investments will be [tax exempted](https://www.startupindia.gov.in/content/sih/en/startupgov/startup_recognition_page.html). ** * Section 54GB: [This section](https://incometaxindia.gov.in/Acts/Finance%20Acts/2012/102120000000010384.htm?tag=bizzopedia&ld=ASXXBizzoDirect) allows any individual or HUF (Hindu Undivided Family) who sells their property to reinvest the proceeds to buy shares in eligible startups. In turn, they cannot sell the shares for five years, while the startups would have to use the investments to buy assets. * Carrying forward losses: Startups in India can [carry forward their losses](https://www.investindia.gov.in/team-india-blogs/union-budget-2023-empowers-startups-extended-set-and-carry-forward-period) in their first ten years of incorporation. It allows startups to reduce their taxable incomes to a significant extent. Effective planning of taxes in India ------------------------------------ Our article must have given you a gist of Indian corporate tax laws and how to navigate them for your business. Effectively planning your taxes brings many benefits, including minimising your tax liability, improving your company’s cash flow, and making strategic decisions for your company’s future. Moreover, being tax-compliant will help you attract investments, increase efficiency, and broadly help you grow your company! **** Looking for the comfort of global banking but with low fees, zero added charges and smooth international payments? SALT will help your business handle its international finances and grow worldwide with all such benefits you’re looking for! [Visit our website](https://www.salt.pe/) today! ** ** Further, for more information on the world of finance and relevant compliance, visit [our blog](https://www.salt.pe/blog)! FAQS ---- 1\. Why do you need to know about Indian corporate tax laws? **** By gaining knowledge of Indian corporate tax laws, you will be able to grow your company with full tax compliance without even unintentional errors. It will also help you grow aware of tax incentives and benefits offered by the government. 2\. How can I plan my company’s taxes? The first step to planning your company’s taxes is to get an overview of Indian corporate tax laws. You could consult tax experts and effectively plan your company’s corporate taxes to avoid even minute errors. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Fundraising vs Financing: Which Way to Go for Your Startup? Author: Shaun Paul Published: 2024-02-27 Category: startup finance Tags: startups, start up funding stages, seed funding for your startup URL: https://salt.pe/blog/null In this article, we will explore the realms of fundraising and financing, two distinct approaches that startups can pursue to acquire the capital they need. The challenging journey of starting and growing a business, one crucial aspect is securing the necessary funds to fuel your entrepreneurial dreams. Naturally, a debate of fundraising vs financing comes up once you start thinking of funds.   Fundraising entails reaching out to potential investors and other sources to seek financial support, while financing involves obtaining or securing capital through various means. This article will provide a comprehensive overview of fundraising and financing for startups, helping you make an informed decision about which path to pursue.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fundraising-vs-financing-1709625419393-compressed.jpg) What is Startup Fundraising? To understand the benefits of fundraising vs financing, let’s start at the basics. Fundraising for a startup is the process of seeking financial support from investors or other sources to fuel the growth and development of a business. It can be daunting, requiring you to identify the right investors, effectively communicate your unique value proposition, determine the amount of funding needed, negotiate terms, and manage expectations.  Startup founders often face decision fatigue and feelings of pressure and isolation during this process. Raising funds is crucial for startups to cover expenses such as marketing, product development, and hiring a skilled team. With sufficient funding, startups may be able to achieve their goals and reach their full potential. ### How Does It Work? In India, startups can raise funds by exploring various fundraising sources, such as government programs like the [Startup India Scheme](https://www.startupindia.gov.in/content/sih/en/startup-scheme.html). You can utilise other platforms, participate in incubators and accelerators, and network at pitching events.  Once investor interest is garnered, startups go through due diligence and negotiation processes, resulting in funding rounds of increasing amounts. Thorough research, effective pitching, and strategic networking are crucial in securing funding for startups in India. ### What Are Its Drawbacks? Fundraising for a startup comes with its own set of challenges and drawbacks that organisations need to navigate.  Some of them are: 1. **High cost**: Fundraising can be expensive, requiring resources that could otherwise be allocated to business functions. 2. **Compliance and trust**: Organisations must navigate complex regulations and maintain transparency to ensure compliance and build trust with donors. 3. **Donor relationships**: Building and sustaining meaningful relationships with donors requires continuous effort to engage, communicate impact, and show appreciation. 4. **Digital advancements**: Keeping pace with technological developments is crucial for effective outreach and leveraging online platforms for fundraising. 5. **External factors**: Organisations are subject to external influences such as economic conditions and donor behaviour, which can impact fundraising outcomes. What is Startup Financing? -------------------------- Now, on to the second participant in our fundraising vs financing debate: what does financing consist of? **​ ** Startup financing refers to the capital utilised to support a business venture, serving various purposes such as company launch, team expansion, product development, and business growth. There are two primary categories of small business financing: dilutive and non-dilutive. Dilutive startup financing involves exchanging equity in the company for investment, while non-dilutive financing allows founders to maintain full ownership.  **​ ** For instance, obtaining shares in exchange for investment represents dilutive financing, whereas a loan constitutes non-dilutive financing since it doesn't involve relinquishing ownership. When selecting a financing option, it's essential to assess the impact on ownership and the repayment terms, as some options require immediate repayment while others don't need to be repaid, like certain business grants. ### **How to Get Financing For a Startup Business?** **Here are some ways to secure financing for a startup business in India:** 1. **Angel Investors**: Connect with angel investor networks or individual angel investors interested in supporting startups. Prepare a compelling pitch deck and reach out to potential investors. 2. **Venture Capital**: Approach venture capital firms specialising in early-stage investments. Research VC firms that focus on your industry and have a history of financing startups.  3. **Crowdfunding**: Utilise crowdfunding platforms to raise funds from a large pool of individuals who believe in your business idea. Create an appealing campaign and offer attractive incentives to backers. 4. **Bank Loans**: Apply for business loans from banks and financial institutions. Explore options like [MUDRA loans](https://www.mudra.org.in/), collateral-free loans, or specific startup loan programs offered by banks in India.  5. Non-Banking Financial Companies (NBFCs): Consider approaching [NBFCs](https://www.rbi.org.in/scripts/bs_nbfclist.aspx/) specialising in providing loans and financial services to startups and small businesses. These institutions often have flexible lending criteria. ### **What are Its Disadvantages?** **The disadvantages of startup financing can be summarised so:** **1. Difficulty in approval: Obtaining financing for a startup can be challenging due to strict eligibility criteria and the need for established business history. 2. High-interest rates: Startup loans often come with higher interest rates than traditional business loans, increasing the cost of borrowing. 3. Limited funds for investment: Startup financing options may provide less capital, limiting the resources available for business growth and development. 4. Potential damage to personal credit: Defaulting on startup loan payments can negatively impact personal credit scores, affecting future borrowing opportunities. 5. Cash flow restrictions: Repaying startup loans can strain cash flow, limiting the ability to cover day-to-day expenses and invest in necessary operations. Fundraising vs Financing: Difference Between Fundraising and Financing  ----------------------------------------------------------------------- Here’s how the startup fundraising vs financing debate ultimately shapes up: Startup Fundraising  Startup Financing  Source Fundraising for a startup typically comes from government grants, philanthropists, or charitable organisations. Startup financing involves obtaining a loan from banks, venture capitalists, or other financial institutions. Purpose Funding is provided for welfare purposes or specific projects related to research, business launch, and startup investment.  Financing is used for personal purposes or to support the operational needs of the startup. Repayment Funding does not need to be paid back. Financing requires repayment of the loan amount and interest within a specified timeframe. Interest Fundraising does not involve any interest charges, as it is usually provided by government or charitable organisations. In contrast, financing involves paying a certain percentage of interest on the borrowed amount. Receivers Fundraising can be received by private companies, startups, or the general public for specific purposes. Financing is available to anyone capable of repaying the loan with interest, regardless of their affiliation or purpose. Fundraising vs Financing: Understand the Nuances ------------------------------------------------ Understanding the nuances between fundraising and financing is crucial for startups seeking capital. Fundraising involves seeking financial support from investors or other sources, while financing refers to obtaining loans or other forms of capital.** ** Both approaches have advantages and drawbacks, and entrepreneurs must carefully evaluate their options to determine the best fit for their startup's needs and goals. Therefore, when you consider fundraising vs financing, it’s up to you to decide which one suits you best according to your business's goals and assets.  Would you like to participate in global business from the comfort of your home? Salt Fintech can be just the platform for you! [Visit us](https://salt.pe/) to learn more today! FAQs ---- ### How to determine whether fundraising or financing is the right choice for a startup? ** Choosing between fundraising and financing depends on various factors, such as your startup's stage, funding requirements, ownership considerations, and repayment terms. Fundraising may be more suitable if you want to attract investors and build relationships, while financing can be a viable option if you prefer to retain ownership and have specific repayment plans. ### What are some common methods of fundraising and financing for startups in India?  Common fundraising methods in India include government initiatives like the Startup India Scheme, participation in incubators and accelerators, and networking at pitching events. Financing options often include bank loans, grants, and other financial programs targeted at supporting startups. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Foreign Transaction Fee vs Currency Conversion Fee: Explained Author: Shaun Paul Published: 2024-02-26 Category: International Payments Meta Title: Transaction Fee vs Currency Conversion Fee Meta Description: Save on HIDDEN FEES with Salt Fintech, and find the best option for your business. Tags: foreign transaction fees, international transactions, cross-border transfers, currency conversion fee, foreign currency conversion URL: https://salt.pe/blog/foreigntransactionvscurrencyconversion **Introduction** Cross-border transfers are a must if you’re operating a global business. However, hidden fees and charges can quickly turn a seemingly good deal into a financial headache. Two fees that often perplex you would be foreign transaction fees and foreign currency conversion charges. In this blog post, we'll dive into the differences between these two fees, how they impact your finances, and provide some tips to minimise their impact. So, let's unravel the mystery and make your international spending more cost-effective! Understanding Foreign Transaction Fees -------------------------------------- You may encounter a foreign transaction fee whenever you are making a cross-border transfer for your business outside of your country. This fee, usually charged by your bank or credit card issuer, is applied as a percentage of the transaction amount. Foreign transaction fees can range around 3% or more of the total purchase, but the exact amount varies depending on your bank and the type of card you use. Foreign transaction fees are designed to cover the costs of processing international transactions. Banks argue that these fees compensate them for the additional risk and expenses involved in cross-border transfers, including currency exchange, fraud prevention, and compliance with international regulations. Understanding Currency Conversion Fees ----------------------------------------- ![10 APIs For Currency Exchange Rates | Nordic APIs |](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1708947508176-compressed.jpeg) On the other hand, foreign currency conversion changes are applicable when you make a cross-border transfer in a foreign currency. When you pay in a currency different from the one your card is denominated in, the transaction amount is converted into your card's currency at the prevailing exchange rate. This conversion process incurs a fee, which is commonly referred to as the currency conversion fee or the foreign exchange fee. Your bank, credit card issuer or merchant can apply foreign currency conversion charges. These fees are typically shown as a part of the transaction amount or a flat fee. The percentage-based fees usually range from 1% to 3%, while flat fees can vary depending on the transaction value and the specific terms of your card. Foreign Transaction Fee vs Currency Conversion Fee: Impact on Your Finances --------------------------------------------------------------------------- Now that we understand the two fees more clearly, let's discuss how they can impact your finances. ### 1\. Occurrence  Foreign transaction fees occur when you use your card outside your home country, regardless of whether the transaction is in the local currency or your card's currency. On the other hand, foreign currency conversion charges only apply when you make a purchase in a currency different from the one your card is denominated in. ### 2\. Fee Structure  Foreign transaction fees are charged as a percentage of the transaction amount and can vary between different banks and cards. Currency conversion fees can be expressed as a percentage or a flat fee. It's important to check the terms and conditions of your card to understand the fee structure. ### 3\. Cumulative Impact  If you're not careful, foreign transaction fees and foreign currency conversion charges can add up quickly. For example, if you purchase in a foreign currency, you'll be subject to both fees—first, the currency conversion fee and then the foreign transaction fee. This means that a seemingly small percentage can turn into a substantial amount over time. Let’s take a quick look at how foreign transaction fee vs currency conversion fee shapes up: Aspect Foreign Transaction Fee  Currency Conversion Fee  Occurrence Applied when using a card outside the home country Applied when making purchases in a foreign currency Applicability       This applies regardless of the currency used This applies only when a different currency is used  Fee Structure  Percentage of the transaction amount Percentage or [flat fee](https://dictionary.cambridge.org/dictionary/english/flat-fee)​ Determination    Set by the card issuer or bank Set by the card issuer, bank, or merchant Purpose Covers costs associated with international transactions Covers costs related to converting one currency to another Cumulative Impact    Can be added on top of foreign currency conversion charges May be subject to foreign transaction fees after currency conversion Foreign Transaction Fee vs Currency Conversion Fee: Tips to Minimise Charges and Save Money ------------------------------------------------------------------------------------------- Now that we know the differences between foreign transaction fees and currency conversion fees, let's explore some tips to minimise these fees and save money while making international transactions. ### 1\. Choose the Right International Credit Card  Before making international purchases, research and compare different credit cards to find the ones with low or no foreign transaction fees. Some cards are specifically designed for cross-border transfers and offer perks such as waived fees and favourable exchange rates. ### 2\. Use Local Currency  When given the option, choose to pay in the local currency rather than your card's currency. This way, you can avoid extreme foreign currency conversion charges.  ### 3\. Consider Alternative Payment Methods  Explore alternative payment methods like prepaid travel cards, digital wallets, or online money transfer services. These options often offer competitive exchange rates and lower fees than traditional credit cards. For example, Salt Fintech is an Indian neobank that allows you to make international transactions for your business while saving up on foreign transaction fees and foreign currency conversion charges.  ### 4\. Monitor Exchange Rates  Keep an eye on exchange rates and consider making larger purchases when the rates are more favourable. Timing your international transactions strategically can help you save on foreign currency conversion charges. Navigating the world of foreign transaction fees and currency conversion fees can be challenging, but understanding the differences between these costs is the first step toward making informed financial decisions. By choosing the right card, paying attention to fee structures, and using local currency whenever possible, you can minimise these fees and keep your international spending in check. Do keep in mind that even if you make use of payment gateways like Payoneer and PayPal to make international transactions for your business, they would still be deducting significant foreign currency conversion charges and foreign transaction fees.  On the other hand, Salt Fintech can give you the convenience of global banking with local accounts while allowing you to save up on both aforementioned charges. Visit [our website](https://salt.pe/) today to find out more! Frequently Asked Questions (FAQs)  ---------------------------------- ### 1\. How can [Salt](http://www.salt.pe) assist businesses in managing international transactions?  Salt offers services such as inward remittances and compliance handling at competitive rates. With Salt, businesses can process inward remittances within 24 hours and access compliance handling expertise, ensuring smooth international operations. ### 2\. Are currency conversion fees the same for all payment platforms?  No, foreign currency conversion charges can vary depending on the payment platform and the specific arrangements. Businesses need to compare and evaluate the fees offered by different platforms before deciding. ### 3\. How can businesses minimise the costs associated with international transactions?  Businesses can minimise costs by partnering with service providers like Salt Fintech that offer competitive rates for inward remittances and compliance handling. Comparing different payment platforms and their fee structures can help businesses identify cost-effective solutions for cross-border transfers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## SALT Fintech: the Cheaper Alternative to PayPal & More Author: Shaun Paul Published: 2024-02-23 Category: International Payments Tags: Salt fintech , paypal alternative, startup Salt , payment methods, best ways to send money URL: https://salt.pe/blog/salt-fintech-the-cheaper-alternative-to-paypal-and-more-clvdifoyk002zcgk8luo08p48 Businesses rely heavily on international money transfer methods to expand their reach and tap into overseas markets. Traditional methods like international wire transfers and bank drafts have been the go-to for [cross-border payments](https://salt.pe/blog/how-cross-border-payments-are-being-redefined-for-businesses) for so long, but they come with hefty fees and lengthy processing times, making them less than ideal for many companies seeking efficiency and cost-effectiveness. PayPal may come to mind for a modern-day business, but what if you had a cheaper alternative to PayPal? Enter- SALT, a fintech company that specialises in cost-effective solutions for international transactions. We focus on serving B2B clients, including LLPs, private limited companies, partnerships, SMEs, and startups. SALT provides competitive rates and efficient compliance solutions tailored to the specific needs of Indian businesses.  In this blog, we will understand the need for a cheaper alternative to PayPal and look at [SALT's offerings](https://www.salt.pe/table). Without further ado, let’s begin!  First, let’s understand why we need PayPal alternatives anyways?  Why sееk PayPal alternatives? ----------------------------- ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714727559644-compressed.jpeg) [Source](https://stock.adobe.com/search/images?k=paypal) | Cheaper alternative to Paypal While PayPal has long been a popular choice for online transactions, its suitability for international business transactions is questioned due to several limitations and drawbacks. Here are some:  * **PayPal's fees:** They often include a percentage of the transaction amount and a fixed currency conversion fee. This can make it costly for businesses dealing internationally. The fee per transaction comes to around 4.4% of the amount + $0.3 + additional currency conversion charges.  * **PayPal's processing times:** These can range between 3-5 days, leading to delays in receiving funds and potentially disrupting business operations and cash flow.  * **Exchange rates:** These are set by PayPal, and can potentially be quite demanding, especially for businesses engaging in cross-border payments frequently.  * **Compliance:** PayPal isn’t much help here, required certifications have to be taken care of by a business itself.  * **Low on flexibility:** PayPal does not bring customized support for businesses.   Given these limitations and drawbacks, business operations are increasingly seeking cheaper alternatives to PayPal, which offer lower goods and services fees, faster processing times, and greater flexibility and support for their specific needs. SALT Fintech is one such alternative to PayPal for B2B clients looking to streamline their international transactions and reduce costs. **Now, let's understand how SALT Fintech can help businesses in international money transfers:**  **SALT's offеrings for Indian businеssеs participating in Cross-Border money transfers**  ----------------------------------------------------------------------------------------- ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714727561571-compressed.png) ** **[Source](https://www.salt.pe/) | SALT Fintech as a PayPal alternative**  SALT Fintech has two main services that cater to the needs of Indian businesses going beyond borders: [inward remittances](https://www.salt.pe/remittance) and compliance handling. These are intended to assist companies in streamlining their international transactions and ensuring compliance with regulatory requirements, all while minimising costs and maximising efficiency. **Let’s discuss SALT’s services as a cheaper alternative to PayPal:**  ### **Inward remittances** * SALT Fintech offers a streamlined and cost-effective solution for receiving payments from international clients or partners.  * SALT charges a fixed fee of 1.75% of the transfer amount for inward remittances. This fee covers the cost of obtaining the Foreign Inward Remittance Certificate (FIRC), which is provided to you within 24 hours of the international transaction.  * No sign-up fees or subscription charges are required to use our service. This enables businesses to access their funds quickly and efficiently, helping to improve cash flow and reduce administrative overhead. ### **Compliance handling** * SALT Fintech offers a comprehensive compliance management solution for businesses dealing with foreign investments, including pre-funding and post-funding compliance.  * For instance, SALT aids in [FIRC acquisition](https://salt.pe/blog/foreign-inward-remittance-advice-fira) if inward remittance is a regular part of the business transactions.  ** Now, let's compare [SALT's services with PayPal](https://salt.pe/blog/paypal-salt-comparison).  ​ ****SALT Fintech: an altеrnativе to PayPal -------------------------------------- When comparing Paypal's services to cheaper alternatives like SALT, several factors come into play like cost, speed, and compliance. Let's explore how SALT's offerings stack up against PayPal and other payment solutions in these areas: ### Cost * SALT and PayPal diverge notably in their fee structures.  * PayPal imposes transaction fees based on variables like country, currency, and amount, along with a minimum 3% forex markup. SALT has a fixed fee.  * SALT refrains from levying any markup on currency conversion, usually adhering to the Google rate for converting to INR. The Google rate refers to the exchange rate provided by Google, typically based on real-time market data.  * Notably, PayPal's transaction fees can reach 4.4% of the transferred amount plus $0.3, whereas SALT adopts a flat rate of 1.75%. ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1714727562771-compressed.png) [Source](https://www.salt.pe/blog/paypal-salt-comparison): SALT and PayPal comparison ### Other criteria  * At SALT, you can know that your transactions won't encounter blocked funds or chargebacks. This assurance provides a sense of security and reliability for businesses utilising SALT's services.  * In contrast, PayPal doesn't typically offer the same guarantee, leaving the potential for disruptions or complications in transaction processing. * Unlike PayPal, SALT provides designated relationship managers for global banking needs. Overall, SALT's services have these benefits for Indian businesses engaging in cross-border payments: * A cheaper alternative to PayPal for international money transfers * Offer lower fees * Faster processing times * Enable streamlined compliance handling By choosing SALT Fintech, businesses can streamline their international transactions, reduce costs, and focus on growing their operations in the global marketplace. SALT at your rescue  -------------------- [SALT Fintech](https://www.salt.pe/) offers a compelling PayPal alternative for international businesses seeking cost-effective solutions for cross-border transactions. By providing competitive rates, faster processing times, and streamlined compliance handling, SALT Fintech enables businesses to minimise costs, improve cash flow, and focus on growing their operations in the global marketplace. If you have any further questions or want to learn more about [SALT Fintech](https://salt.pe/blog/salt-fintech) as a cheaper alternative to PayPal, please don't hesitate to contact us. We're here to help you navigate the complexities of international business transactions and find the right payment solutions for your needs! Frequently asked questions -------------------------- ### 1\. Why did PayPal quit India? On February 4, 2021, PayPal announced it would end domestic payments in India by April 1, 2021 and would mainly focus on international e-commerce due to regulatory challenges.  ### 2\. Did Elon Musk create PayPal? Yes, Elon Musk co-founded PayPal in 1999 when he was approximately 28 years old. Musk's online banking business, X.com, merged with Confinity, a company specialising in online payments, to form PayPal in March 2000. Musk played a pivotal role as the CEO in guiding the newly formed organisation.  ### 3\. Is GPAY the same as PayPal? PayPal and Google Pay are digital wallets that let you hold, send, and receive payments and shop in person and online. Nevertheless, Google Pay and PayPal accounts aren't inherently connected; they are separate products. ### 4\. Is PayPal banned in India in 2023? PayPal India has discontinued domestic payment transactions and is now only available to businesses for cross-border transactions. Individual PayPal accounts and domestic sales have been discontinued.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## NIUM Alternatives: Reliable and Secure alternatives to NIUM Author: Ankit Parasher Published: 2024-01-29 Category: International Business Meta Title: NIUM account not working? Meta Description: Go through NIUM's alternatives and discover the perfect fit for your global financial needs. Tags: international business banking, International payments, International Payment Method, NIUM alternatives URL: https://salt.pe/blog/null Whether you’re a multinational corporation conducting large-scale transactions, a small business owner, or an individual sending money to family overseas, understanding the intricacies of international payment platforms is crucial for navigating the complexities of the global financial landscape.  Singapore-based NIUM has been a popular solution for these market needs, connecting companies worldwide to a sophisticated real-time payment system. It acts as a service for businesses to instantly collect, convert, and send payments to accounts, cards, and wallets globally, fostering rapid business development. NIUM’s platform supports global payouts to over 190 markets with real-time processing. NIUM and its Services --------------------- NIUM offers global accounts that streamline the processes of funding, collections, conversions, and disbursements in various currencies, promoting seamless international growth. The platform also facilitates quick setup of both physical and virtual card strategies through its global card issuance services. NIUM caters to specific industry needs with services tailored for global payroll—offering competitive FX rates and immediate payment options, spend management—simplifying corporate purchasing and supplier payments, and travel payments—enhancing travel payment methods for the travel sector to boost efficiency and profitability. ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1715164155530-compressed.png) [SOURCE](https://www.freepik.com/free-vector/payment-background-design_1033558.htm#fromView=search&page=1&position=8&uuid=b6c62344-2b5c-48cb-8ee2-038af6cd06a3) | Digital International Payment However, despite NIUM's targeted services in these specialised areas, its range of offerings may be more limited compared to other platforms. This limitation could potentially restrict the diversity of financial solutions available to users, especially those seeking a broader array of services beyond NIUM's specific industry-focused offerings.  Users looking for a more comprehensive suite of financial tools and services may find NIUM's platform lacking in versatility and may need to explore alternative platforms to meet their varied financial needs. NIUM is known to charge an exchange rate that is consistently higher by about one rupee compared to the prevailing market rate. This practice results in users losing money on each transaction due to the inflated exchange rate.  In addition, high transaction fees, alleged compliance issues, a lack of customer services, and a less user-friendly or intuitive user experience can make navigating transactions and services more challenging.  While NIUM offers its own set of pros and cons, there are alternative platforms that provide a wider range of services and more cost-effective international money transfer solutions. Some notable alternatives include PayPal, SALT Fintech, and Payoneer, each offering unique features such as competitive exchange rates, multi-currency accounts, and streamlined cross-border payments.  These alternatives cater to diverse needs, from individuals seeking low-cost transfers to businesses requiring efficient global payment solutions. By exploring these alternatives, you can find platforms that better align with their specific requirements and offer enhanced benefits beyond what NIUM provides.  PayPal ------ PayPal, a prominent American fintech company founded in 1998, has emerged as an international leader in online payments and international money transfers. Offering a comprehensive range of services, PayPal facilitates seamless transactions for businesses and individuals worldwide.  From personal payments and online shopping to invoicing and international money transfers, PayPal's versatile platform caters to diverse financial needs with its user-friendly interface and widespread acceptance. Key features of PayPal include its emphasis on secure online payments, mobile-friendly solutions, peer-to-peer (P2P) capabilities, and global acceptance. With a strong focus on convenience and reliability, PayPal has become a go-to choice for individuals and businesses seeking efficient cross-border payment solutions.  The company now processes an average of [41 million transactions](https://www.zippia.com/advice/paypal-statistics/) per day, representing a substantial 20.58% increase from the estimated 34 million transactions processed daily in 2019.  ### Why not PayPal? * **High fees associated with international transactions** * **Not ideal for high-risk or high-volume businesses**  * **A complex fee structure that can be difficult to understand** * **Customers report account freezes and terminations, resulting in loss of funds** * **Limited to only 25 supported currencies** **Payoneer** ------------ Payoneer is a global payments platform catering to businesses, professionals, and freelancers worldwide. With a presence in over 200 countries, Payoneer simplifies cross-border transactions by offering services like receiving payments through local bank accounts in various currencies, sending payments to other users, and integrating with popular marketplaces.  Users can withdraw funds to their local bank accounts. Fees range from 2% of the transaction amount plus a currency conversion fee to [an annual fee of $29.95](https://www.salt.pe/blog/salt-payoneer-comparison#currency-conversion-feeandnbsp) for inactive accounts. Payoneer empowers users to expand their global reach and efficiently manage international transactions by providing seamless payment solutions and marketplace integrations.  With competitive pricing and a user-friendly interface, Payoneer has become a trusted partner for those navigating the complexities of global commerce. It enables businesses and individuals to focus on growth and success in the international marketplace. ### Why not Payoneer? * May pose transaction delays when receiving large amounts * Limited functionality, cannot accept in-person payments * Slightly higher service charge for incoming payments compared to PayPal * Must pay a withdrawal fee to move funds from Payoneer account to bank account * Customer service can be slow and unresponsive **Salt** -------- ** ![undefined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1715164157767-compressed.png) ** **[SOURCE](https://www.salt.pe/) | International Money Transfer** SALT, an innovative Indian fintech startup, has set out to address the key challenges businesses face when navigating the complexities of international money transfers.  Founded in 2020 by Udita Pal and Ankit Parashar, who bring firsthand experience in international business banking, SALT offers a one-stop solution to help companies overcome the hurdles of lengthy transfer times and burdensome compliance requirements. SALT's comprehensive suite of services caters to the needs of small businesses and startups engaged in cross-border transactions. The platform automates the filing of crucial regulatory documents, such as RBI, MCA, and FEMA forms, while managing pre and post-funding compliance.  **Why SALT Fintech?** --------------------- * Transparent Currency Conversion: The platform adheres to Google rates for converting currency to INR, ensuring transparency and fairness. * Fees:  One of the key distinctions between SALT and other international payment alternatives lies in their fee structures. While other providers charge a percentage-based fee for each transaction, along with a forex markup, SALT takes a different approach. SALT does not apply any markup on currency conversions and instead follows the Google rate for converting to Indian Rupees (INR). Typically, other providers' transaction fees amount to around [4.4% of the transferred amount](https://www.salt.pe/blog/paypal-salt-comparison#:~:text=Currency%20Conversion%3A%20SALT%20deals%20in,higher%20fee%20for%20currency%20conversion), plus an additional $0.30, whereas SALT maintains a flat rate of 1.75%, making it a more cost-effective solution for businesses. * Compliance Management: SALT stands out by offering a comprehensive compliance management solution, including pre-funding and post-funding compliance and assistance with FIRC (Foreign Inward Remittance Certificate) acquisition. In contrast, other international payment alternatives do not provide any compliance management services. * Currency Conversion: SALT deals in six major currencies (USD, EUR, GBP, AUD, HKD, SGD) and provides currency conversion at a competitive rate of 1.75% of the transaction. Other international payment alternatives, while supporting a wider range of currencies, charge higher fees for currency conversion.  * Dedicated Relationship Manager: Worried about your payment not being received on time? You can reach out to your dedicated relationship manager to solve your exact issue.  Click here to get started with [SALT](https://www.salt.pe/nium)​ **Final thoughts**  ------------------- SALT Fintech is specifically tailored to assist Indian companies that engage with foreign clients. It offers a specialised suite of services designed to [streamline international transactions](https://www.salt.pe/remittance) and compliance processes.  Focusing on addressing the challenges and needs faced by Indian businesses operating in a global market, SALT provides a dedicated platform that simplifies cross-border payments, regulatory filings, and currency conversions.  By catering to the requirements of Indian companies with foreign clientele, SALT aims to enhance operational efficiency, reduce complexities associated with international transactions, and facilitate seamless financial interactions on a global scale. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Cross-Border Payments and Indian Fintech in 2023: Wrapped Author: Shaun Paul Published: 2024-01-20 Category: Fintech in India Tags: fintech in 2023, fintech trends, foreign client URL: https://salt.pe/blog/null The global market size for fintech (financial technology) is expected to continue growing, becoming a [$1.5 trillion industry by 2030](https://www.bcg.com/press/3may2023-fintech-1-5-trillion-industry-by-2030). 2023 was a significant year attesting to this extensive growth; fintech in 2023 was not limited to just digital payments, it also explored innovative areas like voice-enabled payments, virtual cards, and enhanced cybersecurity. These advancements continue to open up new avenues for fintech applications beyond traditional financial services​.  In this article, let us look at the top trends that dominated cross-border payments and fintech in 2023.  G20’s impact on cross-border payments  -------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1705920025468-compressed.jpeg) G20 agrees to promote faster, transparent and inclusive cross-border payments [_Source_](https://www.telegraphindia.com/business/g20-agrees-to-promote-faster-transparent-and-inclusive-cross-border-payments/cid/1965012)  After the G20 Leaders endorsed specific requirements to enhance [cross-border payments in 2020](https://www.bis.org/cpmi/cross_border.htm), the FSB (Financial Stability Board) has come up with a [progress report in 2023](https://www.fsb.org/wp-content/uploads/P091023-2.pdf) to reveal the industry's initial performance against the benchmarks set, providing unprecedented transparency. The G20's initiatives on enhancing cross-border payments have focused on improving speed, transparency, cost, and accessibility. The goal is to have 75% of cross-border payments credited to their beneficiaries within an hour by 2027. This initiative can benefit economies by supporting economic growth, international trade, global development, and financial inclusion. Reducing the global average cost of sending remittances is also a key target, aiming to bring it down to no more than 3% by 2030. On that note, at [SALT Fintech](https://www.salt.pe/) we simplify international transactions and compliance for businesses in India. We help you manage foreign exchange risks, reduce costs associated with international payments, and ensure compliance with international financial regulations. Rise in digital money transfers  -------------------------------- One of the fintech trends In 2023 was the preference for digital money transfer over cash. This was influenced by several factors, including the COVID-19 pandemic that acted as a major catalyst, accelerating the adoption of digital payments.  Even with a return to in-person commerce, the trend towards digital payments not only sustained but, in some cases, grew even further. This shift was driven by consumers' increasing openness to new technologies, with convenience and improved user design playing a crucial role in advancing adoption. This trend was highlighted in McKinsey’s 2023 Digital Payments Consumer Survey, which revealed that [9 out of 10 consumers had used some form of digital payment over the year](https://www.mckinsey.com/industries/financial-services/our-insights/banking-matters/consumer-digital-payments-already-mainstream-increasingly-embedded-still-evolving). The survey also showed a trend toward consolidation of digital wallets and a shift in trust towards large tech firms from banks in the realm of digital payments.  Neo-banking (for example, [SALT Fintech](https://salt.pe/) is a neo-bank) emerged as a significant trend, offering online banking services with no physical branches, leading to savings on infrastructure costs and the ability to provide customers with lower fees and higher interest rates. This further fueled the preference for digital transactions over traditional banking methods​​. The US and cross-border payments  --------------------------------- One of the fintech trends in 2023 was the significant push towards digital payment innovations in the US cross-border payments landscape. This was influenced by global e-commerce growth and business expansion needs. Updates in regulatory frameworks, [such as PSD2/3](https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_3544), influenced the US cross-border payments landscape, pushing traditional banks to compete with digital disruptors.  Increasing B2B payments  ------------------------ The [B2B payments landscape](https://www.fxcintel.com/research/analysis/b2b-payments-trends-2023#:~:text=While%20currently%20above%2050%25%20YoY,remained%20around%20or%20below%2010%25.) is being transformed by the adoption of innovative technologies, including the rise of [cross-border payment solutions](https://salt.pe/blog/how-cross-border-payments-are-being-redefined-for-businesses) to facilitate international e-commerce, and the increasing integration of embedded finance within B2B platforms.  There's also a significant shift towards virtual cards, offering enhanced transaction security and control. The focus on real-time payments is enhancing cash flow and business responsiveness. These trends in fintech development are collectively driving us to a more efficient, secure, and user-friendly B2B payment ecosystem​.  The Latin American opportunities  --------------------------------- [Latin America is experiencing a fintech boom](https://www.finnovista.com/en/the-unstoppable-rise-of-the-fintech-ecosystem-in-latin-america-and-the-caribbean-what-to-expect-in-2024/#:~:text=A%20booming%20ecosystem,compared%20to%20the%20previous%20year.), driven by high mobile penetration, a young population, and a significant unbanked segment. The fintech industry in Latin America has undergone significant growth and transformation in 2023, marked by a surge in venture capital investment and the emergence of innovative digital financial services. The following are the fintech trends in 2023 in Latin America:  * Neo-banks have seen remarkable growth. They have challenged traditional banking practices by offering more customer-friendly services, such as lower account minimums and fees, and easier account-opening processes. Brazil leads the region with the [highest number of neobanking community](https://seon.io/resources/neobanking-index/).  * The preference for alternative payment methods in Latin America has been driven by factors like limited access to credit cards, lack of financial inclusion, and high smartphone penetration. Digital payments and e-commerce have grown significantly, with instant payment solutions like [Brazil's Pix](https://www.elibrary.imf.org/view/journals/002/2023/289/article-A004-en.xml) playing key roles.  * Digital wallets have become increasingly popular, contributing to financial inclusion in the region. Digital wallets are extending financial services to previously unbanked or underbanked populations, enhancing customer engagement, and offering functionalities like peer-to-peer transfers and bill payments. * Cloud technology and Software-as-a-Service (SaaS) solutions, such as Wallet-as-a-Service (WaaS) and Banking-as-a-Service (BaaS), have emerged as key drivers in the fintech industry. These solutions enable businesses to offer banking and financial services without significant infrastructure investments. They also facilitate process automation  and faster, more secure payments. **Blockchain and cybersecurity** -------------------------------- Blockchain technology is increasingly being leveraged for enhancing cybersecurity in the fintech sector. Its decentralised and transparent nature offers robust security features, making systems less prone to hacking and data breaches. In fintech in 2023, blockchain technology continued to evolve and play a significant role. Key developments include:   * 2023 saw the introduction of various zero-knowledge (zk) roll ups like zkSync Era, Polygon’s zkEVM, Linea, and the =nil; Foundation. These rollups aimed to make blockchains operate more efficiently by executing more transactions off-chain, thereby reducing transaction costs and enhancing privacy and security. * Significant improvements in blockchain interoperability were witnessed, facilitating better communication and liquidity transfer between different blockchain networks. This was achieved through methods like token burning and minting on different chains, and bridging tokens between source and destination chains. * There was a growing trend in using blockchain for tokenizing real-world assets like cash, gold, real estate, and treasury bonds. This process helps bring more liquidity on-chain and allows these assets to be used as collateral in decentralised finance (DeFi) protocols. * There was a focus on using blockchain-as-a-service (BaaS) platforms, which made it easier and more affordable for businesses to adopt blockchain technology. * Moreover, the public sector started to adopt blockchain technology more extensively, replacing traditional paper-based systems with distributed ledger technology (DLT). This transition offered advantages in terms of credibility, transparency, and security through cryptographic validation capabilities. **Open-banking**  ----------------- Open banking is revolutionising financial services by enabling data sharing through APIs (Application Programming Interface) between banks and third-party providers. This fosters innovation, enhances customer experience through personalised services, and promotes competition in the financial sector. [Open banking in the fintech sector in 2023](https://www.finextra.com/the-long-read/637/open-banking-2023-a-global-review) is characterised by a few key trends and developments. Let’s look at them:  * Europe is leading the industry in open banking, with the UK being a trailblazer, boasting 7 million open banking users. The UK, followed by Germany, Spain, the Netherlands, and France, is also advancing in open finance. * Asia is also witnessing growth in open banking, with China having the largest market. Japan, South Korea, and India are developing market-led approaches, while regulatory development is gaining momentum in other Asian countries. * In Africa, countries like Nigeria are leading the move into open banking, with an emphasis on addressing financial inclusion.  * Latin and South America are experiencing major developments in open banking, with Brazil leading the way.  * In North America, the US and Canada are witnessing new developments in open banking, driven by consumer demand. However, regulatory implementation is still a work in progress.  **Rise of BNPL (Buy now, pay later)**  -------------------------------------- One of the fintech trends in 2023 is the rapid growth of [BNPL](https://www.pymnts.com/buy-now-pay-later/2023/bnpls-surge-in-2023-impact-adoption-and-regulatory-crossroads/) (Buy Now, Pay Later). This offers consumers an alternative to traditional credit by allowing deferred or instalment-based payments for purchases. This trend is gaining popularity due to its convenience, ease of use, and flexibility. The rise of BNPL in fintech in 2023 marked a significant trend, impacting both the retail and e-commerce sectors. Here are some key aspects of this rise: * In April 2023, 16% of U.S. consumers (equivalent to 40.5 million people) used BNPL for at least one payment due to high inflation and rising costs​​. * Millennials and bridge millennials were the most frequent users, with nearly half using BNPL at least once a month.  * BNPL, offering short-term, interest-free loans, emerged as a potential competitor to credit cards. Younger consumers, who generally dislike high-interest debt, found BNPL more appealing​​. * Merchants implementing BNPL observed increased customer loyalty and higher conversion rates​​.  * The BNPL market is expected to continue growing, with fintech innovations potentially merging with BNPL systems.  * Governments worldwide, including the U.S. and the EU, started contemplating stricter regulations for the BNPL market to align it with traditional credit laws​​. **Embedded finance**  --------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1705920031232-compressed.png) [Source](https://www.qentelli.com/thought-leadership/insights/guide-embedded-finance) | One of the fintech trends in 2023: embedded finance ​ Embedded finance integrates financial services into non-financial platforms and apps. It democratises finance, enabling virtually any company to become a financial services provider​​. This trend allows companies to offer customised financial products directly within their ecosystems, enhancing customer experience and creating new revenue streams. Embedded finance in fintech in 2023 represents a significant shift in how financial services are delivered and experienced. Here are the key aspects of this trend: * Small and medium enterprises (SMEs) benefit from increased conversion rates and improved cash flow management. It also offers personalised financial solutions based on data-driven insights​​. * Traditional banks can engage a wider customer base and understand changes in customer behaviour through partnerships with embedded finance providers​​. * The adoption of embedded finance is expected to lead to groundbreaking solutions, including the growth of blockchain technology and development of competitor digital wallets​​.  **SALT Fintech joining the fintech growth** ------------------------------------------- As the fintech in 2023 trends dictate, the future of global fintech appears bright and poised for substantial growth. In the coming times, the fintech growth will be driven by the introduction of favourable government policies and incentives, as well as ongoing technological advancements​​. Overall, the overview of cross-border payments and fintech in 2023 underscores the potential of fintech to continue its rapid ascent and significantly reshape the financial services landscape, driven by innovation and an increasing shift towards digital financial solutions.  [SALT Fintech](https://salt.pe/) is excited to be a part of this steadily growing sector! We take care of international payments and relevant compliances for Indian businesses of all sizes so you can put your mind to innovating. The benefits of business banking with SALT are endless- give our website a visit to learn more today!  **Frequently Asked Questions (FAQs)**  -------------------------------------- 1. ### **What is the future of cross-border payments?** The future of cross-border payments is expected to be influenced by new technologies such as blockchain and artificial intelligence, leading to faster and more efficient transactions. This shift is moving away from traditional banking systems, with fintech solutions offering lower fees and quicker processing times. For example, by 2026, B2B [cross-border payments could exceed USD 42.7 trillion](https://www.juniperresearch.com/press/b2b-cross-border-payment-transaction-values#:~:text=Fintech%20and%20Payments-,B2B%20Cross%2Dborder%20Payment%20Transaction%20Values%20to%20Exceed%20%2442%20Trillion,from%20%2434%20trillion%20in%202021.), and the overall market might reach over [$250 trillion by 2027](https://www.forbes.com/sites/jp-morgan-payments/2023/09/19/the-cross-border-payments-market-is-ready-for-industry-innovators-heres-how-to-compete/).  2. **Is there a future in fintech?** The future of fintech is promising, characterised by rapid technological advancements and evolving market dynamics. Key trends for global fintech include the integration of AI, machine learning, and data analytics, with generative AI poised to revolutionise banking by enhancing customer experiences. The sector, currently a small fraction of global financial services, is projected to grow significantly, potentially reaching [$1.5 trillion in annual revenue by 2030](https://www.bcg.com/press/3may2023-fintech-1-5-trillion-industry-by-2030), comprising a substantial portion of banking valuations worldwide. So the answer would be yes, joining the fintech industry would be a good choice for you with future prospects in mind. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What does it mean to work as an independent consultant? Author: Shaun Paul Published: 2024-01-11 Category: Freelancers Tags: freelancing, how to independent consultant, business consultant, who is a consultant, how to start consultant URL: https://salt.pe/blog/how-to-become-independent-consultant Proud of your problem-solving skills in a specific industry, but unwilling to toil away at a workspace 9 to 5? Becoming an independent consultant may be your calling! Before you quit your steady job to embrace a life of hustle, however, you need to know all the details of becoming an independent consultant.  Who is a consultant, and how to become an independent consultant? We solve all these queries for you in our comprehensive post! Contents * [Who is an independent consultant?](#who-is-an-independent-consultant) * [How to become an independent consultant: roles and responsibilities of independent consultants](#how-to-become-an-independent-consultant-roles-and-responsibilities-of-independent-consultants) * [How to become an independent consultant: a step-by-step guide](#how-to-become-an-independent-consultant-a-step-by-step-guide) * [Smooth global business transactions with Salt Fintech](#smooth-global-business-transactions-with-salt-fintech) * [FAQs](#faqs) Who is an independent consultant? --------------------------------- The most important question of all: who is an independent consultant? A consultant is a professional who offers expert advice and specialised knowledge to individuals or organisations. The goal of independent consultants is to: ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/happy-business-woman-talking-interview-hr-manager-2023-11-27-05-32-57-utc-1-1704970410427-compressed.jpg) Independent Consultants * Help businesses address specific challenges across industries * Help clients make informed decisions * Root out existing issues and improve business processes to aid businesses in achieving their long-term goals.  Independent consultants usually bring a diverse range of skills and experience to the table. They may work in various fields, such as management, technology, finance, healthcare, or any other industry, tailoring their insights and recommendations to suit their clients' needs and objectives. ### How to become an independent consultant: roles and responsibilities of independent consultants Independent consultants, based on their industry and expertise, assume diverse responsibilities. These include:  * Providing expert advice to businesses regarding various affairs * Conducting extensive research on certain topics relevant to their fields of work * Analysing given data * Creating strategies aligned with client objectives Additionally, independent consultants handle specialised, niche-specific tasks, such as sustainability consultants conducting environmental impact assessments. The true worth of independent consultants lies in consistently delivering value through fresh perspectives, specialised knowledge, and impartial viewpoints, which are instrumental in problem-solving, operational efficiency, and fostering business growth. ### How to become an independent consultant: benefits of becoming an independent consultant So you know ‘who is an independent consultant?’, but what are the unique perks of working this profession? Here’s a quick look at the benefits: * Your potential income is not limited to a certain amount, it would entirely depend of the reputation you build for yourself as an independent consultant * You have the freedom and flexibility to pick your working hours and jobs to work on * You can potentially achieve a better work-life balance * You get to work on a diverse array of projects- which is not allowed under a single employer Sounds good? Time to look at a step-by-step answer to ‘how to become an independent consultant?’ then! **How to become an independent consultant: a step-by-step guide** ----------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1704966468561-compressed.png) > [Source](https://www.pexels.com/photo/male-employer-gesticulating-and-explaining-idea-in-light-office-3760089/) | How to become an independent consultant? So now we have a good idea of ‘who is a consultant?’, but the question of ‘how to become an independent consultant?’ still stands. Let’s look at a quick, step-by-step guide for a career as an independent consultant: * **Choose your niche**: First things first, you need to identify your area of expertise. * **Build a portfolio**: Clients want to see a proven track record of your expertise, so build a robust portfolio that showcases your skills and experience at their best. * **Legal structure**: Register your independent consultancy business and set up legal contracts. * **Set pricing**: Determine the rates and pricing structure for your services as an independent consultant. * **Networking**: Create a marketing plan and build a professional network which would help you acquire new clients. * **Client acquisition**: An obvious step, but one you might need to put a lot of effort into. * **Deliver results**: Ensure that you are providing high-quality services to every client to build a strong reputation. * **Manage business finances**: Keeping track of income, expenses, and compliance is important, especially if you are going global as an independent consultant. * **Be prepared to hustle**: Last but not least, establishing an independent consultant business is nowhere near as easy as reading through the steps above. Be prepared to give your best shot at every project and spend hours on client acquisition in the beginning days.  Once your business stands on an even footing, do remember some continuations to the aforementioned steps to become the best independent consultant you can be: * **Continuous learning**: Never forget to stop learning, and stay updated in your field to remain competitive. * **Scale and expand**: If you have started operating nationally, consider growing your consultancy or diversifying services and going beyond borders. * **Choose a trusted finance partner**: Once you are going international, finance and relevant compliance can become a lot of work eating into your productivity without the right partner. Fortunately, [Salt Fintech](https://salt.pe/) can take care of global finance and compliance for you! Smooth global business transactions with Salt Fintech ----------------------------------------------------- Well, now you have all the answers: who is a consultant, and how to become an independent consultant. However, to expand your business globally, you need a trusted finance partner to take care of your business transactions, taxes, and other compliance work. Salt Fintech can be of immense help here!  With Salt, you can receive international payments from both merchants and individuals in 24 hours, that too in over six foreign currencies and from over fifty countries. The transaction fee is set at 1.75% for all your trades with Salt, and there are neither any hidden fees nor any threats of blocked funds or chargebacks. Salt further takes care of [FIRC](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) certifications for you, adopting a comprehensive approach in taking care of your global finances. [Contact us today](https://app.salt.pe/signup) and ensure smooth global operations for your independent consultancy work! **FAQs** -------- 1. How to know it is the right time to choose the career of an independent consultant? Wondering if it is the right time for you to switch over to the career of an independent consultant? Here are some signs you can look out for:**​​** * You look for more independence in your work procedures, and freedom in choosing what to work on * You want to make a bigger impact than being stuck under one employer * You are looking to set your own rates without a cap * You are passionate about starting out an independent consultancy business * You want a better work-life balance * You want to change your career or are at a juncture where you are unsure what to do next 2\. What is the difference between independent consultant and independent contractor?  The terms 'independent consultant’ and ‘independent contractor’ may be used interchangeably, but the roles are quite different. Firstly, an independent consultant acts as an advisor to a business, offering their takes and insights on various business decisions, new strategies, and existing business issues. On the other hand, an independent contractor is any person providing services to a business without being directly employed by it. You could say that independent consultants are one type of independent contractor, judging by these definitions. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Best ways to send money from Canada to India Author: Shaun Paul Published: 2024-01-03 Category: International Payments Meta Title: Send money from Canada to India Meta Description: Discover the best ways to send money from Canada to India – a comprehensive comparison of cross-border transfer options. Tags: international money transfer, best ways to send money, currency exchange fees, money from Canada to India, Canadian dollars to rupees URL: https://salt.pe/blog/transfermoney-canada-to-india The number of immigrants in Canada is about to reach the [2 million mark in 2023](https://www.y-axis.com/news/indians-migrating-to-canada-tripled-since-2020-soon-to-reach-2-million-mark/#:~:text=19%2C89%2C535-,The%20number%20of%20immigrants%20is%20about%20to%20reach%20the%202,by%20the%20Canadian%20government%2C%20etc.), and Indians make a fair share of that. With 1.86 million population of Indians in Canada, it's safe to say that Canada is attractive to Indians. So whether you're someone living in Canada who is wondering how to send money from Canada to India to your parents, or if you’re an Indian business looking to be paid by a Canadian client, here are the best ways to send money from Canada to India.   Contents * [Canadian Dollars to Indian Rupees](#canadian-dollars-to-indian-rupees) * [Wire Transfer or Electronic Transfer](#wire-transfer-or-electronic-transfer) * [Cheque or Demand Draft](#cheque-or-demand-draft) * [Cash Pickup](#cash-pickup)  * [Using International Payment Processors and Neobanks](#using-international-payment-processors-and-neobanks)  * [Compare PayPal and SALT - send money from Canada to India](#compare-paypal-and-salt-send-money-from-canada-to-india) * [Using a Foreign Exchange Broker](#using-a-foreign-exchange-broker)  * What to [Keep in Mind while Bringing Money from Canada to India:](#keep-in-mind-while-bringing-money-from-canada-to-india) * [Exchange Rate](#exchange-rate) * [Security](#security)  * [Fees](#fees) * [Convenience](#convenience) ​Canadian Dollars to Indian Rupees The exchange rate from Canadian Dollars to Indian Rupees, as of January 3, 2024, stands at about INR 62.  **Best Ways to Send Money from Canada to India** Now, back to our actual topic of discussion. How can someone send money from Canada to India? The several methods include: ### Wire Transfer or Electronic Transfer In a wire transfer, banks worldwide send money to one another's accounts using an international communications network called [SWIFT](https://salt.pe/blog/swift-money-transfers-to-india) (Society for Worldwide Interbank Financial Telecommunication). Such an international money transfer can be made from a Canadian bank account to the recipient's Indian bank account.  The transfer request to send money from Canada to India can be sent online or by visiting a bank branch. You must fill out an online form when doing a wire transfer online. Otherwise, you must visit the bank, get the form and submit it in person. The following details will be required-  * **Name of beneficiary** * **Name and address of beneficiary bank** * **Beneficiary's account number, and**  * **Bank's SWIFT code.**  Although wire transfer is considered one of the best ways to send money by high-street banks for international money transfer, it tends to be very slow and pricey. This is because when you do international money transfer with a bank, you'll be paying currency exchange fees to convert your currency into another currency over and above the standard set of fixed fees, commission fees, and other bank fees that your bank may charge. A wire transfer takes between 1 and 5 working days to complete. It can be safe usually, provided you check your details carefully before initiating a transaction.  ### **Cheque or Demand Draft** The option to send money from Canada to India using a cheque or demand draft is there if a wire transfer is unavailable.  First, the sender needs to draw a cheque and a demand draft in the name of the beneficiary in India. They will have to attach a letter of instruction to the cheque, and in the case of a demand draft, they will have to fill up a demand draft form. Then the cheque or demand draft can be sent to the beneficiary’s bank in India through mail or courier for processing. ### **Cash Pickup**  Cash Pickup is one of the best ways to send money from Canada to India. According to a recent World Bank report, [India is home to 130 million adults without access to formal banking](https://www.downtoearth.org.in/news/economy/india-still-among-countries-with-poor-access-to-banking-report-83542), making services like cash pickup one of the best ways to send money from Canada to India. Cash pickup is a method of international money transfer where the sender initiates the transaction, and the recipient collects the funds in cash at a designated location, often at a local bank or financial institution.  After the sender has paid service fees and currency exchange rates,  the recipient can go to a designated location and present a valid photo ID and the transfer reference number to receive the cash. Cash pickup transfers charge slightly higher fees as compared to the previous options, but they do arrive faster. In comparison, bank deposits have lower fees but often take longer. Cash pickup transfers can be safe using reputable services, but risks like theft or fraud exist.  ### **Using International Payment Processors and Neobanks**  There are many fintech services available now, such as the online payment system [PayPal](https://salt.pe/paypal) or neobanks like [SALT Fintech](https://salt.pe/) that can help you out with international money transfers, be it for business or personal purposes. For businesses operating in India, you can use such services to send invoices to your Canadian clients to allow them to send money from Canada to India smoothly.  With online payment systems like PayPal, costs can be relatively high due to varying transaction costs and exchange rates, as well as a lack of help in compliance. Therefore, they are convenient for small transfers but may not be the most cost-effective option for larger sums.  An alternative to expensive payment services is [SALT](https://www.salt.pe/blog/paypal-salt-comparison). We charge a flat 1.75% fee for all your cross-border transfers, with 0% forex markup, no threats of blocked funds and chargeback, free FIRC, dedicated relationship managers, and a lot more convenient features to make international payments the easiest for you! **Compare PayPal and SALT - send money from Canada to India** ------------------------------------------------------------- **​ ** **![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1704440599676-compressed.png)** ### **Using a Foreign Exchange Broker**  These services specialise in large transfers and can negotiate good currency exchange fees. Costs vary, but generally, they charge fees or offer competitive exchange rates. Transfer times may range from a few hours to several business days, depending on the foreign exchange broker and the chosen transfer method. However, the security factor is dubious at best, since safety of the fund depends on the provider's reputation and regulatory compliance.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1704441374146-compressed.jpeg) [Source](https://www.compareremit.com/money-transfer-tips/how-to-send-money-from-canada-to-india/) | Converting Canadian dollars to Indian rupees ​ **Keep in Mind while Bringing Money from Canada to India:** -------------------------------------------------------------- Now we know about the many options one has to send money from Canada to India. However, how do you make your choice? Based on these factors, of course: ### **Exchange Rate** Make sure you are using a service provider that would charge currency exchange rates based on the live rate you can find with a Google search, so no hidden charges are added. [SALT Fintech](https://salt.pe/) can be a good option for your business transactions in this case, since we go by the live exchange rate on Google.  ### **Security**  Prioritise regulated providers with solid security measures like encryption and multi-factor authentication. Investigate their track record for data protection and ensure they comply with relevant financial regulations.  ### **Fees** Examine the provider's fee structure meticulously. Look for transparency, including hidden or extra charges beyond the stated fees. Hidden fees can significantly impact the cost of your money transfer. They can take various forms, including exchange rate markups, undisclosed transfer fees, recipient fees, and service charges. A fixed fee like SALT’s can help you plan your finances better. ### **Convenience** Evaluate the user-friendliness of the transfer process. Consider factors like the ease of initiating transfers, tracking transactions, and accessing customer support. For example, with neobanks like [SALT Fintech](https://salt.pe/), you have convenience at your fingertips with a simple UI and 24/7 customer support. In conclusion, to send money from Canada to India, make sure you are providing your client with an option that takes into account all four of the aforementioned factors. [SALT Fintech](https://salt.pe/) can be your dependable global business ally, offering competitive pricing, a commitment to not charging extra on exchange rates, dedicated customer support, relationship managers, and a solid dedication to ensuring your business's compliance. We're here to support you in all situations! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The List of Countries in SEPA - International Money Transfer Author: Sudhanshu Choudhary Published: 2023-10-17 Category: International Payments Meta Title: The List of Countries in SEPA Meta Description: SEPA is a payment initiative of the EU to ease the transfer of funds across borders. But which countries are a part of it? Read to find out. Tags: Importance of SEPA , cross-border transfers, cross-border transactions, countries URL: https://salt.pe/blog/what-is-sepa ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/the-list-of-countries-in-sepa-1698235314320-compressed.jpg) SEPA, or Single Euro Payments Area, is a well-known term for Europeans or those with financial ties in Europe. A fairly interesting concept, the SEPA is an initiative by countries of the European Union to ease the process of bank transfers made in euros. Currently, SEPA has thirty-six member states.  However, before diving into the list of members, let’s understand its significance and its working.  What is SEPA? ------------- SEPA facilitates cashless payments between several European countries and is approved and regulated by the European Payment Council (EPC). European businesses and consumers use the SEPA structure to make payments across borders without any extra charges and with the convenience of domestic payments.  Types of SEPA transfers ----------------------- On the surface, there are two types of SEPA transfers; credit and debit. A SEPA credit transfer is a one-time transaction among banks with IBAN identification codes. It is also used as a one-time service by consumers to pay for goods and services. The funds can be credited the very same day if the transaction is made in the first half of a working day.  On the other hand, a SEPA debit transfer is a recurring payment made within the EU among different countries. It is used by businesses to receive payments and can also be used for subscriptions, utility bills, etc. However, if we dive into the details, SEPA consists of four payment processing schemes: * **The SEPA Credit Transfer Scheme: SCT is used to transfer money from one bank account to another in SEPA-participating countries. The currency used in such transactions is Euro.** * **The SEPA Instant Credit Transfer Scheme: This process is used to make instant cashless transactions to retailers, online stores, etc., in the European SEPA countries.**  * **The SEPA Direct Debit Core Scheme: This is used for making recurring payments like bills, subscriptions, and more in SEPA countries. It is a ‘pull’ transaction where the payee has the authority to take the amount from the payer’s bank account. It’s a bank-to-bank transaction. It is again conducted in Euro, even if both the banks are in non-euro countries. The currency exchange takes place, where the extra fee is paid for the process.**  * **The SEPA Direct Debit Business-to-Business Scheme: SDD B2B is an automated payment scheme that facilitates cross-border payments as quickly as possible.**  **Why is a SEPA account favourable in Europe?** ----------------------------------------------- **If you’re someone who frequently travels to the countries in the European Union and other members of the SEPA system, it is advised to open an [IBAN account](https://www.salt.pe/blog/how-to-find-iban-number-international-bank-account-number-clgc8sah9475933up20y9qt8w4). An IBAN account facilitates cheaper cash withdrawals in Europe and much faster transactions. It also allows one to have access to mobile and online banking applications. With multiple EU countries going cashless, having a European credit/debit/payment card is convenient for easy purchasing and expenditure.**  **Other benefits of SEPA**  --------------------------- **Along with being a convenient way of transactions in countries in the European Union, SEPA also facilitates global ACH payments. It helps one make speedy cross-border payments without having to worry about high transaction costs. It also provides access to payment platforms that help keep an eye on payment statuses, invoices and any other related updates.**  **How are SEPA payments initiated?** ------------------------------------ **Setting up a SEPA transaction isn’t really much of a hassle. To make a transaction through SEPA, first, one needs the following information:** * **Name of the payee (person or organisation)** * **International Bank Account Number of the account**  * **The country the money is being sent to** * **Business Identifier Code (BIC)** **Now to initiate a transaction, the following steps are to be taken:** * **Submit the payer’s account information and the amount that is to be transferred.** * **An authorisation agreement named SDD Mandate is implemented to permit the biller to pull funds from the payer’s account.** * **Set up the payee’s account for the transaction.** * **Submit the transactions for processing.** **Any international transfer of funds takes up to five days to complete. However, with the same currency being shared and the countries being close to each other, it can take much less time than that.**  **What countries are members of SEPA?** --------------------------------------- ### **The following thirty-six countries are a part of SEPA:**  * **EU member states with the Euro currency** * **Austria** * **Belgium** * **Cyprus** * **Estonia** * **Greece** * **Ireland** * **Italy** * **Finland** * **France** * **Germany** * **Latvia** * **Lithuania** * **Luxembourg** * **Malta** * **Netherlands** * **Portugal** * **Slovakia** * **Slovenia** * **Spain** * **EU member states where the currency is not Euro** * **Bulgaria** * **Croatia** * **Czech Republic** * **Denmark** * **Hungary** * **Poland** * **Romania** * **Sweden** * **Non-EU members of SEPA** * **Andorra** * **Iceland**  * **Liechtenstein** * **Monaco** * **Norway** * **San Marino** * **Switzerland** * **United Kingdom (UK)** * **the Vatican City State / Holy See** **Do you think SEPA is a good initiative? Drop your thoughts on social media when you share this article!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## USD To INR Rate: The forecast for 2024 Author: Ankit Parasher Published: 2023-10-17 Category: International Business Meta Title: USD To INR Rate: The forecast for 2024 Meta Description: Looking for USD to INR rate in 2024? In this post, explore the USD to INR exchange rate's journey over a decade, USD to INR forecast for 2024, and more! Tags: USD/INR, usd to inr rate, usd to inr exchange rate, usd to inr historical data, usd to inr today exchange rate, usd to inr forecast URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-usd-to-inr-rate-forecast-for-2024-1698235006956-compressed.jpg) Exploring the USD to INR exchange rate takes us on a fascinating journey through economic ties between the United States and India. A look at the USD to INR news now and over the past decade indicates  the USD to INR rate has shown remarkable shifts, influenced by global events and domestic economic changes. Understanding this history provides valuable insights into the factors that have moulded this currency pairing, as well as a better USD to INR forecast for 2024.  Let's embark on an exploration of the USD to INR exchange rate's trends, unwrapping its story and uncovering USD to INR forecasts for 2024.  USD to INR Rates as of 2023 --------------------------- Looking for the latest USD to INR news? As of August 31, 2023, for example, if you wanted to trade one US dollar for Indian Rupees, you'd get about 82.73 rupees. This number jumps around because of sociopolitical, as well as economical happenings around the world on a daily basis.  The USD to INR today exchange rate is representative of how the US and India's economies are getting along. With that in mind, let's rewind a bit and see how things have been playing out between the US dollar and the Indian Rupee over the past ten years. USD to INR Historical Data -------------------------- Going by USD to INR historical data over the last 10 years, we find that even though the USD to INR rate is now around 83 rupees, it was not always the case. 10 years ago, USD was trading at as little as INR 56.57! The table below takes us through the [USD to INR historical data](https://in.investing.com/currencies/usd-inr-historical-data) over the last 10 years.  Year Exchange Rate (INR per USD) YoY% Change 2013 56.57 2014 62.33 10.14% 2015 62.97 1.03% 2016 66.46 5.56% 2017 67.79 2.00% 2018 70.09 3.40% 2019 70.39 0.43% 2020 76.38 8.51% 2021 74.57 \-2.37% 2022 81.35 9.10% The more or less steady climb of the USD to INR rate has been driven by an array of factors. Over these years, global economic shifts, trade dynamics, geopolitical events, and even domestic policies have played a symphony of influences. The COVID-19 pandemic, in particular, stirred unprecedented volatility across global markets, further shaping this currency pair's journey. As we navigate toward 2024, it's intriguing to predict how these factors will continue to intertwine and shape the future of the USD to INR exchange rate. USD to INR Forecast 2024 ------------------------ Speaking of the USD to INR forecast, [experts suggest](https://www.bookmyforex.com/currency-converter/usd-to-inr/forecast/) the USD value would continue to hover around INR 82.7 until the end of 2023 without much of a change, but it might lose ground slightly in the beginning of 2024 and measure up to around INR 82.6.  In the upcoming year, no major shifts are being predicted for the USD to INR rate, and by September next year, the USD to INR rate may be around INR 82.4.  Of course, this isn't fortune-telling; it's educated guessing. Factors like economic growth, interest rates, and even world events will pull the strings. The US dollar might flex its muscles due to its economy, while India's policies and global dynamics could add their own moves. Keep in mind, surprises are part of the currency game. The real USD to INR rate might follow the script or toss in a curveball, it’s anyone’s guess. So, if you're thinking about investments or businesses linked to different currencies, this prediction offers insight, but it's not a crystal-clear view. It's like predicting the weather – you plan for rain, but you might get sunshine. USD and INR: Final Word  ------------------------ If you are running a business out of India that operates across borders, knowing the USD to INR today exchange rate, as well as the USD to INR forecast for 2024 may help you in planning your finances. However, your business finances may still require careful consideration, risk assessment, and expert guidance to ensure you can put up with any sudden risks when it comes to the USD to INR conversion rates.  At [SALT Fintech](https://salt.pe/), we bring you the convenience of receiving international payments in over seven foreign currencies in your local account, including the USD. Further, we take care of compliance, and also put you at ease regarding your business’s finances with unblocked funds and dedicated relationship managers! In terms of USD to INR conversion, we do not charge any markup on conversion, and we follow the live Google rates for converting USD to INR! So if you’d like to make cross-border payments smoother for your business, why not check out [SALT Fintech](https://salt.pe/)? FREQUENTLY ASKED QUESTIONS -------------------------- **Q. How does the USD to INR exchange rate affect international trade?** A. The USD to INR exchange rate plays a pivotal role in international trade. A stronger rupee against the US Dollar can make Indian exports more expensive for foreign buyers, potentially impacting trade volume. On the other hand, a weaker rupee can make Indian goods more competitive in global markets, boosting exports. **Q. What factors can lead to sudden fluctuations in the USD to INR rate?** A. Sudden fluctuations can be triggered by various factors such as economic data releases, geopolitical tensions, central bank decisions, and unexpected global events. These events can lead to rapid shifts in investor sentiment, causing quick changes in demand for the US Dollar and affecting the exchange rate. **Q. How can investors take advantage of USD to INR rate movements?** A. Investors can employ forex trading strategies to profit from USD to INR rate movements. This involves buying or selling currency pairs based on predictions of rate changes. However, it's crucial to remember that forex trading carries risks, and informed decision-making is essential. **Q. How do central bank policies impact the USD to INR rate?** A. Central banks influence USD to INR exchange rates through monetary policy decisions. Raising interest rates can attract foreign capital, leading to a stronger currency. Conversely, lowering rates can weaken the currency. Central banks' interventions and communication can cause volatility in the USD to INR rate. **Q. Is the USD to INR rate solely determined by economic factors?** A. No, the USD to INR rate is influenced by a complex interplay of economic, political, and social factors. Economic indicators, trade relationships, geopolitical stability, and even market sentiment collectively shape the USD to INR conversion rate. Monitoring a range of factors is key to understanding rate movements accurately. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Founder vs Co-founder: Understanding the Difference Author: Ankit Parasher Published: 2023-10-17 Tags: startup Salt , founder vs. co-founder, co-founder and founder, startups, URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/founder-vs-co-founder-understanding-the-difference-1697792957240-compressed.jpg) In the vibrant world of startups and entrepreneurship, the terms "founders" and "co-founders" are often used interchangeably, leading to some confusion. However, there are subtle distinctions between these roles In this blog, we'll explore the difference between founder and co-founder, shedding light on their unique contributions and the significance of their roles within a startup. Founder vs. Co-Founder: Who is a Founder? ----------------------------------------- When we talk about founders, we refer to the individuals who initiated and conceptualised the idea behind a startup. They are the trailblazers, driven by their vision, passion, and entrepreneurial spirit. Founders are often the driving force behind the company's inception and play a crucial role in shaping its mission, values, and overall direction.  A founder typically deeply understands the problem they aim to solve and possesses the knowledge and expertise required to build a business around it. They are responsible for crafting the initial business model, conducting market research, and identifying potential opportunities and challenges.  The founder's journey begins with ideation and continues through the early stages of development, where they lay the groundwork for the startup's future. They are often heavily involved in securing funding, assembling a team, and building strategic partnerships to propel the company forward. Founder vs. Co-Founder: Who is a Co-Founder? -------------------------------------------- If a startup has both a founder and co-founders, the co-founders are generally individuals who join the founder in the early stages of the startup or later on to help bring the founder’s vision to life. They contribute their expertise, skills, and resources to complement the founder's abilities and fill critical gaps in the business's foundation.  The role of a co-founder varies depending on their specific skill set and the startup's needs. Co-founders can bring diverse backgrounds and knowledge, such as technical expertise, operational acumen, marketing prowess, or industry connections. Their collective strengths enhance the startup's capabilities and increase the chances of success.  Co-founders often shoulder significant responsibilities, collaborating closely with the founder to refine the business model, create a sustainable growth strategy, and develop a cohesive team culture. Their contributions extend beyond the initial stages, as they actively participate in decision-making, resource allocation, and the startup's day-to-day operations.  Founder vs. Co-Founder: What is the Difference Between Founder and Co-Founder? ------------------------------------------------------------------------------ So now we understand the basic definitions summing up founders and co-founder, but the question still remains: what is the difference between founder and co-founder?  Entrepreneurship is the bedrock of innovation, and founders and co-founders are at the forefront of driving this transformative force. They embody the spirit of creativity, risk-taking, and resilience that fuels the growth of startups and disrupts industries. The job of founders is to bring forth groundbreaking ideas and develop them into viable business models. They possess a unique ability to identify opportunities in the market and envision solutions that address unmet needs. Founders are driven by a passion for making a difference and are determined to overcome obstacles on their entrepreneurial journey. Co-founders, conversely, bring their expertise and complementary skill sets to the table. They join forces with founders to turn ideas into reality. Co-founders are crucial in refining and executing the vision, leveraging their specialised knowledge in areas such as technology, finance, marketing, or operations. Their collaborative efforts create a synergy that propels the startup forward, fostering innovation through diverse perspectives and skill sets. The difference between founder and co-founder can be summed up thus: ### Founder vs. Co-Founder Founder Co-Founder Spearheads and originates a business model. Joins the founder during the startup’s origin, or joins later to materialise the founder’s vision.  Can not be fired. Can be fired with a board vote. Think up ways to move around or do away with obstacles on the road to growth.  Focus on strategy and alignment throughout the organisation. May be involved with all or multiple aspects of business operations. May specialise in and lead one aspect. The Power of Collaboration: Founders and Co-founders Working Together --------------------------------------------------------------------- As the difference between founder and co-founder shows, while founders and co-founders have distinct roles, the success of a startup often hinges on the synergy and collaboration between them. Their combined efforts create a strong foundation for the company, enabling it to thrive and adapt in a competitive landscape.  Founders and co-founders should foster open communication, mutual respect, and a shared vision to ensure a harmonious working relationship. Trust and transparency are key ingredients for a healthy partnership, as both parties need to align their objectives and make strategic decisions together.  It is essential to recognize that the contributions of both founders and co-founders are vital for a startup's growth. Each individual brings unique perspectives, skills, and experiences to the table, resulting in a diverse and dynamic team. By leveraging the strengths of all team members, startups can overcome challenges, seize opportunities, and create innovative solutions. Conclusion ---------- In the dynamic world of entrepreneurship, founders and cofounders play pivotal roles in shaping the future of startups. As the visionaries, founders drive the initial spark and set the company's course, while co-founders bring complementary skills and expertise to the table, propelling the startup forward.  Understanding the difference between founder and co-founder allows us to appreciate the collaborative nature of startup ecosystems. By fostering an environment of mutual respect, trust, and effective communication, founders and co-founders can maximise their potential and pave the way for a successful journey for startups.  Speaking of startups, as a business operating in a global landscape, international banking may prove to be a hassle if you take the traditional way. This is where Salt Fintech comes in! By partnering with Salt Fintech, you can have the convenience of global banking with local accounts! [Learn more](https://salt.pe/) about our services today! Frequently Asked Questions (FAQs) --------------------------------- ### **1\. How does the role and level of involvement differ between a founder and a co-founder?** **Usually, founders have a higher level of involvement and hold more decision-making authority in a company, which is why they take on leadership roles. Meanwhile, co-founders can also play crucial roles, but their level of involvement may vary depending on their specific skills, expertise, and agreements.** 2\. Are the legal rights and responsibilities different for founders and co-founders? **Legal rights and responsibilities can vary depending on the agreements founders and co-founders have in place. They might have different stakes in the company, varying voting rights, and different responsibilities, as stated in their contracts.** 3. Can a co-founder become a founder, or vice versa? **The founder is the original creator of a company, while co-founders join the founder to bring their vision to a reality. While the difference between founder and co-founder is not necessarily set in stone and can change over time, a co-founder can not become a founder. However, the founder may choose to step back while co-founders take up greater leadership roles.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Setting up PayPal Business Account for Freelancers in India Author: Ankit Parasher Published: 2023-10-17 Category: Freelancers Tags: Salt fintech, Paypal, PayPal,, business account paypal, Paypal freelancers URL: https://salt.pe/blog/setting-up-paypal-business-account-for-freelancers-in-india-clnub57xr1531871vpm4wm8rpn1 ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/paypal-business-account-for-freelancers-in-india-1698236153351-compressed.jpg) Are you a freelancer based in India, eager to explore the vast world of international clients? If you have been considering a PayPal business account in India, we're here to demystify the process of setting up a business account for PayPal!  In this guide, we'll walk you through the nitty-gritty, making sure you're equipped with all the essential information to smoothly navigate domestic and cross-border payments. Further, we’ll also be discussing alternatives for your freelancing business account! How can Freelancers in India Create PayPal business accounts? ------------------------------------------------------------- Before we delve into the "how-to," let's tackle the "can you?"  Freelancers in India, rejoice! You're absolutely eligible to open a PayPal business account and tap into a world of opportunities. However, there are a few essentials you'll need to have in place: * **A Registered Business: To get the ball rolling, you'll need to have a registered business. It's the foundational step that sets the stage for your PayPal journey.** * **A Business Category: Select a business category that best aligns with the nature of your freelancing endeavors. It's all about categorizing your awesomeness!** * **A Business PAN: Your Permanent Account Number (PAN) is like your freelancing fingerprint. Make sure it's at the ready, as it's a vital piece of this puzzle.** * **A Business Bank Account: Sync things up by having a business bank account that shares the same name as your PAN. It's all about keeping things streamlined and smooth.** * **Annual Sales Volume: Get an idea of your annual sales volume – a peek into your freelancing business’s growth.** **However, if you are a new freelancer looking to go global, you may need to look at some other options since PayPal won’t be much of a help. A neobank like SALT Fintech, for example, can help you manage your finances better!**  **How? We learn that later on.**  **Setting Up Your PayPal Business Account: A Step-by-Step Guide** ----------------------------------------------------------------- **Coming back to the topic at hand, let's dive right into the heart of the matter – setting up your very own PayPal business account. Don’t worry, we're here to guide you through every twist and turn.** ### **Business Account PayPal: Get it Running** ** Freelancers in India: got all the eligibility requirements in check? Fantastic! You're on your way to traversing borders seamlessly. We’re now ready to open a PayPal business account, and here are the steps that would get you started.  ### 1\. Getting Started Head over to the PayPal India website and look for the "Business" option, conveniently located on a bar at the top of the page. Click on it, and let's kick-start your registration process for a business account PayPal.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1697546148851-compressed.png) [Source](https://www.paypal.com/in/webapps/mpp/account-selection)| Open PayPal business accounts for freelancers in India  ### 2\. Choosing Your Account Type You'll be presented with two options: "Individual Account" and "Business Account." Here's where your freelancing aspirations take center stage – go ahead and choose the "Business Account." ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1697546150904-compressed.png) [Source](https://www.paypal.com/in/webapps/mpp/account-selection)| Open business account on PayPal for freelancers in India  ### 3\. Providing Your Business Details Next, it's time to share a little bit about your freelancing business for a PayPal business account. Enter your email address, select the relevant business category that best mirrors your line of work, and note down the date when your business set sail. ### 4\. PAN and Business Details In this section, you’ll be required to enter your PAN details. Make sure that the name on the PAN matches the name of your business as freelancers in India.  ### 5\. Financial Information for Compliance Time to hoist the compliance flag! You'll need to share financial details to ensure smooth sailing through Indian tax waters. It's all about ensuring your business is in top shape in terms of conforming to relevant rules. ### 6\. Verify and Activate Your Account Once all details are given, PayPal will send you an email to verify your account. Click on that link – it's your ticket to the next leg of this journey to open a business account PayPal.  ### 7\. KYC Procedures Now it’s time for the KYC (Know Your Customer) protocol. This step involves submitting identification documents, a necessity from the government to ensure you’re who you say you are, and to prevent other frauds.  ### 8\. Banking Information Navigate to the "Banking" section and put in your bank details. It's like setting your compass to guide your hard-earned treasure right into the coffers of your PayPal business account. ### 9\. Verification Time to seal the deal! PayPal will deposit two small yet unique amounts into your bank account. Keep an eye on your account and enter those amounts to verify your bank account with PayPal. ### 10\. Ready, Set, Sail! With verification complete, you're ready to sail the seas of seamless cross-border payments. Your PayPal business account is officially your vessel for receiving payments from across the globe. PayPal Personal vs. Business Accounts: Which One is Better for Freelancers in India? ------------------------------------------------------------------------------------ Time for some considerations! If you would remember, we clarified just a while ago that you need to be registered as freelancers in India if you want a business account on PayPal, and you must present data regarding an annual sales volume. However, would a personal account let you delve into global business as you build your company up from scratch, and gather up the documentation for the business account?  Let’s compare the two types of PayPal accounts and see the pros and cons they might give to freelancers in India: Differentiating Factors PayPal Individual Account PayPal Business Account  PAN requirement  No Yes Link to an Indian debit or credit card Yes No Link to an Indian bank account No Yes Send global payments Yes Yes Receive global payments   Yes Yes Sending invoices No  Yes Hold money in PayPal wallet No  No If you look at this table comparing PayPal business accounts with individual ones, you can see that they don’t really differ in terms of benefits much, except as a registered business having a business account is more convenient for you, since you can send invoices and generate payment links to send to customers or add to an option on your website.  However, there’s still the factor that PayPal can only be of help when you are an already established business. There are considerations to be accounted for too, namely associated costs and fees Weighing the Anchor: PayPal Costs and Fees ------------------------------------------ Before you launch your ship into the sea of international freelancing, let's weigh the anchor and discuss the practicalities. Opening a PayPal business account is a breeze for sure – it's free! However, keep in mind that there are fees associated with using the account for transactions. The transaction fees consist of two components: a percentage of the transaction value and a fixed fee. The fixed fee varies based on the sender's originating country. So, if you're receiving payments from different parts of the world, be prepared for a bit of variability in these fees. Additionally, there's something to consider when it comes to exchange rates. PayPal charges an extra 4.0% on top of the exchange rate. This can impact the final amount you receive in your local currency, as it is lower than the rate you see on platforms like Google.  Exploring an Alternative: SALT's Solution ----------------------------------------- Imagine a world where your international money transfers are as smooth as a gentle ocean breeze. Enter SALT, an Indian fintech startup that's rewriting the rules of cross-border payments. Co-founded by Udita Pal and Ankit Parashar, SALT aims to address the common challenges faced by businesses when navigating international waters. Whether you are a beginner or veteran among freelancers in India, [SALT can help you out](https://www.salt.pe/blog/paypal-salt-comparison#:~:text=Usually%2C%20the%20transaction%20fees%20charged,a%20flat%20rate%20of%201.75%25.)! ### What sets SALT apart?  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1697546154449-compressed.png) SALT Fintech is a one-stop solution that takes care of the complexities of international money transfers so you can focus on your freelancing adventures. Let's take a closer look at the advantages that make SALT a superior alternative: 1\. Competitive Fees: With SALT, your hard-earned money stays in your pocket. SALT's fees are a mere 1.75%, offering a cost-effective way to handle your international transactions. This means more of your earnings find their way to you. 2\. No Exchange Rate Markup: Say goodbye to hidden costs. SALT doesn't impose any markup on exchange rates- what you see is what you get. Further, SALT Fintech follows the live exchange rate on Google when it comes to currency conversions: this transparency ensures you're not left guessing about the value of your transactions. 3\. Free FIRC: FIRC (Foreign Inward Remittance Certificate) is a crucial document for cross-border payments. Unlike PayPal and most other options, SALT provides this document free of charge. It's a small detail that can make a big difference in streamlining your financial processes. 4\. Transparent Processes: At SALT, transparency isn't just a buzzword. It's at the core of everything we do. From processes to fees, every aspect is crystal clear. No surprises, no fine print – just straightforward operations. 5\. Superior Customer Service: Navigating international waters can be daunting, but SALT's customer service is like having a knowledgeable captain by your side. With a commitment to understanding your needs and providing swift solutions, SALT's customer service is designed to ensure your journey is as smooth as possible. Further, SALT brings the freelancers in India dedicated relationship managers to ensure a smooth experience, and you are free forever from the hassle of blocked funds and chargeback!  If you consider PayPal vs. SALT, here’s yet another perk: SALT is designed specifically to make global finance smooth for your business, so you get a smoother UX with us, as compared to the multi-faceted PayPal! So, as you set your sights on expanding your freelancing horizons, consider the streamlined services of [SALT Fintech](https://salt.pe/). It's like having a seasoned captain guide your ship through the intricacies of international transactions. With SALT by your side, you're not just setting sail – you're embarking on a journey backed by cutting-edge technology and a commitment to making your cross-border payments as seamless as possible. Setting Sail with Confidence with Salt Fintech ---------------------------------------------- Armed with insights into SALT's innovative approach and a clear understanding of PayPal's costs, you're ready to set sail with confidence. As freelancers in India seeking the best route for your international transactions, weigh your options wisely. Whether you choose PayPal's established platform or opt for the tailored solutions of SALT, your journey is bound to be smoother and more successful after due consideration of the various aspects of both! Bon voyage on your freelancing journey! Frequently Asked Questions -------------------------- 1\. Can I open a PayPal business account if I'm not a registered business in India? No, PayPal's business accounts require you to have a registered business, a business category, a PAN, and a business bank account in the same name as the PAN. These requirements ensure that the account is linked to legitimate business operations. 2\. Is there a minimum annual sales volume required to open a PayPal business account? While PayPal doesn't specify a minimum sales volume, having a track record of business operations and sales can strengthen your application for a business account. Established freelancers with consistent sales are more likely to meet the criteria. 3\. Can I use a PayPal business account to shop online like I did with a personal account? No, PayPal's business accounts are primarily designed for receiving and sending payments related to your business or freelance services. The ability to shop online with a business account is limited compared to personal accounts. 4\. What happens if my bank information doesn't match the name on the business PAN card for my PayPal account? It's crucial for the name on your bank account to match the name on your business PAN card. Mismatches could lead to issues with verification and transactions. Make sure all your business-related documents are consistent. 5\. Are there any transaction limits on PayPal business accounts for freelancers in India? PayPal doesn't explicitly mention transaction limits for business accounts in their provided information. However, they may have certain limits in place to prevent fraud and ensure security. It's advisable to reach out to PayPal's customer support for specific details about transaction limits. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Client vs Customer: Why you should know the difference as business owner Author: Ankit Parasher Published: 2023-10-10 Category: Building A Company Tags: agency client relationship , Indian businesses, client vs customer , B2B, B2C, Loyalty programs URL: https://salt.pe/blog/null The business environment in India is on a rapid upward trajectory for multiple reasons, including the [growth of the country’s economy.](https://www.spglobal.com/marketintelligence/en/mi/research-analysis/india-economy-continues-to-show-strong-growth-in-mid-2023-aug23.html#:~:text=After%20rapid%20economic%20growth%20of,the%20first%20half%20of%202023.) In the evolving Indian businesses space, understanding the difference between a client and customer is pivotal for development. As a business owner in India, recognising the difference of client vs customer is crucial for building your brand image and creating long lasting relationships by tailoring your approach to meet their special requirements. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/client-vs-customer-why-you-should-know-the-difference-as-business-owner-1-1697545797904-compressed.jpg) In this article, we will delve into the characteristics of clients vs customers, discuss the key differences between them, and explain why understanding this distinction is vital for Indian businesses! Client vs customer: understanding clients ----------------------------------------- As we learn to differentiate between clients vs customers, let’s start with understanding the definitions. Who is a client, then? ### A. Characteristics of clients Clients are typically other businesses or professionals who engage with your services or products. In simple words, they are entities that receive services from a business in return for a payment. They form the foundation of business-to-business (B2B) relationships. Here are some defining characteristics of clients: **1\. Long-Term Contracts: Most of the time, clients will enter into long-term commitments or partnerships with your business. They are basically long-term buddies of your business and steady sources of income. These contracts can span months, years, or even decades.** **2\. Customised Services: Clients more often than not require tailored solutions and personalised attention to meet their specific requirements. They require customised products or services that align with their business objectives.** **3\. Mutual Trust: Building trust is essential in client relationships, as they depend on your expertise and reliability. Trust is often developed over time and is the foundation of long-lasting B2B (business-to-business) partnerships.** ### **B. Build your client relationship** ** For Indian businesses, [nurturing client relationships](https://www.salt.pe/blog/how-to-retain-your-clients) involves several key strategies: 1\. Effective Communication: Regularly updating clients on project progress, addressing their concerns promptly, and being responsive to their needs are pivotal for maintaining trust and satisfaction for both parties. 2\. Customisation: Offering personalised solutions and adapting your products or services to meet their needs demonstrates your commitment and dedication to their success. 3\. Going the Extra Mile: Putting in your best efforts at all times to exceed client expectations can help solidify long-term partnerships. To set your India businesses apart, delivering exceptional value and service is essential. Client vs customer:  understanding customers ----------------------------------------------- Now, as we continue to explore clients vs customers, it’s time to understand who customers are: **** ### A. Characteristics of customers **** Customers are individuals that buy goods or services in exchange for money. They are typically part of the B2C (business-to-consumer) market. Here are some defining characteristics of customers: **** 1\. Single Payment: Customers make one-time purchases or occasional transactions. They may buy your product or service only when they have a specific need, and generate revenue for your Indian businesses. 2\. Varied Statistics: Customers have diverse backgrounds, preferences, and buying behaviours. They may belong to different age groups, income brackets, and geographic locations. 3\. Price Conscious: Customers are often more price-conscious and may prioritise affordability as per their income. They are more likely to compare prices and seek discounts or deals. ### B. Building customer relationships To succeed, Indian businesses should focus on the following strategies: 1. Extraordinary services: Providing exceptional service during every interaction is crucial to leave a positive impression and encourage repeat buying. Great customer service can foster customer loyalty and brand image. 1. Customisation: Take customer feedback to understand the data to personalise recommendations and offers based on individual preferences and purchase history. This enhances the customer's connection with your brand. Personalisation can create a sense of belonging and loyalty. 1. Loyalty programs: Implementing loyalty programs to reward repeat customers or new customers and incentivize future purchases can increase [customer retention](https://www.salt.pe/blog/customer-acquisition-or-customer-retention) and drive repeat business. Loyalty programs are particularly effective in the B2C sector. Client vs customer: key differences  ------------------------------------ It’s time to discover the key differences between clients vs customers. Let’s take a quick look: ** **1\. Longevity of relationship: Clients engage in long-term contracts with your business, while customers are typically one-time or occasional buyers. Clients often provide a stable source of revenue, while customers may result in more fluctuating income.** **2\. Priorities: Clients require personalised solutions tailored to their specific needs, while customers may prioritise convenience and affordability.** ** 3\. Trust and relationship factors: Building trust is crucial with clients who rely on your expertise and reliability. In contrast, customers may focus more on product quality, value, and customer service. To summarise, here are the primary differences of clients vs customers: Clients Customers  Usually long-term relationships Usually one-time or occasional buyers  Preference on customised solutions Preference on convenience, usability, and affordability Personal relationship is integral More focus on quality, convenience, and customer service ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1696931933621-compressed.png) **** **Why knowing the difference of client vs customer matters for Indian businesses** **** Due to the broad and often changing market conditions, Indian firms must understand the difference between clients vs customers. Here's why it matters: **** 1\. Tailored marketing: Recognising your audience allows you to tailor your marketing efforts more effectively. B2B marketing should focus on demonstrating expertise and a result-driven approach. In B2C, customers emphasise convenience and affordability. Understanding your target audience helps allocate resources wisely. **** 2\. Revenue stability: Clients often provide a stable source of revenue, reducing the impact of market fluctuations. Building strong client relationships can ensure consistent income for your business, even during economic uncertainties. **** 3\. Market expansion: Expanding your client base and customer segments can open up new opportunities for growth and success in the Indian market. Understanding the diverse needs and preferences of clients vs customers can help you expand your market reach. **** Client vs customer: tailoring the approach for Indian businesses​​​ ------------------------------------------------------------------- **** In the last leg of this blog, we outline some strategies for your business to build the best possible connections with your client vs customer: ****### A. B2B strategies for clients Here is how you can provide the best service to your clients:** ** 1.  Industry knowledge: Deep grasp of the client's industry is required to show that you are confident in your abilities to handle their particular needs. **** 2\. Relationship building: Invest in building long-term relationships through regular communication and exceeding expectations. A strong client relationship often goes beyond just business; it's built on trust and mutual respect. **** 3.  Customised solutions: Offer tailored solutions and be adaptable to changes in the client's requirements. Flexibility and the ability to pivot as their needs evolve are key to maintaining client satisfaction.  ### B. B2C Strategies for Customers Now, here are some ways to ensure customer satisfaction: **** 1\. Customer service: Provide exceptional customer service. Respond promptly to inquiries, resolve issues efficiently, go the extra mile to find solutions. Having a secure payment gateway and creating positive experiences are crucial to building customer loyalty. **** 2\. Feedback: Encourage customer feedback and actively seek input to improve your products or services. Use feedback as a tool for refinement and enhancement. 3\. Personalisation: Leverage data (i.e. feedback and other customer insights) to personalise recommendations and offers. Make your customers feel valued, show that you understand their preferences and needs. ****Navigate Indian business space smoothly  ----------------------------------------** ** In the evolving and competitive Indian business segment, understanding the difference between client vs customer is a strategic imperative. Tailoring your approach to meet the distinct needs and expectations of these two groups can lead to lasting relationships, revenue stability, and sustainable growth. Looking for a banking partner to help your business expand globally? [SALT Fintech](https://salt.pe/) can be the right partner for you! With us, you can receive international payments in local accounts in a compliant and hassle-free manner, that too at the lowest fees and zero additional charges! Give [our website](https://salt.pe/) a visit today to find out more, and join the SALT community today! FAQs ---- **** 1. How crucial is trust in dealings with clients? Trust is of paramount importance in client relationships. Building trust fosters a strong client base, which is the foundation of B2B success. Trust can be built through consistent delivery of value, transparent communication, and fulfilling commitments. 2. How can you broaden your clientele and target new customer groups in the Indian market? Start by comprehending the industry trends to spot new prospects. Recognise the wants and preferences of your Indian market. Create focused marketing efforts that are specific to each market niche and adjust your offerings accordingly. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## GST for Foreign Exchange: Do I need to charge GST to foreign clients? Author: Ankit Parasher Published: 2023-09-22 Category: International Payments Meta Title: GST for Foreign Exchange: Do I need to charge GST to foreign clients? Meta Description: Uncertain about charging GST to foreign clients? Learn about the GST regulations for foreign clients and the details for GST for foreign exchange. Tags: Inward remittances, cross border payments, international businesses, FIRC, international money transfers, international business invoice, gst regulations , reverse charge mechanism, foreign clients , gst for foreign exchange, compliance handling, tax advisor , gst URL: https://salt.pe/blog/charging-gst-foreign-clients ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/gst-for-foreign-exchange-do-i-need-to-charge-gst-to-foreign-clients-1696934514032-compressed.jpg) Up to 2016, every purchase or service acquisition in India entailed the payment of various taxes such as VAT and Service Tax. A year later, [the introduction of GST](https://gstcouncil.gov.in/sites/default/files/GST-Concept%20and%20Status01062019.pdf) (the Goods and Service Tax) revolutionised our intricate taxation system, simplifying and unifying the process by subsuming multiple taxes under one umbrella. However, even after this transformation, a persistent question might linger: does GST apply to international money transfers, commonly referred to as inward remittances? As a business operating in India, how do you go about GST for foreign exchange?  The debate on this matter ultimately concerns whether India levies taxes on international money transfers. Taxing inward remittances received by businesses could contribute to the nation's revenue, potentially bolstering its financial resources.  However, this idea has its complexities and implications, as it may impact the livelihoods of those who rely on remittances from family members working abroad. Let's try to answer this question and get a detailed understanding of how GST for foreign exchange works. Should I Charge GST to Foreign Clients?  ---------------------------------------- GST is a significant source of income for our economy, with the Goods and Services Tax revenues [having grown by 13% in March, 2023](https://www.thehindu.com/business/Economy/march-2023-sees-second-highest-gst-collection-of-16-lakh-crore/article66687569.ece). Interestingly, this was the second highest monthly collections recorded from the indirect tax since its inception, standing at ₹1.6 lakh. Further, receipts from imports rose by 8%, and income from both domestic transactions and services imports have risen by 14% since last year.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/indias-goods-and-services-tax-1696934611639-compressed.jpg) As a GST-registered business in India, you are required to charge GST for inter-state trades, and must produce [GST-compliant invoices](https://www.salt.pe/blog/format-for-gst-bill) for such transactions.  Now, coming to GST for foreign exchanges. The clear answer would be that GST typically does not need to be charged to any foreign clients you are dealing with. However, the tax may be applicable to any fees or charges associated with the money transfer service, such as service charges or foreign exchange conversion fees, which are considered taxable services under GST regulations . GST for Foreign Exchange: Implications -------------------------------------- When it comes to GST for foreign exchange, when are GST regulations involved? Let's find out.  * ### GST on Inward Remittances **When it comes to receiving foreign currency through inward remittances in India, GST typically does not apply separately. Even though international money transfers online may incur an 18% transaction fee for certain products, this fee does not translate to a separate GST charge on the remittance itself. This is a significant benefit for businesses dealing with foreign clients because they do not need to add GST as an additional tax when providing their services.**  * ### **GST on Compliance Handling and [FIRC](https://www.salt.pe/blog/why-rbi-needs-brc-and-firc-in-your-international-business-cl8lbadip51311kp68apurooy#foreign-inward-remittance-certificates-firc) and [BRC](https://www.salt.pe/blog/why-rbi-needs-brc-and-firc-in-your-international-business-cl8lbadip51311kp68apurooy#bank-realization-certificate) Certifications** **GST regulations apply to services like compliance handling and the issuance of Foreign Inward Remittance Certificates (FIRCs) and Bank Realisation Certificates (BRC) in India. However, what makes this scenario unique is the application of the [reverse charge mechanism](https://www.wbcomtax.gov.in/GST/GST_FAQ/Reverse_Charge_Mechanism_under_GST.pdf). Under the reverse charge mechanism, the responsibility for paying GST directly to the Indian government falls upon foreign clients, relieving the service provider's business from this financial obligation.** **Consequently, there is no need to itemise or separately charge GST on invoices when providing these services to foreign clients. This streamlined approach simplifies the billing process for both the service provider and international clients.** **Consider a scenario where a company assists a foreign client with compliance issues. Through the reverse charge mechanism, the foreign client assumes the responsibility for remitting the GST to the Indian government, thus alleviating the service provider's business from this financial obligation.**  **GST on Forex Transactions** ----------------------------- **While we’re on the topic, let’s come to international money transfers in GST for foreign exchange. Foreign currency conversion transactions are subject to GST, and the value of service for the levying of GST in purchases/sales of foreign currency is determined as per the table in the figure below, upon which a GST of 18% is applicable.** ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/value-of-services-and-how-much-gst-should-be-paid-1696934574962-compressed.jpg) **However, these transactions amongst banks or authorised dealers are exempt under GST regulations.** **### Conclusion In conclusion, as a business operating in India, you are typically not required to charge GST on foreign exchange. However, GST applies to services like compliance handling and issuing FIRCs and BRCs in India. The unique aspect is the reverse charge mechanism in such cases, shifting GST payment responsibility to foreign clients. Service providers don't need to itemise or charge GST separately, simplifying billing for both parties.** ** Are you looking for a trusted global finance partner as you consider international expansion for your Indian business? Look no further than Salt Fintech, where we allow you to conduct global business and receive cross-border payments with local accounts. Further, SALT takes over compliance responsibilities for you too, making international money transfer the easiest part of your business. **** [Give us a visit](https://salt.pe/) today to learn more! For additional insights and expert opinions on international business, cross-border payments, and taxation, visit the [Salt blog](https://www.salt.pe/blog). **** FAQs ---- _​_Which foreign transactions are GST applicable to? Here is a list of the categories of international money transfers GST regulations apply to: ** * **Export of goods by payment of IGST or under LUT/Bond** * **Export of services** * **Import of goods, which is governed by the Customs Act, 1962** * **Import of services for business or non-business purpose** * **Sale and purchase of goods without the said goods entering India** * **Supply of goods before clearance for home usage** * **OIDAR or Online Information Database Access and Retrieval services (for business or non-business purpose)** ** What are the requirements for a GST registration for my business? ** **If your annual aggregate turnover to Indian and foreign clients combined is over ₹20 lakhs, you need to get registered under GST regulations. However, aside from this mandate, you can register for GST on your own early on.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Everything you should know about the Global Fintech Fest (GFF) 2023 Author: Ankit Parasher Published: 2023-09-15 Category: Fintech in India Tags: Salt fintech, Global Fintech Fest , gff 2023 , GFF Mumbai, GFF 2023, Global Fintech Fest Mumbai , Nirmala Sitharaman at GFF , startup Salt , GFF, GFF India , Salt co-founder URL: https://salt.pe/blog/null ![Nirmala-Sitharaman-GFF-2023](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-6-1694762251921-compressed.jpg) Insert description In the heart of a bustling metropolis, under the glimmering skyline of a city that never sleeps, the Global Fintech Fest (GFF) 2023 came to life. Three days, 800 speakers, 50,000 delegates, one stage to bring together the entire fintech world.   By showcasing the full spectrum of the fintech ecosystem and its potential for sustainable global advancement, GFF has solidified its pivotal role over the past three years. In its fourth edition this year, the Global Fintech Fest (GFF), a renowned international event, is poised to establish itself as the foremost platform for fintech thought leadership worldwide. As a prominent global conference, GFF annually brings together policymakers, regulators, industry trailblazers, scholars, and influential figures from the fintech sector. This gathering fosters the exchange of ideas, the sharing of insights, and the driving force behind innovation. **Let's explore what GFF 2023 had in store for the fintech world!** Global Fintech Fest, 2023 ------------------------- ![Startp-Salt-At-GFF-2023](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/whatsapp-image-2023-09-08-at-7-1694759534079-compressed.jpeg) Salt's co-founder, Ankit Parasher at the Global Fintech Fest 2023 The 4th edition of Global Fintech Fest (GFF) was a three-day event, from September 5 - 7, 2023 at the Jio World Centre in Mumbai, organised in cooperation with NPCI, PCI, and FCC. The GFF is like a reunion party for the fintech world - fintech leaders come together to foster collaborations and chart the course for the future of the industry.  It is a leading fintech event of the year with strong support from the Ministry of Electronics and IT, Department of Economic Affairs, RBI, IFSCA, and other global and Indian organisations. The inaugural session featured Finance Minister Nirmala Sitharaman as chief guest, while the valedictory session featured Minister Piyush Goyal.  Over 3 days, it [featured](https://globalfintechfest.com/about-gff-2023) 13 tracks, 800+ speakers, 15 reports, 81 papers, 50 workshops and engaged over 50,000 delegates from 125+ countries through 250+ sessions, 250 investors, 500+ exhibitors and 3 hackathons.  What's more?  ------------- The GFF was full of engagement experiences for both global and Indian participants: 1\. [Thought Leadership Content](https://globalfintechfest.com/thought-leadership): Over 15 insightful reports were unveiled through GFF23 partners. 2\. [Investment Pitches](https://globalfintechfest.com/investment-pitches): Various startup pitching rounds catered to early-stage, growth stage, and pre-IPO startups. 3\. [30+ Closed Room Sessions](https://globalfintechfest.com/podcasts): These sessions explored topics like cutting-edge Gen AI and empowering women in fintech, exploring startup innovations. 4\. [Call for Papers](https://globalfintechfest.com/call-for-papers): Recognizing and awarding research work by scholars, academicians, fintech experts, economists, working professionals, and policymakers during the festival. 5\. [Global Fintech Awards](https://awards.globalfintechfest.com/winnerlist): Celebrating fintech success globally, these awards acknowledged outstanding emerging startups, disruptive technologies, unique business models, and innovative founders and entrepreneurs across diverse categories. 6\. [Expos](https://globalfintechfest.com/exhibition): With over 250 exhibitors covering digital banking, payments, blockchain technology, and more, the event also showcased the latest trends and developments in the fintech ecosystem. The Organisers of the GFF  -------------------------- ### 1\. NPCI The National Payments Corporation of India (NPCI) is an organization that manages payment systems in India. It offers products like RuPay cards, IMPS, UPI, BHIM, and more, aiming to make India a digital economy. ### 2\. PCI The Payments Council of India (PCI) is a non-profit association representing India's digital payment sector. It promotes growth, cooperation, and a secure payment environment, working with stakeholders to shape the digital payment landscape. ### 3\. FCC The Fintech Convergence Council (FCC) is a council formed in 2018 with over 100 members from various sectors of the financial industry. Its main goal is to address industry challenges and promote the growth of the fintech sector, advocating for public policies and engaging with policymakers and regulators. GFF’23 Theme ------------ The theme of GFF 2023 focused on the importance of working together to create a financial system that is fair, strong, and environmentally friendly. We want to build a future where everyone can grow and succeed, and where the financial industry can quickly bounce back from unexpected challenges. We believe that by talking, coming up with new ideas, and learning from everyone involved in the financial ecosystem, we can make progress toward this goal.  ### The three parts of the theme included:  1.  **Inclusive**GFF 2023 aims to make financial services available to everyone, regardless of their location or financial status, through global collaboration. 2. **Resilient** GFF 2023 encourages developing innovative solutions that can adapt to changing circumstances and create a financial system that can quickly recover from unexpected events. 3. **Sustainable**  GFF 2023 promotes making the financial industry environmentally friendly and socially responsible through global cooperation. _**The Inaugural Address by Smt. Nirmala Sitharaman**_ ![Nirmala-Sitharaman-GFF-2023](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/screenshot-2023-09-15-at-12-1694759987863-compressed.png) _Source:_ [_Mint_](https://www.livemint.com/money/personal-finance/global-fintech-fest-2023-from-mf-to-demat-account-fm-sitharaman-explains-how-india-created-wealth-in-last-4-financial-yrs-11693903171579.html) Here's a quick summary of all that was mentioned in the inaugural address by Finance Minister Smt. Nirmala Sitharaman: 1\. Fintech's Role: Fintech promotes financial inclusion and surpasses traditional financial activities. 2\. Demat Accounts: Demat accounts in India have grown from 4.1 crore to 10 crore, marking a 2.5-fold increase. 3\. Mutual Funds and SIPs: Record numbers of mutual funds and SIPs contributed to wealth generation, with increased participation from cities beyond the top 30 in India. 4\. RBI's Payments Vision: RBI actively supports global outreach to expand domestic payment systems through collaboration. 5\. IT Return Filings: Maharashtra leads in IT return filings, while other states, including the Northeast, Chhattisgarh, and Jammu & Kashmir, experience significant growth. 6\. Cross-Border Payments and Remittances: Global cross-border payments amount to $20 trillion, with India receiving approximately $100 billion in remittances in 2022. 7\. Report Release and Fintech Exhibition: A report titled 'The Second Wave: Resilient, Inclusive, Exponential Fintechs' was also released during the event. What Else Happened at GFF '23? ------------------------------ The Global Fintech Fest also witnessed some interesting announcements, including 1\. Organisers of the Global Fintech Festival (GFF) announced their goal of facilitating funding exceeding [$10 million](https://timesofindia.indiatimes.com/business/india-business/global-fintech-festival-2023-aims-to-aid-startups-bag-10-million-in-funding/articleshow/102839911.cms?from=mdr) specifically for startups at the upcoming event in the financial capital. This funding target is focused on startups and does not include growth-stage companies, which will engage in discussions with investors.  2\. [Hitachi Payment](https://economictimes.indiatimes.com/wealth/save/upi-atm-launched-forget-debit-card-you-can-withdraw-money-from-atm-using-upi-how-to-use-it/articleshow/103422495.cms?from=mdr) Services and NPCI introduced India's first UPI-ATM, "Hitachi Money Spot UPI ATM," enabling cardless cash withdrawals through QR-based UPI payments for Android and iOS users, eliminating the need for physical cards. 3\. [UIDAI](https://government.economictimes.indiatimes.com/news/digital-india/reimagining-aadhaar-authentication-uidai-showcases-aadhaar-enhancements-powered-by-ai-ml/103448256) showcased AI-powered facial authentication technology for Aadhaar, partnering with Airtel Payments Bank to enhance resident authentication. They highlighted Aadhaar's applications in MGNREGA attendance and streamlined banking customer onboarding. UIDAI's "Reimagine Aadhaar #together" theme focused on seamless identity services through innovation, including plans for a Sandbox and Innovation Lab in Bangalore to foster research and collaboration within the ecosystem. 4\. [SBI](https://economictimes.indiatimes.com/industry/banking/finance/banking/global-fintech-fest-2023-sbi-unveils-nation-first-transit-card/articleshow/103481527.cms) introduced the RuPay NCMC Prepaid Card, called the 'Nation First Transit Card,' for easy digital fare payments and retail transactions. They've also worked on CMC programs with transit operators and are implementing NCMC ticketing for Mumbai Metro Line 3 and Agra Metro. 5\. [RBI](https://www.cnbctv18.com/personal-finance/rbi-governor-announces-5-new-exciting-payment-solutions-at-global-fintech-fest-2023-17733771.htm) Governor Shaktikanta Das unveiled five NPCI-developed payment innovations. These solutions enhance offline payments, promote inclusivity, and boost sustainability in India's digital payments. They encompass a UPI Credit Line, UPI Lite X for offline NFC transfers, QR and NFC tech for payments, multi-language voice-enabled UPI payments, and BiPay Connect for conversational bill payments via voice and collection centres.  ### Conclusion The Global Fintech Fest 2023 was an extraordinary event that showcased the power and potential of the fintech industry on a global scale. With 800 speakers, 50,000 delegates, and a wide range of engaging sessions and activities, it truly lived up to its reputation as a leading international fintech gathering. As we wrap up this overview of GFF 2023, it is essential to emphasise the importance of collaboration, innovation, and sustainability in the fintech world. The theme of the event, focusing on inclusivity, resilience, and sustainability, reminds us of the industry's responsibility to create a financial ecosystem that benefits everyone and can withstand unexpected challenges. With Salt, we aim to contribute to the growing fintech ecosystem by making international payments and compliances as easy as ordering a pizza: hassle-free and quick! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## DGFT e-BRC explained in detail: How to download e-BRC online? Author: Sudhanshu Choudhary Published: 2023-09-04 Category: Trade Tags: How to get brc, Ebrc , E-brc , E-BRC Details , DGFT BRC Online , How to obtain ebrc, BRC full form, BRC details , DGFT for BRC URL: https://salt.pe/blog/brc-explained-in-detail ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-e-brc-explained-in-detail-1694685376717-compressed.jpg) **What is DGFT BRC online? How to complete e-BRC download?** **Is your business involved in exports in India?** If you are, the DGFT BRC or the e-BRC is a vital document for you, since it serves as a proof of payment from the buyer’s end in return for your exports of products or services.  If you are yet unaware of the functions of e-BRC, worry not! This article aims to cover the importance of DGFT BRCs for you, along with answering important questions like ‘what is the e-BRC full form?’, ‘how to obtain the e-BRC certificate?’, and ‘how to accomplish e-BRC download?’! DGFT BRC: e-BRC details and e-BRC full form ------------------------------------------- The [e-BRC](https://salt.pe/blog/how-to-get-brc-from-dgft) full form is Electronic Bank Realisation Certificate. The e-BRC certificate is issued by authorised banks in India under the guidance of the RBI. Its primary purpose is to validate the repatriation of export proceeds to the country and ensure compliance with foreign exchange regulations.  DGFT BRC replaces the traditional paper-based Bank Realisation Certificate (BRC) and embraces a more streamlined and efficient electronic format. How Does DGFT BRC Work: How to Obtain e-BRC on DGFT? ---------------------------------------------------- Here’s the entire working process of obtaining e-BRC on DGFT at a glance: * **You as an exporter should be receiving payment on shipping bills for exports within nine months of the date on the bill.** * **Upon receiving the payment, you would submit the [eFIRC or the Electronic Foreign Inward Remittance Certificate](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) you should have received from your bank and the relevant export documents with your bank.** * **The bank will generate the DGFT BRC in an XML file upon the receipt of export payments, and digitally sign it.** * **The e-BRC is then uploaded on DGFT’s (Directorate General of Foreign Trade) server one or two times everyday at a fixed frequency.** * **The bank would further upload the equivalent amount to the foreign exchange in rupee based upon the exchange rate set by the CBEC or the Central Board of Excise and Customs.** * **Upon the XML file for DGFT BRC being uploaded, the server would inform the bank.** * **Now, you can view and print BRC for yourself from the DGFT website to claim the export incentives you are liable to.**  What are the key features of DGFT BRC ------------------------------------- **As you wonder about e-BRC details and downloading e-BRC certificate, you must know the core attributes of DGFT BRC:** * **Digital Format and Electronic Storage: Initially, DGFT BRCs were put out manually, and you had to submit them as physical documents to your Regional Authority of DGFT. This long and tedious process was done away with when DGFT introduced the online BRC or e-BRC certificate and transfer of information related to the realisation of foreign exchanges from banks to DGFT’s servers directly. Now electronic DGFT BRC is generated and stored digitally, eliminating the need for physical documents. This ensures easy accessibility, reduces paperwork, and enhances data security.** * **Secure and Tamper-proof Nature: Online e-BRC certificates are digitally signed and encrypted, making them tamper-proof and providing assurance of their authenticity and integrity.** * **Integration with the Foreign Exchange Management System (FEMS): DGFT BRC seamlessly integrates with the RBI's Foreign Exchange Management System, enabling efficient monitoring and analysis of foreign exchange transactions.** ** Obtaining e-BRC on DGFT: Check e-BRC Status, and View and Print BRC ------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1693835029472-compressed.png) BRC download: check e-BRC status, and view and print BRC **** Here’s how you should go about a BRC download: ***** Log-in to the [DGFT website](https://www.dgft.gov.in/CP/) pictured above.  * Head over to your dashboard and select ‘Repositories’. * Now you should find a ‘Bills Repositories’ tab, tap the ‘Explore’ option you should see. * Select ‘Bank Realisations (e-BRC)’ from the drop-down that should appear when hovering over ‘Select Bill’. * Now enter the particular timeframe you are looking to check e-BRC status for, and then search for it. * You should now find all DGFT BRCs that have been uploaded. * Select the Bank Realisation Number for the e-BRC status uploaded from that particular bank. You should now be able to find options to view and print BRC. * Click on the ‘print e-BRC’ option to save the DGFT BRC you have been looking for.** ** How to Claim Export Incentives After e-BRC Download: ---------------------------------------------------- So now you are down with e-BRC download, but how do you claim export incentives with your DGFT BRC? ***** Remember to link the shipping bill particular to a DGFT BRC to claim any export incentives. * Submit the shipping bill online on to the ICEGATE or Indian Customs Electronic Data Interchange Gateway (ICEGATE).  * ICEGATE now shares all relevant information about the exports with DGFT. * Once your claim is filed, DGFT will calculate the incentive value for you. They will match up the FoB or Free on Board value of the products you have exported on the shipping bill and the total realised value with the export the DGFT BRC has noted, and release your incentives.** **Do remember to check if your bank’s reported DGFT BRC value reflects the total realised value, and if not, have it corrected.** ** How Indian Fintech Salt Helps Your Business-Related International Transactions? ------------------------------------------------------------------------------- If your business is involved in export, the DGFT BRC is a crucial document since it acts as concrete proof of repatriation of export proceeds, and proves that you are complying with foreign exchange regulations and demonstrating the legitimacy of funds. Further, e-BRC on DGFT facilitates hassle-free access to various export incentives and benefits offered by the government, while also enhancing the transparency and credibility of exporters in the global market. **** Now, the e-BRC on DGFT is just one of the many, many regulatory factors you need to be aware of if your business works globally. International finance can be pretty complicated after all, what with all the compliance measures you need to be aware of, along with currency conversion and exchange rates. However, this is where [SALT Fintech](https://salt.pe/) can be a comprehensive solution for you! ****With SALT Fintech, you have the convenience of enjoying global finance with local accounts! We take care of automated filings for several regulatory bodies including the RBI, FEMA, and MCA, so you can stay stress-free on the compliance aspect. Further, we have a transparent fee structure of 1.75% with no forex markup, and we use live exchange rates from Google while letting you receive international transactions in seven foreign currencies!** ** What’s more, the cross-border transfers you receive are processed immediately to your linked bank account with no holdup! **** [Visit us today](https://salt.pe/) to find out more about the services of SALT Fintech, and take your business to new heights! ****Frequently Asked Questions (FAQs)  ----------------------------------** ** ### Is e-BRC mandatory for all export transactions? **** e-BRC is mandatory for all export transactions as per the notations set by the Reserve Bank of India. It is crucial for exporters to obtain and submit the e-BRC on DGFT to demonstrate compliance with foreign exchange regulations and validate the repatriation of export proceeds. **** ### Can e-BRC be obtained for past export transactions? **** Authorised banks can issue e-BRC for past export transactions upon submission of the required documents and fulfilment of applicable regulations. This allows exporters to rectify any previous gaps in documentation and ensure proper compliance retrospectively with DGFT BRCs. **** ### What is the FIRC? The [FIRC](https://salt.pe/blog/firc-for-freelancers) or Foreign Inward Remittance Certificate acts as a legal proof of inward remittances made to India in foreign currencies. Authorised banks issue it upon uploading the receipt of payment on the EDPMS or Export Data Processing and Monitoring System. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Complete Guide To International Payments: Cross-border business banking Author: Ankit Parasher Published: 2023-08-22 Category: International Payments Meta Description: What are the best methods for international payments, and how to streamline international payments with Salt Fintech? Let’s find out in this article! Tags: receive international payments , Salt fintech, Challenges in SWIFT payments , international money transfers, International payments, payment methods, international transitions, cross-border transfers, exchange rate markup, cross-border transactions URL: https://salt.pe/blog/complete-guide-to-international-payments ![Cross-border-banking](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/a-complete-guide-to-internationa-payments-cross-border-business-banking-1-1693216620766-compressed.jpg) Are you seeking to expand your business globally or tap into international markets? Look no further, as we have the perfect solution for you! In today's interconnected world, international payments are crucial for business growth, but they can be quite complex for the uninitiated. But don’t worry! In this article, we will explore the best methods for international payments, and how [Salt Fintech](https://www.salt.pe/) (a neo-banking solution) simplifies the process of cross-border transfers for you. So, let's dive in and discover how you can unlock the true potential of global commerce! Best International Payment Methods ---------------------------------- The demand for dependable international payment methods is rising, benefiting both businesses and individuals engaged in online transactions. Case in point, as per Statista, the share of goods sold in cross-border e-commerce trade increased from [15% in 2016 to 22% in 2022](https://www.statista.com/statistics/867991/cross-border-e-commerce-share-world/).  However, selecting the ideal international payment method can be challenging. To assist you in making a decision, here are various cross-border money transfer options you can choose from for all your business-related transactions. ### Payment Gateways Payment gateways serve as intermediaries between buyers and sellers, facilitating online payments. These services can be integrated into websites or online stores, allowing customers to purchase conveniently. Payment gateways typically charge transaction fees and may impose additional charges for international payments. They are particularly beneficial for businesses with online stores, digital invoicing systems, or websites that cater to a diverse consumer base. However, you need to consider the disadvantages of payment gateways like PayPal before you choose them for cross-border transactions. Some of these considerations include a monthly fixed fee, a percentage fee based on the transaction amount, a fixed fee per individual transaction, and also the merchant fee by the user's bank or gateway bank for credit purchases, which can add up over time.  ### SWIFT Payments [SWIFT](https://salt.pe/blog/how-does-swift-payment-works) (Society for Worldwide Interbank Financial Telecommunication) payments are a traditional transfer method between banks globally. This system enables direct transfers from one bank account to another, typically through the bank's online banking platform or at a local branch. While SWIFT payments are cost-effective, they are not the fastest option available for international transactions. Its drawbacks include delayed payments, uncertain fees, and a lack of transparency. ### Debit Cards Debit cards, often associated with Visa, Mastercard, or other processing companies, provide a straightforward means of purchasing using funds directly from a bank account. Whether used for online transactions or at physical point-of-sale terminals, debit cards may require a PIN and must have sufficient funds in the linked bank account. However, when used for international payments, debit cards can incur transaction fees, currency conversion fees, and exchange rate markups. ### Credit Cards Credit cards, such as Visa, Mastercard, and American Express, offer users a line of credit that must be repaid, often with interest. Credit cards are widely accepted worldwide and provide a seamless payment experience without the need for a bank account.  However, the convenience of credit card payments for international transactions often comes with additional, sometimes hidden, fees and markups on top of the interest rate. ### Mobile Money Apps Mobile money apps provide a convenient way to send and receive money securely, even without a traditional bank account or card. The money is transferred to a secure electronic account linked to your mobile phone number, accessible through an app. You can make payments from anywhere, anytime, with just a few clicks. These apps are user-friendly and often offer messaging trails to track transactions effectively. However, there can be limitations between mobile money networks, resource constraints, and even restrictions on handling significant sums of money. If you are with us so far, you would have realised by now that none of these solutions can offer you a foolproof way to conduct cross-border transfers. However, this is where Salt Fintech comes in. At [Salt](https://www.salt.pe/), we have developed a convenient and easy international payments method to solve the drawbacks of the aforementioned modes of international transactions. Let’s see how! Streamlining International Payments with [Salt](https://www.salt.pe/)! ---------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-business-banking-at-salt-pe-1-1693216685033-compressed.jpg) [Salt Fintech](https://www.salt.pe/) is an Indian startup, and our goal is to provide international money transfer solutions tailored for all Indian businesses. Our comprehensive suite of services simplifies the complexities involved in cross-border transactions.  SALT's offerings include automated filings for regulatory bodies such as [RBI, MCA, and FEMA](https://www.salt.pe/table), ensuring seamless compliance. We further assist with pre-funding and post-funding compliance management, expedite FIRC and FCGPRS form filings, and provide support in generating valuation reports and operating a capital bank account.  With a transparent fee structure of [1.75%](https://www.salt.pe/remittance) and no forex markup, SALT Fintech ensures cost-effective transfers using live exchange rates from Google. With us, you benefit from free FIRC, unblocked funds, zero chargebacks, and dedicated relationship managers, making SALT an ideal partner for hassle-free international money transfers. What’s more, with SALT, you get to receive international payments in over 6 international currencies, and the money is immediately processed upon receiving to your bank account with no holdup! Our services have facilitated a substantial number of secure transactions for our clients: streamlining international payments, simplifying compliance, and enabling Indian businesses to expand globally with confidence. We can be just the ideal partner for all your cross-border transfers too!  [Visit us today](https://salt.pe/) and unlock convenient global banking from the comfort of your home! FAQs ---- ### Why are international payments important for businesses? International money transfers are vital for businesses as they enable expansion into new markets, broaden the customer base, and enhance revenue prospects. By accepting payments from customers worldwide, businesses can tap into global opportunities and establish their presence across different countries, driving growth and unlocking the full potential of global marketplaces. ### What are the common challenges associated with international payments?  International payments come with challenges such as handling various currencies, complying with complex regulations, ensuring security, and managing efficient payment processing across various methods. Businesses must navigate these obstacles to avail seamless cross-border transactions, mitigate risks, and maintain compliance, enabling them to engage in international payments successfully. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Cross-Border Payments Are Being Redefined For Businesses Author: Udita Pal Published: 2023-08-18 Category: International Payments Meta Title: How Cross-Border Payments Are Being Redefined For Businesses Meta Description: As cross-border payments grow more and more integral in international trades, they are being revolutionised with new digital innovations. Tags: international transaction, indian startups, startups, MSMEs, Cross-border payments, start up URL: https://salt.pe/blog/how-cross-border-payments-are-being-redefined-for-businesses ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-cross-border-payments-are-being-redefined-for-businesses-1692693225780-compressed.jpg) Global transactions have increased with the rise in international trade, and the world is returning to normal after the pandemic. The year 2020 suggested a global hit on international trade. But according to the current scenario, cross-border payments are again increasing at [11%](https://www.statista.com/statistics/1296779/global-cross-border-payment-flows-market-type/) in emerging markets. Some experts attribute this increase in international transactions to borderless payments, cross-border payments in B2C, and internet-based businesses.  This increase has also raised the demand for payment providers to improve their services. This means faster international transactions, lower costs, safety and transparency, and more to be given to the users. Multiple digital innovations are taking place in this domain to ensure all these.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-cp-1692699322372-compressed.png) **[Source](https://www.paymentscardsandmobile.com/three-trends-redefining-the-global-cross-border-payments-market/) / The CAGR of cross border payments sector wise** Application Programming Interfaces Promoting Backend Treasury  -------------------------------------------------------------- The global market is filling up with startups and SMEs. Every company or business has a treasury managed by the finance department. Startups and SMEs also have such departments to manage their funds. For international trade, they require foreign exchange rates to provide quotations to the clients and also understand how their finances are impacted.  Using multiple payments-based application programming interfaces ([APIs](https://www.primadollar.com/role-of-api-in-trade-finance/)), such businesses can access real-time foreign exchange visibility. Financial analysts and accountants can use this feature to check the best way to transfer payments from one account to another internationally. Also, they get to understand and accelerate the reconciliation due to having access to foreign exchange rates in real time. Treasurers in the company also lock in the FX rates for a predetermined time to price the company's services in the best currency to manage the funds.  Improvement in Visibility through Technology -------------------------------------------- With the world moving forward in technology, multiple options have come up to enhance international transaction visibility. Apart from just the conventional wire transfer, options like SWIFT GPI, virtual accounts, API connectivity, etc., help improve the transaction experience and manage beneficiaries.  Businesses, startups, and SMEs are partnering with banking institutions to leverage local solutions instead of wire transfers for cross-border payments. New banking solutions like the neo banks are also helpful in improving international remittances. Options like the [Salt neo bank](https://www.salt.pe/) provide international transactions through digital accounts, and that too at an optimised speed. API connectivity helps with managing the visibility of the payments. The software can track the payment and receive real-time updates if any issue arises. Overall, new technologies help in improving cross-border payments through digital innovations.  Centralised Account Management  ------------------------------- Earlier, businesses had to set up their local accounts with banking partners in every place they wanted to do business. With the introduction of virtual accounts, the need to open up local accounts is eliminated. This has helped startups and SMEs the most since they do not have to incur the extra costs of managing multiple accounts.  Virtual accounts are like normal bank accounts but with existence only on digital platforms. A company can open up virtual accounts from one central account to manage payments from multiple sources. This way, the treasurer and accountants do not have to check for multiple account statements for remittances. This also helps startups, SMEs and corporations easily transfer funds from one account to another in different currencies. Through this method of managing one central account and multiple virtual accounts, companies maximise the liquidity of funds and reduce exposure.  The Blockchain Technology  -------------------------- Since blockchain technology works on distributed ledgers and is updated through the validation of blocks, real-time payments are easier to manage using them. International transactions will not take days to clear as the nodes on a blockchain will actively work to validate the transactions in the least time.  Multiple digital innovations are going on to integrate blockchain technology with international transactions. Moreover, tracking a transaction on the blockchain is easy and the most secure form of transferring information. Blockchain technology will make clearing cross-border payments faster and more efficient. Also, globalised partnerships between corporate and distributed ledger providers will help offer ways to make cross-border payments in real time. This can be done through smart contracts and managing the transactions one-on-one with the partners instead of the end recipients. This means the businesses can create a contract to pay the blockchain partner, who will release funds to the recipient. In the meantime, businesses pay the partner's fees and the required amount to the payment partner.  Learn about the [cross-border payments landscape in India](https://www.salt.pe/blog/the-cross-border-payments-landscape-in-india) in detail. ​ ### Conclusion  You have now learnt more about cross-border payments and how digital innovations are helping to revolutionise them. Numerous other technical advancements are also taking place to help with international finances. The thing to focus on the most is how corporate, startups, and SMEs are all trying to get more transparent, faster and secure cross-border payments. Trusting digital innovations and digital banks like Salt can be the ace of trade for businesses and help them get better remittances.  Neo banks like [Salt](https://salt.pe/) provide hassle-free cross-border payments with a lot of benefits. Such a platform provides easy access to low-cost and secure international transactions. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Debt Financing vs Equity Financing: Startup funding Author: Sudhanshu Choudhary Published: 2023-08-16 Category: startup finance Meta Description: Looking for business funding? Discover the difference between equity and debt financing in this comprehensive blog post! Tags: small business finances, startup funding, Debt financing, Equity vs debt finance , Equity finance, Equity financing, Equity and debt financing , Equity vs debt financing , Debt finance, startup finance, business funding , business finance URL: https://salt.pe/blog/null ​ ![Debt-finance-equity-finance-which-is-better](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-the-difference-between-equity-financing-vs-debt-financing-1692184284417-compressed.jpg) When it comes to financing your business, two primary options often come into play: **equity financing and debt financing**. These two methods can be crucial in determining the financial future of your business, but they differ significantly in terms of structure, risk, and potential benefits.  Debt financing vs. equity financing is a confusion that occurs quite often in the minds of upcoming investors. In this blog post, we'll dive into the world of equity financing and debt financing, exploring their differences, advantages, and considerations. So, let's get started! Understanding Equity Financing ------------------------------ Before we get into the differences of equity and debt financing, let’s understand the definitions. What is Equity Financing? ------------------------- Equity financing is a method of increasing capital by selling ownership shares of your business to investors in exchange for funds. These investors become shareholders, having a stake in the company's ownership and potential future profits. In simple terms, equity financing allows you to obtain funds without incurring debt or having to repay a loan. The Advantages of Equity Financing ---------------------------------- The benefits of equity financing include: #### 1\. Shared Risk  With equity financing, the risk is shared among the investors. If your business faces difficulties or fails, the burden of losses does not solely fall on your shoulders. Investors bear the risk proportionate to their ownership stake. #### 2\. Access to Expertise Equity investors often bring more than just capital to the table. They can provide valuable guidance, industry knowledge, and strategic input, immensely benefiting your business's growth and success. #### 3\. No Repayment Obligations  Unlike debt financing, equity financing does not require periodic repayments or interest payments. This can ease your cash flow and give you more flexibility to reinvest profits into the business. #### 4\. Potential for Greater Returns  If your business performs well, equity financing offers the potential for substantial returns. As the business grows and becomes more valuable, the value of the investors' shares increases, allowing them to benefit from capital appreciation. Considerations for Equity Financing ----------------------------------- However, when you decide between debt financing vs. equity financing, here are some factors you need to consider: #### 1\. Loss of Control  When you bring equity investors on board, you relinquish some of your ownership and decision-making authority. Depending on the extent of their ownership, investors may have a say in important business decisions, potentially impacting your autonomy. #### 2\. Dilution of Ownership  By issuing shares to investors, your ownership stake gets diluted. This means that you will have a smaller percentage of ownership in the company. If maintaining full control is a priority for you, there may be more suitable options than equity financing. Understanding Debt Financing ---------------------------- Getting to the second component of our debt financing vs. equity financing debate, what is debt financing all about? ### What is Debt Financing? Debt financing involves borrowing funds from lenders, such as banks, financial institutions, or private lenders, with the commitment to repay the borrowed amount over a specified period, along with interest. In this case, the lender does not gain ownership of your business but instead becomes a creditor. The Advantages of Debt Financing -------------------------------- The benefits of this one are: #### 1\. Retain Ownership and Control  Unlike equity financing, debt financing allows you to retain full ownership and control of your business. The lenders have no say in your company's management or decision-making processes. #### 2\. Predictable Repayment Structure  Debt financing involves regular repayments over a predetermined period, allowing you to plan your cash flow and budget accordingly. The repayment terms, including interest rates and schedule, are typically agreed upon in advance. #### 3\. Tax Benefits  In many cases, the interest paid on business loans is tax-deductible, reducing your overall tax liability and providing a potential financial advantage. Considerations for Debt Financing --------------------------------- When you decide between debt financing vs. equity financing, here are some more considerations to take into account: #### 1\. Repayment Obligations  Debt financing requires timely repayment of both the principal amount and interest. Failure to make payments can result in penalties, damaged credit, and even legal consequences. #### 2\. Interest Payments  Unlike equity financing, debt financing involves interest payments, which can increase the overall cost of borrowing. It's important to carefully consider the interest rates lenders offer and evaluate the impact on your profitability. #### 3\. Collateral or Personal Guarantees  Depending on the lender's requirements and your creditworthiness, debt financing may require collateral or personal guarantees. This means that you could risk losing assets or be personally liable for the loan in the event of default. Choosing the Right Option for Your Business ------------------------------------------- Out of debt financing vs. equity financing, you would ultimately choose either based upon your requirements and business strategy. Here are some things to keep in mind while making the choice: ### Evaluating Your Needs and Goals The choice between equity financing and debt financing depends on several factors, including your business's stage, industry, growth potential, and personal preferences. There is a considerable difference between equity and debt financing, which can affect your investments. Consider the following questions when making your decision: 1\. How much control are you willing to relinquish? 2\. Are you seeking long-term partners and expertise? 3\. Can you comfortably manage regular loan repayments? 4\. What is your risk tolerance? 5\. What are your growth objectives? ### Finding the Middle Ground Sometimes, a combination of equity and debt financing can be viable. By inspecting the underlying difference between equity and debt financing, This hybrid approach allows you to access capital from various sources, combining the advantages of both methods while mitigating their downsides. It's essential to assess your business's specific needs and consult with financial advisors to determine the most appropriate financing mix for your unique situation. Difference between Equity and Debt Financing  --------------------------------------------- ![Debt-finance-equity-finance-comparison](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-the-difference-between-equity-financing-vs-debt-financing-table-1692184198237-compressed.jpg) Conclusion ---------- As we saw, the difference between equity and debt financing are many, and each has their shares of pros and cons. Ultimately, the decision depends on your business's circumstances and goals. Carefully evaluate the advantages and considerations of each method, and remember to seek professional guidance when making financial decisions.  Salt Fintech, with our range of services tailored to B2B clients, offers competitive rates for inward remittances and compliance handling, making it an attractive choice for businesses seeking cost-effective solutions. By partnering with Salt, you can navigate the complexities of international transactions while minimising fees and optimising your business’s global operations. Visit [our website](https://salt.pe/) today to find out more! Frequently Asked Questions (FAQs) --------------------------------- ### 1\. Which one should startups and early-stage companies pick: equity or debt financing? Equity financing might be better for startups since it brings capital without the burden of immediate repayment, which allows startups and early-stage companies to focus on growth and development. Meanwhile, established companies may choose to opt for debt financing since their creditworthiness would be more attractive to lenders.  ### 2\. Why should I choose equity financing over debt financing? Depending on your organisational cash flow, equity financing might be a better option over borrowing money. One key benefit is that equity financing does not require upfront payment. Instead, it involves shareholders investing in the company with the expectation of receiving long-term dividends. This eliminates the need for the company to repay borrowed funds, allowing them to obtain capital without the burden of repayment. Plus, equity financing does not have a fixed cost, and equity financing allows the company to share its profits with investors without the obligation of interest payments. ### 3\. Can I switch between equity and debt financing? Switching between equity and debt financing at different stages of your business is possible. However, it's important to carefully consider the implications and consult with financial experts to make informed decisions. Further, the decision to switch between the two options often depends on factors such as the company's financial health, risk appetite, cost of capital, and growth plans. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What are Sort Codes & How to Find Bank Sort Codes? Author: Sudhanshu Choudhary Published: 2023-08-09 Category: sort code Meta Title: What are Sort Codes, and How to Find Bank Sort Codes? Meta Description: What are bank sort codes? Are they useful in international transactions? How about sort code vs. SWIFT code? Read on for the answers to your questions! Tags: Sort Code vs SWIFT code, Sort Code checker uk, sort code example, what are bank sort codes, sort code bank, SORT Codes, SORT Code and Account Number, how to find bank sort code, sort code vs swiftcode, international transactions, what is a sort code in banking, what is a sort code in a card URL: https://salt.pe/blog/how-to-find-sort-code ![How-to-find-sort-code](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-cover-what-is-a-sort-code-in-banking-1691578884842-compressed.jpg) How To Find SORT Code? Once you start to understand the world of finance and banking, there are many floating pieces of jargon you would need to find the meaning for to navigate this sector. Sort codes might be one of those.   **What are bank sort codes, and how to find bank sort codes?**  All those questions of yours are answered in our comprehensive article! Contents * [](#) * [What is a Sort Code in Banking?](#what-is-a-sort-code-in-banking) * [What are Bank Sort Codes: The History of  Sort Codes](#what-are-bank-sort-codes-the-history-of-sort-codes) * [What is a Sort Code in Banking:](#what-is-a-sort-code-in-banking)  * [What is a Sort Code in Banking: How Does it Work?](#what-is-a-sort-code-in-banking-how-does-it-work) * [What are Bank Sort Codes: Where Can You Find Your Sort Codes?](#what-are-bank-sort-codes-where-can-you-find-your-sort-codes) What is a Sort Code in Banking? ------------------------------- For banking in the United Kingdom and Ireland, sort codes are domestic bank codes: a six-digit number assigned to each bank to route domestic fund transfers. Sort codes provide a standardised identifier for banks and branches, ensuring transactions are directed to their intended destinations.  What are Bank Sort Codes: The History of  Sort Codes ---------------------------------------------------- In the latter parts of the twentieth century, the bank sort codes emerged when the usage of bank cheques was touching an all-time high. Sort codes were brought in as a way to pinpoint the authentic origins of the cheques, so every party in the wiring process knew where the funds were coming from, and where they were headed.  What is a Sort Code in Banking:  -------------------------------- ![SORT-CODE-EXAMPLE](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-cover-what-is-a-sort-code-in-banking-example-1691575810510-compressed.jpg) SORT Code Example As pictured above, a sort code example would be 112233, where the first pair of digits is the bank code, and the other two pairs represent the city and the branch code for the bank.  What is a Sort Code in Banking: How Does it Work? ------------------------------------------------- Here’s a detailed overview of the functions of the bank sort codes: * **Bank and Branch Identification: Of course, bank sort codes verify the authenticity of the sender and receiver in transactions.**  * **Account Routing: The sort codes, along with the recipient's account number, guides the transaction to the correct bank and branch. Accuracy is crucial for successful transactions, as incorrect or mismatched sort codes can cause delays or send the transactions to the wrong account.** What are Bank Sort Codes: Where Can You Find Your Sort Codes? ------------------------------------------------------------- **Here are a few ways you can check for your bank sort codes:** **### Check Your Bank Statement:  If you have paper statements, look for a section that lists your account details. Your sort codes should be clearly printed there. For electronic statements, log in to your bank’s website and access your statement to find the banking sort codes.** ** ### Banking Card:  Check your debit or credit card. Some cards display the banks’ general sort codes on the front or back of the card. However, keep in mind that the sort code on your card might be the generic code for the bank and not specific to your branch. **** ### Contact Your Bank:  If you cannot find your bank sort code through the methods above, consider contacting your bank's customer service. **** ### Bank's Website:  Some banks provide sort codes on their official websites. You can try searching for "Sort Codes lookup" or a similar query on your bank's website to find the required information. **** ### Search Engines:  In some cases, you might find your bank’s sort codes through a simple online search. Be cautious and make sure you are on a legitimate and secure website when searching for sensitive banking information, however.  Sort Code vs. SWIFT Code: What is the Difference? ------------------------------------------------- Is sort code same as SWIFT code? No, it isn’t, but it may get confusing for you as a user to differentiate when it comes to sort code vs. [SWIFT code](https://salt.pe/blog/swift-code-explained). How are the two different, then? **** ### Sort code vs. SWIFT Code: Sort Codes  SWIFT Codes Location Used in the United Kingdom and Ireland. Used internationally for cross-border transactions. Purpose A six-digit number used to identify individual banks and branches within those banks. Sort codes are essential for routing domestic payments, direct debits, and standing orders within the UK and Ireland. A unique code used to identify financial institutions worldwide. It is especially important for international money transfers and ensures that funds reach the correct bank when sent across borders. Format Usually displayed in a three-part format: XX-XX-XX, with each "X" being a digit from 0 to 9. The paired digits specify bank code, city, and branch codes respectively.  Displayed as a mix of numbers and letters, unlike sort codes, in the sort code vs. SWIFT code debate. A SWIFT code is eight to eleven characters long and denotes the title, country, location and branch of a financial institution. A SWIFT code goes like this: AAAA-BB-CC-123. Conclusion ---------- We hope this post has been helpful if you were looking for an answer to ‘what are banking SORT codes?’, or ‘how to find bank sort code?’. Always remember to input the correct sort codes for smooth and fast domestic transactions in the UK and Ireland! For further informative articles on the world of finance, do not hesitate to check out the [SALT Fintech blog](https://www.salt.pe/blog)! ****If you are looking for a global banking solution as a business operating in India, [Salt Fintech](https://salt.pe/) can be an easy solution for your business to receive payments from international clients, that too in seven foreign currencies! We create local accounts for your business and process your cross-border transfers instantly, making for a smooth global banking experience for you!** ** Visit [our website](https://salt.pe/) today to find out more! Frequently Asked Questions -------------------------- ### 1\. How to check if I have entered the correct sort codes? ****You can verify your sort codes from your bank’s website, or you can make use of a sort code checker available online: you may find many banks officially making those available. Further, if you are inputting the sort code online before a transfer, the page would verify the sort codes entered for you and notify you in case it is wrong.** ** ### 2\. Differences between sort code and account numbers? **** While your account number identifies your particular bank account for domestic and international transactions, your sort codes identify the bank branches you have accounts in in the UK and Ireland. We hope this tells about the distinctions of sort code and account numbers! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Comprehensive Guide to Invoicing International Clients In India Author: Ankit Parasher Published: 2023-07-19 Category: International Business Meta Title: A Comprehensive Guide to Invoicing International Clients In India Meta Description: Wondering how to invoice international clients from India? Here's all the necessary information for invoicing international clients to you! Tags: Create invoice on excel , invoice international clients , international business invoice, how to create invoice, foreign client, Invoice for foreign clients , create invoice URL: https://salt.pe/blog/invoice-international-clients-in-india ![Invoice-International-Clients](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-invoice-international-clients-1690274268803-compressed.jpg) How To Invoice International Clients? If you have considered going global with your small business, startup, or even as a freelancer, international invoice requirements might have crossed your mind. So, how to invoice international clients from India? International invoicing is the process of issuing invoices for goods or services to clients or customers in different countries, ensuring compliance with specific requirements and regulations. It involves currency conversion, language localisation, tax compliance, and adherence to international business practices. Businesses must gather accurate client information, such as legal business names, addresses, and tax identification numbers, and determine the appropriate currency for invoicing. They also need to provide shipping and handling information, specify payment methods, and comply with tax and legal requirements specific to the client's country. If you are wondering how to invoice international clients from India, we have got a checklist of everything you need to remember about international invoice requirements! How to Invoice International Clients from India? ------------------------------------------------ To ensure smooth transactions and adherence to global business norms, invoicing international clients takes careful consideration. Utilise this simple how-to to efficiently invoice your clients abroad: * ### Use an Invoice Template **As a freelancer, a small business, or a startup, the most efficient way to go about invoicing international clients is to use a template or an [invoice generator](https://www.salt.pe/blog/invoice-generator-tools-for-freelancers) available online. This would ensure that you are not missing out on any of the essentials and are presenting your invoice in just the correct, professional way.**   **In case you want to generate international invoices yourself, read on to find out the considerations.**  * ### Invoicing International Clients Yourself **Here’s how to invoice international clients from India yourself:** *** Collect accurate and complete details from your international client, including their legal business name, address, contact information, and any country-specific tax identification numbers.  * Do remember to determine the currency to invoice your international client- invoicing in foreign currency in India may involve denominating in their local currency or widely accepted currencies such as the US Dollar or euro. Clearly specify the chosen currency on the invoice. * Invoicing international clients includes providing all necessary information on the invoice for both parties to understand the transaction, so remember to include your business name, address, contact details, and taxpayer identification number.  * Further, assign a unique invoice number and include the invoice date and payment due date. * Clearly outline the products or services provided, specifying quantity, unit price, and any applicable taxes or discounts. If customs require specific codes or descriptions, include them as well. * If applicable, clearly state shipping and handling costs separately or include them in the total amount. Specify the shipping method, expected delivery time, and provide any relevant tracking or customs information. * As part of invoicing international clients, clearly explain the payment process, including the payment due date, acceptable methods, and any additional information required for international transactions, such as your bank's [SWIFT code](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1#:~:text=No%2C%20IBAN%20and%20the%20SWIFT,location%20of%20a%20bank%20globally.) or [IBAN number](https://salt.pe/blog/how-to-find-iban-number-international-bank-account-number-clgc8sah9475933up20y9qt8w4). * Accurately calculate the total amount due and present it clearly on the invoice. Ensure that any taxes, fees, or discounts are properly itemised. If needed, provide a breakdown of the total, including subtotals for different products or services. * If your client's primary language differs from yours, consider providing an invoice in their language or including a translated version alongside the original.** ** Once you’re done creating the invoice, transmit the invoice to your international client using a secure and reliable method. While email is commonly used, be mindful of any country-specific preferences or restrictions that may require alternative delivery methods. **** Monitor the payment status closely and follow up with your client when necessary. Maintain a record of all communication related to the invoice, including payment confirmations. **** Key Considerations for Invoicing International Clients in India --------------------------------------------------------------- To answer the question of ‘how to invoice international clients from India?’, here are some specific considerations to keep in mind: **** * ### Payment Methods: Now the big question: which payment method is the most suitable for international transactions? The payment method you end up choosing can make a sizable difference in terms of efficiency and speed of your invoice payment. **** Here are some options you can try out: ***** #### Wire Transfer:  Now, this is the most standard method for cross-border transfers that you can use. You simply need to provide your international clients with your banking details with the invoice, and they initiate a [wire transfer](https://salt.pe/blog/what-is-a-wire-transfer) to pay you.** **However, this is not an effective method if speed is your requirement, and small, frequent payments are not exactly viable since the intermediary fees and foreign exchange rates can eat into your compensation.**  ** * #### Credit Cards: ****Credit cards may be a quicker way for your customers to pay you, but they will be charged a hefty foreign exchange fee in proportion to the amount mentioned in the invoice (anywhere between 1% to 3% usually). This may result in you losing business in case your customers find a cheaper, local option.** ** * #### Foreign Bank Accounts **** You may consider opening several foreign bank accounts to give a domestic option while invoicing international clients. However, this process won’t be very efficient for you, because ****1. You need to invest a lot of time in managing these different foreign bank accounts, and  2. You would still need to initiate cross-border transfers to get your income to your Indian bank account.** ** * #### Transact with a Neobank like SALT Fintech **** At [SALT](https://salt.pe/), we help you earn in seven different foreign currencies, and your income is processed to your bank account immediately after it’s received into your local SALT account. Further, we provide currency conversion at the lowest FX rate of 1.75% of the transaction, and you further benefit from free FIRC, unblocked funds, zero chargebacks, and dedicated relationship managers.  Unlike payment gateways and other online international payment services you can utilise, we charge no subscription/ annual fee, there are no hidden charges, and no markup fees either, making [SALT](https://www.salt.pe/remittance) just the right partner when it comes to invoicing international clients. ***** ### International Taxes You must account for international sales taxes when invoicing international clients. This includes noting variables like whether your business is transacting with individual consumers or other businesses, the market of your customers, and more.** *** ### GST Compliance When you are figuring out how to invoice international clients from India, GST compliance is crucial, as it applies to most businesses. To ensure compliance, invoices must include  * GST registration,  * accurate tax calculations,  * and GSTIN (GST Identification Number).** ** * ### Further Considerations Do familiarise yourself with the [reverse charge mechanism](https://www.wbcomtax.gov.in/GST/GST_FAQ/Reverse_Charge_Mechanism_under_GST.pdf) (RCM) and comply with reporting and payment requirements. Accurately calculate the Indian Rupee (INR) equivalent for foreign currency invoicing, using prevailing exchange rates and mentioning the rate on the invoice. **** Export documentation is essential for international clients, and consulting with authorities or customs is necessary to ensure compliance. Withholding tax obligations must be clearly communicated to clients and provided with required documentation. Payment methods should be convenient for international clients, such as international wire transfers or online payment platforms. **** Language and cultural sensitivity should be considered when preparing invoices, and translations or internationally recognized financial terms should be used to avoid confusion. Familiarise yourself with international laws and regulations, including anti-money laundering (AML) and Know Your Customer (KYC) requirements. **** Finally, maintain accurate records of invoices, payments, and correspondence with international clients for financial reporting, audits, and tracking transactions. Seeking professional advice from a qualified accountant or legal professional can provide specific guidance based on your business and the countries involved. ** ![Invoice-International-Clients](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-should-a-invoice-to-international-clients-include-1690274415434-compressed.jpg) Invoicing International Clients From India ### Conclusion ---------- We do hope this post tells you all you need to know about ‘how to invoice international clients from India?’, and helps you in understanding the international invoice requirements! Are you a business owner in India searching for a convenient global banking solution? [SALT](https://www.salt.pe/) Fintech is here to simplify global banking for Indian businesses, offering easy management of your finances through local accounts. Our goal is to provide a streamlined banking experience that saves you time and energy. Explore the Salt Fintech [website](https://www.salt.pe/) now to learn more about our services and discover how we can assist you in reaching your financial goals! Frequently Asked Questions -------------------------- ### How should I communicate and follow up with international clients regarding invoices? Maintain open communication with your international clients throughout the invoicing process. Promptly follow up on any outstanding invoices or payment delays, addressing any questions or concerns they may have. ### How to receive payment from international clients? Salt Fintech can be an easy solution for your business to receive payments from international clients, that too in over six foreign currencies! We create local accounts for your business and process your cross-border transfers instantly, making for a smooth global banking experience for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Salt or Wise (TransferWise)?: Which International Payment Processor Is Better? Author: Ankit Parasher Published: 2023-07-03 Category: International Payments Meta Title: Salt or Wise (TransferWise)?: Which International Payment Processor Is Better? Meta Description: What are the differences between Salt Fintech and Wise, and which one should you pick for your business-related cross border transfers? Let’s find out! Tags: Foreign Inward Remittance, receive international payments , Salt fintech, Transferwise , Wise , Wise alternative, Transferwise alternative , cross border transfers , international transactions URL: https://salt.pe/blog/wise-alternative ![Wise-Alternative-Comparison](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wise-vs-salt-which-one-should-i-opt-for-1688710255236-compressed.jpg) Introduction  At Salt, we understand how complicated managing international payments can be for a business owner. With so many options available for cross border transfers, comparing and choosing the service that best suits your needs is important.  In today's interconnected world, the need for efficient and cost-effective cross border transfers has become increased by leaps and bounds. With the rise of globalisation, businesses and individuals are seeking reliable platforms to facilitate inward remittance and simplify international payments.  In this blog post, we will compare Salt and Wise, two fintech services that can help you with business-related cross border transfers, so you can pick whichever suits your requirements best! ### Salt Or Wise: Which Is The Wiser Choice For Your International Payments? Before we dive into the comparison, let's briefly discuss what Wise is. Wise is an online platform that allows individuals and businesses to send and receive money across borders. It was founded in 2010 to make international money transfers cheaper, faster, and more transparent. Wise uses a peer-to-peer model that matches users who want to convert their money with those with the opposite currency needs. This approach helps eliminate traditional banking fees and provides competitive exchange rates. Salt vs. Wise: a comprehensive comparison  ------------------------------------------ Now, without further ado, let’s delve into the comparison of Salt and Wise. ![Transferwise-Alternative-Comparison](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wise-vs-salt-1-1688711833328-compressed.jpg) **Fee Structure: Salt vs. Wise**  --------------------------------- One of the key factors to consider when comparing Salt Fintech and Wise is their conversion fees. Both platforms offer competitive rates, but the fee structure varies.  ### Salt Fintech: No Markup, Flat Rate At Salt, our approach to cross border transfers is simple and transparent. We do not charge any markup over the conversion rate. Additionally, Salt has a flat rate of 1.75%, inclusive of GST and regardless of the currency pair. This simplicity can be a significant advantage, especially for those who value transparency and want to avoid any surprises regarding fees. This level of transparency can save you both time and money, especially when dealing with complex international money transfers. Furthermore, Salt goes the extra mile by providing invoices for the fees deducted if requested by the client. This level of transparency can be invaluable for businesses that require detailed financial records and want to maintain a clear overview of their expenses. Wise: Variable Conversion Fees  ------------------------------- On the other hand, Wise takes a different approach to conversion fees. Their fees vary depending on the currency pair involved. While this can be advantageous for some users, it also means that you need to be mindful of the fees for specific currency conversions. This variability may complicate your financial calculations if you frequently deal with various currencies. eFIRC: Salt vs. Wise -------------------- ### Salt: Free eFIRC Salt provides eFIRC ([Electronic Foreign Inward Remittance Certificate](https://salt.pe/blog/foreign-inward-remittance-certificate-explained)) at no extra charge. This certificate is required for Indian businesses wherever inward remittances are involved in their business processes, and Salt users can save on this additional fee, making it a more cost-effective choice.  ### Wise: eFIRC Fee Deducted On the other hand, Wise charges a fee for eFIRC issuance. This additional cost should be considered when comparing the total expenses associated with your cross border transfers.  Settlement Process: Salt vs. Wise  ---------------------------------- ### Salt: Automated INR Settlement  Salt offers an automated process for converting and settling cross border transfers in Indian Rupees (INR). This automation can streamline your workflow and save you time, as you don't have to initiate the settlement process manually. If you frequently deal with INR transactions, this feature can provide a significant advantage in terms of convenience and efficiency.  Wise: No Automated Settlement  ------------------------------ On the other hand, Wise does not specifically mention an automated settlement process for INR. While they provide a user-friendly platform for currency conversions, the lack of explicit automation for INR settlements may require manual intervention and potentially add an extra step to your workflow. Conclusion  ----------- At Salt Fintech, we aim to make all cross border transfers and inward remittances smoother for your business. Our support for foreign currencies from over six countries allows us to accomplish this ease for you, and our virtual local accounts ensure that you get your international payments in INR as soon as they are received.  While Wise may be the better choice for your business’s international money transfers in specific occasion, Salt Fintech's advantages in transparency, additional services, and convenience are definitely worth considering! Frequently Asked Questions (FAQs)  ---------------------------------- ### 1\. Are the conversion fees charged by Salt and Wise comparable?  While Salt and Wise offer competitive rates, their fee structures differ. Salt does not charge any markup and has a flat rate of 1.75%, including GST, for all currency pairs. Wise, on the other hand, has variable conversion fees depending on the currency pair involved. ### 2\. What is eFIRC, and why is it important?  eFIRC stands for Electronic Foreign Inward Remittance Certificate. It is a certificate often required for businesses receiving inward remittances. Salt Fintech provides eFIRC at no extra charge, whereas Wise charges a fee for its issuance. ### 3\. Does Salt provide invoices for fees deducted?  Salt Fintech provides invoices for the fees deducted if requested by the client. This level of transparency can be valuable for businesses that require detailed financial records. ### 4\. Does Wise offer an automated settlement process for INR?  Wise does not specifically mention an automated settlement process for INR. Checking with Wise directly for further details on their settlement processes is advisable. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Payoneer Or Salt? : Compare To Choose Your Payment Processor Author: Ankit Parasher Published: 2023-07-03 Category: International Payments Meta Title: Payoneer Or Salt? : Compare To Choose Your Payment Processor Meta Description: Payoneer or Salt? Which service is better for cross-border transfers? Let’s weigh them against each other! Tags: Salt fintech , receive international payments , Payoneer alternative , Salt fintech, cross border banking , Cross border money transfer URL: https://salt.pe/blog/salt-payoneer-comparison ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payoneer-vs-salt-1688383830404-compressed.jpg) In today's interconnected world, cross-border transfers play a crucial role in the success of many businesses. However, dealing with payment platforms with excessive fees, hidden charges, and the risk of blocked accounts can be frustrating and detrimental to your business. That's where Salt comes in as a reliable alternative to platforms like Payoneer.  With Salt Fintech, you can experience hassle-free international payments, transparent pricing, and exceptional customer support. Let's compare Salt and Payoneer to see why switching to Salt could be a game-changer for your cross-border business. What is Payoneer?  ------------------ Payoneer is a leading global payment platform that provides businesses and freelancers with a seamless way to send and receive international payments. With Payoneer, users can create virtual bank accounts in multiple currencies, allowing them to transact internationally easily. The platform offers various services, including payment processing, currency conversion, and compliance solutions.  However, Payoneer has been known to charge excessive fees and offer little support when it comes to their customer services, among other cons. Here’s where Salt Fintech can help you out! Salt Or Payoneer? : A Comparison -------------------------------- Let’s compare Salt Fintech and compare to see how Salt improves upon the cons of Payoneer: ![Payoneer-Alternative](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payoneer-vs-salt-comparision-which-one-should-i-opt-for-1688383865332-compressed.jpg) Transaction Fees and Annual Subscription  ----------------------------------------- Salt takes the lead in transaction fees by offering a competitive rate of just 1.75% (including GST), whereas Payoneer charges 2-3%. This seemingly small difference in fees can significantly impact your bottom line, especially for businesses that engage in frequent cross-border transfers.  By choosing Salt, you can save money on transaction costs and allocate more resources towards growing your business.  Furthermore, Payoneer charges an annual subscription fee of $29.95, which can add up over time. In contrast, Salt doesn't impose annual subscription fees, providing a cost-effective solution for businesses of all sizes. By eliminating this additional expense, Salt Fintech allows you to retain more of your hard-earned profits. Currency Conversion Fee  ------------------------ Another area where Salt shines is in currency conversion fees. While Payoneer charges a 0.5% fee for currency conversion, Salt offers a 0% currency conversion fee. This means that when you receive payments in different currencies and need to convert them, Salt ensures you don't lose a significant portion of your funds to conversion charges.  With Salt, you can convert your earnings without worrying about additional fees, maximising your earnings and reinvesting them into your business. Escheatment Fee and Withdrawal Fee  ----------------------------------- Salt stands out from Payoneer by not charging any escheatment fees. Escheatment fees are imposed when an account becomes dormant or inactive, and the funds are turned over to the government. With Salt Fintech, you don't have to worry about losing your funds due to inactivity. This provides peace of mind, especially for businesses that may experience fluctuations in transaction volumes.  Additionally, Salt eliminates withdrawal fees, whereas Payoneer charges fees for withdrawing funds to your local bank account. This added benefit ensures that you have easy access to your money without incurring unnecessary charges. It helps you efficiently manage your finances, ensuring your cash flow remains uninterrupted, and your funds are readily available for business operations. Receive Payments from Individuals and Merchants  ------------------------------------------------ One key advantage of Salt is its ability to receive payments from individuals and merchants. Payoneer, on the other hand, restricts receiving payments from individuals. This flexibility opens up more opportunities for businesses that cater to a diverse range of clients. Whether you're a freelancer collaborating with individual clients or an e-commerce seller receiving payments from customers worldwide, Salt accommodates your needs and enables seamless transfers with individuals and merchants. Best Possible Foreign Exchange Rate  ------------------------------------ Salt understands the importance of favourable foreign exchange rates for businesses operating globally. Salt follows the live exchange rates on Google to ensure that your business gets the most out of every dollar you earn. Using real-time exchange rates, Salt ensures you receive competitive rates for currency conversions. This transparency and commitment to providing the best possible exchange rates translate into cost savings and increased profitability for your business. No Risk of Random Blocked Accounts or Chargebacks  -------------------------------------------------- One of the most significant concerns when using payment platforms is the risk of random account suspensions or chargebacks. These situations can disrupt your business operations, cause financial losses, and erode trust with clients or customers. Salt addresses this issue by boasting a spotless record with zero cases of random account suspensions on international transactions. With Salt, you can operate your business with peace of mind, knowing that your cross-border transfers are secure and reliable. This reliability fosters trust with your partners, clients, and customers, enabling smoother business relationships. 24-Hour Customer Support and Relationship Manager  -------------------------------------------------- Salt goes the extra mile by offering 24-hour customer support, ensuring you can reach out for assistance whenever needed. Whether you have a question, need clarification, or require technical support, the Salt customer support team is readily available to provide guidance and resolve any issues promptly. This commitment to customer service sets Salt apart from Payoneer, offering you peace of mind and the assurance that your concerns will be addressed promptly.  Additionally, Salt provides support from a dedicated relationship manager. This personal touch adds value to your experience, as the relationship manager is your point of contact for any queries or concerns. We can provide tailored assistance based on your business requirements, offering expert insights and guidance to optimise cross-border transfers. This personalised support establishes a strong partnership between your business and Salt, ensuring you receive the attention and assistance you need to thrive. Salt: The Premium Business Choice for Cross Border Payments ----------------------------------------------------------- When it comes to international payments, Salt emerges as a strong contender against platforms like Payoneer. With its lower transaction fees, absence of annual/withdrawal/conversion/escheatment fees, ability to receive payments from individuals and merchants, competitive exchange rates, and stellar customer support, Salt offers an appealing alternative for businesses seeking a reliable cross-border payment solution.  By switching to Salt, you can bid farewell to random blocked accounts, chargebacks, and excessive charges, allowing you to focus on what matters most: growing your business and forging international connections with ease.  Make the smart choice and consider Salt as your trusted partner for hassle-free and cost-effective international payments. With [Salt](https://salt.pe/), your cross-border business can thrive in a secure and supportive payment ecosystem! Another Payoneer alternative is PayPal for cross-border business transactions. Read this blog to [compare Salt with PayPal](https://www.salt.pe/blog/paypal-salt-comparison) in detail!  ### Frequently Asked Questions (FAQs)  ### 1\. Is Salt a suitable alternative to Payoneer for cross-border payments?  Salt offers hassle-free international payments, lower transaction fees, and the ability to receive payments from individuals and merchants, making it a great alternative to Payoneer. ### 2\. Does Salt charge any annual subscription fees?  No, Salt does not charge any annual subscription fees, allowing you to save on additional costs associated with your cross-border transactions. ### 3\. How does Salt ensure the best foreign exchange rates?  Salt follows live Google exchange rates, ensuring you receive competitive currency conversion rates and maximising your earnings. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Are Markup Fees In International Transactions? How much do banks charge? Author: Ankit Parasher Published: 2023-07-03 Category: Inward Remittance Meta Title: What Are Markup Fee In International Transactions? Meta Description: Learn about markup fees for international transactions, including what it is, how it works, why banks charge them, how to minimize them, and more. Read here! Tags: international transaction, minimise markup fee, minimize markup fee, international transactions, Markup fee URL: https://salt.pe/blog/markup-fee-international-transactions Are you planning to make an international transaction? International transactions have become integral to our interconnected world, from purchasing goods from online stores overseas to sending money to loved ones abroad.  However, hidden in the fine print of these transactions is a seemingly mysterious fee known as the markup fee. But fear not!  In this post, we will demystify the markup fee concept and provide insights on how it works, why banks charge it, and how you can minimise it.  So, let's unravel the secrets of markup fees and empower you with the knowledge to make informed decisions regarding international transactions. What Is Markup Fee? ------------------- Markup fee, also known as foreign exchange markup or currency conversion fee, is an additional charge imposed on the foreign exchange rate used for converting one currency into another during international transactions. When you engage in an international transaction, such as using your credit card for a purchase in a foreign currency or transferring money to an overseas bank account, the transaction amount is converted from your local currency to the foreign currency at the prevailing exchange rate.  However, the exchange rate used for the conversion may include a markup fee, which is added on top of the actual exchange rate. Markup fee is typically expressed as a percentage of the transaction or a fixed fee. The exact percentage or fee may vary depending on the bank or financial institution, the type of transaction, the currency pair being converted, and the overall market conditions. Markup fees typically range from [1% to 3%](https://www.investopedia.com/terms/f/foreign-transaction-fee.asp) of the transaction amount, but they can sometimes be higher. It's important to note that banks and financial institutions charge markup fees to cover their costs and generate revenue from international transactions. Banks may incur costs due to fluctuations in the foreign exchange market and other associated risks, and markup fee helps them offset these costs and make a profit. Additionally, banks may charge markup fees as compensation for providing customers with the convenience of currency conversion services. Why Do Banks Charge Markup Fees? -------------------------------- Markup fee allows banks and financial institutions to generate revenue from international transactions. Banks often incur costs when converting currencies due to fluctuations in the foreign exchange market and other associated risks. A markup fee helps banks cover these costs and also make a profit.  Additionally, banks may charge markup fees as compensation for providing customers with the convenience of currency conversion services. It's important to note that markup fees are not universal and can vary among different banks and financial institutions. It's essential to review and understand the fee structure of your bank or financial institution before engaging in international transactions to be aware of any markup fees that may be charged. How to Minimize Markup Fee? --------------------------- Here are some tips on how you can minimize the markup fee for international transactions: 1. Compare Markup Fees: Different banks and financial institutions may charge different markup fees for international transactions. Before conducting any international transaction, compare the markup fees of various banks and choose the one with the lowest fee. 2. Choose Local Currency: When given the option, always pay or receive funds in the local currency of the destination country. This allows you to avoid dynamic currency conversion (DCC), where the merchant or bank converts the transaction amount to your home currency at their exchange rate, often with a high markup fee. Opting for local currency allows you to use the exchange rate set by your card issuer or bank, which may have lower markup fees. 3. Negotiate with Your Bank: If you have a good relationship with your bank or frequently conduct international transactions, you may be able to negotiate lower markup fees. Contact your bank and inquire about any special rates or discounts they may offer for international transactions. 4. Use Alternative Payment Methods: Some alternative payment methods, such as online money transfer services or peer-to-peer payment apps, may offer lower markup fees than traditional banks. Research and compare the fees of different payment methods to find the one with the lowest markup fees. 5. Monitor Exchange Rates: Monitor the prevailing exchange rates in the foreign exchange market. Exchange rates fluctuate constantly, and choosing to conduct your transaction during a favourable exchange rate can help you minimize the markup fee. 6. Plan Ahead: If you know you will need to make an international transaction, plan and take your time to research and compare the markup fees of different banks or payment methods. Avoid last-minute transactions that may result in higher fees due to urgency or lack of time for proper research. 7. Consider No-Foreign-Transaction-Fee Cards: Some credit or debit cards may offer no foreign transaction fees, meaning you won't be charged any markup fee for international transactions. Consider using such cards for international transactions to avoid or minimize the markup fee. ​ ​ It's essential to be aware of the markup fees associated with international transactions and take steps to minimize them. Review the fee structure of your bank or financial institution, compare options, and choose the one that offers the most favorable terms for your international transactions. How much should you care about markup fees? ------------------------------------------- In conclusion, markup fees are charges banks and financial institutions impose for converting one currency into another during international transactions. They are meant to cover costs, generate revenue, and compensate for providing currency conversion services. However, there are ways to minimise markup fees and save money on international transactions. Are you looking to streamline your small business's global banking with local accounts in India? Look no further than Salt! Explore [our website](https://www.salt.pe/) today to learn more about our offerings and how we can cater to your business needs. FAQs ---- ### Q: Are markup fees universal? A: Markup fees are not universal and can vary among banks and financial institutions. It's essential to review and understand the fee structure of your bank or financial institution before engaging in international transactions. ### Q: Can I avoid markup fees altogether? A: It may be challenging to avoid markup fees altogether, as banks and financial institutions typically charge them for currency conversion services. However, you can take steps to minimize them, as mentioned above. ### Q: Should I always choose the local currency for international transactions? A: Opting for local currency during international transactions can often help you avoid dynamic currency conversion (DCC) fees and potentially lower the markup fees. However, it's essential to review the terms and fees of your specific transaction and choose the option that offers the most favorable terms for you. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Inclusive Workplace: How Its Benefits Can Enhance Your Company Author: Udita Pal Published: 2023-07-03 Category: Building A Company Meta Description: Celebrate Pride Month 2023 by creating an inclusive workplace! Discover the benefits of diversity and learn to foster acceptance and respect. Tags: Inclusive Workplace, Workforce Diversity, Inclusive at Workplace, Benefits of Inclusion, Pride Month 2023 URL: https://salt.pe/blog/benefits-of-workplace-diversity ![Workplace-inclusitivity-lgbtqia](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/inclusive-workplace-how-its-benefits-can-enhance-your-company-1-1689158722853-compressed.jpg) As we celebrate Pride Month 2023, it's important to reflect on the concept of an inclusive workplace and its significance in today's business landscape. An inclusive workplace is more than just a buzzword; it's a business strategy that can yield significant benefits! Understanding an Inclusive Workplace ------------------------------------ An inclusive workplace is one where all employees, regardless of their gender, race, religion, age, or sexual orientation, feel valued and respected. It's about creating an environment where everyone has an equal opportunity to thrive and succeed. ### Defining "Inclusive at Workplace" Being "inclusive at the workplace" means embracing diversity and creating an environment where all employees feel included and valued. Recognising and appreciating each employee's unique experiences and perspectives is crucial for building a strong team. This inclusivity can lead to a more collaborative and innovative work environment, driving the company's success. ### The Meaning of "Inclusive Workplace" An "inclusive workplace" is one where diversity is not only accepted, but celebrated. It's a place where everyone feels comfortable expressing their true selves and where differences are seen as strengths rather than weaknesses. Creating a workplace that promotes a sense of belonging among employees can enhance job satisfaction and productivity. The Benefits of Workforce Diversity and Inclusion ------------------------------------------------- The benefits of workforce diversity and inclusion at offices are increasingly being recognized in business. A diverse and inclusive workforce is more than just meeting a quota or being politically correct.  It's about leveraging all employees' diverse skills, experiences, and perspectives to drive business success. When employees from diverse backgrounds and experiences are included and valued, they bring unique ideas and insights that can lead to innovative solutions and strategies. * ### Exploring the Benefits of Workforce Diversity The benefits of workforce diversity are numerous. A diverse workforce in terms of perspectives, ideas, and experiences can enhance creativity and innovation.  It can also lead to better decision-making as diverse teams are more likely to challenge assumptions and consider a wider range of options. This diversity is a powerful asset that can give companies a competitive edge. * ### Unpacking the Benefits of Inclusion The "benefits of inclusion" go beyond just having a diverse workforce. Employees who feel included tend to be more engaged and committed to their job.  They are also more likely to feel satisfied with their jobs, which can lead to higher retention rates. Inclusion can also improve a company's reputation, making it more attractive to potential employees and customers. How to Foster an Inclusive Workplace ------------------------------------ Establishing an inclusive workplace is an ongoing effort that demands dedication and involvement from all organisation members.  It's about creating a culture where everyone feels valued and included. This involves implementing inclusive policies, promoting open dialogue, and providing education and training on diversity and inclusion. * ### Implementing Inclusive Policies Creating an inclusive workplace starts with implementing inclusive policies. This could include recruitment, training, and promotion policies and policies that promote a respectful and inclusive work environment. It is important to clearly communicate these policies to all employees and ensure they are consistently enforced. * ### Encouraging Open Dialogue and Education Another important step in fostering an inclusive workplace is encouraging open dialogue and education. This could involve providing diversity and inclusion training, creating forums for open discussion, and encouraging employees to learn about and respect different cultures and perspectives. This open dialogue can help to break down barriers and foster a more inclusive culture. Celebrating Pride Month 2023 in an Inclusive Workplace ------------------------------------------------------ During Pride Month, we recognise and honour the diversity within the LGBTQ+ community while showing our support. In an inclusive workplace, Pride Month can be an opportunity to reinforce the company's commitment to diversity and inclusion and to celebrate the contributions of LGBTQ+ employees. ### Why Celebrate Pride Month at Work ![Pride-month-at-work](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-should-you-celebrate-pride-month-1-1689158789748-compressed.jpg) Celebrating Pride Month at work is a great way to support LGBTQ+ employees and reinforce your commitment to creating an inclusive workplace. It's also an opportunity to educate employees about the history and significance of Pride Month. This celebration can help to foster a sense of community and inclusion within the workplace. ### Ideas for Celebrating Pride Month In the workplace, there are numerous ways to commemorate Pride Month. This could include hosting educational events, organising social activities, or participating in local Pride parades or events. The key is to create inclusive and respectful activities for all employees. Conclusion ---------- Creating an inclusive workplace is not just the right thing to do; it's also good for business. The benefits of workforce diversity and inclusion are clear, and with the right strategies and commitment, any company can create a more inclusive and welcoming environment.  Let's commit this Pride Month to create a welcoming workplace where everyone is treated with value and respect. FAQs ---- ### Q. What is an inclusive workplace?  An inclusive workplace is an environment where all employees, regardless of gender, race, religion, age, or sexual orientation, feel valued and respected. The environment is one where diversity is appreciated, and all individuals have an equal chance to flourish and achieve success. ### Q. Why is inclusion important in the workplace?  An inclusive workplace boosts job satisfaction, productivity, and creativity by fostering diversity of perspectives, ideas, and experiences. ### Q. How can a company foster an inclusive workplace?  A company can foster an inclusive workplace by implementing inclusive policies, encouraging open dialogue and education, and celebrating diversity. This could involve providing diversity and inclusion training, creating forums for open discussion, and celebrating events like Pride Month. ### Q. What are the benefits of having an inclusive workplace?  The benefits of having an inclusive workplace include increased creativity and innovation, better decision-making, higher job satisfaction and retention rates, and an improved company reputation. ### Q. How can a company celebrate Pride Month in the workplace?  A company can celebrate Pride Month in the workplace by hosting educational events, organising social activities, or participating in local Pride parades or events. The key is to create inclusive and respectful activities for all employees. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Significance of FIRC/FIRA For Freelancers : International Transactions Author: Ankit Parasher Published: 2023-06-28 Category: Freelancers Meta Title: The Significance of FIRC/FIRA For Freelancers : International Transactions Meta Description: What is the significance of FIRC/FIRA for freelancers? And how can freelancers get FIRC/FIRA? Read all about these certificates here! Tags: Foreign Inward Remittance, Freelancers, international payments , FIRC Certificate, what is FIRC, Who issues FIRC , tools for freelancers, FIRA Issue, FIRC for GST Refund URL: https://salt.pe/blog/firc-for-freelancers ![FIRC-Freelancer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/the-significance-of-fircfira-for-freelancers-international-transactions-1689593999487-compressed.jpg) In today's globalised world, freelancers have long been taking advantage of digital platforms to offer their services to clients from around the globe. Of course, this means accepting international payments in the form of inward remittances too. With the rise of remote work and cross-border collaborations, freelancers must understand the significance of a [Foreign Inward Remittance Certificate](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) (FIRC) or [Foreign Inward Remittance Advice](https://salt.pe/blog/posts/category/firc-fira/1) (FIRA). These documents ensure regulatory compliance when it comes to international payments, and provide financial transparency.  In this comprehensive blog, we will look at the purpose and benefits of FIRC/FIRA for freelancers. Understanding the Significance of FIRC and FIRA for Freelancers --------------------------------------------------------------- FIRC (Foreign Inward Remittance Certificate) and FIRA (Foreign Inward Remittance Advice) are both documents that serve as evidence of receiving foreign funds into an individual's or business's bank account.  Let’s weigh various features of the two documents alongside each other: ### Purpose * FIRC: This is issued by the Indian bank where foreign funds are received. It acts as proof of inward remittance and is often required for various purposes such as tax reporting, compliance with foreign exchange regulations, and verifying the source of funds. * FIRA: It serves a similar purpose as FIRC. The receiving bank issues it and provides details of the foreign inward remittance, including the sender's information, the purpose of the payment, and the amount received. ### Country-specific * FIRC: It is specific to India and is required for individuals or businesses receiving foreign funds into their Indian bank accounts. * FIRA: FIRA is specific to India as well, but similar documents are used in countries other than India, and the specific terminology or document may vary depending on the country's regulations and banking practices. ### Regulatory Compliance * FIRC: FIRC is an important document for regulatory compliance in India. It helps ensure that foreign funds are received through legal channels, comply with foreign exchange regulations, and enable accurate foreign income reporting for taxation purposes. * FIRA: Similarly, FIRA helps establish the legitimacy and transparency of foreign inward remittances made to India, assisting with regulatory compliance and maintaining financial transparency. ### Information Included * FIRC: It typically includes details such as the remitter's name, address, the amount of inward remittance, the purpose of remittance, and the bank's stamp and signature. It serves as a comprehensive record of foreign inward remittance. * FIRA: It also provides similar information, including the sender's details, payment purpose, the amount received, and other relevant details specific to the country's regulations and banking practices. ### Documentation Process * FIRC: In India, obtaining a FIRC usually involves submitting a request to the bank where the foreign funds were received. The bank then verifies the transaction details and issues the FIRC per the regulatory guidelines. * FIRA: The process of obtaining FIRA also typically involves submitting the necessary documentation and providing the required information to the bank to facilitate the issuance of the FIRA. Consulting with a financial advisor or contacting the respective bank can provide more detailed information on obtaining FIRC or FIRA based on individual circumstances and location. Advantages of FIRC/FIRA for Freelancers --------------------------------------- As freelancers navigate the global landscape of remote work and international clients, understanding the advantages of obtaining a Foreign Inward Remittance Certificate (FIRC) or Foreign Inward Remittance Advice (FIRA) becomes crucial. These documents serve as valuable proof of receiving international payments, and offer numerous benefits for freelancers in managing their finances, ensuring compliance, and building trust with clients and financial institutions. * ### Regulatory Compliance ![Why-is-firc-important-for-freelancer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/adavntages-of-firc-for-freelancers-1689594057096-compressed.jpg) FIRC/FIRA is a crucial document demonstrating that freelancers have received funds from international clients legally. It provides evidence of complying with the foreign exchange regulations in India, as laid down by the RBI.  * ### Taxation and Accounting FIRC/FIRA is pivotal in simplifying tax reporting and accounting for freelancers. It provides a clear record of the international payments received, enabling accurate reporting to tax authorities. Freelancers can use FIRC/FIRA as supporting documentation while filing tax returns, ensuring transparency and avoiding potential penalties or audits. * ### Proof of Income FIRC/FIRA serves as proof of income for freelancers, especially when dealing with financial institutions or government agencies. It establishes a verifiable record of the funds received from international clients, which can be essential for various purposes, such as obtaining loans, securing visas, or applying for residency permits in foreign countries. * ### Dispute Resolution In case of any disputes or discrepancies related to international payments, FIRC/FIRA acts as strong evidence to resolve the issue. It provides a detailed breakdown of the inward remittance, including the client's information, payment date, and purpose. Freelancers can refer to FIRC/FIRA to address any payment-related conflicts or discrepancies, ensuring fair resolution and protecting their rights. How to obtain FIRC/FIRA? ------------------------ The general steps to receive FIRC/FIRA in India for freelancers receiving inward remittances would be: ### Provide Relevant Information Freelancers must provide necessary details, such as the client's information, payment details, the purpose of the transaction, and supporting documentation, to the authorised bank or financial institution. ### Application Submission Freelancers should submit an application requesting the issuance of FIRC/FIRA to the designated bank. The application may require specific forms, identification documents, and supporting evidence per the bank's requirements. ### Verification and Approval The bank or financial institution will verify the provided information, conduct necessary checks, and approve the issuance of FIRC/FIRA if all requirements are met. ### FIRC/FIRA Issuance Upon approval, the bank will issue the FIRC/FIRA to the freelancer in electronic format, generally. The document will contain essential details regarding the received inward remittance. Conclusion: FIRA and FIRC Are Essential for Freelancers  -------------------------------------------------------- For freelancers engaging in cross-border assignments, understanding the significance of a Foreign Inward Remittance Certificate (FIRC) or Foreign Inward Remittance Advice (FIRA) is crucial. These certificates are evidence of legal and authorised receipt of inward remittance through international payments, ensuring regulatory compliance, taxation transparency, and financial accountability.  By obtaining FIRC/FIRA, freelancers can simplify their tax reporting, enhance their professional reputation, and maintain trust with clients and financial institutions. If you're a freelancer looking for a reliable platform to receive international payments and simplify obtaining FIRC/FIRA, consider exploring [SALT Fintech](https://www.salt.pe/). By leveraging our services, you can streamline your global financial operations, comply with regulations, and focus on professional growth! FAQs  ----- ### Who requires a foreign inward remittance certificate? Goods and service exporters, individuals, and organisations receiving international payments or money transfers from abroad require a FIRC to prove they have received inward remittances from outside India. ### Can all banks issue physical FIRCs? Since 2016, physical FIRC was discontinued, unless it is against FDI or foreign direct investment, and FII or foreign institutional investment. Now banks can only issue an e-FIRC. However, not all banks are authorised to issue e-FIRCs. Only AD Category-I banks authorised and monitored by RBI can issue e-FIRCs. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Does AD Category- 1 Bank Mean? - RBI Author: Udita Pal Published: 2023-06-01 Category: Banking In India Meta Title: What are AD Category-1 Banks? Meta Description: The Reserve Bank of India authorises AD Category-1 Banks to deal in foreign exchange for outward remittance and trade-related transactions. Read more here. Tags: Foreign Inward Remittance, outward remittance, category 1 banks , foreign remittance, AD Category 1 bank India , AD Category 1, AD Category 1 banks URL: https://salt.pe/blog/ad-category-1-banks ![AD-Category-Bank-RBI-meaning](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-does-ad-category-1-bank-mean-rbi-25-1687955026959-compressed.jpg) Picture yourself planning a trip to a foreign country. You're excited about the new experiences, sights, and sounds you'll encounter, but there's one thing you need to sort out before you leave - foreign currency. That's where AD Category-1 Banks come in - the financial superheroes authorised by the Reserve Bank of India to deal in foreign exchange transactions. They offer convenience, competitive rates, safety, and speed, making your foreign exchange transactions a breeze. So, if you want to make your international travel stress-free, it's time to get to know these AD Category-1 Banks a little better. What is an AD Category-1 Bank? ------------------------------ The Reserve Bank of India (RBI) gives an AD Category-1 Bank permission to deal in foreign exchange transactions. AD stands for Authorised Dealer, and Category-1 is the highest authorised dealer category in India's foreign exchange transactions. These banks are allowed to carry out a wide range of activities related to foreign exchange, including buying and selling foreign currency, outward remittance of funds abroad, and issuance of letters of credit and bank guarantees. They act as intermediaries between the buyers and sellers of foreign currencies and help to provide liquidity in the foreign exchange market. AD Category-1 Banks are considered the most important banks in the Indian banking system regarding foreign exchange transactions and outward remittances. They are crucial in facilitating trade and investment transactions between India and other countries by providing necessary foreign exchange services to businesses and individuals. Role of AD Category-1 Banks --------------------------- ![Primary-role-of-ad-category-1-bank-rbi](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/role-of-ad-category-1-bank-mean-rbi-27-1687956136756-compressed.jpg) The primary role of AD Category-1 Banks is to facilitate foreign exchange transactions. These banks act as intermediaries between the buyers and sellers of foreign currencies and help to provide liquidity in the foreign exchange market. Some of the critical functions of AD-1 banks include the following: 1. Buying and selling foreign currency: AD-1 banks are authorised to deal in foreign currencies and help individuals and businesses buy and sell foreign currencies. 2. Outward remittance of funds: AD-1 banks help move money from India to other countries (and also from other countries to India). 3. Issuance of letters of credit: AD-1 Banks give out letters of credit and guarantees to make it easier for people to do business and trade across borders. 4. Maintenance of foreign exchange reserves: AD-1 banks play a crucial role in maintaining the country's foreign exchange reserves and ensuring enough liquidity in the market. 5. Compliance with RBI guidelines: AD-1 banks must follow the rules about foreign exchange transactions set by the Reserve Bank of India (RBI). Benefits of AD Category-1 Banks ------------------------------- AD Category-1 Banks offer several benefits to individuals and businesses involved in foreign exchange transactions. These benefits include: 1. Convenience: AD-1 banks provide a one-stop solution for all foreign exchange transactions. Customers can buy and sell foreign currencies, remit funds abroad, and obtain letters of credit and bank guarantees from the same bank. 2. Competitive Rates: AD Category-1 Banks are known for offering competitive rates for foreign exchange transactions. Customers will find it easier to get the best transaction rates this way. 3. Safety: AD-1 banks are authorised by the RBI, which means they are subject to strict regulatory oversight. This ensures that customers' funds are safe and secure. 4. Speed: AD-1 banks offer fast and efficient services for foreign exchange transactions. Customers can finish their transactions effortlessly and quickly without having to wait. Conclusion ---------- AD Category-1 Banks play an essential role in the Indian banking system regarding foreign exchange transactions and outward remittances. The RBI authorises these banks and is responsible for facilitating foreign exchange transactions, maintaining the country's foreign exchange reserves, and ensuring enough liquidity in the market. AD-1 banks offer several benefits to customers, including convenience, competitive rates, safety, and speed. If you are involved in foreign exchange transactions, it is worth considering using the services of an AD Category-1 Bank. We trust that this article has given you a thorough grasp of AD Category- 1 Banks and what they do. If you're interested in delving deeper into the realm of finance, we invite you to explore the [Salt blog](https://www.salt.pe/blog) for further enlightening content. FAQs ---- ### What is the difference between AD Category-1 Banks and other authorised dealers in foreign exchange? The RBI authorises AD Category-1 Banks to deal in foreign exchange transactions and they are considered the most important bank in the Indian banking system regarding foreign exchange transactions and outward remittances. Other authorised dealers in foreign exchange, such as AD Category-2 Banks, can undertake only limited foreign exchange transactions, such as the remittance of funds abroad or issuance of traveller's cheques. ### How do I identify an AD Category-1 Bank? The RBI publishes a list of all AD Category-1 Banks on its website. You can also find this information on individual banks' websites or by contacting their customer service departments. ### Can individuals use the services of AD Category-1 Banks? Yes, individuals can use the services of AD Category-1 Banks for their foreign exchange transactions, such as buying and selling foreign currency or outward remittance of funds. ### Can an AD Category-1 Bank limit the amount of foreign currency I buy or sell? There are restrictions on the amount of foreign currency that can be bought or sold through an AD Category-1 Bank. The RBI determines these restrictions, which are subject to changes occasionally. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Is FIRC Important If You Receive Foreign Inward Remittances ? Author: Sudhanshu Choudhary Published: 2023-06-01 Category: Inward Remittance Meta Title: Why Is FIRC Important If You Receive Foreign Inward Remittances ? Meta Description: Learn about what FIRC is, its types and why it is really important. Tags: receive international payments , FIRC, CROSS BORDER PAYMENTS INDIA, How can you claim FIRC , FIRC for GST Refund, Cross border money transfer URL: https://salt.pe/blog/importance-of-firc ![Importance-of-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-is-firc-important-if-you-receive-inward-remittances-24-pinterest-1686825491212-compressed.jpg) Say you are engaged in a business of exporting goods from India to other countries or you are an India based freelancer providing services abroad. Then, your profession involves cross border money transfers as you receive your payments from abroad. Here, you must have a document called the FIRC or the Foreign Inward Remittance Certificate, which is a piece of paper acting as a proof of the international payments received.  The process of getting this [FIRC](https://www.salt.pe/blog/foreign-inward-remittance-certificate-explained) involves the beneficiary (the receiver of foreign remittance) applying for it once he/she receives the transfer in his/her bank account. The purpose of it has to be stated with clarity and thereafter on the basis of the information given, the Authorised Dealer (AD) of the RBI, which is typically the bank through which the intentional payments are credited into your account, will provide you with the FIRC. In this post, we review why a FIRC is important.  Types of FIRC ------------- An Authorised Dealer (AD) issues the following two types of FIRC- Physical Foreign Inward Remittance Certificate (FIRC) If your business is involved in inward remittances against Foreign Direct Investment (FDI)  and Foreign Institutional Investment (FII) (which involve international payments only through banking channels under the guidelines of the RBI), then a physical FIRC will be issued. ![Use-of-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-th-use-of-fira-firc-17-1686825536761-compressed.jpg) **Electronic Foreign Inward Remittance Certificate (e-FIRC)** ------------------------------------------------------------- The ADs have to report the proof of all the inward remittances to the Export and Data Monitoring Systems (EDPMS) and thereafter they issue the e-FIRC, which  is the electronic version of the physical FIRC.  The receipt of payment or any other advances/outstanding transfers to the exporter of the goods/services is to be given to the bank by the beneficiary which is then uploaded to the EDMPS.  An inward remittance (IRM) number is then generated  for the issuance of the e-FIRC that comes to the beneficiary’s account within a week or two from the date on which the foreign currency was credited to the account of the beneficiary through a cross border money transfer.  **Foreign Inward Remittance Advice (FIRA)** ------------------------------------------- If the foreign transfer received does not fall in either of the above categories, then the business can apply for this type of advice which is basically a certificate of inward remittance acting as a legal proof of the international payments received by the exporting company or the freelancer in exchange for his/her services.  The request for FIRA is made by the beneficiary to the partner bank that has processed the cross border money transfer and details like account number, amount of transfer, intent of transfer along with the transaction date has to be provided. Post submission of the request, the details mentioned above are verified by the bank and uploaded on the EDMPS. An IRM number is then generated on the portal  from which the beneficiary can later download the Advice. ![Information-contained-in-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-certificate-firc-1686825574378-compressed.png) Information Contained in FIRC Information contained in the FIRC A Foreign Inward Remittance Certificate has the following details: * Name of Beneficiary/Exporter * Mode of payment * Payee’s name and address * Name and address of the bank authorising the transaction  * Cheque number or telegraphic transfer (TT) or demand draft (DD) number * The FDI amount in the foreign currency * The equivalent amount mentioned in rupees, in numbers as well as in words * The name of the recipient * The foreign exchange rate prevalent  * the purpose behind the inward remittance like share transfer or export **The Importance of FIRC** -------------------------- Coming to the topic at hand, why is FIRC important anyway? * It is a legal proof of the inward remittance of foreign exchange which the RBI has to closely monitor. The FIRC provides the RBI with the details of all transactions involving receipt of payments from abroad. The ADs are required to report these remittances on the EDMPS which is the online application allowing all the Indian-authorised banks to disclose the inward remittances of foreign currency to the Reserve Bank of India, thereby making the system of cross border money transfer more transparent.  * If you are an exporter and no service tax is levied on the export of your services as mentioned in the guidelines of export of services, then the FIRC acts as an indispensable proof of the transactions and helps you in getting tax benefits in areas in which you are entitled. By showing the FIRC, you can claim the  relaxations in service tax (on the provision of certain services) but without producing it you cannot claim any benefits.   * FIRC is extremely important when shares are issued to a foreign entity or a foreign person as it serves as a proof of the receipt of the share application money from them. It also provides a proof in cases where a resident Indian transfers his shares to a non resident person or a foreign entity and receives the required amount as purchase consideration. * It is also one of the crucial documents that have to be submitted as proof to the Director General of Foreign Trade (DGFT) in cases of export promotion schemes like Export Promotion Capital Goods (EPCG) and advanced licensing requirements. Conclusion ---------- As we have seen, a Foreign Inward Remittance Certificate is an extremely important document when it comes to inward remittances from foreign banks and that is why an exporter or a freelancer should follow up with the bank to obtain this certificate with every inward remittance.  We hope this post was helpful in explaining the relevance of FIRC to you. We at Salt Fintech provide you with FIRC for inward remittance transactions. [Sign up with us today](https://www.salt.pe/) to accelerate cross border money transfers to your Indian bank account in as many as six currencies, that too within 24 hours! FAQS - Foreign Inward Remittance Certificate (FIRC) --------------------------------------------------- ### Which bank is authorised to issue an FIRC when the inward remittance is transferred through more than one bank account? As per RBI’s clarifications and the provisions under FEMA, the first bank in India that receives the inward remittance in foreign currency has to issue the Foreign Inward Remittance Certificate because it has the requisite details of the overseas bank that has remitted the foreign exchange. ### What is the difference between BRC and FIRC? Both the Bank Realisation Certificate and Foreign Inward Remittance Certificate are issued by the AD, [but in contrast to the FIRC](https://www.salt.pe/blog/what-is-the-difference-between-brc-and-fircD) which is given against the receipt of international payments, the BRC is issued against any specific documents. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is An ABA Routing Transit Number? - International Money Transfer Author: Ankit Parasher Published: 2023-06-01 Category: International Business Meta Description: Learn what an ABA routing number is, how it is used to identify financial institutions in the US, and how to find the correct number for your bank. Tags: ABA Routing Number , Is ABA Routing Number , What is ABA Routing No, What's ABA Routing Number URL: https://salt.pe/blog/aba-routing-number ![ABA-Routing-Number](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-an-aba-routing-transit-number-1685620362541-compressed.jpg) They say that every number tells a story. In the case of the ABA routing number, this couldn't be more true. Nestled within the nine digits lies a tale of financial institutions, transactions, and the movement of funds across the vast landscape of the United States. It's a story unfolding for decades, connecting people and businesses with the money they need to thrive. So, let's dive in and discover the narrative behind what is ABA routing number and how it has shaped how we do business today. Contents * [What Is ABA Number?](#what-is-aba-number) * [How To Find ABA Number?](#how-to-find-aba-number) * [Check your cheque book:](#check-your-cheque-book) * [Contact your bank:](#contact-your-bank) * [Use an online search tool:](#use-an-online-search-tool) * [Use your bank's mobile app:](#use-your-banks-mobile-app)  * [ABA Numbers And International Money Transfer](#aba-numbers-and-international-money-transfer) * [ABA Vs. SWIFT Vs. CHIP Vs. IBAN](#aba-vs-swift-vs-chip-vs-iban) * [FAQs](#faqs) * [What is the difference between an ABA routing and bank account numbers?](#what-is-the-difference-between-an-aba-routing-and-bank-account-numbers) * [Can two banks have the same ABA routing number?](#can-two-banks-have-the-same-aba-routing-number) * [Can an ABA routing number be used for international wire transfers?](#can-an-aba-routing-number-be-used-for-international-wire-transfers) * [How to know if I have my bank's correct ABA routing number?](#how-to-know-if-i-have-my-banks-correct-aba-routing-number) * [What if I accidentally use the wrong ABA routing number?](#what-if-i-accidentally-use-the-wrong-aba-routing-number) What Is ABA Number? ------------------- So, what's an ABA routing number? An ABA number, also called a routing transit number (RTN) or ABA routing number, is a unique nine-digit code assigned to financial institutions in the United States. This number is used to identify the financial institution responsible for a particular transaction and to facilitate the transfer of funds between banks or financial institutions within the US. Each financial institution is assigned a unique ABA number based on its geographic location, and the numbers are assigned by the American Bankers Association (ABA). ABA numbers are typically used for direct deposit, automatic bill payments, wire transfers, and other electronic transactions and are often printed at the bottom left-hand corner of checks. It is crucial to ensure that you have the correct ABA number for your bank or financial institution when conducting these types of transactions, as errors in the routing number can result in delays or even lost funds. ![ABA-Routing-Number-Defined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-an-aba-routing-transit-number-international-money-transfer-1685620399846-compressed.jpg) What Is An ABA Routing Number  How To Find ABA Number? ----------------------- So, now we know what an ABA routing number is. Let’s move on to some ways to find the ABA number for your bank or financial institution: ### Check your cheque book: The ABA number is usually printed at the bottom left-hand corner of your personal or business check, along with your account number and check number. ### Contact your bank: You can contact your bank or financial institution directly and ask for their ABA routing number. This information may also be available on their website or mobile banking app. ### Use an online search tool: Several websites offer free ABA number lookup tools, such as ABA.com, Bankrate.com, or RoutingNumber.com. Please enter your bank or financial institution's name and location, and the website will provide you with their ABA routing number. ### Use your bank's mobile app:  Many banks now offer mobile apps that allow you to view your account information, including your ABA routing number. Log into your app and navigate to your account details to find this information. Always double-check that you have the correct ABA routing number before conducting electronic transactions, as errors can result in delays or lost funds. **Is ABA the Same As SWIFT Code?** No, ABA routing numbers and SWIFT codes are not the same. As mentioned earlier, an ABA routing number is a unique nine-digit code used to identify financial institutions in the United States. It is primarily used for domestic transactions within the US, such as direct deposit, automatic bill payments, and wire transfers. Whereas a SWIFT code, also known as a Bank Identifier Code (BIC), is a unique alphanumeric code to identify banks and financial institutions globally. It is used for international wire transfers and other cross-border transactions. While both ABA routing numbers and SWIFT codes are used to identify financial institutions, they perform different purposes and are used in various contexts. ABA routing numbers are also used for domestic transactions within the US, while SWIFT codes are used for international transactions. **ABA Numbers And International Money Transfer** ------------------------------------------------ ABA routing numbers are primarily used for domestic transactions within the United States and are not typically for international money transfers. The [SWIFT or Bank Identifier Code (BIC)](https://www.salt.pe/blog/swift-code-explained) is used for international transfers to identify the recipient's bank or financial institution. In addition to the SWIFT code, information such as the recipient's account number and address may be required to complete the transfer. It's important to note that international transfers can involve fees and currency exchange rates, and the specific requirements and fees may vary depending on the banks involved in the transaction. It's always a good idea to check with your bank or financial institution for specific instructions and fees before initiating an international money transfer. **ABA Vs. SWIFT Vs. CHIP Vs. IBAN** ----------------------------------- **Feature** **ABA Routing Number** **SWIFT Code** **CHIP Code** **IBAN** **Location** United States Global Europe The Middle East, Europe, and parts of Africa and Asia **Length** 9 digits 8-11 characters 8 or 11 characters Varies by country **Identifies** Financial institutions in the US Banks and financial institutions globally Banks and financial institutions in Europe Bank account numbers, as well as the bank and country of the account holder **Primary Use** Domestic transactions within the US International wire transfers and other cross-border transactions Eurozone interbank transfers International wire transfers and direct debit transactions It's worth noting that while IBANs are primarily used in Europe, some non-European countries also use IBANs for international wire transfers. **FAQs** -------- ### **What is the difference between an ABA routing and bank account numbers?** An ABA routing number is used to identify the financial institution responsible for a particular transaction, while a bank account number identifies the specific account within that institution. The ABA routing number is used in conjunction with the bank account number to facilitate the transfer of funds. ### **Can two banks have the same ABA routing number?** No, each financial institution is assigned a unique ABA routing number based on location. This ensures that transactions are properly routed to the right bank or financial institution. ### **Can an ABA routing number be used for international wire transfers?** No, ABA routing numbers are primarily used for domestic transactions within the United States. The SWIFT code or Bank Identifier Code (BIC) is used for international wire transfers to identify the recipient's bank or financial institution. ### **How to know if I have my bank's correct ABA routing number?** The best way to ensure that you have the correct ABA routing number for your bank is to check your personal or business checks, contact your bank directly, or use an online search tool to look up the number. It's important to always double-check this information before conducting any electronic transactions. ### **What if I accidentally use the wrong ABA routing number?** If you accidentally use the wrong ABA routing number, the transaction may be delayed, or the funds lost. It's important to contact your bank or financial institution as soon as possible to correct the error. Looking for simple business-to-business deals in a global business setting? SALT is all about making it easy for you to bank around the world through local accounts. Check out [our website](https://www.salt.pe/) today to learn more about us. ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Indian Government Schemes And Proposals Every MSME Should Know Author: Sudhanshu Choudhary Published: 2023-05-27 Category: MSMEs Meta Title: Indian Government Schemes And Proposals Every MSME should know Meta Description: In this post, we discuss the various schemes and proposals the Union Budget of India 2023 has announced for the MSME sector of the country. Tags: MSMEs in India, Union Budget 2023 , Government Scheme Business , MSME, Government Proposal Business, MSMEs URL: https://salt.pe/blog/indian-government-schemes-and-proposal-msme ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/major-benefits-for-indian-startups-by-the-union-goverment-1685098035817-compressed.jpg) Indian Government Schemes And Proposals For MSMEs. Nirmala Sitharaman, the Finance Minister of India, presented the [Union Budget](https://www.indiabudget.gov.in/doc/Budget_Speech.pdf) on February 1, 2023, which was the current government's last full-year budget. Highlighting several key features of the budget, she focused on driving economic growth for India for the upcoming financial year 2023-2024 and for the next 25 years, which the government is calling Amrit Kaal. There were specific announcements for the MSME sector as well. The MSME sector in India is facing several challenges, such as limited access to credit, lack of awareness, limited technology adoption, and lack of market access. The sector has immense potential though, and with the right support, the MSME sector can emerge as a key driver of economic growth in India. Read ahead to learn more about what the budget had in store for small businesses and startups! The MSME Sector of India ------------------------ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/indian-government-schemes-and-proposals-every-sme-should-know-1685098089762-compressed.jpg) The Micro, Small, and Medium Enterprises (MSMEs) sector in India has contributed immensely to the Indian economy over the last few decades. Small businesses in particular contribute to the country's gross domestic product (GDP) and generate significant employment opportunities through millions of jobs. The entire sector provides an avenue for enterprising people to start their business ventures and become economically independent. The Government of India provides a range of support to MSMEs and startups through various policy measures and schemes. These include easy access to credit, technology upgradation, and marketing support, amongst others. The sector has displayed remarkable strength in the face of economic slowdown and global recessionary trends post-pandemic, being one of the fastest-growing pillars of the economy. In fact, about [52%](https://www.business-standard.com/article/economy-policy/52-of-indian-msmes-saw-a-positive-impact-post-pandemic-paypal-survey-122011900826_1.html) of the Indian MSMEs saw a positive impact on their businesses post-pandemic.  Union Budget 2023: Proposals for the MSME Sector ------------------------------------------------ The Union Budget 2023 was comprehensive and focused on increasing capital expenditure for the upcoming financial year to boost economic growth. It was increased by [33%](https://www.hindustantimes.com/business/budget-2023-jobs-infrastructure-in-focus-as-capex-raised-by-33-101675233879147.html) to $122.29 billion to meet all targets of planned infrastructure projects in the country. Small businesses have also received considerable support from the government after the initial distress during the pandemic. The Budget included several initiatives, which are listed below: * [The Emergency Credit Line Guarantee Scheme (ECLGS)](https://www.eclgs.com/) brought much-needed support to several MSMEs after the pandemic, extending secured lines of credit to small and medium enterprises. It came as a saviour for many micro, small, and medium firms in India that were struggling to survive due to the lack of sufficient capital. The scheme was extended to March 2023 to continue supporting the sector, while additional capital was also allocated for hospitality and other sectors. * [Ease of Doing Business:](https://www.financialexpress.com/budget/msme-eodb-budget-2022-govt-to-interlink-udyam-e-shram-ncs-aseem-portals-to-support-msmes-2422640/) With the goal to improve efficiency, the digital portals of the Ministry of Labour and Employment and the Ministry of Skill Development and Entrepreneurship were linked with the Udyam portal to enable the MSME sector to find skilled employees and help increase employment in the country. * [Raising and Accelerating MSME Performance (RAMP):](https://www.financialexpress.com/industry/sme/msme-fin-pm-modi-launches-ramp-scheme-for-msmes-cbfte-scheme-for-first-time-exporters/2577790/) The Prime Minister of India inaugurated the RAMP program in 2022. It will be implemented over five years to benefit the MSME sector in several areas by improving market access, credit, and others. For the financial year 2023-2024, Finance Minister Sitharaman announced the following measures for the MSME sector in the Union Budget 2023: * [Vivad se Vishwas I:](https://cfo.economictimes.indiatimes.com/news/budget-2023-vivad-se-vishwas-1-2-and-revamp-of-credit-guarantee-scheme-to-provide-relief-to-msmes/97519392) Through the Vivad se Vishwas I scheme, MSMEs would be benefited to a large extent since the government would be refunding 95% of the security amount any MSME had deposited for a performance or bid security for a contract in case the MSME was not able to complete the project within the Covid period. * [Entity DigiLocker:](https://inc42.com/buzz/union-budget-2023-entity-digilocker-for-msmes-startups/) The Union Budget 2023 announced that MSMEs will be able to access an Entity DigiLocker, which will help them store important documents and agreements digitally for easy access and for sharing with government departments, other businesses, and regulators. It would enhance the privacy and security of their documents. * [Skill India Digital Platform:](https://www.indiatoday.in/education-today/news/story/union-budget-2023-what-is-skill-india-digital-platform-2329097-2023-02-01) The Skill India Digital Platform will be launched, as indicated by the Union Budget 2023, to empower our citizens with the skills in demand in the market. The skilled workforce will be linked to MSMEs for employment, which will also benefit the MSME sector with access to skilled labour. * [Credit Guarantee for MSMEs:](https://timesofindia.indiatimes.com/city/pune/relief-in-sight-for-msmes-as-9000cr-announced-for-credit-guarantee-scheme/articleshow/97540107.cms) The Finance Minister announced in the Union Budget 2023 that the credit guarantee scheme meant for MSMEs would be updated this year with effect from April 1, 2023. The corpus will also receive an infusion of INR 9000 crores, enabling INR 2 Lakh crores of additional collateral-free guaranteed credit. * [Metals:](https://www.businesstoday.in/markets/company-stock/story/tata-steel-jsw-steel-jindal-steel-shares-climb-up-to-6-as-fm-extends-duty-exemption-on-inputs-368487-2023-02-01) Those MSMEs who are secondary copper producers will be benefited through a new announcement in the Union Budget 2023. For easy access to raw materials, the concessional Basic Custom Duty of 2.5% will be continued on copper scraps. * [Increased Limits of Presumptive Taxation:](https://www.livemint.com/money/personal-finance/get-a-hike-in-presumptive-tax-limits-now-11675278928367.html) MSMEs and professionals will be positively impacted as the Union Budget 2023 announced the increase in the limits of presumptive taxation to INR 3 crore and INR 75 lakhs for micro-enterprises and certain professionals, respectively. The budget announced the approval to use deductions on expenditures made on payments made to them, but only when the payment is actually made. This will improve the cash flow for such firms. * [Startups:](https://www.financialexpress.com/budget/budget-2023s-major-tax-benefit-for-startups-loss-carry-forward-benefit-extended-2967718/) There was a slew of benefits announced for startups in the Union Budget 2023. Startups were allowed to carry forward losses for 7 years from the incorporation of the firms. This period was proposed to be increased to 10 years. The condition for holding 51% of the startup to avail of these schemes would also be relaxed if all shareholders continued to hold those shares. * [Extension of tax benefits for startups:](https://www.dailypioneer.com/2023/india/startups-incorporated-till-mar--2024-to-get-income-tax-benefits.html#:~:text=The%20Government%20on%20Wednesday%20proposed,incentives%20to%20encourage%20budding%20entrepreneurs.) A few startups were eligible for tax benefits if they were incorporated before April 1, 2023, but this has been extended up to April 1, 2024, as announced in the Union Budget 2023. * [Agriculture Accelerator Fund](https://www.thehindu.com/business/budget/accelerator-fund-will-drive-agriculture-towards-innovation-optimisation-of-resources/article66460172.ece#:~:text=An%20Agriculture%20Accelerator%20Fund%20will,for%20challenges%20faced%20by%20farmers.): Startups involved in the agriculture sector would benefit from this scheme announced in the Union Budget 2023, which aims to bring in reforms in the industry through innovative solutions. ### Conclusion Small businesses and startups are a critical part of the Indian economy and are vital to the country’s development. The sector has significantly contributed to employment generation, exports, and industrial output. The sector has great potential for further growth and expansion and can play an important role in the country’s economic development. The Union Budget 2023 made some great announcements for the sector, which are slated to help the sector greatly. The government must now focus on implementing the proposals, while the MSME sector and startups should fully benefit from the schemes available. We hope this article helped you learn about the various proposals for small businesses and startups in the Union Budget! Salt works to bring the conveniences of global banking for your business with local accounts to your fingertips. Want to know more about us? Give [the Salt website](https://www.salt.pe/) a visit! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Is Salt Different From PayPal?: International Transfer In India (PayPal Alternative) Author: Ankit Parasher Published: 2023-05-26 Category: Inward Remittance Meta Title: How Is Salt Different From PayPal?: International Transfer In India (PayPal Alternative) Meta Description: In this article, we will compare cross border payments solutions, Salt and PayPal, to understand the key differences between the two and what sets them apart. Tags: Salt fintech , Foreign Inward Remittance, Inward remittances, neobanks, CROSS BORDER PAYMENTS INDIA, top fintech companies , fintech companies in india , paypal alternatives, Paypal, neobanks in india, paypal alternative, paypal alternative in india, international money transfers, FIRA In Paypal URL: https://salt.pe/blog/paypal-salt-comparison ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-is-salt-different-from-paypal-18-1685096338367-compressed.jpg) PayPal Alternative For International Transfers With globalisation, cross-border transactions have become an integral part of businesses and individuals across the world. For India, with the advent of technology, transferring money across borders has become a lot easier, faster and more convenient with the help of neobanks in India.  However, despite all the advancements, several challenges still persist when it comes to international money transfers. Two of the most significant problems include the time it takes for the outward or inward remittances to reach its destination and the associated compliances involved.  This is where SALT, an Indian fintech startup and among the top fintech companies in India, comes into the picture. In recent years, Indian fintech startups have been disrupting the traditional financial services sector with innovative solutions for businesses and individuals.  SALT and PayPal both offer solutions for cross-border payments. In this article, we will compare SALT and PayPal to understand the key differences between the two and what sets them apart. What is SALT? ------------- ​[SALT is an Indian fintech startup](https://www.salt.pe/blog/salt-fintech) that aims to solve two major problems faced by businesses while carrying out international money transfers: the time it takes for the remittance to reach you and the associated compliances. SALT was founded in 2020 by Udita Pal and Ankit Parashar, both of whom have had firsthand experience with the difficulties of international business banking. The company offers a one-stop solution for all international money transfer needs and helps businesses with effortless cross border payments and the legal compliances at the least possible costs. ### Services Offered by SALT SALT offers a comprehensive solution for small businesses and startups looking to deal with international money transfer. SALT's [services](https://www.salt.pe/table) include automated RBI, MCA, and FEMA filings, management of pre-funding and post-funding compliance, and faster filings of FIRC and FCGPRS forms. SALT also helps businesses with generating valuation reports and operating a capital bank account. ### Key Features of SALT * Automated legal compliances * Effortless cross border payments * One-stop solution for all international money transfer needs * Best possible rates in the least possible time * No markup on conversion * Follows Google rates for converting currency to INR **What is PayPal?** ------------------- PayPal is an American multinational fintech company that operates a worldwide online payments system. It was founded in December 1998 and quickly grew to become one of the world's largest international money transfer companies. PayPal offers a wide range of services, including online payments, mobile payments, peer-to-peer (P2P) payments, and online cross border payments. PayPal is widely used by businesses and individuals for making cross border payments and is considered to be one of the most popular payment solutions globally. ### **Services Offered by PayPal** PayPal is an online payment platform that allows individuals and businesses to send and receive money, make payments, and withdraw funds. PayPal's services include personal payments, online shopping, invoicing, and international money transfer. PayPal also offers credit and debit card services, as well as payment gateway solutions for businesses. ### Key Features of PayPal * Online payments * Mobile payments * Peer-to-peer (P2P) payments * Online international money transfer * Widely accepted globally How is SALT different from PayPal? ---------------------------------- ![Paypal-Alternative-For-International-Payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/should-i-opt-for-paypal-or-salt-1685096456190-compressed.jpg) Salt And PayPal Comparison SALT and PayPal are both platforms that offer cross border payment services, but there are some key differences between the two platforms. These differences are listed below: * Fees: One of the biggest differences between Salt and PayPal is the fees that they charge for their services. PayPal charges a fee for each transaction, which varies depending on the country, the currency, and the amount being transferred; PayPal charges a minimum 3% of forex markup too. In contrast, Salt does not charge any markup on conversion, and usually follows the Google rate for converting currency to INR. Usually, the transaction fees charged by PayPal amount to 4.4% of the amount transferred with an added $0.3, while SALT charges a flat rate of 1.75%. * User Experience: Another difference between Salt and PayPal is the user experience. Salt is specifically designed to make international transactions easy and effortless. The platform helps businesses with legal compliances at the least possible costs, making it a convenient solution for those who frequently engage in international transactions. PayPal, on the other hand, has a wide range of services that cater to various needs, including online shopping and international money transfers to bank accounts. However, this versatility may come at the cost of a more complicated user experience. * Target Market: Salt and PayPal also differ in terms of their target market. Salt is primarily focused on helping Indian SMEs, startups, freelancers, agencies, and consultants with their international money transfer needs. PayPal, on the other hand, caters to a much broader range of customers, including individuals and businesses of all sizes. * Features: Another way that Salt and PayPal differ is in terms of the features that they offer. Salt's platform is designed specifically for cross border payments, offering automated legal compliances and effortless payments. PayPal, on the other hand, has a wider range of features, including online shopping, money transfers, and security features such as fraud protection. * Currency Conversion: [SALT](https://www.salt.pe/) deals in 6 major currencies (USD, EUR, GBP, AUD, HKD, SGD) and provides currency conversion at the lowest FX rate of 1.75% of the transaction. On the other hand, PayPal allows users to deal in more than 20 different currencies but charges a higher fee for currency conversion. * No Blocked Funds or Chargeback: At SALT, you can sit back and relax knowing there will be no blocked funds or chargebacks in the processing of your transactions. Again, PayPal can not guarantee that.  * Compliance Management: SALT offers a complete compliance management solution for businesses dealing with foreign investments, including pre-funding and post-funding compliance. For example, SALT helps with FIRC acquisition if inward remittance is a regular part of your business transactions. PayPal does not offer any compliance management services. Further, at SALT, you get to avail the services of a designated relationship manager for your global banking needs. Needless to mention, PayPal does not offer that.  Conclusion In conclusion, both Salt and PayPal are platforms that offer cross border payment services. However, there are a lot of differences between the two platforms that may make one platform more appealing to a particular customer.  SALT is specifically designed for Indian businesses and is one of the top fintech companies in India dealing with international money transfer, offering a comprehensive solution for cross border payments and compliance management, while PayPal is a well-established online payment platform. SALT's services include automated RBI, MCA, and FEMA writings, management of pre-funding and post-funding compliance, and faster writings of FIRC, FCGPRS forms. On the other hand, PayPal offers personal payments, online shopping, invoicing, and money transfers, but does not offer compliance management services. For those who frequently engage in international transactions, Salt may be the better choice due to its focus on legal compliances and its effortless payment system. Check out the [Salt blog](https://www.salt.pe/blog) to know more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Does A Clearing And Forwarding (CNF) Agent Help With Export Business? Author: Sudhanshu Choudhary Published: 2023-05-04 Category: Import Export Business Meta Title: How Does A Clearing And Forwarding (CNF) Agent Help With Export Business? Meta Description: A clearing and forwarding agent facilitates the export process and plays a vital role in business. Know how they help in detail in this blog. Tags: CNF Agent, Clearing and forwarding, CNF Agent Export, CNF Agent India, Import export business, import export business India URL: https://salt.pe/blog/clearing-and-forwarding-cnf-agent ![C&F-Agent](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-does-a-clearing-and-forwarding-agent-helps-with-export-business-1684577978331-compressed.jpg) Role of Clearing And Forwarding Agent With Export Business If you’re an exporter, you know that exporting goods from one country to another can often be a complex process. And if you aren’t one, you’ll inevitably find out the hard way.  Exporting goods involves several phases such as documentation, transportation, customs clearance, and logistics. To ensure that goods are transported smoothly and efficiently, many exporters rely on the services of a clearing and forwarding agent. This post will discuss how a clearing and forwarding agent helps with export business. Firstly - What is a Clearing and Forwarding Agent? -------------------------------------------------- A Clearing and Forwarding Agent (CNF Agent) is a specialised service provider that handles the logistics of exporting and importing goods from one country to another. They act as intermediaries between the exporter/importer and various transportation providers such as shipping lines, airlines, trucking companies, and customs authorities. Their primary role is to ensure that goods are transported smoothly and efficiently and that all necessary documentation and customs clearance procedures are completed.  CNF Agents have specialised knowledge and expertise in the export and import business, including regulations, documentation requirements, and customs procedures of different countries. They offer a range of services, including documentation, customs clearance, logistics management, transportation, consolidation of shipments, advice on the best transportation options, packaging requirements, and other aspects of the export and import process. How Does a CNF Agent  Help with Export Business? ------------------------------------------------ A Clearing and Forwarding Agent assists export businesses in various ways, including: ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/howdoesaclearingandforwardingagenthelpwithexportbusiness-1684823541740-compressed.jpg) ### **1\. Documentation:** Exporting goods requires a considerable amount of documentation, including invoices, packing lists, certificates of origin and bills of lading. A clearing and forwarding agent can help exporters prepare and manage all the necessary documentation, ensuring everything is in order, and the shipment complies with the importing country's regulations. ### **2\. Customs Clearance:** Customs clearance is one of the most critical aspects of exporting goods. A clearing and forwarding agent can help exporters navigate the customs clearance process, ensuring that all the necessary documents are in order and the goods comply with the importing country's regulations. They can also assist with paying duties and taxes, as well as any other fees that may be required. ### **3\. Logistics:** Exporting goods requires efficient logistics management. A clearing and forwarding agent can help exporters manage the transportation of goods from the factory or warehouse to the port of departure. They can also help with booking shipping containers, cargo insurance, and tracking shipments to ensure that goods are delivered to their destination on time and in good condition. ### **4\. Cost-Effective:** Working with a clearing and forwarding agent can be cost-effective for exporters. These agents have established relationships with shipping lines, airlines, and other transportation providers, allowing them to negotiate favourable rates for their clients. They can also help with the consolidation of shipments, which can reduce transportation costs. ### **5\. Expertise:** CNF Agent have specialised knowledge and expertise in the export business. They are familiar with different countries' regulations, documentation requirements, and customs procedures, which can help exporters avoid costly mistakes and delays. They can also advise on the best transportation options, packaging requirements, and other aspects of the export process. ### **6\. Risk Management:** CNF Agents can help exporters manage the risks of exporting goods. They can advise on the appropriate insurance coverage for shipments, help prepare documentation to comply with international trade regulations, and provide guidance on managing risks associated with different modes of transportation. ### **7\. Supply Chain Management:** CNF Agents can assist with managing the supply chain for exporters. They can help coordinate the different parties involved in the export process, such as the manufacturer, the transportation provider, the customs authorities, and the importer. **Clearing and Forwarding Agents are the real OGs!** Again, exporting goods from one country to another can be a complex process that requires specialised knowledge and expertise. Working with a clearing and forwarding agent can help exporters navigate the complexities of the export business, ensuring that goods are transported efficiently, and all the necessary documentation and customs clearance procedures are completed. Providing services, including documentation, customs clearance, logistics, cost-effective solutions, and expertise, clearing, and forwarding agents can help exporters expand their business and reach new markets. Salt is a neo-bank operating in India to simplify international banking for startups and business enterprises. Give [our website](https://salt.pe/) a visit today to find out more about us! As an exporter, you know that receiving payment for your goods or services is just the beginning of a successful transaction. To fully realise the benefits of your exports, you must obtain a BRC from DGFT (Directorate General of Foreign Trade). In this post, learn [how to get the Bank Realisation Certificate from the DGFT](https://write.superblog.ai/sites/supername/salt/posts/untitled-draft-post-clh8r8neh1445393tpasts9r774/In%20this%20post,%20learn%20how%20to%20get%20the%20Bank%20Realisation%20Certificate%20from%20the%20DGFT%20so%20that%20you%20can%20take%20your%20export%20business%20to%20new%20heights!) so that you can take your export business to new heights! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## GST Refunds On Export of Good Or Services Through FIRC/FIRS Author: Sudhanshu Choudhary Published: 2023-05-03 Category: FIRC/ FIRA Meta Title: GST Refunds On Export of Good Or Services (FIRC) Meta Description: Looking to claim GST refunds for your exports? Learn about the importance of a Foreign Inward Remittance Certificate (FIRC) and the process of obtaining it. Tags: Foreign Inward Remittance, Inward remittances, FIRC Certificate, GST refunds , GST Refund, FIRC for GST Refund URL: https://salt.pe/blog/firs-for-gst-refund ​ ![GST-Refunds-Through-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/firc-for-gst-refunds-1683789256690-compressed.jpg) [Foreign Inward Remittance Certificate](https://youtu.be/ma_0fbzfZl4) (FIRC) is a document issued by banks in India as legal proof of inward remittance of foreign currency to Indian accounts. FIRC is crucial to claim GST refunds, as it helps authenticate the inward remittance received from an overseas party.  In this article, we will discuss the importance of FIRC for GST refunds, the procedure for obtaining it, and tips for a smooth refund process. Contents * [What is FIRC?](#what-is-firc) * [Importance of FIRS/FIRC for GST refunds](#importance-of-firsfirc-for-gst-refunds) * [Proof of Inward Remittance of Foreign Currency:](#proof-of-inward-remittance-of-foreign-currency)  * [Authenticate the Payment Received:](#authenticate-the-payment-received)  * [Mandatory Requirement:](#mandatory-requirement)  * [Verification by the GST Authorities:](#verification-by-the-gst-authorities)  * [Procedure for obtaining FIRC](#procedure-for-obtaining-firc) * [Get Free FIRC for international transactions with SALT](#get-free-firc-for-international-transactions-with-salt)  * [GST refund process with FIRC](#gst-refund-process-with-firc) * [Tips for a smooth GST refund process with FIRC](#tips-for-a-smooth-gst-refund-process-with-firc) * [Conclusion](#conclusion) * [FAQs](#faqs) What is FIRC? ------------- FIRC stands for [Foreign Inward Remittance Certificate](https://salt.pe/blog/foreign-inward-remittance-certificate-explained), which is a document issued by banks in India to individuals or companies who receive money from abroad. As mentioned above, this certificate serves as proof of inward remittances of foreign currency.  ![FIRS-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-certificate-firc-1683273677669-compressed.png) **FIRS/FIRC** It includes details such as the beneficiary's name and address, the inward remittance amount and currency, and the transaction date. FIRC is a crucial document for several purposes, including claiming GST refunds, as it helps to authenticate the payment received from an overseas party. Importance of FIRS/FIRC for GST refunds --------------------------------------- FIRC (Foreign Inward Remittance Certificate) is critical if you’re looking at claiming GST refunds in India. Here are the reasons why FIRC is important for GST refunds: ### Proof of Inward Remittance of Foreign Currency:  FIRC serves as evidence of the inward remittance of foreign currency to an individual or a company in India. This proof is required to claim a GST refund for any goods or services exported from India. ### Authenticate the Payment Received:  FIRC helps to authenticate the payment received from an overseas party. It ensures that the GST refund being claimed is genuine and not fraudulent. ### Mandatory Requirement:  FIRC is mandatory for claiming GST refunds for exports of goods or services. Without FIRC, the claim for a GST refund may not be accepted. ### Verification by the GST Authorities:  The GST authorities verify FIRC to ensure that the GST refund being claimed is genuine and that the refund amount claimed is correct. **Procedure for obtaining FIRC** -------------------------------- Here is the procedure for obtaining FIRC (Foreign Inward Remittance Certificate) in India: ### Provide Details to the Bank: Provide the necessary details regarding the inward remittance to your bank, including the purpose of the transaction, the amount, and the name and address of the remitting party. ### Submit Supporting Documents: Submit any supporting documents, such as invoices, purchase orders, or contracts related to the inward remittance, to the bank. ### Await Remittance: Await said inward remittance of the foreign currency in the bank account.  ### Request for FIRC:  Request the bank to issue a FIRC. The bank will verify the details and issue it. ### Collect FIRC: Collect FIRC from the bank. The FIRC will include details such as the name and address of the beneficiary, the amount and currency of the inward remittance, and the transaction date. ### Keep FIRC Safe: Keep the FIRC safe as required for various purposes, including claiming GST refunds. ### Payment for each FIRC: Bank deducts these payments from the bank account. ### Get Free FIRC for international transactions with SALT  Salt provides free FIRC for every international transaction completed on our platform. Our users can download FIRC on the dashboard by simply logging into their Salt account.  **GST refund process with FIRC** -------------------------------- Here is the GST refund process with FIRC (Foreign Inward Remittance Certificate): 1. Eligibility for GST Refunds with FIRC: To be eligible for GST refunds with FIRC, the goods or services must have been exported outside of India, and the payment received as inward remittance must be in foreign currency. 2. Supporting Documents Required for GST Refund Application with FIRC: Supporting documents required for GST refund application with FIRC include the invoice issued for the export of goods or services, proof of inward remittances of foreign currency through FIRC, and a copy of the shipping bill filed with the customs authorities. 3. Filing GST Refund Application with FIRC: To claim a GST refund with FIRC, file the GST refund application along with the supporting documents on the GST portal. Ensure that the details in the application and supporting documents match those in FIRC. 4. Verification by GST Authorities: The GST authorities will verify the FIRC and supporting documents submitted along with the GST refund application. They will ensure that the GST refund being claimed is genuine and that the refund amount is correct. 5. GST Refund Processed: Once the GST authorities verify the FIRC and supporting documents, they will process the refund. The refund amount will be credited to the bank account linked to the GST registration. **Tips for a smooth GST refund process with FIRC** -------------------------------------------------- Here are some tips for a smooth GST refund process with FIRC (Foreign Inward Remittance Certificate): 1. Ensure Accuracy of FIRC Details: Ensure that the details in FIRC, such as the name and address of the beneficiary, the amount and currency of the inward remittances, and the date of the transaction, are accurate and match with those in the supporting documents and the GST refund application. 2. Submit Supporting Documents with the Correct Details: Submit supporting documents, such as invoices, purchase orders, or contracts related to the transaction, with the correct details, including the GSTIN, invoice number, and date. 3. Verify Eligibility Criteria: Ensure that the goods or services exported outside India are eligible for GST refunds and that the payment received is in foreign currency. 4. File GST Refund Application on Time: File the GST refund application on time within the prescribed timeline to avoid delays in processing. 5. Keep Track of GST Refund Application Status: Keep track of the status of the GST refund application on the GST portal to ensure that the application is being processed and there are no issues. 6. Contact GST Authorities if Required: In case of any queries or issues, contact the GST authorities for assistance and clarification. FAQs ---- * ### What is FIRC? Banks in India issue a document called Foreign Inward Remittance Certificate (FIRC) to individuals or companies who receive money from abroad. This certificate acts as evidence of the foreign currency that has been received. It contains information such as the recipient's name and address, the amount and currency of the inward remittance, and the date of the transaction. * ### Is FIRC required for GST refund? Yes, a Foreign Inward Remittance Certificate (FIRC) is one of the documents that may be required for claiming a Goods and Services Tax (GST) refund in India. Specifically, if a taxpayer has received payment in foreign currency for exports or supplies, they may need to provide a copy of the FIRC along with other documents to claim a GST refund. The FIRC serves as evidence of the inward remittance received in foreign currency from outside India.  **Conclusion** In conclusion, FIRC (Foreign Inward Remittance Certificate) is essential for claiming GST refunds for exports where the payment received as inward remittance is in foreign currency. It is necessary to ensure the accuracy of FIRC details, submit supporting documents with the correct details, verify eligibility criteria, file the GST refund application on time, keep track of the application status, and contact GST authorities if required for a smooth and hassle-free GST refund process with FIRC. By following these tips, businesses can ensure that their GST refunds are processed efficiently and within the prescribed timeline. Are you operating a business in India, and looking for an easy global banking solution? SALT Fintech aims to simplify global banking for small businesses like you, enabling you to easily manage your finances through local accounts. We aim to provide a hassle-free banking experience that saves you time and effort. Visit the Salt Fintech [website](https://www.salt.pe/) today to discover more about our services, and find out how we can help you to achieve your financial objectives! ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Offshore Bank Accounts for Businesses: International Business Finance Author: Udita Pal Published: 2023-04-20 Category: International Business Meta Description: What is offshore banking, and how do offshore bank accounts work? If you seek clarity on the topic post SVB collapse, you have come to the right place. Tags: SVB Indian Companies, SVB Collapse , offshore banking, offshore bank accounts, Offshore account for business, Business offshore account, Offshore bank for india URL: https://salt.pe/blog/offshore-bank-accounts-for-businesses ![Offshore-bank-account](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/offshore-bank-account-for-your-businesses-1-1683272761514-compressed.jpg) In the recent times, events like the [SVB collapse and the downfall of Signature Bank](https://www.theguardian.com/business/2023/mar/17/why-silicon-valley-bank-collapsed-svb-fail) has put many aspects of the financial world, including offshore banking, under a microscope. This has led to increased scrutiny of banking practices. However, it’s undeniable that offshore bank accounts are beneficial and crucial for those engaged in international operations. In this blog, we'll explore the basics of ‘what is offshore banking?’ and how offshore bank accounts can benefit businesses, as well as important considerations to keep in mind in light of the [SVB collapse](https://www.salt.pe/blog/fdic-insurance-for-svb-depositors) and subsequent regulatory developments.  Whether you're considering offshore bank accounts or simply want to learn more about this topic, read on to discover what offshore banking is, how it works, and how it can benefit your business. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-should-i-open-a-offshore-bank-account-1-1683273106017-compressed.jpg) Why it's helpful to open offshore account as a business What is Offshore Banking? ------------------------- Offshore banking refers to opening a bank account outside of the country where the account holder resides or does business. This can be in a tax haven or low-tax jurisdiction, such as the Cayman Islands, Bermuda, or Switzerland. The main benefit of offshore banking is that it allows businesses to access favourable tax policies, reduced regulations, and increased financial privacy. Offshore bank accounts can provide a range of benefits to international businesses, including: ### Tax Optimisation:  Many offshore jurisdictions have favourable tax policies that can help businesses minimise their tax liabilities. For example, some countries have lower corporate tax rates or may not tax certain types of income, such as dividends or capital gains. ### Reduced Regulations: Offshore jurisdictions may have less stringent regulations and reporting requirements than the home country of the business. This can reduce administrative burdens and costs associated with compliance. ### Diversification: Maintaining offshore bank accounts can provide businesses with greater diversification of assets and currencies. This can help mitigate risks associated with currency fluctuations or political instability in the home country. It's important to note that while offshore bank accounts can offer these benefits, businesses must ensure that they are abiding by all applicable laws and regulations in both their home country and the offshore jurisdiction. This includes reporting any income earned or assets held in offshore bank accounts to tax authorities. **How to open an offshore bank account**   ------------------------------------------ Now, let’s find out how you can create an offshore bank account: ### **The basic requirements** Opening an offshore bank account is similar to opening a usual bank account in your home country in many ways. You'll need to provide personal information such as your name, date of birth, address, citizenship, and occupation, and verify your identity with a passport or other ID. Banks also verify your residence or physical address, which can be done with a utility bill. Some offshore centres require an apostille stamp, which can be obtained from a nearby government office. Offshore bank accounts offer the option to hold funds in different currencies, which can be beneficial for international businesses. However, there are consequences to consider, such as foreign tax liabilities and currency exchange fees. While holding funds in certain currencies can earn interest, exchanging currencies can be costly depending on the fees and rates offered. Offshore bank accounts are funded via [international wire transfers](https://salt.pe/blog/what-is-a-wire-transfer), usually. However, it’s important to remember that this process often incurs steep fees. While wire transfers are simple, pricing varies between banks, so it's important to find good deals. Of course, domestic cheques aren't accepted, and in-person deposits are impractical. ### **Making Withdrawals** Offshore banks offer various withdrawal options, including debit cards, but fees can add up, so withdrawing large amounts at once can minimise costs. Cheques are not recommended due to confidentiality concerns, and they may not be accepted locally. However, using two accounts, one offshore and one domestic, can provide greater privacy and security while also allowing for convenient access to funds through wire transfers. ### **Get Started with an Offshore Bank Account for your Business** As recent events such as the SVB collapse have shown, it's essential for businesses to make informed decisions, especially if you are operating a small business or a startup planning to go global. By taking a responsible and transparent approach, businesses can leverage the benefits of offshore bank accounts while minimising potential risks. Moreover, it's always the best option to seek advice from qualified professionals to ensure that your offshore bank accounts creation is sound and legally compliant. [Multi-currency accounts](https://salt.pe/blog/multi-currency-accounts-for-businesses#:~:text=Multi%2Dcurrency%20accounts%2C%20like%20those,businesses%20worldwide%20can't%20overlook.) brought about by SALT can help businesses with international transactions that are less complex, and completely remove foreign exchange markup charges. Give [the Salt website](https://salt.pe/) a visit to learn about all the benefits of global banking we can provide your business with! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Who Are The Founders of Salt? : FinTech startup in India Author: Ankit Parasher Published: 2023-04-20 Category: Salt Fintech Meta Title: Who Are The Founders of Salt? : FinTech Startup in India Meta Description: Learn about the backgrounds and expertise of the founders behind SALT, an innovative digital-only cross-border money transfers for SMEs. Tags: Salt fintech , receive international payments , cross border transfer , cross border banking , CROSS BORDER PAYMENTS INDIA, FIRA In Foreign payments, global payments , receive foreign payments URL: https://salt.pe/blog/founders-of-salt-fintech-startup ![Salt-fintech-founders](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/who-are-the-founders-of-salt-20-1682407478725-compressed.jpg) Salt was co-founded in 2020 by Ankit Parasher and Udita Pal.  SALT is a fintech startup that is changing the game for SMEs engaged in cross-border trade. Their digital-only platform provides a seamless payment experience for service provides, exporters and importers, and freelancers enabling them to receive international payments easily and efficiently. At Salt Fintech, the team understands SMEs' challenges when dealing with cross-border money transfers. Traditional banking services often have painfully high fees, complex documentation requirements, and annoyingly lengthy processing times. The Salt platform eliminates these obstacles with a comprehensive suite of services that streamline the entire process, from document management to workflow automation. With SALT, SMEs can easily manage their cross-border money transfers and receive foreign payments from start to finish without leaving their platform. They offer a range of solutions catering to businesses' unique needs, including banking services, document management. Its technology has real-time payment monitoring to help companies keep tabs on their money and make educated choices. The SALT staff is committed to lowering the barriers to receive international payments processing for small and medium-sized enterprises. The group believes businesses of all sizes should have access to the tools necessary to become global. Their system is designed to aid small and medium-sized enterprises (SMEs) pursue global expansion. SALT: A Fintech Startup with a Visionary Founding Team ------------------------------------------------------ Back to the basics: SALT is an innovative fintech startup based in India that addresses three of the most significant challenges encountered during international transactions: the time it takes for remittances to arrive, the regulatory compliance issues accompanying them and the lack of transparency in the charges and fee. We specialise in facilitating seamless international payments for Indian businesses while helping them navigate complex legal requirements at a minimal cost. SALT's cutting-edge technology and streamlined processes ensure that our clients can easily conduct cross-border transactions, regardless of location or industry. Our mission is to revolutionise the world of international payments by providing a reliable, efficient, and affordable solution that eliminates the hassle and cost associated with traditional cross-border payment methods. With SALT Fintech, Indian businesses can enjoy a hassle-free banking experience without worrying about regulatory compliance issues or the lengthy wait times typically associated with international transactions. ### Udita Pal, Co-Founder of SALT ![Udita-Pal-cofounder-of-Salt](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/udita-pal-founder-of-salt-2-1682407624794-compressed.jpg) Udita Pal, Co-founder of Salt Udita Pal graduated from a prominent university in India with a bachelor's degree in mass communication in 2017. She has worked with several leading startups, such as Opentalk, Tapchief, and Manch, where she worked on product growth, marketing, and brand development. She has also worked as a consultant to over 35 startups worldwide, helping them scale from zero to one. With her strong experience in the startup world, Udita is now a driving force behind SALT's innovative platform, which leverages blockchain technology to provide more efficient and secure lending services. She has played a vital role in building the company's brand and expanding its reach within India and internationally to receive foreign payments. ### Ankit Parasher, Co-Founder of SALT ![Ankit-Parasher-Cofounder-Salt](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/ankit-parasher-founder-of-salt-2-1682407576525-compressed.jpg) Ankit Parasher, co-founder of Salt  Ankit Parasher holds a bachelor's degree in electronics engineering from IIT Kharagpur and a bachelor's degree in law. Previously, he co-founded LetsTransport, a technology-driven logistics platform that has raised over $35 million in funding. Thanks to his innovative thinking and entrepreneurial spirit, Ankit has been recognized as one of Forbes Asia and India's 30 under 30. At SALT, Ankit is focused on driving the company's technological development, using his expertise to build a secure, reliable, and efficient lending platform. With his deep understanding of logistics and transportation, Ankit is well-positioned to help SALT streamline its operations and reduce costs, ultimately delivering more value to its customers. Udita and Ankit have, in SALT, delivered a fintech platform that is innovative, affordable, and accessible to businesses of all sizes. SALT's innovative lending approach is changing how businesses access credit and providing a much-needed solution to a long-standing problem in the traditional banking industry. In conclusion, the founding team of Udita Pal and Ankit Parasher has brought a unique set of skills, experience, and vision to SALT. Their passion for innovation and entrepreneurship has led them to create a platform that has the potential to revolutionize the way businesses manage their international transactions. With their track record of success and dedication to their mission, it's clear that SALT has a bright future. At last ------- In a world where cross-border business is becoming increasingly crucial to large economies, SALT is leading the way in providing innovative solutions that empower SMEs to succeed globally. The platform is designed to simplify the complex process of cross-border money transfers and the compliances that comes with it, making it easy for businesses to expand their operations and reach new markets.  Read more in detail : [All About Salt Fintech - Why was the startup built?](https://www.salt.pe/blog/salt-fintech)​ With SALT, SMEs can confidently conduct and receive international payments, knowing they have access to world-class banking, documentation management, and workflow automation solutions at the best possible rates. At SALT, businesses need simple and accessible banking solutions. That's why we strive to make global payments effortless for you by offering local accounts and convenient financial management tools. Our website is your gateway to discovering more about our services and how we can empower your business. Please don't wait any longer; join us today and take your business to new heights! Our mission at SALT is to simplify international banking and global payments for companies like yours so that you can keep track of your money more efficiently. To find out more about us, visit our [website](https://www.salt.pe/) right now. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Foreign Inward Remittance Advice (FIRA) - International Money Transfer Author: Ankit Parasher Published: 2023-04-19 Category: FIRC/ FIRA Meta Description: Learn the process and purpose of Foreign Inward Remittance Advice (FIRA), a document that informs about foreign remittances to India. Tags: Foreign Inward Remittance, Inward remittances, RBI guideline for firc, FIRA Requirement, FIRA In Paypal, FIRA Full form, FIRA Issue, FIRA, FIRA Guideline, FIRA In Foreign payments URL: https://salt.pe/blog/foreign-inward-remittance-advice-fira ![Foreign-Inward-Remittance-Advice](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-advice-fira-international-money-transfer-1681972493864-compressed.jpg) Foreign Inward Remittance Advice (FIRA) If your business is about to receive inward remittance through international money transfers to India, you may want to learn about Foreign Inward Remittance Advice (FIRA) first. FIRA serves as a document that informs you about the foreign remittance made to your account, allowing you to keep track of your incoming funds and ensuring that you receive them promptly.  Contents * [What is Foreign Inward Remittance?](#what-is-foreign-inward-remittance) * [How can inward remittances be made to India?](#how-can-inward-remittances-be-made-to-india) * [RDA](#rda) * [MTSS](#mtss) * [Purpose of Foreign Inward Remittance Advice](#purpose-of-foreign-inward-remittance-advice) * [Process for Foreign Inward Remittance Advice](#process-for-foreign-inward-remittance-advice) In this article, we will examine the purpose and process of FIRA in detail so that you can better understand this important document. _But first, the basics of inward remittances:_ What is Foreign Inward Remittance? ---------------------------------- [Foreign Inward Remittance (FIR)](https://www.salt.pe/blog/fema-guidelines-for-foreign-inward-remittance) is a term used to describe the transfer of money from a foreign source to an individual or entity in India. It can be a fund transfer from a **foreign bank account** to an **Indian bank account** or a transfer of cash or other financial instruments from a foreign entity to an Indian entity. FIR can be used for several purposes - personal or business transactions, investments, or even as a gift from a companion or family member living abroad. Foreign Inward Remittance plays a vital role in the Indian economy, as it contributes to the country's foreign exchange reserves and helps promote trade and investment between India and other countries. How can inward remittances be made to India? -------------------------------------------- Inward remittances to India can be made through two RBI-mandated methods, known as the **RDA (Rupee Drawing Arrangement)** and **MTSS (Money Transfer Service Scheme)**. Let’s find out a little more about them: ### RDA **RDA (Rupee Drawing Arrangement)** is a facility that enables Non-Resident Indians (NRIs) and Persons of Indian Origin (PIOs) to remit money to India in Indian Rupees. Under this arrangement, the overseas bank debits the remitter's account in foreign currency and sends the equivalent amount in Indian rupees to the beneficiary's account in India. RDA is a simple and convenient way of sending money to India, eliminating the need for currency conversion. ### MTSS On the other hand, **MTSS (Money Transfer Service Scheme)** is a cross-border remittance service that allows individuals to send money to India from abroad through authorised money transfer agents. The Reserve Bank of India governs MTSS and aims to facilitate the flow of small remittances from overseas Indians to their families in India. The maximum amount that can be remitted under MTSS is USD 2,500 per transaction, and any person can avail of the service, irrespective of their nationality. It’s important to note that you’re only allowed to receive up to 30 MTSS-facilitated inward remittances in a year. Both RDA and MTSS are popular channels for inward remittances to India. The channel choice depends on the remitter's preference, the amount of money to be sent, and the purpose of the transaction. It is important to note that any inward remittance to India must comply with the guidelines and regulations of the Reserve Bank of India. ![Foreign-Inward-Remittance-Advice](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-th-use-of-fira-firc-17-1681972582681-compressed.jpg) Use of FIRC/ FIRA Purpose of Foreign Inward Remittance Advice ------------------------------------------- The purpose of Foreign Inward Remittance Advice (FIRA) document is to: 1. Inform the beneficiary in India about the foreign inward remittance made to their account from abroad. 2. Provide details about the inward remittance, such as the amount, the currency, and the sender's details. 3. Serve as proof of the inward remittance, which can be useful for various purposes such as tax filings or compliance with foreign exchange regulations. 4. Allow the beneficiary to keep track of their incoming funds and ensure they are received promptly. 5. Facilitate compliance with the foreign inward remittance RBI guidelines and reporting requirements for foreign remittances. 6. Help the authorised dealer banks to maintain proper records of foreign exchange transactions. 7. Assist in monitoring and regulating foreign exchange transactions in India. Process for Foreign Inward Remittance Advice -------------------------------------------- The process for Foreign Inward Remittance Advice (FIRA) involves the following steps: ### Step 1:  #### Remittance: The first step is the inward remittance of funds from abroad to the beneficiary's account in India. This can be done via various tracks, such as wire transfers, online banking, or a correspondent bank. ### Step 2:  #### Reporting to RBI: The next step is reporting the foreign inward remittance to the RBI by the authorised dealer bank. This is done through the Electronic Reporting System (ERS). The authorised dealer bank must report the remittance within two working days of receiving the funds. ### Step 3:  #### Generation of FIRA: After the inward remittance has been reported to the RBI, the authorised dealer bank generates the FIRA. The FIRA contains details such as the beneficiary's name and address, the remittance amount, the currency, and the sender's details. The FIRA is then sent to the beneficiary's registered email address or by post to their registered address. ### Step 4:  #### Delivery of FIRA: Once the FIRA has been generated, it is delivered to the beneficiary. The beneficiary can download and print the document if the FIRA is emailed. The beneficiary will receive a physical copy of the FIRA if it is sent by post. ### Conclusion Foreign Inward Remittance Advice (FIRA) is an important document for beneficiaries in India who receive foreign inward remittances. It serves as proof of the remittance and helps the beneficiary keep track of their incoming funds. The process of FIRA involves inward remittance, reporting said remittance as per RBI guidelines, generation of FIRA, and delivery of FIRA. By understanding the purpose and process of FIRA, you can ensure that you receive foreign inward remittances promptly and hassle-free. Are you a  business in India looking for ease of global banking? SALT can help you out! We are a fintech focusing on making global banking easy for Indian businesses.  Salt fintech provides  Give our website a visit today to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## ACH Vs. WIRE: Which is the best option for USD Payments? Author: Ankit Parasher Published: 2023-04-13 Category: ACH Transactions Meta Title: ACH Vs. WIRE: Which is the best option for USD Payments? Meta Description: There are multiple ways to initiate payments in USD like ACH, WIRE, etc. But which is the best option to go with? Read to find out. Tags: SWIFT interntaional, international money transfers, International Bank a/c , USA To India, USD To INR transfer , ach and wire, Wire vs ach, USD in ach, usd in wire, usd PAYMENTS , WIRE international, ACH international URL: https://salt.pe/blog/ach-vs-wire-transfer ![ACH-Vs-WIRE](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/ach-vs-wire-which-is-the-best-options-of-usd-payments-14-1681474762360-compressed.jpg) ACH Vs WIRE Transfer We’re all well past the point of acknowledging how rapidly tech is evolving. Because it already has - enough to reinvent how we go about nearly every daily task and chore.  Including managing business finances. Electronic payments are popular because their advantages are hard to ignore - they are convenient, cost-efficient, and easy. And while there are many ways to transfer funds from one person to another, the easiest methods today are Automated Clearing House (ACH) and WIRE transfer.  But how are they different from each other, and which is the best option? To determine which bank transfer method is superior, it is important to understand the workings of both and then contemplate the pros and cons.  ![ACH-PAYMENTS-NACHA](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-ach-works-1681379251313-compressed.jpg) ([Source](https://www.ir.com/guides/ach-payments)) | [How does ACH work?](https://www.salt.pe/blog/how-to-make-ach-transaction)​ ACH refers to a digital money transfer process through the Automated Clearing House network. It enables both personal and commercial transactions and direct bank-to-bank payments. ACH transactions involve any digital payment made by one individual to another or to any business. For example, recurring utility bills, subscription fees, tax refunds, B2B transactions, etc. Any ACH transaction can’t be processed without the following parties: ### 1\. The Originator:  The originator is the person who initiates a payment request. The Originator’s financial institution: The Originating Depository Financial Institution (ODFI) refers to the bank where the originator has their account.  ### 2\. An ACH operator ### 3\. The receiver’s financial institution:  The Receiving Depository Financial Institution (RDFI) refers to the bank where the receiver has their account.  ### 4\. The Receiver:  The receiver is the person who is meant to receive the payment on the other side.  **Types of ACH payments** There are two types of [ACH payments](https://www.salt.pe/blog/how-to-make-ach-transaction); credit transfer and direct debit payment. ACH credits are the payments where one ‘pushes’ out money from their bank accounts. Examples of ACH credit can be any retail payments made by a customer, organisations rolling out the salaries and pensions, providing dividends to the shareholders, non-urgent business-to-business payments, and more.  ACH debit payments are the payments where the money is ‘pulled’ from your account, in the cases of utility dues, insurance premiums, interests, mortgages, etc., without any intervention. The decided amount gets deducted from the account on its own each month.  **What is WIRE?** ----------------- ​[WIRE transfers](https://www.salt.pe/blog/what-is-a-wire-transfer) allow an individual to transfer money electronically even when they are in different geographical locations. The money is transferred from one bank account to another without the involvement of cash. Instead of cash, the following information is shared with the bank: * Name, address, and bank account number of the recipient * IFSC code of the recipient’s bank * SWIFT (Society for Worldwide Interbank Financial Telecommunication) /BIC (Business Identifier Code) number of sender and receiver bank * The amount that is to be transferred * The reason for the transfer  Wire transfers are typically used to transfer large amounts of money quickly, and that requires a certain fee to be paid for the use of the services.  ACH Vs. WIRE ------------ The following is the side-by-side comparison of ACH and Wire transfers. Comparing the two options in this manner will make it easier to contemplate which one is better under what circumstances. ![ACH-VS-WIRE-Comparison](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-vs-ach-which-one-do-i-prefer-1681824363015-compressed.jpg) ACH - WIRE Comparison ACH Vs. WIRE: Which is the best option for USD Payments? -------------------------------------------------------- Both ACH and WIRE facilitate payments in USD. Wire transfer is better in situations where a huge amount of funds are to be transferred urgently. These transfers are initiated by the banks, which makes it easier, but a fee is to be paid for the use of the services.  On the other hand, ACH is ideal for smaller transactions that are non-urgent. They might take some time to get credited but are usually free of cost. Hence, both of them are important and helpful in different ways and can help expedite the process of money transfer. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Much Money Can Be Sent From the USA to India? Author: Ankit Parasher Published: 2023-04-12 Category: Inward Remittance Meta Title: How Much Money Can Be Sent From the USA to India? Meta Description: This post will discuss the amount of money you may send from the US to India, and the rules and compliance requirements in such cross border payments. Tags: bank transfer, cross border transfer , CROSS BORDER PAYMENTS INDIA, cross border transaction, international money transfers, USA To India, online money transfer services, Usa To India Transfer, USD To INR transfer URL: https://salt.pe/blog/usa-to-india-money-transfer ![Send-Money-From-USA-To-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-much-money-can-be-sent-from-the-usa-to-india-1681360007523-compressed.jpg) Sending money from the USA to India can be a common practice for many individuals and businesses, using online money transfer services or otherwise. Whether it's for family support, business transactions, or investment purposes, it's essential to understand how to transfer money from the USA to India, and the limits and regulations associated with international money transfers. In this article, we will explore the maximum amount of money that can be sent from the USA to India and the regulations and compliance requirements that must be met. Understanding the restrictions and laws associated with [international money transfers](https://www.salt.pe/blog/how-to-receive-money-from-abroad-to-india) can help ensure a smooth and successful transaction. The article will also cover different methods of sending money and the costs associated with each when it comes to the question- ‘how to transfer money from the USA to India?’. Knowing the rules and regulations to ensure compliance and avoid penalties or fines is essential. Amount of money I can transfer from the USA to India ---------------------------------------------------- There is no hard limit on the money amount one can transfer from the USA to India in most cases, but regulations and compliance requirements must be met. According to the US Treasury Department, the Financial Crimes Enforcement Network (FinCEN) [requires](https://www.fincen.gov/resources/statutes-and-regulations/bank-secrecy-act) that financial institutions must file a Currency Transaction Report (CTR) for transactions which are over $10,000. This ensures compliance with anti-money laundering laws and detects illegal activities such as money laundering or tax evasion. In India, inward remittances from the USA can be received through two methods as regulated by the RBI: [Rupee Drawing Arrangement (RDA) and Money Transfer Service Scheme (MTSS)](https://www.rbi.org.in/scripts/FS_FAQs.aspx?Id=112). While the RDA scheme comes with no upper limit for inward remittances for personal purposes (commercial remittances are capped at INR 15 lakhs), through MTSS there’s a hard limit of $2500 for inward remittances. Moreover, you can only receive up to 30 MTSS transfers annually.  Additionally, different financial institutions and online money transfer services may have their limits and fees for international money transfers to India, so it's essential to check with your specific provider for more information. How to Transfer Money from the USA to India? -------------------------------------------- There are several methods for cross border payments from the USA to India, such as online money transfer services- each with its own advantages and disadvantages. Some popular methods include: ### Bank Transfer:  This is one of the most common methods of sending money from the USA to India. You can transfer money from your bank account in the USA to a bank account in India.  * ACH (Automated Clearing House): ACH is an electronic network for financial transactions in the United States. It enables bank-to-bank funds transfers, including direct deposit, payroll, and bill payments. ACH transfers are typically low-cost and take several business days to complete. Here's on [how to make ACH transaction](https://www.salt.pe/blog/how-to-make-ach-transaction). * Wire Transfer: A wire transfer is an electronic transfer of funds from one bank to another. It is a fast and secure way to transfer money domestically or internationally. Wire transfers usually incur higher fees than other transfers but are often completed within the same business day. * Fedwire: Fedwire is a real-time gross settlement system used by the Federal Reserve Banks to facilitate large-value transfers between banks in the United States. Fedwire transfers are used for high-value transactions that require immediate settlement. * SWIFT: SWIFT is a global financial messaging network that facilitates funds transfer between banks worldwide. SWIFT transfers are secure and reliable, but they can be expensive and may take several business days to complete. > Salt helps Indian businesses make bank transfer from USA to India in 24-48 hours at a flat fee of 1.75% of the amount.  ![USD-To-INR](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-1681360186064-compressed.jpg) USD To INR Transfer  Online Money Transfer Services:  Online money transfer services allow you to make cross border payments from the USA to India in real-time or near real-time. Examples of these services include PayPal, Western Union, MoneyGram, and Xoom. These services may be faster but costly due to additional fees and exchange rates. ### Credit/Debit Card:  You can also use your credit or debit card to send money from the USA to India. This method is usually faster than bank transfers and may take you only a few hours to receive the money. However, it's important to know that this method may also be subject to additional fees and exchange rates. ### Global Neobanking:  Global Neobanks are developing payment infrastructure for online money transfer services too. While traditional banks take longer for cross border payments, neobanks like SALT curate our solutions specifically so as to ease global banking for you. With SALT, [international money transfers](https://www.salt.pe/remittance) from the USA to India and other inward remittances for small businesses and startups are faster, and the fees are much lower.   ### Cheque:  You can also send a cheque from the USA to India. This method is usually slower and may take up to 2-3 weeks to receive the money. It's also subject to additional fees and exchange rates. It's important to consider each method's speed, cost, and security before deciding. Knowing the rules and regulations associated with international money transfers is also important, as mentioned above. **Concluding Remarks** ---------------------- In conclusion, ‘how to transfer money from the USA to India?’ and the actual amount of money that can be sent from the USA to India varies depending on the transfer method and the regulations of both countries. Considering each method's speed, cost, and security and the rules and regulations associated with international money transfers is essential.  It's also important to be aware of any taxes that may be imposed on money transferred from the USA to India. It is recommended to consult with a financial advisor or a lawyer for more information on the regulations and compliance requirements for international money transfers. Looking for easy B2B transactions in a global business environment? SALT is all about bringing you the convenience of global banking through local accounts! Give [our website](https://www.salt.pe/) a visit today to find out more about us! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Find IBAN Number : International Bank Account Number Author: Ankit Parasher Published: 2023-04-11 Category: Inward Remittance Meta Title: How To Find IBAN Number Meta Description: Locating your IBAN is a simple process, and you may do it in different methods for cross border payments. Discover the options available here. Tags: IBAN Code, CROSS BORDER PAYMENTS INDIA, international money transfers, IBAN Number, IBAN , IBAN international , IBAN Foreign transfer , International Bank a/c , International bANK A/C NO. URL: https://salt.pe/blog/null ![IBAN-Number](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-find-iban-number-1681893832209-compressed.jpg) International Bank Account Number The IBAN number (International Bank Account Number) is a standardised identifier associated with a bank account used to handle international money transfers. The IBAN is crucial in cross border payments as it aids in preventing potential operational problems. This article is going to explore everything you need to know about the IBAN number. Stay tuned! What is IBAN Number? -------------------- An IBAN, or as said, International Bank Account Number, is a unique number used to identify bank accounts in international money transfer and helps to facilitate the processing of cross border payments by standardising the format of account numbers. The IBAN consists of letters and numbers, and its structure varies depending on the country. In general, it is made up of several parts: ### The country code:  This is a two-letter code that indicates the country where the bank account is held. For example, "DE" for Germany, "FR" for France, and so on. ### The check digit:  This is a single digit used to confirm the validity of the IBAN. It is calculated using a specific algorithm and helps detect errors in the IBAN. ### The bank code:  This is a code that identifies the bank that holds the account. The format and length of the bank code vary depending on the country. ### The account number:  This is the actual account number of the bank account. It is usually made up of letters and numbers, and its format and length also vary depending on the country. IBAN is used in international money transfers between countries in the European Union and many other countries worldwide. It helps to ensure that the money reaches the correct bank account by providing the necessary information about the bank and account holder. The IBAN facilitates the automatic processing of payments by eliminating the need for manual verification of the account number and bank code, which can efficiently reduce the risk of errors. When making international money transfers using IBAN, you must provide the recipient's IBAN, the account holder's name, the bank's name, and the [SWIFT/BIC](https://salt.pe/blog/swift-code-explained) (if needed). This ensures that the transfer is directed to the correct bank account and the proper account holder. **How to find an IBAN?** ------------------------ An IBAN is a unique number assigned to bank accounts in various countries. There are several ways to find your IBAN number, depending on your bank and the country where your account is held. ![IBAN-Number](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/iban-number-1-1681893905874-compressed.png) Insert description ### Check your bank statement:  Your IBAN should be listed on your bank statement, usually at the top or bottom of the page. It may be referred to as "IBAN," "IBAN number," or simply "account number." ### Log in to your online banking account:  Many banks provide access to IBAN numbers through their online banking platforms. You should be able to find your IBAN number in your account details or by clicking on a link labelled "IBAN" or "account number." ### Contact your bank:  If you cannot find your IBAN number through your bank statement or online banking account, you can contact your bank directly. They could provide you with your IBAN number via phone or email. Visit your bank branch: If you cannot find your IBAN number through other means, you can visit your bank branch in person. They would be able to provide you with your IBAN number on the spot. Check IBAN calculator: Many websites provide an IBAN calculator where you can find your IBAN by providing your bank account number, sort code, and bank name. It is important to note that your IBAN may differ depending on where you hold your account. If you have multiple accounts, make sure you're using the correct IBAN number for the account you're trying to access. When you're providing an IBAN number to someone for cross border payments, it is always a good idea to double-check the number with your bank to make sure it is correct, as it can prevent any error that might happen due to typos or wrong information provided. Which countries use the IBAN? ----------------------------- IBAN is a system in many countries worldwide to identify bank accounts in international money transfers. The European Committee for Banking Standards (ECBS) developed the IBAN system to facilitate the processing of cross border payments in the European Union (EU) and other countries. IBAN number is mandatory for cross border payments in many **EU countries** and countries in the **European Economic Area (EEA)**. It is also used by many other countries worldwide, including the Middle East, Africa, and Asia. Some of the countries which are using IBAN are: European Union (EU) countries, European Economic Area (EEA) countries, Switzerland, Norway, Iceland, Liechtenstein, Croatia, Serbia, Montenegro, Bosnia and Herzegovina, North Macedonia, Tunisia, Algeria, Lebanon, Iran, United Arab Emirates, Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and Yemen. It's always an excellent idea to check with your bank to confirm whether IBAN is used in your country and, if so, what the format and structure of the IBAN should be. When making an international money transfer, IBAN is important as it eliminates errors and reduces the possibility of delay in processing payment. Conclusion ---------- In conclusion, an IBAN (International Bank Account Number) is a unique number assigned to bank accounts in countries participating in the IBAN system. It identifies the bank accounts in international money transfer and the processing of cross border payments. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Get e-BRC From DGFT? : Export Business Author: Ankit Parasher Published: 2023-04-11 Category: Trade Meta Description: In this post, learn how to obtain a BRC or Bank Realisation Certificate from the DGFT, and all the BRC details you must be aware of as an exporter! Tags: How to get brc, Bank Realisation Certificate , DGFT, BRC full form, BRC details , DGFT in trade, DGFT for BRC, DGFT consultant , DGFT consultant for brc URL: https://salt.pe/blog/how-to-get-brc-from-dgft ![DGFT-Consultant-For-BRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-get-brc-fromdgft-12-1681288192777-compressed.jpg) Acquiring BRC from the DGFT As an exporter, you know that receiving payment for your goods or services is just the beginning of a successful transaction. To fully realise the benefits of your exports, you must obtain a BRC from DGFT (Directorate General of Foreign Trade). What is the BRC full form? Why, a Bank Realisation Certificate, of course. The BRC proves that you have received payment and opens up opportunities for claiming benefits under the Foreign Trade Policy (FTP) and the repatriation of export proceeds. In this post, learn how to get the Bank Realisation Certificate from the DGFT so that you can take your export business to new heights! But first, let's see what BRC is, before we get into BRC details you must be aware of. ### What is BRC? BRC stands for [Bank Realisation Certificate](https://salt.pe/blog/why-rbi-needs-brc-and-firc-in-your-international-business-cl8lbadip51311kp68apurooy). It is a document issued by a bank that certifies that an exporter has received payment for goods or services exported. The BRC serves as proof of payment received by the exporter and is required by the Directorate General of Foreign Trade (DGFT) for various purposes, such as verifying your claim of benefits under the Foreign Trade Policy (FTP) and for repatriation of export proceeds. The BRC is an essential document for exporters, enabling them to access various government incentives and benefits and ensure compliance with foreign exchange regulations. BRC Details: How To Get BRC From DGFT? -------------------------------------- The DGFT didn't automate the procedure for getting a Bank Realisation Certificate until 2012, when they launched the eBRC platform. Before that, to acquire a BRC, the exporter had to visit their bank physically. The exporter subsequently sent the BRC to the appropriate regional DGFT office. The DGFT application was manually updated with the BRC information. It was cumbersome and time-consuming to apply for export incentives because of this. Due to the eBRC, the exporter no longer has to physically visit the bank or DGFT authority. BRC Details: How Does the eBRC System Function? ----------------------------------------------- ![E-BRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/ebrc-architecture-13-1681288250047-compressed.jpg) Here is how the procedure of acquiring eBRC works:  * When you as an exporter receive your shipping bill payment in your bank account, you need to submit the eFIRC or Electronic Foreign Inward Remittance Certificate and export documents with the respective bank.  * When the bank receives money from exports, it creates an electronic BRC. * Then, it generates an XML file describing the eBRC in digital format. * The bank digitally signs the XML document. * The subsequent step is for the bank to send the XML file to the DGFT server. This is done by going to the DGFT website, signing into the e-BRC application, and selecting "Upload eBRC." * The DGFT server checks the user's credentials and the submitted file for accuracy. After the file has been successfully uploaded, an acknowledgement is sent to the bank. * You can see the eBRC’s status on the DGFT website, and print it to claim export incentives.  **BRC Details: How to Check for eBRC on the DGFT Website?** ----------------------------------------------------------- * Log in to the DGFT website. * In your dashboard, you should see the ‘Repositories’ option. * Through that, you will find the ‘Explore’ option under the ‘Bills Repositories’ tab. * Choose eBRC from the drop down menu of ‘Select Bill’. * Enter the correct timeline for yourself, and use the search function. * All eBRCs uploaded by the banks where you hold your accounts will be shown on the screen.  BRC Details: The significance of a Bank Realisation Certificate (BRC) --------------------------------------------------------------------- 1. The Directorate General of International Trade (DGFT) looks to automate and systematise the recording of international trade and transactions through the BRC. 2. BRC verifies that an exporter has been paid for goods or services exported abroad. 3. BRC is a crucial resource for economic data and financial statistics. 4. Any company seeking advantages under the Foreign Trade Policy must provide proof of payment for exports, which is where BRC comes into play.  5. Bank Realisation Certificates are a streamlined form of export documentation. BRC Details: Conclusion ----------------------- To fully take advantage of your exports, obtaining a Bank Realisation Certificate (BRC) from the Directorate General of Foreign Trade (DGFT) is essential. The eBRC system has simplified the procedure by allowing banks to generate electronic BRCs and send them directly to the DGFT. This in turn makes it easier for exporters like you to claim benefits under the Foreign Trade Policy and repatriate export proceeds.  We do hope this post helps you learn about the crucial BRC details you’d need as a small business exporting goods! At SALT, our goal is to make global banking easy for small businesses like you, so you can conveniently manage your finances with local accounts! Check out [our website](https://www.salt.pe/) now to learn more about us! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Bank Details Are Required To Accept Payments Internationally? Author: Udita Pal Published: 2023-04-04 Category: Inward Remittance Meta Title: What Bank Details Are Required To Accept Payments Internationally? Meta Description: This article will explore the specific bank details needed to accept international payments, and why they are essential. Tags: receive international payments , cross border banking , cross border transaction, international transactions, international transfer india URL: https://salt.pe/blog/bank-details-for-international-payments === ![bank-details-for-international-transactions-india](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-bank-details-are-required-to-accept-international-payments-immediately-10-1680604789858-compressed.jpg) Many believe sending and receiving funds internationally through their banks is the safest and most reliable option. You can make international payments to banks in India and elsewhere because they have extensive global networks. The time it takes to receive funds can be reduced from days to hours with the assistance of money transfer experts and other digital monetary services. We'll walk you through the necessary bank information and other details here. How to Accept International Payments? ------------------------------------- To accept cross-border payments, one must go through these steps: ![receive-international-money-to-india](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-accept-international-payments-11-1680607310871-compressed.jpg) ### Understand your customer:  Before accepting international payments, it is essential to understand the needs and preferences of your customers. This includes their preferred payment methods, currency, and applicable local regulations. ### Choose the suitable payment processor:  Many different payment processors can accept international payments. Some popular options include PayPal, Paytm, Stripe, and Square. Each of these processors has different fees and requirements, so it is essential to research and choose the best for your business. ### Setting up a merchant account:  You must set up a merchant account with your chosen payment processor. This typically involves providing basic information about your business, such as company name and contact details. ### Implement fraud prevention measures:  International payments are more vulnerable to fraud than domestic payments, so it is essential to implement measures to protect your business. This includes using fraud detection software, setting up fraud alerts, and verifying the identity of your customers. ### Use currency conversion tools:  Many customers will be paying in different currencies, so you need to use currency conversion tools to ensure you receive the correct amount. This can be done through your payment processor or a separate currency conversion service. You can check out salt's [currency converter](https://www.salt.pe/remittance). ### Complying with local regulations:  Each country has different regulations regarding international payments, so it is important to comply with them to avoid legal issues. This includes obtaining necessary licences or permits and adhering to data protection laws. ### Provide excellent customer service:  Providing excellent customer service is crucial when accepting international payments. This includes responding quickly to customer inquiries, handling disputes fairly, and providing accurate and detailed invoices. We at Salt, provide 24 Hrs customer support and a dedicated relationship manager to manage your business transaction queries.  ### Monitor and analyse payments:  Regularly monitoring and analysing your international payments will help you identify any issues and make adjustments as needed. This includes tracking your payment processing fees, monitoring conversion rates, and analysing customer data to identify patterns and trends. Bank Details Required to Accept International Payments ------------------------------------------------------ When accepting international payments, you will typically need to provide the following bank details to your payment processor: ### Business name and address:  The business name and address are required to verify the merchant's identity and ensure that payments are sent to the correct account. ### Tax ID number:  It is required for tax purposes and to comply with local regulations. ### Bank account details:  The bank account details are required to ensure that the payments are deposited into the correct account. This includes the bank name, account number, and routing number. ### SWIFT code:  The [SWIFT code](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) is an international bank code required to process international payments. It is a unique code that identifies the bank and branch where the account is held. ### IBAN number:  The IBAN (International Bank Account Number) is a unique number used to identify bank accounts in certain countries. It is typically required for payments to be made to European countries. ### Beneficiary name:  The beneficiary name is the name of the person or company to whom the payment is being sent to. ### Beneficiary address:  The beneficiary address is the person or company to which the payment is sent. ### Business registration documents:  Some countries may require business registration documents such as the business registration certificate, business licence, or VAT registration number. ### Proof of Address:  A proof of address, such as a utility bill or lease agreement, is required to verify the address of the business. ### ID or passport of authorised signatory:  An ID or passport of the authorised signatory is required as proof of identity. It's important to note that the requirements may vary depending on the country, payment processor, and bank, and it's essential to check with them before starting the process to ensure that all the necessary information is provided. Why are these bank details important? ------------------------------------- Bank details are required to accept cross-border payments, because they provide the necessary information for the funds to be transferred and deposited into the correct account. The receiving bank's name, routing number, and account number ensure the funds are directed to the intended recipient. Additionally, the recipient's name and address help confirm the account holder's identity and ensure that the funds go to the correct person or business. Furthermore, providing accurate bank details also helps to reduce the risk associated with fraud and errors in the payment process. Businesses and individuals can protect themselves from potential financial losses by verifying the recipient's identity and ensuring that the funds go to the correct account. In summary, bank details are essential for accepting payments internationally because they provide the necessary information for the funds to be transferred and deposited into the correct account. They also help reduce the risk of fraud and errors in the payment process. Overall, providing accurate bank details is crucial for ensuring that transactions are completed smoothly and securely. Conclusion ---------- In conclusion, a bank account with IBAN and [SWIFT/BIC codes](https://www.salt.pe/blog/swift-code-explained) is required to accept cross-border payments. These codes identify the bank and account to which the funds will be transferred. Additionally, the merchant may need to provide documentation, such as a business registration or tax ID number, to comply with anti-money laundering regulations. Salt is a neobank dedicated to providing you with the comfort of doing global business with local accounts. Give [our website](https://salt.pe/) a visit today to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Silicon Valley Bank (SVB) Collapse: What Startups Can Learn [Business banking 2023] Author: Sudhanshu Choudhary Published: 2023-03-27 Category: SVB Depositors Meta Title: Silicon Valley Bank (SVB) Collapse: What Can We Learn [Business banking 2023] Meta Description: The SVB collapse is the biggest financial crisis in the history of global finance, after the great havoc from back in 2008. What can we learn? Tags: Indian startup in SVB , Silicon Valley Bank , SVB Financial Group , SVB and India, indian startup founder, indian startups, startup founders, Indian VCs in SVB , SVB Indian Companies, SVB Collapse , Indian businesses URL: https://salt.pe/blog/things-to-learn-from-svb-collapse ![Silicon-Valley-Bank-Collapse-Things-To-Learn](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/silicon-valley-bank-svb-collapse-what-can-we-learn-2-1680337052023-compressed.jpg) SVB Collapse  In what is perhaps one of the biggest global financial crises since the dark times of 2008, the SVB or the Silicon Valley Bank Financial Group based in Santa Clara, California became the largest bank to [fall on March 10, 2023](https://economictimes.indiatimes.com/news/international/business/silicon-valley-bank-collapse-what-you-need-to-know/articleshow/98618537.cms?from=mdr). The impact of the SVB collapse was felt globally, as the startup-focused lender was the 16th biggest in the US as of the end of 2022, with around $209 billions worth of assets. As California banking regulators closed SVB once and for all, the Federal Deposit Insurance Corporation (FDIC) was appointed to be the receiver for later disposition of the assets. The shock of the SVB collapse had barely died down when state regulators also closed the NY-based Signature Bank on Sunday, March 12, which became the third-biggest bank failure in the history of the US. While the US Treasury Department and other regulators assured that all depositors in both banks will be made whole, there’s no doubt a global financial crisis brewing following the negative sentiments among investors across countries. What can we learn from the SVB collapse? That’s what we find out in this post.  Why did the collapse of the SVB come about? ------------------------------------------- In brief, the SVB collapse was brought about by mistakes made by the SVB Treasury team in predicting the Economic situation arising out of increase in Fed interest rates. Here’s a quick look at the events that preceded the SVB downfall: * The Silicon Valley Bank saw a huge number of deposits from startups and venture capital firms in the post-Covid period, and the funds were deposited in long-term securities offered by the US government. * While these investments would usually have been considered safe, their value fell as the Federal Reserve turned towards implementing aggressive monetary policies to bring down high inflation.  * SVB’s depositor base mainly consisted of startups and tech companies, who started largely withdrawing their deposits owing to the dried up venture capital funding through public offerings.  * The big-scale withdrawals left SVB with no choice but to sell off their holdings in bonds, which led to the bank bearing mark-to-market losses while the existing bond values dropped in tandem with the increase in yields. * The SVB CEO informed shareholders of a loss of $1.8 billion they had suffered on the sale of US treasury bonds on sale of $21 billion assets, and chalked out a plan to raise capital through a sale of shares. The plan to raise capital and sell off assets to meet deposit demands of customers was not well received by investors and depositors. * However, this set the stage for a classic bank run as venture capital firms pulled their funds, and the situation deteriorated as the VC firm asked their portfolio companies to move money away from their bank account in SVB. Now, as these were corporate deposits, they went past the deposit insurance limit at $250,000. * The bank run went to be worth about $42 billion, which turned out to be about a quarter of the SVB’s total deposits. The bank could not honour its obligations as per its plan, and it was finally out of cash completely. * Regulatory interventions took place right after, as the Treasury Secretary, the banking regulator, and the resolution authority collaborated to take prompt action. The Silicon Valley Bank was closed by the California banking regulators and the FDIC was appointed to be the receiver of the bank’s assets.     The entire process, of course, reminds you of several instances from the global financial crisis of 2007-2008, such as the Northern Rock bank run.   What can we learn from the SVB collapse? ---------------------------------------- The SVB collapse signifies a failure of the financial policy implemented in the US after the financial crisis of 2008. A long period of low interest rates followed by aggressively rising rates are reason enough to send banks with high exposure to bonds into deep risk. Here’s what we can learn from the SVB collapse: ### Risk Management Organisations must learn to pinpoint the key risk factors in their investment strategies, and more careful risk assessment is necessary. ### Treasury Management and Diversity in Portfolio High concentration in one single segment of assets or the market, or even one business partner can increase risks, which is exactly why companies with over concentration in the SVB bore higher losses. Risk management strategies should involve better diversification of investments.  Having a treasury management policy and reviewing it on a regular basis is important to ensure an organisation’s financial stability. A well-fabricated treasury management policy can help optimise cash resources, minimise risks, and improve overall performance for an institution. ### Even The Biggest Banks Are Prone To Risk And finally, the SVB collapse shows us that even the biggest of traditional financial institutions can fall prey to the most obvious of risks.  Further, speaking of global implications,  ------------------------------------------ The SVB collapse speaks of the need for regulatory tools that can provide a buffer for losses caused by rising interest rates. One such instrument in Indian banking regulations is the IFR or the Investment Fluctuation Reserve. The IFR is created through the transfer of gains from sales of investments during a low interest rates cycle. So when interest rates are hiked again, these gains can provide some safeguard.  Here's a few things you can learn about the [deposit insurance by RBI in Indian banks](https://www.salt.pe/blog/deposit-insurance-in-indian-banks).  Conclusion: We do hope this post shed some light on the events surrounding the SVB collapse for you, along with what we can learn from it. As a startup or small business in India, you can also use neobanks like Salt for the ease of doing global business, that too with local accounts. Want to find out how? Give [our website](https://salt.pe/) a visit today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Ways To Minimise TDS On Foreign Payments: International Transfers Author: Udita Pal Published: 2023-03-27 Category: Tax On Foreign Transactions Meta Description: Do you know about TDS on Foreign Payments? If not, this article will discuss TDS on foreign payments, its implications, and ways to minimise tax deductions! Tags: international transactions, TDS , Minimise tax deductions, TDS On Foreign Payments , Minimise TDS , Minimise TDS on international URL: https://salt.pe/blog/tds-on-foreign-payments ![TDS-On-International-Transfers-In-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/ways-to-minimise-tds-on-foreign-payments-international-transfers-1680011241141-compressed.jpg) International business and trade have increased significantly in recent times, leading to increased foreign payments for Indian small businesses, startups, and freelancers. These payments are subject to the Indian government's tax regulations, and one of the most critical regulations is TDS or Tax Deducted at Source. TDS collects income tax in India by deducting a certain percentage of the payment before it is credited to the recipient's account. What is TDS on Foreign Payments? -------------------------------- TDS on foreign payments refers to the tax deductions made on payments made to foreign companies or individuals. The Indian government has enacted various laws and regulations to ensure that the income earned by foreign entities from India is subject to Indian tax laws. TDS is the primary mechanism used by the Indian government to collect tax on foreign payments. TDS on foreign payments applies to various transactions, including payments for services, royalties, technical services, professional services, interest, and rent. TDS deductions can range from 10% to 40%, depending on the type of payment and the nature of the transaction. The TDS deductions must be made at the time of payment, and the payment recipient is entitled to receive the balance amount after deducting the TDS. Implications of TDS on Foreign Payments --------------------------------------- TDS on foreign payments has several implications for Indian companies and individuals making foreign payments. Some of the implications include the following: ### Increased Cost of Foreign Payments: TDS on foreign payments increases the cost, as a portion of the payment is deducted as TDS. This can significantly impact the bottom line of Indian companies, especially those making frequent foreign payments. ### Increased Administrative Burden:  TDS on foreign payments increases the administrative burden of Indian companies, as they must ensure that TDS deductions are made correctly and on time. This requires them to keep track of the TDS rate, due date, and certificates, and submit TDS returns regularly. ### Lower Receipts for Foreign Companies: TDS on foreign payments can also affect the recipient of the payment, as the amount received may be lower than expected due to TDS deductions. This can impact the financial stability of foreign companies and individuals, mainly if they rely heavily on Indian payments. ### Compliance Issues: Non-compliance with TDS regulations can lead to significant financial penalties, interest charges, and even legal action. Indian companies must ensure that TDS deductions are made correctly and on time to avoid compliance issues. ### Delays in Payments:  TDS on foreign payments can also cause delays in payments, as the Indian company must ensure that TDS deductions are made before crediting the payment to the recipient's account. This can cause disruptions in the normal business flow and negatively impact the relationship between the Indian company and the foreign recipient. **Ways to Minimise TDS on Foreign Payments** -------------------------------------------- TDS on foreign payments can significantly burden Indian companies and individuals making foreign payments, as seen above. However, there are several ways to minimise TDS on foreign payments, including: ![Minimise-TDS-On-International-Transfers-In-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-minimise-tds-on-foreign-payments-1680011291277-compressed.jpg) ### Utilising Tax Treaties:  India has entered into [tax treaties](https://www.irs.gov/businesses/international-businesses/india-tax-treaty-documents) with several countries to reduce or eliminate TDS on foreign payments. By taking advantage of these tax treaties, Indian companies and individuals can significantly reduce TDS deductions on foreign payments. ### Submit Form 15CA and Form 15CB:  Form 15CA is an online form that needs to be submitted to the Indian tax authorities by the person making the payment, while Form 15CB is a certificate that needs to be issued by a chartered accountant. These forms are used to certify that the payment being made is in compliance with Indian tax laws. ### Obtaining PAN and TAN:  To minimise TDS, it is essential to get a PAN (Permanent Account Number), and the TAN (Tax Deduction and Collection Account Number) from the Indian Income Tax Department is also a requirement. These numbers are required to make TDS deductions on foreign payments. ### Timely Filing of TDS Returns:  Indian companies must file TDS returns on time to avoid penalties and interest charges. Filing TDS returns on time also helps to minimise TDS deductions, as TDS certificates can be obtained more quickly and accurately. ### Maintaining Proper Documentation:  Proper documentation is essential to minimise TDS on foreign payments. Indian companies must retain all relevant documents, including invoices, contracts, and TDS certificates, to ensure that TDS deductions are made correctly and to claim TDS credits. ### Engaging in Proper Tax Planning:  Proper tax planning can help Indian companies and individuals minimise TDS on foreign payments. This involves understanding the TDS regulations, the tax treaties, and the various ways to reduce TDS deductions. Conclusion ---------- In conclusion, TDS on foreign payments can significantly impact Indian companies and individuals making foreign payments. However, there are several ways to minimise TDS on foreign payments, including utilising tax treaties, opting for lower TDS rates, claiming TDS credit, obtaining PAN and TAN, timely filing of TDS returns, maintaining proper documentation, and engaging in appropriate tax planning. To minimise the impact of TDS on foreign payments, it's essential to understand the regulations and consider the various ways to reduce TDS deductions. You can also read about [How are foreign inward remittance taxed in India](https://www.salt.pe/blog/how-are-foreign-inward-remittance-taxed-in-india)​ Salt is a neobank dedicated to making global banking easy for small businesses and startups in India. Give [our website](https://salt.pe/) a visit today to find out more about us! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## RBI Requirements For Foreign Direct Investment (FDI) : Foreign Investments Author: Sudhanshu Choudhary Published: 2023-03-27 Category: Foreign Direct Investment Meta Title: RBI Requirements For Foreign Direct Investment (FDI) : Foreign Investments Meta Description: In this article, we explore the requirements that the RBI or the Reserve Bank of India has set up for Foreign Direct Investments in India. Tags: reserve bank of india, FDI regulations, FDI, RBI, RBI Requirements for FDI URL: https://salt.pe/blog/rbi-requirements-for-fdi Introduction Foreign Direct Investment (FDI) refers to when a resident who is not Indian invests in an unlisted Indian company or owns at least 10 percent of the completely diluted post-issue paid-up equity capital of a listed Indian company.  ![RBI-Requirements-for-fdi](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/rbi-requirements-for-foreign-direct-investment-07-1679911907773-compressed.jpg) There are various benefits that attract foreign investors to participate in FDI, such as market diversification, access to local expertise, lower labour costs, and tax incentives. In addition to being beneficial for foreign investors, FDI is also a significant driver of economic growth and a reliable source of non-debt finance for the economic development of India. In this article, we'll explore the requirements that the Reserve Bank of India (RBI) has set up for Foreign Direct Investments in India. Contents * [Requirements set by RBI](#requirements-set-by-rbi) * [Which sectors in India are not allowed to receive FDIs?](#which-sectors-in-india-are-not-allowed-to-receive-fdis) * [Conclusion](#conclusion) ### India and Foreign Direct Investments There are several methods through which foreign investors can invest in India through FDI, including  * subscribing to the Memorandum of Association,  * merger/demerger/amalgamation,  * preferential allotment/private placement/private arrangement,  * purchasing shares from Indian residents/companies,  * rights/bonus issue,  * conversion of convertible notes,  * and swap of capital instruments. Foreign investors can invest in India through two routes: the Government Route and the Automatic Route. The Automatic Route allows for investments made by non-Indian residents without the need for prior approval from the Reserve Bank or Government.  The Government Route requires prior approval and compliance with conditions set by the government. Applications can be made on the Foreign Investment Facilitation Portal (FIFP), which is an online portal administered by the Department of Industrial Policy and Promotion and the Ministry of Commerce and Industry to facilitate FDI approvals for investors. Requirements set by RBI ----------------------- [Requirements](https://taxguru.in/rbi/foreign-investment-india-route-eligibility.html) for investing in India through FDI are as follows: * Non-resident entities are allowed to invest in India, with the exception of certain prohibited sectors or activities. However, entities from countries that share a land border with India or have beneficial owners of investments in India that are citizens or residents of those countries can only invest under the government route. Additionally, citizens of Pakistan or entities incorporated in Pakistan are only allowed to invest in sectors other than defence, space, atomic energy, and prohibited sectors under the government route. * Any subsequent changes in ownership of existing or future FDI in India that results in beneficial ownership falling under the restrictions outlined in the point above will also require government approval. * Non-Resident Indians (NRIs) who are residents of Nepal or Bhutan, as well as citizens of Nepal or Bhutan, are allowed to invest in Indian companies on a repatriation basis as long as the amount of investment is paid through normal banking channels in free foreign exchange. * Overseas Corporate Bodies (OCBs) have been derecognized as a class of investors in India since September 16, 2003. Erstwhile OCBs that are incorporated outside India and not under the adverse notice of the Reserve Bank of India (RBI) can make fresh investments as incorporated non-resident entities in accordance with FDI policy and Foreign Exchange Management (Non-Debt Instrument) Rules, 2019. * Companies, trusts and partnership firms incorporated outside India that are owned and controlled by NRIs can invest in India with the same special dispensation that is available to NRIs under the FDI policy. * Foreign Portfolio Investors (FPI) are allowed to make investments as per the terms and conditions mentioned in Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. * Registered FPIs and NRIs can trade or invest via a registered broker in the capital of Indian companies on recognized Indian stock exchanges as per the required schedule under the Foreign Exchange Management (Non-Debt Instruments) Rules, 2019, as amended with time. * Foreign Venture Capital Investors (FVCI) are allowed to make investments as per the terms and conditions outlined in Schedule VII of Foreign Exchange Management (Non-Debt Instruments) Rules, 2019. * NRIs or Overseas Citizens of India (OCIs) are allowed to subscribe to the National Pension System administered and governed by Pension Fund Regulatory and Development Authority (PFRDA) as long as the subscriptions are done through normal banking channels and the individual is eligible to invest as per the provisions of the PFRDA Act. The annuity/accumulated savings from this investment will be repatriable. Which sectors in India are not allowed to receive FDIs? ------------------------------------------------------- Investment by residents that are not Indian is not allowed in [certain sectors](https://indialiaison.com/fdifinal.htm), including: * Lottery Business, including government, private, and online lotteries * Gambling and betting, including casinos * Chit funds (except for investments made by non-resident Indians and Overseas Citizens of India on a non-repatriation basis) * Nidhi company (Mutual Benefit Funds Company) * Trading in Transferable Development Rights (TDRs) * Construction of Farm Houses or Real Estate Business * Manufacturing of cheroots, cigarillos, cigars, and cigarettes, of tobacco or of tobacco substitutes. However, foreign investment in other activities related to these products, such as wholesale cash and carry and retail trading, will be subject to the sectoral restrictions outlined in Regulation 16 of FEMA 20(R) * Sectors that are not open to Private Sector Investment, such as the atomic energy sector and railway operations sector * Foreign technology collaboration, such as licensing for franchise, trademark, brand name, and management contract, is also prohibited in case of lottery business, gambling and betting activities. Conclusion ---------- India has made significant improvements to its investment climate since opening up its economy in 1991, which is largely attributed to the ease of FDI rules in the country. [India is now ranked among the top 100 nations for ease of doing business](https://www.business-standard.com/about/what-is-fdi), and FDI inflows have steadily increased in recent years.  India is now considered to be a leading destination for FDI, with a [survey](https://www.ibef.org/economy/foreign-direct-investment) indicating that 80% of global respondents plan to invest in India. India's government efficiency, stable public finances, and funding and subsidies offered to private firms make it even more attractive for FDI. These factors are expected to help India attract FDI worth $120-160 billion annually by 2025. To learn much more about the world of finance, check out the [Salt blog](https://www.salt.pe/blog). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Ways To Minimise TDS on Foreign Payments: International Payments For Indian Businesses Author: Udita Pal Published: 2023-03-23 Category: Inward Remittance Meta Title: Ways To Minimise TDS on Foreign Payments: International Payments For Indian Businesses Meta Description: Do you know about TDS on Foreign Payments? If not, this article will discuss TDS on foreign payments, its implications, and ways to minimise tax deductions! Tags: receive international payments , international business banking, Foreign payments , Indian businesses, TDS on foreign paymnets , TDS , Tax deducted at source, Minimise tax deductions, foreign companies URL: https://salt.pe/blog/minimise-tds-on-foreign-payments ![What-is-the-TDS-on-Foreign-Payments ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/tds-on-foreign-payments-1679571638867-compressed.jpg) International business and trade have increased significantly in the recent times, leading to increased foreign payments for Indian small businesses, startups, and freelancers. These payments are subject to the Indian government's tax regulations, and one of the most critical regulations is TDS or Tax Deducted at Source. TDS collects income tax in India by deducting a certain percentage of the payment before it is credited to the recipient's account. What is the TDS on Foreign Payments? ------------------------------------ TDS on foreign payments refers to the tax deductions made on payments made to foreign companies or individuals. The Indian government has enacted various laws and regulations to ensure that the income earned by foreign entities from India is subject to Indian tax laws. TDS is the primary mechanism used by the Indian government to collect tax on foreign payments. TDS on foreign payments applies to various transactions, including payments for services, royalties, technical services, professional services, interest, and rent. TDS deductions can range from 10% to 40%, depending on the type of payment and the nature of the transaction. The TDS deductions must be made at the time of payment, and the payment recipient is entitled to receive the balance amount after deducting the TDS. Implications of TDS on Foreign Payments --------------------------------------- TDS on foreign payments has several implications for Indian companies and individuals making foreign payments. Some of the implications include the following: ### Increased Cost of Foreign Payments: TDS on foreign payments increases the cost, as a portion of the payment is deducted as TDS. This can significantly impact the bottom line of Indian companies, especially those making frequent foreign payments ### Increased Administrative Burden: TDS on foreign payments increases the administrative burden of Indian companies, as they must ensure that TDS deductions are made correctly and on time. This requires them to keep track of the TDS rate, due date, and certificates, and submit TDS returns regularly. ### Lower Receipts for Foreign Companies: TDS on foreign payments can also affect the recipient of the payment, as the amount received may be lower than expected due to TDS deductions. This can impact the financial stability of foreign companies and individuals, mainly if they rely heavily on Indian payments. ### Compliance Issues:  Non-compliance with TDS regulations can lead to significant financial penalties, interest charges, and even legal action. Indian companies must ensure that TDS deductions are made correctly and on time to avoid compliance issues. ### Delays in Payments:  TDS on foreign payments can also cause delays in payments, as the Indian company must ensure that TDS deductions are made before crediting the payment to the recipient's account. This can cause disruptions in the normal business flow and negatively impact the relationship between the Indian company and the foreign recipient. **Ways to Minimise TDS on Foreign Payments** -------------------------------------------- TDS on foreign payments can significantly burden Indian companies and individuals making foreign payments, as seen above. However, there are several ways to minimise TDS on foreign payments, including: ![Minimise-TDS-On-International-Payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-minimise-tds-on-foreign-payments-1679571720700-compressed.jpg) Minimise TDS on Foreign Payments  ### Utilising Tax Treaties:  India has entered into [tax treaties](https://www.irs.gov/businesses/international-businesses/india-tax-treaty-documents) with several countries to reduce or eliminate TDS on foreign payments. By taking advantage of these tax treaties, Indian companies and individuals can significantly reduce TDS deductions on foreign payments. ### Submit Form 15CA and Form 15CB: Form 15CA is an online form that needs to be submitted to the Indian tax authorities by the person making the payment, while Form 15CB is a certificate that needs to be issued by a chartered accountant. These forms are used to certify that the payment being made is in compliance with Indian tax laws. ### Obtaining PAN and TAN:  To minimise TDS on foreign payments, it is essential to get a PAN (Permanent Account Number) and TAN (Tax Deduction and Collection Account Number) from the Indian Income Tax Department. These numbers are required to make TDS deductions on foreign payments. ### Timely Filing of TDS Returns:  Indian companies must file TDS returns on time to avoid penalties and interest charges. Filing TDS returns on time also helps to minimise TDS deductions, as TDS certificates can be obtained more quickly and accurately. ### Maintaining Proper Documentation:  Proper documentation is essential to minimise TDS on foreign payments. Indian companies must retain all relevant documents, including invoices, contracts, and TDS certificates, to ensure that TDS deductions are made correctly and to claim TDS credits. ### Engaging in Proper Tax Planning:  Proper tax planning can help Indian companies and individuals minimise TDS on foreign payments. This involves understanding the TDS regulations, the tax treaties, and the various ways to reduce TDS deductions. Conclusion ---------- In conclusion, TDS on foreign payments can significantly impact Indian companies and individuals making foreign payments. However, there are several ways to minimise TDS on foreign payments, including utilising tax treaties, opting for lower TDS rates, claiming TDS credit, obtaining PAN and TAN, timely filing of TDS returns, maintaining proper documentation, and engaging in appropriate tax planning. To minimise the impact of TDS on foreign payments, it's essential to understand the regulations and consider the various ways to reduce TDS deductions. Read more on [how to manage risks of your international transactions](https://www.salt.pe/blog/how-to-manage-risks-of-your-international-transactions). Salt is a neobank dedicated to making global banking easy for small businesses and startups in India. Give [our website](https://salt.pe/) a visit today to find out more about us! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is The Deposit Insurance In Indian Banks Author: Sudhanshu Choudhary Published: 2023-03-22 Category: Banking In India Meta Title: What Is The Deposit Insurance In Indian Banks Meta Description: Post SVB collapse, Indian depositors might have questions about protective measures in the Indian banking system. Discover DICGC insurance benefits today! Tags: SVB Collapse, Deposit Insurance, Deposit Insurance in India, DICGC, Indian Banking System , Indian Financial System , SVB Collapse , Bank Insolvency , Indian Banks Insolvency URL: https://salt.pe/blog/deposit-insurance-in-indian-banks ![Deposit-Insurance-For-Indians](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/indian-bank-deposit-insurance-1679469308676-compressed.jpg) Have you ever been worried about what would happen to your hard-earned savings if the financial institution of your choice were to go bankrupt? With [the SVB collapse, followed by Signature Bank,](https://www.salt.pe/blog/fdic-insurance-for-svb-depositors) the whole world is in a frenzy. Many Indian depositors are stuck wondering what kind of insurance they can have in the Indian banking system, just in case a situation similar to the SVB collapse rises up here. Fortunately, Indians have a safety net in the form of the Deposit Insurance and Credit Guarantee Corporation [(DICGC)](https://www.dicgc.org.in/). In this post, we delve into the nitty-gritty of the DICGC's deposit insurance scheme. Importance of Insurance for Indian Depositors --------------------------------------------- Insurance for depositors is crucial to safeguarding their savings and investments. In the event of bank failure or bankruptcy, depositor insurance provides protection against loss of funds up to a certain limit, meaning that even if the bank goes under, depositors can still retrieve their money without suffering significant financial losses. The importance of insurance for depositors was highlighted during the [global financial crisis of 2008](https://www.rba.gov.au/education/resources/explainers/the-global-financial-crisis.html) when several countries witnessed large-scale bank failures leading to significant economic damage. However, with effective regulatory measures and prudent risk management practices, Indian banks have maintained stability even during challenging times.  ![Important-points-on-deposit-insurance-by-dicgc](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/indian-bank-deposit-insurance-2-1679469434032-compressed.jpg) In India, The Deposit Insurance and Credit Guarantee Corporation (DICGC) was established in 1961 to provide deposit insurance to bank customers. In the event of a bank failure, DICGC provides compensation of up to ₹5 lakh per depositor and bank, ensuring small depositors’ protection against financial losses due to the failure of their bank. DICGC: What Do You Need to Know? -------------------------------- The DICGC covers all deposits, including savings, fixed, current, and recurring deposits, with the exception of the following: * Funds deposited by foreign countries * Federal and state government deposits * Inter-bank deposits * State Land Deveent Bank deposits with the State Co-operative Bank * Any sum owed for a deposit received outside of India * Amounts specifically exempted by the corporation with prior consent from the Reserve Bank of India In the instance of a bank liquidation, DICGC is responsible for paying the liquidator the claim amount of each depositor up to ₹5 lakhs within two months of receiving the liquidator's claim list. The liquidator must pay each insured depositor the claim amount matching to their claim amount. Major Challenges Faced By The Indian Banking System  ------------------------------------------------------- One of the major challenges faced by the Indian banking system regarding deposit insurance is the lack of awareness among depositors about their rights and entitlements. This lack can lead to several problems for both banks and customers. For instance, it can result in customers placing too much trust in their banks without understanding the risks involved. It could also lead to panic withdrawals when there is uncertainty about a particular bank's financial health, potentially exacerbating liquidity issues for banks. To address this challenge, banks must proactively educate their customers about DICGC coverage and other related matters, such as how they can access information on claim procedures. The RBI has also recommended measures such as displaying notices at branches informing customers about DICGC coverage and organising seminars or workshops on customer education. Increasing awareness amongst depositors about their rights and entitlements is crucial for ensuring stability within the Indian banking system. Banks must take responsibility for educating their customers on these important matters, while regulators should continue to monitor compliance with existing regulations governing disclosure requirements around DICGC coverage, so that all stakeholders can benefit from greater transparency around this critical aspect of banking operations. ### Bottom Line: Insurance for Indian Bank Depositors is Crucial The importance of being aware of deposit insurance coverage limits in the Indian banking system cannot be overstated, especially in light of recent events such as the SVB collapse. The Deposit Insurance and Credit Guarantee Corporation (DICGC) provides insurance for Indian depositors, but it's crucial for customers to understand the limits of this coverage and spread their deposits across multiple banks to reduce the risk of losses. By taking these precautions, customers can protect their savings and minimise the impact of potential banking failures such as the SVB collapse. Want to access the ease of global banking with local accounts as a small business in India? Salt has got you covered! Give [our website](https://salt.pe/) a visit today to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Do Indian Banks Support ACH Transactions? - ACH Transfer Author: Ankit Parasher Published: 2023-03-21 Category: ACH Transactions Meta Title: Do Indian Banks Support ACH Transactions? - ACH Transfer Meta Description: ACH transactions have completely revolutionised the money transfer system in the US, but do Indian banks support ACH? Read to find out! Tags: ACH Transfer , ACH In India, ACH Payments , ACH Vs WIRE , ACH for India , ACH Transfer To India, Automated Clearing House , ACH to India , Indian Banks , Indian banks ACH, ECS and ACH , Electronic Clearing Service URL: https://salt.pe/blog/ach-transfer-in-india ![ACH-Transactions-In-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/do-indian-banks-support-ach-1679391111712-compressed.jpg) All of us are aware of the direct transfer of funds our banks initiate in cases of recurring bills, subscriptions, and membership fees. That very system of transfer is called ACH or Automated Clearing House in the US. ACH is a network that handles electronic payments and transactions, including direct deposits. This payment system solved the issue of rigorous sorting and processing of paper checks in the US and revolutionised the money transfer system.  But does ACH work in India? Read to find out.  Contents * [Do Indian banks support ACH?](#do-indian-banks-support-ach) * [How do ACH payments work?](#how-do-ach-payments-work)  * [Types of ACH payments](#types-of-ach-payments) * [Credit Transfer:](#credit-transfer) * [Direct debit payment:](#direct-debit-payment)  * [Convenience:](#convenience)  * [Lower fee for the merchant:](#lower-fee-for-the-merchant) * [Relatively safer:](#relatively-safer) * [Autopilot:](#autopilot)  * [Long-distance payment:](#long-distance-payment) * [Reversible:](#reversible)  * [Conclusion](#conclusion) Do Indian banks support ACH? ---------------------------- ACH transactions are a US-exclusive concept, and therefore Indian banks can’t support ACH. However, the concept of ACH exists in India - it is better understood as ECS or **Electronic Clearing Service** here.  ECS is an electronic payment mode used for repetitive payments and is periodic in nature. It is largely used by organisations to roll out their bulk payments, especially salaries, pensions, interest, etc. Individuals use this mode of payment to settle dues for electricity, water and other recurring bills, along with loan instalments and periodic investments.  ACH facilitates the transfer of funds directly from one bank to another, eradicating the manual procedures that used to be followed.  ACH Transfer Money To India  ---------------------------- Both Individuals and Merchants can ACH transfer money from USA to India. It usually takes 2-3 days to deduct money from your US bank account and transfer it to your Indian bank account. You may open a virtual local bank account in the US using services like [Salt](https://www.salt.pe/remittance), Wise, etc. You can ACH transfer international money in your US virtual bank account, which gets immediately transferred to your INR Bank a/c.  How do ACH payments work?  -------------------------- ![How-does-ACH-Transfer-works](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-ach-works-1679392100734-compressed.jpg) How Does ACH Transfer Works  In order to understand the various kinds of ACH payments or their benefits, it is pivotal to understand how the process of ACH works.  ACHs are electronic payments where funds move from one bank account to another through an intermediary, which helps route the money to the desired location. It facilitates direct bank-to-bank payment and includes personal as well as business transactions. Any payment made by one person to another or to any business digitally is included in ACH transactions. Any ACH transaction needs several parties to be involved: * **The Originator**: The originator is the person who initiates a payment request. * **The Originator’s financial institution**: The Originating Depository Financial Institution (ODFI) refers to the bank where the originator has their account.  * **An ACH operator** * **The receiver’s financial institution:** The Receiving Depository Financial Institution (RDFI) refers to the bank where the receiver has their account.  * **The Receiver:** The receiver is the person who is meant to receive the payment on the other side.  Types of ACH payments --------------------- Primarily, there are two types of ACH payments:  ### Credit Transfer: ACH Credit refers to the payments where one ‘pushes’ out money from their account to other bank accounts in different financial institutions. It includes non-urgent business-to-business payments and any payment made by retail customers. It also refers to a situation where an organisation rolls out the monthly salaries or pensions to the employees, or the dividends to the shareholders, or more.  ### Direct debit payment:  ACH Debit refers to the payments where the money is ‘pulled’ out of your account and transferred to another without intervention. Such transactions include utility dues, insurance premiums, interests, mortgages, etc. It also includes recurring bill payments where the authority to pull out the due from the account is given to the company that is to be paid. Hence, the amount gets deducted automatically every month.  Benefits of ACH payments ACH transactions come with their own set of advantages that include:  ### Convenience:  A regular cheque payment takes considerable time to get delivered, followed by submitting and getting it cleared, where there are high chances of paper cheques being misplaced and faulty entries in the system. ACH has removed this labour-intensive process and made it easy to transfer domestic payments without hassle. Such transactions are quicker in nature and have made the entire process easy.  ### Lower fee for the merchant: With other cashless payment methods like cards, merchants are charged a considerable percentage by card issuers. However, ACH payment reduces that fee to nearly negligible, making it easier for everyone to push funds from one place to another.  ### Relatively safer: Another aspect that makes ACH payments stand out is the safety and security it offers regarding data protection. When a payment is made through the ACH process, all information related to the bank account is encrypted and transmitted securely.  ### Autopilot:  ACH provides multiple ways to make the payment process as easier as possible. One such service is automatic ACH payment. It means that once you allow automatic payments from your account, any and all recurring payments take place automatically, and you don’t need to keep an eye on the deadlines. The company that is to be paid will pull out the dues from your account on its own.  ### Long-distance payment: ACH transactions help businesses settle bills in as little time as possible despite long distances, making B2B interactions and trades easier.  ### Reversible:  ACH payments are reversible under [certain circumstances](https://www.salt.pe/blog/can-a-bank-pull-back-an-ach-payment), but it is best to avoid them as much as possible.  Conclusion ---------- Though ACH payments are a USA-exclusive concept, there is a very similar service in India called the **ECS or Electronic Clearing System**, which allows bulk payments as well as repetitive bills. The ACH has its advantages that help make the transfer process hassle-free. ACH transactions have made recurring payments extremely easy and less time consuming than ever before for those in the US. Looking for an easy and comfortable way to manage global banking with local accounts as a small business in India? We at the [Salt neobank](https://www.salt.pe/blog) have got you covered! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Getting FDIC Insurance As SVB Depositors - Silicon Valley Bank Collapse Author: Sudhanshu Choudhary Published: 2023-03-11 Category: SVB Depositors Meta Title: Getting FDIC Insurance As SVB Depositors - Silicon Valley Bank Collapse Meta Description: The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. If you open a deposit account in an FDIC-insured bank, you are automatically covered. Tags: SVB Depositors, FDIC insurance SVB depositors , SVB Financial Group , FDIC insurance claim, FDIC Insurance to startups URL: https://salt.pe/blog/fdic-insurance-for-svb-depositors Contents * [](#) * [What Is FDIC?](#what-is-fdic) * [Can you get above the FDIC Insured $250,000 from SV Bank?](#can-you-get-above-the-fdic-insured-dollar250000-from-sv-bank) * [Some Important Points On How The Coming Week Will Be](#some-important-points-on-how-the-coming-week-will-be)  * [Regarding The $ 250K Insurance](#regarding-the-dollar-250k-insurance) * [Regarding The Remaining Deposits In SVB](#regarding-the-remaining-deposits-in-svb)  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/getting-fdic-insurance-for-svb-depositors-1678542061436-compressed.jpg) What Is FDIC? ------------- The Federal Deposit Insurance Corporation (FDIC) is an independent agency in the US created by the Congress after the Great Depression to protect the consumers and maintain the public's confidence in the nation’s financial system.  How Much Money In The Bank Is FDIC-Insured? The standard insurance amount is $250,000 per depositor, per insured bank, for each account ownership category. If you open a deposit account in an FDIC-insured bank, you are automatically covered.  What are the types of deposit products insured by the FDIC? * Checking accounts * Savings accounts * Money market deposit accounts * Certificates of deposit (CD) * Prepaid cards (assuming certain FDIC requirements are met) [https://www.fdic.gov/resources/deposit-insurance/financial-products-insured](https://www.fdic.gov/resources/deposit-insurance/financial-products-insured/) ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fdic-insurance-1678542830878-compressed.jpg) Can you get above the FDIC Insured $250,000 from SV Bank? --------------------------------------------------------- FDIC said the uninsured depositors will get receivership certificates for their balances.  Receivership certificate is a proof of the remaining uninsured deposit that the depositor holds in the bank. This certificate will help to get the remaining deposit post the bank’s asset liquidation.  Some Important Points On How The Coming Week Will Be  ----------------------------------------------------- ### Regarding The $ 250K Insurance * By 13th March 2023, i.e. Monday, FDIC insured deposits will be available for withdrawal from the SVB interface.  * All your corporate entities shall have a coverage of $250 K each.  ### Regarding The Remaining Deposits In SVB  * The remaining uninsured deposits shall get receivership certificates for their balances. Receivership certificate is a proof of the remaining uninsured deposit that the depositor holds in the bank. This certificate will help to get the remaining deposit post the bank’s asset liquidation  * The payout will be in dividends up to the total value of the certificates, as FDIC liquidates the assets of SVB as the receiver.  * In the coming week, an advanced dividend will be most likely paid by the FDIC. The advanced dividend amount is still undisclosed. This is over and above the $250,000 insured amount.  * FDIC shall be establishing a cutoff time for the transactions that were requested before the bank shut down. Cutoff time is basically the time decided by the FDIC until which the initiated transactions shall be processed and won’t be a part of the receivership certificate. The transactions initiated outside the cutoff time shall be caught up in the receivership.  * At the time of IndyMac collapse in 2008, about 50% was proposed to be paid as an advanced dividend. As per news article it is still to be believed that the asset quality of the investment made by SVB is better and as per experts there can be a haircut possibility of 15-20%. It remains to be seen how fast the takeover / liquidation process is done.   * All these activities can be influenced in the case of any other bank buying SVB over the weekend. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Steps to move from Money Market to FDIC insured Brex Cash 
 Author: Ankit Parasher Published: 2023-03-11 Category: SVB Depositors Meta Title: Steps to move from Money Market to FDIC insured Brex Cash 
 Meta Description: Here's a step by step guide for the SVB Depositors to move from money market to the FDIC Insured Brex Cash Tags: SVB Depositors, Indian startup in SVB , SVB and FDIC , Silicon Valley Bank , SVB Financial Group , SVB and India, SVB Collapse, SVB Deposit , Indian VCs in SVB , FDIC Insurance to startups , Startup headquarter in the us, SVB Indian Companies URL: https://salt.pe/blog/steps-to-move-from-money-market-to-fdic-insured-brex-cash ![Move-From-Money-Market-To-Brex-Cash](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-1678539768459-compressed.jpg) Silicon Valley Bank (SVB) is one of the largest banks in the US. It manages a majority of local deposits in the Valley. As the name suggests, SVB  Group also provided multiple services to  technology companies and VC and PE. It was the heart of operations for many Indian startups with US Holding Company.  **March 8, 2023:** SVB started trending on the news after recording a loss of approximately $ 1.8 Billion from a sale of investments. It was followed by a fundraise of $2.25 Billion. This resulted in their stock price moving down by 60%.  **March 9, 2023:** As the panic button was hit, the depositors started withdrawing their funds. $ 42 Billion worth of deposited withdrawal was done from the bank on March 9, 2023. There are billions worth of Pending requests! **Indian Companies have moved their money from SVB accounts via these routes** 1. Transfer to other neo bank accounts like Brex, Mercury, Aspire 2. Transfer to Offshore accounts in GIFT City 3. Transfer via FDI 4. Transfer to any other entity as the priority being to move money from SVB to any other bank account. **March 10, 2023:** SVB was shut down by the regulators.  The Federal Deposit Insurance Corporation (FDIC), which is in incharge of insured deposits, covers up tp $ 250,0000 per depositor, per bank for each account ownership category. **What’s Next:**  The Silicon Valley Bank (SVB) shall reopen on March 13th, 2023 and all the insured depositors shall have full access to their insured deposits, i.e. $250 K only.  The Federal Deposit Insurance Corporation (FDIC) said the uninsured deposits will get receivership certificates for their balances.  **Receivership certificate** is a proof of the remaining uninsured deposit that the depositor holds in the bank. This certificate will help to get the remaining deposit post the bank’s asset liquidation.  [Brex cash](https://www.brex.com/support/brex-cash) is protected to $1 Million by allocating funds to 4 different banks. We have created a quick **step by step guide** to move funds from Money Markets to allocate it with Brex partner banks for FDIC insurance cover till $1 million! Step 1: ------- ### **Select Allocations from the Main Screen. This would be in the Yield Section** ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-1-1-1678540542363-compressed.jpg) **​**Step 2:  ------------- ### Select the account you want to manage the allocation of ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-2-1678540048792-compressed.jpg) This takes you to the allocation page.  Step 3: ------- ### Select the Change Allocation Button ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-3-1678540168307-compressed.jpg) Step 4: ------- ### Change the allocation to FDIC Insured Partner Banks option. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-4-1-1678540316340-compressed.jpg) Step 5:  ----------- ### Select confirm.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-5-1678540412308-compressed.jpg) Note: The Brex Partner bank allocation is insured up to $1m as it’s allocated into multiple partner banks, also the Money market funds are invested in Dreyfus Government Cash Management Fund -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/steps-to-move-from-money-market-to-fidc-insured-brex-cash-6-1-1678540517406-compressed.jpg) This document has been created by the team at [Salt](https://salt.pe/) , a cross-border fintech based in India. This document is no way endorsed or created by Brex. We are not associated or endorsed by Brex in anyway or form. Please review official guides by Brex as well for further information. If you need some assistance in any form of fund transfers to India including [FDI to India](https://www.salt.pe/table), or any assistance whatsoever, kindly contact us at sudhanshu@salt.pe / ankit@salt.pe ---------- --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Starting A Business During Recession? - Make the most out of the opportunities Author: Ankit Parasher Published: 2023-03-06 Category: founders guide Meta Title: Starting A Business During Recession? - Make the most out of the opportunities Meta Description: Should you be starting a business during recession? Let’s find out how you can make the most out of the specific conditions a recession brings! Tags: business during recession , starting up during recession, recession proof businesses , recession proof URL: https://salt.pe/blog/recession-proof-businesses ![Recession-proof-businesses](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/starting-a-business-during-recession-1677666363054-compressed.jpg) Starting a business during recession Starting a business during recession often known as economic downturn and sluggishness might seem like an uphill battle. However, having a solid strategy and tackling certain obstacles can actually help you gain an edge over contemporary businesses. To get you started, here are five ways you can make the most of the unique circumstances only an economic recession brings!   What is the Recession? ---------------------- A recession is when economic downturns are typically characterised by a decline in the gross domestic product (GDP), high unemployment, and a drop in business activity. By starting a business during recession, the consumers and businesses may reduce spending, reducing demand for goods and services. This can result in a decline in production and a rise in inventory, which can lead to layoffs and further reductions in spending. Decreased asset prices, such as stocks and real estate, and a surge in borrowing costs often accompany recessions. This can also lead to a downfall in the value of the currency and a rise in inflation. So, it is always a better idea to start businesses that are recession proof. Recessions can occur by various factors, including economic imbalances, like high levels of debt or overproduction; global economic events, such as a decline in exports or a financial crisis; or internal factors, such as a decline in consumer confidence or a drop in business investment. Governments and central banks often take measures to try to stimulate economic growth in business during a recession, such as reducing interest rates, increasing government spending, or implementing fiscal policies to encourage consumer and business spending. These efforts are intended to help jumpstart economic activity and bring the economy out of recession. One can achieve the optimum result by starting a business during recession with the utmost strategy. Five ways to make the most of the opportunity --------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/5-ways-to-make-the-most-out-of-the-opportunity-09-1677675795372-compressed.jpg) To start a business during a recession can be difficult and challenging, but it can also be an excellent opportunity to build a strong foundation for long-term success. Being proactive, adaptable, and resourceful, you can position your business to thrive during tough economic times.  ### Identify areas of need Starting a business during recession, people may be more inclined to cut back on non-essential purchases, but they will still have needs that must be met. So for business during a recession, look for products or services people will continue to need and be willing to pay for, such as essential household goods, healthcare, and financial services. ### Take advantage of government programs Many governments offer programs to help small businesses weather economic downturns. Look into grants, loans, and other financial assistance available to help you get started or keep your business running during tough times. ### Protect your cash Even in a down economy, costs like rent, taxes, and salaries must be met. There has to be a steady flow of income and a reduction in wasteful spending to balance the books. You may boost revenue by advertising your most profitable goods and charging more for your time. In a bind? For starting a business during recession, try searching for a low-interest business loan to help you with expenses. ### Customer Marketing Do you know that a [25-95% boost in revenue is possible with only a 5% increase in client retention](https://blog.hubspot.com/service/customer-retention)? When the economy is in a declining stage, and people are looking for ways to save money while still meeting their goals, it's clear that marketing to your current clientele is the most cost-effective strategy. In light of the looming economic downturn, here are some pointers for effective consumer marketing if you are starting a business during recession: * Maintaining a personal connection with your current clientele may be accomplished via targeted email campaigns. * You can differentiate yourself from the competition by giving your consumers more than they bargained for in the form of better customer service, free upgrades to current features, in-depth assessments of their issues, demonstrations of how your product can address those problems, etc. * Give your customers a break or a bonus if they spread the word about your products. ### Conversion optimisation In this time of economic uncertainty, throwing your company's resources into a single venture is unwise. You wouldn't want to put all your traffic-generation in one basket, so to speak, if you're already in a financial bind; while throwing money at issues like "poor traffic" may provide the desired results initially, it is ultimately not a viable method. Let's imagine you've decided that guest checkout is the key to keeping customers from leaving your site and increasing sales. To determine which experience is more effective at generating income, you may compare it to another (the control without guest checkout) and a variant (with guest checkout). You'll go for the one more likely to result in a conversion. That's the best option. Which are the businesses that are Recession Proof? -------------------------------------------------- Starting a business during recession which provides critical services, such as healthcare, elderly care, food shops, and home repairs (plumbing, electrical, etc.) means they are less likely to suffer during economic downturns and are part of businesses that are recession proof. It is because of the relatively low elasticity of their customers' demand. However, streaming services, video games, computer hardware, cybersecurity consulting, and information technology support are all booming industries in today's digital landscape. Therefore, these businesses come under the category of businesses that are recession proof. When times are tough, discretionary spending is the first to go. Consumption-based businesses like restaurants, clothing stores, and grocery stores are expected to suffer. You're more risk-averse than you realise if you consider whether the sector is recession-resistant. Conclusion ---------- While there are certainly challenges to starting a business during recession, there are also compelling arguments in favour of doing so. Consider the aforementioned suggestions if you're considering launching a company amid a downturn. Keep hope and work toward your goals; persistence and effort will pay off. Moreover, it is best suggested to always choose businesses that are recession proof to avoid the loss which might come through other areas.  As you start the business, you are also responsible for the team working with you. Here's a blog on [being an employer during recession.](https://www.salt.pe/blog/being-an-employer-during-the-recession)​ Salt is a neobank dedicated to offering you the utmost ease when it comes to conducting global business with local accounts! Give [our website](https://www.salt.pe/) a visit to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 7 Tools For Freelance Web Developers - Everyday Tools 2023 Author: Ankit Parasher Published: 2023-03-04 Category: Freelance Tags: freelance web developer, freelancing tools , web design tools , freelance gigs , web development agency, web development , tools for freelancers, freelance business , web development tools , freelancing clients URL: https://salt.pe/blog/freelance-web-developer-tools ![Freelance-webdevelopers ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/top-7-tools-for-freelancers-in-web-development-react-1677913790383-compressed.jpg) Best tools for your freelance web development career Developers are frequently busy. It's simple to go from having complete control over your workload and activities to complete anarchy in a matter of minutes, especially when you're a freelancer. Perhaps a dependable client needs a crucial task completed right away, or perhaps you simply ran into a roadblock on a project.  Having the greatest tools at your disposal can make a world of difference when it comes to web development for independent contractors. There are several solutions available to meet your needs, regardless of whether you're just getting started or looking to update your current toolkit.  Tools and processes that save time are always beneficial. You'll frequently need to cooperate with or lend a hand to a client's staff when you work freelancing. A great deal of time, trouble, and effort can be saved by using tools that make it quicker and easier to organize.  By utilizing the following tools and resources, you may increase your output and succeed as a freelance web developer. Trello - Communication and Collaboration tool  ---------------------------------------------- [Trello](https://trello.com/) allows you to make boards and add cards to reflect activities you need to do or have been given. Trello is incredibly adaptable and can be used for a wide range of tasks, from managing personal tasks to managing projects and tasks for your organization. You won't succeed as a freelance web developer if you don't maintain cleanliness. Trello may assist you in managing anything, including website design and daily tasks. Trello lets you create labels, choose colors, and do a lot more. Trello is an essential tool for independent web developers, especially those who frequently need to work with other independents. This program functions as both a personal organizer and a project management tool. Trello can be used to manage any activity, and if you're a habitual list creator, it's perfect for you. Trello may be divided up, however, you see fit, making it simple to adapt it to the way you operate or the way your brain naturally tends to keep track of things. It's a terrific technique to ensure that you never overlook a crucial content update or modification again. Figma - A design tool --------------------- [Figma](https://www.figma.com/) is a web-based design tool that enables real-time project collaboration between designers. It is a cloud-based platform that provides UI/UX designers, product designers, and graphic designers with a range of capabilities. Tools for vector manipulation, prototyping options, and design libraries are a few of the features. The ability for numerous team members to work on the same project at once is one advantage of utilizing Figma. This helps shorten the time it takes to finish a project and makes it simpler for designers to collaborate with one another. Moreover, Figma provides a selection of design materials and templates that may be utilized to swiftly produce high-quality designs. It is also simple to import and export designs as needed thanks to the platform's integration with other design tools and services. Overall, Figma is a strong design tool that provides designers with a variety of features and advantages. Figma can assist you in rapidly and effectively producing high-quality drawings, regardless of whether you are working on a small project or a large-scale design. React - Web development framework  [React](https://reactjs.org/) is a tool that independent web developers may find to be quite helpful. ![Freelance-webdevelopers-tools ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/top-7-tools-for-freelancers-in-web-development-1677913844701-compressed.jpg) React Web Development Tools  Yet there are particulars. The following are some crucial tools that any web developer should take into account: ### 1\. React Developer Tools With the help of the browser plugin React Developer Tools, you can examine the React component hierarchy in the virtual DOM of your application. Edge, Firefox, and Chrome all support it. ### 2\. Develop a React app A command-line tool called Build React App makes it simple to start a new React project. It offers a pre-configured build process and development environment. ### 3\. React Router  A well-liked package called React Router is used in React apps to implement client-side routing. It makes it simple to develop single-page applications.  ### 4\. Redux You can manage the state of your React application with the aid of the state management library Redux. It offers a centralized and predictable mechanism to handle the application state.  ### 5\. Jest For testing React apps Jest is a framework. It offers a straightforward and understandable way to create unit and integration tests for your apps and component parts. Git: version control -------------------- A version control system that enables smooth cooperation with clients and other developers is essential for independent web developers. [Git](https://git-scm.com/) is a strong tool that gives you the ability to track progress, manage changes to your codebase, and work on several features at once. Git makes it simple to go back to earlier versions of your codebase if necessary by allowing you to trace changes over time. When cooperating with numerous developers or working on bigger projects, this is especially helpful. Git makes it simple to construct many branches of your codebase, which makes it simple to work on various features or bug fixes at once. This can help you meet deadlines by dramatically hastening the development process. Git is a crucial tool for any independent web developer aiming to improve their development process and enhance collaboration with clients and other developers. Github  ------- Freelance web developers frequently use [GitHub](https://github.com/), a web-based platform. It is a platform for hosting code that enables developers to manage their code and work together on projects. For independent web developers, GitHub offers a number of tools that are particularly helpful. For instance, it enables developers to establish and maintain repositories, monitor code changes, and work together on projects. The fact that GitHub enables developers to showcase their work is one of its main benefits. With GitHub, independent web developers can set up a profile with details about their qualifications, work history, and current projects. Potential customers can view the developer's portfolio and assess their abilities by viewing this profile, which can be shared with them. GitHub is an excellent tool for learning and sharing knowledge in addition to these advantages. Developers can have a look at the work of other developers, get insight from their code, and participate in open-source initiatives. GitHub is a crucial tool for independent web developers. Visual Studio Code - Code editors  ---------------------------------- Microsoft's [Visual Studio Code](https://code.visualstudio.com/) is a source code editor that can be used with virtually all programming languages. The configurable capabilities of this code editor have gained a lot of popularity in recent years, and many people find them to be very appealing. This tool was created by Microsoft to be incredibly flexible. Debugging is supported, and it even accommodates snippets and intelligent code completion. A developer won't miss many features using this code editor. But just in case, the associated repository contains a complete selection of plugins. Windows, Linux, and Macintosh are all supported by the fully open-source Visual Studio Code software. It's critical to understand that VS Code isn't a complete IDE. What you get is an extremely efficient code editor that you can easily adapt to meet your working style.  Freelancers receive a tool that is intended to help them efficiently complete the code-debugging cycle. There is even a portable version that you may use, such as on a USB drive, to run it where your installation is. SALT - International Payments ----------------------------- Receiving money from overseas is a labor-intensive operation. To ensure that money is transported safely across borders, there are several different methods. Real borderless solutions for international banking are offered by Salt.  [SALT](https://www.salt.pe/blog/upwork-marketplace-for-freelancers) is being used by companies in India to quickly and affordably collect payments from clients all over the world in a variety of currencies. With SALT fintech, you may send money within 24 hours, anywhere in the globe, for just 1.75% of the total transaction value.  There is no minimum transaction requirement for SALT, regardless of your status as a student, consultant, freelancer, or owner of another kind of business. By using SALT, there aren't any added expenses, yearly subscription fees, or markup rates. The cost of withdrawals is zero, and no account will be on hold.  Besides these, as a freelancer you also need to manage the finances of your business as well, which starts with generating and managing proper invoices. Here are the [best invoice generator tools for freelancers](https://www.salt.pe/blog/invoice-generator-tools-for-freelancers). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## All About Salt Fintech - Why was the startup built? Author: Ankit Parasher Published: 2023-02-28 Category: Salt Fintech Meta Title: All About Salt Fintech - Why was the startup built? Meta Description: SALT aims to make it easy for businesses to receive global payments in India. Why did we start our journey, and what do we aim to do? Here's what you need to know! Tags: Salt fintech , SALT, small business, SMEs, SME problems URL: https://salt.pe/blog/salt-fintech ![All-about-salt-fintech](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-salt-fintech-built-01-1677489014705-compressed.jpg) All about Salt Fintech  SALT is the one stop solution for receiving global payments India stands as the world's largest recipient of foreign remittances, thanks to the growing business environment throughout the country. It [received $87 billion in 2021](https://www.business-standard.com/article/economy-policy/india-received-87-billion-in-remittances-in-2021-world-bank-121111800329_1.html) in remittances. The United States was the largest source of these inward remittances, accounting for more than 20% of these funds.  Receiving global payments, on the other hand, can be quite expensive. A remittance transaction's costs include a fee charged by the sending agent. This is typically paid by the sender. Further, there is a currency conversion fee for delivering local currency to the beneficiary in another country. However, to make it easier for small businesses and SMEs to seamlessly receive global payments, SALT came into action.  Contents * [What is the SALT Startup?](#what-is-the-salt-startup) * [What does SALT do as a Fintech Startup?](#what-does-salt-do-as-a-fintech-startup) * [Who are the founders of SALT?](#who-are-the-founders-of-salt) * [Who Uses SALT FinTech?](#who-uses-salt-fintech) * [How is SALT helpful for Businesses?](#how-is-salt-helpful-for-businesses) * [Conclusion](#conclusion) What is the SALT Startup? ------------------------- SALT is a digital-only cross-border payment experience for SMEs. We assist in providing banking, documentation management, and workflow automation solutions to small-size exporters and importers who are actively dealing with international transactions. What does SALT do as a Fintech Startup? --------------------------------------- SALT is a neobank that strives to make cross-border payments as simple as possible for businesses. SALT enables you to send money from abroad within a day for a low fee of 1.75% of the total transaction amount. In addition, unlike traditional financial institutions, the SALT verification process is straightforward and quick. Simply register for SALT and fill out the required information from the comfort of your own home.  Domestic transactions have become much more smooth and simple thanks to UPI. However, international transactions remain complex and are scrutinised more closely by government agencies. Especially if it is a business transaction. There are many legal documents involved in addition to the banking process. We intend to handle not only banking but also the associated documentation. By 2025, we aim to make international transactions as simple as UPI payments.  Who are the founders of SALT? ----------------------------- SALT was founded in 2020 by [Udita Pal](https://yourstory.com/herstory/2022/03/co-founder-indias-first-cross-border-neo-bank-salt) and Ankit Parasher.  Udita received her bachelor's degree in mass communication in 2017. As a team member of Opentalk, Tapchief (acquired by Unacademy), and Manch, Udita has worked in product growth, marketing, and brand. She has also served as a consultant to over 35 startups worldwide, assisting them in scaling from 0 to 1. Ankit graduated from IIT Kharagpur with a bachelor's degree in electronics engineering. Then he went on to earn a bachelor's degree in law. LetsTransport was previously co-founded by him. This technological logistics platform has previously raised over $35 million with Ankit's contribution. He has been named one of Forbes Asia and India's 30 under 30. Curious to know why we named the startup 'Salt'? Here's a blog on [why do we call SALT 'Salt'](https://www.salt.pe/blog/why-do-we-call-salt-salt-ckuo6uoy633291ns9554ibq12). Who Uses SALT FinTech? ---------------------- ![Clients-of-Salt](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-salt-fintech-was-built-1677493147323-compressed.jpg) As mentioned earlier, SALT is made to make cross-border payments easier than ever before. SALT does not have a minimum transaction amount. Therefore, if you are a startup, an LLP, a private limited company, or a SME, using SALT is convenient for all. When you use SALT, there are no hidden fees, annual subscription fees, or markup fees. As a result, with us, any business, even a large corporation, can easily perform global cross-border payments.  How is SALT helpful for Businesses? ----------------------------------- We currently have two products on the market. Our flagship product, 'Inward Remittance,' allows small businesses to remit funds by opening virtual accounts in the UK and the US. By partnering with banks and financial services in 50+ countries and six currencies, we enable businesses to set up virtual foreign currency accounts. On each transaction, businesses are charged a flat percentage. We have completed [$10 million in transactions](https://inc42.com/startups/30-startups-to-watch-startups-that-caught-our-eye-in-june-2022-fintech-edition/) between March and May 2022, with 300+ clients on board. Every transaction on SALT is safe and compliant because we work with banks regulated by the RBI and respective regulators in each country. These regulated partners hold and manage transactions. 'Table by SALT,' the second product, is still in beta. It is a tool that assists early-stage startup founders in raising funds from foreign investors by automating fundraising, banking, and compliance tasks. SALT allows you to fill out and submit RBI and MCA filings, open a capital account, create a valuation report, and receive foreign investments in a matter of seconds. Businesses can use Table by SALT to manage pre-funding compliance. These include the management of notice, board resolution, and shareholding agreement, among other things. Manage post-funding compliance for foreign investments under the RBI, MCA, and FEMA, and expedite FCGPRS, FCTRS, and other filings. ### Conclusion We do hope this post has helped you understand Salt as a fintech and our functions better. Interested in learning more about our products? Give our [website](https://www.salt.pe/) a visit today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Everything To Know About Upwork Marketplace For Freelancers Author: Ankit Parasher Published: 2023-02-24 Category: Business Tools Meta Title: Everything To Know About Upwork Marketplace For Freelancers Meta Description: Upwork has become one of the largest platforms for freelancers to engage with meaningful work projects and build up their own network within the community. Tags: banking for freelancers, freelancing, freelancing india, freelancing services, upwork , upwork marketplace, upwork for freelancers URL: https://salt.pe/blog/Upwork-Marketplace-For-Freelancers ![Upwork-for-freelancers](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/everything-to-know-about-upwork-marketplace-for-freelancers-1677481283121-compressed.jpg) Upwork Marketplace For Freelancers   Are you a freelancer failing to get suitable work projects? If the answer is yes, then it’s high time you find out about [Upwork marketplace](https://www.upwork.com/). It can be called as one of the largest engagement platforms for freelancers to connect with clients. Freelancing services offer an exclusive freedom to the person in terms of work and the projects that they take up. Moreover, freelancers also have the benefit of working from anywhere in the world and at any time they find fitting. Upwork is a platform that allows clients that require a project to be completed to post the requirements and get proposals from the freelancers. It is a place where both the clients and the freelancers can find efficient solutions related to work projects. Whether you’re already a freelancer or considering switching to freelance work, learning about Upwork is essential for today’s world. In this post, we explain how the Upwork platform is beneficial to freelancers! What is Upwork for Freelancers? ------------------------------- You must have heard of different marketplaces when it comes to purchasing any product or service you want. Similar to such places is the Upwork marketplace. It is one collective platform where clients post their project requirements and are approached by the freelancers. In technical terms, whenever a person has some project they want to be finished by a freelancing professional, they post it on Upwork to get proposals. People then offer them freelancing services and submit proposals regarding how much time and money they will take to finish the project. It is a simple exchange-based marketplace where the freelancers offer services for a suitable price. The best thing about this platform is that it offers complete freedom related to work projects to both freelancers and the clients. Upwork collects some commission from the freelancers whenever they are paid by the clients. This fee is usually twenty percent of the whole project cost.  What’s more, the payment option can be chosen by the freelancers at the Upwork marketplace. They can choose to be paid as they achieve different milestones or when they finish the project. The transfer is usually done using PayPal and in the US dollar. How Freelancers Can Create Their Work Profile? ---------------------------------------------- As a freelancer, you will need to create a work profile on Upwork in order to get associated with the projects posted on the platform. Consider it similar to creating a resume for a job that you would normally apply for. Even for remote working cases, this work profile is important for the clients to check whether you can finish their projects on time with the best quality or not. This profile requires you to update the personal details first and then update all the educational details along with the skills that you have. You should then enter the work experience that you have in all the fields collectively. Moreover, if you have been associated with Upwork clients previously, you should mention that as well.  Having different certificates on the work profile related to courses that you did can be a great plus point for your profile. After finishing all the details, you will need to choose the domain that you wish to provide freelancing services for and the fee that you will charge for an hour of work. All these details then constitute the overall work profile of a person which is visible to the clients who are listing projects in your chosen domain. How To Apply For Projects? -------------------------- ![How-To-Apply-On-Upwork-Marketplace](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-apply-for-projects-on-upwork-1677489126556-compressed.jpg) Now that you are done with creating your profile and have chosen which domain you want to work in, the last step is to apply for the projects. Since the Upwork marketplace has clients from all over the world, there are continuous postings about work requirements. You can go through all the projects that are posted on the platform and shortlist the ones that you wish to work upon. After you are through with it, start submitting proposals to the clients with your resume, your proposal letter and the charges you will take to finish the project. Also, you will need to answer whether you want to be paid on milestones as part payments or get a single payment once the project is finished. There is no pre-payment of any kind over this marketplace.  The procedure to apply for projects is quite simple for freelancers on Upwork, as you might have already realised. As soon as a client accepts your proposal, you can start working on the project according to the deadline and make the submissions. Stand Out On Upwork ------------------- The most effective way to appeal to a client is to stand out from the crowd. You should update your work profile from time to time and keep adding skills. You should develop your pricing based on the kind of work, the experience that you have and also the industry that you are working in. You will need to write great proposal letters to get projects and also maintain the relationships with all the clients to get great ratings on the platform. Moreover, you can look for best performing freelancing profiles on the platform and learn from them when it comes to bringing in an x-factor.  Talking about marketplaces, here's a blog on the [pros and cons of selling on Amazon marketplace.](https://www.salt.pe/blog/the-pros-and-cons-of-selling-on-online-marketplaces-like-amazon-cl1yqe5t9457831jqn6a9iic6b)​ ### Conclusion So, to sum up, Upwork is a platform where freelancers can set up business with ease, and build a wide, diverse network of their own as they continue to work by their own rules. Signing up on the platform is fairly easy, and it brings a range of benefits for freelancers not many other platforms have so far. Salt is a neobank dedicated to providing you with the ease of doing global business with local accounts. Salt brings one of the [best ways](https://salt.pe/blog/accept-international-payments-as-a-freelancer-working-with-overseas-clients-cl6vw45ad40831mn3me2ftiqu) to receive international payments in India for an Indian freelancer as well! Want to know more about us? Give [our website](https://www.salt.pe/) a visit today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is the difference between SWIFT and Local Transactions? Author: Ankit Parasher Published: 2023-02-14 Category: SWIFT Transactions Meta Title: What is the difference between SWIFT and Local Transactions? Meta Description: Which one should you choose: SWIFT transactions or local transactions? That’s exactly what we discuss in this post! Tags: international money transfer, cross border payments, cross border banking , CROSS BORDER PAYMENTS INDIA, SWIFT money , international transactions, swift message system , swift URL: https://salt.pe/blog/null ![What-is-the-difference-between-SWIFT-and-Local-Transactions](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-the-difference-between-swift-and-local-transactions-1676643763691-compressed.jpg) What is the difference between SWIFT and Local Transactions? ​ When it comes to transferring a payment, you have a range of options at your disposal, very prominent among them being SWIFT transfers and local transactions. Which one should you choose between the two? That’s exactly what we discuss in this pos What is SWIFT?  --------------- SWIFT is the shortened version of Society for Worldwide Interbank Financial Telecommunication. It is an organisation that standardises international financial transactions. It was established when banks worldwide required a reliable, uniform method for international money transfers.  It's a frequent misperception that the SWIFT network acts as a portal for cross border payments; in reality, it uses SWIFT codes or BIC  (Bank Identifier Codes) to convey information and payment requests between financial institutions.  The SWIFT International Payment network is a safe, computerised, worldwide system for payments and settlements. A SWIFT wire transfer is initiated by the payer's bank debiting their account, and it is completed by the recipient's bank crediting their account after passing through many intermediary banks in the SWIFT network. The largest financial communications system in the world is this type of telegraphic transfer (TT), also sometimes referred to as a wire transfer. The SWIFT network is the most widely used infrastructure for international money transfers and the largest financial messaging system in the world. Read a detailed blog on [how does SWIFT payments work](https://www.salt.pe/blog/how-does-swift-payment-works). What Are Local Transfers? ------------------------- Real Time Gross Settlement (RTGS) and other electronic local payment systems are used for local transfers. To transfer money to the local bank account of the remittance provider in the sending currency, the customer utilises a domestic transfer. The remittance provider handles the FX conversion through its network, and the converted amount is paid at a pre-set rate in the destination currency.  In the past, telegraphic transfers (TT) or SWIFT transfers were frequently used for international money transfers. However, local transfers are now becoming more popular due to the significant benefits they provide to end users. Local bank transfers let you pay someone using their local bank through a network of international financial institutions. The method eliminates the need for middlemen banks by using a global network of bank accounts in local currencies to settle bank transfer payments (also known as remittances) between the two parties. Requirements For SWIFT Transfers And Local Transactions ------------------------------------------------------- A SWIFT code, a special string of 8–11 characters used to identify the particular bank to which your funds are being transferred, is necessary for SWIFT transactions. This means that to facilitate the transfer of SWIFT codes, all concerned financial institutions must be a part of the SWIFT network.  Instead of using conventional banking networks that handle SWIFT transfers, local bank transfers only require the recipient's bank account information and a reference number.  ![How-Does-a-Swift-Payment-work](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/swift-payment-1676643944623-compressed.jpg) How Does a Swift Payment work How much does a SWIFT transfer cost? ------------------------------------ Due to fees that might be assessed by both correspondent and recipient banks, the complexity of SWIFT transfers frequently leads to greater expenses. When you transfer money between banks in different countries, each intermediary bank levies a processing fee or commission. Additionally, there is no set fee schedule due to the SWIFT payment network's global reach. When transferring sizable amounts of money that local channels cannot handle, SWIFT is more advantageous. The fee for a SWIFT transfer is determined by the specific bank or financial institution handling the transaction.  Typically, there are two types of fees involved: transactional charges and exchange rates. The transfer and receiver fees are also included in the costs; each bank typically fixes these prices. In some circumstances, if an intermediate bank is used to transfer the money, you can additionally be charged a "correspondent bank fee." In an emergency, you can always pay a priority payment fee to shorten the time it takes to process your payment. As for the exchange rate, the quantity of money you want to send will also affect the exchange rate that is charged. Which Method Is Better: SWIFT or Local Transactions? ---------------------------------------------------- After being well-versed in each bank transfer technique, now you need to pick the one that better suits your needs. You should of course take time into account while making a transfer. It is preferable to use a SWIFT wire transfer if the speed and timing of the transfer are crucial to the customer according to their circumstances.  However, the key benefit of local transfers over SWIFT transfers is that there are no additional hidden costs. A local bank transfer also has lower fees because it saves the client money on foreign exchange rates and other expenses related to other cross-border transfer methods. However, the transfer's initiating country must be where the receiving currency is used. The extent of SWIFT and Local Transactions ------------------------------------------ Over 10,000 financial institutions in 212 nations are connected securely through SWIFT, which says a lot about SWIFT’s credibility. On the other hand, due to their convenience, local bank transfers are quickly gaining popularity worldwide. Through a strong network of regional banks and payment processors, the customer can contact just about anyone worldwide. However, only the currencies supported by their network may be allowed when working with cross-border remittance providers. To sum up, here’s your requirements for both kinds of transfers, and other features to keep in mind, in brief: Type of Transfer Requirements Cost  Exchange Rate Area of Reach SWIFT SWIFT code Quite high charges  Poorer rates Banks and financial institutions allied with SWIFT; so over 10,000 institutions in 212 countries across the globe Local transfers Bank details Lower charges More cost-effective Not limited to selected banks Conclusion  ----------- Nearly 50% of all global cross border payments are made through SWIFT transfers, an established and trustworthy bank transfer technique. While going for a local transfer, make sure to remember to ensure that all transactions are carried out safely and securely, it is crucial to use a bank governed by the local authority with the proper anti-money laundering and fraud checks. Salt is a neobank dedicated to help you manage your global finances with the convenience of local accounts. Want to find out more about us and what we do? Give [our website](https://salt.pe/) a visit today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Setup LinkTree Account For Your Business Author: Ankit Parasher Published: 2023-02-14 Category: Business Tools Meta Title: How To Setup LinkTree For Your Business Meta Description: LinkTree for business is a collection of all the social media links and payment gateways related to a business. It is a must-have to build a solid web presence. Tags: startups, SMEs, Linktree for business, linktree set up, setup linktree URL: https://salt.pe/blog/Setup-LinkTree-Account ![How-To-Setup-LinkTree-Account-For-Your-Business](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-setup-linktree-account-for-your-business-1676644034591-compressed.jpg) How To Setup LinkTree Account For Your Business? Source / Setup LinkTree for businesses  Every business receives a good amount of new customers through social media. Social media marketing is getting much traction for this reason alone. This is why SMEs and other enterprises are trying to build their presence on all social media platforms. Along with the social media presence, businesses and startups require a central hub for storing the links to all their social media accounts, payment gateways, resources and the website.  LinkTree serves as this centre for every big and small business. LinkTree is a tool that allows users to create one link to store all their social media links, resource links, payment gateways, and much more, and thus solidify their web presence. As the name suggests, it is like a crate of links that the users wish to share with others. It helps save the time and effort put into adding different links for different sources at the end of blogs, in the bio, or even at the end of a technical description. LinkTree for business ensures the content team can paste all links for every platform.  But the bigger question here is how to set up LinkTree for business. Let’s look at this description to learn more about the platform and how to use it for startups, SMEs and bigger enterprises.  Create An Account  ------------------ ![Setup-LinkTree-Account-For-Your-Business](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-setup-linktree-account-for-your-business-salt-1676644096595-compressed.jpg) Setup LinkTree Account For Your Business Source / Setup LinkTree for your business  The first thing any business has to do as an introduction to setting up a LinkTree is to create an account on the [LinkTree website](https://linktr.ee/). So, how to setup LinkTree? * All SMEs and startups can opt to go with the free plan of this tool. You have to visit the website and click on start for free.  * Then the page is redirected to a registration window. * Enter the details that are asked of you and make your account on the platform.  * To continue with a free account, you must choose to continue for free at the end of the registration. After this, the steps are pretty simple. **Verify Your Account**   ------------------------- The next step after successfully registering your business and all its information on LinkTree is verifying the account.  A verification link is sent to the official email of the business. You need to click on verify now to complete the account verification. This verification is necessary to be sure that the business operates the account created in the name of a business. An official email address is necessary for all startups, SMEs and enterprises. The verification step also helps the users understand that setting up a LinkTree for business is safe. Choose the Appearance  A LinkTree for business looks like a storage of all the social media links, payment gateways and other resources. Most of the time, businesses do not care about how this central hub looks, but the looks of this hub create or deplete the interest in visitors. After you are done with creating and verifying your LinkTree for business, you have the liberty to decide your appearance on this platform.  Firstly, you can add the brand logo or motto for the startups. The logo that the users select appears on top of the platform when a user opens the link. Users can even select how the background looks based on the nature of the business and the logo as well. Users have the creative freedom to make the LinkTree look as aesthetic as possible. Depending on how the platform looks, the audience impression is also decided. So, if you wish to have an impressive LinkTree, better put your most creative people on selecting the appearance. Add The Links  -------------- Now the final step towards setting up a LinkTree for business is the addition of all the links. Choose the option ‘Links’ that is prompted on the screen to start adding the links. After pasting every link, add the title to each so that the audience who visits this platform is not confused. The web links need to be checked now and then for whether they are still working. Posting broken links can damage the brand presence of startups and SMEs.  After adding all the links, you can go with LinkTree for the business link. Users can either share this link via QR code or copy the overall link to the LinkTree website from this prompt. Now, this link or QR can be pasted at the end of blogs, in the bios of various platforms or even shared on different platforms. Also, read if you want to [set up shopify account for your business](https://www.salt.pe/blog/setting-up-your-shopify-business-account-key-points-to-keep-in-mind-cl1q5uhup159541inzotmhu98g). ### Conclusion  LinkTree for business is a very useful tool in the present scenario. Every business has a web presence on multiple platforms, and requires sharing all those links with others. Suppose not the social media links but the links to payment gateways or neobank accounts like Salt are necessary. In the present situation, neobanks like [Salt](https://www.salt.pe/) provide great services, and payments to businesses can be sent directly to these accounts via a link.  Now, LinkTree allows all users to post the links through one platform rather than separately. So, the use of LinkTree is an excellent choice for a business. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Find Your Routing Number For CAD Transaction - International Transfers Author: Ankit Parasher Published: 2023-02-14 Category: Routing Number Meta Title: How To Find Your Routing Number For CAD Transaction Meta Description: Routing number is a combination of eight numbers that represent the branch and bank details of a bank account in Canada, India, the US, and a number of other nations. Tags: financial institutions, international transactions, Routing Number , CAD Transactions, Canadian Dollar , Transfer Canadian Dollar, how to find a routing number, routing number bank, routing number mean, routing number vs. account, CAD transaction, routing number, institution number, transit number, international business banking URL: https://salt.pe/blog/how-to-find-routing-number ![Routing-Number-For-CAD](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-find-your-routing-number-for-cad-transaction-1676461036508-compressed.jpg) How To Find Your Routing Number For CAD Transaction Are you planning on making a transaction involving cash against documents (CAD)? Then you will probably need a routing number to complete the transaction. All banking or financial institutions have a routing number which indicates the bank and the branch in which a customer has their account. But what does a routing number mean, and how to find a routing number, you may ask.  Every country has a separate way of identifying bank accounts, and most financial institutions rely on the routing number. This number is essential even for international transactions, which is why you would be asked for it if you wanted to do a CAD transaction.  ![](https://lh6.googleusercontent.com/GfYq56y4xQKpe2mH5fySeOazl0qNfxAQnEIBnz-zVw2wf9FurqfrXatVN3PKhvdZx6Rdhk01lt2TXsBuwcDY-_0Oi6hC1Q1lWBhCvagTLC5Bzg_z3_FQWLEADQy2USzLCCGHvtJi95jZNSqyiQz2VmI) [Source](https://cansumer.ca/routing-numbers/) / Routing number for CAD transaction  Many people need to learn such financial terms, especially budding startups that await funding from abroad. So, you must wonder what this number is and how to find it for a CAD transaction. Let’s take a leap into this topic and learn how to find your routing number! What Is A Routing Number?  -------------------------- So what does a routing number mean? In every country, banks and financial institutions have a separate identity from normal business entities. This is to ensure that the financial system of the country operates smoothly. Countries have a specific way of recognising such financial institutions, called the routing number. Every financial institution uses the routing number to process fund transfers and cheques. But how to find a routing number? In countries like Canada, India, and the US, the routing number is essential for all financial transfers. Routing numbers used by banks and financial institutions within the country help process bills and business invoice payments. Neobanks like [Salt](https://www.salt.pe/) also use such routing numbers to recognise the bank account with which it is associated. Usually, the routing number is a combination of eight to nine digits. The first three digits denote the bank in which the account holder has an account, and the last five to six digits denote the branch in which that account is located.  How To Find A Routing Number?  ------------------------------ There are multiple ways that a person can find the routing number associated with their bank account. For a transaction involving cash against documents, the routing number bank provides is required to ensure that the transfer gets credited to the right account.  There are several ways to find the routing number bank provides for cash against document transfers. If your business imports from foreign countries or requires multiple assets from elsewhere, you will need cash against document transfers. The goods are released by a seller only when they receive the payments from the buyer. So, the routing number plays a crucial role in assigning the transaction to a specific account and completing the CAD transaction.  ### Look at the Cheques  The most basic way of finding out the routing number of any account is to look at the cheques. At the bottom of every cheque, there is a numeric arrangement which signifies the routing number if you have its knowledge. The first five digits of the arrangement give the transit number, while the next 3 to 4 digits give the institution number. You can get the routing number for your CAD transaction by combining these values.  Following the transit number and the institution number, there is also the account number of the user - written on the cheque. If you require the account number, you can also look at the cheques from the seller. It would help if you got a cancelled cheque scanned and sent to you from the seller so you can confirm their routing number for the transaction.  It’s easy to mix up routing number and account number for those not in the know, so how does routing number vs. account number shape up? Essentially, while a routing number points out the institution that your account is with, the account number clarifies your particular account among all the ones created with the institution. We do hope this clears up the routing number vs. account number debate for you.  ### Check the internet  Financial institutions often list the routing numbers of their branches on their official websites. You can search for the keywords, including the routing number, the bank's name, and the branch where you wish to send the money. You may even search for how to find a routing number for a specific bank and branch. For a CAD transaction, you must present the payment as a prerequisite. This means you must be sure of the routing number to get the goods released in your name from the seller. Multiple finance websites keep a directory of the routing numbers of all the banks; you can also check these websites to get the routing numbers.  ![Routing-Number-For-CAD](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-find-your-routing-number-for-cad-transaction-1676644190969-compressed.jpg) Your Routing Number For CAD Transaction ### Online Banking  All the financial institutions, including the neobanks like Salt, upload crucial information related to a bank account on their online banking login. Customers can just log into their accounts and check for the routing number of their accounts. This means you can ask the sellers for their routing number through the online banking method. Enterprises and startups generally use it all over the world.  ### Monthly Statement  Every bank account is managed through bank statements, and users can get them printed on a statement book/passbook. The statements book has the routing number printed on it. In some countries, banks print them on the upper right corner of the statement copy. But, it may change for different banks or regions. So, try to find the transit number and institution number from the book of the statement. Using these two, you can form the routing number for the CAD transaction.  This was related to CAD transactions, if you are doing transactions in EUROs, you should read about [Single Euro Payments Area (SEPA)](https://www.salt.pe/blog/single-euro-payments-area-sepa) as well!  Conclusion  ----------- We do hope this post has helped you understand what a routing number means. For cash against document transactions, transferring funds on time to the seller is important for all businesses and startups. CAD transactions are usually used in international trades. The routing number plays an important role in the recognition of the bank account of the seller.  We do hope this post helped you understand where to find the routing number for a CAD transaction. Even though the conventional banking system still lags, neobanks like [Salt](https://salt.pe/) have already turned completely digital to facilitate such transactions. So, it is best to use digital methods to complete CAD transactions and have easier operations in business. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Can A Bank Pull Back An ACH Payment? Author: Ankit Parasher Published: 2023-02-14 Category: ACH Transactions Meta Title: Can A Bank Pull Back An ACH Payment? Meta Description: It is generally possible to reverse ACH payments under certain circumstances. If the sender acts fast enough, the bank may still have time to reverse the payment. Tags: ACH Transfer , ACH Payment , ACH transaction, ACH money to India , ACH transcations, ACH for international, ACH payment URL: https://salt.pe/blog/Can-A-Bank-Pull-Back-An-ACH-Payment ![ACH-Payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/can-a-bank-pull-back-an-ach-payment-1676349904844-compressed.jpg) Can A Bank Pull Back An ACH Payment? Introduction Even when a sender thinks they have checked and confirmed all the details before making a payment, mistakes can still happen, such as small errors in the amount or payments being sent to the wrong recipient. Reversible payments are essential to deal with such cases. The **Automated Clearing House (ACH) system** is an electronic network used to process a variety of financial transactions, including bill payments and direct deposit of paychecks in the US. If there is a problem with an ACH payment, it may be possible to stop or reverse it, unlike [wire transfers](https://www.salt.pe/blog/what-is-a-wire-transfer) which are typically not reversible. What are ACH payments? ---------------------- An ACH payment is an electronic bank-to-bank payment that is processed through the ACH network in the US rather than using a credit card network like Visa or Mastercard. ACH payments are also called [ACH transfers or ACH transactions](https://www.salt.pe/blog/how-to-make-ach-transaction). Mainly, there are two categories of ACH payments: **direct deposits and direct payments.** ### Direct deposits  These are payments made by businesses or government agencies to consumers, such as payroll, employee expense reimbursements, government benefits, tax refunds, annuities, and interest payments. ### Direct payments  These are ACH transactions made by individuals or organisations using their funds. This type of ACH payments is the main focus of this guide. Unless otherwise stated, references to ACH payments, ACH transfers, or ACH transactions in this guide refer to direct payments. **Are ACH payments reversible?** -------------------------------- It is generally possible to reverse ACH payments under certain circumstances.  ACH payments take longer to process than wire transfers, typically taking more than three business days to appear in the recipient's bank account. This means that if the sender acts fast enough, the bank may still have time to reverse the payment. It is vital to notify the bank as soon as you notice any unusual payments.  The best time to contact the sender's or recipient's bank is within two days of the posted ACH transaction. If you wait for **more than 60 days after receiving your bank statement** to report an error in an ACH payment, you may be responsible for any losses to your account, as the bank will not be able to reverse the payment.  ACH reversals are governed by specific rules and regulations. It is important to understand these rules in case your business needs to stop, reverse, or cancel an ACH payment. Stopping an ACH payment ----------------------- It is generally possible to revoke authorization for an ACH payment. To do this, the payment sender can contact the recipient (the "biller") and request that they stop the transfer of automatic payments. The sender must also let their bank or credit union know by letter of their request to halt the payment.  If the biller continues to charge the sender's bank account despite the request to stop, it may still be possible to stop the transfer. To do this, the sender should inform their bank at least three business days prior to the ACH payment date and submit the request to stop payment in writing within **14 days**.  **Stopping an ACH payment may incur a fee**, depending on the bank's policies. It is also important to note that asking for a stop-payment with the sender's bank does not cancel their contract with the biller. The sender should still contact the biller to cancel the contract and request that they stop taking payments. Conditions for ACH payment reversal ----------------------------------- ![What-are-the-conditions-for-ach-payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/conditions-for-ach-payment-reversal-1676350643980-compressed.jpg) Conditions For ACH Payment Reversal The National Automated Clearing House Association has rules that outline the circumstances under which an ACH payment can be reversed. A customer's bank can reverse a payment from their account if: * The transfer amount was incorrect * There was an error in the account number of the sender or recipient * There was a duplicate transfer (in which case only the duplicate will be reversed) * The transfer date was incorrect If any of these errors occur, the bank must reverse the charges within five days and notify the affected account owners of the reversal. Only the payment sender can submit a request for a reversal, not the recipient (payee or biller). Rules for the reversal of an ACH payment ---------------------------------------- Some ACH reversal rules apply specifically to certain industries.  Many businesses use ACH transfers to pay bills, and there may be times when it is necessary to adjust or delay a payment. In these cases, it is important to contact the business or entity initiating the payment, whether that be the biller or the sender's bank. If the payment is set up to be made each month automatically, the sender should contact the biller to request any changes. If the payment is being made through the sender's bank's online billing system, the sender should contact their bank. If the sender needs to request a reversal through their bank, they should provide the name of the biller and the payment amount. It is best to make this request at least three business days prior to the scheduled payment date.  Some banks allow customers to alter payments over the phone or online, while others require a written request or the submission of a specific form. It is important to request any changes as soon as possible, even if the sender has already contacted the biller. The bank should notify both parties of any changes to the payment. Conclusion ---------- While it is generally easier to reverse an ACH payment than other types of payments, it is important to try to avoid this situation as much as possible. If individuals or businesses request too many ACH payment reversals, their bank may question their reliability in the payment process. Therefore, ACH payment reversals should be used sparingly, only in emergency situations. We hope that this article has provided you with a comprehensive understanding of ACH payments. If you want to learn much more about the world of finance, we encourage you to check out the [Salt blog](https://www.salt.pe/blog) for additional informative articles. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Format For GST Bill and GST Invoice - What Goes Inside? Author: Sudhanshu Choudhary Published: 2023-02-14 Category: Invoice Meta Title: Format For GST Bill and GST Invoice - What Goes Inside? Meta Description: In this post, we explore the fundamentals of GST bills, their format, types, and how to create them in compliance with government instructions. Tags: generate invoices , gst bill , gst invoice , format for gst bill , format for invoice, format for gst invoice, generate bills , bills for indian business, invoice for indian business, template for gst bill, template for gst invoice URL: https://salt.pe/blog/format-for-gst-bill ![GST-INVOICE-FORMAT](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/format-for-gst-bill-1-1676348537824-compressed.jpg) Format for GST Bill Introduction As a business registered for GST, it is imperative that you issue GST invoices or bills for every sale that you make. GST invoices, also known as GST bills, serve an important purpose as they provide a record of the transaction for both the seller and the buyer. They include information such as the details of the goods or services provided, the cost of the transaction, the payment due date, and the legally required tax information.  Having an accurate record of all your sales and the associated GST charges is important for compliance purposes and for keeping track of your business's financial situation. The format of a GST bill is also crucial. It must include all the necessary information required by law and should be easy to understand for both the seller and the buyer. The GST bill should list out the items that are being sold, the cost of the items, and the payment due date. Additionally, it should include the GST registration number of the seller, the GST rate that has been applied to the sale, and any GST credits or discounts that have been applied. Format of a GST Bill -------------------- When issuing a GST invoice, it is important to use a format that is compliant with the legal requirements and also presents a professional impression to the customer. The invoice serves as a record of the transaction, and it's essential that it includes all the necessary information for both the seller and buyer, especially for compliance purposes. The GST invoice should include the [following information:](https://cleartax.in/s/gst-invoice-details) invoice number and date, customer's name and contact information, GST registration number (if applicable), HSN or SAC code, place of supply, details of the items being sold (description, quantity, unit, total value), taxable value and any discounts, GST rate and amount, whether GST is payable on a reverse charge basis, and the signature of the supplier.  Having a consistent and clear format for your GST invoice will make it easy for your customers to understand and for your business to keep accurate records. In the case of the buyer being not registered for GST and the purchase being valued at less than 50,000 INR, the invoice format can be slightly different. In this scenario, it must include the name and address of the recipient, delivery address, state name, and code.  While these details may be less crucial for tax compliance, it's still important to have this information for your own records and for ease of communication with your customers. It is also worth mentioning that a GST invoice needs to have all the necessary information for the customer to manage input tax credit (ITC). This means that a GST invoice must have all the details of GST Registration number, Taxable value, GST rate and amount, whether GST is payable on a reverse charge basis, and supplier's signature.  Also, if your invoice is missing any of this information, it will be deemed as non-compliant, and your customer may face difficulty in claiming the input tax credit. How to create a GST Bill? ------------------------- Creating a GST bill involves several steps: * Start by filling in your company and contact information, including the date and invoice number. This makes it easy for the client to identify the invoice and match it with their own records. * Next, provide a detailed description of the billable work and the agreed rates. This could include project or hourly rates, as per the agreement. * Once the details of the billable work have been outlined, add the tax information and calculate the total amount due. Be sure to double-check the calculations to ensure accuracy. * Finally, state the payment terms clearly, including when payment is expected, to avoid any confusion. Types of GST bills  ------------------- ![Types-Of-GST-Invoice](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/types-gst-bill-1-1676348641739-compressed.jpg) Types of GST Bill As a business owner, it's important to be familiar with the different types of GST bills that may be used. The most common include: ### Tax invoice:  Tax Invoice is a properly formatted GST invoice, which is legally required for GST-registered businesses. It allows GST-registered buyers to manage their input tax credit (ITC). ### E-invoice:  E-invoices are issued on the GST Network and are electronically checked to ensure they are accurate and legally issued. ### Proforma invoice:  Some businesses issue a proforma invoice before a sale has been agreed upon. It's also known as a quote or estimated bill and contains details of the expected sale price and agreement if the buyer chooses to proceed. ### Bill of supply:  A bill of supply doesn't include GST tax information and can only be used in GST-exempt transactions, where no GST can be charged or collected. ### Commercial invoice:  A commercial invoice is used when exporting goods. It includes customs information to ensure the shipment is properly declared. ### Debit and credit note:  If there is a need to adjust the amount charged on a GST invoice that has already been issued, a debit or credit note can be used. A debit note is issued when the cost of a purchase needs to be increased, while credit notes can be issued if the final amount is lower than initially anticipated. Conclusion ---------- As a GST-registered business, it is your obligation to issue GST-compliant invoices every time you make a sale. Not doing so could result in non-compliance and penalties. Hence, it is important to have an organised system in place for issuing GST invoices, to ensure that all transactions are recorded correctly and that all required information is captured on the invoice. Not only is it a legal requirement, but it also helps in maintaining proper records, generating accurate financial statements, and assisting you in staying on top of your GST compliance. Now that you know about GST bills, here are the [best invoice generator tools](https://www.salt.pe/blog/invoice-generator-tools-for-freelancers) you can use. We hope this article has provided you with enough knowledge about GST bills. To learn more about the world of finance, check out the [Salt blog](https://www.salt.pe/blog). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Should You Generate A Bill As A Freelancer - Client Payments Author: Ankit Parasher Published: 2023-02-11 Meta Title: Why Should You Generate A Bill As A Freelancer - Client Payments Meta Description: Why should you generate a bill as a freelancer? Freelancing services require an invoice to be raised to maintain a transparent monetary relationship with the client. Tags: freelancing, freelancer tools , generating invoices online, freelancing services, generate a bill, bills as a freelancer, generate invoices URL: https://salt.pe/blog/generate-invoice-as-a-freelancer ![Invoice-As-A-Freelancer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-generate-a-bill-as-a-freelancer-1-1676123156252-compressed.jpg) Generate Invoice As A Freelancer Are you a freelancer who is starting to give out professional services globally? If yes, then you will need to send out a bill to the clients whenever you finish a project. An invoice helps in maintaining transparency between a client and a freelancer in terms of the money involved and the services provided. But how is a freelancer supposed to send an invoice? What is the format you need to follow?  It’s actually quite simple to generate an invoice in the name of a client. First of all, as a freelancer you need to get a template for the invoice you will be using. It should contain all relevant details of yours, preferably on the top. In addition, there are several simple steps needed to be followed to generate a bill as a freelancer.  Without further ado, let’s get into how you are supposed to generate a bill as a freelancer. Generate A Bill As A Freelancer: Importance Of An Invoice --------------------------------------------------------- Whenever a project is initiated between the client and you - the freelancer, an invoice should be generated for the services as soon as the contract is agreed upon. It is important that you get the invoice signed by the client so that you don’t have to get into a dispute with them when you send it to them upon the completion of the project for payment. You should email the invoice to the clients for their approval before starting on the project to get confirmation from their side regarding your costing. How To Generate A Bill As A Freelancer -------------------------------------- ![Invoice-As-A-Freelancer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/generating-bill-as-a-freelancer-1-1676123292023-compressed.jpg) Billing Template For A Freelancer As a freelancer, you’ll have to follow a certain format, one that is necessary for generating an invoice. To generate an invoice (or a bill) as a freelancer, you need to be sure of the services that the clients have requested, and clarify if there are any taxes to be paid over these services. You also need to follow a generally standard format on this invoice. Let’s take a closer look at this format you need to follow for generating the invoice. ### Title To generate a bill as a freelancer that would work as a legally binding document, it needs to have an appropriate title. You should note Invoice or Tax Invoice on the top as the header. ### Business Details To generate a bill as a freelancer, the next step is to get the name and the logo of the company or the freelancer printed on the invoice. It’s ideal that you use one corner of the page to print the name, logo and other business enquiry details related to you. This should be done below and immediately next to the title of the page. These details let anyone reading the invoice understand who has raised it. ### Contact Details Now that the person reading the invoice knows what it is and who has raised it, they should also have a way to connect with you. So, below the name and logo you need to enter your contact details. It should contain the address, email and the contact number related to your freelancing services. If there is any tax identification associated with your freelancing services, it needs to be entered here as well. ### Client’s Information Now, you need to address the invoice to someone. So, you can use the corner immediately next to your own details or enter the client’s information below your own. It is up to you to create the template. These details should include the name of the client, their contact details and the tax identification number, if any. ### Invoice Date and Number You should then enter the date on which the invoice is raised, as it is a critical element for your payment. Freelancers usually make the contract for the payment in terms of when the invoice is generated. If the contract mentions that the payment has to be made in a certain time post the generation of invoice, then the invoice date becomes very important.  Similarly, the invoice number portrays the serial number of the bill and is useful as a reference to look for the invoice amongst a stack. Freelancers can include the month and date of the invoice in the invoice number to make referencing it easier. ### List of Services with the Rate and Tax After filling all the above details, you can enter all the services you’re providing to the client, their general rate, and the tax, if any is applicable. For all the different types of services, there can be different listings in this section. For example, as a content writer, you can list all the topics you have written for the client, their word count and the rate at which each article is going to cost the client. At the bottom, mention the total payment due in number and in words. ### Signature This is the last step: you need to put your stamp and digital signature on the invoice for making it official. It will help prove that it is a legally binding document. Here are [the best tools to use to generate invoices as a freelancer.](https://www.salt.pe/blog/invoice-generator-tools-for-freelancers)​ Conclusion ---------- Hope this post gives you a clear understanding of how to generate a bill as a freelancer. If you’re still wondering why you need to generate a bill as a freelancer, do remind yourself that an invoice plays a crucial role for the freelancers to not get exploited by the clients.   As a service provider, you can use neobanks like [Salt](https://www.salt.pe/) for faster transactions and lower transaction costs in receiving payments for your freelancing services. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 5 Tools Every Marketing Consultant Must Have Author: Udita Pal Published: 2023-02-11 Tags: banking for freelancers, marketing consultant, marketer, freelance marketers, marketing consultants , freelance marketing URL: https://salt.pe/blog/marketing-tools-for-consultants Marketing consultants are accustomed to having a busy schedule. In reality, you probably discover that your typical day consists of back-to-back meetings, juggling decisions based on both creativity and data, managing other staff, and becoming knee-deep in analytics and reporting. Simply put, since marketing consultants have a lot to do, every product that makes their jobs easier is a blessing. Here is a summary of the top 5 tools that every marketing consultant requires to automate procedures, streamline tasks, and increase productivity. ![tools-for-marketing-consultants-](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/top-5-tools-every-marketing-consultant-must-have-1676282253916-compressed.jpg) Marketo - For Lead Generation  ------------------------------ [Marketo](https://business.adobe.com/products/marketo/adobe-marketo.html) is a comprehensive marketing dashboard that gives users and marketers everything they require for lead generation, lead management, marketing automation, and even account-based marketing (ABM) for B2C and B2B companies. Adobe Marketo helps fill your pipeline with high-quality leads. Marketo Engage delivers the ability to listen to customer behaviors and respond in real time, regardless of page views, search terms, and company size.   With the help of advanced lead scoring, you can create unique scoring models that are updated after each interaction and automatically start sales activity when the timing is right. It is the lead generation that simultaneously engages and nurtures. Available features include lead scoring, analytics and ROI tracking, landing pages and forms, segmentation, and more. Marketo focuses on data and analytics. User-friendliness: Marketo isn't always the most straightforward tool, despite many users rating it as "best-in-class software." Many users assert that adequate training is necessary to use the application effectively. Qualtrics - For Market Research  Finding the correct survey participants takes time, and a survey that no one completes is pretty much pointless. You can have access to tens of thousands of pre-screened, qualified opt-in survey respondents, both B2B and B2C, when you use  [Qualtrics](https://www.qualtrics.com/free-account/) panel team One can acquire a representative sample and choose any target audience with the aid of Qualtrics. Obtain help for your best-in-class study at every stage, from survey launch to results reporting, to increase the accuracy of your tracking study sampling, which is 47% more consistent than conventional sample approaches. When compared to other survey tools, Qualtrics' questionnaire creation features are significantly more sophisticated, and the reporting capabilities let you create complex criteria to filter and modify the data however you choose. Additionally, Qualtrics provides top-notch customer support. "Their team manages the responders' incentives for us (where necessary) and responds quickly to particular requests, Apollo.io - For Client Outreach  -------------------------------- One million salespeople are assisted by Apollo's cutting-edge algorithms and exclusive data collection techniques in enriching and analyzing prospect data to boost the quality of interactions and opportunities. [Apollo](https://www.apollo.io/) is a top platform for sales engagement and data analytics that has earned the trust of 20,000 paying clients, ranging from startups with explosive growth to some of the biggest international corporations. Users get the most coverage while maintaining data accuracy because of its community-based method of crowdsourcing data. These are some benefits of this integration: * Push contacts from Apollo directly into Outreach using unified data. * Deploy Apollo contacts into your outreach sequences for simplicity of execution. * Streamlined Workflow: When coordinating between Outreach and Apollo, eliminate procedures that are not necessary. * Pushing contacts from Apollo to Outreach will immediately sync those contacts with the same fields. Notion - For Project Management  [Notion](https://www.notion.so/) is an improved online workplace that enables you to write, plan, organize, and manage your work. It improves productivity and streamlines processes. Notion is not a collection of many programs, unlike work suites like Microsoft 365 and G Suite. Instead, it consolidates all of your tasks, wikis, and notes onto a single platform. Notion is perfect for authors, graphic designers, and other creatives as well as for marketers, managers, and other professionals due to its integration of task management with wikis and notes. This list of Notion Alternatives can be useful if you're searching for a more all-inclusive application that can also handle administrative tasks like resource planning, time management, and client administration. Notion is largely used for task management, collaboration, and the upkeep of an internal database. The majority of project managers use it for: * Planned project execution * Creating a roadmap * Task creation and management * Build a database * Creating and preserving crucial documents, manuals, etc. ![tools-for-freelance-marketing-consultants](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/top-5-tools-every-marketing-consultant-must-have-2-1676282311433-compressed.jpg) Tools for marketing consultants SALT - International Payments ----------------------------- Receiving payments from abroad is a challenging process to complete. There are numerous ways to guarantee a safe money transfer across borders. For international banking, Salt offers genuinely borderless solutions. Companies in India are using SALT to quickly and cheaply collect payments from customers all over the world in a variety of currencies. With [SALT](https://www.salt.pe/blog/the-cross-border-payments-landscape-in-india) fintech, you may send money anywhere in the world within 24 hours for just 1.75% of the entire transaction value. SALT has no minimum transaction requirement, regardless of whether you are a startup, SME, consultant, or freelancer. When utilizing SALT, there are no extra fees, yearly subscription costs, or markup rates. There are no fees associated with withdrawals, and your account won't be suspended. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is It Okay To Generate Invoice Without Company Registration? Author: Udita Pal Published: 2023-02-10 Meta Title: Is It Okay To Generate Invoice Without Company Registration? Meta Description: Freelancers and sole proprietors of small businesses can send invoices to clients without company registration as they do not sell highly taxable services. Tags: indian startups, banking for freelancers, startups, small business, SMEs, Freelancers, invoice, generating invoice, generating invoices online URL: https://salt.pe/blog/Generate-Invoice-Without-Company-Registration ![Company-registration](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/is-it-okay-to-generate-invoice-without-company-registration-1-1676029249863-compressed.jpg) Is It Okay To Generate Invoice Without Company Registration? Are you a [freelancer](https://salt.pe/blog/accept-international-payments-as-a-freelancer-working-with-overseas-clients-cl6vw45ad40831mn3me2ftiqu) or sole proprietor of a small business? Did you know that as a freelancer or a sole proprietor, you can send invoices to different parties even without registering your business with the government? While it’s possible, there are still some technicalities that you will need to look into before generating invoices without a company registration.  Registering a company is a mandatory procedure for generating invoices to send to your clients. So how do you go around this procedure and start generating invoices without the company registration?  Importance of Company Registration ---------------------------------- As the owner of a registered small business, you get tax benefits and other advantages because of the company registration. Pluss, only a registered business can issue GST invoice in India and that too only for the registered goods and services under the government. Company registration is necessary for generating invoices over taxable goods and services, which are found to be much more credible by the recipients. However, for freelancers and the sole proprietors of small businesses, it is not a necessity to register under the government. Most of the time, small businesses provide services directly to the client, and the relationship between the business owners and the clients does not require a taxable invoice as such. This is why registering a business with the government at a later stage when it gets a credible amount of business done is a much wiser choice.  Also, freelancers are more of singular service providers and thus do not require to register unless they open startups or work in collaboration with some SMEs. Generating Invoice Without Company Registration ----------------------------------------------- ![](https://lh3.googleusercontent.com/8ZSjBujkU9GQpvFiHeEPGsYx_ATH8pYhYF5gfofRH4-k2dXOVGeXsCsutpDQZH2S1D5ZMD6zQEbP2U-5OZZu2XHlN7aVGUM3EUTzpszSbEKrtBoGEK3e7Kw31W8x29G5Nz5JideYBsIxy8oK0VeuS94) [Source](https://www.sana-commerce.com/blog/invoice-vs-receipt-what-is-the-difference/) / Generating Invoices online without company registration  Being a sole proprietor or a freelancer, you can send a formal invoice in the spirit of integrity and professionalism. This brings a feeling of trust within both parties and makes sure that the business terms are clear. There is an option of generating invoices online as well which makes the whole process easier and is preferred by the freelancers. You can use the available invoice templates while generating invoices online to make the invoice look more credible and professional.  ### Professional Header The first thing that you should consider while generating invoices online is to provide a professional header to it. This means that you should enter your own name as a freelancer or the business’s name if you are the sole proprietor. It should then contain a small logo of your business.  Next to the header, you will need to enter the contact information and other important details through which the client can get in touch. The header should be in bigger font size than the rest of the invoice.  ### Invoice Details Next, you should include the details of the invoice issuance. These include: * A serial number related to the service provided or the date it was provided on.  * The invoice should contain the date of generating invoices and the time by which the payment has to be cleared after the issuance of the invoice.  * The services provided should be clearly mentioned on the invoice. * The value for each service along with the total price should be included. * You should further consider writing the late payment fines, and other such procedures that are important for the clients to know. The invoice details should be properly sequenced so that the clients do not have any problem understanding it. Generating invoices online can help you out with professional templates.  Advantages of Company Registration ---------------------------------- Being a freelancer or sole proprietor of a small business, it’s important for you to learn how registering your business later on can be advantageous. Let’s take a look at some advantages you get with company registration under the government. ![Importance-of-Company-registration](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/importance-of-company-registration-1-1676029570374-compressed.jpg) Insert description ·         Company registration provides you the status of a legal entity, which means you can claim all the perks like tax benefits. What’s more, upon any kind of fraud by the clients, you can legally sue them and get compensation. ·         As you register the company, you begin a perpetual succession for the company which means that even if the management changes, the company will continue to exist the same as it was at the time of registration. ·        Registered small businesses can participate in fundraisers, which will help them expand and grow in terms of revenue and services. Conclusion ---------- We hope this post gives you an idea regarding generating invoices online without company registration.  ​[Here's a simple way to generate invoices using excel.](https://www.salt.pe/blog/how-to-create-an-invoice-on-excel)​ Thinking of expanding into a global business? Neobanks like [Salt](https://www.salt.pe/) can help you with that! [Salt](https://www.salt.pe/) is dedicated to making global banking more and more comfortable for small businesses and freelancers! Give our website a visit today to find out more about us! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Make An ACH Transaction - International Money Transfer Author: Udita Pal Published: 2023-02-06 Meta Title: How To Make An ACH Transaction - International Money Transfer Meta Description: Transactions such as direct deposits and online bill payments are all accounted for via ACH transfers. Here's a rundown of what they are and how to perform them. Tags: international money transfer, Wire transaction, cross border transaction, ACH trasnaction , ACH or WIRE transaction , ACH Transfer URL: https://salt.pe/blog/how-to-make-ach-transaction ![ACH-Transaction](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-make-an-ach-transaction-1675680458100-compressed.jpg) How to make an ACH transaction When did you first start having your salary transferred directly into your account? Have you ever used your bank to make automated payments, such as your mortgage or utility bills, or to pay a vendor without having to write a cheque physically? If you have, you probably know what ACH is all about. Automatic Clearing House (ACH) transfers expedite and protect the transmission of funds between financial institutions and their customers in the US. The ACH network is a US-specific network of over 10,000 financial organisations. Contents * [What is an ACH Transaction?](#what-is-an-ach-transaction) * [How does ACH Transaction work?](#how-does-ach-transaction-work) * [How to make an ACH Transaction](#how-to-make-an-ach-transaction) * [Step 1: Gather the necessary information.](#step-1-gather-the-necessary-information)  * [Step 2: Contact your bank.](#step-2-contact-your-bank)  * [Step 3: Provide the authorisation.](#step-3-provide-the-authorisation)  * [Step 4: Wait for the transaction to process.](#step-4-wait-for-the-transaction-to-process)  * [Step 5: Confirm the transaction.](#step-5-confirm-the-transaction)  * [Conclusion](#conclusion) Although ACH transfers have gained in popularity, with [over 29 billion transactions and over $72 trillion in payments having been expected to be sent in 2021](https://www.nacha.org/news/ach-network-sees-291-billion-payments-2021-led-major-gains-b2b-and-same-day-ach), many companies and consumers still lack an understanding of the intricate workings of ACH. Through ACH transfers, money is sent instantly and electronically between bank accounts. There is no need for either plastic or cash since money may be transferred directly between banks. This tutorial will walk you through the fundamentals of setting up an ACH transfer, from defining an ACH transfer to outlining what an ACH transaction looks like and how it functions. What is an ACH Transaction? --------------------------- An Automated Clearing House (ACH) transfer is a standard method of transferring funds electronically. Direct deposits and online bill payments are only two examples of ACH transactions in your financial life.  ACH payments or transfers are various options for moving money between financial institutions.  Direct deposit and automated bill payment are shared ACH transfer uses among the most common electronic bank transactions. **ACH transactions** are further used in the US for business-to-business (B2B) transactions, direct debit transactions, and M&T (mail and telephone) orders (MOTO). The processing time for an ACH transfer is usually three to four business days. It's also more secure than writing cheques by hand, which increases the risk of identity theft and fraud if the recipient loses the check or someone else gets their hands on it. How does ACH Transaction work? ------------------------------ Financial institutions in the US use the ACH transaction network to process various transactions, including direct deposit payments, online bill payments, and debit and credit card transactions. 1\.   A financial institution or other authorised entity must create a batch of transactions to process an ACH transaction. This batch is typically created using specialised software and may include multiple transactions of the same type, such as a batch of payroll direct deposit payments. 2\.   Once the batch of transactions has been created, it is sent to the ACH operator, a central bank, or another financial institution. The ACH operator then processes the transactions and sends them to the appropriate financial institutions for settlement. 3\.   During the processing stage, the ACH operator checks each transaction to ensure that it is valid and that the funds are available. If there are any errors or issues with the transactions, they will be rejected and returned to the originating financial institution. 4\.   Once the transactions have been processed, the funds are transferred between the participating financial institutions. This typically happens within one to two business days, depending on the type of transaction and the financial institutions involved. Overall, ACH transactions are a convenient and efficient way to process electronic payments. They are secure, cost-effective, and can process various types of transactions. Additionally, ACH transactions can be initiated by the payer or the payee and can be set up to occur on a one-time or recurring basis. How to make an ACH Transaction ------------------------------ ![ACH-Transaction-Details](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-make-an-ach-transaction-details-1675680795958-compressed.jpg) Information required to make ACH Transaction Here's how to make an ACH transaction: ### Step 1: Gather the necessary information.  To make an ACH transaction, you'll need the following information: * The name and routing number of the bank where the money is being transferred from (the "originating" bank) * The name and the account number associated with the account from which the money is being transferred * The name and routing a number of the bank where the money is being transferred (the "beneficiary" bank) * The name and account number associated with the account to which the money is being transferred to ### Step 2: Contact your bank.  You'll need to contact your bank to initiate an ACH transaction and provide them with the above information. Some banks may allow you to initiate an ACH transaction through their online banking platform, while others may require you to visit a branch or talk with one of their representatives over the phone. ### Step 3: Provide the authorisation.  Your bank will need your authorisation to make the ACH transaction. This can typically be done by signing a form or providing written authorisation via email or fax. ### Step 4: Wait for the transaction to process.  ACH transactions typically take one to two business days to process. During this time, the money will be transferred from the originating bank to the beneficiary bank. ### Step 5: Confirm the transaction.  Once the transaction has been processed, it's a good idea to confirm that the money has been transferred to the correct account. You can check your bank statement or log into your online banking account to view your account activity. Making an ACH transaction is a simple and convenient way to transfer money electronically between bank accounts. Following the steps outlined above, you can quickly and easily initiate an ACH transaction with your bank. Another way to make international money transfer is through WIRE transfer. Here's a blog on - [how does WIRE transfer works](https://www.salt.pe/blog/what-is-a-wire-transfer). ​ Conclusion ---------- In conclusion, making an ACH transaction is a simple and convenient way to process electronic payments in the US. A financial institution or other authorised entity must create a batch of transactions to make an ACH transaction. This batch is then sent to the ACH operator, which processes the transactions and sends them to the appropriate financial institutions for settlement. Once the transactions have been processed, the funds are transferred between the participating financial institutions. ACH transactions are secure, cost-effective, and can be used to process various transactions. Want to enjoy international banking facilities from the comfort of your home? Visit [our website](https://www.salt.pe/) today to find out how! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is SORT Code? - Bank Sort Codes Explained Author: Ankit Parasher Published: 2023-02-01 Meta Description: To give you a deeper comprehension of the activities about your finances in the UK and Ireland, we will discuss ‘What is a SORT code in banking?’ and how it works. Tags: bank sort code , what is a sort code, sort code explained, what is a sort code in banking, what is a sort code in a card, international bank account , sort code in england URL: https://salt.pe/blog/sort-code-explained The very first thing to talk about is what is a sort code on a card. When opening a bank account in the United Kingdom or Ireland, you will be provided with more than simply a number. In addition, you will be given a bank SORT code, which is required for certain types of financial transactions in the United Kingdom. You must provide your SORT code to receive funds when you provide your bank account information. These SORT codes are used by everyone, but are you familiar with their inner workings? ![Bank-sort-code](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-a-sort-code-1675234029809-compressed.jpg) Bank SORT Code in England and Ireland What exactly are SORT codes, and how do you find yours? Let's investigate the solutions. To he lp you better comprehend your financial dealings, we will examine what SORT codes are, why you need them, and how you may locate your own. What is a SORT code in banking? ------------------------------- ![Bank-sort-code](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-a-sort-code-2-1675234095163-compressed.jpg) SORT Code used in UK and Ireland So, what is a SORT code in banking? A SORT code is a six-digit number used by banks and other financial institutions in the United Kingdom and Ireland. It is to designate the department or branch at which a customer maintains an account when transferring money inside a country's borders, whether by direct debit, bank transfer, or any other method. In the United Kingdom, a SORT code may be found at the bottom of a check, in a bank's web portal, on a bank statement, or in other official correspondences. If you or your company wish to receive money from another source, you'll need to provide them with your SORT code and account number. Although these numbers are included in SWIFT, IBAN, and other international banking IDs, SORT codes may also be used to identify British banks and financial institutions for international currency conversion. A SORT code is unnecessary in most cases if you specify one of these integers. A SORT code and account number are required for most international direct bank transfers from a UK or Irish bank. SORT codes are made up of six digits, written as three sets of two. The first digit or two represent the financial institution, while the remaining numbers designate the particular office or department where a customer maintains an account. History of the SORT Code ------------------------ In the late 20th century, when the popularity of checks was at an all-time high, banks began using SORT codes. Customers made purchases all day long by writing cheques and handing them to store clerks. If the cheques were written to a business, the owner or manager of that store would have to deposit them. This was accomplished by having checks brought to the bank for processing, which necessitated the development of systems to verify the checks' legitimacy. The account holder's branch of the bank from which the checks were written was denoted by the SORT code, which made it possible for all parties engaged in the wire procedure to trace the origin and destination of the funds. Working of a SORT Code ---------------------- Most online and mobile banking platforms, as well as paper statements, will display your bank account number. The account number for your bank card may usually be found either on the front or back of the card. This is different from the 16-digit number on the card, typically located in the card's centre. A SORT code is a series of four digits that, when read as a whole, denotes a separate piece of data necessary for completing a financial transaction. The first two numbers indicate the financial institution or organisation that issued the cheque. We may zero in on a particular tree branch with the remaining numbers. Although SORT codes and account numbers are often used together, they serve distinct purposes. The account number is the unique identifier for a person's checking or savings account. A SORT code ensures the proper transfer of funds from one bank account to another, regardless of the nature of the transaction. How to find a Bank SORT code? ----------------------------- If you are wondering how to find a bank SORT code, it should be easy if you have a bank account. It appears on your bank statement, your checks, and often on any communication from your bank. You may get your SORT code from your online bank account quickly, easily, and securely. Copy the number shown on the screen and your account number from your online account, and paste it when required. There will be no room for error in recording the figures if you do it this way. SORT codes Vs. International bank account numbers ------------------------------------------------- SORT codes are used to identify a particular bank in the United Kingdom. Neither the SORT code nor the SWIFT code can tell authorities anything more than the general account number associated with a transaction. In addition to a domestic account number, many financial institutions call for an IBAN (IBAN). International Bank Account Numbers (IBANs) may be used to locate individual bank accounts. An International Bank Account Number (IBAN), which may be up to 34 characters in length, may be required for some international wire transactions. ### Conclusion We do hope this post has answered your questions, “What is a SORT code in banking?” Local transfers in the UK and Ireland need the SORT code and account number. Many nations have abandoned their domestic systems in favour of the international standard, and the UK is likely to follow suit. It is usually safe to share such information with individuals you know or businesses you intend to make payments. However, disclosing such information to people you do not know or companies you do not want to make or receive payments from is not a good idea. Want to participate in global business with the convenience of local bank accounts? Give [our website](https://salt.pe/) a visit today to find out how! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Spot Exchange Rate? - Foreign Exchange Spot [Explained] Author: Ankit Parasher Published: 2023-01-30 Meta Title: What Is Spot Exchange Rate? Meta Description: At any given moment, the spot exchange rate of a currency is the value at which it will be traded off for another currency in an open market. Tags: startups, international money transfer, SMEs, spot exchange rate , spot exchange , spot market, Spot trading , Foreign exchange spot, forward time URL: https://salt.pe/blog/spot-exchange-rate ![Spot-exchange-rate-explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-spot-exchange-rate-1675074790719-compressed.jpg) Spot exchange rate - foreign exchange spot Every business has to face the need of exchanging one currency for another if they accept international money transfers. A lot of times, the exchange does not happen via the conventional banking system. If you own startups or SMEs, you will have to travel to multiple places abroad for business purposes. At times, you might be stuck at a place and need to [exchange your currency for another](https://www.salt.pe/blog/how-are-international-exchange-rates-determined) one through the open market.  Now, this very exchange is called spot exchange, and the rate you get for your own currency is the spot exchange rate. So say if you get 1 euro for $1.5 at a given time, then the spot exchange rate of 1 Euros is $1.5 at the moment. The changes in this rate depend totally upon some open market factors. If you own a business or manage startups or SMEs, spot exchange rate is a must know topic for you. So, let’s dive into the topic and understand what it means for the international market. What Is Spot Exchange Rate? --------------------------- The trading market for international money transfers runs on forward rates and spot exchange rates. In general, the spot exchange rates are governed by the international corporations, hedge funds, governments and other entities with lump sum amounts. Spot exchange rate is therefore the currency rate at which you can exchange your currency for another one in an open market. Here, the open market means any entity that is agreeing to exchange your currency for the native currency. The currency exchange market is a relatively large market since trillions of dollars worth of money gets exchanged every day. Some of the currencies that hold a superiority in the spot exchange market are the US dollar, Canadian dollar, Japanese yen, and euros. Most of the foreign currency exchange is done over short term investments, long term investments, or the import-export financings. ![Spot-exchange-rate-defined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-spot-exchange-rate-2-1675075060910-compressed.jpg) Spot Exchange Rate How Does It Work? ----------------- Whenever a product is traded off on spot for a currency non native to the one it is originally sold in, a spot exchange sequence is triggered. The exchange of a domestic currency with the foreign currency facilitates the trading of the goods within different regions. So how does spot exchange work and what decides the spot exchange rate?  Well, usually the spot exchange is regulated by the global foreign exchange market. This means that if you have a product or hold your native currency, you can exchange it with someone else having the currency you require. The spot exchange rate is however decided by the forex markets where the rates are usually floated under the influence of MNCs and even the governments. Usually, spot exchange is settled over cash delivery where both the parties agree at a rate and the date of transaction. The overall settlement takes place in less than two days. Spot Exchange Rate vs. Forward Rate ----------------------------------- When you learn about a new concept, you also have to learn about the terms that lie in the same domain. Forward rate is also a financial term that not a lot of people understand. Similar to the spot exchange rate, forward rate is the rate at which a commodity or currency is exchanged for another one. Entities often use forward rates for exchange transactions. But the difference between the spot exchange rate and the forward rate is the yield over the asset.  In the spot exchange market, you will be liable to exchange the commodity or the currency on spot for the value which is decided for the transaction. On the other hand, if you take the example of a bond market, the prices are decided after taking into consideration the percentage yield over the bonds after a certain time. This means that the forward rates are the settlement costs that are to be cleared on a future date. In a spot exchange market, the spot exchange rate is the effective cost of a currency, stock or any commodity that is to be settled on the same day.  Spot Market Trading ------------------- ![](https://lh3.googleusercontent.com/Fk-MBlDRoLE1BdVJHFgRvtE9aFVMnfmB8QItMxhg2tlbgUSu2BCEL3fNAwRJkXvmY07F0Jy-hi9Fqsy_AtFjzu7ynCmE7R_bRqhiSYGQGOy3gN1olmQI4c4IEe9zriDNl9pxltiTsUQ51Vr52XCPW0HumDHkafhqj9b6_B4i71aqti0Vyw1YkjzBZTKlPQ) [Source](https://corporatefinanceinstitute.com/resources/economics/spot-exchange-rate/) / Spot Trading Market  Now that you have the knowledge of the basic concepts, you should also get to know how the spot exchange rates are decided. Usually, a spot trading market influences the spot exchange rate. The methods through which spot market trading works are: ### ·         Direct Execution:  It is the most basic form of spot exchange where two parties come together and decide a rate for exchange on their own. There is no influence of a third party and the exchange takes place mostly through telecommunication. ### **·         Electronic Broking Systems:**  There are efficient broking systems like the Reuters Matching 3000, which match the orders from across the world and provide efficient spot exchange rates to the customers. ### ·         Electronic Trading System:  A lot of times investors tend to trade using a multi bank trading system. So, the banks and other financial institutions have facilitated computer programs that help the traders. Such a system is called an electronic trading system where the live market rates are floated for the traders. ### ·         Inter-Dealer Voice Broker:  This is the last kind of spot market trading method. This kind of spot trading is done over the telephone or any telecommunication device. The broker works to settle one price for the parties to agree on and facilitates the trade. Conclusion ---------- We do hope this article clarifies the concept of spot exchange rates to you, when international money transfers are concerned. To facilitate electronic trading, neobanks like [Salt](https://www.salt.pe/) have now set up faster transaction systems which incur lesser costs as well. Want to read up more on the world of finance? The [Salt blog](https://www.salt.pe/blog) is just the place for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## SWIFT vs Purpose Code - International Money Transfer Author: Ankit Parasher Published: 2023-01-27 Meta Title: SWIFT vs Purpose Code - International Money Transfer Tags: purpose code, purpose code for payments, SWIFT interntaional, purpose code rbi, rbi purpose code list, purpose code vs swift message, swift message system URL: https://salt.pe/blog/swift-message-vs-purpose-code ![Swift-message-vs-purpose-code](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-purpose-code-1674821137730-compressed.png) SWIFT Message Vs Purpose Code What is the Swift message system? The "Society for Worldwide Interbank Financial Telecommunication" is known as SWIFT. Over 8,300 banks, securities firms, and businesses in over 208 countries are part of the SWIFT network. The SWIFT code is a [Business Identification Code (BIC)](https://www.salt.pe/blog/swift-code-explained) that SWIFT assigns to banks as a simple means of making international payments.  Prior to [SWIFT](https://www.salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1), all banking communications were conducted by phone, telex, mail, or courier. With the advent of SWIFT, messages between banks may now include messages and conditions in addition to the fundamental instructions for transferring payments. Each SWIFT message is needed for wire transfers. The SWIFT code is used for all international transactions carried out by this bank. The code's function is to serve as a universal digital language for easy international money transactions. The idea makes for a simple, quick process. To get the code and join the network, a bank must opt into [SWIFT payment](https://www.salt.pe/blog/how-does-swift-payment-works). This enormous system is electronic and sends and receives codes across banks swiftly using a cloud platform. How does the SWIFT message system work for businesses? ------------------------------------------------------ With the help of SWIFT, businesses, financial institutions, and banks may communicate with one another and cooperate with banks around the world and in their neighbourhood.  As a result of the standardization of such messaging, both banks and their clients can benefit from consistent rules and procedures across numerous banks.  SWIFT just helps banks communicate with one another; it is not a bank and neither holds money nor keeps accounts.  With the help of SWIFT, banks now have access to a centralized database that makes it possible for Bank A to securely communicate with Bank B without having to rely on human intermediaries or expose themselves to the risks associated with using email, phone, or fax. The SWIFT communication network is very dependable and secure. There are different categories and formats of SWIFT messages for different businesses.  Format :  --------- ![Swift-code-format](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-swift-or-bic-code-1674821085209-compressed.png) Categories  ----------- ![](https://lh3.googleusercontent.com/EaEUUWLim8NDbFdausOu9WV5RhqYtYU3_tjymJej_bzXvSa1CIVZqGiRC5bWuh24jpYH4lVXyuGcWVq_R-Ip04-ByZ3PNsvjH6ORwa-iTyeKCwqWDZAr83P5bHa1rNI9PGinr8EP5ofjfzrET4MJbCryHNcIorguRKRaoQUL-gDrWpEOe3xX4rjKBydzaQ) What is a purpose code? ----------------------- The Reserve Bank of India (RBI) created the purpose code to categorize each transaction according to its nature as a foreign currency transaction. To put it another way, the [Purpose Code](https://www.salt.pe/blog/purpose-code-for-international-money-transfer) aids regulators in determining the precise nature of a cross-border transaction.  Therefore, in India, it is required for all cross-border payments. The two types of purpose codes are as follows: 1\. Payments received by Indians in foreign currency for receipt purposes or the purpose code for inward remittance.  2\. Payments sent by Indians or outward remittances in foreign currency.  How do businesses use purpose codes? --------------------------------------- The purpose code aids regulators in figuring out the specifics of a cross-border transaction. When executing a transfer, you must provide the code P0301 if the goal of your international transaction is, for instance, "purchases for travel." Every remittance must include one of the purpose codes that the RBI has established in order to describe the nature of the transaction and the unique purpose for which the transfer is being made. The RBI can categorize transfers thanks to these codes. Every remittance must include one of the purpose codes that the RBI has established in order to describe the nature of the transaction and the unique purpose for which the transfer is being made.  Remittances can be classified by the RBI using these codes. Given that India is the country that receives the most inward remittances worldwide, it makes sense that purpose codes are crucial there.  A list of some purpose codes  -------------------------------- ![](https://lh6.googleusercontent.com/lRKrJWgZM-hmgwULao9LDT3Epgw_jnRpYNz4W7iiiNfZZOo3gB4WOl9oPlVgVxyOpXCKNUKJgxXhAVb28G_XzH_Pv-amUYXNKlwdECFtpEsyTa32gDI-k-Ilu4OAboS9Tq0lYJGmE6qirgna7c9hwbYDdx5s9LeO-AKhsWtpcwWSO3sFdCniieJWn1z8cQ) ### SALT in International Payments  India and many other nations require purpose codes for cross-border payments since they make transactions easier and more convenient. SALT fintech allows you to transfer money internationally within 24 hours for a fee of just 1.75% of the entire transaction value. SALT has no minimum transaction requirement, regardless of whether you are a startup or a SME. When utilizing SALT, there are no extra fees, annual subscription costs, or markup costs. Everything is more affordable and efficient with SALT. --------- --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Being An Employer In The Recession: The Reality Check Author: Udita Pal Published: 2023-01-27 Meta Title: Being An Employer In The Recession: The Reality Check Meta Description: In this article, we look at the effects of recession on employers, including managing the flow of money and how to protect a company against recession. Tags: employers, recession layoffs, startup layoff, recession, employer , recession reality check , protection from recession , tips to survive recession, business survive in recession URL: https://salt.pe/blog/being-an-employer-during-the-recession ![Employers-during-recession](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/being-an-employer-in-the-recession-the-reality-check-1674822818136-compressed.jpg) Introduction The current economic recession is presenting a host of challenges and realities for employers across industries. As businesses struggle to adapt to changing market conditions and declining demand, many are faced with tough decisions about how to protect their companies from severe effects of recession.  In early 2022, the stock market saw a decline due to the Russian invasion of Ukraine, leading governments to implement anti-recession measures such as raising interest rates and decreasing liquidity in public and private equity markets.  As a result of these measures, the value of the US Dollar has increased compared to other major world currencies, including the Euro and the Pound. This has also caused limited partners to hold onto their money in safer investments, reducing liquidity for venture capitalists. Funding for Indian startups has seen a [significant drop](https://inc42.com/features/indian-startup-layoffs-tracker/), with the amount raised in November 2022 being 73% lower than the amount raised in November 2021. In this article, we will take a closer look at the effects of recession on employers. We will also explore ways for employers to manage their finances and protect their companies against the recession. Effects of recession on an employer ----------------------------------- The effects of recession on employers can be far-reaching and varied. One of the most obvious and immediate impacts is on the financial health of the company. As demand for goods and services decreases and sales decline, businesses may struggle to generate sufficient revenue to cover their expenses. This can lead to financial pressures such as reduced profits, cash flow problems, and even bankruptcy. The effects of recession can also impact an employer's ability to attract and retain top talent. As unemployment rates rise, companies may have a larger pool of candidates to choose from when hiring. However, they may also face increased competition for the best employees, who may have more options for employment. In addition, the recession can lead to changes in the way work is structured and performed. Employers may be forced to reduce their workforce through layoffs or furloughs, which can lead to a heavier workload for the remaining employees. They may also be required to implement cost-cutting measures such as reducing or eliminating benefits, cutting hours, or altering compensation. The effects of recession can bring significant challenges and changes for employers, who must navigate these difficulties while also trying to protect the long-term viability of their businesses. Managing the flow of money -------------------------- Managing the flow of money is a crucial concern for employers during a recession. As businesses face declining demand and revenue, it is important to carefully control expenses in order to preserve cash and maintain financial stability. There are many strategies that employers can use to manage the flow of money during a recession. One approach is to prioritise expenses and focus on those that are essential for the continued operation of the business. This may mean cutting non-essential expenses such as travel, entertainment, or advertising and redirecting those funds towards more pressing needs. Another strategy is to negotiate with vendors and suppliers to secure better terms or lower prices. This could include requesting longer payment terms, bulk discounts, or other concessions that can help to reduce costs. Employers may also need to consider alternative sources of funding, such as borrowing from a bank or seeking investments from outside parties. This can help to provide a financial cushion and ensure that the business has the resources it needs to weather the economic downturn. Overall, managing the flow of money during a recession requires a careful and strategic approach, with the aim of preserving cash and maintaining the financial stability of the company. How to protect the company against the effects of recession ----------------------------------------------------------- There are many steps that employers can take to protect their companies against the effects of recession. * One approach is to diversify the business into new markets by offering new services and products. This can help to reduce reliance on any one particular sector or customer base, which can be especially vulnerable during a recession. * Employers can also focus on improving efficiency and streamlining operations in order to reduce costs and improve profitability. This could include implementing new technologies, reorganising the workforce, or finding more cost-effective suppliers. * Another strategy is to build up a financial cushion in advance to the recession by saving a portion of profits or seeking out additional sources of funding. This can provide a buffer against economic downturns and help the company to weather any financial storms that may come its way. Overall, the key to protecting a company against the effects of recession is to be proactive and take a long-term view. This may require making difficult decisions and making adjustments to the way the business operates, but the goal is to emerge from the recession in a position of strength. Layoffs are a sad reality of recession, here's what the [employers can learn from the startup layoffs.](https://www.salt.pe/blog/startup-layoffs)​ ### Conclusion In conclusion, being an employer during a recession can be a challenging and stressful experience, as businesses grapple with declining demand, financial pressures, and the need to adapt to changing market conditions. The effects of recession can be far-reaching, impacting an employer's financial stability, ability to attract and retain top talent, and overall operation of the business. Faced with these challenges, it is important for employers to be proactive and take steps to protect their companies against the impacts of the recession. This may require diversifying the business, streamlining operations, building up a financial cushion, and making difficult decisions about hiring and layoffs. Ultimately, the key to navigating the effects of recession as an employer is to be adaptable and strategic, with a focus on preserving the long-term viability of the business. By taking a reality check and being prepared for the challenges ahead, employers can position themselves to weather the economic storm and emerge from it in a position of strength. To read more about the world of finance, check out the [Salt blog](https://www.salt.pe/blog). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Create An Invoice On Excel - Small Businesses Author: Ankit Parasher Published: 2023-01-25 Meta Title: How To Create An Invoice On Excel - Small Businesses Meta Description: In this post, we discuss how to create an invoice in Excel, and how invoice in Excel format tremendously helps small businesses. Tags: invoice generator tools , Create bill, Excel for business , Excel for small businesses , Ways to use excel in business, Generate Invoice On excel , Create invoice on excel , invoice in excel format , invoice in excel URL: https://salt.pe/blog/How-To-Create-An-Invoice-On-Excel ![Invoice-Generation-On-Excel](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-create-an-invoice-on-excel-1674649119532-compressed.jpg) Generate Invoice Through Excel  Introduction Excel is a critical tool for businesses of all sizes. From start-ups to Fortune 500 companies, Excel is used to manage financial data, create complex formulas, and build custom business solutions. It is also a very useful tool for small businesses, freelancers, and medium-sized establishments to manage data. For your convenience, we have written in detail how to create an invoice in Excel format. Read ahead to learn more about it! Why is Excel Important for Businesses? -------------------------------------- Excel has become a tool that helps us record data for every little task we perform in our daily lives. Here are the reasons why it is so important: * Excel is important for businesses because it provides a versatile platform for organizing, analyzing, and presenting data. With Excel, businesses can track sales, create budgets, and forecast future growth. Excel can also be used to create pivot tables and charts, which help businesses visualize data and trends. * Another reason Excel is so important for small businesses is that they can use it to create custom solutions. With Excel, businesses can automate tasks, such as invoicing and data entry. Businesses can also use Excel to develop custom dashboards and reports. By leveraging the power of Excel, businesses can save time and money. * Excel is a powerful tool that can help businesses of all sizes, especially small businesses, improve their operations. Whether you’re using Excel to track data, create formulas, or develop custom solutions, Excel can help you streamline your business and achieve your goals. Invoice in Excel format is just one of the ways it is helpful to businesses. How To Create An Invoice in Excel Format? ----------------------------------------- Creating an invoice in Excel format using a template is pretty simple. These are the steps to create one: ![](https://lh5.googleusercontent.com/4KGI2rjNU0h00Z_3OMfly_d9aARtyXsp_OJy2ug8tit06hiQOJ4lWjbmfQk980C09xttzOeEH_kJMzp3cPxD2XaqotA6pmHO_M56uW5nuS3pnCibdjMFGXUw95SqdZS9Kr2IPgNpJAlL2afh2UJpvhrRfiVyZyq0h4OWZzGJnNXK_tSfHRIfIm29RtLHzA) [Source](https://indzara.com/2016/07/free-excel-invoice-template-sales/) | A Sample Invoice in Excel Format Template **Step 1:** Launch the Excel spreadsheet on your PC. Once it is open, move to the File menu on the top left of your screen. You will see an option New From Template appearing there. Click here, and you’ll be taken to the Excel Workbook gallery. This step will apply if you’re using a Mac. In case you’re using a Windows PC, Type ‘invoice’ in the search bar on top of your window, choose a template from the various template options provided to you, and click on Create . Then continue from step 3. **Step 2:**  Once you are in the Excel Workbook gallery, type the word ‘invoice’ in the search bar at the top right corner. A wide array of invoice in Excel format templates will appear after that. According to your business profile, you can choose your required template by double-clicking on it or by clicking on it once and then clicking on Choose at the bottom. **Step 3:** The template will open on your window with blank entries. You can now start customizing your invoice in Excel format template! Ensure that important parts of an invoice are present, including the word ‘invoice,’ your company’s name and address, your client’s contact details, the list of products and the amount charged against each product, the grand total to be paid by the client, etc. You can refer to an expert to include all necessary entries in your invoice in Excel format. **Step 4:** The Home menu features will allow you to customize your template with different fonts, sizes, styles, and colors. Make the necessary changes and fill the template with all the details. ![](https://lh4.googleusercontent.com/P445GNaMJOny_8qroNhUiLugmfo80wawkHmCjY2BnWJeisq2n3yD_UigNTqDs40jKlu2MF2HJiP6VWQE6qs0w1KeawPVlr6RoZRflthQ-KD_sDoKPEKVV3Q-uMq8m8fndjD94ZjLfG-jIhPWY2QsmANvDZSBKgMJi3p42wgGX_uF9IBydrpn9DwjVmbNlg) [Source](https://www.techonthenet.com/excel/rows/unhide_row1_2016.php) | Customization features available in the Home Menu **Step 5:** Go to File, click Save As, and save your invoice in the required format in a suitable location. You are all set to send the saved invoice to your client! ### But what if you want to create an invoice in Excel format from scratch without using a template? Here are the steps to do so: ![](https://lh6.googleusercontent.com/tWsO0EbrKuJC7HkTUQT8W7nYTXnwPWZmIcG-HVPdtmMD0ntnKe8A8C4XDak01FmhfXfq1TqA-27ovTlL0E-gbPG5aQwBu1r84v-M3lN_IV-iv8YWN3HzZrKM73GdSXcQjtRZEqVVAAOE-NpOjhzhoebaWx7Qs_Y_GWXjpV7wtVa6NDQ1vbZaz1TiUMVMIw) [Source](https://www.youtube.com/watch?v=j-_qtjzyDRE) | A Blank Workbook on Excel **Step 1**: Launch Microsoft Excel on your PC and click on Blank Workbook. A completely blank spreadsheet will open on your screen. **Step 2:** The next step is to create a header for your invoice. The header should contain many important details, including the logo and name of your business, its address, and contact details. It should also carry your unique registration number, if required, and the date of the invoice. **Step 3:** Next comes the client’s details. Add all their contact information, including phone numbers, names, addresses, and others. Use tools like Merge & Center for formatting cells. ![](https://lh3.googleusercontent.com/0Sp9mfHR9mA04C3dxnf9s1dfpp4CuDYOCs7fp94oWB38hut3GTVMLp4p4wj81VbZthXutUFiuBeyTIt_pZVqBGh72LLFn-CXrDQ3KE2-vF-AyA3H2E4BN66tXSUi4WZgWt8EvSnE_v-ZRkvCcilKoD_H5hXc63dxwLJYf6gZ6lP795TlhmCswYM_F-fqJQ) [Source](https://www.exceltip.com/tips/how-to-merge-cells-in-microsoft-excel.html) | The Merge & Center Tool for Invoice in Excel Format **Step 4:** Write the exact due date of the expected payment to avoid confusion. Don’t be vague in this section and specify a date. **Step 5:** Then comes another important part. Add the list of services or products provided, and add four columns. The first should contain a description of the product or service. The second should contain the rate of the same. The third should contain the number of billable hours or the number of products. The fourth column should contain the subtotal of each service or product. Add all the subtotals in this step. Use the functions of Excel, specifically SUM, to calculate the total due amount. For example, if you need to add up the subtotals in Column D from cells two through six to calculate the total due, enter the following formula in cell D7: =SUM(D2:D6) ![](https://lh6.googleusercontent.com/3NiFvlDqgElC2FDJmnauko-SoYpR84o2fCBebRS1kOHtD_JmIwdVibCzdrCfXSlGx-cpG2Wr3PZoUXG-gHzboTcA-JFQvGiAToyc0pPwsYECsnZ_ZIlr-fNTOik04sEEP-PzIfHzpu5NDua1N-UQ78m1sqvyJEF-Nahw0lTGC09s7iNGsKzm2W2chRgpBg) [Source](https://exceldatapro.com/invoice-template/) | Sample columns for Product Description Section **Step 6:** Include any other detail, including terms of payment, late payment policies, and other details which may be needed by the client. Besides Excel, there are several tools you can use to generate invoices for your business. You can read about [the best tools to generate invoices](https://www.salt.pe/blog/invoice-generator-tools-for-freelancers).  Conclusion ---------- If you're running a small business, chances are you're looking for ways to cut costs and save time. Here is where invoice in Excel format comes in. If you learn to use Excel to your benefit, it will act as a boon for your business! And the best part is it's relatively inexpensive and easy to learn. We hope this article helped you learn how to create an invoice in Excel format! Salt works to bring the conveniences of global banking for your business with local accounts to your fingertips. Want to know more about us? Give [the Salt website](https://www.salt.pe/) a visit! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Happens If FCGPR Is Not Filed? - Foreign Direct Investment Author: Ankit Parasher Published: 2023-01-24 Meta Title: What Happens If FCGPR Is Not Filed? - Foreign Direct Investment Meta Description: Non filing of the FCGPR form by startups, SMEs or any enterprise may lead to a penalty of up to 1% of the foreign investment, and is capped at INR 5 lacs. Tags: FDI regulations, startups, SMEs, Foreign Direct Investment , FCGPR, FDI URL: https://salt.pe/blog/What-Happens-If-FCGPR-Is-Not-Filed ![FCGPR-NOT-FILED](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-happens-if-fcgpr-is-not-filed-1674540835143-compressed.jpg) FCGPR Not Filed. Startups, SMEs and enterprises all over India have been trying to get as much foreign investment as they can. Even the government has been promoting the foreign direct investment (FDI) programs as it boosts up the economy. With the help of investments against shares in the company, both the company and the investor benefit. The company benefits as it gets investment to put into expansion, marketing, research and various other aspects. As the company grows, the investors earn profit from their share in the enterprise. The Reserve bank of India has thereby installed some compliance measures that the startups, SMEs and all other enterprises have to follow for maintaining the flow of foreign investments (FDI) into the country. Foreign collaboration – General Permission Route (FCGPR) is a form that has to be filed with the RBI every time shares of an enterprise are issued against foreign investment. It is to make sure there is transparency between both the parties and no fraudulent activities occur. Since it is a complete government procedure, you might be having confusion as to what it is and what if a company fails to file the same. Let’s thus try to understand FCGPR more and get into the details of failure in filing this form.  What Is FCGPR form? -------------------- According to the [Foreign Exchange Management Act of 1999](https://cleartax.in/s/fema-compliance-foreign-exchange-management-act-1999#:~:text=issue%20of%20shares.-,Form%20FC%2D%20GPR,of%20allotment%20to%20the%20RBI.) (FEMA), startups, SMEs and every other business registered in India have to report allotment of shares to a non-resident Indian investor. This compliance is due only after the company registration with the RBI is successful and a form has to be filled for reporting the investment. This form is called the Foreign Collaboration – General Permission Route form. This form is used to declare the issuance of capital instruments by Indian startups or SMEs or any other type of business to a foreign investor.  In other terms, it is a declaration of FDI or foreign direct investment by the companies to the government. The FCGPR form has to be filed by the concerned company within thirty days of the issuance of company shares to the investors. Reporting Foreign Investment In The Company ------------------------------------------- Whenever a company plans on expanding, they search for angel investors and preferably non resident Indians. Foreign direct investment helps increase the flow of foreign currency into the country and therefore helps the economy. This is why the government has issued a federal policy for all the enterprises to follow after getting the investment.  In 2018, the Reserve bank of India (RBI) issued a new online framework for reporting the foreign investment in the companies. Using a single master form, Indian startups and SMEs can now file the foreign investments made into their company. This form allows reporting the investment into LLPs, companies, transfer of share between the parties, and the issuance or transfer of convertible notes. Foreign direct investments under the RBI are permitted through two routes. The first one is the automatic route, where there is no requirement of government approval for investing in the company. Then there is the general route, here the FCGPR form is a must for the foreign investments to be declared to the government. ![](https://lh3.googleusercontent.com/XmGhyzNBnt-1wJ0fgEVPG7mgqcSxOHINC1sE9RVQC1jh0sXym2U5_9OIzurmkvdos4IiqeGw6Zx0WJDiiG6pxYVX8o6P6l559tnO_9zMAkpyq9FZ2LVDfX_EVzJ1aM_G-CAUMYkZ_mVtXTbyJoqoPStgbNLaQSk6KhbnNdtMxX5v--TztCOocc-nc7PfLg) [Source](https://www.indiafilings.com/learn/filing-form-fc-gpr/) // Declaration of FDI Failure In Filing FCGPR ----------------------- Sometimes, the federal policy regarding foreign direct investments is not clear to the founders of startups or even with the people managing the SMEs. This may lead to a situation where the company fails to file the FCGPR form within thirty days of issuing the shares to the investor. The RBI has stated rules for penalty in such a case and declares it to be a case of ‘compounding.’  In the case of non filing of FCGPR form the RBI imposes a substantial penalty for non compliance of the federal policy issued by the authority. The RBI has a designated account into which the company has to transfer the penalty amount post failure in complying with the rules. The penalty may differ case to case as the RBI also hears the argument from the company’s side. The standard procedure suggests a penalty of either INR 5000 or one percent of the total investment which is capped at INR 5,00,000 penalty. The penalty is doubled after delaying the payment for more than six months. Will The Company be Reported for the Non Filing? ------------------------------------------------ There is no such case where the RBI has taken such harsh steps as of declaring major penalties or even reporting the company under the FEMA act 1999. The penalties are usually conveyed to the company by the authority and are cleared out on the company’s side in due time.  Documents for FCGPR filing -------------------------- Since foreign direct investments are a huge thing for a company, there is a set of documents to be filed along with the FCGPR form. These documents are checked by the RBI for making sure there are no chance of clashes between the investors and the company. The list of documents to be submitted according to the FEMA act are: * Board Resolution for the Allotment of Shares/ Compulsorily Convertible Debentures (CCD) / Compulsorily Convertible Preference Shares (CCPS) * Foreign Inward remittance Certificate (FIRC) from AD Bank * The Memorandum of Association (MOA) of the company for when the shares are allotted for the subscription to the MOA * KYC from AD Bank * CS Certificate in the required format * The valuation certificate about the value of shares from the CA or the chartered accountant * A declaration from an authorised representative of the company * A debit authorisation for debiting any charges from the bank * The declaration regarding issue price by the directors of the company * The reason for delay in submission, in case of a delay This was about FCGPR, there are a list of compliances that startups need to follow for their fundraising, read in detail about it here [Pre- funding and Post-funding Compliances For Indian Startups](https://www.salt.pe/blog/pre-and-post-funding-compliances-for-indian-startups). ### Conclusion We do hope this article gives you a complete idea of what happens in case the FCGPR form is not filed!  Salt's product for Indian startups - Table Salt takes care of the legal filings such as FCGPR, RBI & MCA filings for your Indian startup's foreign fundraising. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Employers Can Learn From The Layoffs In The Startup Industry Author: Udita Pal Published: 2023-01-23 Meta Title: What Employers Can Learn From The Layoffs In The Startup Industry Meta Description: In this article, we discuss what employers can learn from the layoffs that have taken place in the startup industry due to the upcoming recession. Tags: startups, employers, layoffs in 2023, unemployement , company layoffs, recession layoffs, layoffs URL: https://salt.pe/blog/Startup-layoffs ![startup-companies-layoffs ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-employers-can-learn-from-layofs-startup-industry-06-1674479263381-compressed.jpg) Layoffs in Startups  Introduction ------------ The startup industry is known for its fast-paced and constantly evolving nature. Startups are often required to adapt to changing market conditions in order to survive and thrive, and this adaptability is often a key factor in their success.  However, the upcoming recession has presented unprecedented challenges to many startups, leading some to make tough decisions such as layoffs in order to stay afloat. While layoffs are never easy, they can provide valuable lessons for employers in any industry. This article will discuss what employers can learn from the layoffs that have taken place in the startup industry, with a focus on the importance of adaptability, effective communication, and employee support. Recent layoffs in the industry and what we can learn from it ------------------------------------------------------------ Recently, there have been numerous layoffs in various industries as companies have struggled to adapt to the economic impacts of the recession. One sector that has been hit particularly hard is the startup ecosystem, where many young companies have been forced to shut down or downsize entirely due to financial pressures. In 2022, India's startup ecosystem was impacted significantly, leading many founders to reevaluate their principles and prioritise building more viable companies that could profitably serve customer needs.  As a result, edtech startups, including those valued at over $1 billion, implemented layoffs in an effort to reduce costs and become profitable. These layoffs affected over 20,000 jobs across the startup industry. Companies such as Oyo, Zomato, and Byju's, as well as global firms, all [implemented significant layoffs](https://inc42.com/features/indian-startup-layoffs-tracker/). Hospitality chain OYO has laid off 600 employees from tech roles in product and engineering teams. The layoffs come after OYO decided to merge the two teams, and they will also impact teams that were developing pilots and proof of concepts such as in-app gaming, social content curation, and patron-facilitated content. OYO did not provide any details about the benefits the affected employees would receive. The company's CEO, Ritesh Agrawal, stated that they would try to help the laid-off employees find new employment. These layoffs come after OYO reported an adjusted EBITDA of INR 56 Cr in Q2FY23, its second consecutive quarter with a positive EBITDA. Edtech company BYJU'S has laid off 2,500 employees as it aims to become profitable by the end of FY23. The layoffs affected employees across product, content, media, and technology teams. BYJU'S has also restructured its business, consolidating several acquired companies into one unit while allowing others to operate independently. The layoffs come seven months after BYJU'S raised $800 million in a funding round and shortly after the company reported INR 4,588 Cr in losses for FY21, a 20X increase from FY20. Foodtech startup Zomato has laid off 3-4% of its workforce, or at least 100 employees, due to performance-related reasons. In recent weeks, the company has also seen several high-profile exits, including the departure of a co-founder. Additionally, Talabat, a Kuwaiti startup that acquired Zomato's UAE food delivery business in 2019, has shut down Zomato's food delivery operations in the UAE. In Q2 FY23, Zomato's loss narrowed to INR 250.8 Cr compared to the previous year. While layoffs may bring short-term challenges, they are expected to drive businesses towards frugal innovation, concentrate capital on successful ideas, and ultimately deliver long-term value. Investors and recruiters have warned that further job cuts may be necessary depending on global economic conditions, including high interest rates, inflation, and the potential for a global recession. These layoffs and others like them can serve as cautionary tales for other employers and startups, highlighting the importance of financial stability and adaptability in the face of economic challenges. They can also be a reminder of the need for companies to have contingency plans in place and to be prepared for the possibility of downsizing or restructuring. The harsh truth of unemployment ------------------------------- The harsh truth of unemployment during a recession is that it can be difficult for laid-off workers to find new employment, and it can take a long time. With many companies struggling financially, they may be hesitant to hire new employees, especially in industries that have been hit hard by the recession. This can lead to a high number of deserving candidates competing for a limited number of job openings, resulting in increased competition and longer periods of unemployment. For those who are able to find new employment, it may not be at the same level or with the same salary and benefits as their previous job. This can be a difficult adjustment, especially for those who have been without work for a long period of time. Overall, the recent layoffs in the industry serve as a reminder of the harsh truth of operating a business during a recession. They also offer valuable lessons for employers and startups about the importance of financial planning and adaptability in the face of economic challenges. Recession's tough on companies, especially the early stage companies. If you are an early-stage startup founder, here's  [candid advices by VCs to early-stage founders](https://www.salt.pe/blog/5-candid-advice-from-vcs-to-all-early-stage-founders-actionable-tips-cl4r1iefx103451lqf4cb0boq9).  ### Conclusion In conclusion, the layoffs that have taken place in the startup industry can serve as important lessons for employers in any industry. Being adaptable and able to pivot in response to changing market conditions is crucial for the success of any organisation. Effective communication with employees during times of change is also essential in order to maintain trust and morale. Finally, providing support to affected employees and investing in retention efforts can help to retain valuable talent and maintain a positive company culture. By considering these lessons and applying them in their own organisations, employers can be better equipped to navigate challenges and achieve long-term success. To read more about everything related to finance, check out the [Salt blog](https://www.salt.pe/blog). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Founder's Guide For Financial Projections - Startup Guide Author: Sudhanshu Choudhary Published: 2023-01-21 Meta Title: The Founder's Guide For Financial Projections - Startup Guide Meta Description: In this article, we find out the importance of financial projections for founders, different types of financial projections, and how to prepare and use them. Tags: startup founders, founder's guide, startup financial projections , Financial Projections, startup guide , sales projections URL: https://salt.pe/blog/founder's-guide-on-financial-projections Introduction Running a business venture is an exciting and challenging endeavour, and one of the most important tasks for any founder is to create financial projections for their company.  ![financial-projections-for-startups](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/founders-guide-for-financial-projections-04-1674288927041-compressed.jpg) Founder's guide for financial projections Financial projections are estimates of a company's future financial performance based on historical data and certain assumptions about the future. They play a crucial role in helping founders plan and make informed business decisions, communicate with investors and stakeholders, and monitor performance over time. In this article, we will take a comprehensive look at the importance of financial projections for founders, the different types of financial projections, and how to prepare and use them. Types of Financial Projections ------------------------------ There are several different types of financial projections that founders can create, depending on their needs and the stage of their business. Some of the most common types include: * **Sales projections:** These projections estimate the amount of revenue a company will generate in the future based on historical data and certain assumptions about the market. Sales projections can be broken down by product or service and by time period (e.g. monthly, quarterly, annually). ![Different-financial-projections-in-startups](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/type-of-financial-projections-05-1674289738974-compressed.jpg) Different financial projections for startups * **Income projections:** These projections estimate a company's future net income (i.e. revenue minus expenses) based on its past performance and certain assumptions about the future. An income projection is also known as an income statement or profit and loss statement. * **Cash flow projections:** These projections estimate the inflow and outflow of cash a company will experience in the future. They are particularly important for founders to understand as they need to ensure that the company has sufficient cash on hand to meet its financial obligations. * **Balance sheet projections:** These projections estimate a company's future assets, liabilities, and equity. A balance sheet gives an overall picture of a company's financial position at a given time. * **Break-even analysis:** This is a projection of the point at which a company's revenue will be equal to its expenses and start generating a profit. Break-even analysis can be useful for founders to understand when their business will become profitable and what level of sales they need to reach to do so. Preparing Financial Projections ------------------------------- Once you've identified the types of financial projections you want to create, the next step is to gather the necessary data and assumptions and put them all together into a cohesive set of projections. Here are some key steps to follow when preparing your financial projections: * Identify key assumptions: Before you begin creating your projections, it's important to identify the key assumptions that will drive your estimates. Make sure to document these assumptions and explain the reasoning behind them. * Gather historical data: To create accurate projections, it's important to have a solid understanding of your company's past financial performance. This includes data on things like sales, expenses, cash flow, and other key financial metrics. * Create a projected income statement: Based on your historical data and key assumptions, create a projected income statement that estimates your company's future net income. This should include line items for revenue, cost of goods sold, gross profit, operating expenses, and net income. * Create a projected balance sheet: Using the information from your income statement, create a projected balance sheet that estimates your company's future assets, liabilities, and equity. This will give you an overall picture of your company's financial position. * Create a projected cash flow statement: Based on the information from your income statement and balance sheet, create a projected cash flow statement that estimates the inflow and outflow of cash for your company. This will help you understand your company's liquidity position and identify any potential cash flow issues. * Identify key financial metrics: Identify financial metrics that are relevant to your business and will be useful for monitoring and evaluating your company's performance over time. This might include things like gross margin, net profit margin, return on assets, and cash conversion cycle. Using Financial Projections --------------------------- Once you've prepared your financial projections, the next step is to put them to use in making business decisions and communicating with investors and stakeholders. Here are some key ways to use your projections: * Setting goals and targets: Use your projections as a tool for setting goals and targets for your business. These might include things like revenue targets, profitability milestones, and cash flow objectives.  * Making business decisions: Your projections can be used to inform a wide range of business decisions, such as product development, pricing strategy, marketing and sales efforts, and operations.  * Communicating with investors and stakeholders: Investors and other stakeholders will often want to see your financial projections as part of their due diligence process. * Monitoring performance and making adjustments: Regularly review your actual financial performance against your projections to identify any variances.  ### Conclusion Financial projections are an essential tool for any founder, helping to inform business decisions, communicate with investors and stakeholders, and monitor performance over time. In this article, we've covered the importance of financial projections, the different types of projections available, and how to prepare and use them. To summarise, it is crucial to gather historical data, identify key assumptions, create a projected income statement, balance sheet, and cash flow statement, identify key financial metrics and use them in setting goals and targets, making business decisions, communicating with investors and stakeholders, and monitoring performance. Just as financial projections, it's also important to know vital startup metrics, read here the [founder's guide to vital startup metrics](https://www.salt.pe/blog/founders-guide-to-vital-startup-metrics-make-better-decisions-ckyidc0qt510281ko5dxjwkx51).​ As a founder, it's important to be realistic about market conditions, stay up-to-date with industry trends, and regularly review and update your projections. In addition, you can seek professional help when needed. With the right approach and the right tools, you can create accurate and effective financial projections that will help you to build a successful and sustainable business. Check out the [Salt blog](https://www.salt.pe/blog) to learn much more about the world of finance. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Customer Acquisition or Customer Retention - Where Is Your Business Funds Going? Author: Udita Pal Published: 2023-01-18 Meta Title: Customer Acquisition or Customer Retention - Where Is Your Business Funds Going? Meta Description: In a race where SMEs, startups and enterprises all aim for good business growth, choosing between customer retention and customer acquisition is a tough job. Tags: SMEs, customer retention, business growth , startup customer acquisition , customer acquisition , startup customer retention , Indian startups 2022 URL: https://salt.pe/blog/customer-acquisition-or-customer-retention ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/customer-acquisition-or-customer-retention-02-1674028068020-compressed.jpg) Customer Acquisition  Or Customer Retention? Suppose that you own an enterprise, would you prefer to direct your funds towards customer acquisition or customer retention? Both these factors are crucial for a business to grow. But when it comes to directing the marketing funds, you have to choose one as the superior choice. In the case of most businesses, SMEs and startups, it is observed that they direct most of their capital towards customer acquisition rather than retention. But in practicality, both these aspects are equally important for constant growth.  Customer retention means that you can keep your existing customers happy, and they are buying from you again. At the same time, customer acquisition helps you add more to that customer base. These two aspects are like two wings of an aeroplane; without both wings, any flight cannot be imagined. But there cannot be any case where equal funds are to be given to both. So which one should you choose? Well, let’s dive right into their details to understand.  What is Customer Acquisition?  ------------------------------ For every business to grow, there is a constant requirement for new customers. This helps improve the revenue generated each quarter and therefore helps with the growth of the business. With the addition of each customer, your business, especially startups, can grow faster in the market. The aspect that provides stats related to adding new customers to a business is called customer acquisition statistics.  The most common practices which help with customer acquisition are product marketing and approaching the leads. For customer acquisition, enterprises must spend their capital on marketing, sales teams and expanding their inventory. But the outcome of all these efforts helps expand the business and enhance the revenue generated by the sales.  Benefits of focusing on Customer Acquisition  --------------------------------------------- Let us consider a situation where you have decided to focus most of your funds towards customer acquisition from the market. Your business plans thus need to be aligned in such a way that the marketing strategy, sales tactics and inventory management all support the addition of new customers. Some of the benefits that you will experience by focusing more on customer acquisition are:  * Startups and SMEs wish to have a high growth rate to be termed product-market-fit enterprises. This is something that customer acquisition can provide you. As you keep adding new customers to your business, the net customer gain stays in the green even if there are no repeat orders. The growth rate metric thus trumps other business standards, and your company comes under the view of expanding enterprise.  * Focusing on customer acquisition also helps improve revenue-generation in the shorter term. If you add 20 to 25 percent of new customers every quarter, your net revenue and profit go up. Your business can recover the capital spent as the customer acquisition cost.  **What is Customer Retention?**  -------------------------------- Now that you are successfully running your business and wish for business growth, you must rely on more than just one-time customers. This will mean you must continuously keep spending money on getting new customers. That makes the customer acquisition cost to come out to be very high. This is where customer retention starts to show its importance.  Customer retention is the ability of startups, SMEs, and other enterprises to keep their customers happy and get business from them repeatedly. The customer services, support and product quality you provide tend to keep customer retention on the brighter side. Moreover, it is easier to keep getting business from existing customers by ensuring that the business delivers the best service possible.  Benefits of focusing on Customer Retention ------------------------------------------ Businesses also need to focus on customer retention as a part of their business growth plan. Some of the benefits of focusing more towards the customer retention side are:  * Above all, it’s true that a customer loyal to your business will help your business grow. If you direct funds towards customer retention and provide the best services, your customer lifetime value will skyrocket. The lifetime value is the overall business generated by each customer during their relationship with the business. Higher lifetime value means you keep generating revenue multiple times from the same customers while new customers keep coming in.  * Another great thing about focusing on customer retention is that it does not cost much to the company. The return on investment is higher, meaning you can generate business through the same customers without spending much.  * A happy customer base will also mean good marketing for the company. A satisfied customer base can spread your products and services through word of mouth, the oldest form of marketing. This will also result in business expansion, which is the overall business growth plan.  Market Statistics related to Customer Retention   ------------------------------------------------- ![Statistics-on-customer-retention-in-companies](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/market-statistics-related-to-customer-retention-01-1674028311829-compressed.jpg) Market Statistics On Customer Retention * Some studies suggest that SMEs, startups and other enterprises generally spend [five times](https://www.huify.com/blog/acquisition-vs-retention-customer-lifetime-value) more money on customer acquisition than customer retention to generate the same revenue.  * If you can increase the customer retention stats by 5 per cent, there are chances that the profit will go up by a minimum of 25 per cent.  * The success rate of getting business from existing customers is around 60 to 70 per cent, while the success rate of conversion of a lead to a new customer is just over 20 per cent.  * Existing customers are likely to refer the product or service to their friends and family.  * [Thirty-three per cent](https://templatelab.com/american-express-study/) of the customers consider changing companies when they experience poor services from their side.  ### Conclusion: What Should You Choose?  Customer retention and customer acquisition are both important aspects of business growth. Your business plans should have both of these aspects included in them. As you have just understood, getting business from an existing customer is much easier than getting a new one. But that does not mean you should satisfy yourself with the existing customer base. Spending considerable capital on customer acquisition via sales and marketing is important for business growth. As a company, your funds should be directed towards providing customers with the best products and services; this will help in enhancing the customer acquisition stats as well as retention stats too.  As a company, you will also need smoother banking operations and transactions. Using neobanks like [Salt](https://www.salt.pe/) can be beneficial for faster international transactions in the most effortless process at the least possible charges. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Payment Acceptance?- Why Your Business Should Care About It Author: Sudhanshu Choudhary Published: 2023-01-04 Meta Title: What Is Payment Acceptance?- Why Your Business Should Care About It Meta Description: Payment acceptance is the percentage of successful payment attempts. Read - Why It Is Important & How To Improve It For Your Business Tags: Customer Experience, business growth , Payment acceptance, Sales , entrepreneur, payment attempts, business payments , customer convenience, payment options, Increase sales URL: https://salt.pe/blog/What-Is-Payment-Acceptance? ![Payment-acceptance-rate-for-businesses](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-payment-acceptance-and-why-your-business-should-care-more-about-it-1672918149133-compressed.jpg) Payment Acceptance Rate  Payment acceptance, often referred to as decline rate or authorisation rate, is the proportion of payment attempts that are successful. Since low payment acceptance would result in low revenue yields, it is a crucial metric for optimising customer revenue. The rate is usually displayed as a percentage. What Is Payment Acceptance? --------------------------- Payment acceptance is the percentage of payment attempts that are successful, as mentioned above. It is often a concern for e-commerce and marketplace businesses, but it is also important for software as a service (SaaS) companies to track. This is because various factors in the SaaS model, such as the increased likelihood of payment failure for online transactions and the need to accept international payments, can affect payment acceptance.  Additionally, SaaS and subscription businesses depend on retaining customers and smoothly processing recurring payments to prevent customer churn, so low payment acceptance can result in lost revenue.  It is an essential aspect of any business, as it allows the business to receive the funds it needs to operate and grow. Why Is Payment Acceptance Important? ------------------------------------ If your payment acceptance rate is low, it can result in lost revenue from potential customers attempting to purchase your service and from existing customers trying to continue or expand their use of your service.  By analysing payment acceptance data, you can identify the causes of payment failure, which are often due to insufficient funds in the customer's account or expired or lost cards. If a payment fails during a first-time purchase, it can result in the loss of the customer.  At the time of renewal, a failed payment can cause unintentional customer churn, resulting in lost revenue for the current and future billing cycles. Improving payment acceptance by just 2% in the case of monthly subscription renewals can increase revenue by 21% over the course of a year. How Is Payment Acceptance Calculated? ------------------------------------- To calculate payment acceptance, divide the number of successful payments by the total number of payment attempts and then multiply it by 100. You can obtain this data by exporting it from your payment processor as a CSV file.  However, there are more specific ways to calculate payment acceptance that can provide insight into the various factors influencing it. One way is to look at unique payment acceptance or the number of payment attempts during checkouts compared to the number of individual payment attempts. This can help you identify areas where you can take action to improve payment acceptance. Why Should You Care About Payment Acceptance?  ---------------------------------------------- There are several reasons why businesses should care more about payment acceptance. Here are some of the main ones: ### Customer Convenience:  In today's digital age, customers expect to be provided with the option to pay for goods and services in a variety of ways. By accepting a range of payment methods, businesses can make it simpler for customers to make purchases and increase their chances of making a sale. ### Increased Sales:  By accepting more payment methods, businesses can appeal to a wider range of customers and improve their chances of making a sale. For example, a business that only accepts cash may lose out on potential sales from customers who prefer to pay with a credit or debit card. ### Improved Cash Flow:  Payment acceptance helps businesses to receive the funds they need to operate and grow. This can be especially important for small businesses, which may have limited access to credit or other forms of financing. By accepting a range of payment methods, businesses can improve their cash flow and have the financial resources they need to meet their expenses and invest in their operations. ### Reduced Risk:  Payment acceptance can also help businesses to reduce their risk of fraud or chargebacks. By using secure payment systems and processes, businesses can protect themselves and their customers from financial losses. ### Customer Loyalty:  By providing convenient and secure payment options, businesses can increase customer satisfaction and loyalty. Users who have a good experience with a business's payment acceptance processes are more likely to return and make repeat purchases. How Can Payment Acceptance Be Improved? --------------------------------------- ![Improve-Your-Business-Payment-Acceptance-Rate](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payment-acceptance-1672918249988-compressed.jpg) Payment Acceptance Rate There are many ways businesses can improve their payment acceptance processes. Here are some tips: ### Offer a range of payment options: As mentioned above, it's important to offer a variety of payment options to appeal to a wider range of customers. This may include cash, credit and debit cards, online payments, and mobile payments. ### Use secure payment systems: To protect both the business and the customer from fraud or chargebacks, it's important to use secure payment systems and processes. This may include using encrypted payment portals, verifying the identity of the customer, and using fraud detection tools. ### Keep payment processes simple and easy to use:  Users are more likely to go through a purchase if the payment process is straightforward and easy to use. Businesses should aim to minimise the number of steps involved in the payment process and make sure it is clear and user-friendly. ### Use mobile payment options:  Mobile payments are becoming increasingly popular, especially among younger consumers. By offering mobile payment options, businesses can appeal to this group and make it easier for customers to make purchases on the go. * Stay up to date with payment technologies: Payment technologies are constantly evolving, so it's important for businesses to stay up to date with the latest developments. This may involve implementing new payment systems or integrating new technologies into existing systems. Conclusion ---------- In conclusion, payment acceptance is an essential aspect of any business, as it allows the business to receive the funds it needs to operate and grow. By accepting a range of payment methods, businesses can increase their chances of making a sale, improve their cash flow, reduce their risk of fraud or chargebacks, and increase customer satisfaction and loyalty. We hope this article helps you understand payment acceptance in complete detail. Want to read more informative articles about the world of finance? The [Salt blog](https://www.salt.pe/blog) is just the place for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Get An IEC Certificate? - Import Export Businesses Author: Ankit Parasher Published: 2022-12-29 Meta Title: How To Get An IEC Certificate? - Import Export Businesses Meta Description: You must complete the right steps to receive an IE Code for the government to validate your identity as an individual or organisation. How? Let’s find out! Tags: export/import, Import Export Code, IEC Certificate , How to get IEC, Get an IEC Certificate , Why do we need IEC, Export, IE Code, IEC CODE, How to get an IEC Certificate , Need IEC Certificate , Import Export , Obtain IEC Certificate , Import URL: https://salt.pe/blog/how-to-get-an-IEC-Certificate ![Import-Export-Code-Certificate ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-get-an-iec-certificate-27-1672834331711-compressed.jpg) IEC Certificate  Introduction A document known as an Import Export Code Certificate (IEC) demonstrates that the imported items into India adhere to particular specifications. These requirements may consist of taxes, restrictions, and safety norms. IEC is crucial for any business because it enables customs agents to expedite the import of products into India. Additionally, it guarantees that the products imported into India are of the highest calibre and adhere to all applicable laws. What is an IEC Certificate?  ------------------------------- Any business importing or exporting products or services from India must register with the Import Export (IE) Code. The Ministry of Commerce and Industries, Directorate General of Foreign Trade (DGFT), and the Government of India are responsible for issuing the IEC. The Directorate General of Foreign Trade must receive an application for an IE code along with all required supporting documentation. If any business wishes to expand its business globally, they need to grasp the process of obtaining an IEC certificate. In this post, we'll go over the process for obtaining an IEC Certification. Obtaining an IEC Certificate ------------------------------- For the Government of India to confirm one’s identity as a person or business company, one must provide acceptable documentation and follow the necessary procedures to obtain an IE Code. * Visit the official website to register for IEC. On the same page, click "Apply for New Import Export Code (IEC)/Modify Existing IEC." * Mention your PAN card login information. Ensure the information you enter is accurate. * According to the records kept by the CBDT (Central Board of Direct Tax), the PAN card number will be validated. * Mention your mobile number and email address after verification is complete; neither of these information may be modified and is necessary for login.  * Fill out the CAPTCHA form. * An OTP (Serial Number) will be sent to the registered email and contact number. * Enter the business information, such as a Proprietorship, Partnership, or another firm, as soon as the information has been confirmed. * In the section below, mention the applicant's specifics. * When referencing its director, use the DIN (Directors Identification Number). * Include the CIN (Company Identification Number) if it's a firm. * Mention the branch information if the company has one. * Send the appropriate documentation to the company. * Pay the fee and submit the form. * The applicant will receive a personalised IE code within a few minutes of submitting. Conditions for Applying for an IE Code Number By exporting and importing the products and services they offer, businesses have a tremendous opportunity to reach the worldwide market. The IEC is a crucial need for joining the global market because it helps the firm grow and thrive. Obtaining an import-export code has several benefits. In case you are an LLP/ Company/Proprietor applying for an IEC, the following documents must be presented during verification: * Address proof of Establishment, i.e., any utility Bill/ Rent Agreement. * PAN * Company Incorporation/ Partnership/ Proprietorship Documents. * Cancelled Cheque of Company Account, Proprietary Account. If you are a partner/Director/Proprietor looking to achieve an IEC, the following documents must be submitted in advance for verification: * Photo of partners/ Directors/ Proprietor * PAN * Resolution from the company/partnership approving the selected partner's digital signature and anybody else to apply for IEC registration. * Partners/ Directors/ Proprietor Aadhaar Card Things to know about an IEC Certification ### Why is IEC necessary? In India, IE Code must be used to import or export. Unless expressly exempted, no person or business may import or export anything without a valid IEC number. ### Who may obtain IEC? An IEC can be obtained by a person or a firm that wants to conduct international business. To apply for IEC, people can use either their business name or their name. ### Are service exporters needed to have an IEC? Except in cases where the service provider receives benefits under the Foreign Trade Policy, IEC will not be required. ### Who publishes IEC? The Directorate General of Foreign Trade, also known as DGFT, part of the Ministry of Commerce, Government of India, issues IEC in electronic form (e-IEC). ### What are the IEC fees? The IEC application fee is Rs. 500. ### What technical requirements must be met to file an IEC? The following documents are the technical requirements for a business to apply for an IEC: * Valid PAN  * Valid Mobile Number and Email ID  * Valid Digital Signature Token. * Valid Branch Office Address Details  * Valid Bank Account in IEC Holder's Name  * Valid Aadhar Card matching PAN Card Details Frequently Asked Questions About IEC Certification ### Is there a form one can use to apply for an IEC? Yes. For the DGFT site to award IEC, an online application (ANF 2A type) must be submitted. ### What is the IEC's legality? An IEC granted to a candidate must be updated annually to keep it active, although it must have perpetual validity. There will be no fee for updating the IEC if it happens between April and June each year. ### How to get a copy of the IEC certificate on paper? Please follow the steps to get a paper copy of the IEC Certificate. ​ * Open https://dgft.gov.in * Type your username and password in. * Select Manage IEC under Services > IEC. * Check Your information * Select IEC Print * A PDF will be shown for printing. Conclusion  ----------- We hope that this article clarifies the IEC Code Application Procedure to you! Now, if you intend to launch your export company from India, you should be aware that the Indian government offers exporters several incentives. The Merchandise Exports from India Scheme provides this export incentive or subsidy (MEIS Scheme). Exporters might receive incentives ranging from 2% to 5% of their invoice value.  Salt is dedicated to providing you a smooth global banking experience from the comfort of your home! Give our website a visit today to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Indian SaaS Startups Thrived In 2022 - Key Points Behind Growth Author: Ankit Parasher Published: 2022-12-29 Meta Title: How Indian SaaS Startups Thrived In 2022 - Key Points Behind Growth Meta Description: The Indian SaaS market is well on its way to becoming a global leader. However, how did Indian SaaS startups thrive in 2022 in particular? Let’s find out in our review! Tags: startups in India, saas startups , Saas Business , Indian startups 2022, Saas products , Saas startups 2022, Startup growth in 2022 , Stages of Saas startup URL: https://salt.pe/blog/How-Indian-SaaS-Startups-Thrived-In-2022 ![SaaS-Startups-In-India ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-indian-saas-startups-thrived-in-2022-28-1672741799133-compressed.jpg) Startups in India The convergence of pandemic-induced large-scale digital adoption and the rise of ambitious, dynamic Indian entrepreneurs ensures that the Indian SaaS industry will grow rapidly.  _According to projections in the first edition of Bessemer Venture Partners' India report titled_ _'Rise of the Cloud in India,' -_ The country is expected to benefit greatly from the global shift of industries toward increased digitisation and cloud-based technologies, with the country's SaaS industry expected to reach $50 billion by the end of 2030. As of October 2022, India has grown from two SaaS unicorns to around 20. India alone added four new names to this list in the first four months of 2022. Within a year, the number of new unicorns in the Indian IT industry increased by 267% (2020-21). Let’s take a look at the top 5 factors that allowed Indian SaaS startups to thrive in 2022. What Is a SaaS Startup? But first, let’s learn what a SaaS startup is.  **Software as a service (or SaaS)** can be defined as a method of delivering applications as a service over the internet. You simply access software instead of installing and maintaining it through the internet. With this, you can free yourself from the complexities of software and hardware management.  A SaaS provider maintains servers, databases, and software that enable the application to be accessed via the internet — most likely via web browsers.  ![Stages-of-growth-in-saas-startups](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/stages-of-a-saas-company-29-1672742089465-compressed.jpg) Stages of growth in SaaS startups  ​Users can use almost any device to access the software. The SaaS market in India has already reached a critical turning point, with $4.8 billion in venture capital invested there in 2021. This was nearly three times more than in 2020 and a stunning six times more than in 2018. Increased investment in SaaS firms, similar to that in venture-backed companies in the United States, has fueled the emergence of new unicorns in the country. How did Indian SaaS Startups Thrive in 2022? ----------------------------------------------- ### High Growth Outcome The predictable revenue stream, high growth outcomes, and recurring nature of business are what makes SaaS appealing. Indian SaaS businesses are even thought to have an efficiency advantage over their international competitors, as Indian businesses continue to attract interest from both international and domestic public market investors. Reportedly, Indian SaaS companies have a sales efficiency of 80-100% or higher, even when their annual revenue exceeds $100 million. ### Rise of e-commerce Over the last decade, e-commerce has grown exponentially, with nearly $100 billion in GMV transacted across various B2C, B2B, and B2B2C internet marketplaces such as Flipkart, Swiggy, Zomato, BigBasket, Pharmeasy, and others. The next decade will see the mainstreaming of e-commerce in India. Over the next decade, e-commerce will become increasingly popular in India. New technological solutions will emerge in the segment to provide every pin code in the city matching the level of efficiency and customer pleasure that the multi-billion dollar marketplaces have trained customers to expect. ### Innovation by Global Leaders With an increased demand for SaaS products, the number of players competing in the same market has increased. There is also a consolidation trend that may continue, with most companies either being acquired or failing to survive due to their inability to differentiate themselves. India will produce global market leaders in a variety of software categories. Zoho, Freshworks, Gainsight, iCertis, BrowserStack, Postman, Hasura, Amagi, Zenoti, and other category-leading SaaS companies have already emerged from the region. ### FinTech for All The rise of FinTech solutions is trendy. Today, any company can become a FinTech company by offering banking as a service. The high cost of distribution has been one of the most significant barriers to large-scale financial services adoption. As the internet rises, more and more distribution platforms that can reach every pin code in India are emerging. It can be expected that these platforms will eventually offer financial services to their customers, such as credit and payments, which will be enabled by new cloud-based embedded finance products. For instance, SALT allows everyone to easily accept cross-border payments at a low transaction cost and with no hidden charges. ### Productisation of Services Furthermore, India, a country known for its active and widespread service sector, particularly B2B services, is expected to see extensive productisation of its service industries. According to the study, leaders in these industries will use cloud software to streamline payments, increase transparency, standardise service delivery, and manage fragmented supply. Companies such as ExMyB for IT services, SquadStack for sales, and PepperContent for marketing are some current examples. Conclusion ---------- Indian SaaS firms must continue to focus on the factors that gave rise to this opportunity in the first place. However, India still must go a long way before becoming a global leader in SaaS. However, according to all of the aforementioned reports, Indian SaaS companies are driving value creation by maintaining a strong annual recurring revenue-to-funding ratio in line with their global SaaS peers. They are also focusing on creating a strong talent pool with SaaS-relevant skill sets. Notably, SALT contributes to the Indian SaaS market by making it easy for anyone to accept global payment. Visit our website to know more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Retain Your Clients And Build Meaningful Relations Author: Ankit Parasher Published: 2022-12-29 Meta Title: How To Retain Your Clients And Build Meaningful Relations Meta Description: Client retention is a must for any business ready to take flight! In this post, we list four ways for you to retain your clients and build meaningful relations with them. Tags: guide for agency owners , client retention , how to retain clients , business owners, entrepreneur, retain you clients , build client relation , consultancy firms URL: https://salt.pe/blog/how-to-retain-your-clients ![Client-Retention](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-retain-client-build-meaningful-relations-25-1672732861930-compressed.jpg) Client retention is critical for the success of any business. The value you place on your clients allows you to forecast revenue and budget for providing engaging content at all times. Client retention is not only cost-effective, but it is also a great branding exercise because it allows you to delight your clients and turn them into brand ambassadors - if they like you, they will refer others to you. Here are 4 ways to retain your clients and build meaningful relations with them: What is Client Retention? ------------------------- Before we discuss the ways to retain your clients, let’s have a look at what client retention is.  The process of attracting repeat clients and keeping them from switching to a competitor is known as client retention. It is an important aspect of business strategy that can assist companies in gaining a competitive advantage. Companies implement various ways to reduce the number of clients lost in a given period and improve their experiences to ensure that they remain loyal to the business. Loyal clients are more likely to tell others about their positive experiences with the company, and they are also more likely to buy from the company again in the future. According to data compiled by Harvard Business Review, onboarding a new client is 5x to 25x more expensive than retaining an existing client. Profits can be increased by 25% to 95% with a simple 5% increase in retention rates. 4 Ways to Retain Your Clients ![Four-Ways-To-Retain-Your-Clients](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/4-ways-to-retain-your-clients-26-1672732990278-compressed.jpg) Tips On Client Retention Build Trust The first step in developing trust with your clients is to create an easily relatable brand. Having something in common fosters trust, which is essential for developing a strong relationship and, as a result, a successful business. Given the importance of trust in your business, you must make conscious efforts to foster trust. You give new and existing clients the opportunity to trust you when you initiate relationships with them.  According to research, 82% of clients who trust your brand will continue to use it, and 83% of clients who trust your brand will recommend it to others. Clients will switch to your competitors if they discover you are untrustworthy, on the other hand.  Nothing turns off clients like a bad experience. What’s worse? They will spread bad news to others. Use Social Media Wisely After the initial sale, social networks are extremely useful for maintaining client contact. Social media provides excellent opportunities to engage your clients and build trust by displaying the human side of your company. Keep an eye on your clients' perspectives, interests, and motivations. Identify and reward your most devoted clients. Email automation can be used to send updates or offers to all of your clients at once. You can also send the email using an RSS feed at a predetermined frequency, eliminating the need to manually update the content or remember to click "send."  Consumers are using social media platforms to ask questions, file complaints, and resolve product issues. Use it to demonstrate how your company listens to and cares about its clients. ### Value Client Feedback Knowing how clients feel is one of the most important aspects of client retention. When you understand your clients' feelings and what they like and dislike, you can act on their feedback, improve your approach, and better meet their needs. Many clients value the quality of your service - friendliness, comfort, and familiarity - just as much as the quality of your product. Remember that 70% of purchasing experiences are determined by how the client feels they are being treated. When clients have the opportunity to express themselves, they reveal their thoughts and feelings about your brand. Be sensitive enough to detect the pain points in their complaints. Learn about the areas where they are dissatisfied and why. Making changes in those areas will help turn things around. Make your company appear to your clients as a welcoming and accommodating partner. For starters, instead of making predictions based on general demographics or your personal perceptions, try customising your offers based on actual client behaviour using analytics. ### Develop Communication Calendar Even if your clients do not provide feedback, your team should be proactive in communicating with them. If clients haven't interacted with your brand in a while, reach out to re-establish your relationship. Consider using a communication calendar to manage client engagements and upsell and cross-sell opportunities. Brands that maintain a communication calendar typically find it easier to engage with their clients. Because frequent communication eliminates post-purchase doubts, increases trust, and persuades the client to return. According to recent statistics, organisations that communicate with their clients more than 10 times per year profit 300% more than those that do not communicate with their clients. Conclusion ------------- That concludes our guide on how to retain your clients and develop meaningful relationships. Clients are at the heart of any business. A business cannot succeed without them. It is critical to invest in client retention after you have used resources to acquire clients.  You can accomplish this by implementing client relationship-building strategies. SALT can assist you in developing meaningful relationships with your clients by providing a one-stop shop for all of your banking needs. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Voluntary Vs. Involuntary Churn - The Right Way To Track This Metric Author: Ankit Parasher Published: 2022-12-29 Meta Title: Voluntary Vs. Involuntary Churn - The Right Way To Track This Metric Meta Description: In this post, we discuss the different customer churn types, aim to understand the differences in voluntary vs. involuntary churn, and how to effectively manage both. Tags: voluntary churn , churn rate , churn rate in business , metric to track in business , churn rate impact on business , manage business churn rate , how to reduce churn raye , involuntary churn , customer churn rate , customer churn types URL: https://salt.pe/blog/voluntary-vs-involuntary-churn-rate ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/voluntary-vs-involuntary-churn-the-right-way-to-track-this-metric-1672320153319-compressed.jpg) While starting a business, an entrepreneur should be completely aware of the whims and fancies of a business's difficult journey. Entrepreneurs often fall prey to certain problems due to unawareness of common issues. One common problem that businesses regularly face lies with understanding the differences when it comes to voluntary vs. involuntary churn. Let’s find out how voluntary vs. involuntary churn shapes up in this article, shall we? ![how-to-calculate-churn-rate](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/customer-churn-1672320234872-compressed.jpg) How To Calculate Customer Churn Rate? Voluntary Vs. Involuntary Churn A business can't have the same customers forever. Due to some issues, businesses and start-ups lose customers periodically. This rate of losing customers is called customer churn. Many large corporations, specifically those that depend on subscription models, have previously fallen victim to high customer churn rates. On the contrary, reports have claimed that those companies who monitor their customer churn rates regularly and take timely actions to reduce the rate have done much better over time. Let us dig deeper into the two main types of customer churn. **Involuntary churn** occurs when a customer stops using a company's services involuntarily, mostly unaware of the same. Sometimes while in a subscription mode, a customer's card may expire, or due to insufficient funds, the subscription may stop. The customer might only be aware of the issue if the company notifies them. If the company fails to do so, it loses out on the payments made by the customer, facing involuntary churn. On the other hand, **voluntary churn** happens when a customer genuinely gets unimpressed by a product and decides to stop using it actively. The reasons may vary, from a poor product to bad customer service, but the customer is directly responsible for cancelling the company's subscription in the case of voluntary churn. How Involuntary Churn Silently Impacts Your Business ---------------------------------------------------- A company is directly responsible for reducing voluntary churn. It strives to provide customers with the best product and services and use effective sales and marketing strategies to reduce voluntary churn rates. Customers usually tend to complain if they initially face a problem with the product. Therefore, a company can always make amends, making small changes to the product immediately or solving the problems of the customer through great service,  But, the involuntary churn of a company often goes unnoticed by both the customer and the company. A customer may not necessarily be unsatisfied with the product to cancel their subscription but may be affected by silly problems that directly impact their company transactions.  The most common issues include the expiry of cards, network problems, changes in the regulation of cards in particular countries, insufficient funds or crossing credit limits. Companies that initially get massive popularity often receive regular inflows through subscriptions, and small reductions in such inflows go unnoticed. The major issue is that such reductions may get compounded, and once it is too late, the company fails to acquire their customers again.  Companies and start-ups need to recognise that they can completely avoid involuntary churn. A business should mind even if a single customer stops dealing with them, get to know the root cause of the issue, and try to solve it. When a customer doesn’t even have issues with the product and cancels their subscription unmindfully, it is the company which suffers permanent damage. Three Ways To Reduce Involuntary Churn -------------------------------------- Companies can reduce involuntary churn in the following ways: * Constantly monitoring the involuntary churn rate: This includes monitoring how many customers stopped paying due to payment declines or regulatory issues. A dedicated team or tool should be allotted this job so that the churn rate doesn’t go unnoticed. * Automate payment retries: Failed payments via cards should be retried automatically after a period of time. The customer can allow this to happen once the company informs them beforehand. It ensures efficiency for both parties. * Send regular emails and app notifications to customers: Companies should regularly send app notifications or emails to customers to inform them about failed transactions. Bringing such issues to their notice may reduce the involuntary churn rate. Three Ways To Reduce Voluntary Churn ------------------------------------ To reduce voluntary churn , one can resort to the following ways: * Building an efficient and user-friendly product: This is the primary step to ensure customers don’t stop using your product. The product is the main reason customers may stick to a company. * Ensure excellent customer service: A 24\*7 dedicated customer service teams should always respond promptly to queries and solve customer complaints. Efficient customer service can go a long way in securing a loyal customer base. * Provide flexibility to the customer: A customer should be provided flexibility in pricing and payments. Since customers from all spheres of society may cater to your product, the customer should be provided flexibility in choosing from a wide array of flexible payments, and they can be provided flexible dates for making payments. This ensures that customers don’t stop using a product due to inconvenience or lack of affordability. ### Conclusion We hope this blog helped explain the two different types of customer churn rates, and the differences of voluntary vs. involuntary churn. Learn more on how to retain your clients.  Knowing the nitty-gritty of running a business helps in the sustainable growth of the business in the long term. Want to manage your global business’s financial activities with the convenience of local accounts? Give our website a visit today to find out more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Single Euro Payments Area (SEPA) - International Money Transfer Author: Ankit Parasher Published: 2022-12-19 Meta Title: Single Euro Payments Area (SEPA) - International Money Transfer Meta Description: Single Euro Payments Area (SEPA) payments enable cashless Euro payments anywhere in the EU and some non-EU countries in a safe, fast, and efficient manner. Tags: international money transfer, transfer money in euro , How SEPA transfer helps, SEPA , SEPA countries , How does SEPA work , Single Euro Payments Area, SEPA Direct Debit, Which countries are in SEPA, Is sepa only for euro?, why SEPA is required, Importance of SEPA URL: https://salt.pe/blog/single-euro-payments-area-SEPA ![SEPA-For-Payments ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/single-euro-payemtn-area-sepa-explained-22-1671543494003-compressed.jpg) ​ What is Single Euro Payments Area (SEPA)? The Single Euro Payments Area (SEPA) is a method of transaction created by the EU that harmonises the way cashless payments are sent and received between all the countries that use Euro. SEPA is used by European government agents, businesses, and consumers alike who want to make payments through direct debit, credit transfers, and instant card transfers.  SEPA payments make it seamless for people in these different countries to make payments to each other with the same ease and cost as that of a domestic transaction. SEPA is approved and regulated by the European Payment Council (EPC) for use across 27 European Union countries and nine other European countries where Euro is common. History of SEPA --------------- The EU passed the Payments Services Directive In 2007, forming the legal basis for the establishment of SEPA the next year. SEPA was completely active for credit and debit payments in the Euro area by 2014. By 2016, it was fully implemented in the non-Euro area of SEPA countries as well. SEPA was launched by the EU banking and payments industry with support from the European Commission, the Eurosystem, national governments, and various public authorities.  The legal framework of SEPA was drawn with the help of the ECB in close cooperation with the European Commission and is mainly based on the Payment Service Directive (PSD/PSD2), the Cross-Border Payments Regulation, the Interchange Fee Regulation, and the SEPA Migration End-Date Regulation.  In 2019, the European Commission forbade banks belonging to non-Euro European Union countries from charging extra fees for cross-border transactions. The new rule in place states that everyone in the European Union can transfer Euros across countries at the same cost as they would incur for a domestic transaction.  The rule also mandates that customers are informed of the cost of a currency conversion while making a payment in a different currency. ### Significance of SEPA Single Euro Payments Area (SEPA) payments enable its customers to make cashless Euro payments anywhere in the European Union and some non-EU countries as well, in a safe, fast, and efficient manner, that too with the ease of making domestic payments.  The payment integration enabled by SEPA has brought new heights to the competitiveness and efficiency of the European economy by removing any differences between cross-border and national payments by harmonising the payment standards between all the SEPA countries. SEPA helped establish the Euro as a single currency and also harmonised the way non-cash Euro transactions take place. The SEPA project was crucial for the Eurosystem. How does SEPA work? ------------------- The primary purpose of SEPA payments is to make electronic payments between two countries as cheap and easy as it generally is within one country.  SEPA payments greatly help with economic integration and labour mobility among SEPA countries as it makes it easy for retail transactions to directly debit accounts in another SEPA country and makes the life of those working, living, or travelling in foreign countries easier by allowing them to use their accounts in their home country to receive direct deposit payments and pay bills through cashless transfers.  The system also brings down prices by forcing more competition into the payments industry, as now there’s a single market for payment services. There are four payment processing schemes in SEPA: * **SEPA Credit Transfer (SCT)** * **SEPA Instant Credit Transfer (SCT inst)** * **SEPA Direct Credit Core (SDD Core)** ** * SEPA Direct Debit Business-to-Business (SDD B2B) **** The implementation guidelines and rules of how SEPA nations regulate cashless Euro payments amongst themselves are set by these schemes. SEPA currently operates in 36 member countries and facilitates over 43 billion transactions per year. Which countries are a part of SEPA? ----------------------------------- ** ![Which-countries-are-a-part-of-SEPA](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/single-euro-payment-area-sepa-explained-21-1671445704163-compressed.jpg) **The SEPA countries consist of the 27 European Union members along with the United Kingdom, Norway, Iceland, Liechtenstein, Andorra, Vatican City, Switzerland, San Marino, and Monaco. In total, there are 36 members of SEPA.pu** ** SEPA remains a collaborative, ongoing initiative among the SEPA countries in 2022 and is managed by the European Payments Council in collaboration with the European Central Bank, the European Commission, and other European stakeholders. Is SEPA only for Euro? ---------------------- **** SEPA payments only cover payments made in Euro and are not a replacement for all other types of payment methods in the SEPA countries, especially not the transactions that are carried in currencies other than the Euro. Non-Euro domestic and international transactions still exist and use different payment schemes. We do hope this article has helped you understand Single Euro Payments Area (SEPA) in complete detail! Want to read up more such informative articles about the world of international payments?  The [Salt blog](https://www.salt.pe/blog) is just the place for you! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Early Mistakes That First Time Founders Make In Starting Up Author: Ankit Parasher Published: 2022-12-03 Meta Title: Early Mistakes That First Time Founders Make In Starting Up Meta Description: When starting a new business, it's important to stay upbeat but not at the expense of being realistic. Here’s a list of early mistakes first time founders make. Tags: startup founders, New business, startup funding, early mistakes by founders, starting up , common mistakes by founders , first time founders URL: https://salt.pe/blog/Early-Mistakes-That-First-Time-Founders-Make When starting a new business, it's important to stay upbeat but not at the expense of being realistic. Here’s a list of early mistakes first time founders make.  ![Common-Mistakes-By-Startup-Founders](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/early-mistakes-first-time-founders-make-1670054077777-compressed.png) New entrepreneurs are committed to building a better future driven by better ideas. They have the drive and tenacity to enter the market and fight off the ghosts of failure and defeat. They are prepared to launch a firm. They commit numerous errors. In the process, they frequently commit the same biggest mistakes first time founders have made over the years.  So, what are the early mistakes first time founders have been making? Let’s find out in this post, so you know to avoid these common errors:  When launching a firm, disregarding market risk: ------------------------------------------------ The biggest cause of business failure is disregarding or minimising market risk. Most entrepreneurs focus too much on developing their technological foundations and need to be more on ensuring they add value to the company. As stated in [America's Most Successful Firms: Lessons for Entrepreneurs by Max Finger and Oliver Samwer](https://www.goodreads.com/book/show/18234857-america-s-most-successful-startups), however, "Many startups burn a lot of money with a product or technology hunting for a solution." An improved strategy is to spend six months talking to prospective clients to ascertain their needs and confirm your concept. Figuring out what advice is useful and what to discard: ------------------------------------------------------- Most insightful people are in great demand, whilst those with lots of time to give counsel frequently only have very little to offer. Keep the source in mind when receiving advice and balance your reaction accordingly. Going too quickly: ------------------ The majority of startup critics advise going quickly to capture the market first, stockpiling the best talent, and moving forward at full speed while pouring money into the boiler. However, too-rapid expansion causes significantly more business failures. When the corporation knows what the customer wants, it is wise to conserve capital.  Hiring the incorrect group:  ---------------------------- Among the biggest mistakes first time founders make, this one is pretty prominent. The majority of new business owners need better hiring decisions. Depending on their engagement, introspection, and pattern detection, two people can work side by side at the same organisation and end up with drastically different degrees of experience. Sorting the pile based on the firm's needs, and not the most eye-catching resumes, is crucial. Underestimating how difficult seed funding is: ---------------------------------------------- Because it's not very difficult to raise seed money, founders shouldn't take pride that a popular seed fund has invested. Very few businesses have succeeded simply because their cap table contained the correct names. Underestimating how difficult it is to obtain Series money:  ------------------------------------------------------------ The Series A funding milestone is where the founder can finally stop bootstrapping and begin implementing their concept. Additionally, it heralds the start of a partnership essential to the development of the company: a VC partner. To secure Series A funding, founders must significantly step up their game. Mental exhaustion: ------------------ Founders experience extreme pressure. That makes sense, considering that many of them put in 80 or more hours a week and can't sleep through the night without waking up in a cold sweat. They frequently experience overwork, loneliness, and stress, which harms their ability to be creative and analytical but which they frequently are unaware of until it is too late. To keep the inevitable disappointments from spiralling into crises, founders need a solid foundation—something to care about that is unrelated to their business. Pre-funding compliance:  ------------------------ ### Observing the Registrar of Companies' requirements: According to the [Companies Act 2013](https://www.mca.gov.in/Ministry/pdf/CompaniesAct2013.pdf), a private limited company may offer its shares through a Preferential Allotment of Shares to obtain money, either within India or outside India. It is the simplest way to raise money and the company's share capital. ### How to run a board meeting: All board members must be notified at least seven days before the scheduled meeting. The meeting will cover the following topics:- * **Taking into account the valuation report.** * **The choice to be made concerning the list of recipients.** * **The selection of the offer duration.** * **A bank account must be opened with a Scheduled bank to receive the funds.** * **Completing the offer letter's draught.** * **It must decide the Extraordinary General Meeting's day, date, location, and hour.** * **Completing the accompanying Explanatory Statement and the EGM notification.** ### **Organising a Special General Meeting:** **The Special Resolution respecting the Preferential Allotment is the main purpose of the EGM. The Special Resolution is in effect for a year. The certified authentic copy of the Special Resolution and a justification statement are enclosed with the private placement offer and forwarded to the allocators.** ### **Issue of Letters of Offer:** **Following approval, the prospective allottees must receive the private placement offer letter and application in writing or electronically within 30 days. The Registrar of Companies must receive a detailed record of the preferential allotment. After this, the company can then start receiving money from the investors.** **Post Funding Compliance:** ---------------------------- ### Distribution of Shares: **After the securities are allowed, the Registrar of Companies must receive a Return of Allotment within 30 days. After receiving the payment for allocating shares, the allottees should receive the securities sixty days later.**  ** ### Certificates of Shares are issued: The allottees will receive the share certificates, formally representing the company's shareholders. However, there are a few additional complications to be observed by the recommendations provided by the Reserve Bank of India if the investor is a foreign investor. **** And that was our list of the biggest mistakes first time founders make usually. Of course, no one has the secret to be an extremely successful first-time founder.  But if they can steer clear of these aforementioned blunders and reduce the risk on their company's future course, their chances of realising that vision to bring change to the world around them does significantly rise.  Here are [5 Candid Advice from VCs To All Early Stage Founders](https://write.superblog.ai/sites/supername/salt/posts/untitled-draft-post-clb7ht3il322951ml59eceyknu/5 Candid Advice from VCs To All Early Stage Founders) with actionable tips. ​ ** ** Salt is a neobank dedicated to making global banking easier and instantaneous for startups and small businesses in particular. Give [our website](https://www.salt.pe/) a visit today to find out more about us! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Flat Rate vs Hourly Rate - A guide for agencies Author: Ankit Parasher Published: 2022-11-29 Meta Title: Flat Rate vs Hourly Rate - A guide for agencies Meta Description: When billing customers and collecting payment for work, tactics are important. It can be challenging to decide whether hourly billing or flat-rate billing is better for your purposes. Tags: agency owner, flat rate, flat rate pricing , how to set pricing , guide for agency owners , hourly rate, hourly rate pricing , guide for agencies , agency client relationship URL: https://salt.pe/blog/flat-rate-vs-hourly-rate-guide-for-agencies Billing for your client is a routine activity, whether you're a freelancer, work for an agency, or own a small business. Every company operates uniquely, and the billing process is no different. Therefore, there are two options: hourly rate pay or flat payment. When billing customers and collecting payment for work, tactics are important. ![Flat-Rate-Or-Hourly-Rate-Which-Is-Better-For-Agencies](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/flat-rate-vs-hourly-rate-a-guide-for-agencies-1669866482076-compressed.png) It can be challenging to decide whether hourly billing or flat-rate billing is better for your purposes. Understanding the distinctions between each pricing system's specific benefits and drawbacks will enable you to choose the one that is best for you. But depending on how you accomplish your task, this procedure requires a variety of strategies. Some entrepreneurs and small business owners bill their customers hourly, while others just charge a fixed fee. The billing procedure is determined by convenience or job requirements. Everything you need to know about flat rate pay and hourly rate compensation is covered in this blog. Read down to see a comparison of flat-rate compensation vs. hourly rate pay! What is meant by a flat rate? ----------------------------- A flat fee is a set cost for the entire project. This pricing was determined before working with your client. When you offer flat-rate pay, you bill your customer a predetermined amount regardless of the volume of work they perform. This is a flat rate that is unaffected by the number of labor hours you contribute to the project. It's crucial for agencies, or if you work as a freelance writer, small businesses, to precisely estimate how much time and effort will be required for a project before providing a flat fee quote.  If your prediction is wrong and some project components take longer than anticipated, you won't get paid for the extra hours. You will be paid the same amount whether you work two hours or ten, no matter how many. For example, an advertising agency may charge a flat fee of $3,000 for the creation of a single advertisement campaign.  What is meant by the hourly rate? --------------------------------- When you bill by the hour for work on a project, you establish a base hourly fee. You can charge for the materials required to finish the project in addition to the time you spend on it. A service provider may charge an hourly rate for the work they do. It is typically employed when it is unclear how long a job might take. Since the agency pays the service provider on an hourly basis, there is a lot of room for changes or additions, should the agency so desire. For example, instead of a flat fee of $3,000, an advertising agency might charge $100 per hour for an advertising campaign.  Since you won't know the project's final cost until the end, hourly invoicing makes it more difficult for customers to forecast the cost of a project. Pros and Cons of Flat Rate Pricing - Agencies --------------------------------------------- ![Flat-Rate-Pricing-For-Agencies](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pros-cons-flat-rate-pricing-agencies-16-1669866535853-compressed.jpg) ### The Pros of Flat Rate Pricing Simplifies time tracking: To accurately bill the client while using hourly billing, you must keep thorough records of your time. However, with flat rate invoicing, it doesn't matter how many hours you put in; therefore, you don't need to keep track of your time for the client. Advantages of efficiency: flat rate pricing is an excellent way to position yourself for increased revenue and growth. sometimes without even exerting more effort. You are rewarded for your efficiency on a flat-rate job. The more quickly you can finish a project, the more money you can make. Therefore, your pay increases as you gain experience. Consider building a typical 7-page website for an [agency](https://www.salt.pe/blog/5-tips-for-not-becoming-just-another-digital-marketing-agency-ckzqnpsed136391llasumj824p). It costs $3,000 and requires 40 hours to complete. But as you get better at what you do and become more productive, it only takes you 30 hours.  Your typical hourly billable fee in the first case is about $75. In the second case, your hourly billing average is $100. In both cases, your fee is $3000. However, you're now making more money per website than you were before because of your efficiency. Tracking budgets becomes easy: businesses and agency owners can more easily arrange their budgets thanks to flat prices. A more systematic approach to managing overhead and inventories is beneficial. These pay systems give you predictability because you can foresee the volume of work completed, be it warranty repairs or other kinds of services. ### The Cons of Flat Rate Pricing The majority of the risk is borne by users. If you can control the risk, fixed-rate projects are acceptable. But if you don't have your documentation in order, there's a good chance the project could fail. Take the example of estimating a project will take 10 hours and charging a flat cost based on that estimate, but the project takes twenty hours. The extra ten hours you worked won't be reimbursed in any other way. More calculation is needed: You must carefully plan out how you'll spend your time in advance, estimate the cost of any necessary materials, and foresee any potential challenges or problems to come up with a fair proposal for flat-rate services. This might be a challenging assignment, especially for a new freelancer. Decline in quality - It's challenging to resist rushing when you might earn more by doing more tasks. When you aren't paid by the hour, it's typical to see people rushing through projects and taking shortcuts. To maintain the operations of their businesses, agencies may accept jobs at reduced rates. Because of the constrained project profit margins, there may be some cutting of corners. Pros and Cons of Hourly Rate Pricing - Agencies  ------------------------------------------------ ![Hourly-Rate-Pricing-By-Agencies](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pros-cons-hourly-rate-pricing-agencies-1669866634796-compressed.jpg) ### The Pros of Hourly Rate Pricing Receive funds for all your work: With hourly billing, your pay is based on the number of billable hours you put in. Thus, as opposed to fixed-rate billing, you don't incur the same danger of being underpaid. Comparison is made simpler: hourly rates are the most straightforward way to compare competing firms when customers are looking for a certain service. Given that fixed pricing does not always accurately reflect the cost of goods, this technique may make it easier for customers to understand your billing process. Low upfront costs: hourly billing may be more appealing to potential customers since, unlike fixed-rate billing, they are not required to pay a significant amount in advance. It allows agencies time to evaluate the customer's work and adjust compensation rates as necessary. ### The Cons of Flat Rate Pricing Tracking hours can be a challenge. It can be difficult to keep track of hours because there is no reliable way to do so when you charge by the hour. This calls for effective time management techniques and a reliable mechanism for tracking billable hours. Less pay for quicker work: If you use hourly billing, you could not get paid as much for working quickly and efficiently because working fewer hours results in less pay. Hourly charging is at the mercy of efficiency. For illustration, suppose a junior designer at your company spends five hours making mockups for a one-page website. But it requires two hours from your senior designer. Should your payment be reduced? You could temporarily fix the issue by raising your hourly fee. But this isn't always how it works. Even if you have the experience to support the price, the higher your hourly rate, the more difficult it may be for a client to accept the concept of using your firm. Which rate is better, the flat rate or the hourly rate? If a job takes longer than expected, flat rate pricing may result in you receiving less money overall than hourly rate billing. However, hourly charging necessitates an accurate system to monitor your project time management. If you bill by the hour, you can be paid less for services completed more quickly. Each pricing strategy has advantages and disadvantages. The "key" is to understand the value of your work and the risk you're taking. In this situation, the easiest method to define risk is to ask oneself, How precisely can I predict how long it will take to do this task for the client? For instance, after getting the customer to agree to all the project criteria, you may discover that they are still unclear about the work's scope. This can be the case if the project is extremely intricate or involves numerous moving elements. Asking yourself these questions will help you determine the value of your effort. ### The Best Option: Hybrid Rate  A hybrid rate is essentially a combination of hourly and fixed rates that have been tailored to your company's needs and circumstances. For instance, if you're installing a new boiler, you might charge a fixed rate because you've done it a hundred times before and know how long it should take. There's no reason you should have to pick between flat rate and hourly charging if you're an agency, freelancer, or business owner. How about combining the two? Review each of the services you provide one by one to develop a hybrid billing system. Think about which ones are better suited for flat-rate pricing and which ones are better suited for hourly billing.  The process of pitching yourself for client projects will be simpler and more standard if you create a pricing book for flat-rate services and decide on an hourly cost. Even better, you can create templates to greatly improve the efficiency of creating quotations and invoices. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is The Difference Between BRC and FIRC? Author: Ankit Parasher Published: 2022-11-29 Meta Title: What Is The Difference Between BRC and FIRC? Meta Description: Let's discuss how the two concepts- Bank Realisation Certificate and Foreign Inward Remittance Certificate- differ in this blog. Tags: How to acquire brc, How to get brc, BRC , receive international payments , international businesses, international payments , international clients, what is FIRC, international transactions, international customers, FIRC Vs BRC, Bank Realisation Certificate , How can you claim FIRC URL: https://salt.pe/blog/What-Is-The-Difference-Between-BRC-And-FIRC? Some people enquire about the meaning of the [Foreign Inward Remittance Certificate (FIRC)](https://www.salt.pe/blog/foreign-inward-remittance-certificate-explained), the Bank Realisation Certificate (BRC), and the differences between the Bank Realisation Certificate and the Foreign Inward Remittance Certificate. Both are, strictly speaking, certificates that the authorised dealer bank issues to clients to accept payments from other countries. An approved bank gives both the BRC and FIRC to clients who receive money or conduct business abroad.  ![Difference-between-FIRC-and-BRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-the-difference-between-brc-and-firc-1669728305433-compressed.jpg) Now let's compare the two ideas in this blog. Bank Realisation Certificate (BRC) ---------------------------------- A Bank Realisation Certificate (BRC) is a document that serves as verification of a company's international exporting activities. This paper is essential for a client who wishes to trade benefits under the foreign trade policy in India. The DGFT, RBI, FEMA, Customs, and other departments of the Indian government oversee commerce.  Foreign Inward Remittance Certificate (FIRC)  --------------------------------------------- The word "FIRC" may have come up when money is sent from other nations to India using online payment methods like PayPal. The approved bank in India that receives the money makes a FIRC request. It is a security document that serves as documentation for remittances that enter India. This document can be used as proof by a receiver in India who gets money through their business or a cash transfer from abroad. This certificate is crucial if you want to receive cross border payments from another country. A document known as a Foreign Inward Remittance Certificate (FIRC) is used to show a cross border payment has been received in India. Beneficiaries who receive inward remittances in India must have this certificate. Most statutory bodies view it as documentary evidence demonstrating the validity of the foreign cash the beneficiary received.  The RBI and FEDAI (Foreign Exchange Dealers Association of India) regulations limit the granting of FIRCs in India to Authorised Dealer Category I (AD) institutions. Learn in detail [why ​R](https://write.superblog.ai/sites/supername/salt/posts/untitled-draft-post-clb1t0ebe08001jmnbo5tow53/RBI needs BRC and FIRC In Your International Transactions.)[BI needs BRC and FIRC In Your International Transactions](https://www.salt.pe/blog/why-rbi-needs-brc-and-firc-in-your-international-business-cl8lbadip51311kp68apurooy). Where are the BRC and FIRC used? -------------------------------- A bank often issues BRCs to its clients engaged in the export industry with each shipment of export revenues. Numerous organisations that promote exports offer incentives, exemptions from import duties, and other forms of financial support to exporters. To obtain these incentives, exporters must submit export documentation as required by these authorities. In addition to the copy of the shipping bill, the carrier's Mate Receipt, and the customs-authorised ARE-1, further evidence of exports includes the Bank Realisation Certificate (BRC) provided by the particular bank that received the exporter's foreign payment. FIRC and its issuance are primarily subject to the control of two organisations, namely: * **Reserve Bank of India (RBI)** * **Foreign Exchange Dealers Association of India (FEDAI)** **When beneficiaries receive an overseas payment from a country other than India, only an authorised dealer may credit it to the beneficiary's account, according to the Reserve Bank of India (RBI) and the Foreign Exchange Dealers Association of India (FEDAI).** An authorised dealer is a person or business that has received authorisation from the Reserve Bank of India to conduct transactions in foreign money or foreign securities following the Foreign Exchange Management Act (FEMA). If the beneficiary's bank is not an AD, the inbound remittance is sent to the recipient's account through an approved dealer. Based on the information supplied by the receiver upon receipt of money, the AD banker will issue a FIRC describing the purpose of receipt, such as towards equity investment, advance against export of services or commodities, capital expenditure, etc. ### **How to acquire BRC?** **Below are the steps to claim your BRC certificate online:** * **Visit the [DGFT website](https://www.dgft.gov.in/) and sign up for an account on the eBRC programme.** * **To upload the file, select the BRC upload option. Please choose the appropriate file from the file system and then upload it.** * **The server will present the results in either XML or tabular format, depending on the user's preferences, once the user and data have been confirmed.** * **To take advantage of the export incentives, provide eBRC as evidence of export.** * **When exporting services, submit the eBRC with an integrated GST or input tax credit refund application.** **How Can You Claim FIRC?** --------------------------- **The FIRC can be claimed by visiting the bank itself.** **The following information about the transaction must be included in a letter to the bank to seek a FIRC:** ![FIRC-Details-required](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/firc-letter-15-1669728373631-compressed.jpg) ​ **The issuance of the FIRC, which will be sent physically or electronically, must then be paid for by the receiver.** **Some more differences between BRC and FIRC** ---------------------------------------------- **Many may still need clarification on the distinction between the FIRC and the BRC, which is usually ambiguous. However, the following differences may help you understand the same clearly.** ** * The beneficiary's AD institutions provide BRC and Foreign Inward Remittance certificates to customers who receive cross border payments. * The beneficiary's bank specifically issues the Bank Realisation Certificate in conjunction with the export of goods. Each time an export revenue shipment is made, the bank releases a BRC. * The bank issues a Foreign Inward Remittance Certificate and accepts foreign payments. This amount may be used as export compensation or as a down payment for air or sea freight. Even payment for advisory services is a possibility. **** How Salt helps you procure FIRC? -------------------------------- As was already indicated, the FIRC is also quite significant in terms of inward remittances received in India. Therefore, it is vital and imperative for the beneficiaries to follow up with the banks and get their FIRC issued as soon as possible after the inward remittance has been credited. Users of Salt can get FIRC for inward remittances received through us. [Register right now](https://salt.pe/) to avail our neobanking services! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Manage Risks of Your International Transactions? Author: Ankit Parasher Published: 2022-11-22 Tags: receive international payments , accept international payments , Managing international clients, international payments , international clients, FIRC, international transactions URL: https://salt.pe/blog/How To Manage Risks of Your International Transactions The risks and rewards of international transactions don’t come without a cost to any organization. There’s the foreign currency risk, there’s political risks, among the many other threats to firms involved in international financing. Because of these factors, it can get difficult for certain businesses to maintain a steady flow of income at all times. This post will discuss ways businesses might mitigate the effects of the dangers inherent in doing business on a global scale. ![Risk-Mitigation-of-International-Transactions ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-manage-risks-of-your-international-transactions-1669123646852-compressed.png) First - What are International Transactions? -------------------------------------------- international transactions are a [cross-border](https://www.salt.pe/blog/the-cross-border-payments-landscape-in-india) commercial arrangement or credit operation that must be settled in a foreign currency. Investments are often made by businesses in purchasing, selling, or leasing physical or intangible property; lending or borrowing money; or any other transaction that may affect the relevant businesses' earnings, income, losses, or assets. All of these transactions quality as international transactions.  The transaction, and frankly the concept as a whole, exists because of an understanding between businesses that are connected in some way. And with that, comes risk. Let’s start with one of the most important risk factors in such engagements. Foreign Currency Transaction Risk --------------------------------- Transaction risk is the potential negative impact of unfavorable changes in foreign currency rates on a closed transaction before settlement. This is the risk of a fluctuating exchange rate or currency that arises from the lag time between making a transactional commitment and having it finalized. It represents a kind of foreign exchange risk. When more time passes between the start of a contract or trade and its transaction, the potential for loss increases. Derivatives, such as futures and options contracts, are used to hedge transaction risk by reducing exposure to fluctuations in the value of one currency relative to another over a short period. How to Manage Transactional Risk -------------------------------- Central banks, particularly investment banks, engage in many currency transactions daily, which provide valuable clues. These financial institutions have established procedures to reduce exposure to transactional risk. Credit and market risks are often coordinated with them, and control over the complete risk management infrastructure is vested in a single authority figure. Although there isn't always agreement on who in the company is responsible for assessing transactional risk, it's usually someone in the credit or country risk departments. Generally, banks will give a country rating that accounts for the whole scope of risks involved with lending in that country's currency, domestically and internationally. To emphasize, these ratings, notably the "transactional risk rating," play a significant role in defining the ceiling and exposure limitations for each market, taking into account the policies of the firms involved. How to Mitigate Transaction Risk -------------------------------- Banks with transactional risk use money market and capital market products to hedge, such as currency swaps, futures, options, etc. Each hedging technique has pros and cons, and companies choose the appropriate instrument to cover their currency risk. Using a forward contract [FIRC](https://www.salt.pe/blog/foreign-inward-remittance-certificate-explained), let's try to grasp a company's risk minimization. A company may fix the contract time rate and resolve it at the same rate. This ensures the firm's financial flow. This reduces rate volatility and improves decision-making. A corporation may also enter a futures contract agreeing to buy/sell a particular currency; futures are more reputable and heavily controlled by the market, avoiding default. Options hedging is a fantastic technique to hedge rate risks since it requires less upfront capital and reduces adverse risk. Here are five strategies for lowering the international downsides of doing business abroad. ![Risk-Mitigation-of-international-transaction](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/transaction-risk-15-1669123703272-compressed.jpg) ### 1\. Take it easy at first Don't go into major international deals without first testing the waters. Begin with a tiny purchase or sale to gauge the other party's reliability. ### 2\. Carry out your homework Have you taken the rudimentary steps to verify your International clients or partners financial stability? We highly recommend that you stop by their office. ### 3\. Make use of secure International Payments options. It would help if you took precautions unless your connection for International Payments with your foreign partner has been long-standing and secure. National Bank is here to advise you on the safest and most convenient option. Letters of credit and advance payments may be arranged. ### 4\. Form a meaningful relationship The value of a reliable and trustworthy business connection cannot be overstated. Investing in solid relationships with your business's allies and customers is essential. You might have the most ironclad contract in the world, but if you don't know and trust your International Customers, they can decide they don't want to pay. Advantages of Transaction Risk Management ----------------------------------------- Effective transaction risk management contributes to a culture that fosters sound risk management practices across the board. The following are elements of, and should be promoted by, a solid transaction risk reduction program: * **An in-depth review by the powers-that-be** * **Various market exposure and risk policies monitor political unrest in various countries.** * **Currency-denominated assets and debts should be subjected to regular historical simulations.** * **Regulation of the economy to keep things in order across markets** * **Consistent auditing and internal control procedures** **Conclusion** -------------- **There is a risk of transaction for each transaction that anticipates receiving cash from a deal when the amount received might fluctuate wildly. There is often a safe and sound system in place at most institutions to deal with transactional risk. However, the Asian Crisis taught us the need to maintain a healthy equilibrium between credit and liquidity.** **If your organization is vulnerable to foreign exchange fluctuations, you must establish a fair tolerance threshold and clearly define what constitutes severe exposure. Detail the processes and policies, and then cautiously put them into effect.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Are Foreign Inward Remittances Taxed In India? [2023 Update] Author: Sudhanshu Choudhary Published: 2022-11-22 Category: Inward Remittance Meta Title: How Are Foreign Inward Remittance Taxed In India Meta Description: You need information if you intend to transact internationally. You may find all the answers you need regarding tax remittance. Tags: Foreign Inward Remittance, Inward remittances, international money transfer, receive payments from abroad, Inward Remittance URL: https://salt.pe/blog/how-are-foreign-inward-remittance-taxed-in-india You need information if you intend to send money abroad. You may find all the answers you need regarding tax remittance. ![Foreign-Inward-Remittance-Taxation-In-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-are-foreign-inward-remittances-taxed-in-india-1669104158810-compressed.png) There’s likely to be many reasons you may need to send cross-border payments to India from abroad. But is sending them funds through international money transfers acceptable legally? How much money can you send in the form of inward remittances? What's more, will you or they be subjected to any financial obligations in the form of taxes?  Contents * [How Do Foreign Inward Remittance Get Taxed In India?](#how-do-foreign-inward-remittance-get-taxed-in-india) * [What factors might affect whether your money transfer is taxed?](#what-factors-might-affect-whether-your-money-transfer-is-taxed) * [The funds' source:](#the-funds-source)  * [The two nations' tax regulations:](#the-two-nations-tax-regulations) * [Money transferred: Does your transfer amount surpass the country's tax threshold?](#money-transferred-does-your-transfer-amount-surpass-the-countrys-tax-threshold) * [When is the money sent to someone in India from a foreign country taxable?](#when-is-the-money-sent-to-someone-in-india-from-a-foreign-country-taxable) * [How much money can be sent as inward remittance to India annually for personal purposes?](#how-much-money-can-be-sent-as-inward-remittance-to-india-annually-for-personal-purposes) * [What kind of tax may be charged on inward remittances?](#what-kind-of-tax-may-be-charged-on-inward-remittances) * [Tax for sending money from the USA to India](#tax-for-sending-money-from-the-usa-to-india) * [Tax for sending money from the UK to India](#tax-for-sending-money-from-the-uk-to-india) * [RDA, MTSS, and differences between the two](#rda-mtss-and-differences-between-the-two) * [Transfer Charge](#transfer-charge) * [Conclusion](#conclusion)  * [FAQs​](#faqs) * [For what reasons can you send money?](#for-what-reasons-can-you-send-money) * [What documents are needed?](#what-documents-are-needed) * [How long will it take?](#how-long-will-it-take) * [How may the funds be transferred?](#how-may-the-funds-be-transferred)  Here is everything you need to know about the regulations in India governing [inward remittances](https://www.salt.pe/blog/fema-guidelines-for-foreign-inward-remittance). ![Inward-Remittance-Definition](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/inward-remittance-14-1669104238777-compressed.jpg) How Do Foreign Inward Remittance Get Taxed In India? ---------------------------------------------------- The money one receives in an Indian bank account from abroad is called an inward remittance, and foreign inward remittances come under the governance of the FEMA or the Foreign Exchange Management Act. [Foreign inward remittances will be tax-free in the following cases](https://economictimes.indiatimes.com/wealth/tax/money-relationships-what-are-the-tax-implications-if-my-daughter-sends-me-money-from-abroad/articleshow/87946315.cms): * If it is living expenses or financial support for someone * If the inward remittance is a gift * If it is for educational purposes * If the inward remittance is being sent for medical treatment * If the money is for travel expenses, investments, or donations Notably, the FEMA also specifies which family members can receive tax-free inward remittances in India * The sender’s legal spouse *  The sender’s siblings * The siblings of the sender’s spouse * The siblings of the sender’s parents  * Any of the legally accepted lineal ascendants or descendants of the sender * Any of the legally accepted lineal ascendants or descendants of the sender’s spouse * Any spouses of people belonging to the above categories If the inward remittance is sent to anyone other than these mentioned relatives, it will be taxed by the government as income if it goes above 50,000 rupees annually.  Further, there are inward remittances under Business payments received in India. Of course, any income earned as Business income, say in the form of consultancy service, is taxed in India. Business payments regarding good receipts are taxed post-deduction of all expenses.  [Money Transfer Service Scheme](https://rbidocs.rbi.org.in/rdocs/notification/PDFs/36647.pdf)  Personal inward remittances to India are permitted under the MTSS, including remittances for family support and remittances to foreign tourists visiting India from their families and friends overseas. Other types of remittances are not permitted, like contributions to nonprofit organizations, trade-related remittances, remittances for investments, or credit to NRE (Non-Residents External Accounts). A family is only permitted to receive **30 remittances** and **$2,500** in one calendar year. The Overseas Principal, or foreign money transfer companies, handle the financial transactions for the MTSS, while Indian agents deliver the money to India's beneficiaries at the current exchange rates. [Rate of TCS on foreign remittance](https://sbnri.com/blog/repatriation/how-nris-can-save-tcs-on-foreign-remittance) The current Income Tax regulations have specified rates for TCS collection on international remittance under the LRS. If a buyer presents a PAN card, TCS will be **deducted 5%** from any sum sent outside for any purpose under the plan; otherwise, the tax would be **applied at 10%** with a transaction amount threshold of I**NR 7 Lakhs.** However, tax is deducted at source at a rate of 0.5% on any funds transferred to repay a loan obtained from a bank to pay for education again with a threshold of the transaction amount of INR 7 Lakhs. Rates of TDS is **5%** if the loan is ‘not’ taken from financial institution. FurtherAgain, the TCS rate applied to the transaction is 5% if the person cannot present their PAN card.  Then there is the selling of international travel packages, where the purchaser is subject to either a 5% source tax or a 10% source tax. In contrast to the LRS, there is no minimum exemption threshold for the amount when a tour package is sold. Budget 2023 has changed the above rates. Currently, the TCS rate is raised from 5% to 20% on all remittances under LRS scheme on all remittance except education purposes with no threshold limits at all. Remittances for the purpose of education continues to be at 0.5% if taken from financial instution, 5% if taken from other sources. Incase PAN is not there, 20% becomes 40%, 0.5% becomes 5% and 5% changes to 10%.  It is pertinent to note that these are not taxes collected at source and the person can claim a refund if returns are duly filed.  Further, there is no limit on the amount of inward remittance made in case of business receipts.  What factors might affect whether your money transfer is taxed? --------------------------------------------------------------- Even if not all money transfers are taxed, it's still vital to be aware of the situations in which you may need to file a tax return and pay taxes to comply with the law. Of course, these elements can all vary based on your location and the recipient's location. ### The funds' source:  Are they coming from a pension, the sale of a residence abroad, or an inheritance fund? The source can significantly impact whether your money transfer is subject to tax. ### The two nations' tax regulations: Different nations have different tax laws, including rules on how much must be reported to the appropriate tax authorities and regulatory agencies to prove the funds were obtained legitimately. Money transferred: Does your transfer amount surpass the country's tax threshold? --------------------------------------------------------------------------------- In the case of Business payments, the same is governed by the laws of both countries. One must be vigilant of certain reportings in other jurisdictions, if applicable. In Inward remittance of a business nature, FIRC/FIRS must be obtained as proof of receipt.  When is the money sent to someone in India from a foreign country taxable? -------------------------------------------------------------------------- While there is no cap on the amount of money, you can send to your family, the nation you’re sending to may have regulations and restrictions on the highest amount you can send to India without being subject to tax. After a certain threshold, your sending country may start taxing money sent outside. How much money can be sent as inward remittance to India annually for personal purposes? ---------------------------------------------------------------------------------------- The amount of money you can send to your parents in India without taxation has no upper limit. Any money sent as a gift to any qualifying relative listed in the FEMA regulations is thought to be tax-free. However, suppose money is transferred to someone not on the list. In that case, they are regarded as non-relatives, and if the amount received exceeds Rs 50,000 in a year, it will be taxed as income. What kind of tax may be charged on inward remittances? ------------------------------------------------------ Individuals in India can receive an inward remittance in either a rupee drawing arrangement (RDA) or a money transfer service scheme (MTSS). Under the RDA, there is no limit on how much money can be sent overseas for personal purposes. Under MTSS, each inward remittance is restricted to $2500. Different fees apply to inward transfers. The price is determined by many variables, including the current exchange rate, correspondent bank fees, type of transfer, account type, and country of origin. The projected costs will be disclosed to you by your bank before the transaction is finalized. Similarly, Business payments can be received under OPGSP or SWIFT. A limit of $10,000 per transaction under OPGSP is usually used for smaller trade payments. SWIFT is used for larger payments, and it is moved through a financial institution. The cost associated with OPGSP is the conversion charges and issuance of FIRC charges. Cost with SWIFT can be SWIFT charges, Conversion Charges, Correspondent bank fees or any other charges depending upon the financial institution.  Tax for sending money from the USA to India ------------------------------------------- According to the IRS, if you live in the US and wish to send money as a gift to family members in India, you can do so up to $15,000 every year without paying taxes on the transfer. However, most gifts over USD 15,000 will result in a tax event.  Tax for sending money from the UK to India ------------------------------------------ Under the yearly exemption, you can send gifts worth up to £3,000 to the UK during the fiscal year. Additionally, you are permitted to present gifts for weddings or civil ceremonies of up to £1,000 per person, £5,000 for children, and £2,500 for grandchildren or great-grandchildren. RDA, MTSS, and differences between the two ------------------------------------------ According to the Reserve Bank of India, there are two ways to receive inward remittances to India from the UK abroad: RDA and MTSS. RDA is typically only permitted for private accounts. Money transfers can also be made for business purposes up to a specific amount. The RDA does not allow cross-border money transfers from India to other countries; but permits remittances into India exclusively. Personal remittances to India are permitted under the MTSS, including remittances for family support and remittances to foreign tourists visiting India from their families and friends overseas. However, any other type of remittance, such as contributions to charitable trusts, remittances connected to trade, or remittances for purchasing real estate, is prohibited. Transfer Charge --------------- You should check with the bank for the fees associated with sending money overseas to your parents' bank account. Before the transaction is completed, the bank will let you know about the transfer fees. The price is determined by several variables, including the current exchange rate, the bank's fees, the nation from which the remittance is being made, the type of transfer, and the type of account, among others. ### Conclusion  In a nutshell, it depends. The amount you receive (large sums are more likely to be classified as income or gifts that may be taxable), the reason you're receiving the money (is it a foreign inheritance, a remittance payment from a family member abroad?), and the specific tax laws in your own country will all determine whether your international money transfer is taxable. FAQs​ ----- ### For what reasons can you send money? You can send money for visits abroad (aside from Nepal and Bhutan), gifts, donations, employment, emigration, maintaining close relatives, business travel, attending conferences or specialized training, medical expenses or check-ups, or for going with a patient for treatment or a check-up; studies abroad; or any other current account transaction that isn't covered by the definition of the current account in FEMA 1999.        ### What documents are needed? You must submit the A2 cum LRS declaration form, identification and address proofs, and Permanent Account Number (PAN). You might also be required to submit particular documents, such as a passport, visa, ticket, invoices from the travel agency, or anything else the bank or transferring agency requests, depending on the purpose of the remittance. You must also provide Form 15CA and, in some situations, Form 15CB, a certificate from a chartered accountant proving the tax paid if you send money to a non-resident individual or a foreign business. ### How long will it take? The transfer can happen immediately or take up to 30 days, depending on your payment method.  ### How may the funds be transferred?  Both online and offline methods of sending money are commonly provided by banks and private money transfer and exchange firms. Watch this youtube video on [How is inward remittance taxed in India](https://youtu.be/RveNhtBo7_8). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Figure out These 10 KPIs Before Pitching Your Startup Author: Ankit Parasher Published: 2022-11-04 Meta Title: Figure out These 10 KPIs Before Pitching Your Startup Meta Description: If you're a founder fundraising for your startup, do not miss these 10 KPIs before pitching your startup to investors and VCs. Tags: KPI, Key Performance Indicators, KPIs for early stage startup , KPIs for founders , KPIs befor fundraising , KPIs for startup founders URL: https://salt.pe/blog/10-KPIs-Before-Pitching-Your-Startup ![KPI-for-startups](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/kpi-pitching-startup-12-1667537456054-compressed.jpg) Key performance indicators or KPIs are quantifiable metrics that assist businesses in assessing how successfully they are reaching their objectives. By dividing things into manageable goals, key performance indicators can keep initiatives on track and keep enormous goals from seeming overwhelming. Choosing your key performance indicators carefully will help you stay focused and productive.  In this post, we take a closer look at what KPIs are, and then discuss 10 KPIs you need to have figured out before [pitching your startup](https://www.salt.pe/blog/essentials-to-keep-in-mind-while-creating-deck-for-foreign-investors-cl24j15p2156551knhns5lzkj9). What is a Key Performance Indicator and why is it important for any startup? ---------------------------------------------------------------------------- Key performance indicators are a great way to track progress towards a certain objective. KPIs provide benchmarks to measure progress, goals for teams to work towards, and core insights that help people all around the organisation make better decisions. Using key performance indicators will enable startups to likewie monitor their progress and determine whether their current efforts are yielding the desired results. If you don't monitor key performance indicators, all of your decisions will be influenced more by your personal preferences than by facts. You can build your startup and steer it in the correct direction by using key performance indicators to help you make smart, data-driven decisions.  Now that we know what KPIs are, the significance of each key performance indicator should also be understood, rather than just knowing the names of the indicators themselves. What are the 10 Key Performance Indicators Any Startup Should Follow? --------------------------------------------------------------------- ![10-KPIs-For-Startup-Founders](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/10kpis-13-1667537582056-compressed.jpg) Here is a list of KPIs you should figure out as a startup before presenting a pitch: * ### Cost of acquiring new clients: **The cost of acquiring a new customer (CAC) is arguably the most significant key performance indicator for startups. You may figure it out by totaling up all of the money you spent over a specific time period on bringing in new clients, then dividing that total by the overall number of new clients you brought in. It is important to consider both your blended acquisitions across all of your marketing channels, and your users acquired through paid channels.** * ### Active users each month (MAU):  **The total number of users actively utilising your product each month is referred to as the MAU. It provides a brief summary of your user growth. Additionally, it helps you understand how well your firm can draw in new customers and keep hold of current ones. You can swiftly respond to both good and negative changes in your consumer base by tracking MAU.** * ### **Lifetime worth of the client (LTV):** **The lifetime value (LTV) of a customer is the entire amount of money they will spend with you on your goods or services. You can't tell if you're overspending to attract customers or if you are ultimately losing money if you don't measure your LTV. You can choose to concentrate on historic LTV, which is based on actual purchases, or predictive LTV, which is based on what you anticipate customers will spend.** ** * ### Recovery time for CAC: This KPI counts the number of months it takes for a customer to generate enough net income to pay the CAC. Cash flow and runway are directly impacted by the time to recover CAC. While overhead measures the company's fixed expenses incurred regardless of the number of customers acquired, CAC measures the variable costs related to customer acquisition. ** * ### **Salary** **This is arguably the biggest expense any startup has, and therefore it’s also one of the most important KPIs you need to monitor. Potential investors would want to see whether you pay lower than average salaries (which might raise questions regarding employee-retention) or more than average salaries (which could decrease your startup’s runway super quickly).** * ### **Money Runway:** **Any startup's survival depends on its ability to keep a sharp focus on the runway. Runway is a word used to represent how many months remain until the business runs out of funds. By dividing residual cash by monthly burn, the runway is calculated. Entrepreneurs that have limited runways tend to be myopic and unable to make essential adjustments. Additionally, it forces them to give almost immediate attention to the next round of fundraising rather than expanding the business.** * ### **Amount of goods sold in gross (GMV):**  **GMV can be a helpful key performance indicator. GMV, or gross merchandise value, is the total amount paid for products or services that were bought online. However, some companies discover that their revenue may not be the most accurate predictor of their financial performance. This is particularly true for markets where revenue only accounts for a small share of total transactions.** * ### **Client turnover rate (CCR):** **CCR can be used to determine how quickly customers are leaving your startup. It is determined by dividing the overall number of consumers who stop doing business with you during a given period of time by the overall number of clients you had during that same time. It is essential to comprehend the state of your startup. Additionally, it may be used to spot changes that either make it easier or harder for your firm to keep clients.** * ### **Rate of revenue growth:** **How well your startup grows its revenue over a specific time period is indicated by its revenue growth rate, e.g., a month, quarter, or year. Subtract the revenue generated in the current period from the revenue of the prior period to arrive at the calculation. Then, multiply the outcome by 100 after dividing it by the current period's revenue.** ** * ### Retention of customers: Getting new clients is critical, but keeping them is even more crucial. The percentage of paying customers who continue to be paying customers over time is known as your customer retention rate. Churn, or the proportion of clients you lose in a specific time period, is the opposite of retention rate. When a corporation has a sticky product and is keeping its customers satisfied, we see strong retention rates over a deterministic time period. This also serves as a measure of capital effectiveness. Conclusion:   ------------- Key Performance Indicators connect your culture and purpose by uniting employees towards a single objective, as KPIs are a useful approach to gauge and monitor a startup’s performance on a number of distinct parameters. Managers may better optimise the company for long-term success by knowing exactly what key performance indicators are and how to use them properly.  Salt is a neobanking solution, on a mission to make business banking easier than ever for you by simplifying cross border payments. Give [our website](https://www.salt.pe/) a visit today to learn more about us! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Does SWIFT Payments Work? - International Money Transfer Network Author: Sudhanshu Choudhary Published: 2022-10-25 Meta Title: How Doe SWIFT Payments Work? - International Money Transfer Network Meta Description: The large network of financial institutions globally requires specific ways of recognition so that they can authorise transactions when initiated from a source at the other end of the world. This is where SWIFT codes come into play. Tags: swift code, international money transfer, cross border payments, swift payments, SWIFT network, SWIFT Infrastructure, SWIFT system , what is SWIFT, Challenges in SWIFT payments , cross border transaction URL: https://salt.pe/blog/how-does-swift-payment-works ![SWIFT-system](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/swift-money-1666693577918-compressed.png) Under centralised financial frameworks, international money transfers usually occur through banks and other such financial institutions. The large network of financial institutions globally requires specific ways of recognition so that they can authorise transactions when initiated from a source at the other end of the world. This is where SWIFT codes come into play. A [SWIFT code](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) is the method of recognition generally used by banks as a Bank Identifier code. The SWIFT network assigns every bank or other financial institution a specific code that can be used to recognise where the transaction request and information is coming from. It is very essential in cross border transactions through the SWIFT network, as banks use it to verify whether or not the transaction initiated is legitimate. The SWIFT code has an important purpose in the banking industry, which you might not be aware of. Let’s see how the SWIFT system facilitates international money transfers, shall we? What Are SWIFT Payments?  ------------------------- We introduced you to what a SWIFT code does, and how it came into existence and how payments get completed through the SWIFT network is what we will be discussing next.  SWIFT is an acronym for the Society for Worldwide Interbank Financial Telecommunications. As the name suggests, it is a method for banks and financial institutions to stay connected for sending and receiving financial information. The SWIFT system can help with verifying the bank and specific account location of the participants in a transaction. It is a vast network of more than [11,000 members currently](https://www.swift.com/join-swift/swift-usership#:~:text=Over%2011%2C000%20SWIFT%20customers%20in,securely%20and%20reliably%20every%20day.).  The SWIFT system is important for all sorts of international banking solutions. Whether sending inward remittances from another country or doing cross border transactions for startup funding or business payments, they can all go through the same banking system which requires a SWIFT code to verify the transaction. Each member has to pay a joining fee to be allocated this code. Apart from that, SWIFT also charges the members for the messages and information transfer that takes place through it.  How Does SWIFT Payments Work? ----------------------------- ![SWIFT-PAYMENT-DIAGRAM](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-does-swift-payment-11-1667536743319-compressed.jpg) A SWIFT code is generally of 8 to 11 digits; the first four characters are the institute code, the next two are the country code, and the next two characters allocate the city or location of the bank. Lastly, three optional characters might also be used by banks at the end to specify the branch of that bank.  SWIFT offers various services related to international money transfers, such as instructions matching for forex transactions, payment processing instructions between banks, settlement of derivative transactions, etc. Apart from the interconnectivity, SWIFT has also started to provide business analytics for member institutions and compliance services.  How Long Do SWIFT Payments Take?  --------------------------------- During the initial days, SWIFT had significantly fewer members, and thus international money transfers took a lot of time. Now, with the help of better communication technologies, SWIFT payments usually take 2 to 5 business days if all things go smoothly. Traditional banks can choose to facilitate cross border transactions without using the SWIFT payment method, but it will take nearly thrice as much time to allocate the funds to the recipient's address. The SWIFT payment network is much more effective and fast.  ### Challenges Relating to SWIFT The SWIFT network is, of course, not without its issues. Challenges the network faces include: * **The biggest issue SWIFT faces is the lack of automation of transaction entries. With the growing community, the organisation requires proper automation through software to add all the details related to the transaction to the ledger. Currently, it is not the case, and thus SWIFT is facing it as an issue.**  * **The SWIFT network is overseen by the central banking institutions in G10 countries, which makes it hard for the whole organisation to stay neutral to any major socio-political or economic events around the world.**  **Conclusion**  --------------- **We do hope this post has been informative enough to help you understand how SWIFT makes international transactions easier. We can easily conclude that the SWIFT network is a necessary organisation for international money transfers and being affiliated with this organisation makes traditional banks and other financial institutions offer faster cross country transactions related solutions to their customers.**  **Salt is a business banking solution dedicated to facilitating smoother and faster cross border transactions. Interested in learning more about what we do, and doing international money transfers with us? Give [our website](https://salt.pe/) a visit today!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to make SWIFT money transfers to India? - International Money Transfer Author: Ankit Parasher Published: 2022-10-17 Meta Title: How to make SWIFT money transfers to India? - International Money Transfer Meta Description: SWIFT offers various services related to international money transfers, such as instructions matching for forex transactions, payment processing instructions between banks, settlement of derivative transactions, etc. Tags: swift code, international money transfer, SWIFT network, SWIFT system , what is SWIFT, IBAN Code, Money transfer to India, cross border transfer , cross border banking , SWIFT money , SWIFT interntaional, cross border trasnaction URL: https://salt.pe/blog/SWIFT-Money-Transfers-To-India ![SWIFT-International-Money-Transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/swift-money-1666694482724-compressed.png) When it comes to cross border payments, people from all across the globe have been looking for a safe and secure way to transfer their funds as international trade develops. An intermediary institution is frequently needed in international money transfers for banks and other financial institutions to make sure everything proceeds as planned. This is where the SWIFT network comes into play.  If you want to send inward remittances to India, have you ever wondered how to accomplish that with minimum complications? Here’s your guide to SWIFT international money transfers to India! What are SWIFT payments?  ------------------------- The Society for Worldwide Interbank Financial Telecommunications, or SWIFT, facilitates a payment technology that enables instantaneous messaging and secure communication on cross border payments among banks all over the world. The SWIFT system offers incredibly secure communications, and is able to integrate with the numerous and diverse activities of commercial banks in relation to international money transfers.  SWIFT was established back in 1973 in 15 countries and is currently operating [in over 200 countries, being over 11,000 consumers strong](https://www.swift.com/join-swift/swift-usership#:~:text=SWIFT%20usership%20means%20you%20can,securely%20and%20reliably%20every%20day.).  A [SWIFT code](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) is provided by the network to associated banks. The SWIFT code is like an international bank code or ID, it helps the financial institutions across the globe ensure that cross border payments are reaching the correct bank. A SWIFT code consists of 8 to 11 characters representing the city, country, bank, and branch. How to use IBAN code? --------------------- IBAN, which stands for International Bank Account Number, is a special identification code that banks use to handle cross border payments. It is utilised to avoid transcription errors and simplify getting account information for faster processing of international money transfers.  ![IBAN-COde](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/iban-number-1666694432140-compressed.png) An IBAN code contains a maximum of 34 characters. IBAN uniquely identifies a customer's account and bank information, and particularly the nation to which money is being delivered. It is an ISO-accredited system that has received SWIFT registration.  Keep in mind that the IBAN and the SWIFT codes are completely different codes. The IBAN or the International Bank Account Number is a particular individual’s unique bank account number registered with a cross border bank for international money transfers. The SWIFT code, on the other hand, identifies the exact location of a bank across the globe. ### Charges for SWIFT payments:  The bank you use will determine the SWIFT fees. The charge for using the SWIFT system is sometimes known as a transaction fee or a wire transfer fee. For outgoing transfers, each bank sets its own cost, which varies depending on the bank and the destination.  These rates could be exceedingly high with some banks. When you do international money transfers to an Indian bank, there may even be an additional hidden fee. You might notice this difference if you compare it to the exchange rate you receive from your bank. This is due to the fact that banks frequently dilute the currency rate they provide to you, so they may pocket a portion of the funds during currency conversion.  How long do SWIFT payments take? -------------------------------- In most circumstances, a SWIFT cross border payment to India can take 1–5 working days. Depending on where the money is coming from and leaving, the duration may vary. Additionally, your international money transfer may be cancelled if there are any errors in the transfer details. Salt rising to the cause for smooth cross border payments --------------------------------------------------------- Salt is a fintech with experience in international banking; we offer convenient international money transfers with services including multi-currency support, multi-currency bank account support, and more. With our cross border payments solutions, we offer up the delights of doing smooth business transactions around the globe for all kinds of organisations, including startups and SMEs.  Our neobanking solutions help businesses in India accept international money transfers super fast without incorporating their operations abroad, or paying high transaction charges.  Conclusion:  ------------ When it comes to international money transfers to India, traditional banks may choose to facilitate these services without registering with the SWIFT network. However, with its strong security aspect and fast services, the SWIFT payment system is definitely one of the most trusted options for cross border payments. We do hope this post has helped you learn about the workings of the SWIFT payment network, so when you are making an international money transfer to India, you know just how it is done with SWIFT.  Interested in doing business through Salt’s business banking services and trying seamless cross border payments? Give [our website](https://salt.pe/) a visit today! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is Interbank Rate Same As The Mid-market Rate? - No. Here's Why Author: Ankit Parasher Published: 2022-10-11 Meta Title: Is Interbank Rate Same As The Mid-market Rate? - No. Here's Why Meta Description: As a general rule of thumb, you should transfer money as closely as you can to the mid-market exchange rate if you want to save money on international money transfers. Tags: international money transfer, Mid Market Exchange Rate, Foreign Exchange, mid market rate, interbank rate, international currency URL: https://salt.pe/blog/interbank-rate-and-mid-market-exchange-rate ![difference-between-midmarket-and-interbank-rate](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/is-the-interbank-rate-same-as-midmarket-rate-1665474632811-compressed.png) You own a company that has grown to capture the entire world. In such a circumstance, you conduct regular business abroad. It could be necessary for you or the recipient to exchange one currency for another. Which currency rate should I use in this situation—the bank rate or the mid-market exchange rate? Also, how do you keep the costs low? To avoid any confusion, it is important to know whether the two rates listed above are the same or different in any way. If so, describe the differences and the operation of the exchange rate. The best option for your transaction with the lowest cost will be discussed at the conclusion. What is the mid-market rate? ---------------------------- The mid-market rate, often known as the middle or interbank rate, is the price at which banks exchange currencies. In many other senses, the mid-market exchange rate is the price that, at any given point in time, lies at the halfway point of the cost of buying and selling currencies. The mid-market rate of any currency pair is impacted by regional and global macroeconomic factors. Imports and exports, trade agreements, economic conditions, and a number of other factors are examples of these forces. ![what-is-mid-market-exchange-rate](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/mid-market-exchange-rate-09-1665474678964-compressed.jpg) See this page for more information on the [mid-market rate](https://www.salt.pe/blog/what-is-mid-market-exchange-rate). What is the interbank rate? --------------------------- The interbank rate, often referred to as the interbank exchange rate, is a concept in finance that refers to the foreign exchange rates that banks pay when they exchange currencies with other banks. The terms "between banks" or "interbank" refer to a bank's relationship with another bank. The interbank rates are implemented when money is sent to or [received from abroad](https://www.salt.pe/blog/how-to-receive-money-from-abroad-to-india) for transactions with banks of two different nations using foreign currencies. One factor making this rate so unpredictable is that it is often set by currency brokers. Other factors that affect the price include supply and demand, which is a subset of the bid-ask spread; domestic and international trade deficits or surpluses; local interest rates and inflation; levels of political and economic stability, or lack thereof; and the size of the national debt. What similarities exist between the two rates? ---------------------------------------------- ### **Different names with the same understanding** **The interbank rate and the mid-market exchange rate are comparable as the [mid-market rate](https://www.salt.pe/blog/what-is-mid-market-exchange-rate) is occasionally referred to as the interbank rate because banks are the main purchasers and dealers of currencies. This is the speed at which banks and other financial entities exchange money.** **Most of the time, when you search for exchange rates on Google, you will get a common rate. However, the rate may change when you trade with banks or other businesses because of their profit margins.** What are the noticeable differences? ------------------------------------ ### **Different conceptual understanding** **It is clear that the mid-market exchange rate is only the average of the asking and bid prices used to purchase and sell currencies; banks buy and sell currencies using interbank rates, which are the same as the mid-market rate.** **Although the terms interbank rate and midmarket have similar meanings, they are employed differently depending on the situation, the necessity, and the time and location of the transaction.** **How does the interbank rate/mid-market rate work?**  ------------------------------------------------------ **Banks and other financial institutions need to have enough reserves or funds in order to preserve liquidity for their customers' simple withdrawals. But if they get into trouble, they withdraw from other banks, which brings the lending bank additional revenue in the form of interest. This short-term lending's interest rate is determined by the interbank rate.** **From the perspective of the consumer, these rates are employed by them while engaging in an international transaction that involves buying and selling currencies. The currency rate is based on the mid market exchange rate there. This helps them in their [international business](https://www.salt.pe/blog/how-are-international-exchange-rates-determined) too.** **The federal rate is sometimes referred to as the interbank rate. The interest rate paid on the money kept by the banks is based on the current federal funds rate. The banks themselves determine this.** **Although it is not "established" by the Federal Reserve, the one rate that the Fed does set—the discount rate—has an impact on it.** **A federal funds rate that is low promotes bank lending and borrowing, whereas a rate that is high has the reverse impact. While these benefits are only available to financial institutions that borrow from and lend to one another.** Where are these exchange rates used? ------------------------------------ **Not everyone accepts the mid-market exchange rate. This is due to the fact that banks and other suppliers of currency exchange rates set their own, slightly different exchange rates for customers known as "exchange rate margins" to profit from global money transfers.** **As a general rule of thumb, you should transfer money as closely as you can to the mid-market exchange rate if you want to save money on international money transfers. When business owners interact often in foreign currencies, it can be challenging and expensive to pay significant amounts as transaction expenses.** **SALT specialises in assisting businesses in streamlining their transactions at a minimal cost. For all the paperwork necessary for currency transfers, SALT offers business owners a one-step solution at a very low cost.** **Using an account like [SALT](https://www.salt.pe/), can help you transfer money in multiple currencies at mid-market exchange rate without hidden fees or markup charges, since Salt solely believes in offering the simplest solution possible to its customers and not charging extra, it only charges one transaction fee.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Does A Payment Gateway Work? - Set up, Process, Merchant Accounts Author: Ankit Parasher Published: 2022-09-30 Meta Title: How Does A Payment Gateway Work? - Set up, Process, Merchant Accounts Meta Description: A payment gateway is a cloud-based software that helps to build a transactional connection between a customer and a merchant. Understand how it works in detail. Tags: online payment , need a payment gateway, payment gateway, financial ecosystem , merchant account , international payment gateway URL: https://salt.pe/blog/how-does-payment-gateway-work ![Payment-gateway-india](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-does-a-payment-gateway-work-2-1664521154405-compressed.png) Reportedly, at least one financial transaction is done every millisecond across the globe. According to [data](https://timesofindia.indiatimes.com/business/india-business/exclusive-at-48-billion-india-accounts-for-largest-number-of-real-time-transactions-in-the-world/articleshow/91070124.cms#:~:text=Other%20key%20highlights%3A,427%20billion%20transactions%20by%2020) from 2021 alone, over 118 billion payment transfers occurred worldwide throughout the year, and the number is only expected to keep increasing rapidly.  These financial transactions require a smooth pathway to get credited to the right account- this is where payment gateways come in. Any [wire transfer](https://salt.pe/blog/what-is-a-wire-transfer) or online payments in general require payment gateways to get processed. You might be curious about the huge payment gateway mechanism behind a digital transaction that takes a mere second to finish. To answer your queries, in this post we find out how payment gateways work, and how you can choose the best one for yourself.  First Things First, What is a Payment Gateway?  ----------------------------------------------- A payment gateway is a cloud-based software that helps to build a transactional connection between a customer and a merchant. Whenever a customer makes an online payment, this payment gateway-  * **processes the payment information,**  * **cross-checks the account details from the issuing bank’s side,**  * **and then completes the payment by crediting the amount into the merchant account.**  **Therefore, a payment gateway is what makes a fund transfer secure and seamless.**  ### **What are Merchant Accounts?** **Merchants like SMEs, startups, and shop owners all need their own ‘merchant accounts’ to facilitate transactions. The merchant account provides a place to store and transact money through hardware methods like debit or credit cards or online payments.** ** To obtain a merchant account, you must submit the necessary paperwork (including name, DBA, contact information, tax details, business details, routing number, etc.) relevant to your company to the account provider. After peer review and proper risk calculation, the account provider would allocate you a merchant account for all payments related to your business. ****### What is a Payment Processor? After a payment is initiated, a payment processor confirms all the details regarding the merchant account, payment background, and authorisation. Payment processors provide encryption to the transaction by issuing SSL certificates and hosting the payment through a secure network.** ** How a Payment is Processed Through the Payment Gateway ------------------------------------------------------ ** ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payment-process-gateway-08-1664521228631-compressed.jpg) ** A transaction is processed through the following steps: ** * **The payment gateway verifies all the customer details and runs fraud detection.** * **The payment details are sent to the acquiring bank, and the processor confirms the transaction.** * **After the due approvals, the payment gateway asks for confirmation from the credit/debit card company or the payment partner.** * **Once the payment partner approves the payment, the payment finally gets credited into the recipient’s bank account.** ** A merchant gets multiple options from the payment gateways to select their payment page. Most of the payment gateways offer the following options: * Hosted Payment Page: Once the customers confirm being directed to the merchant payment page after checkout, the payment gateway redirects them to an out-of-the-box page for the same. The hosted page receives transaction details from the acquirer. This method is useful in reducing the burden of storing card or payment partner details on a server. * Server to Server Integration: Generally in the case of SMEs and big firms, there are servers capable of storing the payment details, so server integration between the payment gateway and the merchant’s server is managed. The customers are requested for their payment partner details on the merchant’s page, and without being redirected anywhere, they can complete the transaction. While it is a faster way to transfer payments for the customers, it does require large server storage for the merchant. * Client Side Encryption: In this case, the merchant website receives encrypted data from the payment gateway with necessary transaction approvals and details. The client-side data is encrypted to prevent leaks while still completing fund transfers. It reduces the compliance requirements for the merchant.  Setting up a Payment Gateway  ----------------------------- Here’s how a payment gateway can be set up:  * Finalise the infrastructure: First you need to rent or purchase servers to store the payment data and verify the transactions.  * Integrate a payment processor: The next step is to integrate a payment processor to verify and process the transactions. API documentation and its implementation on the payment page are also required for this collaboration, along with external API support for the customers.  * Customer relationship management: A proper CRM will be needed to manage all the transactions on the gateway and store the payment details.  * International approvals: If the payment gateway would be processing international transactions, approvals for the same would be needed.  * PCI certification: Every payment gateway must have a PCI DSS certification to facilitate transactions.  Choosing the Best Payment Gateway --------------------------------- As an owner of a business or a startup founder, you will require a payment gateway for customer transactions. Here’s a checklist for factors you may want to look out for while choosing the best payment gateway for yourself: * Maximum digital security: Make sure the payment gateway is PCI DSS compliant, provides data encryption, and a sturdy fraud detection mechanism. * The onboarding time frame: It’s best to choose a payment gateway with shorter onboarding times, i.e. the time gateways take to secure bank approval for merchants.   * Easy integration: Choose a payment gateway easy and quick to integrate. * A robust customer support: This goes without saying- choose a payment gateway that can provide instantaneous customer support.  A payment gateway is the backbone to all financial ecosystems around the world. It is an integral part of the functioning of a startup, SMEs, and any other businesses. Keep in mind that it’s important to weigh your options before picking the right payment gateway for your business. We wish you good luck in your venture! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why RBI Needs BRC and FIRC In Your International Business? Author: Ankit Parasher Published: 2022-09-28 Tags: BRC , Foreign Inward Remittance, reserve bank of india, receive international payments , international money transfer, Inward Remittance, FIRC, receive money from abroad URL: https://salt.pe/blog/null ![Bank-Realisation-Statement-and-Foreign-Inward-Remittance-Certificate ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/why-rbi-needs-brc-and-firc-in-your-international-business-1664431674519-compressed.png) In the global economy we live in today, money is constantly moving across borders. Businesses and individuals send out and receive international payments recurrently, which is why it is necessary to understand the basics of what documents and certificates are behind international money transfers.  Contents * [Where is the Reserve Bank of India (RBI) involved?](#where-is-the-reserve-bank-of-india-rbi-involved)  * [Bank Realization Certificate](#bank-realization-certificate)  * [Foreign Inward Remittance Certificates (FIRC)](#foreign-inward-remittance-certificates-firc) * [How do we go about obtaining these certificates?](#how-do-we-go-about-obtaining-these-certificates)  Bank Realization Certificates (BRC) and Foreign Inward Remittance Certificates (FIRC) are certificates issued by an authorised dealer bank to the customers to receive money from abroad. BRC, or a bank realization certificate, is issued by the bank based on the realization of payment against any export by an exporter. Meanwhile, FIRC, or [Foreign Inward Remittance Certificates](https://salt.pe/blog/foreign-inward-remittance-certificate-explained), are issued against any receipt of an amount from foreign countries (international money transfer) by a bank to their customers. Where is the [Reserve Bank of India](https://salt.pe/blog/guide-on-inward-outward-remittance-under-rbi) (RBI) involved?  ------------------------------------------------------------------------------------------------------------------------ As the authority figure for all commercial, state co-operative, and urban co-operative banks, the RBI must look over these certificates. RBI not only governs international money transfers by keeping track of inflows and outflows, but it also monitors the transactions by businesses and individuals to understand the nature of imports and exports in the country. If you are a business owner and [receive money from abroad](https://salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india), the RBI would be aware of it for it to line up with the tax and trade formalities. It also helps the governing body track any unknown/illegal activities in imports and exports, such as smuggling, money laundering, creation of black markets, etc.  Now that we know RBI’s role let’s delve deeper into how these certificates work.  _**First up,**_  **Bank Realization Certificate**  --------------------------------- Any business applying to get benefits under Foreign Trade Policy must provide a valid BRC as proof of realization of payment against exports made and supporting documents to back it, such as invoices, shipping bills, custom clearance documents, etc. The benefits, such as import duty exemptions, custom rebates, duty drawbacks, and other financial assistance provided by the government or other export promotion agencies, are generally desirable to exporters, making the BRC a very important document. In India, exports are governed by entities such as DGFT, FEMA, Customs and Excise, and the RBI. The exporter is required to submit a money realization certificate to the RBI through their authorized banks. It is important to note that BRC is only used against **export**, and other international money transfers in advance payment will not be entitled to a BRC.  _**Next comes,**_ Foreign Inward Remittance Certificates (FIRC) ---------------------------------------------  A FIRC is issued against a bank's receipt of money from foreign countries. Unlike BRC, it can be an advance payment against the export process, ocean or air freight, remuneration or wages under consultancy charger, or other reasons. You can obtain a FIRC whenever you receive international payments for various reasons under advance payments. The bank in charge then certifies that the exporter receives the money from a legal source and authorizes the international money transfer.  As the legal authority for banks, The Reserve Bank of India oversees international trade and the money transactions that come with it. Bank Realization Certificates and Foreign Inward Remittance Certificates are an essential part of this system since they provide proof of payment and help streamline the process.  ![Difference-between-firc-and-brc](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/brc-firc-05-1664431798384-compressed.jpg) **Now that we know the role they play, you must be thinking..** ### How do we go about obtaining these certificates?  For a BRC, the exporter can approach their banks after they receive money from abroad after a shipment and submit the proof of export and their FIRC details to receive the certificate. Meanwhile, banks would issue an electronic FIRC at the request of the exporter and upon providing the necessary documents and details.  Salt helps businesses and freelancers to procure a FIRC for their international payments in a hassle-free way. Through SALT, you can receive your e-FIRCs through your account within 7 to 15 days of receiving payment for your transaction.  Want to take control of your finances in the best way possible? We’ve got you covered. Salt is a neo-banking platform that offers a seamless banking experience. Salt provides low-cost international B2B transfers and inward remittances to LLPs, private limited companies, startups, and other SMEs from across the globe.  [Get started today!](https://www.salt.pe) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Are International Exchange Rates Determined? - Factors and Measurements Author: Sudhanshu Choudhary Published: 2022-09-23 Meta Title: How Are International Exchange Rates Determined? - Factors and Measurements Meta Description: International exchange rate is an important factor for all international payments worldwide. It can be fixed and floating depending on the demand and federal rules. Tags: Venture capitalists, Angel Investors, vcs, indian startups, Investment deck for startups , MSMEs in India, multi currency accounts, International exchange rate URL: https://salt.pe/blog/How-Are -International-Exchange-Rates-Determined Startups, SMEs and large-scale businesses require dealing in various currencies [if their operations are spread internationally](https://salt.pe/blog/pitfalls-and-promises-of-growing-your-business-internationally-cl1x78bg5357401jqnfb8bt462). The need for exchanging foreign currency has risen from this very root. Global businesses rely on the currency exchange network due to the need to interact in monetary terms while dealing with clients residing in different geographical regions transacting in a currency different from theirs. For any LLP, private limited company or startup dealing in international transactions, it is essential to know the currency exchange rates. By exchange rate, we refer to the value of the home currency in relation to its foreign counterparts. Being abreast of the exchange rates helps proprietors, founders, and investors determine the worth of the asset priced in any currency other than the home currency and, thus, make informed decisions. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-are-international-exchange-rates-determined-1663938690027-compressed.png) Economic Importance Of Currency Exchange Rate Investors like to put their money after assessing the currency risks. As their investment grows, a declining currency rate and increasing business for a startup are great signs for angel investors. Every year, trillions of dollars worth of international trade occurs, which gives rise to changes in the international exchange rates. For a proprietor, company, or startup, these rates help define and determine the terms of the contract and monetary dealings with investors and clients likewise.  According to [one report](https://unctad.org/news/global-trade-hits-record-high-285-trillion-2021-likely-be-subdued-2022), global international trade in 2021 rose to around $28.5 trillion. It has been observed that the countries seeing a rise in exports and substantially lesser import dependency have stronger currencies as well. International trade from all sources, including big industries, SMEs, and local exports, account for a currency’s stand in the international exchange market.  How Are The Exchange Rates Determined? -------------------------------------- Trade between countries and the growth of a business depends highly on the currency exchange that occurs in all parts of the world. The impact of changing international exchange rates is different for investors, business owners, and the government of a country. International currency exchange rates are of two types, and every person interested in currency exchange must know these technical terms. ### Floating rates Every currency around the world is dependent on international trade and the performance of the economy as a whole. The concept of a floating international exchange rate arises from this need. The rates of different currencies worldwide fluctuate in relation to other currencies depending on their demand for business and supply around the globe. For instance, the US Dollar remains one of the strongest currencies and the most preferred by all investors and businesses, given its stability and the growth prospect of the United States.  For the uninitiated, this means an increase in the use of one currency in trade will increase its value against the others. Floating currency exchange has a lot of benefits and contradicting demerits as well. It helps provide equilibrium to the demand and supply chain of businesses. If a currency falls, the value of commodities from the country at stake also falls. This then increases the demand for the said commodities resulting in balancing the currency rate again. ### Fixed rates The concept of fixed currency exchange rates has been discarded by most countries worldwide as it does not help provide ease of business. Fixed currency rates are the currency exchange rates set by a federal bank or the government of a country in relation to other currencies from the world. The government pegs such rates by trading its currency for different currencies worldwide. During the breakdown of the economies between 1968 and 1973, most governments around the world discarded this currency exchange system as it added instability to the national reserves and thus impacted the economy of a country. Factors Affecting International Currency Exchange Rate ------------------------------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/factors-affecting-international-currency-exchange-rates-1663938724986-compressed.png) Multiple factors are involved in [determining the worth of one currency](https://salt.pe/blog/how-is-a-countrys-currency-valued-learn-here-cl0t96w9m13251jt99sw8cz5d) against another. Today, most currencies follow floating exchange rates; thus, the international market usually decides how much a currency is worth. Apart from the market scenario, some other factors also need to be learned to get in-depth knowledge about what brings forth changes in the exchange rates: ### Inflationary Conditions The term inflation generally means a decline in the relative purchasing power of a currency in comparison to other currencies. Countries with strong economies and managed demand-supply chains have stronger currencies. This means one can buy more commodities by paying less in that currency. Thus, if a country is suffering from high inflation, the purchasing power of its currency declines, and thus its position against other currencies in the world also declines. ### Banking interest rates Cash liquidity is a major deciding factor regarding a currency's worth. Banks tend to control the amount of cash flow in an economy by changing the interest rates from time to time. If a currency is experiencing low liquidity, banks tend to reduce the interest rates, allowing more cash to flow into the economy and, ultimately, the pockets of the consumers. To control inflation and support strong currency exchange rates, banks in a country also increase the interest rate when there is too much currency in the market, thus reducing the demand. ### Political influence Countries with a strong political stand tend to attract more business towards it and thus invite more foreign currency flow. This also means that international businesses and angel investors must use local currency and do business locally. This thus increases the demand for the currency, thus maintaining the exchange rate. The opposite scenario is also true in the case of a poor political arrangement in a country. There are other important factors, such as the confidence of traders and investors in a currency, governments trying to maintain the currency rates, ease of trade, etc. Conclusion The international exchange rate is an important concept that drives economies worldwide. Different countries try to maintain a stronghold in the market by providing support to their currencies. The economic effects of currency exchange are visible in terms of the performance of small businesses and startups.  Using a [multi-currency account](https://salt.pe/blog/multi-currency-accounts-for-businesses) through neo-banking platforms like Salt is a great way to get your international business streamlined, with the cash flows managed in a hassle-free way. Such accounts can help in managing foreign investments and also manage the usage of different currencies according to specific needs. You can use the Salt platform to know the currency rates as well. Apart from that, government sites such as [CBIC](https://www.cbic.gov.in/Exchange-Rate-Notifications) for India can be followed to get information about international exchange rates. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pre and Post Funding Compliances For Indian Startups Author: Ankit Parasher Published: 2022-09-23 Meta Title: Pre and Post Funding Compliances For Indian Startups Meta Description: For all the Indian startups raising from foreign investors have to comply with RBI and MCA filings. As a founder, learn what are these filings and why its crucial for your startup. Tags: indian startups, legal filings for startups, pre funding compliances , post funding compliances , funding compliance for startup, pre and post funding , startups in India URL: https://salt.pe/blog/Pre-and-post-funding-compliances-for-indian-startups India is becoming the startup hub for the world. Even though India's economic climate is excellent for startups to grow and flourish, a lack of adequate capital is one of the main reasons why most startups fail to make it beyond stage one. Without capital, there's a good chance that a startup won't be successful in launching a good or service. ![RBI has set up funding compliances for all Indian startups that receive money from abroad or raise funds through national rounds. Here’s a brief overview. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pre-and-post-funding-compliances-for-indian-startups-1663929149526-compressed.png) This is where pre-funding and post-funding come in. However, any startup in India must adhere to certain regulations before collecting funding. Businesses that fail to comply with regulations risk incurring numerous fines and penalties. Furthermore, it is the founders' fiduciary responsibility to make sure that the investor's money is in trustworthy hands. The funding rounds are usually more oriented towards the startup founders and marketing team presenting a problem and its solutions to the investors. These rounds can be for national investors or in front of international investors. In any case, following the rules set for pre-funding and post-funding is necessary. The startup also requires an international bank account to receive the funds easily. At this point, taking help from the neo-banking system may be advantageous. Keeping the funds safe and not getting penalties is often the biggest priority for startups. [Salt](https://www.salt.pe/) provides a one-stop solution for managing the legal and banking for startups' international fundraising.  Startup plans and funding requirements -------------------------------------- Every startup is a business opportunity based on problems faced by the community and a venture giving solutions to those problems. As a founder, you would require to do proper research about the problem you are going to address and the scalability of your business before going in front of investors. Investors, be they domestic or foreign, generally ask for a plan to promote the business in the market and scale it.  Startups need to be ready with their target audience and a way to approach them. Apart from that, the current financials, projected growth, profit and loss, balance sheet, cash flow, etc., are a must if any startup requires the investors to put their money in them. The last thing is to discuss what the investors will get in return for investment. The plan for sharing equity or taking debt is a pre-funding requirement for all startups. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/legal-filings-for-pre-and-post-funding-compliances-1663929220871-compressed.png) Pre Funding Compliances ----------------------- Startups in their initial stages require funding for enacting their plans and going into the market. Before reaching the pre-funding stage, the startup performance is pretty much based on the prototypes and the proof of concept. The preparatory stage for raising funds is important, and startups need to be ready with their [valuation report](https://cleartax.in/s/startup-shares-valuation#:~:text=A%20startup%20must%20obtain%20a,Optional%20or%20Compulsory%20Convertible%20Debentures.), which is a monetary valuation of the business generated by a registered valuer (registered by the IBBI) to assess the business and shareholding in the startup. Apart from that, the government makes pre-funding compliances mandatory to keep the business from insolvency and protect the investors’ money. A [term sheet](https://www.salt.pe/blog/key-components-for-startup-term-sheet) summarising all the terms under which investors proceed with investments and seekers accept them must also be prepared. In order to make the process of pre-funding simpler and hassle-free, the Indian government introduced ‘Companies Act 2013’. Under this act, every startup has the right to raise funds from within the country or through foreign investments. The act mandated that pre-funding compliances, including the need for valuation reports and holding board meetings, be adhered to. This act also allowed for the preferential allotment of shares. Preferential allotment can be called an early distribution of shares to raise quick funds for the startup. The shares can be exchanged for funds based on the preference of the management, VCs, and startup founder.   There are also other compliances that need to be followed and documented as a safety measure mandated by the Companies Act. Pre-funding compliances are necessary to keep the startup's share allotment and funding details crystal clear with management and the investors. Salt bank is a safe option for the management to be free from the documentation as they check if the funding compliances are met by the company or not. They provide hassle-free banking solutions, which mean less stress to the founders and VCs. ### Compliance With The Registrar According to the Companies Act 2013, any startup or a private entity can issue equity in a company to raise funds within or outside the confines of India. This provision is helpful for the startup as they can issue shares pre-funding based on preferences and even receive international payments. ### Conduct A Proper Board Meeting Notice of the meeting must be sent to each member of the Board at least seven days prior to the date of the meeting. Before going to the funding rounds, the private entity must also present the valuation report, bank account statements, cash flow records, and other financial records to the board. The company will also require opening an International bank account. The board must agree with all the records presented and thus finalize the offer for funding. ### Extraordinary General Meeting (EGM) Since the necessary arrangements are made for preferential allotment and a final offer for funding is drafted, conducting an EGM is a requirement. This meeting needs to assess the special resolution about the allotment and pass it before moving to the fund. Other requirements are to file MGT-14, and a PAS-4 letter must be sent to all the allottees from the preferential allotment.  Offer letter Finally, the company needs to send a placement offer letter to all the allottees within 30 days, and the records related to preferential allotment need to be filed with the Registrar of the company. And with this, the company gets clearance to receive funds from investors. Post funding compliance ----------------------- A company still has other post-funding compliance requirements to undertake after securing funding. Allocating shares to investors is often the next step after publishing an offer letter and submitting a complete preferred allocation record to the Registrar. ### Allotment of shares As soon as the funds are received, designated shares are to be provided to the allottees, and this has to be done within sixty days of receiving payments. After the shares are allotted, a return of allotment must also be filed with the Registrar within thirty days. ### Drafting and issuing shares certificate  The final compliance to abide by is to create and issue share certificates to all investors, thus making the shareholding pattern of the company official. In the case of receiving money from abroad, the company also needs to follow some additional RBI policies. Optional compliances for startups  ---------------------------------- Optional compliances usually come into effect under special circumstances.  * **In case the founders of the startup had already prepared share holders’ agreement that restricts the share transfer, exit rights to investors, vesting schedule, etc., the company's articles of association need to be amended.** * **In the case of investors asking for a board seat, the optional compliance of adding a director needs to be followed.**  **Conclusion**  --------------- **Clearly, starting a new business and entering the market to raise capital is not easy at all. The compliances mandated by the government do increase the work for a founder or the VCs in the company, but they also help in protecting the investments and thus keep the financial stability of the company further ahead. The pre-funding and post-funding compliances mentioned in this content are to be followed strictly if a startup wants to avoid penalties and lookout by the authorities in India.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Best Invoice Generator Tools You Can Use As a Freelancer Author: Sudhanshu Choudhary Published: 2022-09-12 Meta Title: Best Invoice Generator Tools You Can Use As a Freelancer Meta Description: This is the article for all the freelancers who need a bookkeeping assistant to track all their invoices. Presenting to you the best invoice generator tools available! Tags: invoice generator tools , receive international payments , Freelancers, Inward Remittance, receive money from abroad , freelancer tools URL: https://salt.pe/blog/invoice-generator-tools-for-freelancers An invoice generator is a useful tool for anyone who is working and earning. It helps create invoices and credit notes under the standard format. Accountants and business owners often swear by invoice-generating tools in order to keep track of all the transactions, interact with vendors/customers, and calculate the taxable amounts in an efficient way. The management part becomes tougher when we bring international payments into context. There are several formalities and procedures to complete if you want [to receive money from abroad.](https://salt.pe/blog/how-to-receive-money-from-abroad-to-india)    ![Generate-invoice-online](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/invoicegeneratortoolsfreelancers-01-1663221248820-compressed.jpg) As a [freelancer](https://www.salt.pe/blog/accept-international-payments-as-a-freelancer-working-with-overseas-clients-cl6vw45ad40831mn3me2ftiqu), an invoice generator would be extremely helpful in managing your finances and recording all transactions in a secure manner. This article goes through some of the best invoice generator tools available on the market today that would help you live that be-your-own-boss life.  And the cherry on top? All the following invoice generators are completely free! You can focus on working hard and not racking up huge bills with these free and easy-to-use financial tools. And for the managing-your-finances bit, aka inward remittances and international payments, on Salt, your go-to digital banking solution.  Wave ---- [Wave](https://www.waveapps.com/invoicing) is a full-featured business application that helps you track your expenditure and revenue as well as generate invoices by connecting with your bank account. It is available on the web, iOS, and Android.  Accessing and generating invoices is relatively simple with the Wave platform. You need to select the ‘Create a new’ option on your dashboard and then click ‘Invoice’. There are many opportunities for customizing layouts and designs since you can choose different templates, add a logo if you have one for your own brand, and adjust the colours as you require. Adding discounts, adjusting pricing or even adding a note in the invoices is also easily done through a click of a button.  It is a great and easy-to-use platform for a freelancer looking to make [to receive international payments via inward remittances](https://salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india) easier while they grow their brand. If you need to access additional features such as payroll and tax filing, you will need Wave’s upgraded plan, which is also pretty affordable.  Since Wave uses a third-party payment gateway, some processing fees may apply: Wave payment processing fees: 2.9% + $0.60 per transaction for card payments (3.4% + $0.60 for card payments from American Express); 1% per transaction for bank payments (ACH) PayPal ------ This one needs no introduction. [PayPal](https://www.paypal.com/in/home) is a famous service available in many countries worldwide, and it has made its name for being reliable and easy to use. It is available on the web, iOS, and Android.  Creating an invoice simply involves putting in the international client’s name, contact information, and pricing. In customisation features, you can add your own logo, include custom fields on the invoice and notes, and send payment reminders to your clients. If you want to be consistent with the templates you use, you can find the three dots next to the ‘Send’ button, clicking on which would give you the option to ‘Save as template.’  While PayPal may not have as many customisation features as Wave, it is a robust application that is generally trusted by everyone and is a popular method to receive international payments from abroad. It also makes the invoicing process much easier by generating invoices on your phone and sending them off to clients, no matter where you are.  Since PayPal is a payment gateway, some processing fees may apply: PayPal payment processing fees: 3.49% + $0.49 per transaction Zoho Invoice ------------ [Zoho Invoice](https://www.zoho.com/invoice/) might be one of the most impressive invoice generator tools available in the market today, with many interesting features. It is available on the web, macOS, Windows iOS, and Android.  Sending an invoice from the Zoho application is relatively straightforward. You have to input your business name, location, and currency. You can also add terms and conditions, upload additional files, adjust the invoice receipt, and add taxes wherever needed with the customisation features. Moreover, in case you are dealing with a recurring bill, you can simply click the ‘Recurring billing’ button at the bottom of the invoice, and the app will handle everything else.  What takes the cake are Zoho’s additional features apart from the invoice generators since it lets you send estimates, sign contracts, track payments and track time in business operations and transfers. Customer and client files can also be maintained by adding their name, contact information, website, and other custom fields. On top of that is the customer portal feature of Zoho. It allows you to invite customers to see what they owe you, their payments, and their available credits.  Zoho Invoice is a powerhouse software that allows you to create and send invoices as well as keep ahead of all your finances in the case of domestic and international payments.  Zoho Invoice payment processing fees: Since Zoho Invoice uses third-party applications like PayPal, Stripe, and Square, transaction fees vary.  Invoicera --------- [Invoicera](https://www.invoicera.com) is a reliable platform and tool that helps you keep track of your invoices as a freelancer. It is available on the web, macOS, Windows iOS, and Android.  To add an invoice, you only need to select the ‘Create Invoice’ option from the main navigation bar. While there are only four invoice templates available, Invoicera makes up for it in the automation features. It acts as a bookkeeping assistant since you can set up “dynamic parameters”  to pull billing from the time tracker, add expenses, and automatically send payment reminders and invoices.  Therefore, even though the customisation features might not match up to Wave’s, Invoicera is a great platform for freelancers to manage their invoices and international payments from clients. You can only have 3 clients on the basic plan for Invoicera, after which it would be chargeable.  Invoicera payment processing fees: The platform works with 30+ payment gateway systems, so fees may vary. ![Invoice-template-for-freelancers](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/invoicefreelancers-03-1663221300564-compressed.jpg) Honourable mentions ------------------- * ### **Stripe**  **It is best known as a payment gateway, but it does have its [own invoice generator](https://stripe.com/in). It has limited customisation and automation features but has an entire section dedicated to your subscription and recurring bill setting, which could be very useful. It is available on the web, iOS, and Android.**  **You can create up to 25 customised invoices a month with the basic, free plan, after which you would be charged 0.4% per invoice.**  **Stripe payment processing fees: 2.9% + $0.30 per transaction** * ###  **Square** **[Square](https://squareup.com/us/en) may be a good option since its invoice generator has a number of customisation features. It can also send recurring invoices, schedule invoices to be sent at a later date, accept digital signatures, and schedule automatic payment reminders. It is available on the web, iOS, and Android.**  ** Square payment processing fees: 2.9% + $0.30 per transaction for credit/debit card payments made on invoices. 3.5% + $0.15 if processed using a card on file. How to choose the best invoice generator tool --------------------------------------------- Now that we’ve gone through the multiple different types of invoice generator tools available out there, you might be wondering: how do I choose the one that is perfect for my needs as a freelancer? ****In choosing an invoice generator, it is important to identify the services and features that are most important to you and your brand. Thanks to technological advancement, invoice generators today do much more than creating a PDF and give you the option to send an invoice through email. They should be intuitive and have full features of billing softwares that help keep your finances on track.** ** Hopefully, this helped you decide on one that would work best for you. We’re rooting for you! ****As for us, We are [Salt](https://www.salt.pe/), a neo-banking platform that offers a seamless banking experience for businesses to thrive in the international market.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Capital Account and Why It Is Important For Business? Author: Ankit Parasher Published: 2022-08-30 Meta Title: What Is Capital Account and Why It Is Important For Business? Meta Description: When a company founder applies for a loan, banks usually look at the capital accounts of the company to understand the company's financial stakes and ability to repay the loan. Read more about why Capital account is important? Tags: Startup fundraising, capital account , capital gains, startup founders, capital account for startup, fundraising capital account , founder's guide, first time founders URL: https://salt.pe/blog/null ![why-capital-account-is-important-for-businesses](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/capital-bank-account-1662467770241-compressed.jpg) What is a Capital Account?  --------------------------- The [capital account](https://economictimes.indiatimes.com/defaultinterstitial.cms) of a company is an important part of its accounting since it indicates whether the company is attractive for investments or not. Essentially, it involves an account of all the company's remittances, cash flow, and asset ownership and distribution amongst the stakeholders.  The capital account comes under the topic of macroeconomics and plays a vital role in understanding the financial situation of LLCs, SMEs, and even a country itself.  The capital account of a business provides an indication of its current net worth. In the case of single proprietorships and in corporations, the capital account also denotes the shareholders' equity and the owner's equity. SMEs usually have sole ownership, which makes the company's capital account a description of the owner's overall holdings and the company's overall business earnings. Typically, companies include information on their capital accounts at the bottom of their [balance sheets](https://www.indeed.com/career-advice/career-development/template-for-balance-sheet). The equity distribution is then done according to the ownership of the company. To be thorough with stakeholders, companies with multiple ownerships have multiple capital accounts for various owners to track the accounts of the company and the individual earnings. How Does A Capital Account Work? -------------------------------- ![](https://lh3.googleusercontent.com/_Ieeg4zScsDQMRLw-9euKhE-qI-NvVR8aAMZaKdqm3Xlbh75AR8_MwozpEhMFM1LWsIxuEpIrYahpyAK46XuFgoVCAWpe0rjX4H3xTKBCKtkaZqN1zbaiAbwa__4bMJ6cLhLYNbm_0BCYIJoFLkN21NtNFKCVmFy0V82dAFG5-6ykZtCY_6022whFA) ​**Source: [Wall Street Mojo](https://www.wallstreetmojo.com/capital-account/) / Capital account statement**​ Company founders and VCs usually have capital accounts, which are updated regularly to revise the earnings of every individual stakeholder in the company. Technology and macroeconomics have taken over, and software is used to create a capital account.  In the case of SMEs, capital account creation is not much of a hassle as the equity distribution is not much. Usually, the company's accountants log every transaction made by the company and reassign the remaining income to the owners in their capital accounts to make the process smoother.  Changes in taxation, sudden expenses, or discrepancies within the company typically impact the organization's capital account. As a result, ownership agreements between stakeholders abide by all adjustments made to capital accounts. [Salt](https://www.salt.pe/), a neo banking solutions firm, works on providing services related to remittance and table–compliance handling. The company offers services to LLCs and other corporations and takes care of the majority of its clients' banking needs through fully automated online procedures. As a result, Salt can provide assistance if there are issues with the company's capital accounts. Benefits of understanding how capital account works --------------------------------------------------- * **A clear understanding of the capital account keeps shareholders in the loop of their position in the company and their profits.** * **Understanding how capital accounts work allows SMEs to better manage their funds and steer clear of unwanted debts.**  * **Startup founders can better understand business transactions, shareholder equity, and other concepts through capital accounts.**  **Types of Capital Accounts** ----------------------------- **Based on the kind of ownership of a business, there are mainly four types of capital accounts. These are:**  * ### **Sole proprietorship** **Such a capital account is maintained in the case of a single-owned [business](https://www.insee.fr/en/metadonnees/definition/c1606#:~:text=A%20Sole%20proprietorship%20is%20an,created%20a%20distinct%20legal%20person.) in which the capital gains are accounted to a single entity. This type of account is displayed with the owner’s name on the balance sheet.**  * ### **Partnerships/LLCs** **In a business with multiple partners with different investments in the business, LLC capital accounts are created for each partner. The capital gains or losses are determined by the LLC operating agreement and thus reflected on individual accounts.**  * ### **Shareholders**  **In a business, shareholders with considerable capital investment also have capital accounts. They are compensated by the business in terms of dividends and also get voting rights since they have a fair share in the company.**  * ### **S and C corporation accounts**  **In the case of both [S Corporation](https://www.investopedia.com/terms/s/subchapters.asp) and [C Corporation,](https://www.investopedia.com/terms/c/c-corporation.asp) capital accounts are maintained by mentioning the law deductions, transfer of profits to the shareholders, and other transactions. These capital accounts are maintained for all the shareholders after mentioning different tax deductions.**  **Why is a Capital Account Important for Business?** ---------------------------------------------------- **A capital account keeps a clear track of the funds of the business. When a company founder applies for a loan, banks usually look at the capital accounts of the company to understand the company's financial stakes and ability to repay the loan. The capital account of a company also keeps track of funding from different sources and how much equity is distributed to each owner on its behalf.** **Taxation levied on the business’s owners is another reason for maintaining a capital account. In the case of sole ownership, a company founder has to pay taxes from the capital gains mentioned in the capital account. On the other hand, corporations and businesses with multiple stakeholders have different tax filing systems. Shareholders receive capital gains in the form of dividends and stocks. Earnings from dividends and selling stocks [attract taxes](https://cleartax.in/s/how-dividends-taxable#:~:text=In%20India%2C%20a%20company%20which,is%20liable%20for%20the%20tax.) that must be paid under the tax laws of the region. All of these calculations can be effectively done only if the company's capital account is well maintained.** **Conclusion**  --------------- **Certainly, the capital account of a firm is the foundation for comprehending the capital gains of the business's owner or shareholders. Moreover, it takes precedence since it helps keep track of all the transactions and expenses. Maintaining a clear record of the transactions also helps keep the finances clear and thus maintain the financial stability of the business.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top Things To Look For When Buying A Corporate Card Author: Ankit Parasher Published: 2022-08-29 Meta Title: Top Things To Look For When Buying A Corporate Card Meta Description: Growing your business internationally? You must be needing corporate cards to manage business expenses. Read the blog to know what to look for when picking a corporate card for your business. Tags: corporate card, indian startups, MSMEs in India, SMEs, corporate credit card, Corporate cards URL: https://salt.pe/blog/corporate-cards-features ![look-for-these-features-before-buying-a-Corporate-card](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/top-things-to-look-for-when-buying-a-corporate-card-1661761620398-compressed.png) [Corporate cards](https://salt.pe/blog/what-is-a-corporate-card-and-how-to-get-one-cl78p7yut332481po1wdpmpfz8) are a fuss-free way of dealing with business expenses borne by employees. They are handed out to employees who incur business expenses frequently, such as on work trips. A corporate credit card is essential for various business organisations such as limited liability partnerships (LLPs), Private limited companies, proprietorships, and startups.  Since employees do not have to spend out of their own pocket for business expenses, it allows the company to track and control payments. Moreover, corporate cards are a better option for companies than regular credit cards since employees are not burdened with defaults, and their credit score remains unaffected, as the company is responsible for repayments.   There are some basic eligibility criteria for companies to avail of a corporate card which differ from country to country. In the United States, for example, companies need to boast a $4 million annual revenue, need to have been in business for 12 months or more, have at least 15 card holders within the company, and should be registered as an S corporation or C corporation. Sole proprietorships are also not eligible for corporate credit cards.  However, with the number of options available today, it is important to choose the right one for a corporate card since it would become an integral part of the day-to-day operations and finances of various business organisations. Here are the top things to look for when buying a corporate credit card: Security -------- As always, security would be the number one priority when looking for a suitable corporate credit card provider to protect business finances. Credit card regulations should be present to strengthen the level of security in transactions and protect personal information, as well as company policies that outline the terms of spending for employees. Two-factor authentication and user identity verification protocols are the cornerstones of a well-rounded security system in the modern age. [Many companies](https://blog.expensya.com/en/choosing-your-corporate-credit-card-10-questions-to-ask-the-service-provider/) are also taking up 3-D Secure mode, which is a fraud prevention method wherein an extra layer of security is added. It requires a unique password, approval from a mobile application, or a timed verification code received through SMS to make a purchase or transaction successful. Managing and controlling expenses --------------------------------- An expense management solution is a must since it helps monitor the expenses incurred by employees in real time. Thus, a corporate credit card should ideally come equipped with a system of managing and controlling transactions. Expense management systems linked to corporate cards that give managers access to spending information could also provide a system where they can allocate budgets to employees to keep spending under control. Easiness of book-keeping ------------------------ It is necessary to keep track of the expenses on a corporate credit card through accounting to understand gross spending overall and in every category. These insights would also help companies understand and track the spending patterns of employees and then set out adequate limits and policies. Thus, it is essential for corporate credit cards and their expense management system to integrate and work well with accounting software to provide a proper analytical view of business expenses. Rewards/Incentives/Perks ------------------------ Credit cards often offer rewards in the form of cashbacks, discounts, vouchers, etc., on SaaS platforms, and these added incentives could be beneficial to a company’s growth. Business is all about profit maximisation and cost-cutting, which is why these rewards could help save money by availing Saas subscriptions at a lower, discounted price, free subscription for a limited amount of time, or the highest plan at a discounted price. Some corporate cards also allow holders to access lounges at domestic and international airports worldwide, facilitating easier work travel.  Real-time visibility -------------------- Making purchases or transactions using credit cards has become incredibly quick and effortless, so companies need real-time visibility of the payments made on their card. Corporate credit cards should offer an instant reflection of expenses and transactions through a mobile app which is also synced with the expense management system. This would help take quicker actions and better understand the long-term policy and decision-making spending patterns.  Physical and virtual cards -------------------------- We live in the digital age, where every physical component has a virtual counterpart, and the same is the case for corporate credit cards. The provider should ideally purchase both physical and virtual cards to enable easier transactions. For many companies, purchasing a physical card also comes with travel or health insurance. On the other hand, virtual cards also have the benefits of better security in online transactions and overall control over spending through a website or application. Multi- currency wallet ---------------------- ![what-is-a-multi-currency-wallet](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/multi-currency-wallet-01-1661777705750-compressed.jpg) For a growing company with frequent payments across borders, it is essential to have a multi-currency wallet that enables users to skip high transaction costs, remittances, and transfer fees. It would also be useful to opt for the card that offers the least waiting time since credit card payments to other countries often require waiting for long periods for the transaction to go through. Corporate credit cards could be an effective way of understanding employees’ business expenses, especially in SMEs or early-stage startups (that are fulfilling the eligibility criteria) that are on track to establish a bigger presence and undergo growth. There are many different options available in the market today, which is why it is important to select the right one when looking for a credit card provider and look at the unique services they are offering.  ### Salt for international business banking [Salt](https://www.salt.pe/) is a neo-banking platform that offers a seamless B2B banking experience. It provides business banking services like inward remittances for efficient use and many others that help facilitate business expenses. If you are a business looking to manage your international payments and compliances, Salt has got you covered! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Request An FIRC in India After An International Transaction Author: Sudhanshu Choudhary Published: 2022-08-26 Meta Title: How To Request An FIRC in India After An International Transaction Tags: FIRC, what is FIRC, Who issues FIRC , How to get FIRC , What is FIRC in Export URL: https://salt.pe/blog/How-to-request-an-FIRC A FIRC is a crucial document for any retailer or provider of services who accepts payments from clients abroad. Find out more about FIRCs. ![Get-An-FIRC-After-International-Transaction](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-request-an-firc-1662553995002-compressed.png) [FIRCs](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) (Foreign Inward Remittance Certificates) are crucial if you accept foreign currency payments. But of course, there are a lot of aspects to a FIRC that you should be aware of. Do not worry, for, in this article, we will cover all basic aspects of a FIRC and help you answer certain questions such as What is FIRC, How to get FIRC, What is FIRC in Export, Who issues FIRC, etc. To understand what is FIRC, let us first understand what the abbreviation means and cover the basic definition of a FIRC. Simply put, a FIRC (Foreign Inward Remittance Certificate) is an official record that serves as evidence of international payments to India. This document acts as official proof whenever any person or company receives any kind of payment in a foreign currency. It is crucial to obtain this certificate in India since it aids in the tracking of all transactions of such nature by the DGFT (Directorate General of Foreign Trade) and Customs department. Hopefully, this helps you in gaining an understanding of what is FIRC. Now another question comes to mind, exactly who issues FIRC? Well, FIRC can only be issued by Authorized Dealer Category I (AD) banks in India, per the official regulations that have been set forth by the RBI (Reserve Bank of India) and FEDAI (Foreign Exchange Dealers Association in India). Manufacturers and service exporter private limited companies, LLPs, proprietorships, and other kinds of SMEs in India must obtain the FIRC, which can often take more than six months to obtain. Companies must also check up with banks after each transaction they make and send application forms to their respective banks for each one. Additionally, a lot of banks demand exorbitant costs to process FIRC inquiries. Now, as to what is FIRC in export, a certificate known as a FIRC in export is typically given by banks as evidence of overseas payments. This certificate includes all of the remittance information. When applying for financial aid and other forms of government support, exporters may provide this certificate as legal proof of such transactions to any government agencies. There are two types of FIRC, one is the Physical FIRC, and the other is e-FIRC. The Physical FIRC has been formally discontinued as of 2016 and is now only available in digital format (e-FIRC). Remitter banks offer an alternative form known as an advice, a declaration, or a NOC for your home bank to use going forward to complete the e-FIRC procedure. What is the FIRC request format? -------------------------------- The FIRC is a crucial piece of paperwork that proves that you have received the money in another currency.  A FIRC is necessary for Indian vendors or service providers, such as startups, private limited companies, partnerships, freelancers, and other SMEs who accept foreign payments. There are numerous more situations where you would need to employ a FIRC, for example, a salaried person receiving payment in a foreign currency or an online store where customers can purchase with foreign currencies. FIRCs are accepted as proof by many Indian authorities. On how to get FIRC, certain information is always required if you successfully want to fill out a request for a FIRC. They are as follows: * **Named beneficiary** * **Indicate whether the money is in cash or sent to the recipient's bank account.** * **Name and location of the sender of the money** * **Name and location of the first bank that handled the international transaction Demand Draft (DD), Telegraphic Transfer (TT), or Cheque number** * **The sum that is expressed in the foreign currency** * **rupee equal to the amount in dollars (in written format as well as the numerical format)** * **Name of the money's recipient** * **The conversion rate used in the transaction** * **The reason behind the transfer** **Attached below is the image of a [request for FIRC](https://www.paypalobjects.com/webstatic/en_IN/mktg/pdf/Sample-FIRC-Request-Letter.pdf) for your reference.** ![](https://lh4.googleusercontent.com/uUw-Uv7QU3aK5RyDix9VVfxN1YvD4uulocuO028bQ0oPH6ix_yup_B3yFkyjJC1vexaEECyZXTGxaMQNpfO_q4zhvOoA_l6SCqtlIQLixKlgDCT-lxMJWDQSwh9JYCoEhrA3Jlt-jNlJIWahY7WczaOwm90zryzViTcQR8tzw0rGuBvCWazzk1cvxg) **And as to who issues FIRC? Well, the beneficiary bank is responsible for issuing the FIRC, and the procedure takes some time. With SALT, the overall procedure can be done pretty quickly, and your request can be processed in a shorter amount of time.** ### **e-FIRC and Its Importance** **e-FIRC, also known as electronic FIRC, is a notification of payment received. When banks update payment received data on the Indian government website called the EDPMS, the e-FIRC is generated.** **Procedure to request e-FIRC** ------------------------------- **Now, you also need to be able to understand how to get FIRC or e-FIRC.** **Your transaction is qualified for an e-FIRC if it comes under the requirements of EDPMS. [The RBI rules](https://www.salt.pe/blog/rbi-guideline-for-firc) and the Indian bank where the money was received must be followed.** **In other situations, a statement to the bank including the following information about the transaction is required to get a FIRC:** * **UTR number Account number Transfer amount** * **The transfer's date** * **what the transfer is for** * **The recipient's name** **The recipient will subsequently be responsible for paying for the FIRC's issue.** **After the IRM has been posted into EDPMS, an e-FIRC is generated there. Your bank where the money was credited to a customer's account will upload IRM.** **Issuance of the certificate** ------------------------------- **The receiver bank issues an e-FIRC to link the two parties whenever the exporter proceeds to export goods and services obtained by a bank other than the bank through which the paperwork was submitted. The bank creates an IRM (Inward Remittance Message) on the government export portal known as EDPMS (Export Data Processing and Monitoring System) once it is satisfied with all the paperwork. The FIRC number is then used to refer to this IRM number.** Salt For International Transactions  **Through SALT, you can receive your e-FIRCs through your account within 7 to 15 days of receiving payment for your transaction.** Salt provides FIRC for all its international money transfer. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Happens When You Choose The Wrong Purpose Code? - International Transactions Author: Ankit Parasher Published: 2022-08-26 Meta Title: What Happens When You Choose the Wrong Purpose Code? Meta Description: Choosing the wrong purpose code can lead to the suspension of cross-border payments. Here's what happens if you choose the wrong purpose code. Tags: purpose codes india, wrong purpose codes, Investment deck for startups , international money transfer, cross border payments, wrong purpose code, purpose code, Inward Remittance, cross border transaction URL: https://salt.pe/blog/wrong-purpose-code Cross-border payments are getting popular as more and more startups, LLPs, private limited companies, and other SMEs are going international in their dealings. In India, the startup ecosystem has grown by leaps and bounds.  ![Wrong-Purpose-Code-Chosen](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wrong-purpose-code-1661523138964-compressed.jpg) The number of startups in India increased to over [70,000 in June 2022 from only 471](https://timesofindia.indiatimes.com/india/number-of-startups-in-india-grows-to-72993-in-2022-from-471-in-2016/articleshow/93077040.cms) in 2016. The growing number of startups and SMEs, which range from single-handedly run proprietorships to ever-perpetual companies, is one of the reasons that India is the [largest receiver of inward remittances](https://timesofindia.indiatimes.com/india/india-worlds-largest-recipient-of-remittances-received-87-billion-in-2021-world-bank/articleshow/87772872.cms) globally.  However, every cross-border transaction is subjected to some rules. These rules are set by the central financial institution of a country. For instance, remittances are governed by the **Reserve Bank of India (RBI)** and the **Foreign Exchange Management Act (FEMA) in India**. Whether you are sending money abroad or receiving it from abroad, you must specify the purpose of such cross-border transactions, which we know as purpose codes. Purpose codes are issued by the government of a country to overlook all the transactions happening in and out of the country. These codes also enable the smooth processing of the cross-border payment system.  **But what if you choose the wrong purpose code? Do you lose the money? Let's find out.**   What is the Purpose Code? ------------------------- ![Purpose-code-defined](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-purpose-code-1661570179511-compressed.jpg) Countries around the world issue [purpose codes](https://www.salt.pe/blog/purpose-code-for-international-money-transfer) through their central banking institutions. A purpose code is required for cross-border transactions to be successful. Each transaction involving foreign currency is assigned a separate purpose code.  A purpose code specifies the purpose of the transactions, i.e., why the transaction is being performed. When making a cross-border payment, purpose codes from both the sender and receiver countries may be required in order to meet the regulatory requirements of the banks issuing the codes.  In India, RBI has various purpose codes for both payments received by Indians from abroad and payments sent by Indians abroad.  In other words, the purpose code assists regulators in determining the precise nature of a cross-border transaction, whether it is inward remittances in foreign currency or outward remittances in foreign currency. ### Why is It Needed? The RBI has a list of purpose codes that must be included in the details of every remittance. These codes specify the **nature of the transaction** as well as the **specific reason for the transfer.** The RBI can classify remittances using these codes. _For example, if the purpose of your foreign transaction is 'postal services,' you must use the code P0401 when processing the transfer._ Many startups, freelancers, and SMEs in India use payment gateways such as Salt, PayPal, Wise for both inward and outward remittances. Before you can withdraw funds from your account to your local Indian bank account, you must first select the correct purpose code if you use a payment system to receive payments in foreign currency. It will be used as the default reason for all future payments once you enter the correct purpose code for your remittances. Along with the correct purpose code, you will also need a [Foreign Inward Remittance Certificate (FIRC)](https://www.salt.pe/blog/foreign-inward-remittance-certificate-explained) issued by RBI to receive cross-border payments.  What Happens When You Choose the Wrong Purpose Code? ---------------------------------------------------- As stated earlier, purpose codes are required for both inward and outward remittances. If you select the incorrect purpose code, the central bank may flag the transactions as an **attempt to evade taxes**. Wrong purpose codes can cause your transactions to fail. Furthermore, the bank may suspend the amount on charges of **tax evasion** and book you under the **tax laws of the land**. If the transaction involves a larger sum, the risk of losing the money upon selecting the incorrect purpose code increases. If you enter the wrong purpose code, you will be unable to change it for previous transactions.  RBI has issued about 188 purpose codes and it’s always safe to cross-check your purpose code before filling the details. Instead of scouring through the endless list of codes, you can use SALT’s [purpose code finder tool](https://www.salt.pe/purpose-code). Watch this YouTube video to understand [How to choose a purpose code for your international transfers](https://youtu.be/tytfL6lk1H0).  How Does SALT Help in Cross-Border Transactions? ------------------------------------------------ Excessive transaction fees and a lengthy waiting period make cross-border payments difficult. Banks from different countries deal with one another in cross-border transactions. Aside from currency conversion, there are other considerations, such as varying taxable amounts and hidden fees.  Because there are so many entities involved in a single transaction, the process can be quite slow. SALT, on the other hand, makes cross-border payments easier than ever for all kinds of B2B processes.  SALT is a neobank that works hard to make cross-border payments simple for businesses. SALT allows you to transfer money from abroad in 24 hours for a low fee of only 1.75% of the total transaction amount.  Furthermore, unlike traditional financial institutions, the SALT verification process is simple and quick. You simply need to register on SALT and fill out the necessary information from the comfort of your own home.  SALT does not require a minimum transaction amount to use its services, whether you are a startup, an LLP, a private limited company, or an SME.  There are no hidden fees, annual subscription fees, or markup fees when you use SALT. As a result, with SALT, any business or even a large corporation can easily perform cross-border payments across the globe. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is A Corporate Card And How To Get One? Author: Ankit Parasher Published: 2022-08-25 Meta Title: What Is A Corporate Card And How To Get One? Meta Description: Unlike personal credit cards, corporate credit cards help pay for the expenses incurred by the company. Learn how corporate cards can be helpful for your business finances. Tags: Business card, corporate credit card, Corporate cards, individual liability card, corporate liability card URL: https://salt.pe/blog/null All the companies, even a few startups that have received funding from VCs or angel investors, warrant business trips that include travelling expenses, lodging at a hotel, airfare, or train fare. Now, these charges are incurred by the employees of the company. Thus, the company pays for the employees or compensates them.  However, it might be difficult to keep track of all the expenses and reimburse the employees at the right time, especially when it's a big startup or an SME with its operations spread across geographies. Thus, companies have adopted corporate credit cards to make affairs easier for the accounting department and help both the firm and the employees.  ![Corporate-cards-for-businesses](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-a-corporate-card-and-how-to-get-one-1661421729979-compressed.png) What is a Corporate Credit Card? -------------------------------- Corporate credit cards are normally issued by prominent companies to their employees to pay for the expenses incurred due to the requirements of the company so that the employee does not have to pay from their own pocket. Startup founders can also benefit from the corporate cards greatly by better utilising the funds received from the investors like VCs and angel investors.  The corporate cards are very different from the business cards used by the sole proprietor due to their eligibility and liability criteria.  Also known as commercial credit cards, corporate credit cards are issued to specific employees only. These cards make it easier for the employee and employer to reconcile the expenses, and the company can easily monitor the charges that the employee incurred under the company policies. The card holds the name of the employer and, in some cases, the employee to whom it has been issued. Different corporate credit cards have different liability criteria. Like few cards may have joint liability as an option. ### Types of Corporate Credit Card A corporate card is bifurcated on the basis of the entity that will be responsible for the debts and pay the credit card bill. The two divisions are individual liability cards and corporate liability cards. The employer has the choice to issue any kind of corporate card to the employee. * **Individual Liability Card** ----------------------------- **The employer first checks the credit score of the employee before issuing the individual liability card. Notwithstanding that, the credit score of the employee is not affected by the use of the corporate credit card. In this type of card, the employee is liable for the payment of the expenses incurred. The employee has to account for the charges to the employer for reimbursement.**  * **Corporate Liability Card** ---------------------------- **As the name suggests, the corporate or the start-up founder that is the employer is responsible for the payment of the business expenses. However, the employee needs to give details about those charges to the employee. The employer then reconciles it with the card statement. In this case, the credit card issuing company checks the employer’s credit score.**  How does a Corporate Credit Card Work? ![How-does-a-corporate-card-work](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-a-corporate-card-and-how-to-get-one-1661421767913-compressed.png) **Corporate credit cards are very much like the personal credit cards used by the employee. The only difference is that here the expenses are borne by the employer or the company and do not fall under the personal expense of the employee. In the absence of a corporate credit card, the employee will have to bear the business expenses like lodging and travelling that are recurring expenses owing to [international business](https://www.salt.pe/blog/pitfalls-and-promises-of-growing-your-business-internationally-cl1x78bg5357401jqnfb8bt462), personally for a time being that will be compensated later.**  **However, it may be the case that the employee doesn’t have the required funds in the bank, and the operations of the company may get delayed. Especially in the case of startups, the early-stage founders cannot afford to take too much time to take decisions. Hence, corporate credit cards play an important role in boosting the company’s growth as well. Additionally, the employee should be well educated about the company policies regarding the expenses and reimbursement of them before using the card so that during the reconciliation of the card statement, there are no discrepancies and disagreements. Each time the employee uses the card, the amount is recorded on the card statement so that the company can monitor how and where the card is being used.** **How to Get a Corporate Credit Card?** --------------------------------------- **As per the US credit card issuing company requirements, the employee’s firm should have a minimum annual revenue of $4 million for it to be eligible for a corporate credit card. It should also have minimum transactions of at least $250,000 every year.**  **In India, the eligibility requirement may vary depending upon the issuing company, but the firm should have a minimum annual turnover of Rs 10 crore, and that should have been functioning for at least two years. Other requirements that may vary depending upon the issuing company are more than 15 users of the card, and the firm must be registered as a C or S corporation. Issuing companies normally review the company’s audited financial statements, tax information, and the structure of the company. Many corporate credit card companies also cater to the need of startups.** **What are the Benefits of a Corporate Credit Card?** ----------------------------------------------------- **A corporate credit card has myriad benefits to established companies as well as startups that have freshly received funds from investors. Let’s examine a few:** No personal charges **The employee does not have to bear the charges even if they are incurring the expense. The card pays for the charges for the company business.** **Promotes company growth** **Since the funds are readily available to the employee, there is no delay in the operations of the company, helping in the promotion of growth of the company.** **Credit score** **The corporate credit card increases the credit score of the company and doesn’t affect the credit score of the employee.** **Fraud reduction** ------------------- **You can keep track of how the funds of the company are being used to pay for the expenses and reconcile them with the card statement. This transparency helps in reducing fraud and maintains the security of the funds.** **Conclusion** -------------- **A corporate card is an important weapon in the arsenal of the company. It helps in expense management.  Moreover, the employees do not have to spend personal funds and increase the work of the company to reimburse them through [wire transfers](https://www.salt.pe/blog/wire-transfer-faqs-receive-money-to-india-with-tips-cl5cgh94t344211po71j9zbxn9) or other methods. A startup or an SME can take advantage of the corporate cards by increasing their credit score and by making prompt decisions so that the business operations are not delayed.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Receive Money From Abroad To India Author: Ankit Parasher Published: 2022-08-18 Category: Inward Remittance Meta Title: How To Receive Money From Abroad To India Meta Description: Wire Transfer? Multi-currency account? Payment Gateway? Learn different ways to transfer international money online and the factors to keep in mind while making international transfers to India. Learn Tags: international payements , Early stage startups, International Wire Transfer, MSMEs in India, cross border payments, SMEs, receive payments from abroad, payment gateway, multicurrency account, Wire transfer, receive money from abroad URL: https://salt.pe/blog/how-to-receive-money-from-abroad-to-india ![How-To-Transfer-Money-From-Abroad](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/receive-money-abroad-to-india-1660808014371-compressed.jpg) Rapid globalisation has driven startups, SMEs and ambitious individuals to shatter geographic borders and expand all over the world. Such expansions mandate global transactions and cross-border payments frequently.  In recent times, Indian businesses and startups have levelled up to their global counterparts. Let's look at how Indian citizens and companies can accept foreign payments easily and efficiently.  Factors to keep in mind while making international transfers to India --------------------------------------------------------------------- International payments can be carried out in many ways, but they don’t come without costs. Here are a few things to consider so that cross-border payments do not cost a bomb.  ### Amount of money to transfer As an early-stage startup, if you are to receive payments from abroad, some tax will be levied depending on the amount of money. The taxable amount will be discussed further after a few sections. It is recommended that SMEs or startups accept payments from abroad in a single tranche rather than several smaller payments to minimise the bank commission and GST slabs imposed on currency conversion.   ### Delivery time The time taken to make cross-border payments is extremely crucial. When finalising the mode of international payments, do not forgo the urgency of money requirement, if any. When a sender and a receiver agree upon a transaction approach, the number of days that would be taken to complete the transaction should be prioritised. Be aware that money transfers do not occur either on the weekends, i.e. Saturdays and Sundays, or on public holidays. ### Exchange rate The foreign exchange market never shuts down, so the exchange rates keep changing. When making cross-border payments, it is ideal to lock a rate at favourable numbers to avoid sending money overseas at exorbitant rates.  ### Transfer fee When international payments are received in India or any country, a fee is charged by the money transfer provider to execute the transfer successfully - both from the sender and the receiver. Banks and transfer companies markup prices at high rates. So, one must confirm any such fee associated with the cross-border payment.  Ways to receive international payments to India ----------------------------------------------- With the world merging into a global community, we can send and accept payments from abroad in numerous ways. Here are some of the most popular ways to receive international payments to India: ### Wire Transfer Wire transfer is a popular method for SMEs and corporations to receive payments from abroad. Essentially, a wire transfer is transferring money from one bank account to another electronically without moving actual cash. For an international wire transfer, the required details to be submitted are:  * **Recipient's details - name, address and bank account number** * **IFSC code of the recipient bank** * **SWIFT (Society for Worldwide Interbank Financial Telecommunication) /BIC (Business Identifier Code) number of sender and receiver bank** **Know more about [wire transfers](https://www.salt.pe/blog/wire-transfer-faqs-receive-money-to-india-with-tips-cl5cgh94t344211po71j9zbxn9) for cross-border payments.** ### **Multi-Currency Account** **With a multi-currency account, individuals and companies can receive payments from abroad in several currencies without incorporating their business abroad.** ![Multi-currency-account-for-international-transactions](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-receive-money-from-abroad-to-india-1660808150100-compressed.jpg) Multi-Currency Account by Salt **Normal bank accounts may be unaffordable for SMEs and startups due to their high fees and tedious money transfer periods. With a multi-currency account like Salt you can receive payments in foreign currencies like USD, GBP, EUR, SGD, etc at a flat fee of 1.75 % of the amount only.** Salt provides a multi-currency account service for free and online convenience that aptly meets the demands of SMEs and early-stage startups. [Learn more about the ABCs of multi-currency bank accounts for international money transfers here](https://www.salt.pe/blog/multi-currency-accounts-for-businesses).  Payment Gateways **Online payment gateways like PayPal offer simple, transparent and lightning-fast fund transfer services. It is advisable to check out their technology and other supported features in addition to costs. Many payment gateways offer a variety of payment methods and support integration with third-party services and apps like credit or debit cards, other currencies, and even cryptocurrencies. Additionally, they offer recurring billing services, point of sale assistance, and subscription services.**  However, payment gateways are known to add extra costs like - outrageous exchange rates, fixed fees or transfer fees per transaction, which is confusing and overwhelming for SMEs or early-stage startups. Also, there is not much support for customers looking for guidance during international payments.  **Is money transferred from abroad to India taxable?** **According to India's [Foreign Exchange Management Act (FEMA)](https://legislative.gov.in/sites/default/files/A1999-42_0.pdf), money received in India from a relative living overseas as a gift or for family support is not subject to tax. ​** **However, international money from global clients and investors for SMEs or corporations does not fall under the above-mentioned category.**  **Money transferred from abroad to India as funds or payments is taxable. For instance, if freelancers receive payments from abroad, the amount is added to their annual income for the year and taxed accordingly. Taxes are imposed on any amount over Rs. 50,000 received by an individual from a client.​** **If a business, startup, or SME receives cross-border payments, income tax is levied on the company's profits, not the credited amount.**  **Conclusion** **Receiving payments from abroad is one tricky and complicated process to see through. There are plenty of methods to ensure a secure money transfer across borders. Salt offers truly borderless solutions for global banking. With Salt,  companies in India can collect payments from across the globe in different currencies in less than 24 hours at the most affordable rates.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is A Wire Transfer And How Does It Work? Author: Ankit Parasher Published: 2022-08-16 Meta Title: What Is A Wire Transfer And How Does It Work? Meta Description: Bank wire transfers are an easy way to receive or transfer funds, but before doing so, you must understand how a bank wire transfer works and what they are. Tags: WIRE transfer safe , WIRE , Wire payment, International Wire Transfer, international money transfer, how bank transactions work, How to make a wire transfer , wire payments , international wire payment, wire transfer for business, safe transfer URL: https://salt.pe/blog/what-is-a-wire-transfer There are multiple ways to send money, including cheques, apps, and internet banking. When it comes to transferring funds, opting for methods that are speedy, secure and simple to use always remains the top priority. If such factors play an important role in your personal needs, money transfers using wire transfers online may be an appropriate option. ![WIRE-Transfer-Explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-does-a-bank-wire-transfer-work-1661412417204-compressed.png) Surely there must be some completely valid and wide range of questions that might be coming to your mind while thinking about wire transfers, such as how does a bank wire transfer work? How do I do a bank wire transfer? How long does it take for a wire transfer? are wire transfers online? Etc. Well, do not worry, for we have got you covered. In this article, we will deeply explore the topic of wire transfers and cover any questions you may have about them. Let’s explore.  What is a Wire Transfer? ------------------------ Wire transfers, also termed wire payments are simply transfers of funds that take place online. They are managed by banks and transfer service providers throughout the world. They enable two parties to safely transfer payments even if they are living in different places anywhere around the globe.  An individual making a wire transfer must provide certain information about the recipient, such as their name and account number, as well as information about the institutions that will send and receive the money. Unlike physical currency exchanges, wire transfers are settled electronically rather than physically. One can transfer them between banks or via non-bank services as well. Before being settled, all transfers are routed through a domestic automated clearing house (ACH). A fun fact for you about wire transfers:  In the U.S., The Office of Foreign Assets Control monitors international wire transfers to prevent money from being sent to terrorist organisations or used for money laundering. How does a wire transfer work? ------------------------------ ![How-does-wire-transfer-work](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-payments-wire-transfer-1-1661412457604-compressed.png) Now let us understand the overall process of exactly how does a bank wire transfer work. Wire transfers are initiated by approaching a banking institution and requesting the transfer of a certain amount of money. For the bank to know where the money should be delivered, the sender provides SWIFT or IBAN codes for the recipient.  A transaction will only be initiated when the sender deposits the funds to be sent and the transaction fee set by the sending bank. The sending bank sends a message to clear the funds using a secure channel such as SWIFT (Society for Worldwide Interbank Financial Telecommunication). The SWIFT network is the most often used method of wire transfer. It is a communication protocol. In over 200 countries and has a network of more than 11,000 banks. Data is transferred between banks using this network. In addition, it provides instructions on how to make a wire transfer. A notification instructs the recipient's bank to complete the payment according to the instructions after the funds clear. In some cases, the funds may take many hours or even days to reach the recipient's account from when the transaction was initiated. To settle the payment, both of the banks involved in the process must have a joint account with each other. Otherwise, they can deploy the SWIFT network’s utilities to form a common bridge for value transfer.  This section sums up the overall process of how does a wire transfer work. Hopefully, it has helped you understand and answer the question ‘how do I do a bank wire transfer.’ One thing you should always keep in mind, though, with bank wire transfers, there is [certain information that is required to make a successful wire transfer](https://www.salt.pe/blog/what-information-is-needed-for-wire-transfer). A word of advice here is just to keep whatever information is needed handy. Types of Wire Transfers ----------------------- To understand wire transfers better and how a bank wire transfer works, let us take a look at the two types of wire transfers that are conducted. ### #1 Domestic Wire Transfers A domestic wire transfer is any wire payment between two banks or institutions operating within the same nation. There are two types of domestic transfers: interbank and intrabank transfers. To complete transactions, people sending the funds may be required to present a code or their branch number. These transactions are usually executed on the same day and are generally received within a few hours of being made. ACH (automated clearing house) is needed to send a domestic wire transfer, which can be done within a day of receiving the request. ### #2 International Wire Transfers International wire transfers start in one country and finish in another. Although senders may have an account at the same bank as their recipient from another nation, they are required to conduct international transfers. These payments necessitate the use of a route or SWIFT code. It usually takes two to five business days for wire transfers to be received. A domestic ACH and its foreign equivalent must also clear international wires on the same day. Advantages and Disadvantages of Wire Transfers ---------------------------------------------- There are a lot of positives when it comes to wire transfers. Bank wire transfers are an easy way of sending money to anyone. International wire transfers generally settle in a couple of days, and domestic wire transfers usually end up being processed on the same day the transactions have been made. As you do wire transfers online, they are more secure and less prone to be lost in the mail than sent checks. Furthermore, they are trustworthy: While checks can bounce, a wire transfer can only be started if the sender has enough money in their account. However, there are still some disadvantages when it comes to making wire transfers online. Banks frequently impose a fixed cost for wire transactions. This can consume a significant portion of the transmitted sum, especially in smaller transactions. Furthermore, some banks impose a daily limitation on the total number of wire transfers that can be wired. FAQS  ----- Now let us tackle some general FAQs that can easily pop up in your mind when dealing with wire transfers. ### #1 Are wire transfers secure? Wire transfers are relatively safe and secure, as long as you know who receives them. All parties supposed to be involved in a wire transfer transaction should be obligated to establish their identity if you use a legal wire transfer service, making anonymous transfers impossible. As mentioned before, The Office of Foreign Assets Control overlooks international wire transfers in the U.S. In India, wire transfers come under the purview of the RBI. Institutions such as these that overlook wire transfers have certain scenarios in place that need to be on the lookout for throughout the monitoring process. Some of these scenarios can be any of the following:- 1. **Transfers to safe-haven nations** 2. **Account transfers to people who do not hold an account** 3. **Transfers regularly for no discernible cause** 4. **Sending and receiving wires transfers online of the same monetary value** 5. **Cash firms wire large sums** **Overall, wire transfers online are secure, but there are always risks to everything. So at the end of the day, it falls to you and your decision to opt for wire transfers or not, all the while doing the necessary research.** ### **#2 What are the risks of wire transfers?** **While wire transfers are one of the safest modes to transfer value, risk factors exist for everything. One of the major risks that come with wire transfers online is when scammers gain control of another person's bank account and make withdrawals or re-route assets to some other account. Account holders may be unable to reclaim their funds in such circumstances should they report the incidents early before the scammers carry out their plans. Also, it is difficult to reverse a wire transfer in the case of changed circumstances or wrong transfers.**  ** ### #3 How long does it take for a wire transfer to be complete? Answer: Domestic bank wire transfers can take anywhere from one day to even three days, but they are usually much faster, particularly if the sender and receiver of wire transfers are using the same banking institution to complete this transaction. International wire transfers might take approximately five business days to process and come through completely. However, a wide range of factors can affect the overall period of wire transfers. Factors like bank holidays and other circumstances may create hindrances and delays of up to three weeks. ### #4 When should wire transfers be used? Answer: Wire transfers are widely used for domestic and international transactions in the United States. They are ideal for international transactions since they can easily convert to another currency if necessary. Other variables include the requirement to finish a transfer quickly or shift huge sums of money. Most domestic transfers are done on the same day, and international transfers are usually processed quickly (the time period depends on the country). Though restrictions vary depending on the payment processing operator, they are typically substantial. As a result, wire transfers are frequently used to pay bills, send money to family members, or complete real estate transactions. How does Salt help with international payments? ----------------------------------------------- With its user-friendly interface and fast, secure borderless transactions, SALT is an optimal solution for international payments and making wire transfers online. SALT, offers international payments and compliances services to startups, SMEs, freelancers, all without any hidden fee or additional fees or markups. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## List of Information Required For WIRE transfer - International Transactions Author: Ankit Parasher Published: 2022-08-16 Tags: delayed wire transfer, International Wire Transfer, international money transfer, cross border payments, Wire transfer URL: https://salt.pe/blog/wire-transfer ![How-to-make-a-wire-transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-transfer-information-1660737792479-compressed.jpg) Cross-border payments have typically been a time-consuming and expensive process, as evidenced by endless networks of middlemen and hidden fees involved. Fortunately, changes in the market over the previous several years mean that people and SMEs can now take advantage of quicker, inexpensive, and value-added foreign money transfer services. However, one must have proper information and knowledge about the prerequisites and steps. Contents * [What is WIRE transfer?](#what-is-wire-transfer) * [Types of WIRE Transfer](#types-of-wire-transfer) * [Domestic transfers](#domestic-transfers) * [International transfers](#international-transfers) * [How to send a WIRE transfer?](#how-to-send-a-wire-transfer) * [Are WIRE transfers safe?](#are-wire-transfers-safe) * [How to track WIRE transfers?](#how-to-track-wire-transfers) What is WIRE transfer? ---------------------- A wire transfer refers to electronically transferring money from one bank account to another. Such cross-border payments or domestic transactions are initiated by a person or company in favour of another while being in any part of the world. Popularly called wire payments, wire transfers are transfers of funds without any physical cash aided by a common banking infrastructure.  The cost of a wire transfer differs from bank to bank and increases with an increase in the amount of money transferred to another country from India. In case someone receives international payments from abroad, in the form of a wire transfer, in that case, the charges will apply on the sender’s side and will depend on the bank and their country of residence. For instance, in the US, a typical wire transfer can cost anywhere between $0 to $50, while in India, these charges may range [between INR 500-1,000.](https://moneytransfers.com/banks/indian-bank)   Types of WIRE Transfer ---------------------- Depending on the geographical location of the sender and the receiver, wire transfers are classified into two categories: Domestic transfers and International transfers, both kinds being further categorised as inter-bank and intra-bank in nature. ### Domestic transfers Any wire transfer between two banks or other financial institutions in the same nation is referred to as a domestic wire transfer. To complete a domestic transaction, senders may need a code or the recipient's branch number. Domestic wire transfers can be transacted within a few hours and are typically processed the same day they are initiated because these require passing through a domestic [automated clearing house (ACH)](https://www.fiscal.treasury.gov/ach/#:~:text=The%20Automated%20Clearing%20House%20\(ACH,and%20payments%20are%20made%20online.). An intra-bank transaction signifies that the transfer's sender and beneficiary are customers of the same bank. Simply put, funds are transferred from one account to another within the same bank. An inter-bank transfer is between two different financial institutions or banks. Inter-bank domestic wires are transferred from one bank and deposited into another bank's account, which is the bank account of the recipient. ### International transfers International wire transfers start in one nation and are complete in another. Even when sending money to some party abroad with an account with the same bank, senders are required to send via international transfers. The routing or [SWIFT (Society for Worldwide Interbank Financial Telecommunication) code](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) is necessary for international wires. Usually, such wire transfers arrive within 2-5 business days. The extra day is due to the mandate that international money transfers must clear a local ACH and its foreign equivalent.  When a cross-border payment is made from one country to another, and both the sender and the receiver bank are the same - such an international money transfer is categorised as an intra-bank international wire transfer. Banks often conduct inter-bank transactions using the SWIFT network, implying that transfers can be sent directly without needing a central bank.  An international wire must comply with all legal requirements of the sender’s country of residence, the intermediate bank, and the recipient’s country of residence. Due to this, the process can take a little longer than with other wire transfer services. Depending on the location of banks, several banking networks like the INET (Interbank Network for Electronic Transfers) can be utilised for inter-bank international wire transfers. How to send a WIRE transfer? ---------------------------- You can find relevant details [here](https://www.salt.pe/blog/the-cross-border-payments-landscape-in-india) if you have to send a wire transfer for your startup or corporation task in India. To send a wire transfer, you can fill in a form at your bank and fill in details such as: * **Name and address of the recipient** * **Bank account details of the recipient** * **BIC (Business Identifier Code) /SWIFT code of recipient bank - These are international standard format codes for identifying banks and financial organisations, and they are frequently used interchangeably. 11-digit SWIFT codes include the bank, nation, city, and branch codes.** * **IBAN (International Bank Account Number) - Depending on the location, you can enter up to 34 characters. The first two represent the nation, followed by two cheque digits, then the bank account number (up to 30).** **Example: IN 32 WXYZ 202485 123456** **Are WIRE transfers safe?** ---------------------------- **Generally, a wire transfer is secure as long as you know the recipient well and fill in the details on the wire transfer form carefully. A trustworthy service will confirm the legitimacy of each party taking part in a transaction, making anonymous transfers impossible. Suppose a network of issuing, clearing, and receiving institutions is available. In that case, a member can instantaneously send a little or big amount of money across state lines or worldwide using a wire transfer. Wire transfers are a quick, dependable, and secure way to send money when done correctly.** **How to track WIRE transfers?** -------------------------------- ![Delayed-wire-transfer-reasons](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/information-required-for-wire-transfer2-1660737861301-compressed.png) ** If you have sent across a wire transfer for your SME, you can ask for a wire recall if you detect that your wire isn't being posted to the appropriate account. In such cases, your money gets deposited in your account. As it becomes more difficult to recover funds once they have been credited to another account, it is best ot inform the bank as soon as you find the issue.  If you are looking for smooth international money transfers and financial services for your SME or startup at the most affordable rates, SALT offers trustworthy services across the globe. You can create a truly borderless account and receive payments from abroad to your Salt bank account at the lowest rates and in multiple currencies. For both SMEs and independent contractors who operate and transact internationally, Salt aims to simplify money transfers and compliance handling. ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Accept International Payments As A Freelancer - Working with Overseas Clients Author: Ankit Parasher Published: 2022-08-16 Category: Freelance Tags: Indian freelancer, accept intenrational payments, receive international payments , Freelancers, international money transfers URL: https://salt.pe/blog/accept-international-payments-as-freelancer ![Accept-international payments-as-a-freelancer ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/international-payments-indian-freelancer-1660637560162-compressed.jpg) The Indian economy is currently heading in the direction of an unpredictably abrupt transformation. The economy is recovering, but the aftermath of COVID-19 has still left a lasting effect on it. Due to its universal adaptability and independent lifestyle, freelancing is indeed the future of work culture and has easily managed to ingratiate itself into the Indian worldview. The pandemic time saw companies laying off employees on the one hand and the simultaneous rise of the gig economy on the other. By 2020, there were [15 million freelancers](https://en.wikipedia.org/wiki/Freelancing_in_India#:~:text=India%20has%20about%2015%20million,the%20growth%20of%20start%2Dups.) deploying their skillsets to provide momentum to the startup economy in India, and the number has been growing ever since.  Also, since most startups and businesses now choose to use freelancers to work on their projects and handle their needs, the freelance industry is rising continuously and has become a preferred career choice for many today.  India had become the second-fastest-growing freelance market around the globe in 2020, with 46% quarter-on-quarter growth, registered during the same period as a result of the large number of people looking for other employment options after losing their jobs during the pandemic. Challenges You May Face While Dealing With International Payments ----------------------------------------------------------------- Freelancing is synonymous with self-employment. At the current rate of growth, the gig economy is a full-fledged independent sector in India, adding value. However, business growth is always dependent on potential customers. Indian freelancers' income and payments depend on how much the client is willing to pay for their services and how a freelancer should manage their finances, given that they have to handle every aspect of their work finances.  Usually, the best option for Indian freelancers is to opt for international clients. However, the main problem that freelancers face is the payments. Questions such as how to receive international payments in India or the best way to receive [international payments](https://salt.pe/blog/multi-currency-accounts-for-businesses) in India pop up. ### #1 Exchange Fees Exchange fees are one of the most difficult aspects of getting foreign freelancing payments. The majority of international customers pay in US dollars or their regional currency. This means that whenever you accept international payments in India, you must pay currency exchange fees. This can range anywhere from 1 percent and 4 percent of the entire sum of the payment. ### #2 Credit Card Payments There are different fees for different payment methods. Suppose you accept international payments in India through the use of platforms like Paypal or with a credit card. In that case, you will be obligated to pay an additional 3 - 4 percent of the total amount in fees. ### #3 Time taken for international money transfer  The overall process of [receiving payments from abroad](https://www.salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india)[](https://salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india) can be lengthy and time-taking due to multiple factors such as gazetted holidays in different countries falling on different days and may hinder the process as banks are closed on such days. There is also the fact that with bank transfers, the payment first passes through several intermediary banks before reaching you. This may also lengthen the process when you try to accept international payments in India. ### #4 Payments in Multiple Currencies Another major challenge freelancers face when trying to figure out the best way to receive international payments in India is the payments received in multiple currencies and the need to get them converted into domestic currency before the payments can be credited at the local bank account. As a freelancer, if you are actively taking on international clients from several different countries, there will be multiple types of currencies involved. You will require multiple services or accounts to accept international payments in India. Factors to keep in mind while choosing a payment provider --------------------------------------------------------- ![How-To-Choose-The-Payment-Provider-For-International-Payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/choosing-payment-provider-as-a-freelancer-02-1660638017860-compressed.jpg) ### #1 Credibility Online money transactions can be a dangerous business, and you should take the safety of your assets seriously. While trying to find out how to receive international payments in India and also the best way to receive international payments in India, you should be extremely careful and always do thorough research. Going through customer reviews, gathering as much information as you can before opting for any payment service, and understanding the risks can keep you and your payments safe. ### #2 Fees involved in the process Exchange Fees, wire transfer fees, platform fees, etc., are some of the fees you should be aware of when taking on international clients and planning to accept international payments in India. If you do not do enough research and educate yourself about what kinds of fees apply and where and how much they are, you may face many issues. So it is fundamental to know about such fees when dealing with international transactions. ### #3 Method of payment There are multiple ways through which you can accept international payments in India. Bank-to-Bank transfers, wire transfers, payment platforms, credit card transfers, and many more are available at the disposable of Indian freelancers. ### #4 Which currencies are accepted Almost all international internet banking systems accept payments in major currencies. However, if you don't engage directly with companies in those countries and instead work in markets closer to you, you'll want to look for services that cater to those currencies. Salt: An all-in-one solution for Indian Freelancers SALT neo-banking solutions provide one of the best ways to receive international payments in India for an Indian freelancer. It provides 24-hour money transfers, and there are no yearly or subscription fees, no other hidden or additional fees, zero markup fees, and no required minimum transfer amount as well. Salt offers freelancers a complete solution for managing their international finances in the simplest and easiest way possible! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Value a Startup for Seed Funding? Author: Ankit Parasher Published: 2022-08-06 Meta Title: How to Value a Startup for Seed Funding? Meta Description: Read the blog to find answers to: - Key points that early stage startups should keep in mind before valuation. - How to calculate the valuation of a startup for seed funding. Tags: Angel Investors, seed stage startup , VC and Angel Investor, Pre money valuation , seed funding valuation, startup valuation, MSME Day, startup, pre seed funding URL: https://salt.pe/blog/how-to-value-a-startup-for-seed-funding ![Pre-Money-Valuation-of-A-Startup](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/how-to-value-startup-for-seed-funding-1659768150799-compressed.png) Usually, seed funding is the first equity funding of an early-stage start-up. As a startup's lifeblood, it's vital that the value of the business is evaluated carefully to ensure investors' interests while simultaneously taking care of early-stage startup founders’ goals and objectives for [pivoting their dream business](https://salt.pe/blog/pivot-your-startup-fearlessly-not-stupidly-dos-and-donts-cl45bqv29387861np3oqkpfpze). Typically, seed funding is at a premature state of the business, which is at the pre-revenue stage. The analogy can be explained by considering how farmers harvest produce by planting seeds.  Business valuation can be an arduous job for startups that essentially have no assets or history to refer to, given they are at an early stage in their life cycle. There are many variables are at play when valuing a company for seed funding. The process is also neither straightforward nor one-size-fits-all.  While some may believe that the valuation of a startup is hard science and requires the analysts' immense dedication to leaving no space for errors, it's also an art where analysts can add value to the startup by playing with the numbers and presenting them in a desirable way to the VCs or angel investors.   Here are a few points that should be kept in mind by early-stage startups before deep diving into the theories and formulae of valuation: 1\. Whether the company is in a Hot Sector or Cold Sector --------------------------------------------------------- **If a company specialises in an industry or sector that is redundant or cold, the potential investors can draw their hands back. A company thriving in a booming industry or a hot sector holds a higher chance of getting funding and even sometimes premiums from investors.** 2\. Marketing Strategies ------------------------ At the initial stage, the companies searching for seed funding have no products or services available for sale. However, the management team has to decide the marketing strategies beforehand to assure the investors of trusted distribution channels that are efficient and serve a large mass of target customers. The investors can get an insight into the growth of the business in this manner. **3\. Is the Business Prototype Ready?** ---------------------------------------- **A prototype is the basic model of the product or service the startup aims to provide and is tested in real-life scenarios to gauge its validity and usability. Designing an ideal prototype is a major factor in gaining investors’ interest. Hence, before presenting your pitch to the investors, double-check your prototype.** **4\. Relevance to Market Trend ----------------------------- Another important factor to consider is the market trend, that is, whether the product or service is in demand by the customers. Does the startup promise traction? If the company holds traction, it shows that the growth and development of the business are likely to move upwards on the chart, which is a plus point for the investors.** ** 5\. Founders’ Image ------------------- Investors might also be interested in the reputation and the public image of the company's founders. A good and positive image of the founders sheds a healthy light on the business and may attract investors. For example, a serial entrepreneur with a successful company launching another startup will gain positive responses from the investors 6\. SWOT Analysis ----------------- An in-depth SWOT (strength, weaknesses, opportunity, threat) analysis performed by the management team of the company will give a thorough idea of the business. The management team can glean an idea of where the company stands in the market and what it is actually worth and value it accordingly. 7\. Comp Analysis ----------------- Investors may use comp or comparable home analysis to understand the value of the startup by comparing it with companies that are similar in size, location or of the same sector or industry of their company to calculate its standing in the market. **** 8\. Competition --------------- If the startup is a hot sector model with innovative ideas, maybe ones that have never been heard of, there might be a hoard of investors looking for stakes in the company. In such a case where there is high competition in the deals offered by the investors, the founder holds leverage and can negotiate the amount of investment, thus increasing the value of the company. Other major consideration points are growth rate, the volume of the target audience, market conditions, the expertise of the management team, and diversity in skills. How to Calculate the Valuation of a Startup for Seed Funding  ------------------------------------------------------------- The next step, obviously, will be to select a suitable method of valuation. Few valuation techniques for startups that require seed funding from angel investors, VCs, etc., are the Venture Capital method, Berkus Method, Scorecard Valuation Method, Risk Factor Summation Method, Asset-based / Book Value method, Discounted Cash Flow, etc.  Below are a few valuation techniques for startups that require seed funding from angel investors, VCs, etc. ** ### **#1 Venture capital method** **The venture capital method of seed funding is essential to attract and serve venture capitalists.  The procedure begins with estimating future revenues and then moves to identify business exit plans. The method requires multiple pre-money valuation formulae. Let's look at the two steps:**  ** Step 1: Calculate the Terminal Value  Terminal value is a projected value of a startup at a particular time in the future.  1) Forecasted revenue in the harvest year 2) Forecasted profit margin in the harvest year 3) Calculate the industry P/E ratio Where harvest year is the exit year of the start-up and P/E is the price per earning ratio. Terminal value = Forecasted revenue x Forecasted profit margin x P/E ratio Step 2: Calculate Pre-money Valuation Pre-money Valuation = Terminal value/ ROI - Investment amount Let's understand better with an example, suppose a company in the IT sector forecasts revenue of $20 million in 5 years with a 10% profit margin, and the industry P/E ratio is 30. ROI is 10 times the planned investment of $2M Terminal value= $20M x 10% x 30 = $60M Pre-Money Valuation = $60M / 10 - 2 = $4M Hence, the calculated pre-revenue startup valuation is $4M. In the next 5 years, the company can value $60M if it receives  $2M as seed funding. ** ### **#2 Berkus Method** **Dave Berkus, a venture capitalist and angel investor, suggested a gospel for startup evaluation in the 1990s, which was also published in 2001 in the book "Winning Angels" by Amis & Stevenson. According to Berkus, only one in a thousand startups are able to meet or go beyond their forecasted revenue in the promised period. There are five key elements of a startup with values attached to them:** ** 1. Sound Idea (Basic Value) 2. Prototype (Reducing Technology Risk) 3. Quality Management Team (Reducing Execution Risk) 4. Strategic Relationship (Reduce Market Risk) 5. Product Rollout Sales (Reducing Production Risk) A value of $500K is assigned to every aspect stated above, as Berkus assumes a startup should be able to generate $20M by the end of the fifth year. If the company can put the required $500k value in every area, it is eligible for a $2M or $2.5M pre-revenue evaluation. However, in 2016 Berkus said that his method is biased by a few restrictions as well as should only be used for suggestions and considerations rather than as the ultimate method of valuation. ** ### **#3 Scorecard Valuation Method** **Created by Bill Payne, the scorecard method for valuation is for startups that aim to get funding from angel investors. In this method, the startup company to be valued is compared with another similar company at the seed stage to examine its value.**  **Let's look at the three steps under this method:** ** Step 1: Determine the two companies: 1. Target company: The company that requires funding and is up for valuation. 2. Company to compare: A recently invested company or a company in the same sector, industry, or market as the targeted company. Step 2: Next step is to determine the pre-money valuation of the company to be compared with. Step 3: Now, both the companies are compared on the ground of : 1. Strength of Management: 0-30% 2. Size of Opportunity: 0-25% 3. Product/Technology: 0-15% 4. Competitive Environment : 0-10% 5. Marketing & Sales:  0-10% 6. Need for Additional Capital:  0-5% 7. Miscellaneous Factors: 0-5% Each aspect is given a fixed weight based on its importance in the calculation of the company's value. For the targeted company, each aspect is given a rating of below average (<100%), above average (>100%), or at par (100%). At last, the summation of the aspects is multiplied by the pre-money valuation to get the value of the targeted company. ** ### **#4 Cost - to - Duplicate** **This method works on the principle of duplication of the startup and calculates how much it would cost to construct a similar business from scratch. If the cost to duplicate is low, then the startup holds very little value. However, if the duplication of the startup is expensive, then the value of the company increases.** ** The method allows no space for human errors while calculating the reproduction costs and total assets. For example, in a manufacturing company, the cost of production, cost of labor, cost of machines, etc., are included in the calculation. A downside of this method is that it doesn't consider intangible assets like business growth, future potential revenue, customer retention, brand name, and other such aspects while calculating the value of the company. ** ### **#4 Discounted Cash Flow** **Startups with no historical performance are ideal for being valued by this method that looks at the future performance of the company. It forecasts how much cash flows the company will bring in the future. Then the cash flows are discounted at a discount rate or at a certain rate of investment prevalent in the market.** ![How-to-valuate-pre-money-startup](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/discounted-cash-flow-method-2-1659779261490-compressed.png) **CF = Cash Flow** **DCF = Discounted Cash Flow** **r = Discount rate** **Future cash flows are discounted as the value of the cash flow in the present is more than the value in the future years. The higher the discount rate, the riskier the investment in the company.** **To value startups might be a tricky endeavour but not an impossible one. The [business valuation report](https://salt.pe/blog/business-valuation-report) doesn't provide absolutes but estimates that the investors have to club with their experience, intuition, and expertise to put money into startups. The third and final step for startups and SMEs is to understand [the difference between Pre-Money and Post-Money valuation of an early-stage startup](https://salt.pe/blog/pre-money-valuation-and-post-money-valuation).**  **Valuation is crucial for every startup or SME, for it helps them decide the amount of equity the early-stage founders need to give to venture capitalists and angel investors. [Table by Salt](https://www.salt.pe/table) provides solutions to entrepreneurs and founders to get their valuation report prepared diligently while making sure fundraising and compliance sorted in a hassle-free way.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is a Purpose Code? Why is Purpose Code Required? Author: Sudhanshu Choudhary Published: 2022-08-04 Category: Purpose Code Meta Title: What Is A Purpose Code? Why Is It Required? Meta Description: Purpose codes are mandatory for inward and outward remittances in India. But do you know what the purpose code is and why it is needed? Find the answers here. Tags: MSMEs in India, cross border payments, startup, purpose code, purpose code for payments, Inward Remittance, cross border transaction, inward and outward remittance URL: https://salt.pe/blog/purpose-code-for-international-money-transfer ![Purpose-Code-Explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/purpose-code-1681716203866-compressed.jpg) Small and Mid-sized Enterprises (SMEs) [represent about 95-98%](https://www.econstor.eu/bitstream/10419/192968/1/SMEs%20SECTOR.pdf) of the total industrial enterprises around the world. However, these businesses frequently lack access to critical financial services and risk-mitigation strategies when it comes to international trades. Small, medium and large businesses indulging in international trade require to transact with their global clients and send and receive international payments. An international business payment is any payment made by a company to a person or organisation located outside of the country. Contents * [What is the Purpose Code?](#what-is-the-purpose-code) * [Find Out The Purpose Code For International Transactions](#find-out-the-purpose-code-for-international-transactions)  * [Countries Mandating Purpose Codes for Cross-Border Payments](#countries-mandating-purpose-codes-for-cross-border-payments) **SWIFT, RDA, and MTSS (Money Transfer Service Scheme)** make it simple to transfer money anywhere in the world. Such money transfers are typically governed by the central banks of various countries. Every country has its own set of rules and regulations in place to govern financial markets and foreign remittances. In India, remittances are governed by the **Reserve Bank of India (RBI)** and the **Foreign Exchange Management Act (FEMA).**  In India, for any remittance, you need to provide the [purpose of such remittance](https://www.salt.pe/blog/the-cross-border-payments-landscape-in-india) for it to be successful. From education to business, the purpose of remittance can be many. Therefore, to avoid any confusion and for the smooth processing of the system, RBI has issued a list of purpose codes to be used during any kind of foreign transaction. But what exactly is a purpose code? Let's have a look. Watch this Youtube video on [What is Purpose code in international transactions.](https://youtu.be/dUlPQqcFgAo)​ What is the Purpose Code? ------------------------- A purpose code is a code issued by a country's central bank that is required for successful cross-border transactions. The code is assigned to each transaction involving foreign currency and states the purpose for which the transaction is being made. Purpose codes from both the sender and receiver countries may be required when making a cross-border payment in order to meet the regulatory requirements of the banks issuing the codes. In India, the purpose codes issued by the RBI are of two categories: * **Payments received by Indians or for inward remittances in foreign currency**  * **Payments sent by Indians or for outward remittance in foreign currency** **In other words, the purpose code assists regulators in determining the precise nature of a cross-border transaction. For example, if the purpose of your foreign transaction is 'purchases for travel,' you must use the code P0301 when processing the transfer. If you use a payment system like PayPal to receive payments in foreign currency, you must select the correct purpose code before you can withdraw funds from your PayPal account to your local Indian bank account. You only need to enter the purpose code once, and it will be used as the default reason for all future payments. To accept international payments in India, you will also need a [Foreign Inward Remittance Certificate (FIRC)](https://www.salt.pe/blog/foreign-inward-remittance-certificate-explained) along with the correct purpose code.**   **The RBI has a specified list of Purpose codes that are required to be included in the details for every remittance so as to specify the nature of the transaction and the individual reason for which the transfer is being made. These codes allow the RBI to classify remittances. No wonder, purpose codes are essential in India, given that India is the largest receiver of inward remittances globally. One needs to keep one’s finances sorted!**  Find Out The Purpose Code For International Transactions  --------------------------------------------------------- ![Purpose-Code-Tool](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/screenshot-2023-04-12-at-11-1681279663770-compressed.png) [Find Your Purpose Code For International Transfer](https://www.salt.pe/purpose-code) We have created a tool that helps businesses to find out the purpose code that is required to be filled when you are initiating an international transaction. You can simply find the related purpose code by writing the related keyword. [Find out the purpose code.](https://www.salt.pe/purpose-code)​ Countries Mandating Purpose Codes for Cross-Border Payments ----------------------------------------------------------- **Cross-border payments are not something new. In 2021 the amount of B2B cross-border payments around the world was a [whopping $143.5 trillion](https://www.statista.com/statistics/609723/value-of-cross-border-payments-by-type/). And with the increasing amount of cross-border transactions, it is important for financial institutions to keep track of the inward and outward remittances. India is not the only country mandating purpose codes to execute cross-border transactions successfully. Countries like Bahrain, China, Malaysia, and the United Arab Emirates have issued purpose codes through their central banking authorities for regular cross-border transactions. However, one of the major issues in today's cross-border payment system is its high fees. But worry no more, as SALT has already taken major steps to resolve the issue.** ### **How Does SALT Help in Cross Border Payments?**  ![International-money-transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/sell-globally-receive-locally-linkedin-1679574772905-compressed.jpg) **SALT is a neobank that is making cross-border payments easy for businesses.** **With SALT, you can transfer money from abroad within 24 hours at a charge of just 1.75% of the total transaction amount. Whether you are a startup or an SME, SALT requires no minimum transaction amount to use its services. There are no hidden charges, no annual subscription fees, and no markup fees for using SALT.**  **Therefore, with SALT, any freelancer, any startup, SME, or even large company - everyone can perform cross-border payments with ease.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Company Board Meeting In India: How To Conduct Your Company Board Meeting Author: Ankit Parasher Published: 2022-08-03 Meta Title: Company Board Meeting In India: How To Conduct Your Company Board Meeting Meta Description: Learn about the basics of a company's board meeting and conduct the meeting diligently for your company. Tags: Deck for foreign investors, Early stage startups, board meeting, company board meeting, board meeting in India , MSMEs in India URL: https://salt.pe/blog/company-board-meeting ![company-board-meeting-explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/company-board-meeting-in-india-the-basics-process-and-the-essentials-1659521441502-compressed.png) Introduction SMEs or early-stage companies who have just started might find it difficult to organise a formal board meeting perfectly. Here are some imperatives that SME founders can take note of. A board meeting is a business meeting of the top directors or executives, essentially the board of directors of a company, to discuss issues, policies, and strategies that require the urgent attention of the company.  Section 173(1) of the Companies Act mandates that "Every company shall hold the first meeting of the Board of Directors within thirty days from the date of company incorporation and after that hold board meetings in such a manner that not more than 120 shall intervene between two consecutive meetings and should be a minimum number of four meetings every year." ![board-meeting-definition](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-a-board-meeting-1659527597921-compressed.jpg) Why are Board Meetings Important? --------------------------------- A board of any MNC, startup, or SME is inevitably responsible for keeping the strategies and performance of the company in check and holding executive actions accountable on behalf of stakeholders. Therefore, boards must conduct their meetings to maximise the use of the members' time and intellectual resources. The constitution of a board in SMEs is not very rigid. Then there are early-stage startups that have only one person on their board. Generally, the founder, the CEO, and a significant investor (or a Venture Capitalist) are included on the board. The board elects a Chairman from among its members.  The Board of Directors may also exercise the following powers in addition to those listed under section 179(b)(3) of the Act, but only by resolutions adopted at Board meetings: 1. **To appoint or discharge key managerial persons (KMP)** 2. **To mark any appointments or discharges of Key Management Personnel at a level below** 3. **To secure or sell investments held by the firm (other than trade investments)** 4. **To take note of the disclosure of the director's interest and shareholding** 5. **To evaluate or modify the terms and circumstances of public deposit** 6. **To approve quarterly, half-yearly, and annual financial statements or financial results as may be necessary** **How to Summon a Meeting?** ---------------------------- **As per the [Institute of Company Secretaries of India](https://www.icsi.edu/media/website/Final%20Guidance%20Note%20On%20Meeting%20Of%20the%20Board%20of%20Directors.pdf) (ICSI), a board meeting can be summoned by any director on the company's board. The meeting is convened by the Company Secretary or a person authorised by the board for the same.**  **A notice of the board meeting is digitally mailed to every director. The notice of the meeting should be communicated to all directors, At least seven days before the scheduled date of the board meeting. This ensures that the investors of SMEs can notify their availability ahead of time.  The notice of a board meeting, drafted by the Company Secretary (is generally the CEO in SMEs and large enterprises), should specify the date, day, time, venue, and serial number of the meeting. It should also include options, if available to board members to participate through video conferencing and details regarding the same. Proper arrangements should be made if a director intends to be virtually present for the meeting.  The agenda of the board meeting and the topics up for discussion should also be enclosed with the notice.** ** Quorum of a Board Meeting ------------------------- A board meeting requires a quorum of either two directors or one-third of the board's total membership, whichever is higher. For board meetings, startups or SMEs should maintain a record of the attendees. The information to be included in the attendance register should be: * The board meeting's serial number * The day, date, time, and location of the meeting * The names and signatures of the present directors * The name of the company secretary The Company Secretary or the Chairman of the board present in the meeting must note each director who attends the meeting via VC and the specifics of their participation in the minutes. A director may only take a leave of absence after communicating the request to the Company Secretary, the Chairman, or any other person designated by the board. ****### Meeting agendas Each item of business to be discussed at the meeting will have a unique serial number. All issues and proposals that need to be approved at the meeting must be accompanied by a note outlining the proposal's specifics and relevant information to help the directors understand the proposal's meaning, scope, and implications. Topics not on the agenda can be discussed with the Chairman's approval and the support of a majority of the attendees at the meeting. Each contract or agreement must have a register presented in a board meeting and signed by each director. ### Concluding the Board Meeting The board Chairman or the Company Secretary should read the resolutions adopted before adjourning the meeting. It is customary to make the time and location of the following meeting known. The secretary should circulate the minutes for members to peruse after the meeting. Pointers to note ---------------- 1\. Having a clear agenda: A specified meeting agenda will ensure minimum wastage of time on trivial matters and more time to debate on issues of concern.** **2\. Board packs and documents: Essential papers are generally sent with the meeting notice to give the members ample time to review them and be prepared.** **3\. Keeping tools and facilities in check: Ensure proper arrangements like laptops, network connectivity, access control to encrypted folders, and stationery for an obstruction-free meeting.  4\. Recording important pointers of the meeting: Conclusion or resolutions of the meetings must be well drafted and shared with all the board members - present or absent in the board meeting.** ** Board Meeting Etiquettes ------------------------ A few etiquette guidelines for directors should be followed to ensure the smooth operation of the board meeting. These consist of: ***** Richard Branson said, “Any successful entrepreneur knows that time is more valuable than money itself.” The board meeting must run on schedule to be successful. * Electronic devices should be used only to refer to the meeting materials.  * None of the attendees should be interrupted by their counterparts while presenting their views. All the present board members should be all ears while someone else is speaking.  * In cases of a clash of opinions, board members should be respectful to each other.  * All board meeting attendees should thoroughly read the board papers to prepare. It is advisable to create pertinent inquiries or solutions to issues to be addressed. * Recognise that all board members, even those who voted against a resolution, are accountable for it. * All the attendees of a board meeting should thoroughly read the board papers to prepare. It is advisable to create pertinent inquiries or solutions to issues to be addressed. * It should be recognised that all board members, even those who voted against a resolution, are accountable for it. Board meetings are crucial for decision-making and establishing formal channels of horizontal communication for the top-tier management. Any startup looking forward to expanding their company’s scale and stature should look forward to implementing the essentials of a board meeting in the right way. If you are a startup or an SME looking to manage your funding or compliance issues, Table by Salt is a one-stop solution for all your worries.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Is Mid-Market Exchange Rate? : It's importance in International Money Transfers Author: Ankit Parasher Published: 2022-07-29 Meta Title: What Is Mid-Market Exchange Rate? : It's importance in International Money Transfers Meta Description: Mid-Market Exchange rate is vital when sending money overseas. Learn : - How it is calculated - Why, When, and Where do you see the Mid-Market Rate? - How to Find the Best Exchange Rate? Tags: international money transfer, Mid Market Exchange Rate, Foreign Exchange URL: https://salt.pe/blog/what-is-mid-market-exchange-rate ![Mid-Market Exchange rate is vital when sending money overseas. Learn how it is calculated and all about its dependent variables. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/mid-market-exchange-rate-international-money-transfer-1659078979814-compressed.png) If you've ever converted your money to a foreign currency, you must have noticed a difference in the final amount. Have you ever wondered why that happens? This difference is accounted for by the mid-market exchange rate (MMER), which is a vital component in cases of [international money transfers](https://salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india).  Sending money overseas has never been simple, [especially for businesses that trade internationally.](https://salt.pe/blog/multi-currency-accounts-for-businesses) Converting money to a foreign currency leads to a difference in the final amount, and this happens due to the mid-market exchange rate (MMER). Exchange rate fluctuations due to MMER can be a major issue for startups as the money received from abroad will never match the amount you expected to receive or send. Startups and SMEs dealing internationally can send or receive money abroad to a globally-distributed workforce, a global supply chain, or receive funds from foreign clients or investors. What is the Mid-Market Exchange Rate? ------------------------------------- The midpoint in an international transaction involves MMER, sometimes known as the middle or interbank rate, at which banks exchange currencies. Consider the global foreign exchange market - the mid-market rate, at which the bank is prepared to trade in the interbank market, is the average of the purchasing and selling prices of two currencies. Instead of being a trade rate, it is a computed rate. The mid-market exchange rate is the middle point between the selling and buying price of a pair of currencies. Every currency pair at present has a distinct, constantly changing mid-market exchange rate that is determined by national and international macroeconomic factors. For instance, the exchange rate between the US dollar and the Indian rupee currently is 80.015. Why, When, and Where do You See the Mid-Market Rate? ---------------------------------------------------- The Mid-Market Exchange Rate is important if you transact in multiple currencies or make international money transfers since it impacts the net amount you transfer abroad or receive from abroad. The charge you pay to your bank is the difference between the mid-market rate and the forex net rate at which you exchange two currencies. That's why you will never get charged the mid-market exchange rate. MMER is the rate banks charge each other while exchanging currencies.  Mid-market exchange rates are crucial when any startup or SME is making an international payment, or an individual makes an international money transfer. When you look on Google or through independent sources like Reuters and XE, you will discover the mid-market exchange rate.  How is the Mid Market Exchange Rate calculated? ----------------------------------------------- It's critical first to grasp what the term "spread" refers to comprehend mid-market rates. The price difference between the buy and sale is known as the spread.  The average (or midpoint) of the spread (buying price and the selling price) is used to establish the mid-market rate. ![How-To-Calculate-Mid-market-exchange-rate](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/mid-market-exchange-rate-calculation-1659079990671-compressed.png) The mid-market rate, in this case, is $1.27. The rate you receive from a reputable money transfer provider should be as near the mid-market rate as possible, with a little spread.  Can individuals send at Mid-Market Exchange Rate? ------------------------------------------------- Individuals who send money abroad can send it at the mid-market rate if their exchange provider doesn’t mark up the exchange rate. Besides, they are also required to pay a transaction fee which the service provider charges additionally. How to Find the Best Exchange Rate? ----------------------------------- Usually, making international money transfers at the mid-market exchange rate is not possible. This is because currency exchange providers set their exchange rate margins to benefit from cross-border money transfers, banks, and other providers of currency exchange services. But with Salt's neobanking solutions, you can transfer money abroad or receive money from abroad at the mid-market exchange rate with no markups or hidden fees involved. With Salt, the only exchange rate that you need to take care of is the mid-market exchange rate and you can make the best of your international transfers!  XE, Yahoo, and Bloomberg are some of the most reliable platforms to note the current exchange rates for various currency pairs. [Cross-border payments](https://salt.pe/blog/the-cross-border-payments-landscape-in-india) should be made at the closest rate to mid-market exchange rates.  Why are there different Mid-Market Exchange rates?  --------------------------------------------------- The Foreign Exchange (FX) market is not a centralised market as opposed to equity trading, which takes place in an organised market. Major players are tier-1 banks, with ten holding more than 70% of the daily FX transactions. As a reminder, [the daily FX volume is USD 966.7 billion](https://www.reuters.com/article/us-global-forex-volume-idUSKBN2EX23C#:~:text=Daily%20FX%20volume%20climbed%20to,compared%20with%20the%20prior%20year.). So the quote can vary from bank to bank, but the difference is very small, thanks to arbitrageurs who keep the market with no price discrepancies.  That's why the mid-market rate can vary slightly from one liquidity provider to another.  ### Is the Mid-Market Exchange Rate constant? The Mid-Market Exchange rate fluctuates very often. The determinants which affect the exchange rate include: * **Inflation Rates** * **Nation's current account or balance of payments** * **Government debt** * **Terms of Trade** * **Political stability & performance** * **Recession** **When making an international money transfer, knowing the mid-market exchange rate will help you receive more for your money, but there are other factors to take into consideration as well. This comprises:** ** * A common rule of thumb is to transfer money as near to the mid-market exchange rate as you can if you're looking to save money on international money transfers. The closer you are to this conversion rate, the more money your beneficiary will ultimately receive because the majority of currency providers and institutions make money from the exchange rate margin. ***** A smart currency partner can even help you set up a limit order to ensure that your funds are automatically transferred when the market reaches a preset exchange rate, which will help you maintain your attention on the wider picture. The Bottom Line --------------- A sound understanding of the mid-market exchange rate is crucial for businesses and SMEs operating globally to have transparent transactions. Many exchange service providers markup the mid-market rate by adding their profit margins. This increases the individual’s or company’s overall transfer expenditure.  It is not difficult to get wound up in the currency exchange task. Managing foreign payments can be time-consuming and occasionally expensive for an early-stage business going global. Salt is a reliable banking solution that deals with cross-border transactions at the lowest rate of - 1.75% of transactions and compliances for Indian SMEs. With Salt, your venture can procure hassle-free forex banking services across the globe.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pre-Money Vs Post-Money Valuation: The Meaning, Difference, and Calculation Author: Sudhanshu Choudhary Published: 2022-07-25 Meta Title: Pre-Money Vs Post-Money Valuation: The Meaning, Difference, and Calculation Meta Description: What distinguishes pre-money from post-money valuations? We clarify the distinctions and the significance of knowing them for startups. Tags: startup founders, Deck for foreign investors, early stage founders URL: https://salt.pe/blog/pre-money-valuation-and-post-money-valuation The valuation of an early-stage startup is crucial to its success (or failure) in any venture capital financing round. When it comes to establishing firms, most start-up and early-stage founders have the similar objective of ensuring long-term, profitable growth and development. But acquiring funding is an essential requirement, whether you're just starting or hoping to scale exponentially. ![pre-money-and-post-money-valuation-for-startups](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pre-money-post-money-1658751023950-compressed.jpg) These numbers valuing the financial worth of a startup-up or an SME are significant because a startup's pre-money valuation and post-money valuation can significantly affect the success of the [startup funding stages](https://www.salt.pe/blog/from-pre-seed-to-ipo-stages-of-a-startup-funding-cl1vyw5jx263211jqn87kxyuxk). So, what distinguishes pre-money valuation from post-money valuation, and what do these terms mean? Let's find out.  What is Pre-Money Valuation? ---------------------------- A pre-money valuation is the value of a firm before any outside capital or the funds received post the most recent round of funding have been added. Pre-money is best defined as the potential value of a startup before it starts to receive outside funding. This valuation provides investors with a sense of the company's current worth and the value of each share that has been issued. Many other factors are considered during the pre-money appraisal for business owners and investors to reach agreeable conditions. These comprise the current state of the market and the estimates of other companies operating in the same sector. Pre-money revenue is another item on this list that applies to more established businesses. An investor may decide the ownership percentage and cost based on the above-mentioned factors. This, in turn, provides you with a pre-money valuation before investing. What is Post-Money Valuation?  ------------------------------ Conversely, post-money valuation refers to the company's value after receiving funding and subsequent investments from VCs, angel investors, or other sources. The post-money valuation takes into account recent capital infusions or external finance. Knowing what is being discussed is crucial because these are key ideas for valuing any firm. ### What is the difference between the two?  Timing determines the difference between a company's pre-money and post-money valuation. A company's pre-money valuation is its agreed-upon value before it obtains the following financing round, whereas a company's post-money valuation is its implied value right after obtaining the funding. How to calculate Post-Money and Pre-Money Valuation --------------------------------------------------- Calculating post-money valuation is pretty straightforward. The post-money valuation of a corporation can be determined by simply adding the investment's value to the company's pre-money valuation. Alternately, you can determine post-money valuation by dividing the new investment amount by the number of shares the VC/Angel investor received in exchange for the investment they made in the early-stage startup/SME and multiplying the resulting per-share price by the total number of shares issued after your investment. ![How-to-calculate-post-money0valuation-for-startup](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/calculate-post-money-valuation-1658750985051-compressed.jpg) ### Or  ### Post-Money Valuation = Financing Raised/ % of Equity Ownership given to VC/Angel Investor However, figuring out a company's pre-money value is significantly trickier. The pre-money valuation of a firm is a negotiated value based on various variables and formulas determined by investors and early-stage founders rather than just straightforward math. When evaluating the pre-money valuation of a company, the parties consider several criteria. Recent similar offers, exit value estimates, and historical cash flow are a few examples of possible factors and [startup metrics.](https://salt.pe/blog/founders-guide-to-vital-startup-metrics-make-better-decisions-ckyidc0qt510281ko5dxjwkx51) Determining the pre-money valuation of a business can be extremely challenging because the valuation of pre-revenue enterprises is frequently passionately contested. Relevance of Convertible Notes in Pre-Money Valuation ----------------------------------------------------- Due to the significance of a firm's venture capital valuation, start-up founders and investors frequently engage in contentious discussions on the pre-money valuation of a company. These disputes are frequently challenging to settle. The pre-money valuation of a firm can be particularly difficult to ascertain when securing the first round of funding because it is difficult to assess the genuine value of the product, and the parties may even be requested to agree on the valuation of early-stage businesses. Convertible notes usually referred to as convertible debt, can be useful in several circumstances. With the help of convertible notes, companies can raise money while postponing valuation until after the business has grown more established. Although these notes are loans, they become equity in a subsequent investment round. Investors typically receive specific guarantees or warranties for accepting the risk of an undefined valuation. ### Why is the Distinction Between Pre-and Post-money Valuations Important? The difference between a company's pre-money valuation and post-money value is significant since it ultimately determines the equity stake that investors will be entitled to following the completion of the financing round.  ### Which Has Greater Relevance for a Business? For various reasons, pre-and post-money valuations are both crucial for successful fundraising. A later-stage startup planning to go public and sell shares to investors other than venture capitalists may be more interested in the startup’s post-money value. Additionally, the later in the stage you are, the more crucial it is to guarantee that your investors will experience at least a 5x return on investment (ROI), or a 25% rate of return, in a few years.  The opportunity a firm has generated can be communicated to an investor through a pre-money valuation. On the other hand, a post-money valuation reflects a company's capacity for growth and its requirement to attract investors' money. ### To sum it up Your company is pushed into scalability once the post-money valuation is invested in. The pre-money valuation represents the physical assets, intangible assets, and sweat equity (startup capital, concept development, personal risk, etc.) you've invested in the company. Make sure you are knowledgeable about both pre-and post-money valuations and that you are prepared to analyse the terms of investment before engaging in funding conversations with possible investors.  A reliable and trustworthy service provider can go a long way in solving all of the business’s financial and operational issues.  For startups raising funds, [Table](https://www.salt.pe/table) by Salt helps you get the pre-money valuation report, complete RBI & MCA filings related to the pre-funding and post-funding by just paying a fraction of the costs and slashing the time taken by half. It can’t get any better than this! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Cross Border Payments Landscape in India - Detailed Report Author: Sudhanshu Choudhary Published: 2022-07-22 Meta Title: The Cross Border Payments Landscape In India - Detailed Report Meta Description: Every market - from Asia Pacific to Europe and America - is expecting to see cross border payments grow in the coming years. What does a closer look at markets like India reveal? Tags: swift code, understand swift code, cross border payments, CROSS BORDER PAYMENTS INDIA, Rupee Drawing Arrangemen, cross border transaction, Money transfer service scheme, Electronic fund transfer URL: https://salt.pe/blog/the-cross-border-payments-landscape-in-india In 2020, [$140+ trillion in payments was processed across international territories](https://www.statista.com/statistics/609723/value-of-cross-border-payments-by-type/).  The trajectory of these cross-border transactions, where the payer and the recipient are located in different countries, is only headed in one direction - up. Every market - from Asia Pacific to Europe and America - [is expecting to see cross border payments grow in the coming years](https://www.americanbanker.com/payments/news/how-the-cross-border-payments-boom-threatens-to-leave-banks-behind). What does a closer look at markets like India reveal?  ![International-payments-India](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-payment-landscape-india-1658497208466-compressed.jpg) First off - a quick look at the basics.  International fund transfers require the transformation of one country’s currency into another. And if it sounds complex, that's because it is. There are a lot of players involved - from domestic banks and payment systems, to international transfer protocols and verification systems.  Contents * [Basics of a Cross Border Transaction: How to Make One?](#basics-of-a-cross-border-transaction-how-to-make-one) * [The History of Cross Border Payments](#the-history-of-cross-border-payments) * [Why Are Cross Border Payments Much More Difficult Than Domestic Payments?](#why-are-cross-border-payments-much-more-difficult-than-domestic-payments) * [Is SWIFT Still a Preferred and Reliable Way of Making Cross Border Payments?](#is-swift-still-a-preferred-and-reliable-way-of-making-cross-border-payments)  * [Fintech Uprising in Cross Border Payments](#fintech-uprising-in-cross-border-payments) If you're sending 10,000 INR to the US, for example:  * **Your domestic bank sends the instructions to a settlement bank.**  * **The settlement bank, via its relationship with a corresponding settlement bank in the US, executes the transaction.**  * **The international settlement bank then transfer the money to the receiver's bank, ultimately landing it in the bank account.**  **Nearly every step here involves manual intervention. Leakages in the form of Foreign transaction fees and exchange rate fluctuation makes the process less attractive.**   **Factors like a rise in global migration coupled with global e-commerce have necessitated not one, but a number of different secure and efficient methods of completing a cross border payment. For instance, in India, inward and outward remittances are a major reason international transactions must be made easy. After all, according to [a recent PwC report](https://bfsi.economictimes.indiatimes.com/tag/pwc), India is the largest market for inward remittance flow across the globe, at around $83 billion. India’s inward remittances mostly come from the US and the Middle East, while a large part of the outward remittances are sent to Nepal and Bangladesh.**   ![Challenges-in-cross-border-payments](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-payments-1658497432070-compressed.png) **While not really very different from domestic payments, cross-border payments are certainly more expensive and can take longer to execute. This is because there’s an increased number of parties involved in a transaction (i.e. banks and other third party financial institutions). Typically, for a cross country transaction initiated by an Indian person, an Indian bank would take the payment from the sender and send it across the border to a bank in the receiving country it is aligned with, which would then process the payment through its own payment system and hand it over to the designated receiver. However, for some countries, the payment has to pass through one or more countries in between the sending and receiving countries due to reasons like longer distance and no direct connection with any banks in the receiving country.  Through traditional methods in India, international payments usually take two to five working days to be processed, depending on the number of institutions the transacted funds have to pass through.**   **Basics of a Cross Border Transaction: How to Make One?** ---------------------------------------------------------- **The more widely used methods of transferring funds across borders include the use of channels like SWIFT, RDA or Rupee Drawing Arrangement, and MTSS or Money Transfer Service Scheme.**  **[SWIFT or the Society for Worldwide Interbank Financial Telecommunication](https://salt.pe/blog/swift-code-explained) is a global payment network founded back in 1973, that facilitates international transactions through bank transfers. The network connects approximately 10,000 financial institutions from 212 countries across the world; the network facilitates an average of 11,000 clients from all over the world to initiate nearly 33.6 million transactions regularly. The network works as an intermediary in brokerage and stock transactions, along with providing banking services.** **SWIFT assigns banks aligned with it a unique [Bank Identifier Code or a BIC](https://salt.pe/blog/swift-code-explained) (similar to the IFSC code required to make a domestic transfer). To make an international bank transfer, a payer would need the IBAN or international bank account number and the BIC or bank identifier code of the payee.** **As for RDA or Rupee Drawing Arrangement, it is essentially a channel through which Indians can receive remittances from selected countries across the world. Indian banks have partnered up with many international exchange houses so as to provide a quicker remittance facility to Indians in foreign countries. Senders can use said exchange houses to transact money to Indian receivers, and the payment is credited to the beneficiary’s bank account within only a few hours. Notably, this method only facilitates inward remittances; the RDA process can be seen in the diagram below:** ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-payment-landscape-1-1658497454799-compressed.png) **Coming to** Money Transfer Service Scheme or MTSS**, it is also a way Indian residents can receive personal remittances from abroad; like remittances towards family maintenance and those favoring foreign tourists visiting India are permissible through MTSS. Money transfer companies from abroad called Oversea Principals facilitate these transactions, and Indian agents take over to  disburse funds to the payees in India at the current exchange rates. The transactions typically take 24-72 hours to complete, with charges ranging from 0.3–5% of the amount sent. MTSS is a service only meant for inward personal remittances with a maximum transaction limit of $2,500 and a maximum of 30 transactions per year for every beneficiary.** **The History of Cross Border Payments** ---------------------------------------- **Cross border transactions are not a new concept; in fact, over the course of history, the exchange of international currencies have emerged as a direct result of the many different coins that have been made in different kingdoms and later countries. Even in the biblical times, there were money changers who converted foreign currencies to local currencies so people could avail themselves of goods and services in a certain area.**  **As time has gone by, the physical movement of a particular currency to foreign countries has ceased, and newer ways have been invented to transfer value. With the rise of industrialization, the need for cross border transactions became dire. So, in the late nineteenth century, an organization named Western Union - previously  a telegraph company - started facilitating the transfer of funds to a place some distance away through ‘wiring’. A sender would pay t**he money to be sent in an office for the operator to ‘wire’ it, and the money will be collected by the recipient in another office location. Even today, some remittance companies have office locations across the globe for the recipients to pick up the money sent to them as cash.   **Later on, banks reinvented the ‘wiring’ process for international fund transfers, and so rose methods for EFT or Electronic Funds Transfer. Eventually, organizations like SWIFT came along too, so cross border payments can be passed on safely.**  ![How-does-wire-transfer-work](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cross-border-payments-wire-transfer-1658497569369-compressed.png) **Why Are Cross Border Payments Much More Difficult Than Domestic Payments?** ----------------------------------------------------------------------------- **Even as the methods of cross border payments have grown more refined over the years, they are still inefficient when it comes to being cost-effective or agile. Indeed, in the modern digital age, the conventional modes of cross border payments have grown unattractive, due to reasons like-** * **The excessive transaction charges and the prolonged waiting period. Cross border payments require several banking locations to deal with one another, which in turn means navigating through multiple changes of currencies, varying taxable amounts, and transaction fees. With the many entities working on the single transaction, the process can naturally be quite slow.**  * **A majority of both inward and outward remittances in India take place through public sector banks that involve a lot of complex paperwork (such as a higher level of KYC), plus the lack of transparency with international bank transfers is concerning too.**  * **As for international debit cards, they charge quite high transaction fees.** * **Other issues include incompatible formats from banks from different countries, and a quite low level of automation in the internal systems of the domestic banks.**   **SWIFT is perhaps the most-used method for making cross border payments, but even that falters because of multiple reasons. For example, a big issue in cross border payments is that they are subjected to regulatory requirements from a lot of different places simultaneously - the country of origin, the destination country, and any other jurisdiction a transaction might need to pass through. For instance, when an Indian user sends funds to someone in one of the European countries, there are the RBI’s regulations and guidelines for the payment to abide by (in terms of  AML, KYC, limits, etc.). Then in Europe, the SEPA system and other legislations like PSD2 to be satisfied too.**  **Is SWIFT Still a Preferred and Reliable Way of Making Cross Border Payments?**  --------------------------------------------------------------------------------- **The SWIFT network makes transactions to almost every country in the world possible, and conversion to any currency easy. Throughout the years, SWIFT has remained one of the most trusted ways of making a cross border payment. However, just like any other traditional way of transferring value across countries, SWIFT has its shortcomings as well.**  **The execution of a SWIFT transaction takes a lot longer than a usual online transfer of funds; SWIFT transactions are processed in about three working days on an average. Therefore, standard SWIFT transfers are quite a lot slower than other similar services. It’s to be noted though that with SWIFT, payers do get the option of paying an extra fee for the accelerated processing of a transaction.** **There are three choices senders get with SWIFT regarding the amount of time a particular transaction takes to be processed:** * **The standard transaction: the fund transferred reaches the receiver in two working days after it was sent.** * **The urgent transaction: the money sent is received after one day.**  * **The express transaction: with this one, the transaction is executed on the same day it is initiated.**  **However, while this may be solving one problem, another issue is raised in the process: that of high transaction charges.**  **Just like any other standard method of making cross border payments, SWIFT does not manage to avoid the problem of high transaction costs either. Moreover, these charges are different for every country. It is also not always possible to determine the cost of a certain transaction because it depends on how many banks (domestic and international) will be required to act as an intermediary in its execution.**  **Needless to mention, both of these issues render SWIFT (as well as any other traditional way of doing a cross border transaction) not suitable for transfers of small amounts.**  ### **Fintech Uprising in Cross Border Payments** **It’s only natural that a digital age client, used to the convenience of virtual payment services, would want for the same amenities a domestic transfer offers while making a cross border payment too. It’s why fintech companies are leveraging up and coming technologies to bring cost-effective solutions for international payments. There are fintechs introducing flexible payment options, better customer service, and expansive global reach in cross border payment systems, along with lower transaction fees and decreased processing periods.**  **While there are technological solutions that let users connect to traditional bank networks for cross border transactions more easily, there are also some providing cross border payment rails completely independent from conventional banking networks. PayPal’s arrival in 1998 (then named Confinity) made cross country payments lower-cost and more effortless than ever before. Later after 2010, many Fintech startups came up, providing several digital cross border payment solutions for users across the world.**  **The rise of neobanks is also closely linked with the increasing demand for convenient cross border transaction solutions. A neobank- or a digital-only bank- offers global banking solutions that make cross border payments faster and more secure. Neobanks make room for convenient, flexible banking; with neobanks, both domestic and global transactions can now be processed with equal speed and ease. In the post-pandemic times, the popularity of the neobank is spreading fast around the world. In India, [neobank startups reportedly raised over $230 million in 2020 alone](https://economictimes.indiatimes.com/tech/trendspotting/explained-neobanks-the-next-evolution-of-banking/articleshow/86836735.cms). Further, the size of the global neobanking market is anticipated to hit $333.4 billion by 2026 at a CAGR of 47.1%.** **Meanwhile, the NPCI (National Payments Corporation of India) is also attempting to increase its global reach by extending the usage of UPI (Unified Payments Interface) internationally. They aim to leverage UPI for quicker inward remittances, and cross border transactions in general. [As per a PwC report from June 2021](https://www.pwc.in/assets/pdfs/consulting/financial-services/fintech/point-of-view/pov-downloads/the-evolving-landscape-of-cross-border-payments.pdf), a US-based financial services provider has already introduced an inward payment method that lets users send money to India using the payee’s UPI ID only.**  * **Is India Ready for Innovative Solutions in the Cross Border Payments Ecosystem? The RBI’s Stance on Innovations in Cross Border Payment** **As the [RBI’s push to extend both Rupay and UPI’s global reaches](https://www.financialexpress.com/industry/banking-finance/rbi-steps-in-to-push-upi-rupays-global-reach/2181175/) signifies, the Indian government is aware that the country is more than ready for further fintech solutions to simplify cross border payments. Back in 2019, RBI had launched a regulatory sandbox for promoting fintech innovations. With the third cohort still in process, the first and second cohorts had shortlisted respectively six and eight startups on themes of cross-border payments and retail payments. The RBI’s second cohort theme of the regulatory sandbox framework in particular was how fintechs can solve the many issues faced by the cross border payments sector. Many fintechs in India have leveraged technological solutions since then to address the pain points of the older legacy models.** **For instance, Open Financial Technologies was selected by the RBI as part of the second cohort. The startup has created a blockchain-based cross border payment system using Hyperledger Fabric- an open source blockchain based on Linux. The system brings down the time occupied by the collection of money against the export of goods and services to four days, and even decreases the transactional charges by 30%.**  **Similarly, moneyHop is also an RBI-regulated fintech that aims to become an instant and cost-effective international remittance platform where clients can complete their cross border payments in just four simple steps.**  **Now, in the January of 2022, [India’s central bank has introduced an exclusive fintech department](https://inc42.com/features/rbis-new-fintech-dept-to-focus-on-lending-cross-border-payments/) that will be responsible for facilitating and regulating the growing innovation in fintech, as well as handling any fintech related challenges. The department will be aiming to strike a balance between creating more opportunities for and encouraging fintech innovations, and prioritizing consumer protection.**     **The central bank has appointed its executive director Ajay Kumar Choudhary to be the head of the new fintech department, as well as that of the monitoring and inspection branches. A key reason behind the creation of the separate fintech department is being said to be the incredible fintech growth the India Stack APIs have stoked. Indeed, with the number of smartphone users in India having grown to around 844 million in 2021.** **An RBI official has stated that cross border payments is one of the many areas the fintech department will be responsible for looking into. The UPI payments have already not only lowered the expenses of domestic payment, but also sped them up; however, in terms of cross border payments, the UPI is still only slowly connecting other countries’ e-payment systems with that of India. According to the RBI official, the government of India recognizes that the deficiencies in the international payments sector are mostly caused by regulatory issues, and also that different jurisdictions will need to be coordinated with payment instructions being published in common language(s) for said issues to be solved.**    **As per the RBI internal circular, the new fintech department will be dealing with everything in relation to inter-regulatory coordination and internal coordination in fintech.**  Conclusion: What Does the Future Behold for Cross Border Payments in India?  **With the establishment of a fintech department, we can expect the procedure of building a brand new regulatory framework for fintech innovations in India to speed up. As for cross border payments, these new developments may soon result in a set of regulations on par with global regulatory mandates that will make cross border payments more accelerated and cost-efficient for people.**  **With global e-commerce steadily rising in volume, instantaneous cross border payments are an absolute necessity. With innovations in fintech and a strong backing from the government, it does seem cross border payments in India have a promising future ahead.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Term Sheet Guide: Key Components of Startup Term Sheet Author: Ankit Parasher Published: 2022-07-21 Meta Title: Term Sheet Guide: Key Components of Startup Term Sheet Meta Description: A term sheet is essential when raising capital from investors or angel investors. It lays out what they're investing in and what they expect back. Tags: Angel Investors, VC and Angel Investor, startup founders, Deck for foreign investors, Term sheet, Venture capitalist, startup investors, startup termsheet URL: https://salt.pe/blog/key-components-for-startup-term-sheet A term sheet is a written document executed following a pitch meeting or a preliminary corporate meeting of ideas over the proposed deal. A term sheet is a contract between a start-up founder and an investor. It is a document that the parties (start-up founders and angel investors/venture capital investors) exchange that contains the main terms and conditions of the funding.  Before finalising the legal agreements and beginning the time-consuming due diligence, the term sheet highlights the essential aspects of the deal agreements and sorts out the disparities. A term sheet is also sometimes referred to as a memorandum of understanding (MoU) or a letter of intent (LOI). The term sheet is **"Non-Binding"** since it merely reflects the important and broad areas of agreement between the parties under which the investment will be made. It also serves as a template for in-house or external legal teams to follow when drafting final agreements. ![ A term sheet is essential when raising capital from investors or angel investors. It lays out what they're investing in and what they expect back.](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/startup-term-sheet-1658405220482-compressed.jpg) To assess the nature of the term sheet, 'whether binding or not binding,' the facts and circumstances of the case must be considered. A term sheet is a document that outlines the key financial and other important terms of a proposed transaction, which are subject to negotiations and certain conditions. It acts as a precedent before the formation of final legal documentation such as a Business Transfer Agreement, Joint Venture Agreement, Subscription Agreement, Shareholders Agreement, and many others. As a result, a term sheet serves as the foundation for all definitive agreements. Key components of Term Sheet ---------------------------- ​ ![Key-components-of-startup-term-sheet](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/startup-founder-guide-term-sheet-1658405318181-compressed.jpg) ### Offer of New Securities ​**This section typically describes the securities being offered. Investors may choose between preferred and common shares. Preferred shares typically come with rights that give them precedence over common shares. For instance, preference shareholders are given mandatory dividends and precedence over the equity or common shareholders. However, preferred shares do not usually come with voting rights. In contrast, common shares often only have one vote that each share may exercise if a shareholder vote is required.** ** ### Capitalisation following Financing **** The goal of this part is to provide a summary of the company's financial structure following the new funding that is being proposed. The reader can ascertain the company's pre-money and post-money values thanks to the material in this section. Pre-money valuation, as the name suggests, refers to the agreed worth of the company before the new investment, and post-money value is the company's mathematical value after the investment. **** ### Council rights This refers to the power of an investor to nominate or choose candidates for a board of directors. However, they may insist on appointing independent directors who would also hold a majority and bring one or even more attendees to all board meetings. Investors typically only ask for the right to nominate a small portion of the board. **** ### Dividends **** A dividend is an amount of money that is routinely (quarterly or annually) distributed from a company's profits to its shareholders. One of the key tools that enable investors to preserve their investment and exit a transaction with at least a chance of a return in the case of the company's insolvency is the existence of dividend provisions. For start-ups, the dividend is permitted to build over time by increasing the investor's preferred equity size rather than being paid out regularly. The favoured equity would have grown over time after the investment, and the investor would gain from the fixed rate of return. **** ### Additional provisions **** These include the investor's right to undertake due diligence before closure, exclusivity clauses (the company's commitment to rejecting competing proposals), and pay of the investors' expenditures.  ### Investor safeguards ****Important company decisions need investor approval. These often include creating and issuing shares that are more valuable than the shares investors hold, taking on secured debt, restructuring the business, repurchasing shares, and paying dividends. Additionally, management-level decisions like selecting and removing top officers and altering the course of the company's operations may be included. A term sheet's contents and clauses can be different and changed accordingly to fit different transactions. There are several types of transactions in which a term sheet is needed:** ** * PE(Private Equity)/VC(Venture Capital) Transaction: PE and VC deals generate financial rewards. VC transactions are made in the early stages of a firm or start-up, whereas PE transactions are made later in the company's life cycle. Both, however, required identical terms to be included on the term sheet. Generally, a PE/VC term sheet comprises terms like valuation, investment amount, anti-dilutive provisions, affirmative rights, liquidation, conversion rights, etc. **** * M&A (Mergers and Acquisition) Transaction: M&A transactions are conducted to achieve strategic benefits and business restructuring. In an M&A transaction, the term sheet will include information regarding the offered price, means of payment, assets and liabilities, business facts, and other typical terms. **** What is it used for? -------------------- The term sheet's objective is to detect concerns with the proposed deal before devoting time and money to due diligence, as well as to assess the rights and liabilities of the transaction before entering into definitive agreements. ****A well-negotiated term sheet reduces future disagreements and identifies "deal-breakers." Furthermore, the term sheet establishes the deal's growth aspirations, [startup valuation](https://salt.pe/blog/business-valuation-report), and risk mitigation. The term sheet acts as a framework for the documents that must be drafted when selling or purchasing a firm, selling or purchasing shares, or participating in capital raising rounds. Conclusion ---------- The founders would be better able to make educated decisions and take measures that would benefit the company if they were aware of the terminologies included in a term sheet and their ramifications. Before moving further with the investment closing and setting legally valid terms for the investment, term sheets must be thoroughly understood. As a start-up opting for a secure platform that safeguards  After the term sheet is signed, [Table Salt](https://salt.pe/table) helps startups with their compliance and banking processes while raising funds from foreign investors.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Multi-currency Accounts For International Businesses : How does it work? Author: Sudhanshu Choudhary Published: 2022-07-19 Meta Title: Multi-currency Accounts For International Businesses : How does it work? Meta Description: What is a multi-currency? How does it work? What are the benefits? How Multi currency accounts, like those by Salt, are reducing the complexities of international money transfers. Find out here. Tags: MSMEs in India, multi currency accounts URL: https://salt.pe/blog/multi-currency-accounts-for-businesses Multi-currency accounts, like those by Salt, help facilitate international transactions by reducing complexity and removing foreign exchange commission charges. ![Multi-currency accounts, like those by Salt, help facilitate international transactions by reducing complexity and removing foreign exchange commission charges.](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/multi-currency-accounts-for-international-businesses-1658321655849-compressed.png) Globalisation and digitalisation are two significant facets that businesses worldwide can’t overlook. While every startup’s or SMEs ultimate goal is to expand their operations globally, digitalisation has presented them with [a new set of opportunities and challenges](https://salt.pe/blog/pitfalls-and-promises-of-growing-your-business-internationally-cl1x78bg5357401jqnfb8bt462) to work on. Various Indian startups and small and medium enterprises (SMEs) are exploring the broader sectors of the market abroad, which implies that the SMEs need to engage in frequent transactions with foreign companies. Not only that, FDI and other kinds of foreign investments trickle into India via various channels and [remittances.](https://salt.pe/blog/guide-on-inward-outward-remittance-under-rbi)  All these fundamentals and aspects in a foreign trade call for foreign-/multi-currency transactions. If these entities hold a normal bank account, the foreign inward remittance would first be received in the foreign currency and then converted into the local currency.  For facilitating such a conversion, banks often charge a fee. However, if a multi-currency bank account is in question, the stats could be different. Most of the import/export businesses or SMEs involved in global transactions prefer using a multi-currency account for the ease it accords to their day-to-day transactions. But what all entails in setting up s multi-currency account? What are the pros and cons - Let’s explore. What is a Multi-currency Account? --------------------------------- As the name suggests, a multi-currency account is a bank service that allows one to receive, send or hold foreign currencies in a single bank account. The entities can choose to open a multi-currency account in a single bank rather than opening several normal accounts in various countries and bearing the expenses of maintaining them.   In simple terms, one account for multiple currencies, rather than opening a multitude of accounts for different currency transactions and keeping track of those account numbers. These accounts also save the foreign currency without converting them into local currency. A multi-currency account is useful for any business that does cross-border transactions like imports and exports, online stores that sell products in multiple countries, a freelancer who works with companies abroad, or a business with branches in several countries.  Normal bank accounts charge exorbitant fees and take a long time to transfer the money, which may not be affordable for SMEs and startups. Multi-currency account service offered by Salt, a neobank solution, caters to the needs of these small and growing enterprises for minimal fees and at online convenience.  **How does a multi-currency bank account work?** ------------------------------------------------ Multi-currency bank accounts perform similar functions to standard bank accounts but with support transactions and balances in several foreign currencies. ​ **Similar to the bank charging a fee to maintain a standard account, multi-currency accounts also require a fee to maintain these accounts apart from transaction fees and open fees.**  ![Multi-currency-account-for-international-banking](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/multi-currency-accounts-for-international-businesses-1-1658385016225-compressed.jpg) What are the Benefits of a Multi-currency Account? -------------------------------------------------- **Not all business entities require to open a multi-currency account. It's helpful for [SMEs, startups, and businesses dealing with international clients](https://salt.pe/blog/6-tips-to-manage-your-international-clients-efficiently-ckznpsxrq234211lqvtqyvm9ng), sending outward remittances in the form of salaries, payments, etc. If your organisation falls into any of these categories, then you should consider creating a multi-currency account due to the following benefits it provides:** **1\. Convenience: Most important feature of a multi-currency account is that it provides great convenience. You don't need to open several accounts to deal with different currencies. This saves time and money. It's efficient since all the currency balances are saved in a single account.**  **2\. Single account number: Your SME will have a single account number for all international transactions. No need to give different account numbers to your clients in China, the US, and Canada. 3\. Reconciliation is easy: With a single account for all your international transactions, month-end reconciliation is easy.  You don't need to tally several accounts and manage lots of adjustments required due to the exchange rate difference.** ** 4\. Saves commission on foreign exchange: If you are dealing with multi-currency transactions and have a single home currency account, your bank will charge you a foreign exchange commission for converting the currency. A multi-currency account saves you from paying the hefty commission. Hence it's economical too. **** 5\. Trade currencies: Even if you are an SME or a start-up, you can buy and sell currencies looking at the exchange rate is desirable at the right time. Most banks do not charge for these intra-account transfers. ** ### How to Open a Multi-currency Account? **There are a lot of financial institutions that support multi-currency accounts. You can open it by visiting the bank branch or online.**  **Mostly all the multi-currency accounts deal with the Dollar (USD), Pound (GBP), Euro (EUR), Australian Dollar (AUD), and other major fiat currencies. NRIs are offered international accounts, and several private banks may offer this service to individuals. However, opening multi-currency accounts in these banks requires a high minimum balance, and these accounts are mostly saved for premium clients.**  ** While there are traditional banks that consider such accounts as a privilege meant for few, neo-banking solutions like [Salt](http://salt.pe) helps SMEs hassle-free international transfers using multi-currency accounts without the need to  paying annual fee, hidden fee or additional charges on transfer.  Salt makes it easier to use multi-currency accounts for safe and secure cross-border transactions within 24 hours. ** ### Conclusion **Multi-currency accounts tremendously help facilitate international transactions by reducing complexity and removing foreign exchange commission charges. In no time, such accounts managed digitally, like those provided by Salt, will be necessary for businesses dealing with foreign clients.**  **With a neobank like Salt, it becomes easier to create and manage multi-currency accounts from the convenience of your home. Tap into efficiencies of scale by percolating markets abroad as a startup or SME using the multi-currency account by Salt today.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## RBI Guidelines For Foreign Inward Remittance Certificate (FIRC) Author: Ankit Parasher Published: 2022-07-19 Category: Inward Remittance Meta Title: RBI Guidelines For Foreign Inward Remittance Certificate (FIRC) Meta Description: If you're an Indian operating a business globally, then a FIRC becomes a very important document. Get familiar with FIRC and how it works. Read the full blog! Tags: RBI guideline for firc, Inward Remittance, receive international payment, Accept International payment, FIRC, receive money from abroad URL: https://salt.pe/blog/RBI-Guideline-For-FIRC ![Foreign-Inward-Remittance-Certificate-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/rbi-guidelines-for-foreign-inward-remittance-certificate-1658231179364-compressed.png) Suppose you're into exporting business or a startup offering services globally. In that case, foreign transactions must be a part of your daily life.  In the case of inward remittance to India, you need a FIRC as per the [RBI and FEMA guidelines](https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=6148&Mode=0). FEMA or the **Foreign Exchange Management Act**, the legislation covering the flow of money in and out of India and **RBI (Reserve Bank of India)** India's central bank and regulatory body, mandated having a certificate of proof of any transaction received from overseas to India. This certificate is known as Foreign Inward Remittance Certificate or the FIRC. Beneficiaries who receive international payments or cross-border payments, need to procure a FIRC as proof of the authenticity of the transaction.  FIRC is also called Foreign Inward Remittance Advice (FIRA).  There are many natural questions that come to mind when we first encounter the term FIRC, such as: **What's an FIRC?** **When do I need the FIRC?** **How can I get FIRC?**  **Or how important is FIRC?**  This blog is focused on how FIRC procurement works in India for **inward remittances** and what significance it holds in various aspects like tax-saving and other legal benefits in case of transactional disputes. Having a FIRC makes things easier from several perspectives, so let’s see what FIRC is all about. What is an FIRC? ---------------- First things first, let's know what FIRC stands for. It is for Foreign Inward Remittance Certificate. According to the [Foreign Exchange Dealers Association in India (FEDAI)](https://fedai.org.in/) and the Reserve Bank of India (RBI), a FIRC is a document that serves as evidence of foreign transfers to India. Financial institutions or similar authorities issue and accept this document as lawfully accepted proof that an individual or organisation has received payment in a foreign currency from overseas. Who needs a Foreign Inward Remittance Certificate? -------------------------------------------------- Goods and service exporters from India, individuals, and organisations working remotely within the country for overseas companies, global sellers, etc., all require a FIRC to prove they have received the payment from the opposite party outside India. Individuals or organisations that receive international payments or money transfers from abroad need to request the issue of a FIRC from the authorized dealer bank.  **[How long does it take to receive money from abroad to India?](https://salt.pe/blog/how-long-does-it-take-to-receive-money-from-abroad-to-india)** Why is FIRC Required? --------------------- FIRC is considered a monitor for all foreign transactions and transfers to India. As mentioned, India's central bank, The Reserve Bank of India, closely monitors all remittances from abroad flowing into India. Banks authorised for such remittances, known as Authorized Dealers or AD, are required to report such transactions to [RBI's Export Data Processing and Monitoring System or EDPMS](https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=10423&Mode=0).  FIRC does more than just serve as proof of payment. It also contains the essential remittance details like account number, beneficiary's name, the purpose of the payment, and the amount paid, which becomes useful for tax filing purposes because a FIRC entitles you to certain tax relaxation on service tax, as it's not levied on certain services provided overseas. Can banks issue FIRC? --------------------- Physical FIRC was discontinued by the end of 2016. Currently, Issuers can only [apply for an e-FIRC](https://freeinvoicebuilder.com/firc-receive-foreign-inward-remittance-certificate-india/). The answer is; Banks can issue an e-FIRC, but not all banks. According to the RBI guidelines, an e-FIRC can be issued only by [AD Category-I banks](https://blog.cashfree.com/firc/#:~:text=click%20here.-,What%20is%20AD%3F%20Is%20the%20beneficiary%20bank%20the%20same%20as%20the%20bank%20that%20issues%20the%20AD%3F,-AD%20stands%20for) authorised and monitored by RBI for such remittances under the law.  ![RBI-GUIDELINES-FOR-FOREIGN-INWARD-REMITTANCE-CERTIFICATE-FIRC](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-certificate-firc-1-1658220404081-compressed.png) Are there any charges for the issuance of FIRC? ----------------------------------------------- The [AD-1 banks](https://rbidocs.rbi.org.in/rdocs/FEMAMASTER/PDFs/1061.PDF) do charge a fee for issuing a FIRC. Although, the service fee is not the same and depends on the amount and the time of issue concerning the transaction timeline. The banks also take a turnaround time to issue a FIRC as it's not an immediate process like getting an [IMPS reference](https://paytm.com/blog/money-transfer/imps/what-is-imps-reference-number/#:~:text=National%20Financial%20Switch-,What%20is%20IMPS%20Reference%20Number%3F,status%20of%20your%20IMPS%20transaction.). The time taken by the bank depends on the authorisation process and if the documents submitted by the issuer were proper and complete. If you are receiving foreign payments from merchants and individuals using [Salt](https://www.salt.pe/remittance), you can download the FIRC on your dashboard free of cost!  What is the RBI limit for receiving inward remittances? ------------------------------------------------------- The inward remittance is capped at $2,500 per transaction, with up to 30 transactions permissible each calendar year.   ### Conclusion International payments and money transfers from abroad are quite a hassle, especially for SMEs. They require proper documentation and certificates for both taxes and income declaration proof. However, it’s given to abide by the laws and regulations for such transactions, no matter how complicated they are. Although you can surely expect convenience while dealing with such overseas transfers if you choose the right bank. That's why you need a banking service that offers low, transparent exchange rates, does not charge absurdly high fees, and is fast and easy to use. Besides all of these, the transactions should be fully compliant too! You can try [SALT](https://salt.pe/) for an amazing global banking experience with multi-currency accounts and easy international transfers.  Salt helps SMEs and freelancers process international payments within 24 hours at the best possible rates. FIRC Available for free. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Information Is Needed For A Wire Transfer To India? Author: Ankit Parasher Published: 2022-07-18 Meta Title: What information is needed for wire transfer to India? Meta Description: A wire transfer can move money electronically between individuals or organisations. Let's find out how to do it and what information is required. Tags: receive international payments , International Wire Transfer, international money transfer, transfer money to India URL: https://salt.pe/blog/what-information-is-needed-for-wire-transfer Sending and receiving international payments can be worrisome, especially if you aren't equipped with the right information. But a transfer to India can easily be made through a wire transfer. Let's find out what information is required to execute a transfer to India.  What is a Wire Transfer? ------------------------ The computerised method of transmitting money from one account to another, anywhere on the globe, is known as a "wire transfer." If you work abroad, a wire transfer is a safe and secure way to send money to friends or family in India. ![A wire transfer can move money electronically between individuals or organisations. Let's find out how to do it and what information is required. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/information-needed-for-a-wire-transfer-to-india-1658140376826-compressed.png) International wire transfers are quick, safe, and practical. You can use a wire transfer option to send money abroad and receive international payments in India. If the necessary information is provided, a wire transfer can also be used to send money for investments or a mortgage. Banks may impose a fee for wire transfers to India or other countries. Let's find out how to carry one out and what information is required.  What Information is Required to Receive Money From Abroad via a Wire Transfer? ------------------------------------------------------------------------------ In order to receive international payments from abroad or vice versa, the sender must supply details regarding the recipient's bank account, just like domestic transfers. Some institutions can also require a social insurance number (SIN) or an individual taxpayer identification number (ITIN) when sending money overseas. Depending on the recipient's bank, specific information may vary; however, the following is often needed: ![Information-required-for-wire-transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/information-for-wire-transfer-1658140413495-compressed.png) How to Carry out a Wire Transfer: --------------------------------- * **To initiate an international wire transfer to India, you must give instructions to your local bank by supplying a request form.** * **In the form for the wire transfer, enter the beneficiary's bank name, address, and account number, along with the IFSC code, beneficiary email address, and contact information.** ** * For a smooth wire transfer operation, mention the [SWIFT codes](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) of the beneficiary as well as your local bank. **** * Send the form to your local bank. **** * Within one or two business days, money will be sent from your account to the beneficiary's account. **** Features and Benefits of a Wire Transfer ---------------------------------------- **** * Wire transfer is a time-tested and reliable method of sending money to India. The money is credited to the recipient's account one or two days later. **** * To initiate a wire transfer, you simply send an instruction to your local bank. **** * You can wire transfer money to open fixed deposits, make investments, and pay off home loan EMIs. **** Now that we've established and understood how wire transfer to India works, the question is, does it happen instantly? Let's find out.  ### Does a Wire Transfer Take Place Right Away? Although not instantaneous, a wire transfer is speedy, and the service provider determines the delivery time. Domestic wire transfers through a bank typically take one to three business days. Wire transfers may take less than a day if you and the recipient have bank accounts with the same banking institution. The completion of international money transfers could take up to five business days. ****The best way to find the time taken for a wire transfer to complete is to check with the specified organisation since some banks or service providers may provide options to reduce the time required for a wire transfer. Additionally, certain nations, such as Afghanistan and Cuba, take a long time to pay. Your wire transfer will take longer if you send money from such nations. Additionally, one needs to avoid mistakes while transferring money through wire transfers. Below is a list of what to keep in mind.** ** What to Keep in Mind While Making a Wire Transfer? -------------------------------------------------- When sending money, be careful because wire transfers are irreversible. The most typical errors recorded are as follows: **** * The sender mistypes the name of the city or nation. * The sender forgets to provide the bank's address along with the name. * The SWIFT or IBAN code provided by the sender is incorrect. * The sender transfers money in a foreign currency that is not accepted by the bank or nonbank service provider receiving the payment. Because of these errors, there are chances that you may send your money to the wrong person, which could worsen processing delays. Because of this, all wire transfer specifics must be understood by both the sender and the recipient. Consider going the extra mile and contacting your service provider to get the specifics on wire transfer requirements and instructions. While you are aware of the information required to deposit money into a bank account, domestically or abroad, always be sure that the data you give the bank or wire transfer service provider is accurate and valid, and you'll be good to go!  A bank that takes care of all your needs and requirements can make a huge difference in international money transfers. Salt’s global banking solutions cater to SMEs and freelancers alike. Salt’s bank accounts are digitally managed and support multiple foreign currencies and come with a host of added utilities to transfer money from abroad or send an international wire transfer instantly! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Business Valuation Report: What it is? Who creates it? Why it's needed? Author: Udita Pal Published: 2022-07-14 Meta Title: Business Valuation Report: What it is? Who creates it? Why it's needed? Meta Description: Company Valuation Report fully analyses the value of a business, and takes into account all pertinent commercial and economic factors. Read more about Valuation Report here! Tags: company valuation report, indian startup founder, vcs, startup founders, MSMEs in India URL: https://salt.pe/blog/business-valuation-report ![Business Valuation Report](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/business-valuation-blog-1657794103981-compressed.jpg) Business Valuation Report: Let’s understand it ---------------------------------------------- A business valuation report is prepared to accurately describe and evaluate the value of a company or its assets while considering all market, industrial, and economic factors relevant to the startup or SME.  A business valuation report is a prescribed document for assessing the fair value of a business and is needed to serve various purposes, including taxation, sale value, establishing partner ownership, and other valuation purposes. The owners of a particular business, such as the founders of a startup or Board members of a company, turn to professional business evaluators to objectively estimate their business’s value.  ![Why-company-valuation-report-is-essential](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/business-valuation-report-2-1657880601989-compressed.jpg) The purpose of the valuation will decide the standard of value to be employed, the valuation strategy and the assumptions used to compute the evaluation. Each of these factors impacts the outcome of a business valuation. A company or its assets should be valued for reasons such as: * **A company may be sold, or a stake in it may be acquired** * **The combination of two businesses or an acquisition** * **Litigation** * **For taxation's sake** * **Insolvency/bankruptcy** * **Reporting finances periodically, etc.**  **Who Makes a Valuation Report?** --------------------------------- **[Section 247 of the Companies Act](https://taxguru.in/company-law/registered-valuer-provision-companies-act-2013.html) states that,** **“where a valuation is required to be made in respect of any property, stocks, shares, debentures, securities or goodwill or any other asset or net worth of a company or its liabilities under the provisions of this Act, it shall be valued by a person having such qualifications and experience and registered as a valuer in such manner and on such terms and conditions as may be prescribed and appointed by the audit committee or in its absence by the Board of Directors of that company.”** **Decoding the legal jargon, we can say that a business valuation report for any SME or an Indian startup can be prepared by:**  * **Land and Building: For the valuation of land and building, the registered valuer must be a graduate or post-graduate in Civil Engineering, town planning, or architecture and have a minimum of 3 to 5 years of experience.**  * **Securities and Financial Assets: Any person who is a member of the ICAI, ICSI, or Institute of Cost Accountants of India or is a specialised MBA in Finance and has a minimum of 3 years of experience is eligible to evaluate.**   * **Plant and Machinery: The registered valuer must be a graduate or post-graduate in Electrical or Mechanical Engineering, having a minimum experience of 3 to 5 years.**  ** Why A Business Valuation Report is Essential? --------------------------------------------- A business valuation report provides the owners of a company or the founders of an Indian startup with a range of information and figures regarding the company's genuine worth or value in market competition, asset values, and income values. Every startup founder or SME owner needs to be familiar with this knowledge. To show [business growth](https://salt.pe/blog/how-to-plan-big-for-your-small-business-cky5e8885708281ks2mh7ecpgq), the business valuation report should be obtained at least once a year.  Let’s discuss its significance in the context of Indian startups and SMEs: ****### 1\. A Better Comprehension of the Company's Assets It is imperative to receive as accurate value assessment as possible. Estimates are not acceptable because they are generalisations. For business owners to obtain enough insurance coverage, decide how much to reinvest in the company, and how much to sell their company for while still generating a profit, specific numbers must be obtained from valuation methodologies, and a business valuation report serves that purpose.** ** ### 2\. Recognizing the Business's Resale Value In order to dedicate more time to enhancing the company's value and obtaining a higher selling price, the valuation process should start well before the company is placed up for sale on the open market. As a business owner, you ought to be aware of the worth of your enterprise. ****### 3\. Discover the Company's Genuine Value When determining whether to sell your business or not, knowing its genuine worth is frequently a deciding factor. It also helps to show how a company's earnings and value have increased over the years. Prospective purchasers, investors, and VCs also want to see evidence of a company's long-term, continuous growth before they invest funds and trust in the company or startup.** ** ### 4\. Facilitates Mergers and Acquisitions Once you are aware of your company's valuation, you can bargain your way to the assessed valuation figures provided by a reputable and well-known valuation determination organisation. If you are being offered less for your company than it has been proven worth, you can reject the deal or suggest entering mediation. It will make it easier for both parties to come to a peaceful resolution. **** ### 5\. Brings in Investors The VCs and angel investors will want to see a complete company valuation report in case you're looking for new investors to help [support the expansion of your startup](https://salt.pe/blog/from-pre-seed-to-ipo-stages-of-a-startup-funding-cl1vyw5jx263211jqn87kxyuxk) or prevent it from going out of business. Additionally, you ought to provide prospective VCs and investors with a valuation forecast in light of their contributions. Investors are interested in knowing where their money is going and how they will make a profit. VCs, as potential investors, are more likely to invest when they can see how their money will advance the company, increase its value, and reinvest more in its products. ### The Bottom Line Even the finest valuer will struggle to get an appropriate value in a business valuation without accurate and complete data because it is a difficult procedure that calls for skill. Several online business valuation calculators are available right now, which may be helpful if you're curious about what your enterprise might be worth in general. But its' ideally always suggested to consult an expert.  [Table](https://salt.pe/table) by Salt helps Indian startups raising foreign capital get the valuation report for their fundraising. If you are looking for a hassle-free, digital first solution to sort all the banking and legal processes of the fundraising, Salt is the right address for you! ** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Long Does it Take to Receive Money from Abroad to India? Author: Ankit Parasher Published: 2022-07-13 Meta Title: How Long Does it Take to Receive Money from Abroad to India? Meta Description: Let’s find out the ins and outs of international money transfers to India and the usual time it takes for payments to be credited to your local bank account. Tags: accept intenrational payments, accept international payments , receive money from abroad URL: https://salt.pe/blog/How-Long-Does-it-Take-to-Receive-Money-from-Abroad-to-India When money is transferred directly to the bank account of a person or business located in another country, we call it an international money transfer. If you’ve ever had to receive money from abroad, either as a gift or as payment, you would know the formalities and factors involved in receiving money from abroad. These, including the regulations prevalent in the sender and receiver’s country, the dealings in local currencies and the subsequent conversion, impact how long it takes to receive money from abroad.  ![How-long-does-it-take-to-transfer-money-from-abroad](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/receive-money-from-abroad-to-india-1657966870791-compressed.png) **SWIFT** (Society for Worldwide Interbank Financial Telecommunication) is commonly used for international money transfers worldwide. This network enables banks and other financial institutions to interact with one another promptly and securely. When receiving money from abroad, there are certain questions that you should have the answers to, such as:  \- How is the money being sent to you?  \- What is the amount?  \- In what currency?  \- Who is going to pay for the money transfer fees?  Then you need to make sure that whatever details are required, may it be bank account details, **IBAN** (International Bank Account Number) and the **SWIFT** code of the recipient’s bank. Remittee must also note that certain fees are levied when you receive money from abroad, such as outgoing transfer fees, intermediary bank fees, incoming transfer fees and exchange rate fees. Different Ways to Receive Money from Abroad ------------------------------------------- There are various ways for people worldwide to opt for when deciding how to receive money from abroad. * **International money transfer services:** **Using an international money transfer service, you can receive money from abroad immediately into your bank account. You must submit your bank account information.** * **Bank-to-bank transfers:** **You can receive money from abroad by transferring funds from one bank account to another. The sender must initiate the transfer from their bank account, typically online banking. All you have to do is submit information such as your name, account number, residential address, the name of your bank, and a** [**SWIFT or Bank Identifier Code (BIC).**](https://salt.pe/blog/swift-code-explained) * **Money orders: The sender can request an international bank draft in any currency from an overseas financial institution, using cash from their account to meet the amount of the international guaranteed cheque.** **How long does it take to receive money from abroad? --------------------------------------------------- To give an exact timeline of how long will it take for you to receive money from abroad is not exactly possible as multiple factors have to be taken into consideration which can make the process slower or faster.** ** To give a rough estimate, receiving money from abroad can take anywhere from 24 hours to 2-5 business days. There are rules and regulations set in place to ensure a safe and secure transfer of funds, and these rules can affect the processing time as well. The processing time differs from platform to platform and can determine how long it will take before you officially receive money from abroad. ** ![Inward-remittance-india-explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-inward-remittance-1657966931915-compressed.jpg) **How can the process of receiving money from abroad be affected? --------------------------------------------------------------- The process of [receiving money from abroad](https://salt.pe/blog/fema-guidelines-for-foreign-inward-remittance) can be pretty simple and direct; however, the actual process may differ depending on various factors.** ** ### The bank can be closed due to holidays:  Gazetted holidays are common around the globe and can easily hinder the process of receiving money from abroad as services will be completely shut down during this time. **** ### Bank Cut-offs: Banks have their cut-off timings by which you have to submit your money transfer request or application. If the cut-off timing is missed, you must wait until the next day when services will resume. **** ### Amount of money being transferred:  The bigger the amount, the longer it would take for the banks to process the transaction and ensure that the money from abroad reaches you safely. **** ### Time zones:  Transferring and receiving money from abroad means that your money is travelling across time zones, and for your transaction to be processed, banks need to be open simultaneously. The working hours can be different and vary depending on the time zones of all banks that are involved in the process. ****### Fraud prevention methods:  When making international bank transfers, both consumers and banks place the utmost priority on security. As a result, several fraud prevention processes need to be completed, which can significantly lengthen the time it takes to make an international bank transfer. Transfer International Money With Salt  ---------------------------------------** **One of the major factors that can affect your timeline of receiving money from abroad is the platform you use for such transactions. Salt is one of the most trustworthy global banking platforms you can use to receive payments from abroad in the fastest way possible.**  **Open international bank account without incorporating your business overseas, and accept payments from clients abroad at the best possible rates within 24 hours to your Indian bank account. Salt seeks to ease up money transfers and handling for both SMEs and freelancers operating and transacting globally.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## WIRE Transfer Vs Bank Transfer in India [Pros and Cons discussed] Author: Sudhanshu Choudhary Published: 2022-07-12 Meta Title: WIRE Transfer Vs Bank Transfer in India [Pros and Cons discussed] Meta Description: Money can be sent to another bank account through wire transfers and bank transfers. Confused about how the two differ from one another? Which is the better alternative for you? Read on to learn more. Tags: International Wire Transfer, MSMEs in India, international money transfer, bank transfer, international payments , receive money from abroad URL: https://salt.pe/blog/WIRE-Transfer-Vs-Bank-Transfer-in-India Whether you are an SME dealing in export or import, a professional sending remittance from abroad, or an investor sending funds to a startup or an SME in India, wire transfer is one of the most popular ways to receive international payments from abroad. While bank transfers facilitate money transfers domestically, they cannot be used to facilitate cross-border transactions. Let's examine the distinctions between the two, so you can select the transfer method that best suits your needs. ![WIRE-TRANSFER](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-transfer-bank-transfer-1-1657870143518-compressed.jpg) Contents * [What is a Wire Transfer?](#what-is-a-wire-transfer) * [What is a Bank Transfer?](#what-is-a-bank-transfer) * [Difference Between Wire Transfer and Bank Transfer](#difference-between-wire-transfer-and-bank-transfer) What is a Wire Transfer? ------------------------ ![What is WIRE Transfer? - Explained](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-transfer-1657694950929-compressed.jpg) A wire transfer is a digital method of moving money between bank accounts within the global financial system. Wire transfer facilitates both international money transfers and domestic money transfers via a global interbank system like the SWIFT Network. SMEs operating globally receive international payments via wire transfers and vice versa.   The majority of banks in the world are participants in the SWIFT network system, which stands for the Society for Worldwide Interbank Financial Telecommunication. Every bank participating in SWIFT has a unique identification code to facilitate transactions. The [SWIFT code](https://salt.pe/blog/swift-code-explained) of the recipient bank is crucial if you want to send or receive an international wire transfer. Banks act as an intermediary between the sender and the receiver of the wire transfer. The sender requests a wire transfer and pays the fees. The bank sends a message containing all the necessary information about the transfer, the sender, and the receiver, to the receiver’s bank via the SWIFT system.   The processing time for wire transfers made using the SWIFT system might vary considering where the sender and receiver are located. Whether it's a bank or a third-party service, there is usually always a wire transfer fee charged by the service provider. What is a Bank Transfer? ------------------------ ![What is bank transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/bank-transfer-1657694973585-compressed.jpg) An electronic money transfer from one bank account to another is referred to as a bank transfer. The amount to be transferred is debited from the sender’s account and credited to the account of the receiver or the recipient. ACH (Automated Clearing House) is one of the most common domestic bank transfer types.  In the past, bank-to-bank transactions were inexpensive but took longer than wire transfers. However, technological and operational upgradation in the domestic banking systems have made it simple and quick for people within the same nation to transfer money to one another. These banks have either integrated underlying systems that banks can utilise to promote speedier transfers or have permitted third-party organisations to assist in the transfers.  Difference Between Wire Transfer and Bank Transfer -------------------------------------------------- Both solutions give a slightly different experience and have their own advantages and disadvantages. Following are the distinctions between wire transfers and bank transfers: * **The transfer mode in wire transfers involves banks, credit unions and service providers, whereas bank transfers take place directly through banks.**  * **Wire transfers use the SWIFT/ IBAN system, whereas bank transfers use ACH or RTGS, NFT, and IMPS (depends on country) system.** * **Wire transfers can be done both domestically and internationally, whereas bank transfers are done domestically. While ACH bank transfers are what domestic businesses use frequently, SMEs operating internationally use wire transfers.**  * **Banks levy fees on wire transfers, whereas bank transfers are usually free of cost, but a fee may be applicable if the amount transferred is over the set limit.** * **Wire transfers are instant, whereas bank transfers can take up to three days.**  *** While bank transfers are secure and reversible, wire transfers are irreversible and comparatively less secure.** *** Generally, less information is required for a wire transfer than for a bank transfer. For instance, you might only need to include the recipient's email address or mobile number. The recipient is responsible for providing information about their bank account.**  ### **Conclusion** **SMEs should take special care while handling transactions involving wire transfers since there are numerous formalities and documents involved. While both the transfers do the task of transferring money, their advantages are situation-specific. For instance, if a startup is looking for a cheaper transfer method, bank transfers are the ready answer.**  **However, if an SME is looking for an instant way to receive money from abroad, a [wire transfer](https://salt.pe/blog/wire-transfer-faqs-receive-money-to-india-with-tips-cl5cgh94t344211po71j9zbxn9) is the go-to option.**  **Remember that choosing the optimum time to send money online requires careful consideration of all the variables. And to carry out these procedures effectively and efficiently, a banking service that supports you and provides for your every need is an essential requirement.**  **That is where Salt steps in. Business banking has a new address that is cheaper, reliable, and virtual.  [Salt](https://salt.pe/) is not your average banking experience as it deals with all things related to global business banking, so you don't have to. Check it out today!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Wire Transfer FAQs: Receive Money To India [With Tips] Author: Ankit Parasher Published: 2022-07-08 Meta Title: Wire Transfer FAQs: Transfer Money Internationally [With Tips!] ] Meta Description: Find Your Answers To: - How can I receive money in India through wire transfer? - How long does receiving money via a wire transfer take? - What are the charges for wire transfers? - How can you check your transaction's status with the reference number? - AND MORE! Tags: Inward remittances, International Wire Transfer, MSMEs in India, Inward Remittance, receive international payment URL: https://salt.pe/blog/null ![FAQs-On-Wire-Transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-transfer-blog-1657518270363-compressed.jpg) As the world becomes a global village, Indian businesses, especially SMEs, have made their presence felt in the world markets. A [2021 PIB report](https://www.pib.gov.in/PressReleasePage.aspx?PRID=1759307#:~:text=With%20more%20than%2063%20million,the%20GDP%20from%20services%20sector.) states, “With more than 63 million MSMEs spread across the geographical expanse of India, MSMEs have been contributing nearly 40% of overall India's exports, contributing to approx. 6.11% of the country's manufacturing GDP & 24.63% of the GDP from the services sector.” India is also one of the largest receivers of inward remittance. Data from the World Bank shows India received a total of [$87 billion inward](https://www.business-standard.com/article/economy-policy/india-received-87-billion-in-remittances-in-2021-world-bank-121111800329_1.html) remittances in 2021.   While bank transfers are common in domestic dealings, wire transfers are a quicker and cheaper way to receive international payments from abroad, whether it is SMEs, entrepreneurs, households, or individuals. A wire transfer can also be used for domestic, in-country transactions. What is Wire Transfer? ---------------------- Wire transfer is the electronic transfer of money to make or receive international payments. As an Indian resident, you can safely receive inward remittance through wire transfers anywhere across the globe.   Wire transfer is a fast, safe and easy-to-use option for sending and receiving money across the world map. Essentially, you need a bank account via which wire transfers can be made. If you receive international payments or funds for your startup or SME from clients, partners, or investors living abroad, you need to know the rules and formalities concerning a wire transfer. Let us look at some frequently asked questions regarding wire transfers to India.  ![What-Is-Wire-Transfer](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/wire-transfer-infographic-1-1657518344799-compressed.jpg) Frequently Asked Questions: --------------------------- ### 1\. How can I receive money in India through wire transfer? **The sender should instruct their local bank by filing a request form with the following details to initiate a wire transfer to India. The request form should contain the basic financial information about the recipient:** * **Recipient’s credentials like name, recipient’s address, mobile number, and zip code.** * **Recipient’s bank account number** * **Name and IFSC code of the bank where the money has to be transferred.** * **SWIFT Code of the recipient’s bank as well as the sender’s local bank.**  **Make sure to give the correct details to the sender for a successful wire transfer. The bank charges a small fee from the customer for using the wire transfer facility. You can visit your bank to see if the funds are cleared, or through a neobank like Salt, you can get the updates online without the discomfort of visiting the bank.** ### 2\. What are the charges for wire transfers?  **Few banks may charge a commission on the receipt of the international transfer. While most only charge service tax on the conversion of foreign currency.  Following the GST Bill 2017, Goods and Services Tax (GST) charged for the currency conversion on the taxable value is:** * **1% of the transfers up to INR 1 lakh,**  * **0.5% plus INR 1000 on transfers above INR 1 lakh to INR 10 lakh, and**  * **0.1% plus INR 5,500  on transfers above INR 10 lakh.**  **Banks may charge for demand draft as well as levy courier charges.** ### 3\. How long does receiving money via a wire transfer take? **The duration to receive international payments via wire transfer depends upon the nature of the transaction. If the transfer is domestic, it only takes a business day because no clearance of funds is required; you can only transfer as much as you have in the bank account. However, as in this case of receiving the money from abroad in India, it might take 4-7 business days to process the transfer.**  ### 4\. In what currency the money is received?   **The transfer made from the foreign country will be in the local currency of the country where the sender resides currently. However, once the transfer is received in your bank account in India, the bank will convert it into INR. Your bank will charge you for the conversion of the money, including GST.**  ### 5\. How can you check your transaction's status with the reference number? **If you want to check the status of your transaction while receiving international payments or funds for yourself or your startup or SME, you can visit your bank with the following information:** 1.   **Recipient’s name** 2.   **Recipient’s account number** 3.  **Amount to be received** 4.  **Date of the transaction** 5.  **And the reference number of the transaction.** ### 6.  What is the limit to receiving funds in India? **As per RBI guidelines, A cap of $ 2,500 has been placed on individual remittances under the scheme. In addition, thirty inward remittances can be received by a single beneficiary under the scheme during a calendar year. Under the RDA arrangement, There is no limit on the remittance amount and the number of remittances. However, there is an upper cap of Rs.15.00 lakh for trade-related transactions.** Besides these restrictions, there is no cap on the number of wire transfers one can receive in India.  ### **7\. What benefits do the NRI account holders receive from a wire transfer?** **NRIs are not charged for intermediary services. To avail of the NRI benefits, they must give their details to the sender of the money abroad with the term ‘FCNR’ (Foreign Currency Non-Resident) or ‘NRI’ attached.** ### **8.  How can you retain the money in foreign currency?** **If you have an INR account, then funds will be converted automatically once they are received in your bank account in India. If you hold a foreign currency account, you must provide your EEFC/RFC account number to the sender to retain the money in the foreign currency. NRIs should use ‘FNCR’ (Foreign Currency Non-Resident) with the [SWIFT Code](https://salt.pe/blog/swift-code-explained) to retain the money in foreign currency.** **However, Salt offers multicurrency accounts in which you can freely keep your inward remittance in foreign currency. And if you want to convert it into INR, you can do it at the lowest rate.** ### **9.  Which bank to choose for wire transfer?** **Select a bank in which you have an active account for receiving the wire transfer. Wire transfers can be done through offline and online methods both. For the offline method, you need to visit the bank branch. While for the online approach, you can easily do it using your phone. Or you can avail of the services of Salt bank. Salt is India’s first virtual-only solution that provides a plethora of services to individuals and SMEs, including compliance and international banking at no hidden charges or markups.**  **Salt aims at helping startups and SMEs in international transactions by removing the complexities of cross-border transactions.  It bridges the gap between internationally operating SMEs and banking services, providing a single go-to place to carry out all the banking functions.  Receiving international payments and funds for your SME or startup through wire transfer is simple. You just need to choose the right bank and submit the correct details.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Guide On Inward And Outward Remittance Under RBI -[ The Essentials ] Author: Ankit Parasher Published: 2022-07-07 Meta Title: Guide on Inward And Outward Remittance Under RBI - [Must Know] Meta Description: Remittances to India are governed by several laws, most of which are governed under the Foreign Exchange Management Act (FEMA). Let's explore it in more detail. Tags: MSMEs in India, Inward Remittance, receive international payment, Accept International payment, FIRC, inward and outward remittance, receive money from abroad , outward remittance URL: https://salt.pe/blog/Guide-on-inward-outward-remittance-under-rbi Every nation has its regulations governing inward and outward remittance. And in India, this is the responsibility of the Reserve Bank of India. Remittances in India are governed by the Foreign Exchange Management Act (FEMA). ![Every nation has its regulations governing inward and outward remittance. And in India, this is the responsibility of the Reserve Bank of India. Remittances in India are governed by the Foreign Exchange Management Act (FEMA).](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/guide-on-inward-remittance-and-outward-remittance-under-rbi-1657260000792-compressed.png) **FEMA** specifies several reasons to receive international payments or to send money abroad. Individuals may receive inward remittance through donations, gifts, university fees, medical treatment, travel expenses, investments, proceeds from the sale of assets or domestic deposits, or even receive money from abroad as financial support. SMEs in India regularly receive international payments and send money in the form of outward remittances.  Contents * [What are Inward and Outward Remittances?](#what-are-inward-and-outward-remittances) * [FEMA (Foreign Exchange Management Act) Guidelines and Regulations for Remittances](#fema-foreign-exchange-management-act-guidelines-and-regulations-for-remittances) * [FEMA guidelines for Outward Remittances](#fema-guidelines-for-outward-remittances) * [FEMA Guidelines for Inward Remittances](#fema-guidelines-for-inward-remittances) * [The Bottom Line](#the-bottom-line) What are Inward and Outward Remittances? ---------------------------------------- * **Inward Remittance** Remittances from overseas to domestic banks are referred to as inward remittances. Thirty inward remittances are the maximum allowed in a given year. Depending on the financial institution, inward remittances may also be subject to a fee.  * **Outward Remittance** An outward remittance involves sending money in the form of foreign currency from a resident of one nation, like India, to a recipient who is in another nation (apart from Nepal and Bhutan) for any reason that has been permitted under the Foreign Exchange Management Act (FEMA). ![A broad framework of remittance channels](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-remittance-channels-1657260071055-compressed.png) Source: IMF, 2009 ### FEMA (Foreign Exchange Management Act) Guidelines and Regulations for Remittances [FEMA](https://www.rbi.org.in/SCRIPTs/BS_FemaNotifications.aspx?Id=183) covers all foreign exchange and remittance transactions. Individuals who want to transfer money into or out of India, SMEs and entrepreneurs who accept international payments and receive money from abroad. Let's understand these guidelines in some detail.  FEMA guidelines for Outward Remittances --------------------------------------- The **Liberalised Remittance Scheme (LRS)** under FEMA deals with outbound remittances for Indian citizens. Interestingly, the programme is referred to as **"liberalised"** because, before its implementation, it was impossible to send money outside of India without the RBI's express consent. Since the program's inception, the regulations have been gradually changed to enable Indian citizens to send more money abroad without requiring further authorisation from the RBI. * Indian citizens can transfer money to foreign bank accounts under the LRS **without obtaining a specific permit**. However, the money sent abroad can only be used for specific purposes, such as overseas education or medical treatment, tour and travel, etc.  * Outward remittances are only permitted up to an **annual cap of USD 250,000**, and remitters must submit their PAN card details for remittance transactions.  * Remitters are not permitted to send money to some organisations and nations prohibited under RBI guidelines. These are mainly nations the Indian government considers "non-cooperative" or organisations that may have ties to terrorism. FEMA Guidelines for Inward Remittances -------------------------------------- The RBI regulations for inward remittance differ slightly from those for outbound transfers. India is one of the nations that receive the **greatest amount** of remittances. This is partly due to a large number of NRIs who invest in businesses or real estate in India and the NRIs who live and work abroad and send money from abroad to support their families in India. * The RBI provides the **Rupee Drawing Arrangement (RDA)** and the **Money Transfer Service Scheme (MTSS)** as alternative ways to send money back to India from abroad. The amount of inward remittance using the RDA channel is not capped, although there is a ceiling for commercial payments. * Under the MTSS arrangement, a single receiver may receive 30 MTSS transfers annually at a USD 2,500 per transfer cap. Payments under the RDA and MTSS must be made through authorised dealer banks in India, and the procedure is strictly governed by the RBI. A remittee who receives international payments from abroad needs to procure a FIRC certificate to authorise the money received from abroad.   * FIRC or [Foreign Inward Remittance Certificate](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) is a certificate required under the regulatory process. This is essentially a receipt that banks issue to show that money has been transferred from abroad to India. * It serves as evidence that the money you receive from abroad is from reliable sources, demonstrates that all necessary checks have been made, and establishes the legality of the inward remittance. The Bottom Line --------------- International payments received or sent outside the country are covered by the FEMA legislation. Whether you're an Indian citizen trying to transfer money abroad to pay for a family member's education or an NRI looking to send money home to your family in India, you need to be aware of these legislations.  For SMEs, [sending and receiving money from abroad](https://salt.pe/blog/6-tips-to-manage-your-international-clients-efficiently-ckznpsxrq234211lqvtqyvm9ng) and accepting international payments can be a cumbersome task, considering the number of documents and formalities to be carried out while executing these transactions. So make sure to choose a bank that takes this load off your shoulders.  Salt, as a neobanking solution, offers international banking services to SMEs. With its multi-currency business account and remittance solutions, you can enjoy an effortless banking experience in countries across the world. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FEMA Guidelines For Foreign Inward Remittance [Must Know] Author: Ankit Parasher Published: 2022-07-04 Meta Title: FEMA Guidelines For Foreign Inward Remittance Meta Description: Answers to Questions Like : - What is an Inward Remittance - Which transactions are prohibited under FEMA? - What details are required for inward remittance? - What is the RBI limit for receiving inward remittance? Click To Read and Learn. Tags: FEMA, Fema guidelines, Inward remittance guidelines, indian startups, MSMEs in India, Inward Remittance URL: https://salt.pe/blog/Fema-guidelines-for-foreign-inward-remittance ![FEMA regulates the inward remittances for startups, SMEs, and individuals to keep their international transactions legitimate and legal. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fema-guidelines-for-inward-remittance-1657106323374-compressed.png) Every country has its own rules and regulations to control the financial markets and foreign remittances. **FEMA, or Foreign Exchange Management Act, 1999** under the Reserve Bank, lays out the guidelines and compliance for inward remittances in the case of India. FEMA regulates the huge influx of funds for startups, SMEs, and individuals to keep their international transactions legitimate and legal.  After the pandemic, there has been a shift in the global markets, adjusting the focus to Indian tech startups. A massive number of international companies have turned their heads to India for investments in startups and SMEs.  And truly, In 2021, India received a whopping [inward remittance of USD 87 billion, 20%](https://www.tribuneindia.com/news/business/india-remains-worlds-top-remittance-recipient-394532) of which was from the investors of the United States, according to the World Bank. What is an Inward Remittance?  ------------------------------ Inward remittance is the transfer of funds from an international bank to a domestic bank. When a resident of India receives money in their bank account from a relative from abroad or a startup receives funding from angel investors outside of India into its domestic bank account or a business receives payment from its' international clients, it's called an inward remittance. Inward remittance can also be in the form of employee compensation. The flow of capital and funds via Inward remittances provide a cushion to the financial economy of any country by enhancing the country's purchasing power and consumption and adding to the gross domestic product.  Legal formalities for Inward Remittances ---------------------------------------- Whether you are an NRI sending money to a family member or a startup or a SME procuring funds or payments from a foreign partner or a client, or vice versa, FEMA guidelines govern whatever transaction you undertake.  In the case of remittance - inward or outward, two parties are directly involved in the transaction: ### **1\. The Remitter** The Remitter is an investor, a client for the domestic venture, or any individual interested in sending remittances back home. The remitter transfers the money to the domestic bank. In order to do so, the remitter must submit these basic details to the bank to get the approval of the bank:  * **Remitter's name and address** * **Bank branch details** * **Nationality of the bank** * **Bank account number, and**  * **Bank swift code** ### **2\. The Remittee** **The Remittee on the other hand, must provide information to its bank concerning:** * **The contract of the transaction** * **Information of remittance that includes the remitter's credentials and amount in foreign currency** * **Invoice, and**  * **The purpose of the transaction** **The Remittee must get the [Foreign Inward Remittance Certificate (FIRC)](https://salt.pe/blog/foreign-inward-remittance-certificate-explained) as proof of ‘transfer of funds from overseas to India.’ This certificate acts as an endorsement to the receiver acquiring the payment. The approval of this certificate is essential for obtaining the foreign payment.** **The remitter and remittee must fulfil the fee obligations to facilitate overseas transactions.**  **The concerned bank charges a small fee in exchange for its services. The fee varies from bank to bank, and if the remitter uses the SWIFT system to make a remittance, the banks aren’t able to specify exactly the fees to be deducted from the remittance. Banks also add a markup to the actual exchange rate called currency spread, cutting pennies on every dollar you earn.** **You can override the formalities and roadblocks in traditional banking remittances by opting for [SALT](http://salt.pe), a neo-banking solution serving all your banking needs in a hassle-free and borderless way.  SALT’s multi-account, multi-currency global banking solutions help you transact business and receive remittances at the lowest FX rate and fees, within 24 hours!  Guidelines by FEMA  -------------------**  ![FEMA (Foreign Exchange Management Act) is applicable to the whole of India and equally applicable to the agencies and offices located outside India (which are owned or managed by an Indian Citizen). ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fema-guidelines-for-inward-remittance-1657106420633-compressed.png) Applicability of the FEMA **A remitter can send remittances to India via traditional methods like bank draft or telegraphic transfers. RBI lets the remitter send inward remittances to the remits residing in India via two routes; namely:** *** Money Transfer Service Scheme (MTSS): MTSS transfers are facilitated by reputable foreign money transfer services that work with authorised agents in India. MTSS transfers concern personal transfers and not for trade or charity donations.** ** * Approval for inward remittance is only granted if the documents required (already discussed under legal formalities) from both the parties (the remitter and the remittee) have been accurately filed and submitted. ***** The remittee needs to acquire the FIRC certificate under any circumstance.** ** * While perusing the  RDA route to send inward remittances: **** \- There is no maximum limit on the amount of money that can be sent via personal transfers \- The RBI restricts the amount of money that is sent under business transfers via the RDA route ***** When MTSS is the tool for sending inward remittance to India:  \- There is a ceiling of $2,500, beyond which transfers cannot be made \- The number of transactions is capped at 30 transfers a year to a single remittee, as specified by FEMA * Inward remittance via RDA or MTSS payments must be made by authorised agents in India.** ** * An inward remittance, by definition permissible by the RBI, should be transacted for the following reasons:  \- Education purposes \- Medical treatment \- Travel expense payments \- Investor funding via remittances  \- Businesses receiving payments from foreign clients \- Personal transactions in the form of gifts or living expenses. **** * Remittance of lottery winnings, winnings from races or riding, earnings from banned magazines, sweepstakes, and other such transactions that the central bank has prohibited are strictly forbidden by FEMA and RBI. * Under the FEMA, the Liberalised Remittance Scheme (LRS) lays down certain policies that make inward remittance transfers more accessible: ****i) Under LRS, all individuals, even minors, can make transactions of up to $250,000 in a fiscal year.  ii) Inward remittance under LRS with its maximum limit can be carried out through a current account, a capital account, or both. With the emergence of startups and the development of SMEs, the Indian economy requires huge investments to fund these ventures. Inward remittance is a less costly method of external financing than equity or debt obligations. These are made easier via online and offline routes. If you are a raising startup or a developing small or medium sized enterprise, avail of Salt’s cross-border payments and compliance solutions to receive  inward remittance in India without any complications.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Foreign Inward Remittance Certificate (FIRC) : International payments to India [Explained] Author: Sudhanshu Choudhary Published: 2022-07-02 Meta Title: Foreign Inward Remittance Certificate (FIRC) : International payments to India [Explained] Meta Description: Read the blog to find answers to: - What is a Foreign Inward Remittance Certificate? - Who issues FIRC? Who needs FIRC? - How to get FIRC? - What distinguishes the FIRC from the BRC? Tags: Inward Remittance, receive international payment, Accept International payment URL: https://salt.pe/blog/foreign-inward-remittance-certificate-explained What is a Foreign Inward Remittance Certificate? Foreign Inward Remittance Certificate (FIRC) is a [document](https://sharadasc.com/wp-content/uploads/2017/05/Foreign_Inward_Remittance_Certificate_FIRC.pdf) that serves as proof of transfer of inward remittance to India. The certificate has to be acquired by beneficiaries who receive international payments made to India. Most statutory authorities consider it to be documentary proof proving the legitimacy of the foreign funds received by the beneficiary. ![A FIRC is needed by the Indian vendors or service providers who receive international payments. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-certificate-1656766000607-compressed.png) The regulatory framework concerning FIRC and its issuance is governed majorly by two bodies; namely: * Reserve Bank of India (RBI) * **Foreign Exchange Dealers Association of India (FEDAI)** **When beneficiaries accept an international payment from outside India, only an** **authorized dealer** **(AD)** **may credit it to the beneficiary’s account (normally a Bank).**  **According to the [Foreign Exchange Management Act (FEMA)](https://www.rbi.org.in/SCRIPTs/BS_FemaNotifications.aspx?Id=183), an authorized dealer is a person/entity who has been granted permission by the Reserve Bank of India to transact in foreign currency or foreign securities.**  **​​The inward remittance is transferred to the recipient's account through an authorized dealer if the bank where the beneficiary has his account is not an AD itself. The AD banker will issue FIRC specifying the purpose of receipt, such as towards equity investment, advance against export of services or goods, capital expenditure, etc., based on the information provided by the recipient upon receipt of money.** **All this information may sound overwhelming, but let's take it slow and understand it in more detail.** ### Who issues FIRC? **FIRCs can only be granted by Authorized Dealer Category I (AD) banks in India, according to RBI and FEDAI (Foreign Exchange Dealers Association of India) regulations.** ### Who needs FIRC? **A FIRC is needed by the Indian vendors or service providers who receive international payments.** ** Here are some such scenarios in which it might be required: * A salaried employee who is paid in a foreign currency. * A freelancer who accepts international payments.  * Customers buying in foreign currency from an e-commerce store * A startup receiving inward remittance from a foreign investor * An export/import business that accepts international payment from its foreign clients * Individuals sending money to their relatives in India * Charity donations to India from overseas FIRC is given a lot of weightage as far as inward remittances from outside India are concerned. Therefore, beneficiaries must follow up with the banks and get the FIRC once the inward remittance has been credited. Close attention must be paid to the "purpose of remittance" because any incorrect mention of this can negatively affect how money is sent, used, and recorded. Now the question arises, how to get FIRC? Let us find out. How to get FIRC? ---------------- ### What is the FIRC request letter/ FIRC Certificate format? Your beneficiary must write a letter or send an email to their bank to request a FIRC. The following information should be included in the letter or email: ** ![Foreign Inward Remittance Certificate (FIRC) format](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/foreign-inward-remittance-certificate-firc-1656766054743-compressed.png) Foreign Inward Remittance Certificate (FIRC) Format ** * Beneficiary Information * Unique Transaction Reference number (UTR): The Transaction ID or UTR is a unique number assigned to each transaction.  * Customer name * Account number * Amount of remittance: Payment information, such as the amount realized in foreign currency and the equivalent in Indian rupees * Date and purpose of the payment (purpose of payment to match with the purpose shared at the time of remittance) * The postal address you want the advice to be delivered to; The postal code identifies the cross-border transaction's nature. The information provided above will aid in determining the source and destination of cash. It's critical, to be honest about the reason for the remittance. This is because banks typically want verification of the stated purpose. ###### ### What distinguishes the FIRC from the BRC? The distinction between the FIRC (Foreign Inward Remittance Certificate) and the BRC (Bank Realisation Certificate) is frequently unclear and can cause confusion for many people. So let's get on to the difference between the two.  Customers who receive an international payment from abroad are issued BRC and Foreign Inward Remittance certificates by the beneficiary's AD (Authorized Dealer) institutions. However, the following distinguishes them: * The bank issues a Foreign Inward Remittance Certificate in connection with receiving international payments from abroad. Now, this sum can be compensation for exports or an advance payment for air or ocean freight. It could even be compensation for consulting services. * The Bank Realization Certificate is issued expressly in connection with the export of goods by the beneficiary's bank. The bank issues the BRC for each shipment of export revenues. * Consider that you are an exporter. You probably wish to use the financial aid or import duty exemptions that the government or a government agency offers. To collect such advantages, you must confirm your exports to these organizations. BRC helps you qualify for such exemptions and serves as evidence of your export-related activity.  The Bottom Line --------------- The FIRC is also quite important regarding inward remittances, as was already mentioned. Therefore, when the inward remittance has been credited, it is crucial and imperative for the beneficiaries to follow up with the banks and get their FIRC issued as soon as feasible. ** **[Salt](https://salt.pe/) provides FIRC to its users for inward remittance transactions. Sign up today to accept foreign money to India in 6 currencies within 24 hours!** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Swift code (BIC Code) For Bank Transfers - [Simple Explanation] Author: Ankit Parasher Published: 2022-06-27 Meta Title: SWIFT/BIC Code For Bank Transfers - [ Simple Explanation ] Meta Description: What is a SWIFT/BIC code? When do we need it? Why do we need it? How to find it? What does it look like? - Explained here. Tags: swift code, international money transfer, international business expansion, BIC CODE URL: https://salt.pe/blog/swift-code-explained ![BIC is just as important as an account number for any international transaction, and one should be familiar with it for a smooth international transfer. Swift code (BIC Code)- What It is, how It Works an](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-swift-or-bic-code-global-fund-transfer-2-1656332333615-compressed.png) If you're looking to do an international money transfer or deal with them frequently, you must have stumbled upon the term BIC, more commonly known as SWIFT code. There's a chance it could've made you scratch your head but let us clear your head now. [SWIFT codes](https://salt.pe/blog/everything-you-need-to-know-about-swift-code-cl0gflqhx131121jpk4lqej9u1) are an integral part of international transactions. You could be a startup founder with distributed workforce or a friend looking to help another friend overseas. BIC or SWIFT codes hold the same significance. Let us look at what BIC / SWIFT codes mean, what they look like, and their significance! What is a Swift Code? --------------------- Small world? We don't agree! Do you know [there are over 44,000 banks and credit unions](https://www.extractable.com/insights/by-the-numbers-mega-banks-vs-community-banks/#:~:text=There%20are%2044%2C000%20banks%20and%20credit%20unions%20around%20the%20world.) worldwide? Imagine their identity solely decided by just their names. It would be chaos. That's where Swift codes come in. They are nothing but a unique identity of a bank or a financial institution. Technically speaking, It is an 8- to 11-character number used to identify a particular bank to make an international transaction.  Consider it a postal code for your bank, an easy way to ensure that your money goes to the right destination. SWIFT is short for Society for Worldwide Interbank Financial Telecommunication -  a global network that allows transactions between countries.  ### Is BIC and SWIFT Code the Same Thing? The answer is yes! BIC means Bank Identification Code, a three-word summary of the above info. BIC and SWIFT are interchangeable terms, but the function and meaning remain the same. What does it look like - the BIC or Swift code? ----------------------------------------------- Every BIC or SWIFT code follows the same format, i.e., between 8 to 11 characters long arranged in the following manner:  ![SWIFT/BIC Code Format](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/what-is-swift-or-bic-code-1656332009718-compressed.png) SWIFT/BIC Code Format * AAAA: First 4 letters represent the bank. It usually is a short form of the bank's or institution's full name. * BB:  2 letters represent the country's code where the bank is present. * CC/00:  2-character that can be letters or numbers represent the location/area of the bank's head office. * DDD/000:  3-character branch code stating where the specific branch is situated. Banks that do not use 3-character branch codes have shorter (8-characters) BIC! ### Where can I find my bank's BIC or SWIFT Code? You can find it on your bank statements or log in to your online banking account or make a call to your local branch. But all this sounds a little bit exhausting. You can find your bank’s SWIFT/BIC code in your bank account statements or use a [SWIFT/BIC finder](https://banksifsccode.com/swift-codes/) to get the right code for your transfer. When do we Need BIC / SWIFT Code? --------------------------------- Every International wire transfer asks for a BIC or SWIFT code. It's how money transfer services identify where to transfer money globally. However, a few exceptions exist when using an online banking service or third-party application. There's a chance you will be able to make the transfer without needing to enter the SWIFT code. Why in the world do we Need BIC / SWIFT Code? --------------------------------------------- As mentioned earlier, BIC acts as an international postal code for a bank. Imagine sending a postcard without any postal code and within your state only. What will happen with that postcard? The chances of being delivered to the wrong destination are significantly high. And if not, it may be returned.  Either way, it would be impossible for the postcard to reach its destination. So you see, the postcard is your money, and BIC works as a postal code, and that too at a global level, making sure that your money reaches only the right destination.  Are there any Charges for using BIC / SWIFT Code? ------------------------------------------------- There are no additional charges for using BIC or SWIFT codes. You are paying the same charges required by your bank whether you're using BIC or not for your international transaction charges like international transfer fees, exchange rates, taxes, etc.  With some banks, these rates could be very high. And there's a high chance that you will pay charges more than the amount itself while transferring a small amount internationally. That's why you need a banking service that offers low, transparent exchange rates, does not charge absurdly high fees and is fast and easy to use!  You can try [SALT](https://salt.pe/) for an amazing global banking experience and easy international transfers with facilities such as multi-currency support, multiple bank accounts, and smooth foreign transactions across 50 countries.  For SMEs, especially, SALT opens up [the delights of facilitating business across the globe](https://salt.pe/blog/pitfalls-and-promises-of-growing-your-business-internationally-cl1x78bg5357401jqnfb8bt462) seamlessly with its cross-border payments solutions, that helps businesses accept international payments using local bank accounts without incorporating their business overseas.  Head over to [Salt](https://app.salt.pe/signup) for a hassle-free international business banking experience! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Candid Advice from VCs To All Early Stage Founders [Actionable Tips] Author: Udita Pal Published: 2022-06-23 Meta Title: 5 Candid bits of Advice from 5 VCs To All Early Stage Founders [Actionable Tips] Meta Description: First-time founders need guidance to carry forward their startup’s vision. Read on to learn the five best candid pieces of advice from seed-stage VCs Tags: startup founders, Early-stage startups, first-time founders, early-stage founders, seed-stage startups URL: https://salt.pe/blog/null If you are an early-stage founder intent on leading your startup to its zenith, it is always advisable to keep the [investors’ expectations](https://salt.pe/blog/5-questions-to-ask-your-potential-vcs-and-angel-investors-goof-proof-list-cl3e5ivld585941jpglnqg7zy3) in mind. Without the VC money, early-stage startups risk running out of money and are left with fewer financing alternatives. Even if their suitcases are loaded, VCs investing in seed-stage startups are much more cautious about where to deploy their funds. In the current bear market, this trend is even more visible. For early-stage startups, this implies a slower pace of business and a greater struggle to close seed-stage rounds.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/venture-capitalists-early-stage-founders-start-up-founders-1655989972825-compressed.png) Early-stage startup founders  First-time founders need a lot of guidance on carrying forward their startup’s vision. These seed-stage VCs, besides bringing in capital, share some great pieces of advice, skills, and resources with their portfolio of early-stage startups. Read on to learn the five best candid pieces of advice from seed-stage VCs:  #1 It's not just about you -------------------------- ### Focus on the startup goals and startup team Ethan Austin, Co-founder and President of Give Forward, shares the best piece of advice he received from a VC as an early-stage founder, “The best advice is not to give yourself too much credit when times are good and too much blame when times are bad. Once you realize that luck plays a necessary role in success, it makes you both more humble and more self-confident at the same time.” VCs advise early-stage startups to run their business ‘like it’s a business.’ Startup ecosystems are probably the best place for any business to thrive in. Make profitability a goal, manage expenses aggressively, and learn to keep your personal vision distinct from the company’s goals.  In this context, Jamyn Edis, Founder and CEO of Dash Lab, says, “Don't believe your own press, good or bad. Don't take yourself too seriously, even if you're trying to change the world. Never lose sight of the important stuff: love, friends, family.” The founders should concentrate their efforts on developing relationships with mentors and senior experienced people. They should ask them questions, however silly or stupid they sound. These interactions will soon have the founders climbing up the ladder, taking others along.   #2 Show; Don't tell ------------------- ### Your actions should match your words “For startups, being evidentiary about your value proposition is huge. So many upstarts talk about being the Facebook Killer or the X for Y, loftily and prematurely positioning them among mega successes. Talking instead about what your company does and has achieved sets the stage for your vision in a way that is authentic, believable, and much less highfalutin. Always be a producer of value, so you can highlight current and translatable proof of what you factually can do versus what you aspire to become,” says Shaun Johnson, Co-founder and CEO of Startup Institute.  Seed-stage VCs advise early-state founders to be as authentic as possible. Presenting lofty claims and unachievable goals only gives a hyperrealistic view of things but cannot entice the VC to invest in the early-stage startup if the early-stage startup lacks a roadmap or course of action. While every founder may want to be a Bill Gates, only rarely can someone match their calibre. Instead, it is feasible to work on one’s weaknesses and show rather than tell how to do business the right way.   #3 Get comfortable with the unknown  ------------------------------------ ### Know well your blindspots ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/venture-capitalists-early-stage-founders-start-up-founders-1655990218973-compressed.jpg) Aaron O'Hearn on being a startup founder. While there is ample need to research your startup idea, seek guidance, and work in conjunction with a team to kickstart the operations, not everything turns out as planned. Businesses get affected by the social, political, cultural, and economic factors which are external to and not under the control of the startup. Prudence lies in preparing well in advance for unforeseen circumstances - counting the probable losses but ignoring the probable gains.  Also, first-time founders should realize their blind spots. They must act with conviction, believe in their intuition, and build relationships. But if they know themselves as not-so-good leaders, they should step down and allow the best person to take the responsibility.  #4 Find the balance ------------------- ### Never lose focus on what you are building “Founders should proceed in a balanced fashion—aim for growth while keeping an eye on capital efficiency. You need to spend money on marketing and sales even during a down cycle. However, it must be done in a prudent way,” says Gale Wilkinson, Managing Partner at Vitalize Venture Capital. While there is no dearth of talent, money, and ideas for the present startup ecosystem, these startups lack general management. The resources get eaten up, stuff takes longer to be completed than it usually does, and people struggle to coordinate and make a business work. If such a case scenario persists, it should be fixed before the startup crumbles due to inefficiency and poor management. There’s an even greater need to balance different functions within an early-stage startup that works on a strict budget, has limited team members, and has to perform within a set deadline.  \-Chris Moore, partner at Redpoint Venture, reiterates, "Above all else, never lose focus on what you're building. The numbers don't lie. If your thing is working then VCs will always pay attention." #5 Know when to let go ---------------------- ### Not all Ideas are worthy of being adopted “As a founder—or anyone who feels proud of and close to the product he or she creates—you struggle to have the right perspective about your business. It's easy to get too close, and that can be distracting. Here's the good and bad news: No one is looking at your work as closely as you are. So, remember that when you're on the hour four debating which shade of navy blue works best for your logo. Yes, details matter. But at a certain point, you have to let go and move on to the next thing,” says Pavia Rosati, Founder of Fathom Though first-time founders must be proud of what they build and how they build it, it is also necessary that they realize that the product has no actual demand in the market or the idea won’t lead to a profitable business. Founders should also keep in mind what their competitors are doing but not stress themselves out worrying about it. Being direct and transparent with the team, even in worst-case scenarios, being kind and empathetic toward their needs, and encouraging them to take part in the decision making can also help first-time founders analyze whether an idea is worth taking the risk.  Parul Singh, principal of Founder Collective, says that early-stage founders should ask themselves, "Do you have the endurance for the marathon version of your company, or does this only work as a sprint? Can you survive if your product doesn't take off for 12-24 months? How about 36 months? The reality is that startups often struggle for a long time, and the beginning can be the slowest part." Did you find the above gems of advice from early-stage VCs to first-time founders as effective? If you are a first-time founder of an early-stage startup looking to manage your international finances or seek FDI funds, Salt neo banking solutions and Table FDI solutions have got you sorted. Head over to Salt to claim your ticket to hassle-free finance and banking solutions! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pivot Your Startup Fearlessly, Not Stupidly - [Dos and Don'ts] Author: Ankit Parasher Published: 2022-06-08 Meta Title: Early stage startup pivot Meta Description: Not all startup pivot stories are glamorous as they seem to be. But if done right, no doubt, pivoting could set you up for greater success. Tags: stratup pivot, start up pivoting, pivot your startup , pivoting startup, startup URL: https://salt.pe/blog/null Modifications and alterations are an inevitable part of running any business. Companies should continuously seek to streamline sales funnels, decrease costs, and better understand their consumers' demands to be successful. However, in some situations, such as the Covid-19 pandemic, which sent economies around the world into chaos, businesses require more than minor adjustments to stay afloat. This is where pivoting comes in.  ![Not all startup pivot stories are glamorous as they seem to be. But if done right, no doubt, pivoting could set you up for greater success. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pivot-startup-salt-1-1654677587947-compressed.jpg) Pivoting typically refers to any large-scale adjustment to your core business in order to boost income, drastically reduce expenses, or respond to market opportunities. No doubt, we’ve all heard about companies that became hugely successful as a result of a proactive pivot. But is pivot really necessary? When should companies pivot, and how should they do it? Here’s all you need to know. ![Not all startup pivot stories are glamorous as they seem to be. But if done right, no doubt, pivoting could set you up for greater success. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/startup-pivot-1-1654677663461-compressed.png) ### Signs you should look for before startup pivot How do you know when the right time to pivot your business is? Here are some signs to look out for : \- Despite investing a significant amount of money and resources, there is [little progress](https://blog.salt.pe/how-to-plan-big-for-your-small-business-cky5e8885708281ks2mh7ecpgq/). \- There's an intense competition that you can't keep up with \- Only one of your business's features or services is successful \- Customers aren't reacting to your products the way you expected. \- Your perspective on the industry has shifted. \- Your Target Market Is No Longer Viable \- Your earnings are decreasing. \- Your clients and staff are abandoning you. \- You're no longer inspired or motivated. \- Your gut instinct tells you to. The 3 Dos and Donts of a Successful Pivot ----------------------------------------- The Dos ------- ### 1\. Listen to customers [Companies often fail](https://blog.salt.pe/founders-guide-to-vital-startup-metrics-make-better-decisions-ckyidc0qt510281ko5dxjwkx51/) because they offer a product or service that customers no longer need. It is crucial to ensure your current customers are on board when developing new offerings. To achieve this, listen to your current customers before you act. Reverse engineering from a customer's perspective has several potential benefits. If customers have been invited to provide initial input and the product has been developed accordingly, you ensure a pre-existing sales channel once the product is released. Furthermore, current customers can be used as ready-made case studies when introducing the new offering, thereby providing third-party validation for potential customers. There are thousands of companies scrambling to make changes right now, and those in your industry are most likely doing the same. Before pivoting, examine what your direct competitors are doing and how you can improve. Examine what other companies are doing and see if you can replicate their success with new products, services, or solutions. You may not be able to achieve significant results if you plan to offer the same items or services as your competitors.  Likewise, assess the size of your competition and whether your startup can compete with them. If a business strategy works for someone else in your field, it might work for you as well.​ ### 2\. Strategise before making a move Pivoting is an excellent way to expand your customer base and win consumer loyalty. However, if not done correctly, a pivot might result in the loss of loyal clients. As a result, growing and developing a company demands a well-thought-out strategy and a well-defined methodology. The best way to pivot a business successfully is to rely on your strengths and core competencies. Before implementing a pivot, test your product, and devise a pivoting strategy that aligns with your core departments. You should also make sure everyone in your organisation is aware of and on board with the pivot before making any major changes.  The Donts​ ---------- ### 1\. Avoiding trends A pivot can be extremely beneficial for a startup that has hit a snag and is unable to move forward. On the other hand, if you decide to pivot your firm on a new path with little consideration for where it will go next, you're likely to hit another hurdle, albeit under different circumstances. To avoid this, you must take advantage of current trends. New technologies are always being developed, so why not take advantage of them?   Technology trends generally evolve in tandem with changing consumer wants and behaviour, and failing to adapt could result in your own customers being lured away by more innovative competitors.​ **2\. Not leveraging existing resources** Sometimes the only change a company might need is to drive innovation by taking its existing products and services and targeting a new consumer segment or market. The company should thoroughly examine what consumers require most at a specific point in time and how they may meet that demand using existing resources. While you may need to modify resources to accommodate a new scenario, this allows you to take advantage of your current capabilities and solutions while also solving new challenges.  3\. Not having a proper reason for pivoting  With so many companies pivoting and achieving huge success, it's easy for naive founders to think pivoting is the magic pill that solves all their problems. In reality, pivoting should be considered only when absolutely essential and all other options have been exhausted.  The truth is that every startup faces significant challenges on its way to success. When things get rough, businesses should ask themselves, "Can this problem be handled with further research, customer development, money, or other means?". If the answer is "no," that’s when you should consider pivoting. Startups that pivoted gracefully -------------------------------- Looking to get inspired by the success stories of companies that made it? Here are two famous startups that pivoted gracefully.​ * Netflix  Netflix is an excellent example of how to pivot successfully. In the modern-day,  Netflix has become synonymous with binge-watching entire seasons of original Netflix series. Viewers, however, tend to forget that Netflix used to be the service that delivered DVDs to your mailbox. Founded by Marc Randolph and Reed Hastings,  Netflix began as a video renting service in August 1997. Users could order movies on the Netflix website and have them delivered to their doors.  At the time, Netflix's business model competed directly with traditional movie rental establishments. In 2007, After YouTube demonstrated that streaming video was technologically ready, Netflix launched its streaming service. And the rest, as we know, is history.​ * Instagram Instagram is now one of the most widely used social networking sites. The image-and video-sharing service, which is owned by Meta (formerly Facebook), is worth an estimated $100 billion and boasts of more than 1 billion users. Instagram began as a basic prototype created by co-founder Kevin Systrom while learning to code. Originally named Burbn, it started out as an online service that allowed users to check-in at their favourite places. They could also share pictures. Burbn, however, aimed to be everything at once, including a check-in app, a friend-meetup service, and a photo-sharing platform. After noticing that photographs were the most popular feature among users, Kevin deleted the other functions and rebranded the app as Instagram. Two years later, Facebook acquired Instagram for $1 billion. Conclusion ---------- Any firm that is pivoting or delivering a new core offering is at a crucial stage in its development journey. By understanding the ins and outs as well the dos and donts of pivoting, firms can successfully pivot their startup for greater success.  Are you looking to pivot your existing business by taking it global? Salt has you covered. Stop worrying about the challenges of international expansion and focus on your startup with the help of Salt, the world’s leading neo-bank.  To learn more about Salt and its offerings, click [here](https://salt.pe/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Inevitable Situations Aren’t Always Unsolvable: Founder Burnout [Self-help Tips] Author: Udita Pal Published: 2022-06-03 Meta Title: startup founder burnout at work Meta Description: Burnout, if not diagnosed and handled correctly, can derail the startup. Here are a few tips for startup founders to manage burnout. Tags: early stage startup, early stage founders, first time founders URL: https://salt.pe/blog/null > “You can think of a startup as a way to compress your whole working life into a few years.” > > ~ Paul Graham, cofounder, Y Combinator Facing stress at work is probably a daily cycle for an early-stage founder. But what about the burnout that these founders, especially first-time founders, face? Founder burnout is a very less-talked-about issue, but an increasingly common challenge founders of early-stage startups face. Burnout is very different from everyday stress and, if not diagnosed and handled correctly, can completely derail the founder and the startup.   ![Facing stress at work is probably a daily cycle for an early-stage founder. But what about the burnout that these founders, especially first-time founders, face? Founder burnout is a very less-talked-about issue, but an increasingly common challenge founders of early-stage startups face. Burnout is very different from everyday stress and, if not diagnosed and handled correctly, can completely derail the founder and the startup. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/startup-founder-burnout-at-work-1654241465866-compressed.png) Every founder, whether a first-time founder or a seasoned one, has gone through episodes of a lull when their oomph seems to have died down. There could be innumerable reasons for this loss of passion. It may be that the growth curve of the startup has stagnated, the solicited response from customers isn’t very favorable, or the team is facing a conflict of ideas. It could even be a positive reason for a probable burnout phase. For instance, a founder saw her passion waning when her business reached where she wanted it to be. Another founder felt their business was headed in a new direction, but the direction didn’t align with their core strengths.  Pete Daffern, a seasoned three-time CEO, says, "Most CEOs go into these sale processes without a full set of cards and with incredibly delusional expectations. This helps set the stage for crushing disappointment, from which some never fully recover." In medical terms, burnout may be described as a  psychological condition or a state of chronic stress leading to physical and emotional exhaustion, cynicism and detachment, and feelings of lack of accomplishment. Burnout, as a concept, was developed by Christina Maslach, Professor of Social Psychology at UC Berkeley.  What does it feel like to be burnt out? --------------------------------------- Psychologists Herbert Freudenberger and Gail North developed a 12-stage model visualizing the progression of a burnout phase.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/startup-founder-burnout-work-1654250066471-compressed.png) 1\. The compulsive need to prove oneself— Obsessed with demonstrating self-worth 2\. Working tirelessly — finding oneself incapable of switching off 3\. Not paying attention to basic needs — lack of sleep, lack of healthy eating, and lack of social interaction. 4\. Not solving conflicts — problems are often dismissed. 5\. Revising the value system — values become skewed, friends and family are dismissed, and hobbies become irrelevant. 6\. Living in denial of the emerging issues— intolerance, cynicism, and aggression; perceiving collaborators as stupid;  problems are viewed as caused by work. 7\. Withdrawing from social life— social life small or nonexistent, hard social contacts. 8\. Odd behavioral changes — changes in behavior obvious to friends and family. 9\. Depersonalizing oneself — seeing neither self nor others as valuable. 10\. Inner loneliness — feeling empty inside. 11\. Depression and anxiety — feeling lost, exhausted, and pessimist about the future. 12\. Burnout syndrome — mental and physical collapses; medical attention required Founders relate their burnout experiences very vividly and had a lot to learn and work upon from these experiences. **Joel Gascoigne**, Buffer co-founder and CEO, says, “I had nothing left. This is how I’d describe my experience of burnout: I lost motivation. I just didn’t care. I knew I cared deeply, but I had nothing left. I couldn’t get up in the morning. I felt very sensitive and emotional. It was like anything could set me off and make me well up. I cried a lot, by myself and with people close to me.” **Rebecca Taylor**, the founder of Aquarate, related her burnout experience, saying,  “I started experiencing migraines and insomnia. I just assumed it was just something that comes from being a founder. When I reflect on it, I was definitely burned out. I felt depressed and completely exhausted. Everything I thought about my business was cynical, and all the passion I once had was gone.” **Mark O’ Hara**, the founder of Thrift, compares his burnout experience to a mental treacle. He says, “In a short space of time, I went from having clear thoughts and lots of energy, to what felt like my whole body and thought process were in a thick haze. I felt empty, devoid of any motivation, and mentally and physically exhausted. I thought it was just a ‘tired phase’ I was going through. That it would simply sort itself out on its own - as if it were a cold. The only person that knew something wasn't right was my wife, Claire.” How to avoid burnout?  ---------------------- ### Don't go for temporary fixes. Re-evaluate Stop. Get down from the hamster wheel and sit still for a bit. Get back to the basics and re-evaluate what your strengths and passions are. And, of course, what you love doing. Now pull out a list of activities you are used to doing at your early-stage startup. Stop doing the things or at least reduce the things that interest you less and outsource them. Even if your business is going on successfully, there are times when you want to give up for the exhilarating efforts and strengths you need to put up as a first-time founder drain you too often.  ### Reconnect to what drives you Undertake a personal value assessment to ensure you haven’t entirely discharged your personal and professional superpowers. Take a break, and escape from the work-life. Go on a retreat. Connect with friends, mentors, professionals, or even hobbies that help can help you sail through your burnout phase.   ### Prevent burnout in the future To prevent burnout, founders must have a perspective and rest now and then to rejuvenate. For that, create a habit of disconnecting from work and taking a true vacation once a year. Practice a hobby and pick those things in which you can progress and feel fulfilled from achievements that are beyond work.  Seeking the professional help of a therapist or a coach could be another way to upholster your mental fabric. Such relationships should be already established during the course of regular work.  Burnouts can happen to anyone at any stage of their startup journey. What is essential is that the signs are recognized and diagnosed at the right time. Your startup would need you at every stage in its lifecycle, so cool down yourself and prevent losing your zeal, prevent burnout! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Questions To Ask Your Potential VCs and Angel Investors [Goof-proof list] Author: Sudhanshu Choudhary Published: 2022-05-20 Tags: Angel Investors, Startup fundraising, seed stage startup , investor founder relationship, VC and Angel Investor, seed stage fudraising, early stage startup, startup funding round URL: https://salt.pe/blog/null Here are the five most essential questions that founders of startups need to ask their investors and VCs during an investment round.   ![5 Questions To Ask Your Potential VCs and Angel Investors ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/0-1-1653033997470-compressed.jpg) How often have we heard investors bombarding the founders with questions during pitch decks and investment rounds - questions that unsettle them and, if not answered satisfactorily, cost founders their chance to crucial investment. Founders, too, need to brace themselves to answer all kinds of questions, from product-market fit to traction strategies.  We talk less about the concerns founders face, and the questions founders want to ask their potential VCs and angel investors. Why does a disbalance exist in the power equation between founders and investors?  Maximilian Fleitmann, CEO at BaseTemplates and partner at Richmond View Ventures, considers this VC/angel/FDI investment a marriage. You cannot marry a stranger, and you would like to learn about your partner as much as you can before you marry them. The same goes for the investor-founder relationship.   Communication is vital to any relationship, and more critical is that both parties stand on an equal footing. Let’s talk about the five most essential questions that founders of startups need to ask their investors and VCs.  ![Here are the five most essential questions that founders of startups need to ask their investors and VCs during an investment round.](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/3-9-1653034079587-compressed.jpg) #1 What value adds will you bring to us, and how long will these last? ---------------------------------------------------------------------- This is the first question every startup should ask their potential investor. As founders, you must realize that the success rate for startups is pretty low, and getting an A-lister of an investor in every position can be a great boost for your startup’s future prospects. An investor doesn’t just bring funds; they bring special skills and add-on services that can support you in your startup journey.   No one-size-fits-all model of investment will ever ensure great success. Startups should ask investors if they are ready to customize their policies and add-ons to suit your organization's specific needs.  Ask clearly about how the association, if materialized, would bring benefits to your firm and help you achieve the set goals and pivot at the right time. Investors and VCs bring with them great networks and connections. An investor can also help you align your hiring process with your organizational goals and help you in hiring the right talent. They can also help decide the marketing approach, supply chain, business development and scaling, pricing models, etc.     #2 In what other companies from our sector have you invested? -------------------------------------------------------------  It is always good to gauge your investors' experience and work profile. By getting to know about founders and startups, they have worked with and succeeded in, you get a good opportunity to conduct due diligence and background checks on your investors. Most investors won’t divulge these details unless asked to do so.  The question is critical and relevant because if the investors have already invested in one of your competitors’ businesses, your chance of getting an investment is null. It is against the general practice to fund competing businesses simultaneously.  At times, the investors contemplate the market space to know the potential investment options available. In that case, the VC or investment firm will reach out to you just like your competitors. Ultimately, you decide whether you want to place your bets and compete for the investment.    #3 How do you think your current portfolio of companies has benefitted most from your guidance? ----------------------------------------------------------------------------------------------- Ask the investors for some examples where they brought significant value-adds to the companies they invested in. Though past performance isn’t a guarantor of future success, it will surely let you know about the investors' future behaviour and how they will help you accomplish your startup goals.  Ask for particular examples of benefits the investor bought to the company it previously or is currently backing. Ask for references of founders the investors have worked with in the past.  An investor of substantial caliber would have some great references and examples to share of how they brought benefits to the startup's business during their association. This question and the subsequent task of cross-checking the references will help you measure the worth of the investor and the depth of their backing.   #4 Are there any companies you invested in that didn’t turn out well? What could be the possible reason for the failure?  ------------------------------------------------------------------------------------------------------------------------- If you are wondering why this question needs to be asked, just remember that the real test of the people is in the worst of the times. While you ask this question, you may come out to be an informed and sophisticated founder, and the investor would also know that you are ready for the best and the worst.  At the same time, you get a reference that will provide you with a first-hand account of the investors’ behaviour and perspective during difficult or conflicting times.  #5 Why us?  ----------- This may be the ending note of your question-answer round during the pitch deck, but it is an excellent question to ask your potential investors. You will know beforehand what to expect and, conversely, investor expectations from the relationship. You will also know the risks and concerns investor perceives or sees in your venture. You can discuss and clear out these concerns during the investment process.  The feedback can also be vital to look at your business from a new perspective and understand your shortcomings. The investors also get an impression of your openness to feedback and readiness to change and can become better invested in your business later on.    Also, you will immediately get an idea of whether the meeting will lead to the investor funding for your venture or not. If the investor asks for a follow-up meeting, they are interested in your business, and you should consider preparing yourself for the next round of conversations. Who knows, the next meet-up may be the day you end up with the cheque from the investor or VC.   While founders would be tempted to accept the first check offered to them, they must realize that capital comes at a cost. You are exchanging a part of your company's equity for that capital and entering into a long-term relationship with your angel investor or VC. The due diligence and background info digging become even more pertinent if startups access funds via FDI.  ​[Table](https://salt.pe/table) by [Salt](http://salt.pe/) can help your startup manage the banking and legal processes involved in fundraising via foreign capital. The startups get all the required assistance with RBI and MCA filings, opening a capital bank account, and transferring funds. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Storytelling In Fundraising: 8 Non-Negotiable Rules To Follow [Ultimate list] Author: Ankit Parasher Published: 2022-05-16 Tags: Investment deck for startups , Pitch deck for startups, Fundraising, Fundraising deck , Storytelling in fundraising URL: https://salt.pe/blog/null ![Storytelling In Fundraising: 8 Non-Negotiable Rules To Follow [Ultimate List]](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-15-1652685929989-compressed.jpg) Fundraising is often one of the most challenging parts of running a startup, even more so when working with unconventional business models. If it is your first time fundraising for your startup, there is a high probability of making mistakes when presenting your pitch, most of which are easily avoidable with the right guidance. Upon looking up “how to deliver a fundraising pitch,” you will be greeted by dozens of articles, each preaching something different from the others, with no consensus in sight. To cut through the murky waters of fundraising for startups, we’ve compiled the ultimate list of the eight non negotiable rules for making your pitch to a [potential investor](https://blog.salt.pe/5-questions-to-ask-your-potential-vcs-and-angel-investors-goof-proof-list-cl3e5ivld585941jpglnqg7zy3/). Summarize Your Pitch -------------------- ![Looking to raise capital for your brand new startup? Read on to learn more about the eight non negotiable rules of fundraising.](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/3-7-1652686035253-compressed.jpg) You finally get to make your pitch to an investor. A key point to keep in mind at this stage is to get rid of repetition and keep your investors engaged by keeping non essential to a minimum. Your product might be the next Tesla, but if you fail to keep an audience of one, i.e., your investor, engaged, you’ll have a tough time keeping up with the attention spans of regular people. Keep the specifics to a minimum unless pressed for details, saving you effort and your investors' time. Therefore, condensing your pitch into a simple message that you wish to get across while fundraising remains best. A Picture Is Worth A Thousand Words ----------------------------------- A picture, whether a graph or a diagram, is much more effective at getting your point across than words. Often your vision might get lost in a torrent of words, and visual cues can prove very productive in eliciting a response from your audience. Graphics or images make your story much more memorable and accessible, forming a connection with investors and establishing the core ideas. Likewise, infographics are an excellent way to summarize information.  Fundraising campaigns without any imagery are dull and show a lack of preparedness. Visual storytelling can be a powerful tool to engage the audience and spark dialogue when done correctly. Connect With Your Audience -------------------------- The main questions that run through an investor's mind before providing capital start with a “why.” While numbers matter in assessing performance, your audience will likely be indifferent to long drawn out displays of statistics as the sole reason to invest. Providing a solid reason for your startup is essential and is helped immensely with a strong narrative that connects with your audience. ### #1 What need is this going to meet? ### #2 Why is this specific product the best possible candidate? ### #3 What changes does this idea make? ### #4 What makes it special? Structure Your Pitch ----------------------- Any public oration, whether a pitch for fundraising or a speech, needs an appropriate structure to be adequately understandable to the audience. Your pitch should begin with an introduction to the business and the product or service, followed by a quick rundown of your performance in the market so far. Keep the first point in mind, and skim over the technical details unless they are necessary to gain a complete understanding of the business. A basic structure to follow can be introduction, content, conclusion, QnA round.  Practice Makes Perfect ---------------------- When you first get the opportunity to pitch potential investors for your startup’s fundraising, most of your effort will go into creating the perfect pitch deck. Keep in mind that the pitch you deliver represents not just your business but it's also a representative of your ability to explain your business to others. While giving the pitch, never refer to the slides or notes. Your eyes should be focused on the investors and their reactions. To ensure you don't forget any important details, practice your pitch until you’ve learned it by heart. What Problem Is The Product Solving? ------------------------------------ A product should only exist if it either solves an existing problem or serves to combat a future problem. Before looking at revenue or quarterly reports, your investors will focus more on the product’s usefulness. A product with no long-term use case has a short life cycle, which forces the company to diversify or suffer losses. If your product solves a problem, begin with talking about the problem and then introduce the product and its utility to the investors. Add Context To Your Pitch ------------------------- Context matters, especially when making a pitch for fundraising. This point ties in with the fourth point, “structure your pitch.” When talking about your startup’s revenue or future plans, it is very important first to lay the groundwork, talking about the industry, the issues in your competitors, and last but not least, how you intend to be an improvement over existing solutions. Providing context to your investors makes it much easier for them to understand your business. Inspiring Protagonists ---------------------- Every pitch deck needs a case study to explain the product and its target demographic. A case study needs a relatable protagonist who will allow potential investors to become emotionally immersed in your pitch. Investors are more likely to identify with a fleshed-out character with dreams and aspirations than with an anonymous business owner talking about statistics and finances. The character can be real or imagined, but the only thing that matters is that they are sympathetic and relatable. Hence it is good to create a well defined character before giving your fundraising pitch. Conclusion ---------- These eight tips are some of the most effective on the internet and have been tried and tested throughout countless pitch meetings. Hopefully, your next pitch will be much more effective with the help of these tips. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Wisdom Shared by Second Time Founders: Learn from Mistakes [Honest Confessions] Author: Ankit Parasher Published: 2022-05-10 Tags: second time founders, startup founders, startup mistakes, startup learnings URL: https://salt.pe/blog/null ![Wisdom Shared by Second Time Founders: Learn from Mistakes [Honest Confessions]](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/4-2-1652186305158-compressed.jpg) While each idea, startup, and founder are unique in their own way, there are some insightful lessons that each of us can learn from these second-time founders and entrepreneurs. Success isn’t ultimate, and neither are failures.  Let’s read what are the typical mistakes to avoid as a founder of a startup looking to achieve success in their venture:  ### #1 Know when to quit an idea or direction While every idea is in some way novel and innovative, not all ideas are worthwhile. Founders need to be agile and flexible enough to realize the difference between actual market demand and a supposed opportunity. Yes, grabbing a market opportunity previously unapparent is a mark of success, but be quick to realize if the idea is failing.  Founders should not base their decisions on mere instincts and plan their moves. They should evaluate the product fit and be certain if the demand is certain or already exists. Stewart Butterfield first failed to create a multiplayer game, realized his defeat, and moved on to using the messaging portion of the game product, which we all now know as the highly popular app Slack.   [Mizael Pena](https://www.linkedin.com/in/mizael-pena-035b3b64), the founder of Hardy Sprouts, says,  > “ (quit an idea) If it carries on too long without clear direction, it takes too many resources, time, and or energy, and no clear sight of when you may accomplish it.” ### #2  Build business, not ego boosters First, founders need to demarcate clear boundaries between themselves and their business. Shunning egos and learning to accept failures is the first step toward success. However cliche that may sound, the quote still holds great relevance. Falling in love with your product or not accepting that you don’t know everything can make your business obsolete and redundant. Be open to change, to pivot. >  “As a CEO, I am finding that I have to become a learning CEO. I have to go to school all the time because I am learning new skills that I need to run this company, and I am realizing that I am not equipped to just coast. I have to constantly renew my skills.” says Indra Nooyi, former CEO of Pepsi.  Arrogance is a big killer of the startup dream. Being confident is a good thing, but thinking of yourself to be the ultimate Steve Jobs is sheer vanity.  Better Place’s CEO, Shai Agassi, had lofty dreams of getting the world rid of its dependency on oil. These goals were nothing but a pretense of grandeur. The business failed miserably.  ‘  ### #3 You don't need to code to validate an idea > “What you need are users! You can get users with a simple excel file or a spreadsheet.” > > ~Ariano Farano, Watchup For a founder to validate their idea, they don’t need to code or know any software skills. You could validate or test your idea with a simple sketch or excel file or, if you want to go that extra mile, with loads of research and expert advice - whether free or paid - to foolproof your plan before you set up your business.  Noam Wasserman, the writer of the book ‘The Founder's Dilemmas: >  Anticipating and Avoiding the Pitfalls That Can Sink a Startup’ sums up very succinctly “ideas are cheap; execution is dear.” As a founder, you could write blog posts, conduct surveys and user interviews, or promote your idea by other means to gauge the interest of the target market you are aiming for.  ### #4 Over-communicate with your investors Whether you are seeking funds from a VC, an angel investor, or going the FDI route, talk about your concerns and understand theirs. Be open from the start. Especially with foreign investors, special care needs to be taken, given the different formalities and guidelines you both need to adhere to.  Earl Valencia of Plentica says,  > “The biggest lesson is to make sure you over-communicate with people and investors. It’s important to show them when times are tough as much as when times are good.” This idea extends to your relations with your audience - whether on social media or face-to-face - build your brand in public and let your audience know your work from day one. This step is essential to building relationships with prospective customers, investors, partners, and employees.  Table by [Salt](http://salt.pe) helps startups manage the banking and legal processes involved in fundraising for startups raising foreign capital. The startups get all the required assistance with RBI and MCA filings, opening a capital bank account, and transferring funds. ### #5 Focus on being social and not being on social media Myles Delfin is the founder of one of the biggest biker communities in the Philippines. He finds excessive social media engagement as distracting and equivalent to parlor tricks, “ for me it’s (parlor tricks) anything that takes the founder’s attention away from the fundamentals of his business: business development, branding, sales, client servicing.”    Though it is necessary to engage early with potential customers, founders recommend spending less time on excessive handling of social media channels unless most of the customers are there on these channels. The founders’ focus should be on creating a solid MVP using the actionable insights from users and customers rather than spending hours on social media engagement.  ![Neil Patel on common mistakes made by start up founders](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-13-1652186461057-compressed.jpg) #6  Outsource services when needed, but don't be ignorant While founders may consider themselves a jack-od-all-trades, there are still 24 hours in a day, and one cannot sit and do everything by themselves. Founders need to play on their core competencies and outsource the other tasks to save crucial time and opportunities so essential for a startup still trying to find its grounds.  If the startup is looking to scale its operations, it is best to look for financial and strategic partnerships, seek investments, and develop a robust distribution strategy. Avoid scaling the business by yourself at all costs, as it could turn out to be a huge blunder.  Angelo De Guzman, the founder of Cloudswyft, shares a wonderful piece of wisdom,  > “Work on the Partnership and distribution strategy (usually for scaling enterprise software) that would strongly fit your model. Don’t be afraid to explore and test as many models as you can and learn from your mistakes that. Get better every day, every week, every month, every quarter, and every year.” As a growing startup, the legal, finance, management, and recruitment tasks must be handled under expert guidance to avoid small hiccups or major downfalls.  ### #7 Busy work doesn't mean productive work >  “We think, mistakenly, that success is the result of the amount of time we put in at work, instead of the quality of time we put in.”  > > ~ Arianna Huffington Excess of labor doesn’t always consequence in the absolute success of your product. It can always be a cause of fatigue and health issues for the founders but never a guarantee of finding the right product fit, capturing the attention of the right audience, converting the interest into actual sales, and reaching the break-even point sooner than later.  Consistent and informed efforts in the right direction, with the right team, and for the right product could be possible vectors that synergize a startup’s efforts into actual revenues and long-lasting customer relationships. And the most important bit - you need to be passionate about the product or company you are building.  Mark Cuban rightly says,  > “Don’t start a business unless it’s an obsession and something you love. If you have an exit strategy, it’s not an obsession.”  Do you have any other pearls of wisdom to share for entrepreneurs and founders who are too busy to look for success and are passionately working to turn their ideas into viable products with market demand? Let us know in the comments.  Looking forward to managing your global finances?  Salt's neo banking solutions have you covered. Head over to [Salt](https://www.salt.pe) for a seamless global banking experience! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Essentials to Keep in Mind While Creating Deck for Foreign Investors Author: Ankit Parasher Published: 2022-04-18 Tags: Pitch deck, pitch deck investment, Startup pitch deck, pitch deck fundraise URL: https://salt.pe/blog/null ![A well-designed and comprehensive pitch deck can help a business get the resources to get funds by convincing investors of your growth potential. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/essentials-to-keep-in-mind-while-creating-deck-for-foreign-investors1-1650275121065-compressed.jpg) Statistics show that [9 out of 10 startups](https://www.investopedia.com/articles/personal-finance/040915/how-many-startups-fail-and-why.asp) fail at the funding stage because their business plan fails to impress investors despite being well-thought-out and profitable. Even if a startup or a business is bootstrapped, has a successful business idea, or has a promising track record, it needs capital to drive its vision further.  While the foreign investment route has opened and expanded to cover several sectors, the founders need to try to convince the foreign investors that investment in their venture would bring long-term returns to the investor. But what can businesses do to attract funds from the right investor? Curtains raise. Enter the pitch deck.  Call it a presentation or a proposal document, a pitch deck is used by businesses to present their business plan to prospective venture capitalists. A well-designed and comprehensive pitch deck can help a business get the resources to scale by convincing investors that your business has massive growth potential. A pitch deck may contain the following information about a business/startup: * Business’s product or service  * Size of the market * Target Market * Demographics * Team * Competition * Marketing strategy * Business model * Funding amount * Timelines * Exits for investors ### But how can we create a successful pitch deck to attract foreign investors?  While the fundamentals underlying a successful pitch deck remain the same, we need to be careful about a few essentials in our pitch deck meant for the prospective foreign client.  Interesting Facts: Before we seek the answer about what we should keep in mind while creating the pitch deck for foreign investors, let’s tell you about how Sequoia Capital, a well-known venture capital firm, raised capital of almost [$1 billion](https://techcrunch.com/2019/12/03/setting-politics-aside-sequoia-raises-3-4-billion-for-us-and-china-investments) for later-stage US investments.  Mike Vernal from Sequoia Capital says, “If you can’t tell the story of the company in five minutes, then you’re either overthinking it, or you haven’t simplified it down enough.” Sequoia Capital created a clean and clear pitch deck for its prospective investors. The deck focused on their innovative ideas and clarity of thought.  Similarly, Airbnb’s pitch deck presented its core strengths and opportunities straightforwardly. They raised [$20,000 in three months](https://vator.tv/news/2016-02-26-when-airbnb-was-young-the-early-years) and $600,000 in 8 months.    ![A well-designed and comprehensive pitch deck can help a business get the resources to get funds by convincing investors of your growth potential. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/essentials-to-keep-in-mind-while-creating-deck-for-foreign-investors2-1650275243003-compressed.jpg) Essentials to Keep in Mind While Creating a Pitch Deck for Foreign Investors ---------------------------------------------------------------------------- Here are five essentials to keep in mind while designing and creating a compelling pitch deck for foreign investors:  #1 Tell a Relevant Story ------------------------ When meeting potential foreign investors, founders must put together their pitch in a global context while keeping the local essence intact. The best way is to tell a relevant story succinctly and effectively.  Start by introducing the team and your investment strategy and help the investor understand your company's background, what it does, its origin, etc. Distill your entire set of company objectives into a single sentence without any business jargon and having a clear focus. For instance, ‘we develop education-focused applications.’ While your narrative should be compelling enough to rope in the investor in your story or idea, you mustn’t forget to make the investors see themselves as an essential part of the narrative. Share the personal history of the co-founders and how they came together. Create curiosity, build anticipation.  Trust and credibility work wonderfully in establishing relationships. Differentiate yourself from your competitors. What are your USPs? Does your work count as exceptional? How do you define success, and how will you bring about this success? And more such questions which should be dealt with in a straightforward way.      #2 Talk Numbers, Talk of the Turning Points  Move forward organically to discuss the numbers, facts and figures about what your firm does, How it does, and how well it does. Move the discussion into details and discuss why you are confident that your firm will perform well. Make sure to add the vital [startup/business metrics](https://blog.salt.pe/founders-guide-to-vital-startup-metrics-make-better-decisions-ckyidc0qt510281ko5dxjwkx51) that investors may be interested in. You must provide the right amount of information without overwhelming the investor. When a business is seeking funds from a foreign investor, firms should communicate the info in the language, dialect, and context the investor understands. For instance, founders should denote the figures in the numbers and metrics the investor is familiar with.  Making your pitch deck more visual than theoretical can be another way to engage the investors’ interest. The use of infographics, colors, icons, logos, and animations can amp up your chances of grabbing the deal.   #3 Know Your Investor --------------------- The investor's cultural, economic, social and political background should be considered while designing your pitch deck. Do your background research about the investors, the kind of projects they have funded, their expertise, the business environment, [FDI regulations](https://blog.salt.pe/fdi-regulations-every-startup-should-know-about-read-here-ckzxsvuh222771kmu6xwfflyc) and markets where they are active, and other relevant information to familiarize yourself with the potential investor.  Doing your homework beforehand will not only save you from a lot of embarrassment but also arm you with the right insights on what clicks with them and how to deal with the questions asked during the presentation.  If you are a startup from an emerging market or feel the investor needs to be acclimatized to the markets where you operate, consider educating the investor about the specific challenges and opportunities. While doing so, use credible third-party sources to put forth your views. If needed, consider preparing different pitch decks to cater to the requirements of each investor.   #4 Present Realistic, Relatable Goals  -------------------------------------- While using simple, focused, and concise language while presenting your pitch deck can help you win the trust of the foreign investor, pitching realistic goals and timelines is also a must. Trust building starts with transparency. Therefore, show actual revenue and sales figures and then discuss the plan for how you want to sustain or grow the sales or revenue with the funding. Businesses work on deadlines. The founders should concentrate on realistically deciding on the timelines and communicating the same to the investors.  Besides the above, founders can follow several key pointers to present a successful pitch deck. Some of these include - Keeping your pitch deck short and crisp, dressing smart, being punctual, and making your presence felt before the investors. If you cannot answer any questions, be honest and say you will get back with the required info. The founders are on the same page before you present the deck and practice the pitch a few times to avoid any hiccups.  Did you find the above tips useful? If yes, all the best for your success. Even if you don’t attain success, be persistent and persevere, and not get discouraged by rejection.  Do you have some other tips that could make a pitch deck viable? Tell us in the comments below and connect with us if you seek to sort your personal or business finances. At [Salt](http://salt.pe), we deal with global business banking and help manage foreign transactions in multiple currencies from multiple accounts smoothly and seamlessly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Pros and Cons of Selling on Online Marketplaces like Amazon Author: Ankit Parasher Published: 2022-04-14 Tags: selling on amazon, Amazon, online marketplace, amazon marketplace URL: https://salt.pe/blog/null ![The Pros and Cons of Selling on Online- Online marketplaces like Amazon offer several advantages over traditional physical structures. However, they suffer from their unique set of disadvantages. Let’s discuss. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/online-market-1649929596815-compressed.jpg) In a world going digital, online marketplaces are fast becoming the norm, especially among millennials and Gen Z, who likes to buy on the go. Global online shopping giant Amazon reported [200 million unique monthly users](https://ir.aboutamazon.com/news-release/news-release-details/2020/Amazoncom-Announces-Fourth-Quarter-Sales-up-21-to-874-Billion/default.aspx) making purchases via its portal, while the website’s revenue was over $280 billion. Earlier, online shopping was a great deal about convenience and the personal preference of the customer. During the pandemic phase, shopping via online marketplaces became more of a necessity owing to lockdown restrictions and the need for contactless deliveries. Post-pandemic, the trend has caused a massive shift in customer preferences towards online shopping.  The pandemic also forced businesses to go online to find a new and wider customer base. Consequently, thousands of retailers are finding it essential to make their products available on big online marketplaces, including Myntra, eBay, Amazon, etc. These online e-commerce portals offer several advantages over the traditional physical structures. However, they suffer from their unique set of disadvantages. Let’s discuss both aspects in detail.   Pros of Selling on Online Marketplaces  --------------------------------------- * Online Marketplaces are highly-preferred sales channels for online merchants as they attract millions of unique customers every month. 2019 saw Amazon sales skyrocket to [4000 items (of SMBs) per minute](https://www.datafeedwatch.com/blog/pros-cons-selling-on-amazon). The pandemic did its bit to expand the online user base further and reach of these e-commerce portals as the world went into lockdown and online shopping sites were the only option. Small-scale businesses starting new don’t have the necessary infrastructure and market knowledge to establish a platform with a large customer base. Selling on online marketplaces provides a much wider customer base with inherently built trust and credibility. * E-commerce giants like Amazon and Flipkart have a sound technical and legal infrastructure that helps sellers get onboard with ease. The websites are adept at handling huge customer traffic at any point in time. A seller is able to save critical time and funds, which can be deployed to improve products and services. These marketplaces provide sellers with the right exposure and the opportunity to scale. * Online marketplaces provide ready trust and credibility to the small and medium scale sellers by helping them manage their customer service, and exchange/returns policy efficiently. Also, a customer would usually find buying from known e-commerce sites like Amazon much safer than revealing their card details on a product website they had never heard of.  * These marketplaces give international exposure to the sellers as they cater to a global audience. Amazon has over 13 country-specific websites, but it delivers and ships products to over 100 countries globally. Sellers, too, can test if their products appeal to a global audience by simply listing on the platform.  * Shipping and delivery constitute a significant aspect of online selling. E-commerce websites take complete care of the logistics, payment systems, and operations. Sellers can enjoy a hassle-free experience as the sites have them covered for order fullfillment and customer support.   ![The Pros and Cons of Selling on Online Marketplaces like Amazon](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/online-makeket1-1649929630009-compressed.jpg) Cons of Selling on Online Marketplaces -------------------------------------- Online marketplaces have their own set of shortcomings beyond the rosy picture. Besides the commission that eats into the profit margin, there are quite a few cons that sellers face while selling on online marketplaces: * The online marketplaces house numerous sellers selling similar products. The competition being fierce, sellers need to raise their game by making their products stand out from the crowd. Malicious sellers often eat into brands’ customer base by using their seller info to dupe customers with fake products. In such cases, the bad customer reviews appear below the genuine product, negatively affecting its sales.   * The high level of competition requires sellers to promote their products via additional social media marketing. These additional costs directly impact the profits, which are already trimmed down after the commission cut.  * Even though selling via an online marketplace saves costs and time, it doesn’t lead to brand-building or long-term customer relationships. The customers scroll through these marketplaces, focusing on the product rather than the brand. If a seller wants to build their brand, using only Amazon or other e-commerce channels isn’t the right approach. *  Whenever a customer makes a payment on an online shopping marketplace, the payment is first received by the marketplace and not the seller. Not before the deductions for service fees and other commissions have been made that the seller gets the amount credited in their seller account. The payment cycle is spread over 7 to 14 days for popular websites like Amazon. This poses management hurdles for new sellers that face a cash crunch for lack of a regular flow of money.   ### [At Salt,](https://salt.pe/) we understand the specific needs of online seller businesses and cater to their financial needs via its efficient neo banking options. Some of these features include: * Multiple-account system, with multiple-currency support, where businesses are provided with a unique tech and user experience brought together for time and cost savings.  * Online sellers can manage their expenses, collections, and payouts in real-time from anywhere worldwide.  * Sellers also have access to deep-dive reports on their financial expenses and regular flags on faulty and suspicious transactions.  * Sellers can access finance via a coterie of products such as e-cash, e-wallet, virtual cards, real cards, etc., for a seamless and accessible experience.    Don’t let finance become a hurdle in your business’s success journey. Head over to Salt to manage and grow your business globally via our truly borderless banking services, offering a one-stop portal to manage all your financial needs.          Online Marketplaces are highly-preferred sales channels for online merchants as they attract millions of unique customers every month. 2019 saw Amazon sales skyrocket to [4000 items (of SMBs) per minute](https://www.datafeedwatch.com/blog/pros-cons-selling-on-amazon). The pandemic did its bit to expand the online user base further and reach of these e-commerce portals as the world went into lockdown and online shopping sites were the only option. Small-scale businesses starting new don’t have the necessary infrastructure and market knowledge to establish a platform with a large customer base. Selling on online marketplaces provides a much wider customer base with inherently built trust and credibility. E-commerce giants like Amazon and Flipkart have a sound technical and legal infrastructure that helps sellers get onboard with ease. The websites are adept at handling huge customer traffic at any point in time. A seller is able to save critical time and funds, which can be deployed to improve products and services. These marketplaces provide sellers with the right exposure and the opportunity to scale. Online marketplaces provide ready trust and credibility to the small and medium scale sellers by helping them manage their customer service, and exchange/returns policy efficiently. Also, a customer would usually find buying from known e-commerce sites like Amazon much safer than revealing their card details on a product website they had never heard of.  These marketplaces give international exposure to the sellers as they cater to a global audience. Amazon has over 13 country-specific websites, but it delivers and ships products to over 100 countries globally. Sellers, too, can test if their products appeal to a global audience by simply listing on the platform.  Shipping and delivery constitute a significant aspect of online selling. E-commerce websites take complete care of the logistics, payment systems, and operations. Sellers can enjoy a hassle-free experience as the sites have them covered for order fulfillment and customer support. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pitfalls And Promises of Growing Your Business Internationally Author: Ankit Parasher Published: 2022-04-13 Tags: Bangalore, expand business internationally, international business expansion, grow your business URL: https://salt.pe/blog/null ![This article is about the pros and cons of growing your business internationally. What are some good practices and uncertainties businesses may face when expanding globally? ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/best-places-to-sell-your-services-online-and-grow-your-business1-1649832441573-compressed.jpg) Entering international markets sounds exciting. As exciting as it sounds, it is a big task for the business. The various functions to be taken care of include finance, production, marketing etc. ### Let's have a look at the challenges faced by the business. The new customer and market. ---------------------------- It's globally open to the world of consumers—a variety of choices ready to consume the product or service of your business. The business experiences a new work environment and market structure. It has to change its practices slightly when expanding globally to customers. Understanding its customers is important. Growth also means being stable. When the business is consistent, there is growth—analysis of how the international logistics and supply chain work help in laying a strong foundation. The foreign policy and code of conduct are important aspects of the international expansion of the business. Foreign investments. -------------------- Foreign investments are a very big boon to international businesses. When a domestic company invests in a foreign company, it is called foreign investment, provided it has a stake in it. It also helps in providing employment and nurturing the economy of the country. There are types of investments such as direct investment and indirect investment. Foreign investments generate income and help both countries to achieve their business objectives. Foreign investments also help develop new progressive ideas to improve the product or service quality.  International payments and currency management. ----------------------------------------------- International payment means paying and receiving between two parties from different countries. As the business grows internationally, the challenge of foreign currencies is a tough task to do. Salt is a solution if your business expands globally and is new to international currencies. It's a hassle-free and convenient financial organization dealing with international currencies and management. It helps you manage multiple accounts, is transparent about its working structure and deals in various currencies. It's digital, reliable and easy to use. Today, digitalization is as important as globalization. And choosing the right financial help will lessen the burden of the business. Salt provides you with great transparency of their work regarding digital banking. Sometimes, managing currencies from more than two countries become difficult. Salt will help you manage currencies from more than six countries. However, with time there will be new features and new experiences. By sitting in one corner of the world, you can manage your business. Salt is the new era of banking and currency management. It has been consistent in delivering the services to its customers. It's available on the Google app store. ![This article is about the pros and cons of growing your business internationally. What are some good practices and uncertainties businesses may face when expanding globally? ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/best-places-to-sell-your-services-online-and-grow-your-business2-1649832496651-compressed.jpg)  Foreign rules and regulations. When a company decides to go global and open its markets, not only the benefits but difficulties arrive. As every country has its policies for business and markets, it becomes mandatory for the company to abide by all the rules, regulations and policies. Especially in financial transactions, there are strict and stern rules to be followed if one wants to carry out business in a foreign country. The tax policy varies from one country to another. The currency rates are different. The rules for production and services are different. There will be testing of products and services to ensure quality. All of it is legally documented, such as the name, location, license and all other legal requirements. And is done to ensure that the business is fair and helps consumers worldwide. Language. ------------ One of the main challenges internationally growing businesses face is language barriers. Communication is the key, but success is locked when there is no communication. Most growing businesses appoint multilingual employees to bridge the communication gap to avoid this. A company should learn about the language and culture of the country to where they wish to expand. That also helps in employing the right people for the business. Learning a new language is also beneficial if one wants to expand in not only two but more than two countries.       Huge competition. ----------------- When the market expands, so does competition. Business organizations with homogenous products and services may become a huge problem. So, when you think of globalizing, there's no other option than being the best in what you do. Studying the strategies of the competitor will help improve the business. Avoiding copying is one of the best practices. Persuading consumers with great deals and quality products and services will be the best strategy a business can follow. However, when a domestic business decides to go international, many things are taken care of, from finance to sales. Planning to execute everything is done to avoid any uncertain events. But no matter how well prepared one is, there will be some drawbacks. But, these help in problem-solving and decision-making. And build the business for good. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## From Pre-Seed to IPO: Stages of a Startup funding Author: Udita Pal Published: 2022-04-12 Tags: pre seed funding, seed funding, pre seed to ipo, start up funding stages, funding stages, funding rounds, startup funding round, explain funding rounds URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/from-pre-seed-to-ipo-stages-of-a-start-up-funding2-1649757449443-compressed.jpg) Far more than just a fantastic idea, A startup necessitates a significant amount of time, discipline, devotion, and, most importantly, funding. According to a 2016 British Business Bank survey, more than [60% of startups require external financial rounds](https://www.cloudways.com/blog/startup-funding-stages/) to establish a firm foothold in the market.  Regardless of its disposition or size, every startup requires funds to turn its innovative ideas into reality. The majority of companies and startups fail due to an inability to raise sufficient money at the right time. A startup undergoing rapid expansion goes through the following funding stages: 1\. Pre-seed Funding -------------------- Startup Valuation: $10k-$100K Fundraising: $50K This initial seed funding stage occurs so early in the process that it is not even considered a part of the startup funding stage. The pre-seed financing stage generally depicts the time when a startup is getting its operations up and running.  During the pre-series funding stage for startups, it is highly improbable that investors will invest in exchange for equity in the startup. Startup founders invest from their own pockets to grow their businesses in the most creative way possible. This is what we call bootstrapping.  The duration of this stage is determined by the characteristics of your startup and the initial costs that must be considered while developing the business model. Entrepreneurs should seek guidance from founders who have gone through the same experience and work on building their product or service effectively. Besides, this stage can also be utilized to build partnerships, work out copyrights or other legal issues to prepare yourself early on.  2\. Seed Funding Stage ---------------------- Startup Valuation: $3M-$6M Fundraising: $3M [Around 29% of startups fail](https://www.cloudways.com/blog/startup-funding-stages/) because they run out of capital while bootstrapping. Once they have a solid idea, these businesses need to find external funding to scale. During this phase, the owners try to raise funds to conduct market research and learn more about the tastes and preferences of their target customers. Also, this is the startup funding stage at which the product is truly launched and is developed to release in the market.  3\. Series A Funding -------------------- Startup Valuation: $10M-$30M Fundraising: $15M The Series A stage is the initial round of venture capital funding. The startup ought to have a working model and a client base with a consistent revenue flow by this point. It is now time for them to look for series A funding and improve their core competencies. This is a fantastic opportunity for startups to expand into new markets. The major part of Series A funding is provided by investment companies and conventional venture capital firms. They are not looking for great ideas but rather for startup companies with a strong business strategy plan that can turn their great idea into a successful, money-making organization that will allow the venture capitalists to profit from their investment. 4\. Series B Funding -------------------- Startup Valuation: $30M-$60M Fundraising: $30M Startups that have already gone through the prior startup funding stages (seed funding and Series A) have built a sizable user base and a consistent revenue stream. They have illustrated to their investors that they can achieve success on a greater scale. Investors help startups broaden their horizons by funding market reach activities, increasing market share, and forming operational teams in marketing, business development, and customer success. The series B funding stage enables startups to grow to meet the various demands of their customers while also competing in competitive markets. The Series B startup funding stage may appear identical to the earlier funding stage methodologies and key players. However, the same characters frequently lead Series B funding, including a key anchor investor who helps you attract other investors. The main difference is the inclusion of a new wave of venture capitalists specializing in investing in well-established startups to help them exceed expectations even further. 5\. Series C Funding -------------------- Startup Valuation: $100M-$120M Fundraising: $50M Companies are typically expected to create new products, enter new markets, and even ensure that competitors do not meet the expectations of comparable new business deals during this stage. They might even buy out other startups. Startups seeking Series C funding are well-established, have a strong customer base, have stable income streams and a track record of growth, and want to expand their operations on a global scale. Investment banks, hedge funds, and private equity firms appear during this stage as the business becomes more stable. Series D, E, F, and so on could be added to the funding. A startup is growing and looking to scale significantly with a commercially available product at this stage. Even if the venture is not yet profitable, income should regularly come in. The funds raised at this point will be used to [plan big for your startup](https://blog.salt.pe/how-to-plan-big-for-your-small-business-cky5e8885708281ks2mh7ecpgq), mergers and acquisitions, or prepare for an IPO.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/from-pre-seed-to-ipo-stages-of-a-start-up-funding1-1649757542643-compressed.jpg) 6\. IPO ------- Startup Valuation: $100M Fundraising: $50M-$500M If a company decides to sell corporate shares to the general public for the first time, an IPO, or Initial Public Offering, occurs. When a startup decides to go public, it must put together an external public offering team that includes underwriters, legal professionals, certified public accountants, and SEC experts to compile all necessary administrative and financial documents. If the founders decide to go public, they are not required to disclose their financial statements. However, the company must submit information to the SEBI regarding financial statements, the purpose of raising funds, etc. An IPO aims to help you grow and diversify in areas of interest. Some advantages of an IPO include increased funding for growth, better talent retention, and a smoother path for future M&As. ### Conclusion Entrepreneurs can scale their startups at any phase of their entrepreneurial journey, thanks to the various startup funding stages. This scaling practice enables them to ascertain where their startup continues to stand and which potential investors would invest in them to help it grow. Entrepreneurs can thus [plan their business objectives](https://blog.salt.pe/set-up-business-goals-for-the-new-financial-year-and8211-business-101-ckuo6uoxy33201ns9lyvefw84) accordingly.  Remember that startups must be mature enough to qualify for specific funding round to receive funding. The net worth of your startup can tell you where it stands. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Setting Up Your Shopify Business Account: Key points to keep in mind Author: Ankit Parasher Published: 2022-04-08 Tags: Shopify , Shopify business URL: https://salt.pe/blog/null Shopify is a commerce platform that lets you establish, expand, and organise a business. The subscription-based program is accessible for anyone setting up an online store and selling their products. For most people, starting a business account can be very exhilarating and somewhat overwhelming at the same time.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/shopify1-1649413600516-compressed.jpg) So if you are on the onset to start a Shopify store but are unsure of how to go about it, this article is for you. Understanding your goals ------------------------ Before instituting your business, it is essential to be clear of your goals. Cover all your basic questions. You can even take the help of local experts to understand the laws and taxes of your business and decide on which sales channels you want to use, and if you want to sell in-person or online, think about the pricing plans you will need and the rest. This will help expedite your framework and ease the setup process. Setting up your store --------------------- ### Deciding your business name Selecting the name of your e-commerce store is essential but don't sweat it. Keep it simple and subtle, or you can benefit from [Shopify Business Name Generator](https://www.shopify.com/tools/business-name-generator?prev_msid=a8d7682b-423D-46B0-8DAA-C024475D7035) tool for selecting your store name by entering a few keywords you'd prefer in your business name. It'll pan out various recommendations for you to choose from, select your desired name and get the ball rolling for your e-commerce store. ### Creating a Shopify Account Visit [Shopify's website](https://www.shopify.com/) and select the 'Get Started' Button. Enter your credentials along with your unique store name. Take advantage of the free 14-day trial, so your business will be live before paying for it. ### Constructing your shop It's time to think about the way your store looks. If you already have an idea, that's excellent! Shopify provides hundreds of free and premium themes in its Themes store. Select a theme that suits your shop, and add some products to sell. Give time to add your products, organise them into groups, and set the necessary tax and shipping information. It is crucial to set out a good theme for your online store. Free themes are cool, but premium themes come with modifications that can be very appealing. You can make many adjustments to how your site looks and perform if you access the CSS and HTML facet of the theme. If you don't have a coding expert, you can always get help from the Shopify Expert page. Shopify experts can help you modify product descriptions, Shopify themes, email marketing, homepage carousel slides, related item functionality and much more. You can use the Shopify Experts community for almost anything. ### Payment getaways Highly advisable to use [Shopify Payments](https://www.shopify.com/payments?prev_msid=a8d7682b-423D-46B0-8DAA-C024475D7035) no matter what kind of business you are running or where you are based. You will be able to receive payments in various forms, like credit cards, Google Pay, Shopify Pay, and more, without any extra charges. You can access Shopify Payments by inputting Shopify with your business information, personal details, product information, and bank account number.  However, you can also use third-party payment processors. When selecting a payment gateway, know exactly what you are being charged per transaction and the various kinds of accepted payment modes, cards accepted, and more. Be sure to look at the transaction fee that some gateways are charging for you to use their services, the card types accepted by your chosen mode of payment method, and the offsite checkouts before selecting your payment getaway. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/shopify2-1649413632938-compressed.jpg) ### Setting a domain name This step is one of the most important bits of e-commerce. First of all, you want to choose a domain name and launch your store. If you already own a registered domain, you can migrate it to your Shopify store. In case you don't, you can buy directly through Shopify. You'll go to the main dashboard and click the Add Domain button to do this.  Once you've set up a domain, you're ready to launch your store and let people know that you're officially open for business. Subsequently, set up analytics. You can set up Google Analytics and Facebook Pixel for better analytics.  ### Running test runs and launching the store Before launching your store, make sure to do test runs to ensure everything runs smoothly. Test successful and failed transactions, refund and cancel orders, fulfilling and partially fulfilling orders, archiving successful orders. Also, learn about Shopify's [Fraud analysis indicators](https://help.shopify.com/en/manual/orders/fraud-analysis#fraud-analysis-indicators).  At this point, you have successfully set up your store and are ready to launch it. Just remove the password from the page, and you are ready to roll! Congratulations on learning to create your Shopify business account. You are now officially a Shopify merchant. The only thing left to do is make money. Do you already have a Shopify store and can’t seem to manage your finances? [Salt](https://www.salt.pe) can help you!  Salt manages your global business with the convenience of local accounts, and manages your collection and payout. Salt deals with all the things related to global business banking, so you don’t have to. [Sign up with Salt](https://app.salt.pe/auth) today to experience quality banking! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Here Are Some Business Lessons Your Company Can Take From Amazon Author: Udita Pal Published: 2022-03-23 Tags: Amazon, Business Lessons URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-12-1648035064766-compressed.jpg) E-commerce is a perpetually booming industry - one that has completely changed the notion of shopping in popular culture. While it experienced humble beginnings in the form of the sale of [used computers](https://dbpedia.org/page/Boston_Computer_Exchange) and books and such, it has now expanded to every possible market. From groceries to clothes to electronics, everything is just a click away. This changing landscape has made e-commerce one of the largest industries in the world. In 2021 alone, worldwide retail sales in e-commerce amounted to 4.9 trillion US dollars, and [reports](https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/) suggest that there’ll be a 50 percent growth in these numbers over the next four years.  If there’s one company synonymous with e-commerce, it’s none other than Amazon. In 2018, Amazon officially [became the second U.S.](https://www.cbsnews.com/news/amazon-worth-1-trillion-stock-price-surge-tuesday-2018-09-04/) public company worth a trillion dollars. The company's humongous rise is such that there are umpteen business lessons that could be fruitful takeaways for emerging companies looking to set up their ground.   In its entire lifecycle, Amazon reached several milestones and was in many ways the trendsetter in the e-commerce business. Before we begin discussing these business lessons from Amazon, let’s delve a little into the history of Amazon and its success story.    The Rise of Amazon ------------------ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-10-1648035089946-compressed.jpg) Jeff Bezos started Amazon in his garage in 1994, and within two decades it has become the largest e-commerce company in the world. Very few people know that the initial idea behind Amazon was [to sell books online.](https://www.historyofinformation.com/detail.php?id=1080) Jeff Bezos, the founder of Amazon, thought of building an online bookstore to reduce high costs such as storage, display, etc. He, therefore, set up a small online bookstore called ‘Cadabra’ which could see its first sale only after an entire year! After that, there was no turning back. Soon the business gathered pace and the company’s name was changed to Amazon. The company began generating massive revenues within a year and became a leading e-commerce company.  Any company that reaches the top adopts various marketing and financial strategies, and Amazon is no different. The key to understanding the staggering rise of Amazon is to understand the [expansion it undertook,](https://nextconf.eu/2021/11/amazon-the-pioneer-horizontal-vertical-integration/#gref) both vertical (selling more products) and horizontal (moving to different sectors).  In 2000, Amazon launched its marketplace where local vendors could sell their products. Amazon went from an online bookstore to an online market where you could buy everything. In that year alone the company's sales were recorded at a whopping $2.8 billion. But it didn’t stop here.  In 2005, Amazon launched its Prime membership, giving loyal customers many perks. Today's Prime subscription allows one to have access to free delivery services and music and video streaming services. The company even launched its product- Kindle, which allowed ebooks to become mainstream and accessible. Amazon expanded its operations to many other sectors such as music and video streaming, digital payment, grocery shopping. In 2012, it set up its operations in many countries.  Let's now look at some business lessons from Amazon that every business can learn.   4 Business Lessons to Learn From Amazon  ---------------------------------------- ### #1 Customer Experience Enhancement The entire idea of Amazon is built around customers. The company works tirelessly to improve its customer relations by constantly introducing new features such as Amazon pay, Amazon Mini TV, etc. The robust R&D and a keen penchant to work on customer feedback have helped Amazon improve its products to a great extent. Amazon's UI UX ranks at the top and is touted to be one of the best around the world.  It has easy, straightforward features which help people to have a great shopping experience. The ‘Recommended Items’ or ‘Frequently Bought Together’ section shows how Amazon’s algorithm takes care of customers. Even Amazon’s OTT platform reflects the company’s policy in maximizing customers' comfort.  2\. Expand According to Market’s Needs -------------------------------------- Amazon is a masterclass in expansion, given the way it has slowly entered countless sectors and experimented with different markets. If you want your company to grow bigger, you must look for gaps in the market and try to fill those gaps by bringing in products or services. When Amazon noticed how tiresome and exhausting shopping had become, it introduced its marketplace. And when Amazon saw the potential in OTT platforms, it took no time to launch its shows and films on Amazon Prime. The key in expansion is to focus on ideas that will give long-term returns rather than short-term success.  ### #3 Use Analytics in Decision-making Amazon has revolutionized how data analytics, machine learning, and big data can be used to enhance user experience via customization and improved website/app interface. A glorious example of this is Amazon pay, which is Amazon's own digital payment service. Amazon studied its consumer base and launched Amazon Pay to allow consumers to make direct payments while shopping within the app itself. It also allows users to make generic payments such as electricity bills, mobile recharge, etc., and keep track of the same.  Companies can also smartly study their consumer preferences and use data in an evolved way. Many [small businesses](https://blog.salt.pe/how-to-plan-big-for-your-small-business-cky5e8885708281ks2mh7ecpgq/) have already begun to adopt this strategy, especially other online payment companies like PhonePe, Paytm. The whole [Fintech industry](https://blog.salt.pe/5-reasons-why-this-decade-is-for-fintechs-in-payment-cky5h5zs1745161ks2yb5sflhi/) follows after Amazon in this area. They keep track of house bills, electricity bills, recharge, etc., and give exciting offers to their users.  #4 Adapt to the Technological Changes ------------------------------------- Had Amazon been firm in only selling books, it wouldn’t reach where it stands today. Or had the company refused to embrace e-books, their hugely successful product, Kindle, would never have come into existence. We live in an age where technology becomes obsolete with each passing year. It is important to adapt to the changing landscape and always be on the lookout for innovation. Many businesses fail because they simply refuse to change with the changing landscape. It takes no time for a company to fall out of the race and become defunct.  In this age where there's huge competition in the market, keeping a business profitable is an extremely challenging task, but that’s what makes it exciting. Times are changing fast, and you’d want to remain on the memorable side of history. So it's better to follow those who refuse to give up and are always willing to face new challenges. These business lessons from Amazon aren't a guarantee to success, but you’ll surely have a fair chance at it. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Does A Change In Interest Rates Affect Your Business? Author: Ankit Parasher Published: 2022-03-21 Tags: Interest rates, Change in interest rate, Interest Rate, Business URL: https://salt.pe/blog/null In today’s uncertain economy, interest rates swing up and down at the drop of a hat. Lack of credit makes the rates go down, and an abundance makes rates go up. But what are interest rates and how do they affect your business? ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-11-1647858386032-compressed.jpg) What is an Interest Rate? ------------------------- When talking about interest rates, people usually refer to the interest percentages that banks charge on loans. In most countries, it is the central bank that decides the rates at which interest can be charged. This affects rates on multiple types of loans, such as personal loans, business loans and more. These interest rates are a good indicator of the economic health of countries since they affect all businesses and individuals. If the economy is slowing down and people can’t afford to spend money, then the banks lower the interest rates to stimulate economic growth. This goes both ways since a stronger economy and a higher inclination to spend for consumers means that they can tolerate higher interest rates without being affected too harshly. Impact of Increased Interest Rates on Small Businesses ------------------------------------------------------ Businesses, especially small businesses or startups are especially vulnerable to changing interest rates. This is because a smaller business often has smaller cash reserves and depends on loans to get through each financial quarter. Startups sometimes take years to turn profitable, and until then, they are completely dependent on business loans and VCs to ensure their survival. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-9-1647858428235-compressed.jpg) Here are some of the ways in which an increased interest rate is harmful to smaller businesses: ### Business Planning When interest rates are fluctuating, determining the cost of future loans(or existing business loans in the case of a variable rate loan) is a tough challenge, and makes planning your company’s future finances very hard. ### Securing Funding When interest rates rise, they affect pre existing loans too. Almost every business has outstanding loans that they’d like to pay off as soon as possible; but with higher interest rates the existing loans take longer to pay off, which in turn limits your business’s ability to apply for short term loans. ### Cash Flow Smaller businesses have limited cash flows to operate with. High interest rates force these businesses to set aside more money to repay their loans and old debt, which reduces the profit margins of the business. ### Consumer Income Decrease The majority of consumers have less disposable income when interest rates go up, leaving them with a reduced ability to make purchases. Lesser purchases mean a decrease in sales, further leading to a decrease in profits. Banks also provide fewer loans when interest rates are high, affecting both consumers and businesses alike. ### Access to Credit High business loan rates make long term debt harder to escape and short term loans difficult to obtain from banks. Small businesses need a ton of invested capital until they turn sizeable profits, and obstructed access to loans makes it much harder to expand a business. Types Of Loans -------------- There are many different types of loans a small business can apply for, depending on the intended use. Here are a few of the most common types of loans a small business can get. ### Startup Loans Startup business loans are an option for entrepreneurs looking to kick start their latest enterprise with some early stage funding. Equity financing and crowdfunding are some popular alternative options to getting a startup loan from the bank. ### Equipment Financing If your business needs some specialized equipment, consider applying for equipment financing solutions. Your loan will be secured against the equipment you’re borrowing to buy, which helps reduce the loan interest rate. ### Commercial Real Estate Loans If you’re looking to buy a new office or invest in a warehouse or storage facility; a commercial real estate loan might be a great option for you. With these loans, you can either buy a brand new space or renovate your existing offices. ### Term Loan A term loan is a standard business loan with a repayment schedule that is either monthly or quarterly in nature. A fixed interest rate helps protect you against an increase in interest rates in the future. Another point in its favour is its stability. Since the repayment schedule and interest rate are both fixed, it is easy to calculate your finances and create a long term vision for your company. Conclusion ---------- As we’ve read above, there are various problems that arise with changes in existing interest rates, mostly for small businesses and consumers. Careful management of your finances is key to getting through rough patches like these financially unscathed. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Is a Country's Currency Valued? - Learn here Author: Ankit Parasher Published: 2022-03-16 Tags: currency valuation, exchange rate, exchange value URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-10-1647417118474-compressed.jpg) Whether we pull out paper bills or swipe a credit card, most of the transactions we engage in daily, rely on the concept of currency. Money is the lifeline of economies around the world. But currencies are actually only a small piece of the monetary economy and are just one consideration when looking at the total money supply. Most money today exists as credit money or as electronic records stored in databases in financial institutions. But still, the bread and butter of everyday transactions is currency, and that is what we will look more closely at here. What is Currency? ----------------- Currency first appeared hundreds of years ago as a means of replacing the barter system. Early currencies were "commodity money," which meant that their intrinsic value was derived from the precious metals they were made of. However, the impracticality of commodity money prompted a shift toward "representative money" – money with no intrinsic value but is backed by the ability to be exchanged for a physical commodity. What if the seller needs some different commodity than what you are giving him? Money solves this problem. It provides a universal store of value that other members of society can easily access. In general, transactions can move at a much faster pace because sellers have an easier time finding a buyer with whom they want to do business. The gold standard, in which each country's currency is tied to a fixed amount of gold, is the most notable application of representative money. How is the Value of Currency Calculated? ---------------------------------------- Money's value, like the value of goods and services, is determined by the demand for it. There are three methods for calculating the value of a currency in the United States: The **first** is how much the concerned currency is worth in other currencies. The exchange rate determines this. Forex traders on the foreign exchange market set exchange rates. They consider supply and demand, as well as their expectations for the future. The **second method** is the value of treasury notes. They are easily convertible into currencies on the secondary market for treasuries. The **third method** is to use foreign exchange reserves. This is the total amount of money held by foreign governments. The more they hold, the less supply there is. This increases the value of the currency. For example, the US dollar would collapse if foreign governments sold all of their dollar and treasury holdings. Money in the United States would be worth a lot less. There are still universal benchmarks that help determine the value of a currency around the rest of the world. Some of them are: ### Interest Rates:  High-interest rates contribute to the development of a strong currency in any economy. This is primarily due to the fact that when foreign investors do business with a country, they receive a higher return on investment. ### Economic Policies: Certain economic policies can help a currency become stronger, but this varies depending on the currency and the country to which it belongs. ### Stability:  The more stable an economy is, the stronger it is. When an economy is stable, it invites foreign investors to invest.  This increases the value of a currency. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-8-1647417170324-compressed.jpg) ### How are Exchange Rates Determined? While currency technically refers to physical money, financial markets refer to currencies as national economies' units of account and the exchange rates that exist between currencies. Because of the global nature of trade, parties frequently require the acquisition of foreign currencies. When it comes to managing this process, governments have two basic policy options. The first option is to provide a fixed exchange rate. In this case, the government pegs its own currency to a major world currency, such as the US dollar or the euro, and establishes a fixed exchange rate between the two denominations. To maintain the country's exchange rate, the central bank either buys or sells the currency to which it is pegged. * A fixed exchange rate's primary goal is to create a sense of stability, especially when a country's financial markets are less sophisticated than those in other parts of the world. Investors gain confidence by knowing how much of the pegged currency they can buy if they want to. * A floating exchange rate involves allowing the foreign exchange market to determine the value of a currency in relation to the supply and demand for other currencies. Countries with floating exchange rates may experience higher exchange rate volatility, but they also benefit from greater autonomy over their economic policies and trade activities, as well as greater liquidity. The government still intervenes on a regular basis to keep the exchange rate within a reasonable fluctuation range. Any export/import business, while receiving cross border payments in another currency, has to get it first converted into the domestic currency as per the prevailing exchange rate. If you are a global business with international clients and want to save yourself from the hassles of multi-currency transactions, [Salt](https://salt.pe/) has you covered. Salt provides the cross border banking services at the lowest rates across 50 countries 24/7.  Currency was once limited to physical coins and bills, but today's [digital banking](https://blog.salt.pe/digital-banking-is-not-digitized-banking-breaking-the-myths-ckuo6uoz433751ns9usa7pyi4/) system means that money now exists as data stored in bank ledgers and is even transcending the possibility of tangibility with the development of electronic money like [cryptocurrencies](https://blog.salt.pe/a-noobs-guide-to-the-cryptocurrency-market-in-india-ckuo6uoxw33181ns9wzv4qf8t/).  Many experts believe that the use of electronic money or [digital currency](https://blog.salt.pe/central-bank-digital-currency-the-future-of-payments-ckzp3t4yy47841mpnbyjy1s8h/) is the way of the future. Whatever form it takes, all currency has the same basic goals. It promotes economic activity by expanding the market for various goods. Furthermore, it enables consumers to accumulate wealth and thus addresses long-term needs. We can be certain that the value of the currency, how it is determined, and how we live with it will always change. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Is This a Good Time to be a SaaS Startup? Author: Ankit Parasher Published: 2022-03-11 Tags: startup, SaaS, Saas startup, software as a service URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-9-1646994088786-compressed.jpg) For the past few years now, technology transformation hasn’t been just a buzzword. As per a Gartner forecast, end-user spending on public cloud services is expected to [reach $482 billion in 2022](https://www.bmc.com/blogs/saas-growth-trends/). All kinds of businesses - whether large scale or small scale- have started adopting digital innovation to increase their productivity. SaaS (Software as a service) solutions are among those IT segments that have witnessed massive spurts in growth. SaaS models work on a subscription basis and are centrally situated on a remote cloud network. These solutions have become the go-to options for organizations for several reasons, including flexibility and affordability.  > “Organizations are advancing their timelines on digital business initiatives and moving rapidly to the cloud in an effort to modernize environments, improve system reliability, support hybrid work models and address other new realities compelled by the pandemic.” > > ~Brandon Medford Despite the economic slump due to the ill effects of the pandemic on businesses and economies alike, the cloud computing sector continued witnessing a boom period. In the coming years too, the economic, societal, and organizational impact of the pandemic will continue to drive digital innovation with SaaS as the underlying force. SaaS solutions will empower the hybrid workforce via fostering collaboration, remote work, and digital services.   Businesses are adopting and adapting to their processes using SaaS solutions for several uses:  ### #1 The focus on environmental sustainability  ### #2 Remote work ### #3 Online education  ### #4 Artificial Intelligence (AI) and Virtual Reality (VR) integration  ### #5 Increase in online payments, etc. The great thing about SaaS is one need not be a developer or an IT expert to use it. This feature is a game-changer compared to the traditional software model used before the emergence of cloud computing, where users would have to manage, install and upgrade the software themselves on local servers or computers. But, with SaaS, you can simply provision a server in the cloud, and in a couple of hours, you will have your software or application ready for use. Some key examples of SaaS solutions would be:  ### #1 The email client you use, such as Gmail, the applications  ### #2 The tools you have on your computers such as Microsoft Office 365 or Adobe Creative Cloud, or  ### #3 Even when you jam using your favorite music streaming service, you use SaaS.   SaaS provides productivity apps over the internet and is utilized in many business operations today. Unlike our other cloud computing service models, SaaS is at the top of the IT stack and has the highest level of abstraction. This means the cloud service provider will provide and maintain all these layers for you in the stack.  SaaS vs. Other Software ----------------------- Out of the three big cloud computing models, i.e., SaaS, PaaS (Platform as a Service), and IaaS (Infrastructure as a Service), [Startups and SMBs outsource a lot of their processes](https://blog.salt.pe/when-your-business-should-start-outsourcing-signs-to-look-for-ckuo6uoxb32891ns9xfn4vfin) to save infrastructural costs, SaaS among them is the most popular and commonly used outsourced service. Whether as a business or a consumer, you are liable to come across SaaS daily.   ![](https://lh5.googleusercontent.com/pEBfiIIfBO5OVG7BZSUryVgxIpyI6yAv5oJ6JM-9HtwACI46CD9J_msc_gTtQZDYJrHIOihWirlncC9r9og-WnXRDMaX1TamoUIyA1QdC-t3K-7otPW_0XLAH5WTi4-6JY0xQ4vC) Back in 2015, the public markets had started to get comfortable with SaaS. If you look at any past data, you will notice that most of the IT budget went into SaaS, up to 30-40%, which no one had anticipated. These notable trends have created many SaaS companies, doing a billion in annual recurring revenue (ARR). ![](https://lh6.googleusercontent.com/zE4TDVK89x0LzEHWE05Gf2mg1l4ojj9ygz74hfQ7IQ36LQEv5Iq7TaFRu4qy3xBB3_mlH0028tbLl1K7hY1e_pNcCmGui1Gl-3FViI53KNk-1TejAGh-XEdGhhzgLDrK2BcYN9tm) [Source](https://www.mikesonders.com/largest-saas-companies/) Why Should Startups Opt for SaaS?  ---------------------------------- ### Low entry cost:  Since it's completely based on software, hardware requirements are drastically reduced in the initial development. Using a SaaS model allows the software deployment time to be reduced from several weeks to a few minutes. It offers higher strategic value in comparison to on-site software deployments.  ### Pre-calculated cost:  Software prices can be acknowledged when deciding on a purchase with little or no fluctuations. ### Scalability:  The industry is scalable due to the demand for software. Reciprocally, the users can address their varied business demands due to the wealth of enterprise solutions present in the market currently.  ### Maintenance: No additional charges need to be spent on maintenance, as it's taken care of by the software provider. Additionally, SaaS vendors will keep the software updated via pushing feature improvements, security updates, and bug fixes.  ### Global reach:  As per ReportLinker, the market has [a compound annual growth rate (CAGR) of 20.8%](https://www.globenewswire.com/news-release/2021/05/06/2224239/0/en/Software-as-a-service-SaaS-Global-Market-Report-2021-COVID-19-Impact-and-Recovery-to-2030.html). SaaS can effectively deliver the necessary functionalities to the end-users with practically zero waiting time or hassles of passing through layers of organizational protocols. This adds to the popularity of SaaS solutions for every kind and scale of organization.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-7-1646994412361-compressed.jpg) Like many technology companies, SaaS startups have gained an advantage over the pandemic. This has immensely increased the digital adoption rate across various industries and has attracted many new users from sectors like health care, manufacturing, and real estate.  As the world moves towards digitization, the need for software solutions such as SaaS is driving huge demand for the subscription-based pricing model to satisfy the ever-growing IT needs. Startups usually suffer from budgetary constraints and the incompetency to develop operational software from scratch. SaaS vendors can cater to startup-specific needs keeping the scale and budget in mind. Also, as Startups and SMBs work on a limited number of projects, they are required to [plan for their small business](https://blog.salt.pe/how-to-plan-big-for-your-small-business-cky5e8885708281ks2mh7ecpgq) and use a limited number of products. With time, as the processes scale, the software requirements increase. With the SaaS subscription model, startups can avoid issues resulting from shadow IT and invest in only those products as are necessary.  Currently, the global SaaS market is growing at 18% each year. Nearly every organization and startup would have deployed SaaS solutions by 2021, and these numbers will increase in 2022. SaaS models will undoubtedly be the agile, modern solutions that will continue driving and automating processes at startups and SMBs in the future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Everything You Need to Know About SWIFT Code Author: Ankit Parasher Published: 2022-03-07 Tags: swift code, understand swift code, BIC and swift code, swift code and IBIAN URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-8-1646641450202-compressed.jpg) International transfer involves sending/receiving money overseas from your bank account to others. It can  seem straightforward and easy, but making an international payment is a complex process behind the scenes, and often a confusing one at the user front. One wrong click can cost you your money. That's why it is important to ensure safety and fully know how the payment cycle works.  The following blog discusses one of the basics of international payments, the SWIFT code.  What is a SWIFT? ---------------- [Society for Worldwide Interbank Financial Telecommunications or SWIFT](https://www.investopedia.com/terms/s/swift.asp) is a member-owned cooperative that ensures security & safety during an international payment as per the standardized proprietary communications platform. [SWIFT was established in 1973](https://www.investopedia.com/terms/s/swift.asp) in 15 countries and is currently operating in more than 200 countries, linking approximately 11,000 financial institutions.  What is a SWIFT code? --------------------- SWIFT code is like an international bank code or ID, which helps identify banks and other financial institutions globally to ensure the money reaches the right bank.  What does a SWIFT code look like? --------------------------------- [A SWIFT code has 8-11 characters](https://wise.com/gb/swift-codes/) representing the city, country, bank, and branch. It looks something like; AAAABBCCXXX.  ### #1 AAAA is four letters denoting the bank's name, written in short.  ### #2 BB are two letters that denote the country in which the bank is located.  ### #3 CC are two characters denoting the city of the bank. It is a mix of letters and digits.  ### #4 XXX is three digits that represent the location of the bank's branch. However, it is optional to add to the code. ### Are BIC and the SWIFT code the same? The SWIFT code is also called the Bank Identifier Code (BIC) or SWIFT ID.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-6-1646641491242-compressed.jpg) Are IFSC and the SWIFT code the same? ------------------------------------- No. [IFSC (Indian Financial System Code)](https://en.wikipedia.org/wiki/Indian_Financial_System_Code) and SWIFT code are different. IFSC is a unique code for every bank branch used to make transfers within the country. And SWIFT code is used to make international payments. However, you will need IFSC during an international transaction also.  When do you need the SWIFT code? -------------------------------- SWIFT code is required for sending & receiving money internationally. It is especially needed for [international wire transfer](https://www.bankofamerica.com/foreign-exchange/wire-transfer/) and [SEPA (Simple Euro Payments Area)](https://www.ecb.europa.eu/paym/integration/retail/sepa/html/index.en.html) payments to process the transaction globally. Though the SWIFT code does not help transfer funds, it is essential to know the bank's code before making the payment. Is SWIFT code the same for all of the bank's branches? ------------------------------------------------------ Yes, the SWIFT code can be the same for all the bank’s branches because branches usually use the same code as the head office. However, you will need the IFSC code of a specific branch to transfer the money, whether nationally or internationally.  Are the SWIFT code and IBAN the same? ------------------------------------- No, IBAN and the SWIFT code are different codes. [IBAN (International Bank Account Number)](https://en.wikipedia.org/wiki/International_Bank_Account_Number) is an individual's specific bank account number at a cross-border bank or financial institution to facilitate international transactions. And SWIFT code identifies the location of a bank globally.  Does every bank require a SWIFT code? ------------------------------------- No. The need for a SWIFT code depends upon the country you are transacting with. For example, [Eurozone countries](https://en.wikipedia.org/wiki/Eurozone) like Belgium, Germany, Spain, Italy, etc., require a SWIFT code while making an international payment.  Where can you find the SWIFT code?  ----------------------------------- You can find the SWIFT code from the following options: ### #1 You can check the bank statement of your account. ### #2 You can visit the bank's official website and check if they have listed the code on it. ### #3 The best way is to call and ask your bank directly. Does every bank have a SWIFT code?  ----------------------------------- The SWIFT code is created to smoothen the payment cycle worldwide and is not mandated by regulatory bodies, i.e., every bank doesn't need a SWIFT code. Hence, if a bank does not deal in international transactions, it does not have to get the code.  ### Conclusion SWIFT code is one of the basic and necessary aspects of international transfers. Though it is a safe network and there are fewer chances of mistakes if you have the correct details, it is still better to be cautious as your money is at stake. Take care of the tiniest details, cross-check the information with the recipient before making the payment, and use safe and secured platforms to make an international transfer.  [SALT, a leading neobank](https://salt.pe/), is working to make international transactions easier and safer for you, and you can do business globally without worrying about money getting lost in between. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Do Credit Card Companies Make Money? - Learn here Author: Ankit Parasher Published: 2022-02-22 Tags: credit card companies, Credit Cards URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-7-1646396319898-compressed.jpg) Cardholders across the world use credit cards to make billions of transactions every year for multiple reasons, such as to avoid carrying cash around and to avail themselves of the privilege of not having to pay a huge amount at once. Credit cards have been growing in popularity throughout the globe over the last decade; while among the European countries, the Nordics, Luxembourg, and the United Kingdom are in the lead when it comes to [top credit card countries](https://www.statista.com/statistics/675371/ownership-of-credit-cards-globally-by-country/) (with the Netherlands following close behind), back in 2017, Canada turned out to be one of top three countries worldwide with credit card ownership among consumers 15 years and up being over 70%. ![](https://lh3.googleusercontent.com/NIZdVYLnpKRv38AO4GHak7KZyXuKRyjBUO5lvMGoO6Dzj0bZ2yZSwPUUIkJo7WX5p7MmNH853Xfue3SO1sTQSRQYt4DklgoGbB-mGp5jnzdQ9G9VC_Q7D8qe6zeL_-nzZAfqaotq) (Source: [Statista.com](https://www.statista.com/statistics/1203267/india-number-of-credit-cards/#:~:text=As%20of%20August%202020%2C%20nearly,\(COVID%2D19\)%20pandemic.)) Further, as per [statistics from Statista.com](https://www.statista.com/statistics/1203267/india-number-of-credit-cards/#:~:text=As%20of%20August%202020%2C%20nearly,\(COVID%2D19\)%20pandemic.), about 58 million credit cards were in use across India in August 2020, and India ranked 11th on the list of countries worldwide with the most credit cards in use. Now, if you are one of these credit card users, you may have wondered how all these card issuers make money, and how they manage to make profits even when they are giving away plenty of cash backs and rewards and offers.  How a particular credit card company makes money is reliant on its role within the payment ecosystem. So before we start to understand how credit card companies earn money, let’s take a look at the many different kinds of credit card companies, and what work they do.   Different Types of Credit Card Companies ---------------------------------------- Aside from the cardholder and the merchant you send payments to, there are three primary parties involved in a credit card transaction. They are: * The credit card issuers: A credit card stands for a line of credit you get from your bank and later repay. The bank is the credit card issuer lending you the money, as in when you buy something with a credit card, the bank pays the merchant. In most cases, the card issuer is the only credit card company you might have to deal directly with. * The credit card networks: A credit card purchase actually involves quite a lot of communication within a matter of seconds. Firstly, the merchant has to contact your bank to get the transaction approved, and then the bank has to send the requested funds over to the merchant's account. However, all this communication does not take place directly between the merchant and your bank; it happens through a credit card network (such as Visa or Mastercard). Typically, the credit card issuing banks partner up with various credit card networks for every credit card they issue. The credit cards issued only work with merchants that also work with the cards’ network.  * The credit card processors: In most cases, these companies are the go-between for the merchants and the credit card networks. Processors provide merchants with the terminals where clients can insert or tap their credit cards, security, bookkeeping mechanisms, and more benefits. However, unlike the credit card issuers or networks, processors don’t vary with specific cards.  How Do Credit Card Companies Make Money? ---------------------------------------- Now that we know the different types of credit card companies involved in a transaction, we will be seeing how these companies make money.   How do credit card issuers make money from the cardholders? Of the three kinds of credit card companies mentioned above, only the issuer profits directly from you, the cardholder. There are several ways they do that, namely: ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-5-1646396342703-compressed.jpg) ### Annual fees: You have to pay this just to keep your card active.  ### Interest fees: These are charged by the issuer when you carry a balance on your card past the due date. They are charged as a percentage of the balance on your credit card, depending on your card’s APR.  ### Transaction fees: Aside from regular purchases, some types of credit card transactions charge an extra fee. For example, if you are making a balance transfer, you will need to pay a balance transfer fee; similarly, if you make a [purchase internationally via your credit card](https://blog.salt.pe/credit-card-overseas-charges-you-need-to-know-about-ckuo6uoxm33031ns9clhvjj1l), you will be charged additional foreign transaction fees.  ### Penalty fees: Not sticking to the terms of the cardholder agreement you sign will lead to the card issuer charging you a fee. This includes offenses like paying your bill after the due date or spending more than your specific credit limit.  ### How do credit card companies make money from the merchants? While credit card issuers can also profit directly from the cardholders, all credit card companies stand to profit from the merchants. Here's how:  ### Interchange fees: Every time a client uses a credit card, the merchant is charged an interchange fee by the card issuer to handle the transaction. ### Assessment fees: This is charged by the credit card networks on every credit card transaction that makes use of their network, and this goes to covering the cost of maintenance for the payment networks.  ### Processor fees: The credit card processing company a merchant partners with also charges the merchant, based on the contract between them. Usually, a merchant pays a set fee for every transaction that includes the interchange, assessment, and processor fees, which then the processor divides and passes on to the other companies.   Aside from the aforementioned fees, sometimes you also have to pay a ‘convenience fee’. This happens when the merchant fees are passed on to the customer, such as with utility providers like water or electric companies, or when you try to pay your taxes with your credit card.  How to Avoid Paying Unnecessary Credit Card Fees? ------------------------------------------------- You can avoid extra fees by: ### #1 Paying your balance in full every month. ### #2 Setting up alerts to notify you before payments are due. ### #3 Setting aside money for emergencies so you can avoid options like cash advances.  ### #4 Paying an annual fee only if the rewards you get from your credit card exceed the expenses.   Being a savvy client and doing your research before getting a credit card would help you reap the benefits of a credit card to the utmost. You can apply for a credit card through the [Salt website](https://salt.pe/) now! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FDI Regulations Every Startup Should Know About- Read here Author: Ankit Parasher Published: 2022-02-22 Tags: FDI , STARUP INDIA, FDI regulations, startup URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fdi-1645525152549-compressed.jpg) India's e-commerce business has exploded in recent years and continues to thrive. The market is expected to rise by 84% to 111 billion dollars by [2024](https://www.business-standard.com/article/technology/india-s-e-commerce-industry-set-to-grow-84-by-2024-says-report-121101700955_1.html#:~:text=The%20top%2010%20apps%20averaged,cent%20year%2Don%2Dyear.&text=Accelerated%20by%20the%20pandemic%2C%20the,reaching%20%24146%20billion%20by%202025.), aided by the pandemic. Selling and buying services and goods, including digital products, over a digital and electronic network is e-commerce. Platforms like [Salt](https://salt.pe/) have further facilitated the growth of businesses with borderless banking and a secure network of financial accounts. Companies integrated under the Companies Act of 2013 that perform e-commerce operations or have an e-commerce marketplace are e-commerce startups.  Foreign Direct Investment (FDI) in India can result in a capital infusion by boosting the growth of the e-commerce ecosystem. In recent years, e-commerce startups that use the marketplace model have seen tremendous development. The inventory-based e-commerce enterprises, on the other hand, have not reaped the benefits of the FDI policy reforms in India. The Indian government [changed](https://static.investindia.gov.in/2020-10/FDI-PolicyCircular-2020.pdf) its foreign direct investment policy in 2020, making it mandatory for corporations of neighbouring countries of India to obtain government clearance before investing in Indian companies. According to a [source](https://www.reuters.com/article/us-health-coronavirus-india-investments/exclusive-india-foreign-investment-rules-aimed-at-china-to-include-hong-kong-sources-idUSKBN2221H3), this was implemented to "deter 'opportunistic' takeovers and acquisitions due to the pandemic." FDI Policy on E-Commerce activities ----------------------------------- The equity/FDI cap on e-commerce activity is set at 100% through the automatic route under India's FDI policy. However, startups and entities should focus on Business to Business (B2B) e-commerce rather than Business to Consumer (B2C) e-commerce. While the FDI Policy enables 100% FDI through the automatic route for the marketplace model of e-commerce activities, it is not allowed in the inventory-based model of e-commerce activities. The marketplace-based e-commerce model entails an e-commerce startup or company providing an information technology platform on a digital and electronic network, functioning as a facilitator between the buyer and the vendor. The inventory-based e-commerce model describes e-commerce operations in which an e-commerce corporation or business owns and sells items and services directly to customers. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/fdi1-1645525197020-compressed.jpg) Regulations ----------- The FDI policy allows e-commerce activities under the following regulations. They are, * On a B2B basis, marketplace e-commerce businesses can transact with the sellers who have registered on their platform. * The inventory, or the products purported to be sold, cannot be controlled or owned by e-commerce businesses that provide marketplaces. The e-commerce business becomes an inventory-based model due to such control or ownership over the inventory. * Any entity with equity participation or inventory control by e-commerce marketplace entities or their group companies is not permitted to offer its items on marketplace entity-run platforms. * The services/goods available for sale electronically on the marketplace-based model's website must display the sellers' name, address, and other contact information. After the goods/products have been sold, the seller is responsible for delivering the goods to the clients and ensuring their happiness. * In the marketplace model, e-commerce businesses can support payment for sales following Reserve Bank of India (RBI) norms. * The sellers are responsible for any guarantee/warranty of services and items offered in the marketplace model. * E-commerce businesses that provide a marketplace shall not affect the sale price of services and goods in any way, and they should preserve a level playing field. * An e-commerce marketplace entity or another company in which the e-commerce marketplace entity has indirect or direct equity participation or common control shall provide services to vendors on the e-commerce platform at arm's length and in a non-discriminatory and fair manner. * The rebate offered to buyers by group companies of marketplace entities should be non-discriminatory and equitable. It is considered unfair and discriminatory to provide services to any vendor on specific terms unavailable to other vendors in similar circumstances. * An e-commerce marketplace should not require a vendor to offer a product solely on its platform. * E-commerce marketplace businesses with FDI will be required to keep and acquire a statutory auditor's report for the previous financial year by the 30th of September each year, certifying compliance with e-commerce rules. Now let us look at the policies for manufacturing, wholesale trading, single brand, and multi-brand companies. ### E-Commerce Manufacturing  The FDI Policy allows firms to sell their manufactured goods in India via retail and wholesale, including e-commerce, without obtaining government approval, i.e., via the automatic method. On the other hand, manufacturing companies can offer their food goods developed or manufactured in India for retail trading via e-commerce with 100% FDI if they get a government license. ### E-Commerce Wholesale Trading Businesses engaging in B2B e-commerce trading, whether in cash and carry wholesale trading, are eligible for a 100% automatic approval route under the FDI Policy. Selling goods or merchandise to merchants, commercial, industrial, institutional, and professional business users, and connected subordinated service providers fall under wholesale trade. It refers to sales made for a business, trade, or profession rather than personal use. ### E-commerce Single Brand Retail Trading The FDI Policy allows 100% FDI through the automatic method for firms involved in single-brand retail trading. E-commerce can also be used by single-brand retail trade organizations that operate through physical and mortar establishments. Selling goods of the same brand is referred to as single-brand retailing. For enterprises with FDI engaged in multi-brand retail trading, the FDI Policy prohibits retail trading in any form through e-commerce. Multi-brand retail trading refers to the sale of various products from numerous brands on a single platform. [Salt](https://salt.pe/) is India’s trusted borderless banking platform. If you’re seeking services such as multi-currency business accounts and smooth foreign transactions, visit [Salt](https://www.salt.pe) now to experience an effortless financial journey for your business today. To read more informative blogs, click [here](https://salt.pe/blogs/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Tips For Not Becoming Just Another Digital Marketing Agency Author: Ankit Parasher Published: 2022-02-17 Tags: agency life , digital agency, digitalmarketing agency, agency owners URL: https://salt.pe/blog/null Starting a digital marketing agency may be easy, but turning it into a successful business is difficult! Our lives are more connected digitally than they were a decade ago. But technology itself is not the future of digital marketing. Its future is a unique collaboration of technology, talent and skills. So, how can you accelerate the growth of your digital marketing agency in 2022?  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/4-1-1645082804545-compressed.jpg) Delivering meaningful results to customers can lead to new business creation. However, this is not a guarantee. So it's important to drive your own digital growth. In this article we will give you the top 5 tips for your digital marketing agency to secure its future. We live in a chaotic, intermediary-free world where everyone consumes too much media from multiple channels. In such a situation, your digital marketing agency can stay one step ahead following our exclusive tips. 1\. Specialise in Personalisation --------------------------------- Specialisation is the secret sauce behind consistent long-term growth for any digital marketing agency. But in this competitive marketing environment, don't try to do everything or solve everything your customers need. Spreading your tentacles too wide will slow the growth of your digital marketing agency. Therefore, you need to pick a specific market and focus on providing personalised services in that field.  As the era of personalisation approaches, digital marketing agencies must provide personalised results to clients. This does not mean the death of big ideas but a new dawn (thinking content, wearable technology, consumers skippable screens, etc.). Consumers are not the same when they are watching TV and when they are scrolling through their smartphones.  Every scenario, every consumer, every moment of interaction between business and customer is still vastly different from the typical digital marketing strategy that the digital marketing agencies have been dealing with so far. If your digital marketing agency can generate many great ideas in the focused area and is creative enough to provide personalised services, then your agency is bound to succeed. 2\. Improve Your Online Presence -------------------------------- One of the most overlooked strategies by digital marketing agencies is to improve their online presence through as many online directories as possible. Potential customers can find your digital marketing agency through online directories like Google and Yelp. It can be more cost-effective than advertising. Some agencies help brands create their own authentic newsrooms to promote their businesses.  On the other hand, some digital marketing agencies focus on advertisements that are relevant and original. These don't look or operate like active promotional materials. While you are improving your online presence, it is important for  you to focus on the content. SEO-friendly content is the direct communication channel between you and your potential customers. Through an online advertising strategy with good content, your digital marketing agency will have the power to establish better and more coherent connections with your potential customers. 3\. Focus on Research and Development (R&D): Create Lead Magnet and Case Studies -------------------------------------------------------------------------------- Digital marketing agencies sell professional services and not products. There are many examples of digital marketing agencies suffering in order to create, advertise, and sell physical products. A digital marketing agency's ability to deliver great service by conducting a high level of research will make the agency stand out. Adoption of new technologies for service development will be key to its success.  As a part of focusing on research and development, your digital marketing agency needs lead magnets such as e-books, cheat sheets, free SEO audit reports, white papers, and other tools to interact with the clients and store relevant data. Most of the website users won't become your clients unless you give them a reason to be. Lead magnets will help you to not only engage with your customers but also collect their business data to use in your promotional strategies. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/3-2-1645082847222-compressed.jpg) Further, showcasing successful client case studies will improve both your customer acquisition and retention strategies. Successful clients are gold mines for the growth of digital marketing agencies. It's good to be happy with the results you gave them, but don't stop there.  Client case studies are tremendously useful to help your customers know your digital marketing agency better. If possible, create a dedicated page that shows all these case studies and customer reviews. [62.6% of people agreed](https://www.emarketer.com/Article/Agencies-Use-Content-Case-Studies-Generate-Leads/1010213) that client case studies are very effective for attracting leads. 4\. Attend Events to Improve Your Network ----------------------------------------- Thanks to the internet, we can learn about almost everything sitting in our homes. However, attending digital marketing events can give you benefits you won't get from other sources online. At these events, you can listen to global industry leaders, get advice from top digital marketing experts and gain insight into the future trends of the digital marketing industry.  The COVID-19 pandemic is affecting businesses worldwide. Before the pandemic, attending physical events was very important to businesses and brands. But now, companies are more open to working with offshore digital marketing agencies. Today, even the virtual networking events include presentations, workshops, and classes designed to help you develop digital skills and expand your understanding of why you do what you do. Further, through such events, your digital marketing agency can meet new potential clients, find new partnerships, learn innovative technologies, etc.  5\. Choose the Right Team and Community to Collaborate ------------------------------------------------------ Having the right team is the key to a business's success. Moreover, A vibrant digital marketing community can help you understand the importance of what you do and how it fits into the "big picture" of the world of digital marketing. By posting on forums, networking, collaborating, and finding peer support, you can also become part of the global digital marketing community. Successful digital marketing agencies do not make mistakes in any aspect of their service. In fact, in addition to hiring the right team, they outsource most of their work to freelancers. You should not carry the burden alone because there is so much to do each day to keep upgrading your digital marketing agency. If you are too busy handling all the work by yourself, then you cannot develop your digital marketing agency. It is important to bring everyone in the team together.  Everyone should take the time to share what they're working on and get information from the group on how to scale a specific work across multiple platforms. It is better to outsource and delegate tasks that are not in your domain. From keyword research to link building and social media management, you need to find the right person to handle it and create the right team for your digital marketing agency. Further, you can host live podcasts on various social media platforms and invite influencers and industry experts to engage your audience as well as build a knowledgeable customer base. ### What's Next? Digital marketing agencies recognise marketing as a skill, of course, but often forget to leverage the skills for their own brand. As a digital marketing agency owner, you must not forget to market yourself first. This may seem simple, but it can be difficult to dedicate time to such tasks. The role of a digital marketing agency is simple: it helps the brands increase sales and loyalty. Following the aforementioned list of the top 5 tips to grow your digital marketing agency, you can surely stand out even in the most competitive environment. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Central Bank Digital Currency- The future of payments? Author: Sudhanshu Choudhary Published: 2022-02-16 Tags: CBDC, Central Bank Digital Currency, CBDC India, Digital Currency India, Digital Rupee, Digital Ruppee URL: https://salt.pe/blog/null On 1st February, amidst various announcements made during the budget speech, finance minister Nirmala Sitharaman's one statement, in particular, left everyone in a frenzy. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cbdcthefutureofdigitalpayments1-1644992663166-compressed.jpg) "Introduction of Central Bank Digital Currency (CBDC) will give a big boost to the digital economy. Digital currency will also lead to a more efficient and cheaper currency management system. It is, therefore, proposed to introduce Digital Rupee, using blockchain and other technologies, to be issued by the Reserve Bank of India starting 2022-23.” > CBDC? Blockchain? Digital Rupee? > -------------------------------- > > The statement took the country by storm. > ---------------------------------------- Was this the final nail in the coffin for cryptocurrency? What are the use cases of a digital currency? How different is it from physical currency? This blog will take a deep dive and understand precisely how CBDC functions and what its introduction means for various entities in India. As the name suggests, Central Bank Digital Currency (CBDC) is a form of a digital currency issued by the country's Central Bank. In our instant case, it will be issued by the Reserve Bank of India (RBI). It is pegged to national currency and functions just like physical cash or bank notes. However, unlike digital payment transactions, a digital currency would eliminate the need for banks as middlemen, as all transactions would be recorded and completed on a digital ledger monitored by the central government.  CBDC - Pilot Projects --------------------- There are 9 countries with active CBDCs - 8 of which is Caribbean nation. More than 80 Countries are researching on it and 14 countries are running pilot programs.  E-Naira - Nigeria’s CBDC launched recently. Nigeria currently s people with bank accounts and digital wallets to use it, but the idea is to give access to E-Naira even if the person does not have a smartphone.  Digital Yuan - Launched as a pilot program by China in 2014, which we can see launched on a full scale after the Beijing Olympics.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/cbdcthefutureofdigitalpayments2-1644992706768-compressed.jpg)   How is CBDC different from cryptocurrency? -------------------------------------------- While a CBDC and cryptocurrency are both built on a blockchain network, there are primarily 2 differences between the two. 1. Cryptocurrency is decentralised, which means that no central authority governs cryptocurrency. The decentralised network is run on math and code by 'miners' who make the blockchain more secure.  CBDC, on the other hand, is centralised and issued by the government. Since it is a government recognised, it carries citizens' faith, and it can carry out value exchange transactions like a Fiat Currency.   1. While CBDC is a currency used for exchanging value, cryptocurrency, at least as of now, is seen more like a digital asset rather than cash. An asset similar to stocks or mutual funds. Since governments will not be willing to let go of their sovereign authority over money, it is unlikely that cryptocurrency will ever transition into a currency in most countries.  Pros and Cons of CBDC --------------------- Now that we have understood the essence of CBDC let's break down how this digital currency could impact a country. ### Pros * It eliminates anonymity and makes money easier to track for the government. Thus, it could play a role in identifying instances of money laundering and black money hoarding. * For the citizens, it makes transactions easier, faster and more transparent.  * A potential point of bank failure is eliminated. Citizens don't have to be at the mercy of banks and their well-being for their transactions to go through successfully. In recent past we have seen co-operative banks going bust, CBDC can be an answer to such events.  ### Cons  * A digital currency could mean bidding farewell to any form of privacy. Transacting through digital currency would mean leaving a digital footprint everywhere which can be traced. * It hands heightened control and authority in the hands of the central institutions. * It also could lead to a disruption of a country's economy. The reduced need for commercial banks would mean they would have less money and deposits and, thus, fewer loans. A country's credit cycle could be badly hurt if such a thing does happen at scale.  To solve the problem mentioned above, two types of CBDCs are being developed by various countries. Retail CBDCs: Under this, citizens would have their digital wallets where they would be able to make direct transactions without the intervention of retail banks. Wholesale CBDCs: In a bid to keep commercial banks relevant, the idea of wholesale CBDCs is being developed where banks would have digital wallets and would in turn help transact digital currency for citizens.  It is still to be seen which model works better, but governments are leaning towards the retail model. Stable-coins and CBDCs ---------------------- Cryptocurrencies, in general, are highly volatile. 10-20% daily price movements are regular for many of them. Such volatility makes them unsuitable to act as a currency. Hence, if you want to cash out the profits in Bitcoins and sleep peacefully, you can simply put your earnings in stable coins which are less volatile and easily transferable. Hence, stable-coins were developed whose value is pegged approximately to the national currency. - This ensured minimising the volatility of a cryptocurrency while retaining its decentralised nature. Examples - USD Coin, DAI, Tether. It is widely believed that CBDCs would go on to replace stable-coins. While these are still early times, it will be interesting to see what eventually happens to stable-coins which currently has more than $100 billion in valuation. Conclusion: ----------- The concept of CBDC is in the development phase and as discussed above many countries are still testing waters. While it offers benefits to citizens, it also has a few downsides. It is also not a direct replacement for cryptocurrency. It remains to be seen whether crypto will be banned after CBDCs are introduced or continue to be recognised as a digital asset ambiguously or someday down the line be recognised as a currency too.  But for now, it is time to embrace the new revolution in payments, CBDCs. We will wait for RBI white paper on the same. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 6 Tips To Manage Your International Clients Efficiently Author: Ankit Parasher Published: 2022-02-15 Tags: Digital Service, Managing international clients, international clients URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-4-1644905240719-compressed.jpg) As the world becomes a global village powered by 24/7 connectivity, businesses have expanded their operations well beyond geographical boundaries. But expanding your business operations to a global scale brings along its own set of financial, cultural, linguistic, and management challenges. Different time zones, import-export laws, distinct cultures and market landscapes, legal formalities and paperwork, etc., are a few of the challenges that might obliterate your chances of cracking a profitable deal. To smoothen the crumples while communicating and transacting with your international clients effectively, here are 6 tips to help you wade through the difficult waters :  Always ‘Time Zone’ Communication with your Client ------------------------------------------------- While dealing with international clients, it is should be the first rule to take cognizance of the difference in time zones of your client and yours. If you are careless, you might be disrupting your client’s good night’s sleep and, maybe, your business relation too. Keep handy an online world clock tool to keep a tab on the current time in different countries across the globe.  E-mail conversations are convenient as they can either be answered after a certain time lapse or can be scheduled to be sent at a particular time. But when you need to get on a call or arrange a zoom meeting - pre-arrange a time that suits both of you while syncing the client’s time zone with yours to get a clear schedule in your time zone.  Take into Account the Difference in Language and Cultural Context ----------------------------------------------------------------- Each country has its own set of local slang and differences in language. Even within the English-speaking populace, we find several versions such as American, Australian, British, Indian, or Nigerian Pidgin. Acquaint yourself with the linguistic differences first, and then frame your email conversations accordingly. And in case you face difficulty in understanding, always make sure to ask for further clarification.  Research their local customs and etiquettes, and each country operates on its unique set of non-verbal signs and body language. These might come in handy in a face-to-face meeting over a zoom call when trying to enter a comfort level with your client. While Australians might consider your self-deprecating introduction more receptive than your promotions, Americans prefer a paced-up business schedule. In other countries, talking about pricing beforehand might be a turn-off. Research about the client and their country of operations and customize your approach accordingly for establishing relationships in the long run.   Zero-in on Payment Plan in Advance  ----------------------------------- Consider discussing the payment channels before you start transacting business with your client. This consideration is paramount as the payment mode will require your decisions at two levels: ### #1 The mode of payment, whether Paypal or wire transfers, international cheques, letters of credit or even, cash in advance. Paypal and wire transfers are the best suited.  ### #2 The processing fees involved. If your client has a US bank account, they will be able to send you a cheque which you can get encashed without spending too much on processing fees.  ### #3 Keeping a tab on exchange rates.  Once you sit and consider the above points, work upon a standard foreign payment policy that your company will follow for all its future endeavors. If the transactions are frequent, you may need to pile up some foreign reserves in your account to avoid conversion fees each time.  Conversely, you can head over to [SALT](https://salt.pe/) and get access to your own multi-currency bank account to transact all your international dealings at the lowest FX rate - 1.75 % of the transaction. SALT bank accounts support six currencies as of now, including USD, EUR, GBP, AUD, HKD, and SGD supports payments from more than 50 countries around the world. The bank account comes with several additional features, including e-cash, e-wallet, virtual cards, real cards, etc.  .  Sort Out the Legal Formalities  ------------------------------- Different countries have different laws and regulations in place regarding [export and import businesses](https://salt.pe/2021/02/08/importing-exporting-ideas-and-how-to-build-a-global-business/) - the paperwork involved, the legalities to be observed, and the taxation plan. This means your standard contract might not be acceptable in the context of the international client. Talk it out with your lawyer to check if the contract has you legally protected before you sign it.  Not only that, if your business concerns the sale of goods, understanding the logistics aspects, including tariff rates, size of the order, import-export duty, or any kind of fees levied when your goods land on the port of the client’s country. Mail forwarding services can be a better way to transport goods as they entail lesser shipping costs. Also, working with local partners in the client’s country can provide you with the market knowledge and the commercial landscape. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-3-1644905578655-compressed.jpg) Use Technology to your Advantage -------------------------------- Keep detailed notes of the conversation you had with your international client in any CRM (Customer Relationship Notes) software. Using CRM software helps your firm keep the chain of conversation continued as every manager in your firm can access the notes and continue the conversation while keeping the records updated. You can set notifications for clients’ birthdays, the expiry date of the contract, etc. Physical invoices in a technologically-connected world aren’t an effective choice. There are several quality invoicing software that can be seamlessly integrated with your accounting software can help you automate your invoicing as well the follow-ups, reducing the employee time and effort.   Use project management platforms to keep your projects on track while keeping the client in the loop about the project’s progress.  Managing international clients becomes easy when you do your homework before dealing with your international client every time. It is also essential to divide your project or contract into separate milestones to complete the project or contract in due time. Send regular updates to your client and sync your meeting schedules to keep the relations business cordial and extended.  What are some other tips that you think should be followed to better manage your international clients? Let us know in the comments. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Term Sheet Prepared? Here are the Next Steps to Close the Funding Author: Udita Pal Published: 2022-01-31 Tags: international clients, manage your clients, Get international clients URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-5-1643879880126-compressed.jpg) Whether you are a startup seeking investments or an investor looking for a viable venture to channel your funds in, it is always essential to follow a full disclosure policy concerning the terms and conditions of the investment before any commitment is made. Besides the other significant details, all these terms and conditions are all part of a term sheet. Before we lay out the steps on closing the funding, let’s first grab a quick revision of what a term sheet constitutes and what significance it holds in the enterprise-investor camaraderie.  [Investopedia](https://www.investopedia.com/terms/t/termsheet.asp) defines a term sheet as ‘a nonbinding agreement that shows the basic terms and conditions of an investment (outlined by an investor seeking to invest in your company).’ The term non-binding implies that none of the parties- here, the entrepreneur and the VC - is legally obligated to abide by the sheet’s contents. Term sheets are a crucial document for startups looking to find potential investors. The contents of a term usually include: i. Valuation of the company or startup ii. Investment amount iii. Percentage stake iv. Liquidation preference v. Voting rights vi. Anti-dilutive provisions, and vii. Investor commitment  Essentially, the term sheet lays the groundwork for the contract that would most likely happen between the two parties if there’s consensus on the major aspects mentioned in the term sheet. This ensures that the occurrence of any legal dispute is minimized, and hefty legal charges involved in drawing up the legal agreement are not incurred ahead of time.    As for the question - what does a term sheet contain - a [Forbes article](https://www.forbes.com/sites/alejandrocremades/2018/07/07/term-sheet-here-is-everything-entrepreneurs-must-know-when-fundraising/#5ec4bbcb43ef) aptly says it “details what you as the start-up are giving, and what you are getting in return. Then it lays out the guidelines of how both parties will act to protect the investment.”  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-4-1643879913141-compressed.jpg) Here, we’ll discuss the latter part - that of ‘how both parties will act to protect the investment,’ i.e., the next steps to close the funding after you are done with the task of drawing out a term sheet: #1 Prepare Yourself for Term Negotiations  ------------------------------------------ Once you have decided to initiate a fundraise, discuss with your lawyer the status of your business concerning its traction, opportunity, and liquidity. In this way, you will become aware of your business’s leverage for the upcoming financing event. Time to set up your negotiating position now!  Together with your lawyer, note down your position and supporting arguments concerning every term in the term sheet - whether about liquidation preferences, voting rights, or pre-money valuation.  #2 Follow-up after Receiving the Term Sheet ------------------------------------------- Once the term sheet arrives in your mailbox or email, quickly write back to the VC a positive response with gratitude. If there are multiple VCs interested in backing your venture, buy time and respond to each one of them before you schedule your first call with the investor.  All investors genuinely interested in your project would follow up, and you would have a clear way ahead on how to take the next step.  #3 Consider the Investor’s Profile ---------------------------------- If there are multiple term sheets received, you must acknowledge the same response to the respective VCs. Time to call your lawyer again! Go through all the term sheets together and try to identify the possible pros and cons while developing your negotiating position further. Next, consider the investor’s profile about what domain knowledge and connections they might bring.  What would be the nature of your relationship with the VC lead and whether the VC will capacitate any further investments in the future. Ask for references of the particular VC’s past dealings to get a better idea. #4  Holding Term Sheet Negotiations ----------------------------------- Investors often keep the most contentious topics for the latter part of the discussion, but companies should first discuss the terms they are uncomfortable with, terms they want to change, or add to the sheet. The organic sequence of a term sheet negotiation involves talks about:  i. Pre-money valuation ii. The scope of the economic terms mentioned in the document, including liquidation preference, anti-dilution provisions, etc.  iii. Significant control terms, including the degree of freedom to raise debt financing or make management compensation decisions, etc.  iv. Conditions required to be fulfilled before financing   Once the above list is check-boxed, you can safely sign the term sheet. If you have multiple term sheets lined up, it is time to repeat the above steps to negotiate and close more funding until you reach your desired funding target.  #5 The Imperative of Due Diligence  ----------------------------------- Under due diligence, the company or startup seeking funds should allow the investors to verify its claims or the facts it has disclosed. The main areas of due diligence cover the technical, team, financial, and legal aspects of a company. #6 Schedule Corporate Dinner Dates ---------------------------------- There is ample time between the term sheet negotiations roundup and the completion of the definitive agreement. Companies should use this opportunity to arrange a dinner or two with the investor to strengthen the relationship further. Engaging a future board member to find common ground at the level of principles helps deepen the investor’s understanding of the top priorities of the company.  #7 Signing of the Final Definitive Agreement  --------------------------------------------- More than the company and the investor, each lawyer will be involved in debating and negotiating every word of the financing agreement. You should hold a direct discussion with the CEO or leader of the VC at this time to approach the issues pragmatically. Thus, the entire agreement will fall into place, and the funds will be credited to your bank account for you to begin your operations.     Once you have received the term sheet, the actual struggle begins as even though you have found investors interested in funding your company, you need to ensure that you can successfully close the funding. Often, the emerging brands, however attractive they are, in their early fundraising stages, have to wait typically for 8-12 months before they can close the funding. This can be a dangerous position for startups and new brands in the crucial initial years of their business. Companies should avoid broken term sheets. It becomes extremely difficult to strike conversations with the same investor for want of trust or go to other investors who already suspect a broken term sheet. To avoid being trapped in such a situation, companies must close quickly on interested investors.  If you are a startup looking to amp up your online remittance and smoothen your global business operations, head over to [Salt](https://salt.pe/) - the global neo banking solution for businesses. Companies and businesses of all kinds can transact sales using multiple accounts that support six currencies and operations in 50 major countries across the globe. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 9 Common Mistakes Every Web Development Agency Makes Author: Ankit Parasher Published: 2022-01-24 Tags: agency, web development agency, agency owner, agency life , mistakes agency makes URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-2-1643010361705-compressed.jpg) In this era of technology, an online presence speaks volumes about an individual or a business entity. Websites are an important part of this online persona, attracting a customer pool and boosting overall growth. And if you choose to hire a web development agency to create your website rather than winging it with a DIY templatised service, then there are certain things you need to keep in mind as you choose an agency.  Although they’re keeping up with and incorporating the latest trends, there are some common mistakes every web development agency makes. This doesn’t make them wrong, but only humans.  The following are 10 common mistakes every web development agency makes, which you can lookout for, while hiring a web development agency.  ### #1 Not Understanding Target Audience  Quite self explanatory, before building a website, it is necessary to know who the consumers would be to design and technically optimise the search engine accordingly. You don’t want to be pitching to the wrong customers, do you? That’d be an incredible waste of resources. ### #2 Indecisive Decision-Making Not all agencies will refuse their clients, which doesn’t mean they aren’t good at what they do. It just means they’re too nice. Which you, as a client, might think is a good thing because they will cater to your wants, but this could lead to chaos and an additional waste  of time and resources. For example, if you want to completely change the look of your call to action button after it’s added to the website, this would mean an additional burden on the website development agency.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-3-1643010388439-compressed.jpg) They would need to redesign and replace the button on the site, fix alignment and responsiveness and lastly re-test the user flow to ensure that the replacement did not break anything. One of the most common mistakes every web development agency makes while trying to please a client is that they don’t establish rules or boundaries with clients. ### #3 Not Determining Specific Client Needs The agency you hire should learn and understand what you need, or they would be unable to deliver the functionality and design elements you require. As the client, you must provide all details to the agency to avoid this. A web development agency can fulfil a client’s requirements only when they understand and adapt to their clients’ needs. ### #4 Having Too much Trust It is usual for agencies to bank on verbal or email agreements. But it could fast turn into one of the most common mistakes every web development agency makes if all the details are not finalised and agreed to on paper. Having a written agreement clarifies for both sides what is required and what is to be delivered and leaves no scope for any misunderstandings in the future.  ### #5 Not Providing Enough Hosting Storage Space A [web hosting](https://www.educba.com/what-is-hosting/) service hosts websites for clients. This internet hosting service offers clients facilities that enable them to launch and maintain a website and make it accessible on the internet. Companies that provide web hosting services are also known as web hosts, and as web host, one of the common mistakes web development agencies make is not reserving enough web hosting storage space or performance capacity for their clients. This storage space is used to store all the web pages’ data, any files available for visitors to download, any media or graphic content like music, videos, images, etc. If you’re spending a good amount of money on your website, you should receive abundant hosting storage space, or you could encounter problems down the road.  ### #6 Not Having an Articulated Portfolio Another one of the most common mistakes every web development agency makes is ignoring their own website and portfolio. After all, if they’re designing websites, then their website is bound to look impressive, right? Apparently not.  Sure, the websites they’ve designed look great in the snapshots provided with their portfolios. However, perhaps the best way to assess them is to visit their own website and the actual websites from the snaps provided to look at practical pieces of their work. That would be the best way to judge their work.  ### #7 Quoting Fixed Rather Than Estimated Prices   Another  common mistake that every web development agency makes while quoting prices is that they don’t give an estimated breakdown of their costs. They quote a fixed price in order to please the client. This may not always work out because you may approach a web development agency with a detailed plan of what you want your website to be like.  However, there remains a chance that you may have to change certain aspects of what you planned for the website moving forward. This results in extra work for the developers within the same budget, which could fall short and compromise work quality. In such cases, if the agency has given you an estimated breakdown of what costs would be required, then adjustments can be made.  ### #8 Website is not Mobile Compatible  This is one of the most common mistakes every web development agency makes. A consumer’s impression of a website hinges on its looks from a mobile device. Mobile compatibility means more than just a mobile responsive site. It means a site should be fast, responsive, and work well with every device. Many agencies do not develop their websites following the [mobile-first rule](https://developers.google.com/search/mobile-sites/mobile-first-indexing), and as a result, their websites don’t always turn out to be mobile compatible.   ### #9 Weak SEO Implementation  Search engine optimisation is not limited to writing text content for better organic reach. Technical SEO - an equally important component of SEO - comprises lots of best practices to keep in mind, such as HTML tags, page load times, and website crawlability. However, one of the most common mistakes web development agencies make while making a website is not implementing search engine optimation from the beginning. Thus, you should learn more about a web development agency’s SEO practices to ensure efficient SEO implementation for your website. ### #10 Not Assigning Equal Significance to Web Development and Web Design  Not assigning equal importance to web development and web design is another of the most common mistakes every web development agency makes. For a website to operate well and look good, classy web development and web design are two of the most important requisites. And while most people confuse the two for the same concept, they aren’t similar.  While web development entails the code to run a website, web design focuses on design elements and how to make a website look good. So, while hiring a web development agency, you should ensure that they offer both web development and web design.  Hopefully, you now have an idea about some common mistakes every web development agency makes. And you will be able to spot these mistakes early on, and work on how you can avoid them.  For more financial insights and to keep up with the latest trends, visit our blog at [Salt](http://salt.pe/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Founder’s Guide To Vital Startup Metrics - Make better decisions Author: Ankit Parasher Published: 2022-01-17 Tags: startup metrics, founder's guide, important startup metrics, startup metrics for founders URL: https://salt.pe/blog/null ![Founder's guide to important startup metrics](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-1-1642404853805-compressed.jpg) For any founder, sustaining a startup in the long run is more often than not the most difficult part. While- [as per a 2019 report](https://startuptalky.com/why-startups-fail-case-study/)\- over 5 million startups are established every year, an [IBM Institute study](https://www.livemint.com/opinion/online-views/slip-into-lean-mode-to-raise-the-odds-of-startup-success-11621958508926.html#:~:text=An%20IBM%20Institute%20study%20finds,first%20five%20years%20of%20inception.) shows that nearly 90% of these Indian startups have been known to fail within the first five years of their journey. One of the biggest reasons for this might be that the teams behind these startups hadn’t been monitoring the KPIs- or the key performance indicators- often enough.  There are several startup metrics that can help founders realise how well their startup is doing, as well as root out any problem points that might exist. To decide on which particular startup metrics to track for your business, first you need to identify your business model. Figure Out Your Business Model ------------------------------ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-1-1642404972579-compressed.jpg) Your business model will ultimately dictate which startup metrics you will need. For instance, your startup might follow one of the following models: * The Marketplace Model: This kind of startup will allow the transaction of products or services between the buyers and the sellers, and claim a certain percentage of the value transferred. Startups metrics that can be used include CMGR or Compounded Monthly Growth Rate, GMV or Gross Merchandise Volume, and CAC or Customer Acquisition Cost. * The eCommerce Model: This model can be DTC (direct-to-consumer) or B2B (business-to-business) and is about getting manufactured or sourced products to customers. Relevant startup metrics include CMGR, CAC, and GPM or Gross Profit Margin.  * The SaaS Model: Clearly, the SaaS or software-as-a-service model delivers software to consumers on a subscription/recurring basis. Startup metrics you can use include CAC, MRR or Monthly Recurring Revenue, and Revenue Churn Rate.   * The Subscription Model: While the usual consumers of a SaaS model are other companies, for a subscription model, the clients are individuals. So while SaaS models will make use of the Revenue Churn Rate startup metric, the subscription model would better choose to go with the Customer Churn Rate. Other relevant startup metrics include MRR, CAC, and CMGR.    * The Advertising Model: This kind of startup provides consumers with a free service and runs advertisements on the platform; the model generates most of its revenue from selling advertisements. Useful startup metrics would be GPM, CAC, CMGR, and more.  Key Startup Metrics for Product Success --------------------------------------- After you have figured out your business model, you can decide which relevant startup metrics you want to keep track of. To make your task a bit easier, in the section below we have summed up ten key startup metrics, and how to deduce them.  ### 1\. Daily Active Users (DAU) and Monthly Active Users (MAU) These startup metrics can tell you how many people are interacting with your product on a daily and a monthly basis. Every startup- regardless of the business model- should track both DAU and MAU as it is a key factor that can help you gauge the progress your business is making.  Your startup has to define what ‘active’ means to you according to your business model, however. For instance, your particular product might be one where a user who simply opens your app or logs on to your website would be counted as an active one. ### 2\. Gross Profit Margin (GPM) GPM calculates the difference between revenue and the total cost of goods sold (COGS). GPM for separate goods can help you figure out the higher-margin products that you may want to promote more, show if your COGS is higher than usual, and point out fluctuating expenses and sales.  ### 3\. Compounded Monthly Growth Rate (CMGR) CMGR is calculated by monitoring the month-over-month growth over a given time period- usually anywhere between 6 months and 2 years. This startup metric can help you determine the average growth in several aspects- from the growth in number of users to the growth in revenue over a given timeframe.  ### 4\. Burn Rate This startup metric shows the rate at which your startup is ‘burn’ing through the cash reserves. Instead of assuming a constant burn rate, if you track the burn rate periodically, you can calculate your cash runway, watch out for sudden increases in expenses, and determine whether to cut costs or invest more in a particular aspect.  ### 5\. Customer Acquisition Cost This startup metric calculates the amount your startup has to spend to gain a new client. Along with the marketing and sales costs, the salaries and overhead for the team involved in bringing in new customers are also counted in. Most startups break down CAC by channels; this way, you can figure out which activities have lower CAC but bring in more profits.  ### 6\. Bookings The total annualised value of all new contracts signed with your startup over a certain period of time is what is considered in this startup metric. A booking is registered when a client agrees to spend money on your startup. This particular startup metric reflects future revenue, as despite the contract being signed, it has not been executed.  ### 7\. Customer Churn Rate This startup metric keeps track of the rate at which a startup loses clients. This one can prove especially useful to subscription models and B2B startups, as they are focused directly on the volume of customers. To figure out whether your product is satisfying customers or leaving something to be desired, as well as investigate why you might be losing clients, customer churn rate is a metric you must use. ### 8\. Revenue Churn Rate As opposed to the customer churn rate, this startup metric tracks the rate at which your company loses revenue- whether due to lost consumers or any potential downgrades in subscriptions or any other reason. Customer churn rate and revenue churn rate may or may not produce similar results. ### 9\. Annual/Monthly Recurring Revenue (ARR and MRR) Both ARR and MRR are useful to SaaS enterprise startups/ any startups with subscription revenue models. SaaS startups have substantial upfront expenses (from employee wages to data storage costs to office rent), so these startup metrics would give an accurate account of the associated risks and the financial health to future VCs. Further, startups with subscription models generate income on a monthly or annual basis, and again, investors can use ARR or MRR to find out what kind of revenue the startup will be generating.    ### 10\. Gross Merchandise Value (GMV) GMV is the total income generated from all sales over a specified timeframe. This startup metric also shows overall growth. Marketplace and e-commerce business models in particular will find this metric hugely useful.  As you identify your business model and choose key startup metrics, there is one more thing you should keep in mind while utilising them - evaluate and change your key metrics regularly so you can ensure you are prioritising all the important ones and keeping up with your business’ current state.  Good luck on your new venture! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 5 Payment Trends for Businesses In 2022 Author: Ankit Parasher Published: 2022-01-11 Tags: payment trends, business trends, payment trends 2022, business trends 2022 URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payment-1641879343723-compressed.jpg) The Covid-19 pandemic forced the payments sector to undergo a makeover, spurred by new-age firms' innovative techniques, industry consolidation, and customers' demand for an end-to-end experience. As the industry crosses milestone after milsetone, it enters a new age known as Payments 4.X. Payments are now embedded and undetectable, and serve as an enabler for a frictionless consumer experience. Digital IDs are crucial for a flawless payment experience when clients permanently change next-generation payment systems. Around [44 billion](https://www.statista.com/statistics/1251321/india-total-volume-of-digital-payments/) digital payments were registered in India in 2021. Large-scale interbank payments, such as Real Time Gross Settlement (RTGS) or National Electronic Funds Transfer (NEFT), and payments made by individuals, such as credit and debit cards, were included in the overall amount of digital payments. Since 2015, India's mobile payment system, Unified Payments Interface (UPI), has seen significant [growth](https://www.statista.com/statistics/1251321/india-total-volume-of-digital-payments/) in terms of both numbers and value. The transactional value of digital payments is expected to grow up to over [238 trillion](https://www.statista.com/statistics/1247251/india-value-of-digital-transactions/) Indian rupees in the financial year 2025 in the country. Firms may only realize their full market potential by adopting API-based business models and open ecosystems in the new era, requiring collaboration and platformification. Data prowess and improved payment processing capabilities will be necessary to succeed in the future. Banks and traditional payment companies are racing against the clock since their competitive edge isn't guaranteed indefinitely. Let us explore the top five payment trends emerging as imperative tools for businesses in 2022. #1 Payments from your smartphone -------------------------------- Mobile payments are the de facto mode of purchase and payment for GenZ. Paper checks, cash, and even plastic payment cards will be as exotic to a future generation as 8-track music players and rotary phones were to their parents. Everything from groceries to pet care may be paid for using mobile payment technology. Although the shift to mobile will not happen immediately, the days are rapidly approaching when paying with a card will be nearly unheard of. In 2023, it is estimated that there will be 1.31 billion [proximity mobile payment transaction users worldwide](https://www.statista.com/statistics/557959/global-mobile-proximity-payment-users/), up from 950 million users in 2019. The rationale for mobile payments' rapid rise is simple: they are just more convenient. The customer does not need to transport additional luggage, and the merchant does not need to deliver your pizza with a card swiper. Mobile payment has become the final step toward a cashless society for many people. It's simple to see why most people expect mobile payments to be the inevitable king of eCommerce in an age of heightened disease awareness and a general desire to build social distance. #2 Single-Click Payments ------------------------ Many businesses, including Amazon, have come to rely on "single-click" payment options. The idea is that by storing your card and shipping information online, you will be able to pick an item and pay for it right away. There are no checkout carts or payment forms to fill out; just one click, and you're done. Payment info is automatically filled in for any subsequent purchases made by the merchant. The customer's card data is encrypted via a technique known as "tokenization" in this type of payment system. For future purchases, the token serves as the customer's identification. After that, if the buyer has already paid on the website, they can make one-click payments. As a result, card tokenization substitutes sensitive bank card data with a unique token that allows you to make transactions online without entering your card information. Tokens are safe to use and secure. Fraudsters are unable to decipher them. The key benefit is that the customer can pay automatically on any website without directly accessing their credit card information. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/payment1-1641879379977-compressed.jpg) #3 Contactless Payments ----------------------- As the name implies, a contactless payment does not require physical touch between the buyer's smartphone or credit card and the POS. You may have also heard the term NFC which stands for "near field communication." It's a radio frequency identification technology that enables contactless payments (called RFID). NFC transactions use a specific radio frequency to allow a card or smartphone to connect with a payment scanner when they're close enough (usually 10 centimeters or less). Magnetic-stripe cards, whose somewhat antiquated technology makes them reasonably easy to clone, implying a greater probability of identity theft and bogus charges. Contactless payments are verified, which means they're challenging to hack. The data connected with the credit card on file is encrypted and continually changing in contactless payment. As a result, even if fraudsters were to break into a system, their uncovered information would be meaningless. Contactless payment systems have grown in popularity as a result of the pandemic. They accounted for [55](https://www.rba.gov.au/publications/bulletin/2020/mar/consumer-payment-behaviour-in-australia.html)% of all point-of-sale sales in Australia in 2019. #4 Payments with Rewards ------------------------ Rewards programs and loyalty points have long been utilized to enhance brand engagement and retention, but redeeming them has always been a hassle. However, with the increased use of digital payment methods and the development of a digital ecosystem, these points can now be used to pay for a range of transactions- online and offline. This benefits the point issuers, the businesses who take the points as payment, and end-users. The impact of rewarding payments is three-fold. The consumers will be able to redeem these points quickly, allowing them to experience a convenient getaway which will help businesses to retain a happy customer base. Businesses that accept reward points also see an increase in income and sales. In [2019](https://www.paymentsjournal.com/the-data-around-trends-in-debit-card-rewards/), cashback rewards were the most popular, with 60% of debit card rewards participants opting for them. #5 Buy Now/ Pay Later --------------------- Affordability options like 'Buy Now, Pay Later' have taken the e-commerce business by storm around the world and are sure to be one of the significant payments trends in 2020. Buy Now Pay Later (BNPL) is a payment option that allows customers to purchase without paying out of pocket. In most cases, they sign up with the bussiness providing the service, and they deliver on the customer's behalf after a purchase. However, after the lender makes a payment, the amount must be refunded within a specific time frame. The customer can pay it in one single sum, or no-cost Equated Monthly Installments (EMIs).  These methods have evolved to become even more seamless. Today, the process takes only a few clicks and less than a minute, and clients can pay across many timelines without incurring any additional costs or charges. Companies that use such solutions get more money by utilizing previously untapped client niches. ​[Salt](https://salt.pe) provides businesses with a one-stop portal to manage multi-currency accounts, payments, collections, and expenses worldwide. Visit the website [here](https://salt.pe/), or click [here](https://salt.pe/blogs/)to read more about such emerging solutions and global trends in fintech and business. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Numbers Reaffirm the Fintech Wave in the Country: But How is the Future Looking? Author: Ankit Parasher Published: 2022-01-08 Tags: fintech, fintech in india, fintech wave in india URL: https://salt.pe/blog/null A recent report titled ‘[India FinTech: A USD 100 Billion Opportunity](https://web-assets.bcg.com/9e/bb/11de3305496dbef780031efeb6b0/bcg-ficci-report-india-fintech.pdf)’ by the Boston Consulting Group (BCG) and Ficci stated that the Indian fintech sector will realize a valuation of USD 150-160 billion by 2025. The report further stated that the Indian fintech sector has been successfully able to raise USD 10 billion from global investors, while its total valuation stands at an estimated USD 50-60 billion.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641625926321-compressed.png) Having emerged as one of the fastest-growing fintech hubs in the world, India stands at the altar of a possible fintech revolution with concepts like mobile banking, paperless transactions, mobile wallets, and secure payment gateways have become a part of our daily lives. The remarkable growth trajectory of fintech in India is conspicuous in the [87% adoption rate](https://www.financialexpress.com/money/a-one-stop-destination-for-financial-services-the-future-of-the-fintech-industry/2245117/)\- the highest amongst all the emerging markets in the world. The huge customer demand is fuelled by the well-versed reciprocity of the Indian fintech firms in understanding the pain points and specific preferences while focusing on seamless customer experience.  Besides huge customer demand, the fintech sector is being aided by varied capital flows, the immense talent pool in the country, accompanied by the government’s enthused drive towards digitization. Some of the major initiatives include Direct Benefit Transfer Scheme, Start-up India, Digital India, Jan Dhan Yojna, and others.  Along with these factors, the pandemic further accelerated the pace of fintech adoption in the country. It is noteworthy that UPI payments grew by [3x of their pre-pandemic](https://www.cxotoday.com/news-analysis/how-india-is-on-the-cusp-of-a-new-fintech-revolution/) value between March 2020 and January 2021. Such growth was also witnessed in online broking where the share of active clients with fintech discount brokers increased from a pre-pandemic 43% to 57% during the same time period. Also, three new fintech unicorns, namely, Pine Labs, Razorpay, and Digit Insurance have come into existence since January 2020.      The rising trend in fintech is not only being seen in payments and e-commerce services but also in other allied services such as data analytics, digital marketing, and digital transformation. Fintech startups have also been trying their hands in other domains such as insurance and wealth management.  The Future of Fintech in India: Opportunities and Challenges ------------------------------------------------------------ The astronomical growth that the Indian fintech sector is observing currently posits its own set of opportunities and challenges that might affect its future run and growth prospects. Let’s discuss.  Access to Technology  The number of Indians that have adopted payment apps and UPI as an alternative mode of payment in recent years, owing to the easy access to technology via mobile phones, has positively impacted the digital shift to fintech. This positive impact is not only being seen in direct payment apps but also in mutual funds, insurance, online loans, and other such fintech offerings.  A [report from Accenture](https://www.accenture.com/us-en/insights/banking/boost-boardroom-technology-expertise?c=acn_glb_digitizingdirecmediarelations_12054229&n=mrl_0321) suggests that even though the adoption rate of digital technologies has substantially risen over the years, continued lack of technical expertise and digital fluency persists even in top banks across the globe, and India falls under no exception. This lack of efficiency with handling tech gets reflected in customer dealings and stakeholder relations. Accenture recommends 25% of the members in a particular board of directors be technologically experienced and upgraded to pace up digital adoption.   ### Partnership-led Growth Several banks have partnered with fintech firms to upgrade their existing systems and enable smoother operations for a better customer experience. Reciprocally, fintech startups have used data analytics to their advantage to encourage collaborations between banks and other financial service providers to help them deliver products via an open architecture, say, a website letting customers choose insurance policies as per their requirements and customize their plans accordingly. A [Credit Suisse report](https://www.fortuneindia.com/opinion/the-future-is-in-fintech/105597) upticks this marriage between banks and fintech firms as a boon for 60-70% of new retail customers and 50-60% of new MSME and home loans for leading banks.  Sanjay Doshi, Partner and Head of Financial Services Advisory, KPMG, reaffirms, “_They (Banks) are really looking at tech and fintech companies that can help them move their digital activities forward, either investing in them directly or using them as service providers. That is going to be a big growth area for investment here in India — banking-as-a-service platforms.”_ ### Increased Global Interest The very successful Unified Payments Interface(UPI) and the 2019 ecosystem-level Sandbox initiative proposed by the government as financial inclusion measures has the global audience viewing India with interest. For several decades, India has been the hub for IT services and very recently, has become a home for one of the largest numbers of startups in the world. The huge talent pool, given the scope and width of fintech possibilities in India, can find opportunities for growth and development both at home and abroad to help build global digital financial services.    ### Momentum via Supply Chain Digitization Since the onset of the Covid-19 outbreak, things have changed drastically when it comes to customer preferences, safety protocols, and other such challenges for businesses. The rapid digitization of supply chains, especially in the case of SMEs and MSMEs, and the dramatic rise in significance of e-commerce in our lives have become a ubiquitous phenomenon. Owing to safety concerns and lockdown for months in the country, more and more merchants had to extend their operations online to engage their existing customers and expand into new zones. As such, besides digital payments, we saw the rise of fintech startups concerning inventory management and record-keeping and other such digitals tools for improving the management of business operations.   Government agencies also collaborated with many fintech firms to handle Covid-19 related data and manage operations such as vaccination drives, information regarding the provision of medical facilities in times of need, among others. Infosys joined hands with the government to develop a blockchain-based app, M-Setu, that would handle Covid-19 records and data.   The Problem of Unaddressed Opportunity -------------------------------------- Despite the government having launched a plethora of initiatives and promotional policies to promote digitization, the extent to which the customers have engaged with the formal financial sector remains low. Sadly, [14% of the Jan Dhan account](https://www.fortuneindia.com/opinion/the-future-is-in-fintech/105597)s launched to bank the unbanked sections of the society remain dormant. The penetration of other financial products remains way below the global standards, for instance, less than 2% of Indians invest in mutual funds, and the amount of funds invested in insurance policies is 4% of GDP.  Talking about MSMEs, [only 1/6th of the millions of MSMEs](https://www.fortuneindia.com/opinion/the-future-is-in-fintech/105597) in India rely on formal sources of finance and credit which alone represents a USD 340-billion opportunity that remains unaddressed.  Despite several challenges, fintech in India would continue to chart a rising graph. As technology becomes more accessible and fintech services more affordable, fintech services will reach a greater number of people, both geographically and demographically. While new technologies concerning fintech tools to save, invest and trade money will continue to emerge giving people new paradigms of financial independence and awareness. In order to achieve both horizontal and vertical growth, the fintech firms would need to define appropriate strategic plans to enhance user experience while embracing innovation to build deep tech capabilities.  ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Old Traditions, New Trends: How businesses are preparing for the festive season Author: Ankit Parasher Published: 2022-01-08 Tags: business in festive season, festive season, festive season in india URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/saltblognew-22-1-1641625876645-compressed.jpg) India is the land of diversity and culture. With twenty-nine states, six major religions, countless languages and thousands of diverse communities, it is no wonder that our festivals are testimonials of our unity in diversity. Our festivals revolve around seasonal changes, God’s birthdays, traditional myths and so much more. The most beautiful thing about this country is that festivals here are celebrated without the barrier of caste, creed or religion. For a country so invested in its festivals, it is no doubt that as soon as the festive season arrives, businesses start marketing their products around the same idea.  After all, they need to strike a chord in the hearts of the people, and what better way than targeting the thing we hold closest to our hearts. Our festivals. Why Is The Festive Season The Best Time To Grow A Business In India? -------------------------------------------------------------------- India is counted among the most visited tourist destinations across the world. But this is not because it has a very happening nightlife or towering structures to attract people. Instead what it offers is magnificent culture and lively festivals that it celebrates round the year. From north to south. Most of India's cultural celebrations either have a spiritual lineage or have gotten popular over time. But, they all captivate huge crowds both locally and internationally.  Most people in this country hold sincere devotion to these annual occasions, so much so that they save up for months and spend weeks preparing for a festival. Even our houses are specially cleaned for these events. We mean, you surely remember your mother pestering you to help her with "Diwali ki safai", don't you?  The important thing is that these festivals don't just attract the masses but marketers as well, on the huge footfall that these events receive. Even some of the most widely appreciated experiential activities have been done around some of these festivals.  In September, the e-commerce colossus Amazon and its home-grown competition Flipkart came out with their first session of pre-festival sales – the [Great Indian Festival and the Big Billion Day](https://www.india-briefing.com/news/shopping-festivals-in-india-what-it-means-for-business-15293.html/), respectively – offering huge discounts and bargains across key customer durable sectors such as smartphones, home appliances, fashion etc. In five days, the two e-commerce companies generated US$1.5 billion (Rs 9,000 crore) of sales, showing a 40 per cent year-on-year growth in comparison to last year’s US$1.05 billion.  Even in October popular Indian fashion website Myntra and famous cosmetic e-commerce company Nykaa are offering their "Navaratri" sales. It's like the festive season and the sale season in India goes pretty much hand in hand. The numbers of customers that are attracted by these sales and offers demonstrate the growing significance of festivals in India’s consumer market. It is significant to note that in India, the festival offers a tremendous opportunity for businesses to reconnect with current and prospective customers. Additionally, it enables companies to introduce new products, upgrade themselves in terms of brand penetration, and make their products more attainable in the market.  Apart from this, customs and traditions related to gifting are also on the rise as the heightened spending capacity of India’s consumer's rises, thanks to the festive bonuses that employment companies provide in this period. Leading to high sales across all categories of consumer products during the festive season. As the festive season starts again in India, traders and companies gear up for the upcoming chaos. Inventory and production levels are up and brands are anticipating this season to see shifts in the purchase habits of customers. A much-welcomed development amid the pandemic. How Are Businesses Preparing For The Upcoming Festive Season? ------------------------------------------------------------- Top business companies have started to collaborate with Facebook and other social media companies to spread the word and boost festive sales further.  Many have focused on digital campaigns due to consumer emotion transitions during recent times. The millennial generation focuses a lot more on advertisements that are on social media than the ones on television. Some companies have also turned to influencer marketing to engage with their target consumers. As the pandemic is still raising havoc in the country, companies are also preparing to meet the demands of the home-bound as well as risk-averse customers.  Tips for Budding E-Commerce Platforms During Festive Season ----------------------------------------------------------- As the festive season starts in full swing, there are many ways an e-commerce business can use the festivities to its advantage. While these tips can be beneficial for any e-commerce brand, established or upcoming, new brands can make special use of festivities to attract customers towards them.  ### #1 Offer Free Shipping If there is one word that Indians are attracted to more than festivals, it's free.  Free shipping can be a factor that consumer decisions depend upon. Especially when the product offered is not unique. While people want to avoid the festive rush in the physical markets they also don't want to pay extra for the same product. As a result, free shipping can be regarded as the 'cost of entry' for a lot of retailers. ### #2 Engage Digital Media In this Instagram age, nothing spreads the word better than social media. It is important to leverage digital tools like Whatsapp, Facebook and Instagram. Brands can communicate and engage through hyper-personalised experiences in these sites and can put them to optimum use.  ### #3 Planning Is a Crucial Step While the festive season lasts up to a period of two to three months in the country you must start preparing for it beforehand. This is to ensure that your stock of products is maintained. Planning is an important step to regulate cash flow, demand and supply. To add to that during the festive season you also need to take into account the additional staff you might need or any extra resources that you might use. To provide a seamless experience to your customers you must have everything planned. ### #4 Allow Customers To pay-over-time  As an E-commerce company, you should have exclusive partnerships with banks or digital payment platforms like Salt. This will ensure that payments are made in time, without any hassle. As the pandemic still rages over the country, people are still suffering from digital payment mentors over cash on delivery options. In addition, these also help in processing international orders.  ### #5 Give the Customer a Push Now we don't mean that literally, what we mean is that Indian consumers are in a dilemma till the very last moment when they are buying a product. Flash sales, expiring discounts, pop up offers create a sense of urgency in customers that you can use to your advantage.  Conclusion  ----------- India is a country where purchase decisions are mostly propelled by sentiment. The holiday season comes with a big bonus (apart from the one that comes in your bank) of reminding your customers about Indian culture by correlating it with your products. Festivities give you a very good recourse to reconnect with your current and prospective clients and customers.  As a brand, you can plan out constructive marketing strategies during the festivals that will enable you in rendering a better connection with your clients. For more financial advice for businesses, head over to the [Salt blog](https://salt.pe/blogs/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FinTech Reaching To The Tier-2 and Beyond Cities In India Author: Ankit Parasher Published: 2022-01-08 Tags: fintech, India, tier 2 cities URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641625425406-compressed.png) Financial institutions and traditional banks have always viewed technology as an enabler to business growth and propositions rather than building new business propositions themselves. However, Financial Technology (Fintech) companies are changing this role by utilizing digital technologies to make new business propositions and target new market sectors, which were previously not possible. ### Fintech: A Convergence of Financial Services and Technology Fintech, in its truest form, is the application of technology to provide new financial services and products to new market areas in an economically viable manner.  From the perspective of a business model, the Fintech sector is marked by tech companies that are either looking to partner with incumbent banks and financial institutions or disintermediate based on strategic narrative and market landscape. Therefore, Fintech is becoming more and more of an important focus for all the key stakeholders in India’s financial services sector - traditional banks, regulators, investors,  payment service providers, and many more Fintech players.  Powered by advanced data, analytics capabilities, near-zero processing costs, and asset-light platforms, Fintech companies are complementing and, in some cases competing head-to-head against traditional banking and financial services institutions. ### Factors Driving the Growth of the Indian Fintech Sector India remains one of the largest markets in the world where Fintech companies have come together strongly, and the reasons fueling this growth of the Indian Fintech industry in the medium to long term are: **​Innovation in Technology and Data** - Big data and detailed analytics offer tremendous potential to Fintech companies for understanding the needs of customers and providing more personalized products and services while also driving operational cost efficiencies that give rise to alternate and perhaps better business models. * **Asset light models with near-zero transaction costs** - Due to advances in technology and adoption of cloud-based services are leading to asset-light models that have almost zero unit costs at the transaction level, which enable subsidization without building scale. For this, Fintech companies are passing on the benefits of lower transaction costs to end-users, thereby improving their propositions. This aspect is further accentuated by the legacy free environment that most Fintech companies operate in, thus relying on cloud services to align their overall cost structures. * **Regulatory Tolerance Towards Fintech** - Regulatory authorities in India, including RBI, IRDA, and SEBI, has adopted an accommodative stance towards the emerging Fintech sector without bringing forth prohibitive guidelines that overregulate the sector. * **Big Sector Banks and Insurers Lagging Behind in Market Growth** \- On an overall basis, Public sector banks and insurance firms are slowly but continuously losing market share to private insurers and banks, respectively, all because of their inability to outgrow the market. In the coming future, new private sector banks, including new differentiated banks, will probably be the beneficiaries of these emerging market opportunities. In addition to differentiated banks, Fintech players in the payment, lending, and investment management sectors are also likely to benefit from low penetration and focus on nice areas. Move of Fintech towards Tier-II Cities and Beyond ------------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641625679969-compressed.png) Source: India Briefing The boom of Fintech has provided a dramatic shift in the way we transact in India. With the country moving towards digitization, Fintech companies have also erupted from beneath India’s surface. Meanwhile, existing players are seeing an increase in their users. Although most of these users were previously restricted to only the Tier I cities in the country, they’re not anymore. Fintech companies are ready to turn their attention to Tier-II cities and beyond in order to penetrate deeper into the country. Being highly untapped markets with big potential, these cities bring a more prominent opportunity for the players. Startups that have raised funding have also spoken about the need to pay more attention to the smaller markets. Take, for instance, Paytm, which made its app [available in regional languages](http://www.uniindia.com/paytm-app-now-available-for-users-in-11-languages/business-economy/news/1498344.html) to facilitate transactions from smaller cities.  Another example would be Coverfox, the insurance company that [raised $22 million US Dollars in Series C funding](https://inc42.com/buzz/insurance-startup-coverfox-raises-22-mn-series-funding-from-ifc-transamerica-others/) to expand insurance coverage into Tier-II and Tier-III cities. The smaller cities have a huge population, and they’re ready to adopt digitization. The spending power and amenities of these cities are also rising, which is further attracting players to cater to them.  There exists a huge market opportunity in Tier-II and Tier-III cities, and the big players are aggressively looking forward to expanding there.  Conclusion ---------- The opportunity for Fintech companies lies in extending their market reach, focusing on and reshaping customer behavior, and implementing effective and long-term strategies in the financial industry.  Fintech companies will have to create a more diverse, stable, and secure financial services landscape since they are less homogenous than incumbent banks. And the answer to this problem can be found in the expansion of their market network while also working on additional equally important issues like improving quality and reducing costs at the same time. Tier-I has for a long time been the main focus for almost all big Fintech companies, but Tier-II, Tier-III cities, and beyond have so much pure market potential in them, which these companies need to realize and tap into as fast as they can.  By doing so, the Fintech industry will be able to reach heights hitherto unseen and make a far bigger and powerful impact than ever before.​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Art of Buying Art: Why do big corporations buy art? Author: Udita Pal Published: 2022-01-08 Tags: corporate carrd, buying art, corporate art, luxury art URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/art-1-1641625402793-compressed.jpg) Walk inside any big company lounge. You will be impressed by the decor, the interior design, and most of all, the great artwork hanging from the walls. Is the art there to impress strangers like you and me? Or is there some intrinsic rationale behind this extravagant expense? There are several obvious reasons why companies buy art and want to decorate their walls with visuals rather than stock photography and inspiring quotations. But, in the last few decades, the number of huge organizations building significant art collections has skyrocketed, and it's not only because they need to cover empty walls. The practice dates back to the Italian Renaissance, where Banks were regarded as connoisseurs of the Art, having breathtaking art collections among their holdings. Corporate art as décor and a status symbol over time and began to spread steadily across companies. It is estimated that in the 1990s, approximately half of the Fortune 500 firms and an additional 2,000 companies across America and Europe were developing [corporate art collections](https://www.bbc.com/news/uk-scotland-scotland-business-25737574). ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/art1-1-1641625424814-compressed.jpg) Why is it crucial to buy the perfect piece of art? -------------------------------------------------- The choice of the collection is usually by the owner or CEO of the company. Still, they are immediately dispatched and managed by experts and advisors, many of whom have art history backgrounds and curatorial credentials. These professionals assist in creating a collection that is designed to portray the company's vision, mission, and values. It can be viewed as continuing marketing and communications initiatives to develop or influence their public image over time. ### How does Art help the Corporation? * To inspire Employees: Art in the workplace reduces stress, boosts creativity and productivity, boosts commitment, broadens employee appreciation of diversity, and fosters dialogues. Employees are sometimes the most expensive item in a company's budget; therefore, it pays to keep them happy and engaged. Corporate art humanizes the workplace and provides context for the company's employees' lives and actions. It demonstrates the organization's credibility to clients and visitors and how the company values its workers.  * Serving the Clientele: Art on the walls can also benefit the clientele by delivering the company's vibe. Art and commerce are inextricably linked. Connecting a company's art program to its business activities can significantly benefit gaining new customers and retaining existing ones. Many companies have bought art over the last 20 years to complement their culture, brand, and viewpoint. * Investing in the local community: Companies may buy and showcase the work of local artists to invest in and nurture support in their communities. Putting money into the locality while improving that community and creating goodwill is in the company's best interest. More and more businesses see their collections as part of their social responsibility policies—-a way to interact with the larger community spread the proceeds, and possibly reduce the likelihood of a bourgeois revolution.  * Art as a form of Investment: Art is a risky investment that may or may not pay off in the future. But unlike buildings, corporate art isn't necessarily going to deteriorate over time. Most businesses are not buying art to resell it for a profit a few years later. They prefer to keep their work for longer periods, making it easier for artists and galleries to sell to them. However, they occasionally sell masterpieces, as when German Commerzbank acquired 65 million pounds for a single Giacometti painting at auction in 2010! * Enhancing the Company's image: The art displayed brazenly on the wall reveals information about a company's taste, financial situation, community ties, and appreciation of the connections between business, design, and the fine arts. The art on the walls can reveal how the company wishes to be recognized. Artwork in a greeting area, waiting room, or meeting room helps visitors and clients feel at ease by creating a sense of comfort. It demonstrates the company's performance and promotes a forward-thinking and dynamic corporate culture. Sometimes companies display a whole collection of museum artwork for serving their highest clientele to maintain the brand image. #### Can investing in Art be considered a way to save taxes? The tax procedures that some corporations utilize to acquire art are quite interesting. Purchasing pricey art might be a method for postponing or even avoiding taxation for businesses. Art is frequently considered a business expense. So every hundred million dollars spent on art is a hundred million dollars that aren't taxed, which has the effect of discounting art purchases just like it makes other corporate purchases. But whether companies indulge in such a practice cannot be claimed for sure. ##### Conclusion Art is considered to be an efficient yet lucrative business practice. Increasingly so with companies adopting out-of-the-box ideas to innovate their work. For more financial insights and ongoing finance trends, visit our blog at [Salt](https://salt.pe/blogs/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Reasons Why This Decade is for Fintechs in Payment Author: Ankit Parasher Published: 2022-01-08 Tags: fintech, fintech in india, fintechs in payment, payments fintech, fintechs URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641625055304-compressed.png) The last decade saw India becoming one of the biggest hubs for fintech startups globally and how fintech transformed the way businesses and people avail banking and financial services. There has been a tremendous confluence of technology and finance to bring about fintech services such as video KYC, paperless onboarding of customers, card-less cash withdrawals, ‘tap and pay’ via mobile.  A report by FICCI and BCG posits that the fintech sector will grow to a valuation of [$140-$150 billion](https://yourstory.com/2021/04/fintech-offerings-backbone-india-banking-sector/amp) in the next 5 years. Let us delve a little deeper into why this decade will belong to fintech in payments.  ### Fintech and Banking: A Collaborative Relationship The last decade witnessed the shift from the physical to the digital, while hybrid banking seems to be the trend in the current decade. Banks and Fintechs are all for a [collaborative relationship](https://salt.pe/2021/07/29/fintech-and-banks-partners-in-change/) rather than a competitive one. Since the [onset of the pandemic](https://salt.pe/2020/07/18/how-covid-19-will-change-the-fintech-world/), the fintech and the banking sector seem to have entered into an evolution stage. The financial institutions are seeking partnerships with technology companies to lend agility and efficiencies to their existing systems, embrace innovations, and enter new markets and product segments. On the other hand, fintech companies are all in for joining hands with financial institutions to extend their client network, gain more industry and regulatory knowledge, expand into new markets in order to go mainstream. No wonder the rise of fintech has led to changes in consumer behaviour and disrupted the traditional financial and insurance industry.  #1 The Next Step Towards Financial Inclusion -------------------------------------------- The current collaboration between the fintech companies and the banking sector has led to the democratization of financial services taking banking to the remotest corners in the country. Mobile banking applications have made fintech services accessible to the unbanked. The easy onboarding and the superior user experience that fintech applications offer are making more and more people join the digital revolution in banking across geographies and demographics.  When compared to traditional financial institutions, fintech companies can often deliver the same solution at a lower cost by using technology to automate tasks. Today, you can easily find no-fee bank accounts and no-commission stock trading apps while mobile payment UPI apps have become the norm even in small retail transactions. Fintech companies are helping to lift people out of poverty and creating a more financially inclusive world by providing access to basic financial services such as mobile money and e-wallets.     Fintech is revolutionizing financial services in continents like [Africa](https://salt.pe/2020/08/13/fintech-in-africa-how-africa-is-turning-into-the-biggest-investment-pool/), where companies like M-Pesa and Tala are changing the way people manage their money. M-Pesa has already [assisted 194,000 Kenyan households, or 2% of the population, to escape poverty.](https://salt.pe/2020/10/09/the-ultimate-guide-to-fintech-in-africa/) #2 Instant Payments and Lending  -------------------------------- The penetration of affordable internet services in the cities and hinterland in India is one of the major reasons people have started looking up digital payments as an option. The last decade had Indians depending majorly on cash payments. Only after demonetization and governmental digital initiatives did we see the rise of fintech payment solutions. Covid-19 and lockdown restrictions acted as the final catalysts towards this digital shift.  The shift from B2B to B2C-focused payments solutions made fintech organizations innovate further to deal with KYC bottlenecks and bring in new technologies for instant payments and cash transfers across borders. No doubt, the current fintech solutions have changed the way people shop and spend, thereby increasing accountability.  Fintechs have collaborated with banks and NBFCs to provide various lending platforms that provide instant loans and salary advances to their customers customizable according to their needs and preferences. Artificial Intelligence and data analytics are used these days to assure the creditworthiness of the borrowers across multiple data points before a loan is granted.  ### #3 Neobanking: A Tool for Personal Finance Neobanks or digital banks without any physical branches are fast gaining the trust of the masses post-pandemic. Such banks provide a wide array of affordable financial services to the customers such as savings accounts, fixed deposits, instant loans, mutual funds, among others which can be accessed online via a website or a dedicated app.  Neobanks such as [Salt](https://salt.pe/) simplify how we manage our money, whether our finances or investments. Financial education and literacy are being promoted by revolutionary startups like Chime and Robinhood, which are building the future of financial tools and promoting financial education and literacy. More people will reduce their debt, understand the importance of budgeting and saving, and invest for the future if their financial literacy improves. ### #4 The Decade of APIs, Voicebots, and Advanced Tech   API-led banking is extensively being used by the government and banking institutions to promote digitization in B2C and C2C dealings. To perform their functions digitally and seamlessly, banks need to integrate their services with a third-party app. APIs act as the connecting bridge between banks and these third parties to connect safely and augment each other’s offerings in real-time. An example of this can be the mobile wallets used to send and receive payment requests to banks during a transaction.     Technologies like AI/ML(Artificial Intelligence/ Machine Learning) are employed in complex financial activities like analytics, lending, and fraud detection. Fintech offerings, such as voice bots or voice assistants, interacting with customers using voice recognition technology based on AI and natural language processing will soon replace the existing chatbots in banks. Other technologies such as thumb impressions to validate payments, biometric authentication, Iris, face and voice recognition as passwords are already being used to strengthen banking processes in India.  Earlier, large corporations used to have an advantage when it came to utilizing the most recent technological and financial tools. In today's world, this is no longer the case. Even a solopreneur can now use some of the tools that the big companies use, such as Square and Stripe for payment processing or Xero or QuickBooks for accounting. Innovative fintech products allow [small businesses](https://salt.pe/2021/08/17/6-helpful-tips-to-organise-your-small-business/) to expand their services while increasing efficiency and scale. ### #5 Safe and Secure Transactions  Some people believe that when it comes to security, fintech services aren't very trustworthy. This, however, is simply not the case. Traditional banks and financial institutions, on the other hand, may be more susceptible to security issues as a result of their slow adoption of new technology and cybersecurity measures. A single cyberattack can render the entire functioning of a bank useless given its centralized nature. However, this isn’t the case with fintech applications that prioritize the privacy of information and the security of transactions.  Fintech firms ensure that every transaction made on their platform, including all customer data and personal information, is secure. Many fintech organizations have introduced ground-breaking features that are better at protecting users than ever before. From instant spending alerts to location-based security, there's something for everyone. Fintech firms do a decent job of keeping you and your information safe. Fintechs, soon, will play a critical role in supporting long-term economic growth in terms of job creation, investment inflows, innovation, thought leaders, and laying the groundwork for digital talent. The sector has risen to become one of the most dynamic in the economy. Several fintech products will find mainstream adoption shortly, thanks to offerings backed by blockchain technology, artificial intelligence, machine learning, and data analytics. Given the current rate of innovation, a product that has yet to be released could become the foundation of certain banking services within the next ten years. ​​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Import Export Code (IEC): Importance, Benefits and Process to Register Author: Ankit Parasher Published: 2022-01-08 Tags: export/import, Import Export Code, IEC URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641623574655-compressed.png) The majority of businesses are expanding their services and products by bringing them to the worldwide market, including operations such as importing and exporting. Because overseas transactions fall within the category of business activity, a national’s government's requirements and regulations must also be observed. In India, one such criterion is the Importer – Exporter Code, obtained before starting any online transaction. ​[According](https://www.dgft.gov.in/CP/?opt=iec-profile-management) to the Government of India, the Importer-Exporter Code or  **IEC** is a key business identification number that is mandatory for export from India or Import to India. [The Foreign Trade (Development and Regulation) Act, 1992](https://www.cbic.gov.in/htdocs-cbec/customs/cs-act/formatted-htmls/cs-fortrade-regulation), applies to the registration of the code. The Directorate General of Foreign Trade (DGFT) issues and assigns it as a 10-digit unique number. The IEC Registration Certificate is the most important document for every business that deals with imports and exports. Any corporate entity, including individuals, can register for import or export registration in India. Importer–Exporter Codes are not required to be renewed because they are assigned and awarded with lifetime validity, i.e., until the business ceases to exist. The application for IEC Registration is submitted to the DGFT online, together with the required papers. However, an [IEC is not required for service exports](http://importer/%20Exporter%20Code.%20https://taxpotter.com/importer-exporter-code) unless the service provider receives incentives under the Foreign Trade Policy. Importance of IEC ----------------- Importers and exporters must apply for IEC registration to import and export products and services. Without the IEC, no one can engage in the import/export industry. No person can make exports or imports without obtaining an IEC unless they are specifically exempted. The purpose of supplying the IEC code is to maintain track of and record all of a company's operations that engage in international business (10-digit Number). With the rise of globalization, there are many cross-border commercial options—the Import Export Code registration aids a person to take advantage of these opportunities. Hence, the IEC code is extremely important for all businesses to function seamlessly in the international forum. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641623649642-compressed.png) Benefits -------- * ​**Seizes the International Market:** Import Export Code registration is essential for import and export businesses; it allows individuals to tap into the global market, improving and progressing the business-standard. * **A Starting point for foreign transactions**: It is the primary document necessary for starting international dealings. * **Improves the quality of business**:  IEC registration aids in the maintenance of business relationships and the improvement of business quality by expanding worldwide reach. * **Imposes control over illegal Trading**: To receive an IEC Registration, you must provide valid and accurate information. The department cannot issue an IEC registration without receiving complete and accurate information, limiting the illegal trade of commodities. * **Additional benefits**: IEC has lifetime validity. Businesses also are not required to renew their registration. Certain benefits are also available from areas such DGFT customs, Export Promotion council, etc. Furthermore, businesses can obtain a refund of taxes paid while exporting goods. ### Process of Registration A company can apply for the IEC code: proprietorship, partnership, limited liability partnership, limited company, trust, HUF, or society.  Before the application, the company must have a PAN, a bank account in its name, and a valid address. On issuing of the IEC, the DGFT may physically verify the address. Before applying, please have your PAN, bank account information, and firm information handy at the time of registration. * ​​In the case of offline registration: The applicant submits an IEC application to the Directorate General of Foreign Trade's nearest Regional Authority (DGFT). The applicant must complete and submit the relevant forms (Form - ANF2A) (Aayaat Niryaat). * A single IEC will be issued for a single Applicant's PAN number. * In the case of online registration: An Applicant can get ANF2A in PDF or Word format from the website. Appendix 18B must be attested by the bank authorities on the letterhead, together with two passport-sized photographs. After the procedure is completed, an application is assigned an IEC number (10 digit    number) valid for all of the company's branches and divisions. Conclusion In this age of globalization, every corporate entity seeks IEC Registration to expand its operations internationally. By obtaining the Import Export Code registration through proper compliance and procedures, business owners intend to develop their firm internationally. #### For more such informative blogs and other seamless financial help, visit [Salt](https://salt.pe/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## From Madras to Chennai: Business in the Gateway of South India Author: Ankit Parasher Published: 2022-01-08 Tags: Business, Chennai, Madras, South India URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641622971092-compressed.png) Chennai has forever been known for its local textile production and spices, which drew the British companies closer to the city. Although British traders were first attracted to the city as a probable economic centre in the early 1600s, the ties of international merchants to the businesses in Madras had been knotted in the 4th century BC itself when business relations were being established between various merchants all across Western Asia. ### The Journey from Madras to Chennai Chennai was known as Madras until 1996 - the shortened name for Madraspatnam. It was inhabited by Armenian and Portuguese traders in the 17th century, after which the British arrived and set up a fort and a factory. At that time, cotton weaving was the local industry.  Madras gained prominence in the British network of maritime trade routes that were used to export locally produced chintz and cotton, different spices and other imported cargoes from the east from the 17th century onwards.  For centuries, Madras was the pivotal port in the trading routes that crossed the Bay of Bengal. This role got it the name Gateway of South India. It has for long served the dual purpose of a resting place for merchants from the Spice Islands on their journey to the west and as a significant centre for economic and cultural activity.   Chennai: The Cultural Capital of South India -------------------------------------------- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641623017521-compressed.png) Located on the Coromandel coast in Southeast Asia, Chennai is the capital of Tamil Nadu. Besides being a central commercial hub, Madras grew into a melting pot where different cultures and religions came together to give it its unique culture. Indian, Armenian, British, Portuguese, Dutch and French traders came to this major port at the Maritime Silk Roads for trade activities. Also, they exchanged cultures that gave shape to the culture of the city. The city is home to over 600 Hindu temples with distinct 17th-century porticos, neo-classical British Architecture or Indian Mughal style, or an amalgamation. Also, the first British Church was built in Madras.  Southeast India has a lengthy and well-established history of trade and exchange with many countries. Chennai also witnessed a treasure of business ideas being exchanged while experiencing a well-endowed fusion culture that made Chennai a universal business centre. In this way, the city's expansion of business and trade was pushed by maritime trade and stimulated by the global interchange of products and the multicultural public.  Today, Chennai hosts the annual Madras Music Season - a sizeable cultural event, a centre for theatre and classical dances, such as the Bharatnatyam. It is home to India’s second-largest movie industry Kollywood. The Current Economy of the Gateway of South ------------------------------------------- Many industrial and technical-oriented businesses flourished in Chennai, which helped shape it into the leading metro city today. From Madras to Chennai — the city's industrial landscape has undergone evident changes in the last few decades. From the early 1950s to the 1980s, the city was prominently active in business areas such as engineering, manufacturing, and automobiles and production. It is currently witnessing a boom in new-age entrepreneurship and startups in artificial intelligence, aerospace, banking and finance and Software As a Service (SaaS). The Industrial Base: Chennai is divided into four broad zones, namely, North, South, Central and West. The region of North Chennai is predominantly an industrial area, while the Southern and Western regions are also undergoing rapid commercialization. Information Technology (IT) and financial services, especially fintech, are the reasons behind the active commercialization of the state. The major industries in Chennai include technology and IT services, hardware, automobile, manufacturing, and healthcare. IT services: It is the second-largest exporter of software, IT and IT-enabled services. The automobile industry in India is based majorly in Chennai alone. The major names in software and software services in Chennai include Cognizant, Accenture, Hewlett Packard Enterprise, and Wipro.   Electronics and Automotives: Chennai has evolved into an electronic manufacturing hub in recent years. MNCs like Dell, Samsung, Cisco, and Motorola have set up their manufacturing plants here. With a [60% share](https://theenterpriseworld.com/gateway-of-south-india/) in automotive exports, it is often tagged as the Detroit of South Asia. It has a 30% share in the total electronic manufacturing in India.  Banking and Financial Services: Bank of Madras, one of the oldest banks in Indian history and was started by the British in 1843, is the first modern bank in Chennai. Being the hub of economic activity, Chennai houses banks such as Arbuthnot & Co, Bank of Chettinad, Bank of Madurai, etc.  Aerospace: Chennai Aero Park will become the largest integrated aerospace ecosystem in the world. It integrates Aerospace design, manufacturing and maintenance units into a single park and marks India’s entry into the global aerospace scene. The park will facilitate designing and manufacturing aircraft for civil and defence needs in the near future. Health Tourism: The health capital of India - Chennai has the 36th largest urban area in the world and is one of the most visited cities in India. In South India, Chennai is considered one of the biggest centres for education, culture, and economic activities. Health Tourism, a unique amalgamation of tourism and healthcare, is a unique feature of the state’s tourism industry. As much as 45% of the health tourists head over to Chennai in India. Finance as a software service: For ten years, the city harboured many unconventional enterprises, including SaaS (Software-as-a-service). Today, Chennai is considered the SaaS capital of India, as most of the company startups in Chennai are SaaS companies which constitute a fourth of the national figure. Chennai has lent support to several advanced companies like Zoho and Freshworks, which have become the biggest success stories and business ideals in the world of Indian SaaS companies have earned millions of dollars in revenue.  As India is on a journey to make Fintech applications more approachable to people, the Tamil Nadu government is on a path to create an ecosystem in FinTech through varied projects to attract domestic and international financial institutions and make Chennai one of the leading global financial services centres. It will be developed with the crucial supporting infrastructures and networks to accommodate financial structures such as banks, neo banks, non-banking financial services, etc, to create a strong individual financial market. The skilled and trained in Chennai and the government are coming together to regulate ways to create an ecosystem. To name a few, leading fintech companies solely based in Chennai are- BankBazaar, Vivriti Capital, Funds India etc.  The definition of Business in Chennai has changed over the years. There has been a focal shift in the matters of startups from trade and textile production to Neobanks and fintech companies. The focal shift has enhanced the multicultural foundation in Chennai. The heady mix of cultural, social, and financial factors has lent Chennai the inertia to withstand any risk and keep attaining future business milestones.​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Future of the Diamond Industry Is Always Bright - Here’s Why Author: Ankit Parasher Published: 2022-01-08 Tags: awareness, diamond industry, consumer trends URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641622356637-compressed.png) Diamonds have been a quintessential part of our special moments - some expressing love while others celebrating success. The shining stone is more an emotion today than an asset. A symbol for our memories, bonds, commitments, and accomplishments. As precious metals, gold and silver have never been able to evoke such a connect, as diamonds do - the signposts we create in our lives as reminders.  The diamond industry thrives and drives itself ahead on this consumer sentiment but the pandemic had somewhat staggered its growth in 2020 and later, post the second wave of the virus in April 2021.  Has the pandemic actually been able to mar the demand for the ‘forever stone’? If yes, will the industry be able to recover back to its earlier standards? What does the industry feel about the current phase? Let’s explore these questions in this article.  ### The Situation so far  The diamond industry supports around a million people in India alone. During the pandemic, the world was forced into lockdown which led to closing down businesses. Both the demand and supply sides were impacted - while the diamond industry was grappling with issues like shortage of labor, lack of credit, dwindling revenues, reduced demand, and the overall future of the diamond industry, the consumer pushed their expenses more towards essentials while postponing events until things got better. The 2020 timeline evinced the polished-diamond markets sliding further south. The rough imports for diamonds were significantly less for the period of April, May, and June, from a usual $1 billion to $100 million sum. Global diamond production was estimated to be reduced by 23 million carats. Despite these concerns, the industry was soon showing signs of recovery in Hong Kong, China, and Europe, while India followed suit as the wedding season arrived in Q4 of 2020.  The period from October to March recorded one of the healthiest growth in the diamond industry in terms of demand and profitability until the arrival of the second wave in April and May this year. The year proved to be a fabulous one for the industry with huge profits and all-time-low inventories. Prices were up by year-end in 2020 and the demand was higher than the supply. So far, 2021 has been successful in carrying forward the high demand from the previous year except for a slowdown in Q3.  Why does the Future of the Diamond Industry Remain Secure in India?  -------------------------------------------------------------------- There are numerous valid points that support the case of the upward trajectory for India’s diamond Industry. Firstly, the credit facilities available to diamond merchants are vastly based on a great trust network.  The industry handles millions of dollars worth of diamonds each year in Mumbai and Surat - the two major hubs for diamond manufacturing in India - for which the trust factor has to be huge. The trust network is further extended to include end retailers in China and America. Such a mammoth trust network ensures better risk management and risk-taking capabilities.  Indians are known for their entrepreneurial spirit globally, thanks to the excellent polishing skills of the workers here. Their skills go beyond standard cutting and include loupe-examining even small stones to get the maximum business out of production.   The Indians carry forward the legacy of diamonds via the family business model that has proven to be highly successful for the Indian community. Indians can better manage their conglomerates by placing different family members at several branches dispersed geographically across the globe.  Indian diamond industry has its major focus on smaller to mid-size diamonds. There is ample international demand filtering into India owing to the established trust network and the capability of the businesses to pay the best prices and deliver the best results. The Indian diamond industry has the potential to reach $60-70 billion in the next five years or so. At the same time, the lab-grown diamond market might see growth from $1 billion to $2-5 billion soon.  The industry is in league with countries such as Hong Kong, Thailand, and China.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641622463927-compressed.png) Emerging Consumer Trends in 2021 Favoring the Diamond Industry -------------------------------------------------------------- The current statistics make it amply clear that the consumer’s connection with diamonds remains fundamentally unshaken. The diamond industry is being impacted much by consumer demand than the recent pandemic that shook the world businesses. On the contrary, industry pundits have a very optimistic view about the post-pandemic trends. Colin Shah, Chairman at GJEPC, says, _“In India, sales would be driven by factors like postponed engagements and marriages, festivities, and other gifting occasions. Moreover, consumers now have disposable income, which was earlier spent on traveling and vacations. Some of this will get diverted to jewellery.”_   There is an increased demand in Q4 owing to the festival and wedding season and the huge pent-up demand and need-based demand. Even though Indian buyers have become conscious of their spending in the post-pandemic times, [research from Forevermark Forum](https://timesofindia.indiatimes.com/life-style/fashion/luxury/fashion/the-future-of-diamonds-is-bright/articleshow/78827969.cms) revealed that Indians still have a strong appreciation for diamonds, which continues to remain courtesy of their love for jewelry. The demand is expected to double in the next 4-5 years as jewelry would continue to remain the preferred gifting option. Also, the demand for daily wear and minimalistic diamond jewelry is expected to explode in the coming days as choices shift towards functionality and refined design sensibilities. [Jewelry brand Tanishq](https://timesofindia.indiatimes.com/life-style/fashion/luxury/fashion/the-future-of-diamonds-is-bright/articleshow/78827969.cms) has been seeing an 85% recovery over the last year at an overall level and more than 70% on buyer level.  Also, the higher income group has accumulated huge amounts of unspent income as travel and vacation plans remain suspended, weddings have become smaller due to COVID restrictions, and the savings rate is high across the middle and higher class. These reasons are further pushing up the demand for diamonds. Customers, too, like to do their homework before stepping into the stores, leading to high conversion rates.   Globally, the numbers show a similar picture. A [De Beers report](https://blog.sarine.com/the-state-of-the-diamond-industry-in-2021-recovery-is-underway) found that 60% of men in the US planned to buy diamonds for their partners, and around 33% of women planned to buy diamonds for themselves. De Beers also recorded a 12% increase in the sale of rough diamonds in 2020. The signs are positive and point towards a bounce back led by stronger growth in 2021-2022.  Consumers are showing signs of adapting to the new normal and not abandoning diamond purchases at all, confirms [an IDEX report](https://en.israelidiamond.co.il/wp-content/uploads/2020/11/2019_DiamondPipelineByPranayNarvekarAndChaimEvenZohar.pdf). The report forecasted that the sales for polished and rough diamonds would be higher in 2021 than the numbers recorded in 2019.  _According to De Beers’_ [_Diamond Insight Global Sentiment report_](https://www.nationaljeweler.com/independents/retail-surveys/9096-5-things-to-know-about-de-beers-holiday-insight-report)_, China is leading the world in the restored consumer sentiment, with 85% of consumers saying they were settled into their new routine. In comparison, the consumer sentiment stands at 65% and 63% for the US and India, respectively._  The diamond industry is evolving, and innovations are underway that reduce the market’s dependency on rough diamonds alone. Steadily, Lab-grown diamonds are gaining acceptability as awareness about the same spreads across the consumers. A lot of corporate capital inflow and government policy initiatives are making sure the industry’s future remains bright despite the pandemic or other unfavorable events. The shift to e-commerce portals is driving another revolution in the retail diamond industry, blurring the boundaries and changing the way how jewellery business is conducted.  Diamonds, surely, are forever (physically as well as commercially)! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Finding Buyers and Partners For Your Export Business Author: Ankit Parasher Published: 2022-01-08 Tags: export business, Import/export business, business and partners URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641621428647-compressed.png) It is an old adage in business, _‘the product is only as good as the sales it generates_.’ Sales are a direct function of the kind of product you finalise for your export business and the availability of buyers in the market of your choice.  Finding the availability of buyers for your product in export import business is a daunting task in itself. A loyal clientele keeps a business moving forward by helping it to generate sales and build reputation overtime to bring in more such customers.   How to Find Buyers For Your Export Business ------------------------------------------- Once the product to be exported has been finalised, the first consideration for any exporter is to settle on a market choice for their export product. The target market would largely determine the direction of your search efforts towards finding the right audience for your products.  The next step is to find prospective buyers within the market for your export business. There are several ways of zeroing in on your target buyers - both online and offline. Let’s talk about them:  ​**Offline Methods of Finding Buyers**  These traditional routes of finding buyers for your export products in a foreign country are tried and tested. They might require additional effort and cost, but they have a greater chance of yielding results:  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641621495185-compressed.png) ### #1 International Trade Fairs and Expos Almost all countries conduct several trade fairs that become the meeting place for millions of buyers and sellers in a year. A trip to such a trade fair or expo in your target country can reward you with several signed deals. The prospective buyers can be shown samples and demonstration of the working at such fairs. You could also use this opportunity to answer queries and sign deals to forge long-term relationships with your buyers.  Canton Fair, the largest trade fair in China, is one fine example of the same. You can also attend trade fairs held within the country itself if flying to the other country is not an option. India hosts several such international trade fairs. You can find information regarding such events on the FIEO (Federation of Indian Export Organisations) and Export Promotion Council websites.  ### #2 Chambers of Commerce Chambers of commerce or trade associations constitute a large network of companies and businesses. They are found in every country across the globe and can be a vital source of information about the importers of your product in the country of your choice. You can also register on the chamber’s website to become its member. In this way, you can get visibility among the buyers.   ### #3 Export Promotion Councils In India, there are 14 Export promotion Councils and 5 Commodity Boards that come under the ambit of the Ministry of Commerce and Industry. These export Promotion councils are set up to promote the country’s exports, and exporters can help find foreign buyers. Besides providing information, these promotional councils organise delegation visits to other countries f explore market opportunities or attend trade fairs.   ### #4 Market Research Companies For any exporter to begin trading, information is the first essential tool to strategise his exports. For gathering this information, research becomes a vital process. There are several market research companies set up for the sole purpose of specific research and studies. These companies maintain business directories of importers that can be accessed after paying the fees.   ### #5 Third-Party Resources Besides the above direct sources, every country has a network of third-party agencies that can help you find your target customers, guide you through cultural and linguistic barriers, thereby helping you generate sales. Such agencies include state-sponsored trading companies that import goods, buying agents and wholesalers that resell the imported products in their home country, commission agents who act as a link between importers and exporters, or your salesperson in the target country finds buyers for your products and helps you finalise sales.  ​**Online Methods to Find Buyers for Export Businesses** In this internet age, the online mode of connecting with your buyers has become as vital as the offline channels. You can reach or connect with your target buyer audience via several online ways, such as: ### #1 Social Media Social media such as Facebook, Twitter, Instagram, Linkedin, Youtube, and Reddit have become the greatest medium to stay connected with the world today. For business, it proves an important ally in your search for foreign prospects that would be interested in your products. Facebook groups can prove an important virtual meeting place where international buyers and sellers can collaborate and strike deals. An export business having a social media marketing strategy in place is better placed to transact sales internationally without incurring high costs.  ### #2 Blogs and Websites Set up your website or blog, which has a well-detailed catalog of your products containing their up-to-date information along with the manufacturing processes you employ. The information must be supported by visual tools such as photos, charts, graphs, etc. You need to design the website or blog in a professional and attractive manner and make sure it is SEO optimised to ensure better visibility in google search results. Google Search Console and Search Engine Marketing are two effective tools that you can use to enhance your website or blog’s visibility. ### #3 B2B Websites and Portals B2B websites are another effective online visibility tool that can help you connect with a wide customer base. Sites such as IndiaMart, TradeIndia, Exporters India, Alibaba, Global Sources, Tradewheel, etc., attract millions of buyers and sellers from across the globe. Alibaba is the third-largest retailer in the world after Amazon and Walmart. Such companies bring together verified buyers and sellers in exchange for a fee.  ### #4 Email Marketing If you have shortlisted a list of prospective buyers, email marketing can help you sort your export business customer search worries. You can develop your customised email marketing strategy and send emails and newsletters about promotions and exclusive deals to potential buyers. Emails offer a more personalised touch than a social media post and better impact the audience. Build your list or borrow from the importers’ database of the relevant country. Just make sure to follow the relevant laws on business emails and not spam their inboxes unnecessarily.  Quick Tips for Ensuring the Genuineness of the Buyer ---------------------------------------------------- Finding the right buyers for your export business is a mammoth task, but ensuring their trustworthiness is equally significant. Once you decide on the choice of the buyer, make sure to check their authenticity by double-checking their credentials from government agencies and other third-party routes: * Use Google to ensure that the address and location provided by the buyer are the same as claimed * Keep a tab on their activity in social media apps like Facebook, LinkedIn, Instagram, etc., to assess their methods and ways of doing business * Wade through the buyer's website and read about their company, certifications, if. any, licenses, or members with government agencies. Checking the domain age of the website can be helpful to check when the website has been up. * Online checks serve as preliminary checkpoints to filter out any suspicious buyers. Once you are done with the above steps, ask your buyer to furnish certain documents such as their export-import license, certificate of membership of government trade bodies. Cross-check the same with the info you found in your preliminary checks. * Get in touch with the commerce wing of the Indian embassy in the country where your buyer resides. Ask them for the buyer verification via email. The embassy would cater to your request and report back with the necessary information on the buyer’s credibility and credit history. * You can also opt for credit insurance from corporations such as ECGC that offers insurance to Indian exporters against non-payment. The ECGC will check the buyer’s creditworthiness via its foreign channels and determine the maximum insurance cover that it can offer you for the exports you will be doing shortly.  * Besides government agencies, several private agencies conduct such verification and checks for a fee. Bureau Veritas is one such firm that specialises in providing its customers with buyer credibility reports. * The last way is to physically check the factory premises of the buyer to verify the information. This method might be impractical for most exporters but can give the highest level of assurance and help forge long-term relationships.  Key Points to Keep in Mind in your Export Business -------------------------------------------------- Besides authenticating the creditworthiness of your buyer, there are certain things that an exporter must keep in mind in transacting successful deals in the export business. Some of them include: * ​Structure your business plan well in advance, keeping in mind your capacity to meet the market demands before you begin venturing out to find buyers.  * Since yours will be a global website, make sure your website has all the necessary provisions for translating information in the language of your target country. * Make yourself aware of the customs and cultures in your target country so as not to land in trouble or offend your buyers. * Avoid working with middlemen or intermediaries to save costs and ensure safety in your dealings. If the intermediary is a trusted and recognised entity bringing in lots of business, there is no harm in transacting through them.  * Offer samples to buyers to assure them of the quality they can expect in product and business deals. Communicate and convince them about the quality and worth of the product they would be buying.  * Choose the right marketing tools - whether online or offline - to make a greater impact on the buyer. You cannot use Facebook to promote your product in China, it is as simple as that! * It is essential to understand your target country’s legal and regulatory requirements, especially in the export-import business.  * Be transparent in your dealings and build a reputation. Retain and expand your international customer base by offering them prompt customer service and efficient grievance handling mechanisms. With certain safety measures and in-depth research of the target markets and buyers, a business can attain success in a short span of time. A personal network of buyers can be crucial for the sustainability of business operations in the long run. Therefore, pay heed, take your time, and find the right buyers for your product before you commence your international business operations.  ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Manage Expenses For Internationally Mobile Teams Author: Ankit Parasher Published: 2022-01-08 Tags: international businesses, Travel expense, Remote teams, International remote teams, Internationally remote teams URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/saltblog1-21-1641624047390-compressed.jpg) Keeping track of employee expenses is often challenging, time-consuming, and tedious, as well as a huge headache for your financial department. Travel expenses, among the rest, are considered to be one of the most difficult expenses to manage. These are costs incurred during business travel. Client meetings, overseas collaborations, and international networks are crucial enablers in the business world today, and have been for a while. Teams that engage in such work are frankly the ones that keep the revenue flowing and seal deals. [90% of employees](https://www.condorferries.co.uk/business-travel-statistics) themselves agree that business travels are crucial for the efficient growth of the company. [The Global Business Travel Association](https://www.businesswire.com/news/home/20180814005663/en/GBTA-Forecasts-Percent-Growth-Global-Business-Travel) recorded a total of 1.33 trillion dollars spent on international travel, an expenditure projected to rise to 1.7 trillion dollars in 2022! According to another [report](https://www.condorferries.co.uk/business-travel-statistics), an average of 1,425 dollars is spent on each traveling employee. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/art1-1-1641624139258-compressed.jpg) ​ Clearly, efficient investment in travel expenses and formulation of efficient strategies regarding management is imperative to reap the benefits. Step 1: Before the Expense is Incurred -------------------------------------- As the saying goes, prevention is better than cure. It is always advisable to address potential challenges before they evolve into something bigger. How will the employee pay? Quite obviously, two ways in which an employee can spend money on a business trip are: * From their personal spending account * Using the prepaid company credit card While the former is a well-opted choice for small and medium enterprises, it creates much work for the financial department. It is time-consuming and keeping track of all invoices and tax receipts further complicates the process. Prepaid cards provide business owners control over employee expenditure and offer financial spending to the employees(to some extent). It's a good way of ensuring that the mobile team is sticking to the budget.  Choose an Online Platform Avoiding extra paperwork and physical invoices is always a better option. Employees may be busy and stressed on their trips and can get side-tracked, especially when spending company money. Platforms like [Salt](https://salt.pe/) offer high-quality and trusted tech for businesses to manage multiple accounts globally. It will ensure effective tracking and managing of funds. Encourage Employees to use Travel Expense Trackers Business comes first in the minds of busy employees when traveling abroad for important client meetings. They may forget to update insignificant expenses, which potentially mount up to a significant amount at the end of the trip. Encouraging employees to rely on a travel expense tracker to fill in their expenditure regularly is clearly quite helpful for the employer. Journey entries such as these will ensure smooth management facilitated by the employees even when they are on the run to grab the biggest client. Have a Travel Policy in place Costs are cut down significantly when the employees stick to their company's policy on business travels-lay out a clear plan for expense requests, approvals, and reimbursements so that employees have a clear idea. Employees contribute to fiscal responsibility for your organization when they know and understand your company's travel and expenditure policy like the back of their hands. As a result, there will be more accountability and, as a result, more responsibility when it comes to spending. Step 2: Cost-Saving than Cost-Cutting ------------------------------------- Rather than cutting down on costs, you can deploy more efficient practices to minimize costs. As mentioned earlier, business travels are crucial for a company's growth. But the company should not drain out their funds on this expense alone. Travel Employees generally travel by flight internationally. Apart from flying in economy class, there are other ways air travel expenses can be cut down. * Book early and book in bulk * Partner with Airlines to enjoy discounted airfares * Travel light to avoid excess baggage fines Travel expenses don't end after reaching the destination city. Opting for rental service for the entire duration of the stay or signing up with Uber corporate is a great way of traveling cheaply in the city. Also, public transportation over cabs minimizes costs most effectively. Accommodation * Book in advance to avoid overpriced rooms * Always prefer tried and tested hotels * Compare prices of different hotels to choose your preferred one * Specify the dos and don'ts (E.g., room service is a big don't) Meals It's better to prepare a budget for meals, as they can get quite expensive. You can encourage your employees to carry out route research and pan out affordable restaurants and expensive ones if they need to organize a meal with the client. Step 3: Reimbursement --------------------- When employees use their own money or the company's money, they have to provide expenditure records for availing reimbursement. Having a very clear reimbursement process, be it paper forms, spreadsheets, or expense software, will irrevocably reduce the mountains of emails and set expectations for employees who may be waiting on expense reimbursements.  Setting up service level agreements with employees will help you acquire the information quickly and prevent employees from sending follow-up emails inquiring about the progress of the claim. It is advisable to request the staff complete a pre-trip expense prediction before their vacation; this will push them to think about their spending. Other tips are: * Types of receipts and invoices — The format of proof should be clear—for example, a tax invoice in PDF or a physical receipt. * Timeline for filing expense claims - Ensuring that all expense claims are submitted within five working days of the end of the business trip will benefit both the company and the employee. * Expense reimbursement period — the firm must investigate the claim before reimbursement. This period of time is generally 15 to 30 days. Setting up online reimbursement, wherein employees receive their reimbursed money directly in their bank accounts, ensures efficient management of funds after approval. Cutting down extra expenses and ensuring maximum efficiency is the main motive of any firm. The methods mentioned above will help you efficiently manage travel expenses which are inevitable in any company today. [Salt](https://salt.pe/), India's trusted modern banking platform, now works across fifty countries globally to ease the financial workload of businesses. Visit the website now to explore more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How to Plan Big for your Small Business Author: Ankit Parasher Published: 2022-01-08 Tags: small business URL: https://salt.pe/blog/null ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641620121139-compressed.png) If you’re planning on growing your small business, know that being proactive now will yield results in the long run. Scaling a small business is not easy. It requires extensive effort. You will have to work on your customer base, sales, and marketing and plan for your overall growth. If you’re puzzling over how to plan big for your small business, then here are some initiatives you can take to grow and keep moving forward.  ### Strategise & Set Goals The first and most important step when you plan big for your small business is strategising and setting goals. Planning and setting goals is a great way to clarify your focus, measure progress, and strategise scalability.  Creating a strategy for growth, organising your business, and setting goals towards long or short-term goals, single-targeted tasks, or even business plans can aid your business in reaching new heights. ### Enrich Customer base & Customer Retention  One of the trying tasks, when you are trying to plan big for your small business is getting those new customers. While generating customers can take time, you can build a customer base by identifying your target market, building a potential customer list, making contact, and follow-up and continue following up. Additionally, retaining customers plays a significant role in the growth of a small business. You can encourage customers to return by providing great products and services, encouraging customer feedback, addressing complaints efficiently, and offering consistent accessibility. Customer retention will result in regular income, and happy customers would provide compelling word-of-mouth marketing.  ### Manage Finances As a business owner, when you plan big for your small business, a core exercise is managing and keeping track of your business finances. Keeping track will let you know where your business stands financially and give you an idea of how you could strategise to manage your finances better. Always spare a little cushioning in your budget for contingencies. Manage costs, but don’t cut costs in ways that affect your customer or employee satisfaction since they’re the core drivers of a business’ growth. ### Invest in Staff & Culture While planning big for your small business, investing in the right staff and office culture is of utmost importance. Hiring the right team dedicated to the business’s success is a surefire way to boost continual growth. Having the best team in place allows you to delegate tasks, free up your time and energy, and dedicate your resources to other avenues requiring your attention. While allowing your team and you to perform your best and cultivate an efficient and collaborative work culture.  ### Make the Most of Technology We’re now living in the digital era, and it only makes sense that you make use of the most powerful tool in your arsenal while you plan big for your small business. It can assist you in organising and running your business efficiently, finding more customers, and saving money while doing so. Moreover, keeping up with changing technology can help small business owners adapt and make better business decisions while saving precious resources and increasing workplace productivity. ### Outsource A major tool that can go unnoticed by a small business owner while planning big for their small business is outsourcing. Business owners are so used to doing everything themselves that they often overlook enlisting outside help. It can be challenging to identify which tasks require outside help, but you can devote more time to the important tasks, contributing to your business’s overall growth once that is achieved.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/image-1641620419957-compressed.png) Market and Advertise -------------------- While you plan big for your small business, you need to employ the correct marketing and advertising strategies to increase your customer base and grow your business. Employing technology and online marketing strategies, including social media marketing on all major platforms paired with offline marketing strategies, can produce the best results. This will allow you to create a more engaging experience for your customers and enable them to share your business with their contacts resulting in them feeling more connected with your business.  Expand Market Reach An important step to keep in mind while you plan big for your small business is to expand your market reach. You can open stores in new locations, target new demographics, and encourage new uses for your products to expand your market reach. Making your product or service available for a new pool of customers will allow you to increase sales and make your business model more stable.  ### Picking a Great Payments Processor When you plan big for your small business, you understand the importance of a great payments processor as a small business owner. It is the intermediary between your business and the banking institution involved in the transaction.  Swiping a card is more convenient for customers than paying in cash, especially when they’re paying online, especially when paying cash is not even an option. And in order to accept card payments, you would require a great payment processor like Salt for seamless financial services, which would result in boosting your business’ growth.  Analyse Competition ------------------- Competition breeds growth. When you plan big for your small business, you need to research and learn from your competitors. It is one of the fastest ways to scale your business. Analyse what your competition is doing right, and don’t be afraid to enhance and implement similar strategies to increase your business’ development. Like anything else in life, planning big for your business as a small business owner may seem daunting. However, if you strategise, stick to your plan, and work towards achieving all your goals, you will see a long-term outcome of your effort and witness the gradual growth of your business.​​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How North-East India Is Rising As A Trade Hub And Why It Needs Our Attention Author: Ankit Parasher Published: 2022-01-08 Tags: TRADE, ner, North east India , North east, North east india business URL: https://salt.pe/blog/null ![How North-East India Is Rising as a Trade hub and Why It Needs Our Attention](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/north-east-1641621199407-compressed.jpg) ​ The North East Region of India (NER) is strategically located, sharing borders with Bangladesh, Bhutan, China, Myanmar, and Nepal, making it ideal for international trade. The region is also a biodiversity hotspot enriched with fauna and flora. Before 1947, NER was a thriving trade and business centre and one of the country's most successful provinces. Tea gardens sprung up quickly after the first one was created in 1835, resulting in the region's first tea exports. In 1890, an oil refinery was created in Digboi, Assam, providing the groundwork for early industrial development. One of the first railway lines in Asia was the Dibrugarh-Chittagong line. NER gradually began to lag behind other provinces post-independence where partition isolated the area. The scenario of NER trade is beginning to shift over the past two decades. Under the wide umbrella of the Government of India's "Act East" policy, connectivity agreements with Bangladesh and infrastructure developments in NER and its neighbors have reduced the subregion's economic isolation. NER has also been benefiting from global developments. Incomes are on the rise, thanks to growing consumer awareness and leisure spending in Indian consumers and the consumer hub of the neighboring countries. Apart from being strategically located, the presence of powerful input market triggers such as social capital (diversity and cultural richness), physical capital (possible energy supply hubs), human capital (cheap and skilled labor), and natural capital (abundant natural resources; minerals, forests) have also contributed significantly to the growth of the region. Despite the NER rising to be an important trade hub of the subcontinent, it faces many hurdles like armed insurgency, cross-border migration, groups calling for breakaway federal states and autonomous areas, and ethnic conflicts. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/north-east1-1641621230485-compressed.jpg) The Trade Potential of NER -------------------------- The NER is at the heart of the AEP, which aims to create India's land bridge to Southeast Asia so that regional economies may benefit from manufacturing networks. Subregional institutions like the Association of Southeast Asian Nations (ASEAN) and the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation might help improve trade and connectivity between the NER and India's neighbors in this context. Geographic location, cultural ties, and existing trading networks with its neighbors are the arsenal in NER's hands. Raw minerals, including coal, limestone, boulders, and agro-horticultural items, are important exports from the NER to Bangladesh (ginger and citrus fruits).  Cement, synthetic textiles, Ready Made Goods (RMG), and processed food are completed items imported from Bangladesh. Cumin seeds, cotton yarn, car components, soybean meal, wheat flour, and medicines are among the most important exports from the NER to Myanmar. Betel nuts, dried ginger, green mung beans, black mung beans, turmeric roots, resin, and medicinal plants are among the things that are imported. Call for Attention ------------------ According to the [NITI Aayog,](https://www.niti.gov.in/sites/default/files/2021-08/NER_SDG_Index_NITI_26082021.pdf) India's trade with its East and Southeast Asian neighbors is dominated by produce outside the NER. None of India's northeastern states play a significant role in its international trade with its neighbors. This demands our attention. After all, the NER has enormous potential in agriculture trade and exports due to its appropriate soil and other agro-climatic conditions. On the other hand, FDI inflow into the NER is exceedingly low compared to other states. The Indian business economy is dominated by a few states, such as Delhi, Gujarat, Karnataka, Maharashtra, and a few significant corporate giants. Compared to the rest of India, this necessarily traps the NER in a 'low-level equilibrium' trap. Even though the NER's average per capita Net State Domestic Product (NSDP) increased from [2% to 8%](https://www.orfonline.org/research/enhancing-trade-and-development-in-indias-northeast/) (year-on-year) from 2011-12 to 2019-20, the region's average per capita NSDP remains well below the national average. The difference between the national average per capita NSDP and the NER's per capita NSDP has widened, rising from INR 31,000 in 2011-12 to INR 44,000 in 2018-19.  The Centre's efforts to resurrect the economy of the region have had no results. The government invested [Rs 44,000 c](https://www.downtoearth.org.in/news/can-the-northeast-become-a-trade-hub-10949)rore in the region between 1998 and 2003. This includes Rs 5,700 crore from Prime Minister Narendra Modi's package. Furthermore, the region has one of the country's highest unemployment rates and practices subsistence agriculture. Without proper implementation of integration of NER into the subcontinent's trade plans, the perks of NER will go without their hundred percent utilization. The Way forward --------------- Agriculture, horticulture, floriculture, processed food, engineering, autos, textiles, pharmaceuticals are some industries where NER's value chain potential with Bangladesh, ASEAN countries, and the rest of India has remained untapped. There are numerous trading opportunities in livestock, horticulture, fisheries, agro-processing, and natural resource industries.  Once enabling supply chains are in place, value chains spanning NER may eventually rise. To boost trade, NER, for example, requires specific cold chains. State and Central governments must come together to accomplish this. The development of transportation and communication linkways, such as roadways, airways, and railways, is also a crucial part of enhancing trade and commerce. While NE states have fared better in recent years, Agartala, Aizawl, Shillong, Guwahati, and Bagdogra are among the NER airports that require capacity expansion and additional domestic and international flights. Heritage tourism and cruise tourism along the waterways connecting the NER and Bangladesh can attract millions of visitors worldwide. More investments are necessary to develop river terminals along the Brahmaputra River into full-fledged river ports. Promoting the usage of waterways can lead to increased economic activity along river banks, which can benefit the local economy and livelihoods. Special Economic Zones (SEZ) must be established for timber, food processing, and other industries in NER states. The development of smart cities in Moreh and Dawki will boost regional economic activity. In the Northeast, industries with the potential to serve neighboring markets and ASEAN must be identified and encouraged. The harmonization of customs procedures and other trade facilitation measures would aid commerce in the region. Simultaneously, the North East Council (NEC) must be restructured to take on connectivity-related tasks to serve as a leader. ### The Future of North East India There is a little question whether India's NER has enormous economic growth and cultural interchange potential. Both of these elements are necessary for effective diplomatic ties, particularly with neighboring countries. Bangladesh and Myanmar, India's closest neighbors, have played critical roles in increasing and strengthening commerce with the Northeastern states.  However, because the region is physically isolated from the rest of the country, it has logistical challenges that impede commerce. The harmony of the state and central governments and proper investment and strategic planning will lead NER to be a potential leader in trade and commerce. To learn more and be informed about such pressing issues on trade, visit [Salt](https://salt.pe/) here. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Everyone Is Talking About NFTs? - Find out here Author: Ankit Parasher Published: 2021-10-13 Tags: Cryptocurrency, NFTs, Crypto, NFT URL: https://salt.pe/blog/null ​ ​ ![NFTs are inscribing a new testament in the digital space while revolutionizing digital ownership, fan engagement, digital gaming, and online art auctions. ](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/saltblogwhyiseveryonetalkingaboutnft-19-1634108207389-compressed.jpg) Artists and auction houses across the globe are finding the NFT route towards art collectables all the more enticing. Several NFT marketplaces such as Opensea have already successfully sold artworks for millions. Earlier, the artists had to rely on social media such as Instagram to find exposure and patrons for their artwork. These decentralized marketplaces are providing opportunities to both known and new names sans any bias. The artists needn’t rely on traditional art galleries and auction houses to sell their works.  Plus, fractional NFT ownership is making possible the entry of the masses into the art arena. People from all levels and classes can now look forward to owning a piece of their favourite artwork or trade them in the market to earn returns.  The newbies on the crypto scene-  NFTs (Non-Fungible Tokens), another blockchain-based digital token class are currently proving to be the gold rush, having taken the internet by storm after several NFTs got sold for millions. Suddenly, everyone seems to be talking ‘NFTs’- whether as a bubble ready to burst or as a potential gamechanger in digital ownership. But what actually are NFTs, and how do they function? Let’s discuss.   **The Rise and Rise of NFTs ** -------------------------------- From Jack Dorsey selling his first-ever tweet to Lindsay Lohan selling her face’s image as an NFT, from NBA star LeBron James’ NFT garnering to Electronic musician Grimes selling her digital art for worth [USD 6 million](https://economictimes.indiatimes.com/magazines/panache/people-are-spending-millions-on-and-talking-about-nfts-whats-this-craze-all-about/articleshow/81512751.cms?from=mdr), NFTs are inscribing a new testament in digital space while revolutionizing digital ownership, fan engagement, digital gaming and online art auctions like never before.  One of the reasons NFTs have been steadily rising the popularity charts is that everyone can grab what they are all about. If you are a millennial reading this piece, you might remember the Tazos and cricket player cards you used to collect as a kid. NFTs are nothing but ‘digital collectables’ on the blockchain.  Cryptopunks and Cryptokitties were the first use cases of NFTs that served the primary purpose of popularizing crypto by Ethereum enthusiasts. The advent of NFTs began in 2020 with the rise of DeFi (Decentralized Finance) solutions when NFTs were reinvented from a mere novelty to digital tokens that could be used to monetize anything by tokenizing it.  **What are NFTs?**  ------------------- Unlike cryptocurrencies, every NFT is unique, i.e., non-fungible. To put it simply, You can exchange or trade a bitcoin for another bitcoin or a dollar for another dollar note, and it would have the same value. However, in the case of NFTs, each NFT has an individual value assigned to it for the scarcity that emanates from its unique existence. It is a digital certificate of ownership that can be purchased and sold. NFTs, like cryptocurrencies, including ownership information to facilitate token identification and transfer between holders. Artists and owners can even digitally sign their signatures in the metadata of their digital artworks. How do NFTs function?  ------------------------- NFTs represent digital art, collectables, real estate, or anything on a blockchain, the most popular being Ethereum. Ethereum, the world’s second-largest cryptocurrency by market cap, is best-suited for NFTs and DeFi solutions. All the information regarding the tokenized asset and its transaction history is immutably recorded on the Ethereum blockchain. The decentralized aspect of blockchain further lends security and traceability to tokens, which is extremely beneficial for artwork sale and resale. Artists can claim royalty every time their artwork is sold.  The artist or any person tokenizing their artwork or asset can independently decide the terms and conditions of the sale and purchase. The smart contract feature ensures that every time a sale or purchase is made, all the contract terms are fulfilled. Another notable thing is that a digital artwork can be reproduced or duplicated any number of times despite being tokenized as an NFT. For instance, the famous portrait Monalisa has innumerable versions and duplicates around the world, but the worth of the original remains intact. So is the case with NFTs. An NFT guarantees ownership over the digital asset or the digital copy of the physical asset stored over the blockchain, i.e., its value lies in the ‘aura’ associated with the original or the unique.  Use Cases of NFTs: The future of digital ownership ----------------------------------------------------- NFTs, owing to their immense versatility and easy deployability, are being used to ‘tokenize’ anything and everything, ranging from artworks, collectables, music, tweets, moments, in-game collectables, memes, and GIFs, and even ludicrous sound recordings like farts! An animated Gif of Nyan Cat, a 2011 meme of a flying pop-tart cat, was sold for over $500,000 in 2021. Proclaiming their fandom, Basketball fans have already spent $230 million on NBA Top Shot trading cards. A well-known French company, Sorare, that sells football trading cards as NFTs, has raised $680 million in funding. And the list goes on:  ### **Art Democratisation** Artists and auction houses across the globe are finding the NFT route towards art collectables all the more enticing. Several NFT marketplaces such as Opensea have already successfully sold artworks for millions. Earlier, the artists had to rely on social media such as Instagram to find exposure and patrons for their artwork. These decentralized marketplaces are providing opportunities to both known and new names sans any bias. The artists needn’t rely on traditional art galleries and auction houses to sell their works.  Plus, fractional NFT ownership is making possible the entry of the masses into the art arena. People from all levels and classes can now look forward to owning a piece of their favourite artwork or trade them in the market to earn returns. ### **Encashing Digital Time**  Our physical lives are quite intermingled with our digital lives these days. The majority of people spend a considerable part of their day online watching their favourite sports or playing the latest video game. NFTs can help monetize the time people spend online via fan engagement apps and collectables, or in-game assets like football trading cards as NFTs, or trading in the same to earn gains.     ### **NFTs For Fractional Ownership of Real Estate** NFTs are most commonly used in the digital world that doesn’t mean they can only be used to store digital data. NFTs can also represent a physical property or real estate ownership fractionally, wherein an individual could individually hold each fraction.  By issuing tokens on the blockchain, homeowners could sell a portion of their property to a large number of small investors. Investors could hold these tokens and receive a rental income, a profit split on capital appreciation on sale, or a combination of the two.​ ![](https://lh4.googleusercontent.com/l4kk5cgmmL3otwALuBV-r7YooxNeAAVmcsfRzRafcxWo6FQsIxD6XnlLXJFkrYLv8HSYitn8BmP9g-9s4Aix_D1INyRk3FINJq9wfmnDy5XV74qIx_InZh9bvIumu3gvFQWed-zl=s0) ### **NFTs in Gaming** One of the industries that stand to benefit most from NFTs is the gaming industry. NFTs are being used to create non-duplicable in-game items, allowing gamers to experience a new level of ownership in games such as Axie Infinity, Sorare, Lost relics, The Sandbox, among others. The players collect virtual non-fungible in-game coins as they progress through the levels. They can choose to sell the in-game coins for a profit once they have completed the most coveted goals, as they have full ownership of those virtual coins.​​ ### ​​**NFTs in Sports Industry** NFTs are also being used to tokenize sports memorabilia such as tickets or sports equipment of some iconic games or memorable moments from matches. NBA Top Shots is a fine example of the same.   In the ticketing industry, non-fungible tokens are also useful. NFTs can be used to represent tickets to a sporting event or a concert on the blockchain. This ensures that each attendee has a unique ticket and that any ticket duplication is tracked and avoided. ### NFTs in Metaverse Asset Class ​ Earlier this year, the sale of the NFT-backed digital art piece ‘Everydays - The First 5000 Days’ by Beeple for [USD 69 million]( https:=) made global headlines capturing the attention of artists, collectors, entrepreneurs, and tech-enthusiasts worldwide. The artwork is currently displayed in a virtual monument called [‘Souk’](https://economictimes.indiatimes.com/tech/technology/what-is-the-metaverse-and-why-is-everyone-talking-about-it/articleshow/86173493.cms), which soon will become the hub for concerts, live events, and thought leadership discussions once this ‘metaverse’ goes live on November 4.  Anyone with the address link would be able to view the artwork in the virtual gallery for free. Everydays’ buyer Metakovan has also founded Metapurse described as the world’s largest NFT fund. This use case can become a reality with people being able to move to and fro between various digital worlds existing in the Metaverse.  NFTs are becoming more complex and advanced to suit multiple use cases to which they are being put. Being built on the distributed ledger, NFTs can prevent ownership frauds and title misattribution in art while opening up an entirely new marketplace for digital assets. Many companies have started researching and working on NFTs as a phenomenon built on unique fundamentals and adding utilities to the digital and physical space. Post Blockchain, the time might not be far for another digital revolution via NFTs and tokenized ownership. ​ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Bangalore and Gurgaon: Tale of Two Tech Cities in India Author: Ankit Parasher Published: 2021-10-05 Tags: Bangalore, Gurgaon URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/saltblog1-1641663087273-compressed.jpg) Considered to be India’s startup capital, Bangalore is home to [more than 30% of the country’s startups](https://www.thehindubusinessline.com/data-stories/data-focus/more-start-ups-are-founded-every-year-in-bengaluru-than-in-san-francisco-report/article33840848.ece) and significantly contributes to India’s technological advancement. Similarly, Gurgaon, over the years, has come to play a [pivotal role in North India’s tech industry](https://www.hindustantimes.com/gurgaon/gurugram-among-top-5-it-hubs-in-asia-pacific/story-JKwwaSNvsf4Os3AQAAha6L.html) by housing some of the biggest domestic and global corporations in the country. Every city in India has its heritage, legacy, history, and journey, which are unique in their own way. And today, tech plays one of the biggest roles in every city’s reputation and progress. Every day, new startups are incepted and big tech companies and multinational organizations are constantly seeking locations that provide an environment that is capable of accommodating best-in-class companies, startups, and unicorns. It’s the interplay of  these factors that leads to our ever-vibrant and evolving cities In this post, we are going to evaluate the journey of two of the fastest-growing tech hubs in India. Bangalore is called a startup city, and Gurgaon is known as the millennium city of India.  Bangalore has evolved from a garden city to be the Silicon Valley of India & Gurgaon has made its way from being an agricultural hub to one of the fastest-growing cities in India. In this article, we have put down everything you need to know about the evolving journey of these two great cities. Let’s explore how Bangalore and Gurgaon have evolved over the years. Bangalore: The Silicon Valley of India -------------------------------------- This Indian city is a global hub of technology startups, but this miracle wasn’t an overnight success. The city started as a startup hub in 1947 after the Indian independence. Many of India’s first public companies started in Bangalore – some of them include Hindustan Aeronautics Ltd, Hindustan telephone industries, etc. Since then, the government has promoted Bangalore as a major tech city. In the 1980s, Bangalore evolved as an IT hub with changing times. Many factors have contributed to the development of Bangalore. Supportive governments encouraging startups and providing funding is one of the biggest reasons among them. Bangalore has pleasant weather, which is not only favourable for people but also for advanced robots and many more. This IT hub is home to 35% of IT professionals in India and proudly contributes 87% of revenue in Karnataka. Bangalore has a [population of 12 million, and 2.5 million of them are IT professionals](https://worldpopulationreview.com/world-cities/bangalore-population). It also has the Indian headquarters of world-leading companies like United Breweries, Amazon, Samsung, etc. Being a startup city, it is the origin of many popular startups like Flipkart, Myntra, and [Salt](https://www.salt.pe/) – which is redefining the fintech industry through easy banking throughout the world and promoting borderless banking. This location is now the favourite city of most global tech companies because of its favourable business environment and having the highest growth index for startups. Bangalore is proudly presenting India as a technologically evolved country on the global platform. Gurgaon: From Rags to Riches ---------------------------- Gurgaon has come a long way from an agricultural hub to a millennial city. It has truly set an example for all developing cities. The history of this city goes way back to Mahabharata, but its development started in [1970 after Maruti Suzuki started a manufacturing plant in Gurgaon](https://www.business-standard.com/company/maruti-suzuki-5496/information/company-history). This city was planned to reduce the pressure of the capital city due to a lack of land area and interconnectivity.  Gurgaon is now home to 1.2 million people who generate 40% of all the revenue for Haryana. It is the 3rd highest per capita income city in the country. Many companies like Paytm, DLF, Google have their offices in Gurgaon.  Gurgaon has the most evolving infrastructure and transport facilities. It has also been promoted as a clean and green city along with luxury. This hub of North India is also known for banking and finance companies like American Express, Fidelity International, and many more. It is the second-largest hub for information technology, the third-largest hub for finance and banking, and now evolving as a medical tourism hub. And that concludes pretty much everything about Gurgaon as the rising tech superstar. We live in the 21st century where technology is a vital part of our lives, and as with India eying on a 5 trillion dollar economy, Information Technology and a business empowering environment are what we need for fueling this rapid development in our country’s technological progress. Bangalore and Gurgaon have contributed a lot to India’s tech journey and have given India some of its most valuable startups. Both of these cities are an example of how business motivating culture and technology can lead us to a better India! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Business Trends That Needs Your Attention Right Now Author: Ankit Parasher Published: 2021-09-30 Tags: Business, freelance, Trends, Work from home URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogbusinesstrends-05-1-1641663274555-compressed.jpg) The Covid-19 pandemic had a devastating impact on the entire world. Everywhere felt like ground zero for many businesses, and responding quickly was critical to survival. Businesses all over the world have undergone rapid, fundamental transformations and innovations since then. Many norms that were accepted before the pandemic have now been proven to be ineffective in 2021.  With uncertainty on the rise and enterprises trying new strategies to stay afloat, the typical way of doing business has become antiquated. The largest and most successful companies in 2021 will be those that have studied and adapted to the current trends in the business world. Here’s what you need to know about some trends that will affect businesses in 2021 and beyond. Work from home: The new normal ------------------------------ Many businesses found a way to continue operating in the face of the pandemic in 2020 with work-from-home. Not only that, but many employers saw the advantages of a remote workforce, such as cost savings and reduced equipment maintenance. This trend will continue in 2021 and beyond. Companies that previously required large commercial spaces can now relocate to smaller spaces because they no longer need to accommodate a large workforce physically. Of course, many businesses will still need on-site workers, but the resources invested may be limited to only the most essential services. Video conferencing apps will continue to make it easier for employees to communicate with one another. Freelance work to become more common ------------------------------------ As the workforce shifts from physical to remote locations, there is a strong trend toward freelance work. Many who want to start a small service business on the side can now work freelance jobs in addition to their full-time jobs. This could eventually lead to an increase in the number of consultancy startups.  With the rise of freelancing, many businesses may no longer see the need to hire and invest in permanent employees because freelancers can do the same job for less money. [Freelancers](https://salt.pe/2020/06/01/investment-guide-for-freelancers/) are now armed with tools like [Salt](https://www.salt.pe) to process payments and manage finances. E-commerce and mobile commerce ------------------------------ With more of us working from home and spending less time outside, e-commerce has proven to be a lifesaver. E-commerce expanded rapidly in 2020 and will continue to expand. To stay afloat, smart companies are moving their physical businesses online, and social media has become a popular channel for purchasing goods. Online businesses can increase their sales in 2021 by utilizing social media. Simultaneously, mobile-based businesses are receiving increased focus and attention. Mobile payment options and solutions are becoming increasingly important for businesses as a result of this growth. Companies that adapt to this trend will find it easier to thrive online. Automation ---------- Automation is another top business trend that will dominate in 2021. The demand for automation is greater than ever. Businesses will need to assess their current processes and develop strategies to automate as much as possible by 2021 in order to speed up processes and reach out to more customers.  White-collar automation could become a trend in 2021 as service industries look into how aspects of white-collar jobs, such as medicine or law, can be automated. With a faster network comes better communication ------------------------------------------------ Despite the pandemic, 2020 saw a lot of digital innovations, including 5G networks. Automated and online processes will be easier in 2021, thanks to these faster, smarter communication networks. Better bandwidth and download speeds will improve online interactions, allowing businesses to communicate and interact with their customers more effectively. Borderless payment options -------------------------- The combination of work-from-home, a digitally enabled mindset, and the need to cater to a global market have all driven up interest in payment options that aren’t restricted by borders anymore. Platforms like [Salt](https://www.salt.pe) provide businesses with a one-stop portal to manage multi-currency accounts, payments, collections, and expenses worldwide, whilst being superior to conventional [international wire transfers](https://salt.pe/2021/09/13/international-wire-transfers-the-struggles-and-the-solution/). Collaborations with influencers and brand ambassadors ----------------------------------------------------- Social networks have progressed from keeping in touch with friends to a platform where almost anything can be marketed and sold. Influencers nowadays use social media to create and share interesting content. They are not necessarily celebrities, but they have the ability to attract followers and influence what their followers purchase. Businesses should consider collaborating with influencers in order to market their products and services to new and larger audiences in 2021. Conclusion ---------- Investing in future trends sooner ensures that your company will benefit from them later. These trends can help businesses to run smoothly in the coming years and provide consumers with a positive experience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Sending money to the homeland? Tips for NRIs Author: Ankit Parasher Published: 2021-09-27 Tags: Money transfer, money transfers, NRI URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/saltblognri-09-2-1641817762703-compressed.jpg) As an NRI, you may be fairly well versed in sending money to India on a regular basis. And, of course, you want the process to be quick, simple, efficient, and cost-effective. According to a Ministry of External Affairs report, India has the largest population of citizens living abroad, with 32 million NRIs and PIOs residing outside the country. With such a large ex-pat population, it’s no surprise that money transfer services to India are in high demand. The top remittance countries to India are the United States, Saudi Arabia, Canada, the United Arab Emirates, Qatar, the United Kingdom, Kuwait, Oman, Germany, France, Australia, and China. Fortunately, it’s 2021, and the pains of the past in money transfers are fast receding. Today, the best service is one that allows you to send money from your home via smartphone and in a matter of minutes. How do you pick the best ones, though? And what do you keep in mind? Here are some of the things you need to consider to ensure that your remittances are shared quickly and seamlessly. Exchange rates -------------- The biggest differentiator between service providers in the exchange rates. Choose a partner that has the most transparent and competitive rates in the industry. You can also look for premium banking services that offer preferential rates. Taxes and conversion fees ------------------------- Some financial institutions charge service taxes, conversion fees, and receiving fees for each transaction in India. Before sending money overseas, make sure there are no hidden fees. List of remittance partners --------------------------- To facilitate international money transfers, many banks collaborate with their foreign counterparts. You should ask the bank’s customer service for a list of financial institutions they have partnered with within other countries and keep it handy. Transaction speed and time -------------------------- To ensure that the beneficiary receives the funds on time, inquire about the transaction’s completion time. Ideally, you want a bank that responds as quickly as possible. Transactions can take anywhere from a few hours to a few days to complete, depending on your mode of transfer. Cut-off time ------------ Banks have a different cut-off time for each country. If you successfully initiate an international money transfer before the cut-off time, your transaction will be completed the same day in most countries. Inquire with customer service about the cut-off times for each country. Currency list ------------- Check whether your remittance service provider supports the currency in which you wish to transact. Past exchange rates ------------------- Before making a transaction, check the exchange rate for the day, as even minor fluctuations in the rate can result in significant gains or losses in rupee terms. Transaction limits ------------------ Banks impose limits on the amount of money you can send abroad. Furthermore, some banks impose limits on the number of transactions that can be made in a year. Before making international transfers, make sure you know what the limit is. Beneficiary information ----------------------- When you send money to India, banks will ask you to include the names and addresses of the recipients. Transactions may be denied if the recipient’s bank account number, name, address, bank branch name, and IFSC (Indian Financial System Code) number are incorrectly entered. In some cases, the SWIFT code is also required. Before proceeding with any transaction, double-check the information and keep it on hand. Holidays and working hours -------------------------- Banks do not conduct operations on holidays. So keep a calendar handy and plan accordingly. Of course, a payment service provider like [Salt](https://www.salt.pe) will ensure your money is remitted and delivered as soon as possible. Regulations ----------- Above all, understand the rules. The Reserve Bank of India has a set of rules that govern the transfer of money, whether for family, investment, or any other reason. Conclusion ---------- Transferring money by NRI to India is no longer a challenging task. The variety of options available today makes it simple to transfer funds from any country. The only difficulty that one may encounter is deciding on the best provider and mode of payment. To obtain the best deal in transferring money, one should look at the exchange rate and service charge while keeping an eye on fluctuating rates when sending a large amount. Choosing the preferred mode of payment becomes a stress-free activity for NRIs when they focus on the exchange rate and service charges. If you are an NRI looking to send money to family or friends in India, this post (and [Salt’s services](https://www.salt.pe)) are for you. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Ending The War between Profit Vs Growth Author: Ankit Parasher Published: 2021-09-20 Tags: profit, growth URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogprofit2-1-1641817897185-compressed.jpg) At some point in your professional journey, you’ll come to a crossroads and have to choose between focusing on growth and pursuing profitability. Both of these outcomes are extremely valuable to an enterprise. Owners and corporate executives strive to position their companies for maximum growth while maintaining a healthy profit margin.  Unfortunately, achieving both at the same time is nearly impossible.  In the end, it comes down to knowing the distinction between the two and making an informed decision about when to devote your attention and resources to each. If you’re at this point in your company’s life cycle, keep reading to learn about the fundamental characteristics of each path and how to choose the best option for your company. ### Growth Investors frequently put pressure on venture-backed companies to grow their top line as quickly as possible. As a result, they devote a significant amount of time and money to sales and marketing in order to expand the business and build a large client base. They make the decision to reinvest all (and then some) of the money they receive from new customers back into their sales and marketing efforts. What makes this a valid strategic approach?  In a number of cases, it allows the company to gain a competitive advantage by cornering a specific market. If you can reach customers before your competitors, you will have an advantage in building a strong customer base. Furthermore, some businesses place a premium on the public visibility and attention that comes with rapid growth. However, there is a cost to going down this path of entrepreneurship. Firstly, it is critical to understand that you can only grow fast before reaching a critical breaking point. If you expand faster than you can handle, you may endanger the business as a whole and find yourself amid a failing enterprise. It is also critical to recognize that while investors are interested in seeing a growth pattern, they will “look under the hood” to discover the reality behind that growth. If your financials do not depict a long-term picture of business health, you may find yourself in a precarious situation with limited investment opportunities and a lack of financial support. Profitability ------------- There is no denying that entrepreneurs and business owners want to be successful. That’s one of the core objectives of capitalism, after all. The primary reason for starting a business is to make money.  However, in many cases, achieving true profitability comes at the expense of sales growth. Instead of reinvesting your profits in sales and marketing, you let them pile up on your bottom line. One of the most significant benefits of focusing on profitability is the ability to maintain financial health without relying as heavily (or at all) on outside financial support. With a profitable business, you can deliver your product or service, pay your bills, and pay salaries based primarily on the income you generate rather than investment and loan options. In the end, the business’s overall value may not be as high as in a rapid-growth version, but you own a larger portion of it. Many entrepreneurs fail to realize that a “grow at all costs” approach to business ownership can lead to a lot of chaos and waste. In a fast-growing environment, it’s easy to become so focused on the size that you end up hiring people you don’t necessarily need, who haven’t been properly vetted, who don’t meet your ideal candidate criteria, or who can’t be properly trained.  You may even begin to adopt a “quantity over quality” mindset, which degrades the brand and jeopardizes customer loyalty. And if you don’t manage your finances properly, you might run into some serious cash flow issues that make it difficult to pay vendors, employees, and other creditors. On the other hand, if your company chooses a profit-based platform, you won’t have to make such hasty business decisions. Instead of spending money on quick-scaling opportunities, you can build a stronger foundation by developing a solid business structure and honing your offerings. Of course, you give up market share as well as the competitive advantages of a rapid-growth model. However, you take a safer approach to financial stability. Which road do investors prefer? ------------------------------- Many people want to attract investment capital for their businesses, so it is reasonable to wonder which route investors prefer. The answer is that it depends on the type of investor you want to attract. Most venture capital firms are perfectly fine to sacrifice near-term profitability in order to maximize growth. Many venture investors who see a race to lock up market share as a first mover in your space may want you to incur significant losses in the short term in order to sign up as many customers as possible today before a competitor does. On the other hand, most private equity firms require some level of profitability before investing. They will most likely want to leverage up the business with debt to reduce their equity investment. Furthermore, debt service will necessitate cash profitability in order to pay the interest expense on that debt. So, if you’re trying to position your company for a sale to a private equity firm, now’s the time to step off the growth accelerator and start driving some profits. Conclusion ---------- All of these factors have an impact on the path your business takes. It is also true that the answers may change over time, which means your business model may require a shift to one or the other approach, depending on your financing requirements, market realities, and business objectives. Whatever path you choose, be sure to research and consider your options thoroughly. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Start Asking Your Customers for Feedback- Here's why Author: Udita Pal Published: 2021-09-17 Tags: Customer feedback, Customer Experience URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/img-20210916-wa0000-1-2-1-744x1024-1641883810402-compressed.jpeg) Looking for first-hand product enhancement advice? Developing a new feature and looking for feedback from users? Have you had many complaints? If you answered yes to all (or even some) of these questions, you clearly need direct feedback from your customers. Allow us to state an obvious fact here – one of the essential aspects of any business is customer feedback. It aids in product development, marketing, and operations, among other things. Customer feedback can be proactively gathered by polling and surveying them or interviewing them. However, it is one of the most crucial parts of running a business that is sometimes ignored. Customer feedback is an incredible resource for enhancing the customer experience and tailoring your activities to their specific requirements. It informs you if they are happy or unsatisfied with a product or service. Because the only way to provide the finest customer experience is to learn what your consumers think. As a result, their loyalty and overall success with your business will improve.  ### Here are some of the reasons why customer feedback is so crucial for a company and why it should not be overlooked: 1. **To grasp market trends** Customer feedback is critical for spotting technology trends among consumers. Assume a new market rival introduces new and superior technology that challenges the existing technology. If clients demonstrate a preference for purchasing another new technology offered by your rival, your business must consider moving to the new technology. 1. **Making business decisions** In a highly competitive market, business choices based on educated assumptions have no place. Successful business owners collect and manage many types of data that aid in the development of future initiatives. Only in this manner are businesses able to tailor their products and services to precisely meet the demands of their customers. Customer feedback is a useful source of such data, which can help to make business choices. 1. **To boost customer retention** According to a new [study](https://hbr.org/2002/05/how-surveys-influence-customers) published in the Harvard Business Review, simply asking for customer feedback is enough to keep them from churning and returning for more – even if they do not answer your request. A satisfied consumer will return to you. A dissatisfied consumer will ultimately find a better option for your company and quit. Customer feedback allows you to assess if your consumers are pleased with your service and identify areas for improvement. 1. **Making customers feel valued** Customers want to know that you care about them and that you want to meet their requirements. If your business does not exhibit this mentality, the client will assume that money is the company’s sole aim, leaving them feeling ignored and insignificant. Seeking feedback from customers shows them that they have a say in how your products and services are produced and delivered. This is where your focus should be if you want to demonstrate that you operate a customer-centric business.  The difficulty is that creating a successful survey and survey procedure is not as straightforward as it appears. As a result, we’ve compiled a list of Dos and Don’ts for creating a successful survey. Some Do’s and Don’ts While Taking Customer Feedback --------------------------------------------------- * **Don’t survey too frequently** It would help if you established a time interval between surveys appropriate for your industry; for some, it may be once a month, while for others, it may be once a year. * **Don’t inquire about what is essential to your consumer** It is extremely difficult to determine how significant something is to you and then assign a value to it. Don’t expect your consumers to do it either. Rather, correctly construct the survey procedure and then let the data speak for itself. * **Don’t be scared to solicit unfavorable input** It’s tempting to desire praise from your consumers, but criticism frequently teaches you more. Create a question or two that invites a negative response. For example, “How could we improve the most?” “What, if anything, about our product, did you dislike?” * **Do: Make changes in response to input** This is the survey’s true purpose. It shows you where you shine and where you need to improve. Making improvements in response to survey results will help make your consumers feel valued and heard. * **Do: Ask appropriate questions** Take your time thinking about your questions. Keep them as detailed as feasible, and ask what you truly need to know. It’s helpful to concentrate on things you can alter if things aren’t going well. * **Do: Make it appealing** Consider providing an incentive for consumers to leave a testimonial. For taking the effort to complete it, customers could get a gift card or a discount on a product. This provides a win-win situation for both parties, which will motivate them. ### To sum up Customer feedback can also act as a factor to inspire staff. If a specific feature has been appreciated in your customer feedback, make sure you communicate the praises straight to the individual who created the feature and make sure the rest of the team is aware of it as well. Keep in mind that you can find consumer’s comments anywhere. Discover how to acquire it using various methods and resources. Conduct several types of surveys and look for online reviews left by your customers. Don’t dismiss any feedback regarding your products or services, and strive to be receptive at all times. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## International Wire Transfers: The Struggles and the Solution Author: Ankit Parasher Published: 2021-09-13 Tags: International Wire Transfer URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/businesstrends-01-1641818212147-compressed.jpg) There are plenty of reasons to send money if you’re [living or traveling abroad](https://www.salt.pe/2021/08/24/moving-abroad-heres-the-checklist-you-need/). You might want to make a deposit on a holiday home, transfer your pension regularly due to relocation, or wire a one-off payment to a loved one in some other country. To transfer money the conventional way from one country to another, you would most likely consider an International Wire Transfer. By using an International Wire Transfer, you can send and receive money from abroad and convert it to your own native currency. But you might wonder, what is a Wire Transfer exactly? Why’s it called that? And how do we use it? Is it the best method for transferring money or are there any better alternatives? Well, don’t worry, after reading this post you will rest assured you have a better understanding of bank transfers involving various situations, what are its benefits and drawbacks, and how you can make your future decisions on this topic more effectively. What is a Wire Transfer? ------------------------ ![](https://lh4.googleusercontent.com/NOhxxfbdgrJoqwnx0NXiHIX3L036GH5bnzKSIDCQPtXONcEShpq2pUIkRUXVxdlz1CagjOXNwG7-3Fy80xd2QMdFKQR0VTPOn7a4iFRy2QcTHLRmL5UVozIYeWuh-XogULE3mrLw=s0) Wire transfer, sometimes called a bank transfer, is a medium of electronic funds transfers from one entity to another – a person or a company. It is essentially an interbank payment method, meaning one bank transfers money to another bank. Unless you’ve been living under a rock, you know that it’s a secure mode of transfer with several advantages. For instance, say you stay in the United Kingdom, and your parents stay in India. You can send money from your bank account to your parent’s bank account easily by issuing a wire transfer. How does it work? ----------------- ![](https://lh5.googleusercontent.com/8nKS8jLTKlp1tvtfqScyM2X-X7w9z2j7p5YaAbey9UL8m8mEVsGv7S5f73UXFcvfTDQ63oH00yQJEXUuMl9ai6POfKhzGUbmUZlDwp0qsWgRE3J-JYpHCUKdaQYqDFk9cVQryPcJ=s0) Previously we used telegraphic wires to transfer money. Thus it was named “wire transfer”. Wire transfers allow you to send a substantial amount of money to almost any bank account in the world. Here’s how it works : 1\. First, you set up a wire transfer online by choosing the sender’s account. 2\. Then, you Enter the bank account details of yourself or the company you want to send the money to. 3\. Check whether you have the right credentials and details, including sending amount and the currency. 4\. That’s it. Your account will be debited for the currency value by the bank and wire the money overseas in foreign currency. But wait. There’s one catch. International wire transfers are really, really expensive and often come with poor exchange rates and high fixed fees. Luckily, by the time you’re done reading this, you’ll know the best and cheapest alternatives to wire money internationally. Differences between Domestic and International Wire Transfers ------------------------------------------------------------- ![](https://lh4.googleusercontent.com/azeXVgQDCgyvsUaFrnjV9PF08mPdjVBHlwbBb6Dng6GHWI4dOC7ZHfxdVspQzc_PYZzHYYL29N0wtIKJnULDfHv9-njsxeoB2gWJZJpO9wO7KkZG91QQPKo4eDDSjucR7JhKlzJY=s0) Banks make an international wire transfer when sending funds to financial institutions in an overseas country or zone. On the other hand, while sending money/funds to financial institutions within the same country or zone, banks issue a domestic wire transfer. These two types of wire transfers, often due to their differences, affect the duration and fees the banks charge in order to complete the transfer. Usually, most international wire transfers are executed using SWIFT and other such services. It has a wide network of banks and financial institutions across 200 countries with over 10,000 banks. Domestic wire transfers generally take a day or two, whereas, International transfers may take up to 5 days or more. Wire Transfers Fees ------------------- ![](https://lh3.googleusercontent.com/pvcvgdzI48rqBWNsFF6uM8EAZtAULt4Y5UxRfNwcqXSn83-mzjBeYuG9rUMteGk3HHeB3B0kW3QAg0hf9O0PPTvfNP-mtYnOXAbYFk5YaVxolhucq6Db-bPwqp24wgkzt33hb5rP=s0) Often with individual banks involved, an additional fee is taken from the amount. Additionally, with international transfers, the funds/money is converted to the specified currency at a rate unknown to the sender.  Thus, these denominators imply that the amount of money is unknown to the recipient, which can create [big issues](https://www.salt.pe/2020/12/07/why-cross-border-payments-are-still-a-struggle/) for international invoices or purchases. International wire transfers are therefore very expensive for banks, too, as the money needs to be tied up in accounts globally. How long do International Wire Transfers take? ---------------------------------------------- ![](https://lh5.googleusercontent.com/NCSkM3iiTdndnl3B8tbvviH3fu0UAqPeorVPVzJv93ejnd3yg7BELz5ATXpQlJ9N8hXDSmiNy-aBNJQSquBJKwdjvpAcF-Ipe7ITGbGecd0BIzQM5QK9WQBhwlLTMqtFNfJp1Vpo=s0) The speed of an International Wire Transfer depends upon country to country in terms of time, countries involved, and other factors. Typically it takes 2 to 4 business days for the internationally wired money to arrive at the destination bank. However, there might be some [reasons](https://www.salt.pe/2021/05/25/why-your-international-banking-transactions-gets-delayed/) for a delay during transference. Current Problems regarding Wire Transfers ----------------------------------------- Although a wire transfer is an obvious choice in sending money internationally, it does have a lot of problems within its procedure and structure. Some of them would be: 1. Lack of Customer Support Customer service is one of the primary factors which decides whether a customer will stay at the platform or not. Recent studies have shown that [89%](https://www.customerthermometer.com/customer-service/customer-service-and-satisfaction-statistics-for-2020/) of customers switch their service providers after a bad experience. Banks still face several difficulties in serving their customers on a daily basis. 1. Delay in transactions Wire Transfers tend to take time especially when you enter account details incorrectly for which the money gets wired to some other bank. During this problem, the transfer may be difficult to trace and a resolution may be difficult if the wire transfer gets truncated, lost, or not provided at all. That’s why an ideal transaction experience should be secure, convenient, and fast that is familiar to the user. You should use a payment platform that takes security seriously like Salt. 1. Security Issues It is often hard to control and manage wire information after it is released. Bank websites and invoices sometimes increase security risk by showing sensitive wire information or methods. Therefore, you should always choose a payment method that takes Security with utmost priority and executes the necessary precautions for a safe and sound payment experience for you. 1. Cost Concerns Furthermore, Wire transfers can prove exceptionally costly. Banks charge payers with sizeable fees and discourage them from making a payment. Additionally, Institutions may also receive less amount from the payment due to these bank charges. Hence, a cost-effective method of payment is a necessity during a transaction. You should always research and choose the best and also the most pocket-friendly medium of transferring money. Rise of Fintech --------------- Fintech is a rising goliath in the field of digital transaction methods that utilizes automation and improves the delivery of financial services. It focuses primarily on making the customer experience seamless with the help of personalization, accessibility, functionality, and convenience. Fintech has large market penetration thanks to its use of technological advancements and trends like smartphones and laptops. It also has fewer barriers to trends that in turn encourages innovation and the latest technological adoption. ![](https://lh4.googleusercontent.com/pOODHfIjVV69M9hsOC9XFTGpNyAB62EJsfKPVds1LZSRmdSCGe3nC_tNjHjo7eknSXOOMaRXeaqdxyMA_5nGOuXJD3hT_4Ksj1zX3qjQTGhPm0w5dp8AWiN50-DAcCH1ve-x7tpL=s0) Source: [Statista](https://www.statista.com/statistics/1055356/fintech-adoption-rates-globally-selected-countries-by-category/) Fintech Adoption rates between 2015 and 2019 clearly show a massive rise in the use of fintech companies and services. By the year 2019, 75% of consumers worldwide started adopting a money transfer or payment method in one way or the other. This shows how people globally demand faster and easier modes of payment which traditional banks are incapable of doing. It’s often glitchy and slow rather than being frictionless, whereas modern tech mediums like [Salt](http://salt.pe) offer lightning-fast payment which is secure and convenient, and tailored explicitly for the customers. Possible Solutions and Alternatives ----------------------------------- ![](https://lh4.googleusercontent.com/IZO_Lmev05q_YoPmSOfp9TyLcdKj2o0rCSpfMNLC_zZDMHh0qAbzRSZ-BSe-uJlL6cjKu9yPc9fRl6x7eXIzxpfE1lDZtvv7Ey75ERzuFnWDcXlycf7ExBOyNQEfcSJy3QJYBYgk=s0) There are many problems with this transfer service, but it also has its merits. Namely, its reliability and security, when sending large amounts of money internationally. But what can save on – are costs and time. It’s why we recommend you explore some of the widely used services that cater to your specific needs and offer a more attractive alternative.  Like [Salt](https://salt.pe/) – which delivers a one-stop solution to manage your currency accounts, payments, and expenses worldwide. [Salt](http://salt.pe) offers businesses unique features to manage multiple accounts to save their time and resources. [Get early access](https://salt.pe/#) today to join their list of early adopters. The Final Verdict ----------------- ![](https://lh4.googleusercontent.com/txFsRZzoHmVft7XdJ1TCXTErMiF7IltN6TRJjNx4y6UXMUEy8Pw8wZr3LyDVnuwCpv-HR_7NA3itK4uuHonE4BbROO31jTSm30ZkMgWwrOvxRk1p8HyrhGg1s-e7xX6-evg0yYv-=s0) So, this has been an awesome journey! Congrats! You now have the necessary knowledge and wisdom to go forward and wire money effectively anywhere you want. Before you go, let’s wrap things together with some final suggestions. ### Overseas Wire Transfers with your Bank If you decide to use your bank, make sure to [check](https://www.salt.pe/2021/06/16/a-checklist-for-choosing-the-best-money-transfer-service-for-yourself/) exactly its fees and exchange rates. They are not as they advertise to be, as they’ll charge you hefty prices. From a more cost-effective standpoint, try sending large amounts of money so that the fixed fee doesn’t become a big concern for you. As an alternative, try using online money transfer services as they are fast, easy, and less costly than the banks, and they’re great for smaller amounts. If you want to know more about how bank transactions work, check out this [article](https://www.salt.pe/2020/08/24/essential-guide-to-understanding-how-bank-transactions-work/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 5 Things that Ruin Users’ Banking Experience Author: Ankit Parasher Published: 2021-09-06 Tags: Banking customer experience, Best banking experience, Customer experience banking sector URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-bank5-01-1643957207420-compressed.jpg) Customer experience or service can be a make-or-break function for any business, and the financial sector is no exception. The customer experience is particularly important for the banking sector because of high competition. With every bank offering identical products and services, it’s the actual banking experience of a user with their banks that gives one bank a competitive advantage over another.  Moreover, there has been a serious surge in digital banks that are providing all the financial services to the users over the internet without having to visit the physical branch. There is a rise in neo banks, which are branchless banks. Like [Salt](https://salt.pe/), which aims to provide the **best banking experience** by assisting users with personal and business needs.  It is clear that banks have to provide a quality banking experience to their customers if they want to remain competitive and stand out. Here are 5 things that can ruin the **banking customer experience.**  Inadequate communication channels  ---------------------------------- If a bank does not offer multiple communication channels for the customers to contact the support team, it can be restrictive and can ruin their banking experience. One way to address this challenge is by using chatbots to address frequent or simple user queries that and using the phone lines for addressing the complex problems. Limiting communication options means that the banks are only adding to the frustration of customers who want to contact an agent when they have a problem. The banks can offer the following communication channels: * Chatbots – Adding chatbots to official banking websites can help resolve simple queries of customers.  * Live chats – Live chats will allow users to connect with live agents to address their problems.  * Phone – Users with complex problems can opt for phone support.  * Email – Some users prefer to connect over email, so they have an easily retrievable copy of the conversation with the bank.  * SMS – It can be a great option for users who don’t have an internet connection and want to connect over instant messaging. **Poor customer service** ------------------------- Nothing frustrates users more than bad customer service – such as banks failing to meet their expectations in terms of quality of service, a lack of real-time support, or not being able to address the complaints on time. Not taking immediate action for addressing or resolving the complaints ruins not only the banking customer experience but also worsens the customer relationships, further resulting in customers leaving the bank for an alternative option. According to a [report](https://lumoa.me/customer-experience-banking), 69% of users plan to leave their banks due to poor customer service.  **24/7 support**  ----------------- In this fast-paced banking world, nothing is worse for the users than waiting long enough to get in touch with a banking agent, whether it is for resolving a problem, account opening, or any other query. If the banks are not providing 24/7 customer support, then it might ruin the banking experience of a user. The problem of providing 24/7 support can be addressed by banks integrating live chat support on their websites to connect with live agents.  **Poor digital services** ------------------------- With banks offering all the banking services over the internet, it makes it convenient for users to access the banking services from the comfort of their homes. But, if the banks have poor digital services such as complex user interface, slow loading time, lack of digital help, or poor functionality and usuality. Nothing is more frustrating for a user than visiting the physical branch because of poor online services. Banks can address this problem by guiding the users through their digital banking services and implementing a friendly user interface.  **Hidden fees** --------------- Similarly, one of the most common issues that can ruin a **banking customer experience** is the hidden fees. The users may not realize it right away, but the banks may be charging hidden fees such as excess transaction fees, inactivity fees, and so on. These fees are hidden because they are optional, and banks don’t want users to find out about them. Sneaky bank fees ruin the customer’s banking experience as they don’t want to work with a bank that is not transparent about the hidden fees.  With just a few mentioned above, it becomes clear to us that customer experience plays a vital role in customer retention and satisfaction. It is critical for banks to deliver the **best banking experience** to their customers in order to sustain themselves in a competitive banking sector. As a customer, don’t be afraid to ask! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Stock Market Starter Pack for Amateur Investors Author: Ankit Parasher Published: 2021-08-31 Tags: stock market URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/stock-market-1643957349291-compressed.jpg) The stock market can be a supremely exciting place. Historically a domain of enthusiasts and experts, it’s now drawn the attention of the masses – most of them amateur investors. Big brands like Uber and Netflix dominate headlines in the US markets while India recently had its first startup listing on the stock exchanges. Let’s explore the what, the how, the whys and more behind the market that they say keeps our economy alive.  What is a stock market? ----------------------- A stock exchange is a global network of exchanges where enormous amounts of money are traded daily. Companies sell their shares to raise capital to grow and expand their businesses; many do so through an initial public offering (IPO) when a company begins selling a portion of its shares to the public. To facilitate the trade of securities to the public, a company requires a marketplace to conduct their transactions, where the stock market comes in. The stock exchange does not deal in products or services; instead, it deals in securities. Securities are ownership rights to financial assets such as stock in a company. A share is a fraction of a company’s ownership; when a person buys a firm stake, they are purchasing a small percentage of the company’s request. The New York Stock Exchange (US), TSX (Canada), NSE (India), JPX (Japan), and others are among the various stock exchange markets around the world. These form a global exchange system in which shares can be traded anywhere globally, allowing businesses to raise funds to continue their growth and expansion. How to Invest in the Stock Market --------------------------------- Online investments in stocks are essential for amateur investors in today’s times. But without the right resource, you may fall in losses as soon as you step foot in. Hence, it is important to have the right way to invest. ### – Via an online broker Online brokers are easy to find if you are willing to pay a small amount of money. Full-service brokers offer you everything from scratch – they charge you brokerage services, healthcare, financial advice, retirement plans, stock markets, and other advice. Discount brokers offer the same services, except you will have to make your own transactions. They offer advice on a limited set of topics and finances, but you can get the best out of them with the right knowledge. ### – Robo-advisors In an emerging world, [robo advisors, according to financial experts, are the next big thing](https://knowledge.wharton.upenn.edu/article/rise-robo-advisor-fintech-disrupting-retirement/). By 2025, the public will choose robo advisors over discount and full services brokers. These advisors are automatic and have all the knowledge you would need in the chatbox. They give advice on where to invest and where not to, and the algorithm-based advisor will remove the art of ‘human touch’ out of your investment story. From rebalancing to tax-loss harvesting, the robots can do it all. It is suggested that robo advisors are better over brokers on a long-term basis. ### – Mutual funds Mutual funds are companies that pool cash from many traders and invest the money in securities together with stocks, bonds, and short-time period debt. Investors purchase stocks in mutual funds. Each percentage represents an investor’s component possession withinside the fund and the earnings it generates. Professionals pick mutual funds because of their vast advantages. You can invest and redeem your shares in mutual funds whenever you want for the current net asset value. However, you will have to pay redemption fees. Mutual funds are affordable and require low investment in the first stages. This also helps as people from multiple companies and industries invest together – thus reducing the risks. The Single Most Important Stock Market Tip: Diversification ----------------------------------------------------------- While investing in stocks, there is one right-hand thumb rule that nobody should ever forget – never invest all your money in one stock. This way, when a company goes down, it doesn’t take you with it. Diversify your investments to reduce risks. Invest in multiple companies and keep an eye on the growth and losses of the company. Observe the market trends and choose the right company for you. With diversification, you will reduce the risks of falling into a pit. Hence, advisors suggest mutual funds and ETFs. Getting Started in the Stock Market ----------------------------------- While stocks can be interesting and fun and quite the nerve-breaking way of investments, it is also easy to be vulnerable when putting your money in different companies. Hence, before investing, it is always important to do your research and educate yourself in the field.  Start with a smaller amount, and slowly build up with larger amounts as you keep seeing profits. Pick the right advisor, and keep yourself safe from any scams. Our special advice: Don’t be bummed out when you face a loss. The profits are on their way. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Tale of India’s Financial Capital: Mumbai, The City of Riches and Rags Author: Ankit Parasher Published: 2021-08-27 Tags: Mumbai URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/Yj6j5Z1VGYKEoUFylwlzvvqUDaI2aOSEf2uRQhhZh38Xwm03rNu9ppI_amSu6wS2GWrR4cF5t61GOLDGesElGPXueD4uhZBmiS1FuoXo_pK7_M3HFelpKt1xM4kqfny9AgwlinmW=s0) _Source: Scroll.in_ American photographer Johnny Miller recently captured some brilliant aerial shots of Mumbai, as a part of his ‘Unequal Scenes’ series, depicting the two extremes of the 12th richest city in the world having clear lines of demarcation between the rich and the poor.  _The aerial shot above shows the Mithi river separating the Bandra Kurla Complex, one of the wealthiest regions in Mumbai housing financiers, media executives, real estate professionals on the left and world’s largest slum Dharavi on the right. Any Slumdog Millionaire Deja vu?_  Mumbai, the seven-island archipelago of dreams and dread, of silks and slums, comprises the most unique yet least homogenous urbanity in India. The financial capital of India became the only city with [$960 billion worth of wealth](https://qz.com/india/1729770/in-mumbai-the-ultra-rich-and-slum-dwellers-share-neighbourhoods/) to feature in the top 20 wealthiest cities in the world, as per a 2019 New World Wealth’s October report. In parallel, we have the largest slum population in any city across the globe living in Mumbai. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-revised-04-1638879185319-compressed.jpg) How Did Mumbai Evolve into a Financial Capital?  ------------------------------------------------ Before we delve into the dichotomy that the city of rags and riches portrays, let’s do our homework regarding its background and location.  Formerly, Bombay, Mumbai is located on the southwestern coast of India. It is the capital of the state of Maharashtra and is India’s principal port on the Arabian Sea. It is the most populous city with a population of 20 million and has the most expensive housing market in India. The financial and commercial hub has long been the center of the cotton textile industry and is fast becoming a significant IT center. It is the home to the Bombay Stock Exchange, the 10th largest exchange in the world. The Indian Atomic Energy Commission headquarters lie on the outskirts of the city.   In the early 19th century, Mumbai burgeoned into a booming economy when the Parsi merchants from Mumbai and Gujarat entered the opium trade and the textile industry. Mumbai flourished under the Petits, Wadias, and Tatas, given its economically beneficial geographical location. It proved to be a major port on the west coast, opening the trade window to the west. Millions found employment and home in the city brimming with life and cinema. Next, Mumbai’s Jhaveri Bazar and Shaikh Memon Street became India’s largest bullion markets. It also became a leading center for banking and insurance.  By 1914, almost [50% of the private investments](https://memumbai.com/financial-capital/) were being made in various industries in Mumbai and [87% of the total capital investment](https://memumbai.com/financial-capital/) in India was concentrated in Mumbai alone. Mumbai, now, stood at the altar of all business and financial activity in India. Fast forward to today, the textile industry has lost its sheen to a number of manufacturing industries such as metals, chemicals, food processing industries among others.  [Wiki](https://en.wikipedia.org/wiki/Mumbai) summarises Mumbai’s current economic contribution as follows: _Mumbai generates 6.16% of the total GDP. It serves as an economic hub of India, contributing 10% of factory employment, 25% of industrial output, 33% of income tax collections, 60% of customs duty collections, 20% of central excise tax collections, 40% of India’s foreign trade and ₹40 billion (US$560 million) in corporate taxes._ The Income Divide in the Rags and Riches City --------------------------------------------- The highest number of High Net Worth Individuals including India’s richest man Mukesh Ambani reside in Mumbai’s highly concentrated affluent pockets such as  Colaba, Churchgate, Malabar Hill, Breach Candy, Worli Sea Face, Juhu, Andheri West, etc, surrounded by less affluent neighborhoods and slum dwellings. For instance, Antilla, Mukesh Ambani’s residence and the second-most-expensive building in the world, after Buckingham Palace, stands next to Golibar slum in Central Mumbai.  The not-so-affluent neighborhood of the wealthy has over 41% of the 12.44 million Mumbaikers residing in slums with subhuman living conditions. These areas lack access to electricity, clean water, sanitation, and public transport. The slums are also the workspaces to second-generation migrants that earn a living by doing semi-skilled and unskilled jobs like that of artisans, tanners, weavers, soap makers, washermen, drivers, etc. There’s a huge recycling industry that thrives in these slums. These small businesses alone add around [$1 billion](https://www.businessinsider.in/slideshows/miscellaneous/drone-photos-of-mumbai-reveal-the-places-where-extreme-poverty-meets-extreme-wealth/slidelist/66042974.cms#slideid=66042975) to the ever-swelling economy.  _“The contrasts in living standards are of a magnitude not seen anywhere else in the country. Two distinct cities exist within one.”_ ~An All-India Institute of Local Self Government Report While the high-rise suburbs paint a rosy picture, the better part of Mumbai life trudges in the muddy waters and overflowing sewers during the monsoons. Every year hundreds of people lose their lives in the Mumbai floods. The inequity existing in the world-class city ‘_is the unbecoming spectacle of Mumbai’._  The [HDI report on the quality of life](https://www.dnaindia.com/mumbai/report-mumbai-is-india-s-city-with-the-greatest-inequalities-1306460) in Mumbai points to the vast gap between the rich and the poor, even though the city tops the income-generation charts in the country. The economic polarisation has spilled over to the social and physical aspects of life in the city: * **Sex ratio**: The sex ratio in the slums stands at 750 against the 859 in the non-slum regions.  * **Fertility rate**: it is 1.9 in slums against 1.4 in the non-slum regions. * **Sanitation**: An average of 81 persons share a single toilet seat. The ratio can go as high as 277:1 in other parts. * **Water:** One in every sixth house has access to piped water supply in the slums. In contrast, the city’s average stands at 50.7% of households with piped water supply.  * **Crime:** Every 4th woman in slums is a victim of domestic violence while the percentage is 15% in non-slum areas.  The unique geography of the slums in the heart of the urban economic center that Mumbai’s landscapes present is an anomaly in itself. The magnanimous Bombay Stock Exchange standing tall and mighty amidst the worn-down single-story shanties covered in blue tarpaulin presents a metaphorical reality of the existing divide in the city. Each year Mumbai embraces a heavy influx of migrants with their baggage of dreams and struggles wanting to make it big while often getting lost in the fast-paced life here that forgives none. But development isn’t just an average per capita number or annual GDP figure. Nobel Prize winner Amartya Sen, in his theory on welfare economics, quoted, “_Development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systemic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states”._ Mumbai needs to fulfill its promises beyond the economic contribution striving for all-inclusive growth bridging the gap just like the under-construction bridge on the Mithi river- a physical symbol of the connection between the two distinct worlds existing in the same geography. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Moving abroad? Here is the checklist you need Author: Ankit Parasher Published: 2021-08-24 Tags: Checklist, Moving abroad URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/movingabroadchecklist-02-1-1643957448772-compressed.jpg) Deciding to relocate overseas is a big move. It takes considerable amounts of time, effort and resources. Relocation is usually stressful, and we all want to make it as easy and painless as possible. If you consider moving abroad, some sort of an ultimate moving abroad checklist could certainly help you with this difficult process. The process is not as straightforward as booking an airline ticket and departing, of course. It is critical to have a strategy and go step by step to avoid missing anything vital and to ensure that the entire adventure of moving across international borders goes well. There is a long list of things to do before leaving your home. Make sure you understand what to expect in terms of money, job availability, weather, the economy, and everything else.  We’ve put up a moving abroad checklist with the different items to remember when you relocate to your new country to make the job a little simpler. Financial management  --------------------- The most crucial thing to remember is to keep track of your foreign expenses.  1. Create a budget for your rent, bills, transportation, and food costs. The cost of living varies greatly throughout the world, so conduct some research and develop a monthly budget in the local currency based on your expected income. 1. You’ll also need to familiarise yourself with the tax laws of your new home. You’ll have to pay taxes, so you should know the tax rates and when they’re due. Though it can be a difficult procedure, you can seek professional guidance if you are unsure of how much you should be paying in taxes. Finding a place --------------- If you are on a work visa, your new employer may be able to help you locate temporary housing. Similarly, if you are traveling to another country to study, your institution or college should provide accommodation options for international students, such as on-campus apartments or other homestay partnerships. But what if you’ve exhausted both possibilities?  1. Any local hostel, hotel, or welcoming couch can only keep you for so long until you need to locate a permanent place to stay.  2. If you are looking for a long-term stay, a property search website may benefit from this scenario. 3. There are also several Facebook groups for those looking for accommodation in the area. Joining one of these organizations will put you in touch with other expats who have gone through the relocation process and can help you.  As you spend more time in your new city, you’ll discover its ins and outs. During this time, you have the option of deciding where you wish to reside next. Finding a place to live will be easier than you think if you begin researching your new property market early and have an open mind. Documents required when moving abroad ------------------------------------- To avoid risks upon arrival, make sure you have all of your documentation in order before moving abroad. What could be worse than landing in your ideal country and finding you’ve forgotten to bring your certificates? As a result, it is always a good idea to maintain your paperwork on hand. Please put them in a waterproof bag to keep them secure. It’s also a good idea to have a backup plan. You can store your papers in a cloud app or on a USB stick, allowing you to access them from anywhere at any time. **You must carry the following documents (along with a duplicate or two):** * Passports * Visa * Certificates of birth and marriage * Documentation of citizenship * Vaccination, as well as medical records * Driver’s license * Health-care coverage * Diplomas and academic records * Employment history * Proof of residency and work permit * A living will It will be easier to relocate if you have all of your documentation in order. Your employer might require some additional documents, so take your time and figure out exactly what documents you’ll need and start collecting them a few months ahead of time. Research the country -------------------- If you’re genuinely looking forward to your relocation overseas, doing research can be both useful and enjoyable. Do some study if there’s something you’re unsure of, concerned about, or fascinated about. You can go online to learn about the place, view movies, and see how it looks from the perspective of individuals who have recently migrated thanks to the internet. You could also join expat Facebook groups or forums and ask queries there. Another crucial step is to get guidance from local authorities on what you need to do, as there may be a large list of legal requirements because your new country’s immigration authorities have their own set of rules. When you arrive there, you’ll discover even more new things to learn. However, doing your homework ahead of time might help to alleviate your concerns and get you even more excited about your move overseas. Banking ------- If possible, notify your bank of your relocation and speak with a bank manager about opening a new bank account in your new country. However, using your bank to send money to your new location is generally the most expensive option to send money internationally, especially if you need to spend significant amounts of money. Outbound remittances and [cross-border banking are still highly expensive and inefficient](https://salt.pe/2020/12/07/why-cross-border-payments-are-still-a-struggle/). High currency exchange markups, a lack of transparency in fee structures, difficult paperwork procedures, incompatible formats between domestic and international banks, and a low level of automation in domestic bank internal systems are all examples. [Neobanks](https://salt.pe/2021/07/29/fintech-and-banks-partners-in-change/) have been giving cross-border banking solutions to deal with such a circumstance, making the procedure instantaneous, cost-effective, and digital. They provide multi-currency wallets and do not charge a fee for currency conversion. Regardless of where you are on the earth, using online financial services can help you manage your money more efficiently. Make sure you’re set up with online banking and electronic bank statements before you move. [Salt](https://salt.pe/) is a neo-banking platform with a focus on international payments and banking. While managing software and responding to your issues, we offer everyone an accessible and smooth experience. ### Final thought While moving abroad might be stressful, figuring out how to relocate abroad does not have to be. Moving abroad will undoubtedly be difficult, but it is quite feasible and well worth the effort with proper planning. Follow these pointers, and you’ll be living in an amazing foreign country in no time. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 6 Helpful Tips To Organise Your Small Business Author: Ankit Parasher Published: 2021-08-17 Tags: organise your business for success, small business organisation tools URL: https://salt.pe/blog/null ![](https://i1.wp.com/salt.pe/wp-content/uploads/2021/08/organise_business_blog-02.jpg?resize=288%2C512&ssl=1) Planning to grow your small business? One of the first things that you need to have figured out is the different methods by which you choose to organize your small business. Organizing your small business is that key step that enables you to get a head start on a successful business venture by directly impacting your efficiency and productivity. Realistically, being a small business owner, you might not have access to a large budget like a traditional large business.  The question you need to ask yourself, then, is naturally – _how to organize my business on a small budget?_ A low budget should not be a constraint to growing your business when you have so many alternate options, as there are multiple cheap methods to organize your business, to begin with. For instance, if you’re looking to organize your finances, sign up for a neo banking platform like [Salt](https://salt.pe/) – a one-stop platform for all your banking and financial needs.  Here are 6 helpful tips that you can consider for organizing your small business more efficiently. 1\. Organize your workspace and storage --------------------------------------- The first and the most crucial tip for organizing your small business is to manage your workspace and storage by keeping it efficient and organized. Your working environment is likely to affect your productivity levels. Here is how you can organize your office space.  * Go paperless by saying goodbye to your overflowing cabinets and scanning your documents to store them on a digital space such as Google Drive, Dropbox, or other document storage solutions.  * Add plants in your workspace to increase the productivity level of your employees.  * Delete all the unnecessary files and folders from your desktop. * Set up a bulletin board where you can pin up all the essential documents for the day.  * Manage the cable ties of your technical equipment by using cable ties, under desk cable trays, etc.  2\. Review your progress ------------------------ To constantly grow your business, it is essential to review your monthly progress regularly. Reviewing the progress can be different for different small business owners depending upon the type of business; for instance, it may be for product sales, website views, inventory levels, or social media engagement.  There are several small business organizational tools that can help you monitor your business performance.  3\. Manage your finances ------------------------ To improve the financial health of your small business, You can keep track of all your finances by adequately planning out future finances. Managing your business finances may sound like a daunting task, but now it is easier than ever with the help of neobanks at your fingertips that help address your finances for you. With [Salt](https://salt.pe/), you can track your business finances, flag suspicious transactions, and frankly elevate the quality of your financial management.  ![](https://lh6.googleusercontent.com/wEvE7Dm1K-nA1ZR1tT2GB0lA7Tqb8ltUWF3iNiLK_wwppmwG3mvfe1BJS1gz-tmC5gay5I8guL9ANoM-b-36PTnNYX92TxOs54QiAKusRm_ttL2cX5macxQQ0NXA9p1d22OSbq9C) Here is what you need to take care of to manage your finances properly.  * Pay your monthly salaries or payments to employees, freelancers, suppliers, or anyone you owe money for their services.  * Keep track of all your transactions.  * Manage your cash flow by regularly invoicing for the products and services you sell in a month.  4\. Manage expenses, collections, and payouts --------------------------------------------- To efficiently manage your small business, you must understand how to organize your business for success by managing the monthly expenses, collections, and final payouts to the individuals to whom you owe money for their services.  To make the task of managing expenses, collections, and payouts more manageable, you can again resort to the services offered by [Salt](https://salt.pe/).  5\. Plan monthly calendars -------------------------- Planning the day-to-day tasks in advance does not only make your work efficient, but you can also prioritize other tasks at the same time. Running a business can get chaotic if you have so much to do on your plate. You can create monthly calendars with all the upcoming tasks and properly delegate the work to reduce your workload.  Moreover, you can consistently make changes in your monthly calendars as soon as any unexpected event pops up.   6\. Track your time  -------------------- Last but not least, you should know how to track your time for better work efficiency. You can use third-party apps or websites to help you manage your schedule. One such excellent time management platform is toggle track that can help you analyze the number of hours you are putting into different tasks.  Start Today! ------------ Starting a small business requires you to properly manage day-to-day tasks efficiently to grow your business in the market. We hope these tips on how to organize your business for success will help you in organizing your small business more efficiently.  If you’re looking to learn more about Salt, wish to join the waitlist, or just say hi, [contact us](mailto:contact@salt.pe)! We’d love to hear from you. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## When Your Business Should Start Outsourcing? Signs to look for Author: Ankit Parasher Published: 2021-08-11 Tags: How to start outsourcing, Outsourcing your business, Why outsourcing is good URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/outsourcingblog-01-1-1643957556310-compressed.jpg) Starting a business means managing and efficiently delegating resources, goals, and tasks so that your business can function at its maximum potential. Being a business owner also means always being on your toes and knowing when your business requires external help for reducing the workload.  In this day and age, you’re spoilt for choice in terms of companies or financial platforms that provide help and support virtually from anywhere. One such great platform is [Salt](https://salt.pe/) – meant to address all your business finance needs. Outsourcing non-core work tasks can be a tremendous asset for your business as it allows you to simultaneously prioritize other tasks. However, the question is when your business should start outsourcing? There are a few signs to look for which are explained in detail in the following paragraphs.  7 signs to look for before you start outsourcing your business -------------------------------------------------------------- Here are 7 alarming signs that show why outsourcing is good and when you should start outsourcing your workload.  1. Your business is unable to meet deadlines As a business, there are certainly several goals to chase and accomplish within some time frames, or at the very least, deadlines that customers are counting on. Failing to meet these deadlines? Perhaps it’s the workload, perhaps it’s inefficient management. Regardless, you can start thinking about outsourcing parts of the project for better time management and efficiently meeting the approaching deadlines.  1. Your business is unable to manage finances It can be a financial nightmare if you’re struggling to properly manage your expenses, sales collections, and payouts to employees. In such a scenario, you may want to take some expert help from [Salt](https://salt.pe/), a neobank that assists with managing multiple accounts simultaneously and additionally taking care of all your expenses, collections, and automates the payout process. Keep financial tabs on your enterprise with monthly reports and support from Salt. 1. You’re unable to keep up with the work-life balance Another sign for considering outsourcing your business is not being able to keep up with your work-life balance. Managing a business is certainly time-exhaustive, and may call for you to explore outsourcing your business to keep some balance between your work and the time you spend with your friends and family.  When was the last time you went out with your friends and family for a nice dinner? This might be the right time to start delegating and outsourcing some of your non-core functions.   1. Unable to meet customer demands With the number of customer queries and sales stacking up, there is always pressure to provide better customer service. However, with the number of tasks in hand, you might not be able to meet customer expectations and demands quickly, which may have a negative impact on your business.  Unable to meet customer demands is a sign that you need to understand how to start outsourcing tasks to provide better customer service.  1. Skills and needs do not match Since all employees cannot possess the skills for absolutely everything, you might encounter a work task requiring a specific skill set. In such a situation, it may be best to outsource the job to a freelancer who specializes in that particular skill. For instance, for financial services, you can choose the [salt](https://salt.pe/) platform for all the financial assistance. Alternatively, for logo designing and website designing, you can outsource the work to a freelancer specializing in graphic design. 1. No innovation  ![](https://lh6.googleusercontent.com/mLZ70BlZ5QfxMXwY2KHLuw6g2bDkbEblZVPWhxPJJsFZjFzkRXuOmevtLZtO0Yd4cfkA0GR9j93ACmE06k4I65ZAuFLDc5zniRDMQxod6nRoa-6SM-Sx_OG_cq-p8J0NJFa6Df7T) Source: Alcor, PwC Have too much on your plate? It’s probably what’s preventing you from working on innovative ideas for your business. The urgent, shouldn’t take over the important. It is essential to understand that in order to sustain the business in the market in the long run, you have to come up with innovative ideas to improve your services or products. But, this is where you can start outsourcing certain aspects of your business. One of the main reasons why outsourcing is good is because it enables bandwidth for long-term innovation. Sometimes being an insider makes it challenging to see the bigger picture.  1. Maxed out team capacity Another sign to look for before you can start outsourcing your business is when your team members or employees are at their maximum capacity to undertake any more responsibilities. It is essential to understand that employees can only work up to their limit, and making them cross this limit may kill their productivity and morale. In such a situation, the best decision is to unburden the employees by outsourcing some of the tasks.  Outsourcing Your Business: Important Lessons  --------------------------------------------- Outsourcing can significantly improve the health and growth of your business. If you dive into the growth possibilities, you will find that outsourcing business tasks to platforms or individuals who specialize in that specific area can help to cut down on costs.  If you’re looking for more tips to grow your business or advice on managing your finances better, consider browsing through our [blog](http://salt.pe/blogs). If you want to take full advantage of Salt’s platform, [enter the waitlist now](http://salt.pe) and sign on for the best financial experience of your lifetime. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Questions To Ask Yourself Before Applying For A Business Loan Author: Ankit Parasher Published: 2021-08-03 Tags: business loan, small business finances, New business URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog2busiloan-01-1-1643957692577-compressed.jpg) Loans can be highly effective financial instruments for various purposes –  including making ends meet during difficult times, acquiring heavy machinery or other expensive equipment as a business, among others. As any businessperson worth their salt (pardon the pun) knows, it is never a good idea to invest all your liquidity in a firm. Short and medium-term business loans enable you to spread the risk over several years and pay in simple EMIs as your business grows. For example, what if you are an established firm that has received a large order but lacks the necessary capital to execute it? Getting a business loan to help you overcome your financial shortcomings makes perfect sense. Obtaining funding essential to [achieve your business goal](https://salt.pe/2021/04/12/set-up-business-goals-for-the-new-financial-year-business-101/) can need a significant amount of effort and patience. It also necessitates asking oneself the appropriate questions ahead of time, which will assist you in avoiding traps and matching your demands to a lender. Applying for a loan is a huge step to take. Before you avail of a loan, however, make sure to carefully examine your alternatives. Here are some of the factors that you need to consider as a business owner, before availing yourself of a business loan.  Why does my business need financing? ------------------------------------ Assume your company isn’t performing as well as you’d like it to. So you need to borrow the money to meet the demands of your business, which might be anything from an upgrade to a marketing campaign or even relocating to a better location. If you have a clear response to this question, it will have an impact on your decision-making. Not to mention, after you’ve determined the objective of your business’s funding, you’ll be able to identify the type and term of the business loan that you may choose to avail.  You can, for example, select between a term loan and a line of credit. This will assist you in analyzing the needs and cash amount required to support your firm, which will lead you to your next step. How much money does my business need? ------------------------------------- If you are well aware of what your business needs and, arriving at the exact figure your business needs shouldn’t be a major obstacle. Once you’ve figured the capital you need, by either looking at your books of accounts for your working capital requirements, or the purchase price for the equipment that you may need – you also need to determine if this loan is worthwhile.  For instance, if the project’s return on investment is lesser than the interest that you might have to end up paying for the loan, perhaps you might want to reconsider your strategy. What are the Prerequisites? --------------------------- Securing a business loan might be a piece of cake if your business has been profitable and you have an exceptional credit score. Your credit ratings and history play a significant part in deciding loan eligibility and interest rates. Consider spending more time enhancing your credit history if you’re seeking the best rate. Furthermore, understanding the lender’s minimal criteria can assist you in narrowing down the loan alternatives that your firm can qualify for before meeting with a potential lender. Will I be able to repay my business loan? ----------------------------------------- Before lending you money, most financial institutions will want to see your company plan. They will examine numbers such as your monthly recurring revenue, expenses, and other financial commitments.  Are you confident that your business model will produce income both quickly and in the long run? And that you will be able to repay the loan? To estimate your business’s repayment capacity, you need first to determine your EMI expenditure and compare it to your monthly cash flow. Loan types and lenders ---------------------- Though obtaining a business loan is more straightforward than ever before, studying and comparing all available choices are naturally essential if you’re looking for the best offers. Unsurprisingly, financial organizations will present you with several deals, with varying interest rates and periods. Personal loans, property loans, gold loans, working capital loans, credit cards, government loans, start-up loans, and even money from investors are all options provided you have a good business concept and strategy.  Getting a business loan is not complicated. But it must be approached with caution. Choosing to take out a business loan isn’t always a simple decision. So before you apply, ask yourself these business loan questions to help you make smarter choices. It might be challenging to comprehend where to start, but with the appropriate information and expertise, acquiring money to help get a business off the ground can be pretty straightforward and highly rewarding in the end. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FinTech and Banks: Partners in Change Author: Udita Pal Published: 2021-07-29 Tags: financial services, fintech, traditional banking URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogj2-745x1024-1643957848671-compressed.png) The alliance between Fintech and banks provides exciting growth opportunities. Here’s how they are becoming partners in change in the financial sector. Despite Fintech being initially regarded as an intruder by traditional financial services, the scenario – both consumer-facing and behind the scenes, has certainly changed. Fintech has evolved beyond being viewed as just competition to meet new goals and improve competitive advantage. Several traditional financial and banking service providers are now coming around with the idea of collaborating with fintech. While the gap between customer expectations and traditional bank services is as wide as ever, banks now see this as an opportunity to differentiate themselves by providing the finest front-to-back experiences for customers. According to the [World Fintech Report 2021](https://fintechworldreport.com/resources/world-fintech-report-2021/), there is more pressure on incumbent banks to embrace digitalization than ever before, especially now that Fintech is maturing to new levels and the [Covid-19 pandemic has further driven the need for going digital](https://www.salt.pe/2021/05/18/dealing-with-financial-stress-during-covid-19/) wherever possible to avoid human contact. While the pandemic has pushed the global adoption of digital models in various industries, this was mainly seen in the financial sector. Both individual users and businesses alike relied on Fintech for banking and financial services as a result of suggestions to avoid paying with cash whenever feasible and bank branches closing in various parts of the world.  Plus,  the nearly exponential expansion of tech-savvy fintech startups has caused traditional bankers to rethink their conventional customer strategy. Ever-changing client expectations and digitalization have the financial sector facing many concerns. Experts have also suggested that unless banks and Fintech firms improve their collaboration to deliver essential financial services, neither will be able to fully profit from innovation.  Recognizing all these factors and challenges, traditional banks have now understood that collaborating with fintech and leveraging the possibilities through collaborative strategy is a considerably better idea. Banks are now actively seeking new ways to connect with these innovative organizations in an attempt to develop a value-creating partnership. The strategic partnership between banks and fintech firms will undoubtedly result in the formation of an all-encompassing ecosystem in which both parties’ offerings can be integrated on a single platform. This would also lead to the development of platforms that integrate banking services in the best possible way. Simultaneously, banks can increase their visibility and customer base without having to compete with these platforms. Opportunities for the bank and Fintech collaboration ---------------------------------------------------- Both banks and fintech firms have several opportunities they can leverage with their collaboration to improve customer satisfaction. Making financial services mobile-friendly is one such opportunity that the industry has been grabbing with both hands. A report from June 2021 stated that nearly [48.33% of the planet’s population owned a smartphone](https://www.bankmycell.com/blog/how-many-phones-are-in-the-world). It is no surprise that a majority of these use smartphones for internet access. Banks that are truly looking to better connect and interact with their customers should exploit this opportunity by offering mobile-friendly financial services that are easy to access and easy to navigate.  Subscription management is another arena that the bank and fintech collaboration can explore. A recent Deloitte [report](https://venturebeat.com/2021/04/18/deloitte-consumers-load-up-on-subscriptions-but-are-frustrated-with-fragmentation/) studied the subscription habits of Americans and revealed that an average US household had at least 9 paid subscriptions spread across video, music, and gaming. And there’s no doubt that the more subscriptions one has, the more difficult it becomes to keep track of all of them.  While several mobile apps help track subscriptions, very few of them do this with an exclusive bank partnership. This is a great opportunity for banks to collaborate with fintech firms and develop a subscription management app, or feature (into their existing app). This will allow bank customers to manage their entire subscription lifecycle, including the purchase of new subscriptions, tracking the amount of money spent, canceling unwanted subscriptions, etc. Another advantage of such collaboration for banks is the prospect for cost savings related to customer service. Similarly, cryptocurrency investment and trading services are another area with great potential. The cryptocurrency boom, which started peaking in February 2020, is still at an all-time high. In fact, a [report by Crypto.com](https://assets.ctfassets.net/hfgyig42jimx/5u8QqK4lqjEgL506mOx4m3/d44d8e204aecfc75a839e2a9d505f5d1/Crypto.com_Data_Report_-_On-chain_Market_Sizing.pdf), which came out at the beginning of this year estimated the total number of global crypto users to be over 100 million. While most banks seem to discourage their customers from buying cryptocurrencies using their cards, with crypto becoming more mainstream and being used even in the purchase of goods, several banks are now reconsidering this decision. Providing Bitcoin wallets and other crypto trading services can certainly be an opportunity to generate additional revenue.  In addition to these prominent opportunities, banks may also be able to take advantage of a variety of other opportunities such as data breach and identity risk management, wealth transfer management, etc.  Benefits of Fintech collaboration with banks -------------------------------------------- * **Increased reputation** One thing you can expect when two companies collaborate is for one of the collaborating companies to have a strong reputation, which will be reflected in the other company as well. A fintech company that partners with a bank can benefit from the bank’s popularity and reputation, benefiting all parties involved. Customers will also perceive both organizations as looking out for their interests by doing this.  * **Availability of new functions and features** In partnership with a fintech company, the bank can provide new services and features like money management tools and mobile check deposits. * **Ease of use and access** With the help of a fintech firm, a bank can offer consumers an intuitive and simple-to-use platform using the latter’s technical skills and user experience expertise. * **Wider customer base** Together, Fintech and banks will be able to tap into each other’s existing client base, expanding their market share and contacting previously unreachable customers. * **Reduced costs** It can often be more cost-effective for banks to collaborate with fintech firms on improving their digital services than enhancing these services internally. Conclusion ---------- Partnerships between banks and Fintech can offer several benefits, but they can also have potential drawbacks, particularly relating to legal requirements, security, and recognition issues. However, if the partnership overcomes these obstacles, the potential for growth and profit for both parties, as well as the benefits for customers, is endless.  Thanks to Neobanks like [Salt](https://www.salt.pe/), customers can now fully experience the best of both worlds. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Debunking Common Myths About Import Export Businesses Author: Ankit Parasher Published: 2021-07-27 Tags: export/import, exporting, import and export, import/export, importing URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/f1-745x1024-1638878670142-compressed.png) Importing and exporting, or international trade in general opens the doors to several new opportunities for a business. Especially after the expansion and widespread adoption of the Internet and e-commerce, businesses have been competing globally by importing and exporting goods. As a business owner, you’ve most likely considered importing and exporting goods. And, again as a business owner, you’re likely to have been anxious about whether exporting will be too difficult or too expensive to sell your products in a foreign country. Well, you’re not alone. Several first-time exporters/importers and firm managers have fallen prey to myths about the entire process that have stopped them from even thinking of entering the import/export business. Let’s check out some of the crucial facts that will help a first-time exporter clear all his misconceptions. 1\. Myth: My business is too small to go global ----------------------------------------------- More often than not, several business owners underestimate themselves and think that only large firms can export successfully. They believe that widespread recognition, abundant resources, and formal export departments are all prerequisites for exports – and these are often the domain of larger firms.  **Reality**: While the truth is that large firms typically account for far more total exports, an indisputable fact is that, in most countries, the vast majority of exporting firms are small and medium-sized enterprises (SMEs). 2\. Myth: The cost burns my pocket ---------------------------------- Several business owners often shy away from exporting because they will incur extra expenses on hiring new employees, marketing abroad, and expanding production.  **Reality**: There are several low-cost strategies for businesses to market and promote abroad and handle new export orders and finances without hiring new staff or setting up a whole export department. A prominent way to do this is by generating trade leads at little or no cost and finding qualified overseas distributors through various Commodity Boards and Export Promotion Councils. 3\. Myth: I cannot compete with the big leagues ----------------------------------------------- Businesses and their owners are often held back by the thought that their products are unknown and prices are too high for foreign markets. **Reality**: If the product is recognized in the domestic market, it’s a huge plus point, but even if the product is unknown in a foreign market, there are no limits. Low demand for a product doesn’t indicate that it will also not be accepted in the international market. While price is an important factor, it is important to understand that it is not the only selling point. Several other competitive factors such as quality, service, and consumer taste are all great selling points that may even override price. Moreover, in countries with a strong currency, it is less likely for the prices of products to be relatively higher than consumer expectations.  4\. Myth: Risky business ------------------------ Exporting/importing is often considered to be a risky business with several complications. However, traders and business owners need to understand that selling and not getting paid has risks even in the domestic market. However, with reasonable precautions, these can be reduced.  **Reality**: Any risk can be identified and reduced through affordable assistance now available through the Commerce Department or your local Chamber of Commerce. To assure you get paid, you can also use Letters of Credit (L/Cs). An L/C is a letter from a bank undertaking that a buyer’s payment to a seller will be for the correct amount and received on time. If the buyer cannot make payment on the purchase, the bank will cover the total or remaining amount of the purchase. Proper documentation can minimize the risk associated with the export business. And now that selling things internationally has become safe, routine, and efficient, trade finance and banking are also evolving. 5\. Myth: It’s complicated -------------------------- Exporting is often seen as complicated due to foreign laws and documentation rules, in addition to language barriers. **Reality**: Although English is widely used and preferred as the primary language in the global business context, even if businesses need to get acquainted with another language, interpreters and translators are readily available in most places. You can also learn as you go because cultural knowledge is always helpful.  Besides, one does not need to be an expert to export. There is an abundance of resources available online that helps first-time exporters with the ins and outs of export operations. The government of India and its associated agencies like Commodity Boards and Export Promotion Councils also provide guidelines to the exporters. Import Export Myths: Final words -------------------------------- Common “negative” myths about exporting are ubiquitous in the business world, and the battle between facts vs myths has always existed. However, businesses shouldn’t make their decision to export/import solely based on myths and should spend time and resources to research opportunities, weaknesses, and risks. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Freelance 101: Simple Ways To Put Your Finances on Autopilot Author: Ankit Parasher Published: 2021-07-22 Tags: freelance, finance URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogj5-1-745x1024-1643957941366-compressed.png) __Cherry_ Sophomore recently left his high-paying corporate job to work full-time as a freelancer. All upbeat about his new beginnings, he worked hard on several successful projects and was able to earn quite decently. He had a single bank account and a credit card for all his work-related and personal needs. For the first few days, he judiciously recorded all his expenses on a spreadsheet, but after a few days, the work pressure and deadlines made him lose track of things. Unsurprisingly, as the month waned, Cherry was struggling to match his accounts and also missed paying his life insurance premium. He knew he needed to automate his finances as much as possible._  We, humans, have a relatively short memory bandwidth. Keeping a tab on ten things at a time isn’t a feasible solution. It would only make you lose your wits more than you lose your hard-earned income. Just give yourself a minute and think over, when was the last time you looked into your mutual fund policies or investment plans, whose files lay stacked up nicely in one corner of your cupboard. You keep delaying until the danger bell starts tolling. It is ironic that we never forget to keep enough milk or veggies for the next day as we won’t get our hot cuppa of tea and a nice warm breakfast, but we keep postponing managing our finances and investments that would eventually add to our existing wealth.  Why Even Automate? ------------------ Putting your finances on autopilot mode, especially for a freelancer, has its own utilities. First of all, A freelancer doesn’t get a lump sum salary amount credited into their accounts. Usually, the salary an employee receives is the ‘cash in hand’ fund after several deductions such as employee provident fund scheme, pension scheme, group health insurance, and so on. For a freelancer, the income trickles in on a project basis, in fragments, and isn’t even regular or fixed. Also, the income received is the gross amount from which deductions for both work and office expenses have to be made, provisions for the future have to be set aside, premiums and installments have to be made!  Above all, a freelancer has to budget his earnings in order to decide their tax bracket and make provisions for the same. A sound financial plan isn’t complete without a share for savings and investments. Does hearing all this make you think how much easier it is to earn than to manage what you have earned? Pretty understandable.  Putting your finances on autopilot means making arrangements for your financial tasks and obligations such as bills, taxes, investments, and budget without going over them each month.  The Freelance 101 Guide to Managing Your Finances  -------------------------------------------------- Automation frees up valuable time which can be better utilized in your work or doing things you enjoy. You can have timely payments, negligible miscalculations, and lessened financial worries using these simple ways to automate your finances: ### The 50/20/30 Budgeting Rule Every freelancer has unique needs, some might prefer working from their study while others might prefer a co-working space. Some need more fixed assets while others need to spend more on raw materials and supplies. Based on your unique situation, assume an approximate monthly income for yourself. You could use the 50/20/30 as a guide to planning your expenses accordingly. 50% of the budget allocation is for essential expenses, 20% for savings, and 30% for personal lifestyle needs out of your after-tax income. Tweak the ratio to suit your requirements and create a financial plan around it to limit your expenses within the limits set by you. This habit of pre assigning funds can go a long way in helping you achieve your financial goals.  ### Set up Automatic Payments as a Freelancer You can start by creating a bills folder, preferably, in your email account, and transfer all the monthly and weekly payments there. This would help you ensure what to put on autopilot and what not. Use direct debit to pay your bills automatically.  Open a new bank account with net banking facilities to be used specifically for your recurring monthly expenses. An app, if available for the aforementioned bank account can come in quite handy. Set up automatic payments to be paid out of your new account for less-flexible but recurring expenses such as electricity, rent, insurance, loan installments, premiums, etc.  ### Make Room for Savings  Setting aside funds for future emergencies and life’s surprises is paramount for any freelancer to smoothen the bumps and troughs in their lives. You could open a new bank account just to serve this purpose that doesn’t have any bill pay or debit card features. A direct deposit from your income account to this account of up to 20% of your income after tax is recommended. Try and make it difficult for you to access this money- go for a term deposit or a recurring deposit or any of the government saving schemes and set up a direct deposit from your income account.  ### Automate Your Investments As freelancers, tight on budget or no, it is up to you to decide your investment goals and what percentage of your savings should go into investments. Based on your risk appetite, list down your investment options such as stocks, bonds, funds that would form a part of your investment portfolio. Several country-specific tax breaks and exemptions are available on such investments. Research well for the same before automating the funds into specific investments.  ### Tax Management as a Freelancer As an employee earning a fixed salary, your tax worries are minimal all thanks to the accounts department of your organization and your CA. When it comes to freelancing, there is no such vocation available, the income you would be earning in the entire year will be fluctuating. Go for an estimate of 30% of our income to be set aside for taxes from every payment you receive. Saving up in advance for your taxes accruing at the end of the year takes discipline and restraint on your part. Believe us, the discipline is worth it. If you are unsure about whether your funds would remain intact in your personal account, open another account for tax purposes only.  Opening so many accounts might sound freakish but that’s the best way you can segregate and tether your finances without much intermediation on your part. However, managing separate accounts is in itself a management task. That’s where Neobanks can help freelancers by automating their financial needs via a variety of utilities.  Neobanks like [Salt](https://salt.pe/) offer banking services online to their customers at lower costs and deliver distinctive customer-specific services such as the convenience of opening accounts, seamless payments, remittance solutions, transfer solutions, and a lot more. Freelancers, especially, can alleviate their financial management hassles via such banks integrating tech innovations and banking like never before. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Zomato's IPO: A Case Study Author: Ankit Parasher Published: 2021-07-15 Tags: zomato, zomato ipo URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/pasted-image-0-4-1-1024x569-1643959425529-compressed.png) Source: Indian Express Zomato, the Indian food delivery giant, and a favorite app for many of us has filed to go public, with a three-day Initial Public Offering (IPO) scheduled for July 14 to raise approximately Rs 9,375. They will be the first high-profile tech startup in India to go public. And it deserves our attention. Zomato as a brand has been very popular amongst the younger audience, so it’s not surprising if you were among those who contributed to the incredible record of 4,100 [orders per minute (OPM)](https://www.businesstoday.in/latest/trends/story/zomato-receives-record-4100-orders-per-minute-on-new-years-eve-283215-2021-01-01) on New Year’s Eve. With the pandemic situation, Zomato has gained popularity among senior citizens as well as middle-aged people. A Background Run ================ Deepinder Goyal and Pankaj Chaddah founded this well-known Gurgaon-based startup 12 years ago. It began as an online restaurant directory called ‘Foodiebay.’ After successfully operating in major Indian cities, this on-demand food delivery app expanded its operations internationally in 2014. Zomato received over [403 million orders](https://www.moneycontrol.com/news/business/how-zomato-makes-money-ipo-7120011.html) with a gross order value of Rs 112,209 million during the fiscal year 2020, up from Rs 30.6 million in 2019 and Rs 13,341.4 million in 2018. With 1.4 million restaurants listed and 3 million [average monthly orders](https://expandedramblings.com/index.php/zomato-facts-statistics/), Zomato is already shaping the future of online food delivery. Zomato brings you everything from the smallest eateries to the most upscale restaurants. It’s fantastic! So here’s the next question…. How does it earn profits? ------------------------- Zomato’s revenue is not solely derived from food delivery; it has multiple revenue streams, indicating that its business model is diverse. Zomato charges restaurants a commission based on the number of orders they receive. While users pay a delivery fee, Zomato makes money by charging restaurants a commission on each delivery, split between the delivery partner and the company. Apart from food orders, it also charges restaurants who pay to have their events or offers promoted and their overall banner, resulting in increased visibility and conversions from Zomato users. You know, similar to Google. Restaurant advertising and marketing accounts for a sizable portion of total revenue, accounting for 72 percent of total revenue. It charges users an entry fee to attend Zomaland, where, in addition to food, they can see live musical performances and other acts. It also provides consulting services, such as advice on the demand for new eateries in a specific area. Consulting and food delivery services contribute 3% and 2%, respectively. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/zomato-blog-01-1638877713732-compressed.jpg) **Zomato’s IPO valuation** Zomato reported a Rs 490 crore loss and a negative operating cash flow of more than Rs 1,000 crore. That is not reassuring. Revenue was down 23 percent to $283 million for the fiscal year that ended in March of this year, and losses were down 66 percent to $110 million, compared to the same period last year. This year has been hugely challenging for Zomato. #### **Delicious stats from SEBI filing:**  In the three months since filing its prospectus with SEBI, Zomato has increased its offer size by Rs 1,500 crore and its value by Rs 15,000 crore. _According to the 420-page DRHP document,_ * The total size of the IPO — Rs 9,375 crore. * The primary issue has a face value of Rs 9,000 crore. * The secondary issue is worth Rs 375 crore, according to early investor Info Edge. * The price range for the offer is Rs 72-76 per equity share. * The QIB portion will be 75% of the net offer, the retail portion will be 10% of the net offer, and the non-institutional portion will be no more than 15% of the net offer. What’s in there for you? ------------------------ Zomato’s price is nearly eight times its annual revenue. What are you talking about? So, do you want to invest or not? It is a personal decision to make. You should think about it if you understand the business and how they make money. Because it is extremely expensive, you must evaluate the value rationally. How do you think you compare? You can’t, of course. They don’t have any peers listed. And, except for Doordash, a US food delivery company, most overseas IPOs have been a flop. It isn’t easy to make any assumptions about whether Zomato can justify its exorbitant valuation. There would be challenges in the market at all times, and there would never be a time when there would be no volatility. So you’ll need to dig a little deeper to determine the company’s intrinsic value and create your narrative. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Look At Your Finances Without Fear Author: Ankit Parasher Published: 2021-07-14 Tags: debt, finances, Personal Finance, unemployment, unfavorable situations URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogj1-1-745x1024-1643959503559-compressed.png) “Beware of little expenses; a small leak will sink a great ship.” – **Benjamin Franklin**. It makes perfect sense to listen when a genuine polymath speaks about life lessons. We hope we tipped you off to the article you’re about to read! According to studies, over 1.5 million people in England alone suffer from debt and mental health issues. Half of those in serious debt (46%) also have a mental health problem. The numbers aren’t very different in several other regions across the world. [Covid induced financial stress](https://salt.pe/2021/05/18/dealing-with-financial-stress-during-covid-19/) has only made matters worse. We’d be fools to ignore all of that data and statistics blaring in our ears. But does it make a difference? Imagine waking up one day to find that all of your bills are due, that you need to pay the mortgage you took out months ago for your lovely dream house, and that your family is experiencing a medical emergency. What do you think you should do now? You are aware that life can be quite unexpectedly unpredictable at times. It contains some unfavorable twists and turns. Naturally, you were all prepared for situations like this. You also saved money by keeping this in mind. Okay, you saved, didn’t you? NO? Is that frightening? Naturally, it is. Return to sleep because you never want this to happen; it’s nothing short of a nightmare. According to a nationwide survey conducted by the [Agewell Foundation](https://www.agewellfoundation.org/images/Changing%20Income-Expenditure%20Pattern%20of%20Older%20Persons%20Apr-2018%20-%20National.pdf), 65 percent of India’s older generation rely on others for financial support and face financial fears. While we do have a close-knit, community-centric society, these numbers aren’t pleasing to look at. So how can we skip such a situation and [avoid financial mistakes](https://salt.pe/2021/03/01/8-most-common-financial-mistakes-you-may-be-doing-and-how-to-avoid-them/)? How to take control of your finances ==================================== According to 86 percent of respondents in a [Money and Mental Health survey](https://www.moneyandmentalhealth.org/money-and-mental-health-facts/) of nearly 5,500 people with mental health problems, their financial situation has exacerbated their mental health problems. We all have financial fears, but worrying accomplishes nothing. Facing your fears and taking action helps to eliminate them. Let us take control of our finances before they take control of us. Making the first call to get you started on the road to financial security is sometimes the most crucial step. Let us overcome our financial apprehensions and make it a way of life that will help us avoid jeopardizing our financial future. How are you able to do this? 1. **Not being able to save enough**: if you believe that the only way to save money is to make more money. Then think about it carefully, and you might be wrong. Because it has nothing to do with how much money you make and everything to do with how much money you save. The significant disparity between your income and expenses is what makes all the difference. It would be best if you first determined your wants and needs and then spent accordingly. 1. **Unemployment**: Unemployment is a terrifying thought. And it’s challenging when all of your bills are due, and you rely on your paycheck. So, now that it’s gone, what happens? Rainy days are unanticipated. For such worst-case scenarios, it is critical to plan at least a three-month budget. And, because you are unemployed, this is an excellent time to reflect on yourself and develop new skills that will enable you to generate multiple income streams. 1. **Unfavorable financial situation:** Yes, an unfavorable financial crisis can take any form. A medical emergency, an unanticipated bill, an unexpected family event, or a friend in need of financial assistance Such financial storms can only be avoided if you are prepared for them, which you can do by keeping your investment portfolio, which is the centerpiece of a well-constructed long-term financial plan, in good shape. Your investment strategies must be tailored to your specific goals, risk tolerance, and timeframe to not only stay on track but also to avoid emotional decisions that can derail your plans. 1. **Never getting out of debt:** when you have [debt (credit card](https://salt.pe/2021/06/09/credit-card-overseas-charges-you-need-to-know-about/) or others) that has been due for a long time, and you don’t know how you’ll ever get out of it by paying it off – that sense of helplessness or lack of control can be fairly damaging. The first thing you can do is accept the situation rather than flee from it. Accepting it implies not incurring any new debts, which will only exacerbate the situation. You can prioritize the ones with the highest costs and pay them off first, which may include unsecured loans such as credit card bills. The timely repayment of EMIs is essential to avoid incurring new debts and avoiding unnecessary expenses. If you think your situation is dire, you can seek professional debt counseling services to help you create a budget and set spending limits. Use whatever method works best for you to avoid debt traps and put an end to your worries. After all, you would never want to be concerned about your money and how you keep it. At Salt, we understand. It’s why **Salt** is on a mission to bring neo banking to everyone, reduce banking costs and allow you to leverage the benefits of a leaner, cleaner model. Check us out at the [Salt website](https://www.salt.pe). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Makes Gujarat the Land of Entrepreneurs Author: Ankit Parasher Published: 2021-07-08 Tags: Business, entrepreneurship, gujarat URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/bloggujarat4-01-2-1024x576-1643959551052-compressed.jpeg) Business and Gujarat in India are synonymous. Entrepreneurship is revered like a religion in Gujarat. However small, most of the Gujarati families here are engaged in some kind of a business or the other. Entrepreneurship in Gujarat stems from family values. Gujaratis have specialized in the art of creating demand for new and different products and services.  History ------- But this phenomenon is nothing new. Records from Roman, Greek, and Arab visitors since times immemorial have taken note of this region’s entrepreneurial spirit. Trade guilds called ‘shrenis’ and ‘mahajans’ have been in existence since the early days of the 18th century. This region was famous for various industries like tanning, textiles, perfumes, and sugar, as referenced by foreign travelers Pliny and Marco Polo. The American Civil War too brought fortunes for the region for the huge demand for cotton, which consequently led Premchand Roychand, the founder of BSE, his name. The question then one thinks, what is it actually that makes Gujarat the land of entrepreneurs? Reasons ------- * **Long coastline:** India’s longest coastline in Gujarat has been not just beneficial for the region recently, but it has contributed to global trade since times immemorial. Ports of Bharuch, Surat, and Cambay flourish due to extensive trade with western nations, including the British, who established their first factory in Surat. * **Family Background:** Gujarati families are tightly-knit traditionally, with one or another member being involved in some kind of business. Children get their first business lessons under their fathers and grandfathers before making their mark when they grow up. One of the best examples is Reliance Industries, started by Dhirubhai Ambani, currently handled by his family. * **Risk-Takers:** People of Gujarat have never been shy of taking risks. They try to come up with innovative ways to make a living by establishing a certain kind of business. They understand that greater risks mean greater profits, and that lets them move forward. * **Valuing opportunity and evolution:** Learning is the foundation of everything. The people of the region value even the basic opportunities in the business space to understand and learn the nuances of the trade. This lets them evolve over time to finally work on their own businesses and enjoy the sweet fruits of their hard work. ![](https://i0.wp.com/salt.pe/wp-content/uploads/2021/07/pasted-image-0-3-1.png?resize=512%2C344&ssl=1) Ahmedabad, India Ahmedabad, India * **Higher disposable income:** Gujaratis are among the richest communities in India. This has ensured that people can save enough while putting the rest of money into other tasks like entrepreneurship. Madhapar village in the Kutch district of Gujarat is the richest village in India. Another factor for high incomes is the fact that Gujarat has one of the largest numbers of NRIs, which has ensured higher foreign remittance to the state over the years. * **Proximity to the financial capital:** Till 1960, Gujarat was part of the Bombay state. But the effect of proximity to Mumbai is present even today. People hitch their fortunes to the entrepreneurship wagon moving towards Mumbai after starting their journey in Gujarat, as it gives them a cushion before moving forward. * **Skill development:** Institutes like ITIs and EDII, Ahmedabad contribute to their overall development regarding different skill-sets. Developing their skills has ensured that they are best at what they do and, in turn, increase their gains. Conclusion ---------- One can’t list enough factors for Gujarat being an entrepreneurship-rich state. But the growth of the state and its communities has been phenomenal over the years in the field of business and entrepreneurship. Its people have created a different landscape to enable better entrepreneurship in the region. This region has been suggested to be one of the greatest startup ecosystems in the coming future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Technology Can Increase Workplace Productivity for Businesses Author: Ankit Parasher Published: 2021-06-30 Tags: business technology, integration, productivity URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogj3-745x1024-1643959743244-compressed.png) Businesses are always looking for ways to create a more efficient workforce, have better productivity and come up with more innovation. For businesses to have this, technological integration has helped and is going to help more of this in the future. Fluid and complex roles with increasing workloads have meant that both employees and employers are looking for ways to smoothen the process using technology.  One of the first pioneering technologies was the conveyor belt introduced by Henry Ford for mass-producing the Ford Model T cars, where there was more productivity, better specialization, and easier employee integration. Some might have an opinion that technology would decrease productivity rather than doing the opposite; the fact that should be considered is using the correct and judicious methods of technology. Several technologies have contributed to and will keep contributing in the future towards better workplace productivity. Enterprise Resource Planning ---------------------------- Real-time integrated management solutions are mediated by software and technology that can be used by an organization to collect, manage, store and interpret the data. Although ERP systems can be local-based, cloud-based systems are growing in prominence. These systems work using database management systems that track business resources and the status of the business commitments while sharing and facilitating this information to different departments and outside stakeholders. ![](https://lh6.googleusercontent.com/kPkHjcAFGAODuStrXc3OfzAMDVti9UekCY2saFrtGbEv29AfsYV791oRU25b8c7RmYGBCs17jKfFIvTOpXWTtJ44B6gX4zGF7S5-PT-CrRvswbmDkzKAP4giWNOsRW7HFohG999h) Source: [Enterprise resource planning](https://en.wikipedia.org/wiki/Enterprise_resource_planning#/media/File:ERP_Modules.png) ### **Artificial Intelligence** AI has taken hold in almost every field today. Constant evolution, complex customers, and greater data availability mean businesses cannot rely just on traditional methods for driving growth. AI in business helps in increasing efficiency, productivity, and in turn revenue. AI chat-bots make sure your customer interactions do not always need a human behind them.  AI is also used for deriving business intelligence to get better business insights and make analyses based on it. It also benefits with automation, better-targeted marketing, and reaching and avoiding frauds among other things.  Business Process Automation --------------------------- BPA helps streamline a business to achieve digital transformation, improve service quality and delivery, and contain costs while achieving business simplicity. It can be implemented in different business areas like marketing, workflow, and sales. The interface is also simplified so that even non-technical staff can also use it. The main advantage of this is the speed of deployment. Container as a Service ---------------------- Cloud-based services are in prominence now. CaaS is another cloud service that allows IT departments and software developers to upload, organize, scale, run, manage and stop containers using container-based visualization. A container is a software package meant to run on host systems and CaaS enables teams to deploy and scale them according to their infrastructure and usage rapidly. The benefits of using this are that it is easier to set up the containers, users only have to pay for the resources they use, and the environment is secure, stable, and responsive.  Tech’s potential is not limited to increasing workplace productivity. Tools like Motivosity help the employees have a better understanding of the people around them and help them with engagement. Building social connections across the organization would mean that tight-knit employees would contribute more. Similarly Slack offers tools for team collaboration and third-party integration. When organizations had to switch to remote working, tools and sites like Zoom came to their rescue with their video-conferencing platform which also provides screen sharing and recording.  Technology has given businesses easier and better ways to expand and integrate global operations. [Salt.Pe](https://salt.pe/) enables businesses with a one-stop portal to manage their global currency accounts, payments, collections, and expenses. It aims to provide a seamless experience for everyone in the financial department by taking care of all business jargon and complex codes while you can relax. In other words, Salt delivers a neo-banking experience by blurring global boundaries with its unique products offerings. Efficient multi-currency support at Salt simplifies foreign exchange management tasks and automatically tracks any forex fluctuations, allowing finance teams to focus on more value-added tasks and assisting small businesses to ease their work on global business operations. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## MSME Day: How the MSMEs in India Are Fighting Back the Covid 2nd Wave Author: Udita Pal Published: 2021-06-27 Tags: International MSME Day, MSME Day, MSMEs in India URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogj4-745x1024-1643959719770-compressed.png) The UN General assembly marks the importance of MSMEs by celebrating World Micro, Small, and Medium-sized Enterprises (MSME) Day annually on 27th June. As we approach the date for 2021, let’s take a moment to recognize how these enterprises contribute towards sustainable development in the world economy.  What are MSMEs? =============== Businesses run on micro, small and medium scale are known as MSMEs. Production, processing, manufacturing, and preserving are the main functions of these businesses. MSMEs are considered to be a pillar of the Indian economy. They not only employ millions of people but also bring stability to the economy through exports. The Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006 of India divided MSMEs into two sub-sectors. One of which comprises manufacturing enterprises and the other service enterprises. Under the revised classification of the MSMED Act of 2006, MSMEs are categorized based on their annual turnover and investment in plant/machinery/equipment and not on whether they belong to the manufacturing or service sector. MSMEs, the pillar of the Indian Economy --------------------------------------- In India, MSMEs are valued for accelerating economic growth and equitable development. These enterprises have lower capital costs compared to their large-scale competitors. They also give owners the chance of easy decision-making and management of their companies through limited resources. The MSME sector has the highest employment growth rate within India and is industrializing the rural and backward areas of the country. Marginalized sections of the society are empowered for socio-economic growth through this sector. Make in India is an initiative taken by the Indian Government to create an environment for foreign capital investments. Its primary objective is to manufacture products and services in the country and open new sectors for these investments.  So, naturally then, MSMEs are in the spotlight. The government encourages the creation of new enterprises and start-ups. The Ministry of Micro, Small, and Medium Enterprises envisions the growth of this sector through schemes and cooperation with other ministries, State Governments, etc. ### Impact of Covid-19 When the pandemic shook the world and its economy, thousands of people became jobless, and businesses ran dry. The MSMEs sector was also significantly affected.  India was hit by coronavirus at the beginning of the year 2020. By May 2020, Mumbai, Delhi, Ahmedabad, Chennai, and Thane accounted for the highest number of positive cases. An increasing number of businesses were completely shut down last year. Scarce consumers and earnings began to shake the MSME sector during the lockdown in 2020, and there was a reduction in the availability of resources. Laborers had also begun migrating back to their villages.  When everything seemed hopeless, the Atmanirbhar Bharat Abhiyan relief package gave hope to the MSME owners. Financial aid of Rs. 20 lakh crore was provided to the MSME sector. This scheme included collateral-free business loans and equity infusions as well. ![](https://lh5.googleusercontent.com/L8LdhZ3VlRUNwriRbssL2gyrju_EuZnuSh9n05Ux8LcMFLOuVnBHe3ytObVKYH7G-vWq_bEITexTqzCmImJx3Jggeb4ErVfNAx86fJLCEGtYZUQGVG8VXrrYPVlYN7JFv-tTuHoC) Come the year 2021; nothing could’ve prepared India for the calamity brought by the second wave of the coronavirus. In March 2021, this wave was more disastrous than its predecessor. It hit many parts of the country, and there was a spike in positive cases in Maharashtra, Uttar Pradesh, Chattisgarh, Karnataka, and NCR- Delhi. Maharashtra topped this list state-wise, and India now tops worldwide in the highest number of new and active cases. The Indian economy and MSMEs were already unstable due to the backlog brought by the pandemic and the second wave wrecked the hard work of many of these enterprises in building back their businesses. Around 64.3 million MSMEs are struggling to keep their businesses afloat. According to a survey conducted by LocalCircles, 59% of start-ups and MSMEs will either reduce their scale of operations, sell away, or shut down in the coming months. [Starting a new business in a pandemic](https://salt.pe/2020/08/17/starting-a-new-business-during-pandemic/) is obviously hard. #### How can MSMEs adapt to the pandemic? With the adamant growth of digitalization in the past decade, some businesses wielded this route in stepping up their game. In India, however, not many were accustomed to digitizing their businesses. This unpreparedness created a stir in the MSME community during the pandemic. Albeit, the second wave didn’t have a restricting lockdown compared to the first. It still isn’t enough to come out of the financial crunch and pressure the MSMEs are facing. The government approved manufacturing in many states. Construction is also permitted; however, lack of labor, resources, and capital has kept the work on hold. As a result, delivery cycles have been reduced. However, healthcare and essential product-based MSMEs are profiting through the pandemic.  The current situation in India requires adaptability to save MSMEs. E-commerce is booming significantly, and it is changing the paradigm of businesses. The Cisco India SMB Digital Maturity Study 2020 states that digitalizing MSMEs could add 158-216 billion USD to India’s GDP. It could add to the recovery process of the Indian economy as well. ![](https://lh3.googleusercontent.com/NvVM43YfxtX8Ckbf7Vlc80XPPWzJaq7T9YM9RxXnKFuGptvOtR98DGgGS_wCG-Dt6UPuPdPnQhdJOUk-ci6U97yDtgObK4WceQyBRMxp495rGzdiO526oNg-ISgBytYzcB4z9b4G) The RBI has announced incentives for MSMEs to face the pandemic. Banks are permitted to deduct credit that has been disbursed to newer MSME borrowers. They have also been told to reassess the working capital sanctioned limits, cycles, margins, and more provided to the owners. Along with [tax waivers, micro, small and medium-scale businesses](https://salt.pe/2021/05/05/a-guide-to-different-types-of-taxes-smes-msmes-pay-for-international-business/) also require interest-free debt schemes. With their limited income, [small business financial help](https://salt.pe/2020/08/20/how-to-manage-your-small-business-finances-better/) will be crucial to making MSMEs stand on their feet again. ##### Conclusion Since MSMEs are crucial for the socio-economic development of rural and backward communities, in a way, coronavirus has prompted the country to be ever ready in forming new business ideas and growth formulas. Scarce laborers available in urban areas have made these businesses find new ways and types of machinery to fill the gap. The country is now getting digitized in all aspects. Along with all the technical aspects needed to support MSMEs in rebuilding and sustaining, grit and determination of the enterprises are a silver lining in fighting through the pandemic. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Fintech is Changing the Global Remittance Space Author: Ankit Parasher Published: 2021-06-22 Tags: global remittance, international money transfer URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/gghh-745x1024-1643959790930-compressed.png) It was just a few years ago when the finance industry got its technological shake-up. And a new era is already here, with innovation and creativity launching financial technology on its path to revolutionizing everything – from how money moves worldwide to how people invest. It’s hard to imagine going back now. But we can certainly look back to better understand what’s unfolded. What exactly is Fintech, and how is it changing the global remittance space? What is fintech? ---------------- Borrowing from Wikipedia, fintech or financial technology is the technology and innovation that aims to compete with traditional financial methods in delivering financial services. It is an emerging industry that uses technology to improve activities in finance. Fintech is in a rapid state of growth. In 2018, the total number of fintech startups was more than 2,000 – double the number from 2016. It’s estimated that shortly, more than $20 billion will be invested in fintech startups. Fintech isn’t just about startups and cryptocurrencies like Bitcoin, but also traditional banks. It has the potential to change an industry that spans multiple countries. For example, in addition to Western Union, money transfer services like MoneyGram and Western Union are also popular choices for sending money back home or buying products online from China. The Global Remittance Space Innovates Like Nothing Else ------------------------------------------------------- We can look at these changes from both a macro and micro level. From the macro level, there’s more competition among companies. Fintech startups are creating new digital payment options that can be more convenient and secure than traditional providers like Western Union. Some of these are even offering low fee or zero fee transfer options to customers. You also have in-country mobile payment apps for sending money to friends and family back home. The micro-level is about how people are making their day-to-day money transfers. Micropayments usually involve small amounts of money.  So, for example, you could use it to pay a website for downloading a music track or making a small donation to charity. It can also help with microlending, helping people get loans for small sums of money. And globally, this is the most significant source of income for many mobile businesses. What’s Fuelling Growth in Fintech? ---------------------------------- Many factors are creating this increase in interest in fintech technologies. One reason is that financial services providers need to find ways to attract new customers and keep their existing clients happy and loyal.  And this is where fintech can come in very handy. Incumbents don’t need to get rid of their existing customers. Instead, they need to appeal to a new set of users through digital payments and smart technologies. Banks are opening new branches in emerging markets worldwide to cash in on growth opportunities. It’s leading to interesting results. You have an increasing number of people trying to save money for their children’s education using microloans. The most popular way to do this is through mobile devices. A great example is M-Pesa, a mobile payment app offering services to millions of people. But, of course, there are hundreds of other applications too. It’s also noteworthy that 40% of all global internet users use social media networks like Facebook and Twitter every month. This means they’re getting introduced to new information about how fintech can be used in their everyday lives. But, again, there are no intermediaries required. Just a phone and an internet connection and new users are then turning into fintech-friendly customers. Finally, the other factor driving the growth of fintech is simply that people are getting more comfortable using technology to solve problems in their daily lives. With exceedingly efficient and exciting rounds of evolution in financial technology, fintech companies can deliver on superior innovations to serve customers. Blockchain technology, cloud computing, AI, and Machine Learning seem to be prevalent in most innovations. With all the disruptive changes they’ve brought to the world of financial services, fintech companies promise to make an even more significant impact this coming decade. Conclusion ---------- [Fintech](https://salt.pe/2020/08/06/fintech-101-a-beginners-guide-to-common-fintech-jargon/) has been a game-changer for all involved. While some feel that fintech might take a while to expand its use, others argue that the revolution is already here. It is undoubtedly piquing everyone’s interest. It has redefined the way people make cross-border money transfers and has made international remittance cost-effective, secure, and swift. We at Salt focused on disrupting the arenas where fintech potential vastly outstripped supply – international remittance. With time, fintech’s role in international remittance will become central to innovation and the next big leaps, making transferring money across borders merely one case of technology that’s already changed lives in more ways than we can count. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Checklist for Choosing the Best Money Transfer Service for Yourself Author: Ankit Parasher Published: 2021-06-16 Tags: best money transfer service, money transfer sevice, transfer money in India URL: https://salt.pe/blog/null ![Use this checklist for choosing the best money transfer service for yourself. Via low transaction and exchange rates, you can save money on transferring funds.](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog11-1643959882598-compressed.png) Use this checklist for choosing the best money transfer service for yourself. Via low transaction and exchange rates, you can save money on transferring funds. Money is substantial; it’s a means to an end. While spending money, we often think about how we can spend it in the most optimal way possible. Fortunately, we don’t need to go to traditional banks or post offices to transfer funds anymore. In a world where time is money, the market has demanded (and received) the best money transfer services for themselves that are fast, secure and cost-efficient. Thanks to the digitization of banks and financial services, many varied routes have opened up to transfer money locally or internationally. Even just a few years ago, sending money abroad was obscenely expensive and time-consuming! Now it has become cheaper and quicker, and with that, there is immense competition between financial service providers for sending remittances. Many money transfer services nationally and internationally try to keep their customers satisfied with the best rates so that other companies don’t take away their customers. As a customer, there are so many money transfer services available. If these options confuse you, you can look into the checklist provided below for choosing the best money transfer service provider for yourself! Checklist for Choosing the best money transfer service ====================================================== Here are some points to look for in our checklist. 1. Transfer fees The most crucial point to look for when choosing a wire-transfer service. As a sender, you need to look at the rate they are charging for transferring funds. Many foreign exchange services provide lower transaction fees compared to banks. Many companies also have special offers, promotional codes, and deals for new customers. If you want to know more about transaction fees before you plan your next trip abroad, check out this [blog on credit card overseas charges](https://salt.pe/tag/credit-card-overseas-charges/). 1. Rate of exchange Another essential factor to keep in mind is exchange rates. These rates keep fluctuating from time to time. So, it would help if you compared the average exchange rates of multiple service providers and selected the best one. Some providers even match the competitive rates of other companies and give offers for the next transaction you make. Always look for such offers. Some offers are applicable for shopping discounts, too. Many service providers send notifications about changing exchange rates. So you can decide which provider is giving you the lowest exchange rate and send money at the right time. 1. Mid-market rates If you’re wondering why there is no fixed exchange rate between money transfer services, the mid-market rates are the reason for that. This rate is the midpoint between buying and selling rates of two currencies at a particular time on the market. The mid-market rate is essentially the ‘fairest’ exchange rate you can get, as it is set naturally by market movements.  Institutions usually set their sell rates above this point and buy rates below this point which essentially amount to hidden profits for them. As the buying and selling rates constantly change based on the demand and supply of every currency, so do exchange rates. So, it is essential to look for the provider with their exchange rate closest to the mid-market range to save money while transferring. 1. Hidden fees Sometimes banks and providers have a higher exchange rate for transferring money during the holidays. Be it Christmas, Diwali, or Eid, sending money on holidays will cost you a much higher exchange rate than non-festive days. To avoid this hidden fee, you should avoid sending money on holidays. You can check your transfer statements over a period of time or enquire with your service provider directly to see if they are charging you hidden fees too. 1. Transfer limits Another point to keep in mind is checking transfer limits for your chosen money transfer service provider. By doing so, you can decide whether your money transfer is cost-effective or not. Some companies might also waive off transaction fees if you transfer a large amount of money through them. 1. Payment options Most senders prefer sending money through online fund transfers from their banks. Especially with the Covid-19 pandemic, it is essential to leverage virtual money transfers as much as possible. Nonetheless, if you want to send money via a cash deposit, cheque or demand draft, you should check if the transfer service has this option available. 1. Options for collecting payments If you are sending money to a receiver, who doesn’t have a bank account, in this case, you can select a transfer service that can make these funds available to the receiver in cash. Always check with your bank or service provider for options of collecting money in the form of demand drafts or cheques in case you need them. 1. Security Your service provider should always comply with the rules and regulations of the countries in which they operate. They also have to meet Electronic Fund Transfer Act (EFTA) standards and other protocols for security against money laundering, deceptive marketing, and other such crimes. Make sure your chosen service provider has clearly stated the international and country-specific standards they adhere to and are approved by the financial regulatory bodies of the countries you wish to transfer money between. 1. Customer service Last but not least, customer service is an essential factor that is often overlooked. For example, as a customer, you might face transaction failures due to network issues, and the deduction of your funds could create panic in your mind. These transaction failures are common, but to resolve such problems, you need excellent customer service. A 24×7 customer service that you can access through chat, call, and email should be prioritized in your search for the best money transfer service. We hope this checklist helps you choose the best money transfer service for making national and international fund transfers. If you want more financial tips and insights, check out [Salt’s blogs](https://salt.pe/blogs/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Credit Card Overseas Charges You Need to Know About Author: Ankit Parasher Published: 2021-06-09 Tags: Credit Card Overseas Charges, Credit Cards, foreign transaction fees URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blogr-1-745x1024-1643960793755-compressed.png) Spending money on a well-deserved vacation is one of our most fulfilling aspirations. On an international trip, many would justifiably point out it’s worth it to spend your hard-earned-saved money. While Covid-19 will hold our travel plans for a while longer,  there’s no changing that most tourist destinations will remain cashless markets. And what’s not to love about that? We can quickly and conveniently splurge on airfares, hotel stops, shopping sprees, fine dining, and more. While it’s certainly easier to use a credit card while spending money abroad. However, credit card spending overseas will undoubtedly shock you unless you are well-versed about Foreign Transaction Fees – that these transaction charges are around 3%. Shopping can cost you an overseas charge: ========================================= In fact, online purchases from foreign websites can cost you a credit card overseas charge, even if you are within India. Buying from kiosks and duty-free shops, mainly linked to overseas accounts, is also how you could be charged fees. Let’s understand them better. Types of surcharges  -------------------- While on a trip, you are bound to keep track of your purchases and exchange rates not to overspend your budget. Any form of transaction made abroad has an overseas fee applied to it. It’s only after you return home from the trip that you frown upon the charges you owe to the bank that significantly shot up by 5 to 6%. To better understand this ‘increased due,’ also known as Credit Card overseas charges, one needs to be aware of the following types of surcharges: Cash Withdrawal Fee  When abroad, if you have used an ATM, it will charge you for cash withdrawal irrespective of the amount you have withdrawn. On every transaction, a 2.5% to 3.5% fee can be applied. Almost all banks charge this fee on withdrawal. Indian credit cards already charge cash withdrawal fees within the country, so it is naturally costlier abroad. 1 to 4% additional charges will be applied to a standard fee per transaction.  ![](https://lh4.googleusercontent.com/5j29nY_8FspiItQu78P5igr4nFsDeQ2BNn8iKC0ibDmRqtm49Yx46D17c0G8U9TzQykUpnifkAvz6lOUzU-GRm7oQC7Q1TagYgXSRfl8uyh1Dmjd3C3Y5eAbR9WhyFB4IUcQx6jY) Conversion Fee  If you hold a credit card in an Indian bank, you need to be mindful of two things. First, the balance you have on your card will be in INR, and second, a conversion rate will be applied after you carry out your transaction from the Indian rupee to the country’s currency where you are visiting. This conversion fee is 1 to 2% for MasterCard and Visa. Currency convergence rates can also differ based on the date of transaction and the date of settlement. The merchant sets an amount of settlement between the bank and credit card owner before the settlement date. Hence, the rate decided on the settlement date will be different compared to the actual transaction date. ### Types of transactions through bank’s perspective  You can conduct primarily two types of transactions based on a bank’s perspective. You either pay in US dollars or in the currency of the country you’ve visited. When performing transactions directly in USD, the Indian rupee is converted into the US dollar, on whichever overseas charges are applied. On the other hand, if transactions are performed in another country’s currency, your rupee will first be converted to USD and then to the following country’s currency. The banks will add overseas charges to it as well. That is just how the conversion rate works all over the world. **Many Indian banks have begun adopting western ideas such as 0% transaction fees credit cards. Premium customers benefit from utilizing such cards and accomplish transactions without additional costs; ain’t that great?** ![](https://lh4.googleusercontent.com/sQG_EhT30B_q0SH4khfL3taXu0DUz06mXdnfjKnqPnpHVQb8R4z0KXVmmRrKcr3uJdr9TAlTd1MJWsM_OR1UNE4TV64PThNxHrYOoQp-J51fsvsMLwAVltyFddISYv0i8OrnV27c) It is advisable to visit your credit card websites to find out about foreign transaction fees per card. Since these charges keep on changing, one should make a point of checking them before traveling. Even while choosing a credit card from any bank, one should check for the lowest transaction fees applicable to it. #### Caution  Financial charges are also applicable to foreign transactions when you fail to pay the due on your credit card on time. This rate would be between 23 to 42%, so be wary about paying your dues. ##### Final Takeaway If you want, you can avoid Credit Card overseas charges/ Foreign transaction fees altogether by exchanging currency before traveling. Even by avoiding using ATMs in foreign countries, you can save money. But then you hit a moot point of not going cashless during your voyage. It also consists of confusing conversion rates or possible theft.  By now, you must be well aware of which credit card will suit you the best. So choose your credit card wisely and enjoy your travel! For more financial insights, head over to your favorite neobank – [Salt’s blog](https://www.salt.pe). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What it means to be an LGBTQ friendly organization Author: Ankit Parasher Published: 2021-06-04 Tags: LGBT friendly, LGBTQ friendly company, LGBTQ Friendly Organization URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/ghhp-1-745x1024-1643960871377-compressed.png) A breakdown of policies and traditional office practices supports lesbian, gay, bisexual, trans and queer employees.  According to [surveys](https://www.outnowconsulting.com/market-reports/lgbt-diversity-show-me-the-business-case-report.aspx), more than 40% of lesbian, gay, and bisexual people and almost 90% of transgender people have experienced employment discrimination, harassment, or mistreatment. Being an LGBTQ-friendly organization comes down to much more than simply non-judgemental allies occupying leadership positions. There are specific policies, benefits, and practices that can improve the lives of LBGTQ people who work for your organization.  Suppose your organization wants to be known as an LGBTQ-friendly organization. In that case, you must formulate policy or build cultural norms in the workplace because the status quo is hostile.  The real-life experiences of LGBTQ people at companies have shown which environments are supportive and which are not. The LGBTQ employees themselves have identified best practices for fostering a welcoming culture. What is an LBGTQ Friendly organization? --------------------------------------- Our working environment balance has been improving. However, a few representatives, unfortunately, still face segregation due to their sexual orientation and gender identity. Companies that include sexual orientation and gender identity in their nondiscrimination policies are a way to identify an LBGTQ friendly organization.  Such companies have made a public commitment to hiring more lesbian, gay, bisexual, transgender, and queer (LGBTQ) employees. The Human Rights Campaign Foundation’s annual [Corporate Equality Index](https://www.hrc.org/resources/corporate-equality-index) (CEI), which rates companies based on LGBTQ equality rating criteria, has four key pillars to be considered among the best companies: * Workforce protections * Inclusive benefits * Corporate social responsibility * Responsible citizenship What you should do for being an LGBTQ supportive workplace ---------------------------------------------------------- #### 1\. Workplace Experience and Culture Within a workplace, in the daily experience of working at a company, there are many ways employers can build an environment that is comfortable for LGBTQ employees and meets their needs. Company documents can use gender-neutral pronouns. They can use examples of queer couples in their writing. That shows a level of consideration about gender identity issues and visibility. It spreads the message that as an LGBTQ person, your organization does not want you to hide and is willing to model the use of inclusive language for the whole organization. De-gendering, the language of company-wide documents, may seem like a small detail, but it can be an important signal to LGBTQ team members and motivates them to be an inseparable part of the organization. #### 2\. Nondiscrimination Policies While Title VII of the Civil Rights Act ensures representatives against discrimination because of their sexual direction, organizations ought to have clear nondiscrimination policies covering sexual orientation. Since Title VII applies to organizations of more than 15 individuals, it’s particularly significant for more modest organizations to clearly outline nondiscrimination policies. And for companies that operate globally, nondiscrimination policies should extend there, too, to cover all employees.  Especially for companies with many sites across the country, these policies must be reinforced on the ground and a culture of respect for LGBTQ people. All employees should also be provided clear information about how they can speak up about issues of harassment and discrimination.  An organization that expects and gets ready for employees’ sex transitions will be better prepared to help transsexual workers now and later on. For example, companies can cover management support, administrative changes, dress codes and bathroom usage, and communication with coworkers. #### 3\. Common Dress Codes Company dress codes can further support the well-being of LGBTQ employees. With that leniency, any LBGTQ person might be able to express themselves however they feel most comfortable. Organizations can move their dress standards from assigning explicit outfits for ladies and men to just “business casual” or posting what things are not proper for the work environment without referencing explicit sexual orientations. #### 4\. Gender Neutral Bathrooms Organizations ought to permit transsexual representatives to utilize the washroom that compares to their sexual orientation character. It ought to be illustrated in organization arrangements.  Further, to help sexual orientation non-conforming employees, organizations can transform single-occupancy washrooms into gender-neutral washrooms for use by any employee. #### 5\. Ongoing training and education Companies that engage in regular training on unconscious bias and gender inclusion and explicitly talk about LGBTQ identity in the discussion can help ensure that the company doesn’t rely on its LBGTQ employees to teach their coworkers about their identities constantly.  Such discussions that are multifaceted help advise employees about how types of discrimination cover can uphold the encounters of workers who are members of multiple marginalized groups. Conclusion  ----------- Hence, it’s a great experience being an LBGTQ friendly organization. Even several big brands like Coca-Cola, Adidas, Dell Technologies, eBay have shifted towards LGBTQ-friendly culture. [**Salt**](https://salt.pe/category/neobanking/) feels strongly about this emergence of LBGTQ friendly organizations. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Trends SALT's observed about Import Export during COVID Author: Ankit Parasher Published: 2021-06-03 URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/jjjggg-745x1024-1643960922801-compressed.png) The impact of Covid-19 has been debated more times than we’d like. But it’s now more than a year since we experienced our first lockdowns and witnessed first-hand what an economy on pause could look like. A lot of trade channels have been either severed entirely or have been put on an impasse with respect to functioning. There have been more trade barriers due to it as well. However, a major way to the economy recovering is though facilitating transactions. In face of the pandemic, the stakes must be freshly evaluated though.  In light of this, some trends that have been observed by the SALT team on imports and exports could help. These are some trends that take one back to the basics, as well as assist in evaluating the new stakeholders in the process, trade barriers, safety while ensuring that trading persists. Fresh challenges in light of COVID must also be borne in mind when conducting business now.  1. Keeping supply chains operational The Organization on Economic co-operation and development (the OECD) has [stated](https://www.oecd.org/coronavirus/policy-responses/covid-19-and-international-trade-issues-and-actions-494da2fa/) that in challenging situations of emergency like the COVID, it was observed that important supply chains were kept operational. The decrease in mobility, trade barriers, etc. persisted. According to the World Bank, global trade fell by 6%. UNCTAD has also exhibited a 27% drop in global trade for 2020.  However, in a lot of spheres, especially food, healthcare, and other essentials, the supply chains were kept operational. In fact, in a lot of cases, certain industries boomed to meet the demands. The requirement of surgical masks, for instance, increased manifold post the pandemic. However, what was observed through the process of keeping supply chains operational, was that the biosecurity arrangements were more enhanced. The World Bank also believes that keeping supply chains operational through 2020 has assisted in improving the trade over the world. A paper released by OECD also suggested measures on how government policy could aid in ensuring better operation of supply chains. Keeping trade alive during these times, [the OECD paper states](https://www.oecd.org/coronavirus/policy-responses/covid-19-and-international-trade-issues-and-actions-494da2fa/), not only saves lives but also livelihoods.  The World Trade Organization observes in a [study](https://www.wto.org/english/news_e/pres21_e/pr876_e.htm) that through the continuation of supply chains, and people also continuing to work from home, the generation of income and demand continued. The study has also highlighted how people are looking to strengthen their supply chains. COVID has increased the need to identify the setbacks within the respective supply chains, and enterprises are looking to remedy this.  1. Market-specific growth  An understanding of COVID on the global economy can be understood by market-specific growth or downfall. A paper by the World Economic Forum analyzed statistics for three of the world’s largest export economies- China, the US, and Germany. It concluded that while several industries saw significant growth (health, medicine, certain food sectors), other sectors like the garment industry or the car exports saw the sharpest decline in exports in around 5 years. The World Economic Forum paper also observed that agriculture at large witnessed some growth in export over the span of the past year and a half. Owing to market-specific growth, it was noticed that many enterprises expanded their businesses into viable sectors. Enterprises, to sustain themselves have also branched across industries. For instance, [a report](https://www2.deloitte.com/xe/en/insights/topics/marketing-and-sales-operations/global-marketing-trends/2021/fusion-cross-industry-collaboration-post-pandemic.html) by Deloitte noted how a number of restaurants began collaborating with supermarket chains or converting into other essential businesses.  1.  Localizing Even though there was a concerted effort across the world to not dismantle supply chains, an interesting facet arose due to the trade barriers which arose due to COVID. The inadvertent effect on supply channels of some sectors led to an increased demand for sourcing locally. A global trade [study](https://ihsmarkit.com/research-analysis/global-trade-outlook-for-2021.html) noted that much of the global trade would become localized for a few years.  This would lead to the creation of a regional ecosystem, and local channels to cater to the same requirements. While local sourcing was something that became a necessity in all of 2020, it is something that is better evolving in 2021 as well. The same study, however, also cites that localized sourcing is posited not to be a replacement for the traditional trade channels, but an additional. These alternatives keep businesses more resilient in situations like economic crises or emergency scenarios.  1. Virtual presence Businesses have moved from brick-and-mortar settings to creating a virtual presence rather quickly. The evolution happened in early 2020 itself. Much of 2021 has been about solidifying its virtual presence through several channels. A common trend has been to alter their business models and expand into the online fora.  Customer communications have also seen significant alterations over a period of time with the COVID. There has been a higher requirement of safety in the business operations, as well as the necessity to convey this to customers. On an interpersonal, client, and business level, this would mean that better communication of supply delays, errors have been attempted to be delivered. Overall communication channels have sought to be strengthened in the course of this.  Conclusively, further economic trends in import and export will be shaped largely by how the global pandemic transpires further. What would also have a bearing on the trends further is the reach of the vaccination programs, policies of the countries in specific, etc. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Guide to quick and easy tools to amplify your business Author: Ankit Parasher Published: 2021-06-01 Tags: Business, business tool, business tools, online, tools URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/hhhn-745x1024-1643960958640-compressed.png) Establishing a business is difficult. As Elon Musk often narrates, starting and running a company can be like “chewing glass and staring into the abyss”.  But it doesn’t have to be. Instead, with some quick hacks, you can certainly take it to the next level. The right business tools automate tasks, optimize number crunching, and elevate productivity to levels not possible with any manual approach.  Here’s a list of some must-have business tools to amplify your enterprise and beat your competitors.  1. [Charlie App](https://www.detective.io/) ![](https://lh6.googleusercontent.com/BHtSxypDfuVAUxrB9FMiqc8dBa5WPCzv-voUWYO87I6bhvF3k41bmc4pxFentYysoaUNUg4RlCamSxiHoh9NftBvdcQu6EqKDmr1g23lD4Yfk0G0ghu-zCiSR1lHlC1DZiJAdOlB) The first impression is the last. But what if there was an option for a secret impression? What if you could see all the data about a specific person without opening endless tabs on your browser? The Charlie app helps you do that.  Charlie is an attractive marketing tool that helps you create a positive impression when meeting people. It’s like your personal Sherlock Holmes who collects and delivers all the necessary information for you in one place. And the information displayed is easy to read and relevant to your search. If you need to interact or make a connection with your consumers, you might love this tool. It automates your sales research process and makes your sales team prepared and confident. Charlie App helps you save time and bond with your customers better.  1. [Google Trends](https://trends.google.com/trends/?geo=IN) ![](https://lh4.googleusercontent.com/VSiEIVNyXICNhVOtsHrsFakNlfUPXt4jFkALoOMImcwPHPVgYXyF1ANU0uMuR8-GOIEtOK32Movy4Nd5qE-7_VzdvsJL5ym8BuNm5Kg7_CLTUoP0AG7IauvPJ8-5mPtNtJB7SAjx) If you’ve ever done keyword research, you might have used Google Trends to check the interest in a given keyword. If not, you’ll use it after reading more of it. It shows the relative popularity of a search query and helps organize the world’s information by making it universally accessible and helpful. Also, **it’s free**. You can type a topic, name, place, country, idea, or word, and it’ll display the graphical data. Not just the current year’s analysis, you can also check the results for previous years, say 2014. The result is relative to the site’s total search volume over a given period of time. You may even choose the country, category, time duration, etc. If you want to stay updated with your business and competitors, you must let google trends help you. 1. [Mention](https://mention.com/en/) ![](https://lh6.googleusercontent.com/2289y1fINE8_IcFyYbuJvOtAXUsOUzrALBwdjLQX3yXwTyV-tm2-GmoHEq9kG9D-FBLkfNAjLsQ4XD_J74LcvhZWtCQzCCl3mpfzuCrwxmF70UdfkbyWYDllCqafE_pZzFVVbloL) Mention helps brands and businesses efficiently manage their online presence. This tool enables them to increase their brand awareness online. Allowing customers to compare and analyze online conversations, Mention helps create content based on important social and web insights. It facilitates  online media monitoring, social media listening, competitive analysis, brand management, and social media management. 1. [Facebook Page Insights](https://www.facebook.com/business/help/633309530105735) ![](https://lh4.googleusercontent.com/CwegY2ThHLgvPLORG4EM-szd_Qk1Lj01IudNbU5WMDGyUGqFhsj048sOGMkgpAMBUDC7Wq8cbcKvNERHgWDC_uY8bgKtWVQK1WTYwrSsL4H35vgthWYMJaVruK3iVkbDa_0QyGEu) Facebook page insights are one of the most easy-to-use tools. Almost everyone in today’s time has a Facebook account. Earlier, people used it for entertainment purposes, but now it is more than just a social app. What about mixing your entertainment with your business and income? On Facebook, you can market your products and services too. But how to see if people like your content or not? Well, Facebook page insights give you detailed analytics for your Facebook page to track that. With its help, you can track the public’s engagement on your updates and improve accordingly. 1. [Slack](https://slack.com/intl/en-in/) ![](https://lh5.googleusercontent.com/bmETEfmmY0fHrmN9Xim1MAFZS-rsTcb3x2KVZK_aB5QNHNLuaHqgYkh7qKC7xyIhDpEO8Nj1p0u01z-dhy1EYCWh7oOEwF1ZSocT1_AK_iBGN47Q3u4-659HzhIV6KenMB6xXKWW) There is considerable information that goes around an organization. But does it reach the right employee at the right time through emails? Not always. Slack comes into use there. It’s a collaboration hub. It aims to bring the right people, information, and tools together to get work done. It replaces email inside your company. It turns emails into messages and organizes them into channels. It makes communication better, and collaboration is more straightforward and achievable. It encourages teamwork in an organization. 1. [Keywordtool.io](https://keywordtool.io/) ![](https://lh3.googleusercontent.com/339WVtHjFKW5oXTYdY5Rv1CdQr-gyEYvo4A0X_b2QOWMIoN_dDFilzRhM6HN5M3qLIUs0qsml6LBJkPxn_bnxuCyYEPLoZYkVf-sgexKePq1M31Yk6GYAFJh-E0rulHjQ-9P7_Hb) Keywordtool.io is a free online tool. It displays different keywords, products, and hashtags for YouTube, Google, Bing, Amazon, eBay, and more, according to different countries worldwide. Although it displays the results for free, you may also buy their subscription divided into a pro plus, pro basic, and pro lite for more profound results. It helps you understand what people are searching for online and helps you reach your target audience.  1. [Build fire](https://buildfire.com/) ![](https://lh6.googleusercontent.com/B6F2Otwks9qVvJrar4Y1qGRHVkgR2w8FAV8aW-F0DiR1Bf5vu7uiqmu1J-h0N1yJfm__uro1C5YhpTdfjUgUxCrtFa0bxziRzwjXIgZEu-XNlItkur00O0sbfRTzQ4DOjwsL3Rum) Some companies require an app to reach out to the public and create an impact, but they’re not aware of the process. They might spend a lot of money to pay an app developer but Build fire is to your rescue. It is a powerful and easy-to-use mobile app builder. That makes it so easy for you to build fully custom mobile apps in a fraction of the time and cost.  As a marketer, your customers can access your products through their mobile devices. It has a variety of templates as per your business. And even if you’re not tech-savvy, many tutorials on the internet will make your job even more accessible.  1. [WordPress](https://wordpress.com/create/?v=india_go_to_market&utm_source=google&utm_campaign=google_wpcom_search_brand_desktop_in_en&utm_medium=paid_search&keyword=wordpress&creative=329641414965&campaignid=683204332&adgroupid=31861711621&matchtype=e&device=c&network=g&targetid=aud-1246208845396:kwd-313411415&gclsrc=aw.ds&gclid=Cj0KCQjwhr2FBhDbARIsACjwLo1RFG4Nw8V5kBZBU1egNsBjQLji82INr0_ilNj69YoMdpjSv_wilWMaApo4EALw_wcB) ![](https://lh6.googleusercontent.com/wNyOaDw0O-2z3vBp88uKgfC_xpCSGNksiws4QzdGORoLfsLooBbeWUwOL4zSHZWcUayfqOEOFhQK6L-0eHMhiJ84EVckn7afTWQFTubspIMGvyiUwWcscAaf7A2m4Y5uUNJmWLEC) WordPress is one of the most popular website publishing programs in the world. It helps you build your website or blog and publish it on the internet. And **it’s free** as it’s open-source software. You can choose from over 11,000 themes which are template layouts that determine the look and style of your website. You can change the font, add images, include buttons and keys, and everything more through WordPress to your website. Bye-bye to the times when you needed computer codings to create and design a website!  1. [Basecamp](https://basecamp.com/) ![](https://lh6.googleusercontent.com/02HE9u0fvnyp7-VPcrU2kJgtr8VRCHYpYZyNEKOOPLYRJtq0lDfLpQCNl9ZSEU5XEiEl57NEA4hTt5AkVYLA2UYvO23__TSd3QXSOl4PMcPvfLbYk6pnpM5qA59D_Aiu_q6jGZ37) In 2021, when almost every business had turned online, Basecamp secured its place among the people. It’s an all-in-one toolkit for working remotely. Basecamp makes sure that everything is organized in one place, and you feel calm about it. Allowing you to assign the tasks to the most suitable team member makes the process easier and manageable. By facilitating instant communication, it increases group cooperation and coordination.  1. [G-Suite](https://workspace.google.com/intl/en_in/) ![](https://lh3.googleusercontent.com/g170nh9H7u4kukaR_YmyRs_q9apTPbOHvwqh7SN3QSmkolWan7DBdKHzSH6MdnE8oG6tQT6YpqmMWrNDjLzg2Nzt7v8I9bnFyVZHk9Eva0lHsQy_BPOrR96UqehKH5NE1_izWSEw) G-suite is one of the most used workspace communication platforms. It’s an all-in-one business productivity and communication hub which offers dozens of powerful apps and tools you can use to enhance your business performance. It gives access to all the google apps you might have used or heard of, like Gmail, Chat, Meet, Calendar, etc. There are separate applications for storage, collaboration, and managing users and the services; linked into just one user account. You can access them on both PC and mobile. It is specially designed for businesses.  These were some of the tools that can help you amplify your business and take it to the next level. Irrespective of the business type, these tools might fit into everyone’s shoes. But at the end of the day, it depends upon how you implement them. For a business, it is crucial managing funds and monetary statements properly. [Salt](https://salt.pe/) provides businesses with a one-stop portal to execute and manage monetary statements worldwide. It aims to create an accessible and seamless experience for everyone while managing software and solutions. It is trusted to manage and grow business throughout the company and the globe. _If you have any more recommendations, drop them down in the comments below._ --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Your International Banking Transactions Gets Delayed Author: Ankit Parasher Published: 2021-05-25 Tags: bank, Delay, global payment, International, SALT, Transactions URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/f1-745x1024-1643961012255-compressed.png) With the current state of our tech, we’re fairly used to instant gratification. We get everything from information to goods delivery instantaneously. Unfortunately, this can’t be said about international bank transactions. They still typically take place over 1 to 4 business days. This can be frustrating, given it can have tangible effects like a direct impact on your cash flow cycles. It is difficult to ascertain when you can complete your transaction, but like many other things, these delays are part and parcel of business. But there are some reasons which could feel like a hindrance to your transactions as they could be factors of international banking transaction delay. * **Global events like pandemics:** The pandemic hasn’t left even a single industry or person safe and away from its web. Similar events would mean a shortage of presence of staff given the situations. Consequently, this could lead to a significant delay in your banking transactions to process. * **Bank holidays:** Usually the definition of business days considers the weekends and the notified holidays as part of non-operation. Some countries especially the ones based on the Islamic calendar, consider Friday and Saturday as their weekends rather than Saturday-Sunday. Further, bank holidays and other notified holidays vary from region to region which might delay your transactions to be processed. For example, in India, the second and fourth Saturdays of the month plus Sundays are notified bank holidays in addition to other public holidays. * **Time Zone difference:** Countries having significant time zone differences experience a major effect of this factor. Since there is a possibility that when one nation sleeps, another wakes up, the transaction processing would take place in that manner. For example, the difference of time between India and the US is around 10-12 hours which means that your transaction would hold on for at least that amount of time. * **Fraud Prevention:** Transactions passing through the SWIFT network require them to pass through up to three correspondent banks as a measure of fraud detection and prevention before reaching their destination. This can certainly delay your processing of funds for a significant amount of time. * **Incorrect or incomplete information:** Imagine a transaction going through several hours and nodes of the network, completing fraud prevention checks and measures only to be detected as having incorrect or incomplete information and then sent back to you. It can be a cause of massive delay. Sometimes, there is a possibility of human error as well on the other side of the world as well which might require a different or an additional kind of documentation. For example, China asks for the proof of legality of the source of income for which one needs to send or attach another set of documentation. In extreme cases, your documents could be lost by one of the employees at the intervening banks. * **Currency conversion:** Processing times are increased when your payment is to be first converted into another currency before reaching you or your clients to whom you are sending the funds. This happens due to the involvement of other legalities and consequent processes which have to be undertaken. * **Time of transfer:** In case the transfer takes place at the end of the day, it would be processed only on the next business day. Also if the transfer takes place just before a weekend or holiday, it will be processed only after that. Transactions delay are always a cause of worry after you finally get a platform to process your funds for it. [Salt](https://salt.pe/) provides businesses with a one-stop portal to execute and manage payments, collections, and expenses worldwide. A User experience that is stitched together ensures that you save considerable amounts of time and resources, even while managing multiple accounts and payment and collection payouts in real-time worldwide, without any hassles. Salt is where you get all your financial solutions on one platform. Salt is a neo-banking experience catering to international businesses while specializing in cross-border payments and banking services. It aims to create an accessible and seamless experience for everyone while managing software and solutions for your problems. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Noob's Guide to Understanding Ever Growing Gold Industry Author: Udita Pal Published: 2021-05-24 Tags: gold, gold price, investing in gold URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blognew2-745x1024-1643961055564-compressed.png) Both from an economic and cultural perspective, gold is one of the oldest resources on the planet. Why this sort of significance? Regardless of where gold ends up, its unchanging, inert chemical composition ensures that it can practically never be lost – it is eternal. Gold is a precious metal that can be transformed into bars, coins, and jewellery with ease. It really doesn’t even corrode, rust, or fade. Platinum is six times harder to obtain than gold, and silver is 18 times rarer.  From an economic perspective – Gold has occupied a large part of our history. It is largely purchased by investors as a protection against political instability and inflation. Several top investment advisors would advise you to allocate a portion of your portfolio to assets, such as gold, the idea being to minimize risk exposure in a portfolio. In today’s times, perhaps the most straightforward way to invest in gold is via the stock market through Gold ETFs or stock in the gold mining industry. Public sector mints, private mints, commodities suppliers, and even jewellery shops are all places to purchase gold. Numismatic coins and other gold pieces targeted for collecting and gifting should be avoided before making a purchase. That’s how deeply embedded the gold industry is in our society.  What Influences Gold Price? =========================== The price of gold is influenced by supply, demand, and investor sentiment. That sounds straightforward enough, but the manner in which these factors interact isn’t always straightforward.  * Many investors consider gold to be an inflation hedge, for example. That makes sense, since paper money loses its value as more are printed, while gold supply remains relatively constant.  * The price elasticity of gold is high. This simply means that while many people purchase gold, the price rises in response to demand. It also implies that the price of gold has no underlying “fundamentals.” That doesn’t rule out the possibility of gold prices being entirely random or the outcome of herd action.  * Some factors influence gold availability in the larger market, and gold, like petroleum or coffee, is a global commodity. What does Gold Purity Mean? =========================== Carats, also written as karats, are a unit of measurement for gold purity. The carat scale ranges from 24ct, which is over 99.95 percent pure gold, to 9ct, which is less than 40% pure gold. When making jewelry, copper or silver is commonly used because gold is too delicate on its own. How Much Gold is Present in the World? ====================================== While gold is abundant in nature, it is hard to extract. Seawater, for instance, contains gold, but in such small amounts that extracting it would cost more than what the gold will be worth. As a result, there is a significant disparity between both the availability of gold and the total amount of gold in the world. The number could change if extraction methods improve or gold prices rise significantly. Gold has been detected in large amounts near deep-sea thermal vents, implying that it could be worth mining if prices spiked high enough. Investing in Physical Gold -------------------------- Physical gold is valuable as it is a finite, global currency that is owned by the majority of central banks. Gold bullion, like a house where one lives with family, can not be treated as an investment in and of itself, but rather as a type of financial insurance. ### Gold Bars Gold bars are a popular choice among investors. They also come in a number of sizes, ranging from 1 ounce to 400-ounce bars, making this category of items suitable for a wide range of investors. Gold is a great way to make sure wealth preservation and to transfer wealth down through the generations.  ### Jewellery Jewelry is a poor way to invest in gold because of the high markups in the jewelry industry. Its resale price is probably to plummet after you’ve purchased it. Extremely valuable jewelry may retain its value, however, this is due to the fact that it is a collector’s item rather than a gold material. ### Gold Certificates  Gold certificates are these notes which are issued by a corporation that owns gold and are a different way to receive direct exposure to gold without actually buying it. These notes are typically for unallocated gold, which means the certificate has no real gold attached to it.  ### Stocks in Gold Mining Industry Mining stocks are a preferred choice for some investors. Their prices are likely to mirror the prices of the assets on which they concentrate; however, since miners operate businesses that can grow over time, investors can profit from the increased output. This has the potential to offer benefits that owning physical gold will never provide.  ### Gold ETFs (Exchange Traded Funds)  ETFs that monitor the price of gold is known as gold ETFs. The Street tracks Gold Shares (NYSE: GLD) and ETF Securities’ Gold Bullion Securities in London are two of the most common (LSE: GBS). Stockbrokers are able to purchase them. An annual management fee of 0.4 percent to 0.5 percent is usually charged. ### Other Ways to Invest in Gold There are other different ways to invest in gold such as gold futures, streaming and royalty companies, mutual funds, gold mining companies and more.  Conclusion ========== ![](https://lh4.googleusercontent.com/C8IVP_su6CJ8j7g0U5UnsFVUjdoIpAA-eclFmvzijl-kvFYBAuIeXvaHJo-44sbyCMsclEelt35Cohx7gMxkBpAZnpsTH3O2fCWxL0cEl5bVGTYMECRqnlY4Ng5MbJ7RgZLwWzrH) _Gold prices (yellow line, right axis, London P.M. Fix, in $) and real interest rates (as yields on 1-year Treasuries less CPI yearly inflation; red line, left axis, in %) from January 1971 to October 2019)_ **_Source_** _–_ [_sunshineprofits_](https://www.sunshineprofits.com/gold-silver/dictionary/real-interest-rates-gold/) Gold is a precious metal with its own share of benefits. While it’s certainly  too traditional to be considered a part of [alternate investing](https://salt.pe/2021/03/03/introduction-to-alternate-investing/), it can be a great way to diversify your investment portfolio. After all, Gold has been the world’s longest lasting preferred currency. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Dealing With Financial Stress During COVID-19 Author: Ankit Parasher Published: 2021-05-18 Tags: COVID 19, Financial anxiety, Financial stress URL: https://salt.pe/blog/null The ceaseless COVID-19 pandemic has disrupted most parts of our lives. Like countless others, as you work from home, you may have been a victim of “cost-cutting” or “laying-off” in your company. With unemployment on a sudden rise and small businesses struggling or forced to shut down, we are all bogging down under financial stress.  New to the term “Financial Stress”? Let us help you with that.  Financial stress is the anxiety or worries you feel regarding financial difficulties in your life. Like any other kind of stress, financial stress can impact your health in a multitude of ways, from how you physically feel to the way you behave with your near and dear ones.  Financial stress has become a monster making us sweat with constant headaches, uncertainties, fears about our and our family’s future with furrowed brows. Imagine sleeping only to wake up with disturbing thoughts or visuals of losing your job and being unable to pay bills, the surmounting debt, or the monthly budget going out of hand. Now before you jump to conclusions, have a look at the tell-tale signs of financial stress: * More or frequent arguments with your better half or family members are the most common signs. The conflicts can or cannot be related to money. * You are hiding bills or receipts from your mate or family members so as to avoid being nagged or “getting caught” spending money. * Facing trouble falling asleep or staying asleep at night. * Binge eating to relieve tension or a drastic change in your eating manners. * Failure to improve your financial behaviour, loss of control of thoughts and or loss of hope, disconnectedness, etc. * Physical body responses like – Excessive sweating, headaches, cold palms, etc. A [study](https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4738080/) infers that financial stress can lead to prolonged inflammation in the body. Keeping your stress levels flat – especially financial stress – can help you keep your overall health in check in these trying times. Dealing with the pandemic-induced Financial Stress -------------------------------------------------- As COVID-19 continues to wreak havoc, the hardest-hit families aren’t in a position to reduce expenses, as they are forced to withdraw their emergency savings. Nevertheless, there are steps you can take to improve your finances, irrespective of your socioeconomic status. Overcome Physical Signs of Stress --------------------------------- Reducing the physical signs of stress helps you resolve the money problems adding to financial stress.  * **Eat healthily:** The COVID-19 induced problems and the financial stress coupled together have pushed us all towards unhealthy foods for comfort. Commit to sticking to [healthy eating](https://www.umms.org/coronavirus/what-to-know/managing-medical-conditions/healthy-habits/healthy-eating) habits. * **Stick to an exercise regime:** Gyms being closed isn’t an excuse not to work out. Working out at home helps release those happy hormones, too, other than keeping you fit and fine. * **Reach out to the doctor: I**f you are experiencing physical signs of stress, talk to the doc. They can help you find ways to tackle these. ### Address Your Feelings Before you start hustling with your money problems, it is advisable to keep your emotions in check.  * **Talk to People:** [Staying connected](https://www.umms.org/coronavirus/what-to-know/daily-life-coping/staying-in/staying-connected) plays an essential role when it comes to being mentally healthy. Communicating your financial problems to someone, a friend, family member, or colleague goes a long way to make you feel better and provide you clarity. * **Tackle signs of addiction:** Stressful times and bad habits are old friends. If you have previously or presently struggle with [addiction](https://www.umms.org/coronavirus/what-to-know/managing-medical-conditions/conditions/mental-health), take measures to address it. * **Take time to unwind and recharge: No matter how much or how worse the** crisis, spare some time to recharge and recline.  ### Watch Your Finances Now that you have a cool head and a calm mind, you can focus better. Hence it’s time to take a glance at your financial predicaments. Before you begin addressing these difficulties, split them into various categories. Investment experts suggest tearing up your challenges into the categories mentioned below: * **Critical and changeable:** These challenges have an immense bearing on your financial stress levels and can be changed by taking action. * **Necessary and unchangeable:** These difficulties too significantly affect your financial stress levels but can’t be dealt with. * **Not Important and changeable:** These transitional challenges are disturbing and boost your stress levels but don’t add to your financial stress. * **Not Important and unchangeable:** These are vexing challenges that can raise your stress levels and can’t be changed, but they don’t really contribute to your financial stress. ### Ask For Professional Support After you have successfully recognised which challenges are unchangeable and which aren’t, you can turn to professional support. Financial experts can connect you to techniques and means to tackle your difficulties efficiently. The COVID-19 pandemic has made seeking assistance to address your money problems vital. Financial professionals are generally up-to-date on the new programs or schemes by the government or other agencies even during the pandemic. They are adept at advising government arrangements that are the right fit for you. Here are some resources you can utilise, depending on the financial challenges you are facing: * **Credit card debt or budget problems:** Connect with a certified credit counselling agency to get a free consultation. They will examine your debt relief options and assess your budget. * **Mortgage challenges:** Find a HUD-certified housing counsellor that you can consult. * **Student loans:** Visit [StudentAid.gov](https://studentaid.gov/) to evaluate your relief options. You can also call your loan provider straightaway to explain your situation. * **Tax debt:** Tax specialists or certified public auditors can help you with a settlement plan with the IRS. * **Medical debt:** Consider **c**alling your health care provider directly instead of the collector. They might set up a payment plan for you. ### Adhere to the Plan After conferring with the associated specialists to generate a plan, you need to stick to the course of action.  * **Stick to the plan: S**tick to the plan, no matter how tough. You will feel the financial stress lift and a sense of calmness taking over. * **Nothing lasts forever:** Your balance can recover, and you might succeed at getting back to the financial state you were in or want to be in. Just keep moving forward. * **Accept change:** Changes can be annoying, but they are needed to reduce your financial stress. Try perceiving the changes you’re making or undergoing as new possibilities. * **Exercise gratitude:** Coping with money problems and financial stress can be crushing at times, but learn to exercise gratefulness. Be appreciative of each and every day.  You’re Not Alone ---------------- Though it might seem that you’re the only person in the whole world facing the brunt of financial stress, you’re not.  With the advent of technology, it’s effortless to find supportive communities online and personally. You can share stories and resources as a community while you sail through your financial stress. Concentrate on taking one small action, one step, one a day at a time. Practice taking [consistent action](https://www.discover.com/personal-loans/resources/consolidate-debt/how-to-manage-debt-at-any-age/) in your everyday life to generate stronger finances over time. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Bad Clients? Here's a quick guide to 'unpause' your transaction Author: Ankit Parasher Published: 2021-05-13 Tags: Business, bad clients URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-5-745x1024-1643961122143-compressed.png) Bad clients are a nightmare in any business. Some of us bear with them even when we don’t feel like it – because in the end, if they’re paying the bills, what else matters?  But it’s not what you think it is. Bad clients can end up costing you money or hinder your [cash flow](https://www.practiceignition.com/blog/increase-cash-flow) if they always pay late or argue over fees. If they regularly demand changes or ask questions, they eat away the time you need to devote to your other clients or your business. They can crush your rep. Bad clients disregard your advice and then complain when they don’t get the expected results. If that client in the picture has a big audience, their complaints can reach others in your industry and make them reconsider partnerships with you. Karen Higginbottom from [Forbes](https://www.forbes.com/sites/karenhigginbottom/2014/09/11/workplace-stress-leads-to-less-productive-employees/) says that employees with high-stress levels: engage less, are less productive, and take more sick leave than workers who are content. Getting rid of the source of this stress will improve morale and productivity, which positively impacts your business.  Bad clients hurt your employees, your culture, and your business. It’s time to let them go. Bad clients don’t listen to you or see what you are offering. They consume more than their part of resources when it comes to time and money. This affects customer health, customer satisfaction, etc. While the good clients reward you through revenue, referrals, and loyalty, the bad clients limit your ability to assist profitable customers. Hence, it becomes crucial to identify and deal with bad clients. We’ve highlighted the most common types of bad clients. Here’s how you can spot them and know what to do next. 10 Ways to Recognize Bad Clients -------------------------------- **Most bad clients:** 1. Don’t Ever Pay On-Time  2. Don’t Pay Enough Or At All 3. Come Up With Unclear or Growing Demands 4. Want ALL your Attention 5. Aren’t Available 6. They Aren’t Honest 7. Are Abusive or Threaten Your Staff 8. Make Unreasonable Demands 9. Complain to Anyone Who Will Listen 10. Don’t Listen to You **They Don’t Ever Pay On-Time**.  Customers that don’t pay don’t make you or your business any money. They cost you money. Overdue bills diminish your cash flow. Investopedia asserts that a business may see a profit every month, but its money might be tied up in different accounts, and there is not a penny to pay the employees.  The resources you spend trying to collect your payment also costs you money and your staff their time. Using technology to collect dues, too, requires you to pay collections companies or lawyers. **They Don’t Pay Enough Or At All**. Some customers put you on the defensive right from the start, questioning your pricing during sales.  For example, they may ask why they’re paying you so much to do a few hours of work for a piece of work. They don’t understand your investment in acquiring the experience to deliver efficiently according to their needs. Beare of customers who complain about the pricing, don’t seem to understand your answers or justification, and then end up signing their contract. These customers often demand a lot after they hire you. They’ll ask for constant modifications and will undermine your work.  **Come up with Unclear or Changing Demands** Bad clients usually have unclear or changing demands. Say you and your team spent weeks preparing a proposal. The worst thing that can happen on your delivering the project is being told your work doesn’t meet the objectives- the objectives they didn’t tell you at the start. At times, [**poor communication**](https://www.nextiva.com/blog/steps-create-communications-plan-template.html) leads to expectations not being met. But if you give the client exactly what they ask for and are still dissatisfied, there ought to be a problem. Here, you point out their behavior; it seems like [**you’re making excuses**](https://www.nextiva.com/blog/customer-service-phrases.html). We suggest you identify these clients early on by their inconsistent expectations. Bad clients have demands that are hazy and jumbled. **They Want ALL The Attention** Each consumer is different, and it’s only reasonable to expect that newer customers need more hand-holding than the preexisting ones.  So, how to identify the attention seekers? Analyze the data. Find out the more prominent clients, the ones generating the most revenue. Be wary of anyone taking more than their fair share. Talk to your employees – they should tell you when clients are being unreasonable or asking too much. Document their concerns and act when appropriate. **They Aren’t Available**. While some bad clients consume many resources, some cause perplexities because they don’t communicate enough. Consider a client who doesn’t return your calls or emails. You waste time trying to track them down. Similar to the clients who schedule meetings and ghost you. That’s the time of your day you could have **spent productively**. Moreover, a customer who doesn’t show up for the meetings won’t know how to use your product. This leads to higher demands on your customer support team, poor customer success metrics, and so on. It’s okay to miss a meeting from time to time. But identify the customers who have a pattern of absence and raise the red flag. **Bad Customers Aren’t Honest**. The customer is always correct—FALSE. Bad clients may lie to you on purpose.  Some of the most common lies include: * Alleging you promised to deliver things that you never promised in reality * Saying that another employee made promises * Claims of lousy customer service/experience * Under-representing their ability to pay or their needs during the sales process In each of the abovementioned situations, their lies can foster unrest among your team. If you trust what they say, you can’t act on it.  If you catch a customer lying once, give them the benefit of the doubt. However, if it becomes a pattern, start documenting the behavior.  **They are Abusive or Threaten Your Staff** Sometimes rudeness or bad behavior results from a bad day or week. But, what you’re on the lookout for is a pattern of behavior. Watch out for : * Personal attacks * Aggressive accusations of lousy customer service * Threats of personal harm or property damage * Shaming in public Customer threats are better dealt with soon. Rude or abusive clients put you and your staff through uncalled-for stress. If a call reaches the level of abuse, it is best to record calls for further review or law enforcement purposes.  Negative employee experiences do affect your employer brand, especially in this technological era. Bad reviews on LinkedIn or other sites can make it challenging for you to hire good people. Any good company strives to provide good customer support.  A lousy customer will take advantage of your kindness and ethical business practices. And even accuse you of poor customer service. **They Make Unreasonable Demands** Most customers want their needs met. But some customers ask for more than you can deliver. Not all these are bad clients. A customer, though, does cross the line when they don’t take no for an answer. Beware of customers requesting many revisions over the deliverables. Expecting you or your team to be available at any moment, any time of the day, is also a problem. It’s not feasible for any business to constantly attend to every client according to its convenience. Unreasonable demands pull your resources away from loyal customers you can help.  **They Complain to Anyone Who Will Listen** Complaints are part and parcel of a business. With the advent of social media, it’s easier than ever for upset customers to stain your reputation. A simple tweet can cost you a lot. You can’t ignore online reviews because your audience or potential clients wouldn’t. If the reviews are not very pretty or unfair, their impact goes way beyond one bad client. **They Don’t Listen to You**. Customers who don’t take your advice also come into the category of bad clients. They’re not just wasting your time and their money but also won’t see returns on your services. Your job, more often than not, includes advising your clients regarding their goals. If the clients don’t pay heed to your recommendations, they invite the risks of failure. It goes without saying that clients who don’t reach their goals are unhappy, blame you, or, even worse, **give you a bad review**. They might not even use your services next time. Moreover, you can’t have great stats to flaunt when customers aren’t successful. **What to do with bad clients?** -------------------------------- **Appraise Their Value** Customer acquisition costs are higher than customer retention costs. Ask the critical question, “What is the value of keeping this customer?” Keep in mind: * Their cost versus their profit. The data says it all. If they cost you more than you’re paying, that’s a definite red flag. * If the bad client is a high-profile one, then they may be worth the headache. Brace yourself to deal with negative fame or social media outcomes. * The consequences of losing this client?  **Have a Real Conversation** They say **communication is key**.  * Be direct and frank about your concerns. * Fulfill their expectations. Please explain what you can and can’t do for them. If you opt to continue keeping them as a client, make sure they know what to expect. * Get on the same page. Understand their needs and ensure that they align with yours. **Refer Them** Sometimes, a bad client is terrible but only for your business. You can always help them find a better fit. If you successfully suggest a great fit, you can make friends in business and have a delighted customer. Don’t forget that odds are the company you refer to might not admire their business. Don’t refer bad clients to companies you value if you’re considering asking the other company if they require the referral. **Fire Them** Sometimes as hard as it sounds, it’s best to walk away. Here’s how to move on with the least of fuss: * A manager or higher-level employee can deliver the news. If the client has a problem with an employee, keep that person away. * Be honest. With a clear and straightforward explanation, you will reduce or completely a misunderstanding. * Before the final call, make your decision. Nothing should sway your decision. * Be kind. Display compassion and extend a smooth transition plan. **Don’t Earn Bad Clients!** Bad client-company relationships sprout from ineffective **communication** and unclear expectations.  Here are means to attract clients who respect your company: * Generate a detailed [**customer persona**](https://www.forbes.com/sites/forbesagencycouncil/2018/03/21/how-to-identify-and-speak-to-your-customer-personas/#7a57febf4c4d) to help you identify your most significant customers. * Confirm the marketing claims on your website, blog, social media, etc. for accuracy * During sales, confirm the market demand for your product.  * Ensure all expectations and agreements are transparent. * Don’t sign on new customers that you can’t serve.  * Price your services appropriately.  Conclusion ---------- Bad clients may be a fact of life, but there’s always plenty you can do to keep one bad experience from destroying everything. By identifying them, an effective solution is far more likely. In several cases, it’s not the customer’s fault, but the company shares responsibility in their experience. Notice bad clients before they tarnish your reputation. At the same time, nurture and appreciate your existing clients, so they share their experiences, and you always have people with you, alongside you. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Blurring the Financial Borders- A guide to understanding multi-currency payments Author: Ankit Parasher Published: 2021-05-10 Tags: cross border payments, multi currency payments URL: https://salt.pe/blog/null --- ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blognew3-745x1024-1643961184485-compressed.png) **What are cross border payments?**  ------------------------------------ Whether you’re looking to [score a gig in international markets](https://salt.pe/2021/03/12/how-to-score-a-gig-in-foreign-markets-international-freelance-101/), [expand your business internationally](https://salt.pe/2021/03/15/how-to-expand-your-business-internationally/), or simply purchase something from a business halfway across the world, you’re likely to be familiar with cross-border payments. Cross border payments, or international payments, are, of course, payments made by a business or customer to someone in a different country. With our industries worldwide transcending boundaries, brand visibility and reaching customers are now the primary concerns. Seeing local markets go global, you might be tempted to sell your products across borders.  But before you board this train, it is best to have a basic idea about multi currency payments. Accepting multi currency payments  ---------------------------------- Expanding your transactions doesn’t just make it easier for foreign customers to make payments to your website using Visa or Mastercard; there is more to it than what meets the eye. Firstly, transactions in multiple currencies grant you more (and happier) clients and fewer chargebacks from cross-currency pricing conflicts. Imports, exports, or any kind of global business are made much easier. Buyers would love to have it easy by getting to know how much they will be charged for their purchases without calculating exchange rates and guessing the markup fees. The more transparent you keep things, the better seller you seem. Besides, you can save administrative costs on product returns.  Prerequisites ------------- Countries have specific reporting and accounting demands that sellers are supposed to obey. This leads to companies that sell products or services overseas function with complexity in their accounting systems. MNCs are expected to address challenges like: * Turning foreign currencies to their local currency. * Producing consolidated reports using a single currency type. Before setting up multi currency payments ----------------------------------------- Before you set sail, the ship of foreign payments, here’s what to consider: * **Determine the type of restatement you want to employ** This involves turning one or more currencies local one to deliver accurate consolidated reports. This system is used to remove fluctuations in currency exchange rates over time for comparison purposes). * **Determine the ledger types** These will probably include the AA (actual amounts) ledger for transactions in the local currency, CA (foreign currency amounts) ledger for foreign transactions, and the XA (alternative currency) ledger for the detailed currency restatement method.  You can implement additional ledgers, depending on your needs. * **Determine how you will post multinational currency balances** There are mixed balances that do not separate transaction amounts into distinct currencies, and currency balances separate the transaction amounts in the local currency in both AA and CA ledgers. The cross border payments industry ---------------------------------- ![](https://lh4.googleusercontent.com/5fKbQvJdLn0iHsognaTLQ3GjVeJcsDDn1QXDozcNimw1tFMUV98PheULkD7XrXpWiF4aIXqEOTWMdHymzloEAPBpZjh-F_DuAuYmIzEANXnNiDbhaofxU79H46qHI24l0zMiVn29) ### **Banks** cross border payments wire transfers by a bank are time-taking (up to five days) and costly. Other than cash flow delays, even in online banking, banks impose a fee, which will increase with regular international payments.  ### **Foreign exchange services** Foreign exchange specialists are faster and expected to be of better value when transferring large amounts.  Some foreign exchange platforms offer same-day payment services too! ### **Credit or debit card** International payments with credit or debit cards incur a fee. Credit card fees are greater than bank transfers or debit cards.  The good part is you can query the transaction and charge it back to the seller if there’s an issue. ### **Payment processing services** Payment service providers (PSPs) enable you to receive cross-border payments via debit or credit cards and Direct Debit. They manage the end-to-end payment process and can accept as many types of payments as possible.  ### **Receiving cross border payments** Your customers must have a fast and safe way to pay. You’ll need a cross-border payment process flow that’s fast and secure and fits your business needs. ### **B2B payments** If you utilize B2B cross-border payments, your business customers will happily make payments straight into your business bank account.  To receive a cross border payments wire transfer like this, when invoicing customers, you’ll need to provide: ● Your or your company’s name and address ● Your bank’s name and address ● Swift code or Bank Identifier Code (BIC) ● International Bank Account Number (IBAN) or account number ### **eCommerce payments** In an eCommerce business, getting your cross-border payments wisely is indispensable.  Check the cross-border payment regulations for the countries you operate in, to secure your regulatory compliance around personal data and customer security. For B2C cross-border payments, the payments are similar to domestic payments, especially if you’ve integrated publicizing costs in the local currency. If your customers are spending in their local currency, then receiving cross-border money transfers straight into a central business bank account will incur fees.  A good alternative is a foreign exchange platform. Making cross border payments ---------------------------- When making cross-border payments, weigh up the cost of fees against the foreign exchange rate to decide your most cost-effective option-paying by bank transfer, foreign exchange service, or card. Some providers offer no-fee payments but a poor exchange rate for the cross-border payment volume you need. For a high-value purchase, check real-time exchange rates for a few providers to ensure not losing a significant amount of money during the transaction. If you’re paying an overseas supplier for products and services and they’re charging you in your local currency, then you won’t need to pay any foreign exchange fees. It’s always meriting checking the supplier’s cost in the supplier’s home currency to determine if there would be a discount. It is impossible to accept global currencies without an outstanding payment processing company. Your payment management structure should help you lessen declined transactions, reduce customer dissatisfaction, maintain low costs, and reduce the holding of foreign currencies, among others. Once you decide to accept foreign currency, your future hurdle is picking the best payment processor.  We, at Salt, provide borderless global payment solutions, in an effort to make not just your cross border but domestic payments too, safe and smooth.  Visit [Salt](https://www.salt.pe/) to know more! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Guide To Different Types Of Taxes SMEs/MSMEs Pay For International Business Author: Ankit Parasher Published: 2021-05-05 Tags: small business, tax credits, tax incentives URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blognew4-745x1024-1643961256084-compressed.png) So you want to [expand your business internationally](https://salt.pe/2021/03/15/how-to-expand-your-business-internationally/). Whether it’s Europe or the US you’re considering, there’s a lot of potential in both these markets. Indeed, the Indian market itself is increasingly becoming favorable to [international businesses](https://www.salt.pe/2021/02/11/what-it-is-like-doing-international-businesses-in-india/). But starting a business abroad has just as many prospects. From solid legislation systems and favorable economies to access to highly skilled workforces and the latest technologies, the opportunities in doing [business abroad](https://www.salt.pe/2021/03/15/how-to-expand-your-business-internationally/) are very promising. However, one grey area in most people’s minds is often related to taxation in these countries.  If you’re a large enterprise or own a large-sized business, tax matters can be relatively more straightforward since you will find various experts in the field to guide you. On the other hand, if you own or operate a Small and Medium Enterprise (SME) or a Micro, Small, and Medium Enterprise (MSME), you’re likely to find the whole process tiresome and confusing.  If a guide on different types of taxes small businesses should pay abroad is what you’re looking for, you’re at the right place. Taxation in the EU ------------------ The different types of taxes you need to pay for small businesses in the EU are Corporate Tax, Maximum Income Tax, and Value Added Tax. All throughout Europe, tax compliance costs differ with respect to the company and sector.  A study conducted by the _EU Directorate-General for Internal Market, Industry, Entrepreneurship, and SMEs_ in 2018 revealed that [tax compliance costs in the EU are higher for SMEs than large enterprises](https://ec.europa.eu/docsroom/documents/33741/attachments/1/translations/en/renditions/native). Paying out all three categories of taxes significantly adds to the burden of SME owners. Findings from the study even showed that about 2.5% of the turnover SMEs made had to be paid in taxes.  However, this should not deter you from starting a new business in the EU since several tax incentives are available for small businesses. Some countries have lower tax rates than other countries.  Hungary, Bulgaria, Ireland, Lithuania, and Cyprus have the lowest tax rates in all of the EU. While the regular Corporate Tax rate stands at 25% in Bulgaria, SMEs need to pay only 20%. Similarly, in Croatia, the Corporate Tax for small businesses is 12%, while the standard rate is 18%. Similarly, there is a wide range of tax incentives available for SMEs throughout Europe. Out of the 27 Member States in the EU, at least [18 countries provide tax incentives specially targeted to small businesses](https://poseidon01.ssrn.com/delivery.php?ID=807021021065097083086072105027115107041027049084057009028001125104121023113008104011001021016037024036049108090066072069070020039060090021004107067094114003075092034087071068092117113001005003004026026121101097103091077100107116080122081004072084086&EXT=pdf&INDEX=TRUE).  As an SME owner, you will also have access to preferential tax rates along with investment allowances, tax credits, etc. In some cases, you may also get tax benefits in relation to the creation of additional jobs in the market. Some of the most popular forms of tax incentives in EU countries include reduced corporate tax rates, investment allowances, accelerated depreciation, tax credits for newly acquired assets/newly hired employees, and exemptions from fairness tax, capital gains tax, local business tax, etc.,  All in all, regardless of reports on how taxes are high for SMEs in the EU, thanks to many incentives and tax benefits, starting your business here would be a great opportunity.  Taxation in the US ------------------ Moving to [business taxation in the US](https://www.usa.gov/business-taxes), we have to say it is a bit more complicated, especially since small businesses have to pay more categories of taxes than in the EU. But hold on, as we will explain it to you.  Instead of a single small business tax, there are six categories of business taxes you’ll have to pay if your business is in the US. These are Income tax, Payroll/ Employment Tax, Self-Employment Tax, Excise Tax, Sales Tax, and Property Tax. Wondering how income tax –  the tax that individuals pay on their income – fits into this category? Well, it’s different in the US. Even if you are a business or a corporation, you need to pay both federal and state tax on your business’s net income each year.  Considering that you are the owner of your small business, you will also have to pay a self-employment tax if your net income in a year is more than $400. The self-employment tax is set at 15.3% and covers social security and Medicare.  ![](https://lh6.googleusercontent.com/bKSTCA13JwUIAzsRwthMdWG4Gi2epEwvwsxTr6y8DT8ArDcMFYSJ9iOegqJ8naMuog87tIm4pt0Syo48dujcW_WTZ235uTm6YAVxQozxy_IAM7SkPsooyZTvn0_E0VeqeizMBP4x) Moving on, you will also have to pay about 7.25% employment tax on the gross payroll of your employees. Failure to pay employment may attract harsh penalties. Excise tax is usually indirect; property tax is not. All buildings and land owned by your small business will be taxed at 0.15% – 1.90%, depending on which state you’re doing your business in.  In addition to this, you may also be charged Capital Gains Tax and Dividend Tax on your small business, but these are usually adjusted in the owner’s tax bracket. We know it seems overwhelming to start a small business with all the endless categories of taxes you’ll have to pay. However, you are also eligible for various tax credits. For instance, if you have taken health insurance coverage for your employees, you are eligible for up to 50% tax credits in the Employment/Payroll category. Providing paid family and medical leaves to your employees will also qualify you for tax credits in the same category.  Similarly, you can avail of tax credits in several other areas like motor vehicle credit, fuel credit, employer-paid childcare facilities credit, etc. However, these credits come with strict regulations on availing them; hence you need to make sure that you’re following the tax credit requirements 100%.  Get assistance with Salt  ------------------------- Regardless of where you plan to start your business, you need to research well when you’re planning to start a new business, especially in a foreign country. You need to know the A-Z details from market volatility to demand for goods and services and economic and political conditions. Thanks to Neobanks like [Salt](https://www.salt.pe/) that offer cross-border financial services, you can now get tailored support for your business at affordable rates. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Heavy Heart Vs Heavy Wallet: Why Money is Important in a Relationship Author: Ankit Parasher Published: 2021-04-28 Tags: money, money is important in a relationship, relationship URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-2-745x1024-1643961347691-compressed.jpeg) Money can be problematic enough when you’re single, alone, and trying to make your ends meet. Throwing another person – a partner – into the equation would just make things dicey. Fact is, both of you will have to sit together and decide where you’re collectively spending your money. Whether it’s just for a simple dinner date or managing bills when you’re living together, money plays a much bigger role than you’d think when it comes to romance.  Why does money matter? ---------------------- Let’s face it, your lifestyle and habits are usually determined by the amount of money you can spend. When two people get together and make money decisions, it is extremely possible sometimes individual needs have to be forgone for the collective good.  Then, it becomes inherently important to have an open and honest [discussion about finances and money issues](https://salt.pe/2020/06/29/honey-lets-talk-money-financial-talk-in-your-relationship/) to ensure that money is not coming in between you and your partner. When you live with someone or pretty serious about your relationship, it is pretty common for you to pool up your finances. It may become “my money and your money” to “our money” sooner than you think, However, this is not always the case with everyone. There is a significant number of couples who spend entire relationships and marriages with complete financial independence. Still, it may not exactly be in line with what you and your partner expect from the relationship. Money becomes a joint effort as a relationship moves forward. Here are six reasons why money matters more than you think it does.  Financial accountability ------------------------ Irrespective of their working situation, both parties in a relationship should play a role in the personal finances. It is crucial that money does not feel like a paycheck handed from one to the other. It is common for one person in the relationship to take on more financial responsibilities. Still, both should be on board with a plan, and that plan should be well communicated before setting it in action.  This can be challenging if one person in the relationship isn’t as responsible with money as the other. This can be remedied by keeping checks in place, like a monthly allowance system. However, it becomes increasingly imperative to approach the subject early on in a relationship and discuss with complete deliberation on how important money is in a relationship. Deciding on how to split up bills --------------------------------- Some think “equal splitting up of bills” means a 50/50 split in finances, but often that’s not always realistic for a couple. What if both of you don’t make the same amount of money? This system becomes very complicated very soon, as some expenditures may be entirely for one of you, and being forced to split evenly makes no sense.  Different bills may need different ratios of splitting up, and this should be carefully dedicated. This may seem like it’s taking the romance and trust out of the relationship, but it is crucial to make sure to decide in advance.  Keep in mind that there is nothing wrong with one partner taking most, if not all, of the financial burden. However, there should be no confusion with regards to who plays which role when it comes to finances.  Apart from certain rare cases, one partner tends to earn more income than the other, and they may consider taking a major portion of the bills every month. There is no rhyme or reason to expect both partners to take care of their bills equally, and they could consider splitting their bills in the ratio of their income. Unexpected need to support your partner --------------------------------------- Thoroughly understanding your partner’s financial standings is necessary. Keep in mind; this doesn’t mean you charge in inspecting their bank statements, but communicating on whether your lifestyle is something you can afford is absolutely essential. Financial hardships are more common than you’d think. It is completely fine (if not humane) to help out your partner in times of need. However, it is important that it doesn’t happen extremely often, that it becomes expected of you to carry the relationship financially. And yes, there might be times when you need to unexpectedly support the other person in your relationship. Things happen, people lose jobs, big bills need to be suddenly paid, and in these moments, you’ll learn that your money is important in a relationship.  Financial priorities -------------------- You need to make sure that both of you are on the same page when it comes to routine financial decisions, like your monthly budget or your investment goals. For instance, when your partner is saving for a well-deserved vacation, it wouldn’t be tactful to drop a few grand on a fancy PC upgrade if you haven’t planned for it in advance and cleared it with your partner.  One of you may have trouble [controlling emotional spending](https://salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/). These mismatches in priorities are extremely harmful, and while two or three such instances might not ruin a relationship, they will have a pretty serious impact. Whether you like it or not, your spending patterns and habits are going to affect your partner as well. One of you may even have objectively [toxic financial habits](https://salt.pe/2020/12/16/toxic-financial-habits-to-leave-behind-in-2020/). However, that does not mean you can never splurge on yourself. You’ve spent a lot of time and energy earning your money after all. But it is important that you stay within reason and run major spends by your partner.  Similarly, you can’t police your partner and demand them to run every rupee by you, you need to be able to trust their judgment with finances, and that’s much easier when the two of you share similar goals. Learn about each other’s investment strategies ---------------------------------------------- Investment is one of the most important areas of financial management. Competent investment strategies are often the difference between a happy retirement and having to depend on your offspring for a roof above your head post-retirement. However, there are certain points to keep in mind before investing as a couple. If both of you want to open a joint brokerage account, make sure that your investment strategies match. There’s nothing inherently  wrong with having different financial strategies. However, having different styles may be a breeding ground for conflict and may even end up destroying wealth. Instead, you can choose to operate on separate brokerage accounts or create two joint accounts.   Planning a financial future together  ------------------------------------- Relationships involve several financial decisions, including housing, cars, vacations (and [holiday gifting spending](https://salt.pe/2020/11/30/the-ultimate-guide-to-saving-money-for-holiday-gifting/)) kids, and investments. If you don’t communicate and have open conversations about your finances, you can very quickly find yourselves fighting about how the other couples spend their money strategically. Having a roadmap on what financial decisions you make as a couple (along with the when) can be extremely useful to ensure that you both constantly remain on the same page. Tracking your expenses and analyzing your spending is not nearly as complicated as it sounds. With state-of-the-art tools like spend analyzers on offer by leading FinTech platforms like [Salt](http://salt.pe), financial management has become extremely easy if you’re looking for more tips on managing your personal finances, head on over to the [Salt blog](http://salt.pe/blog), where we are making sure that the financial journey is smooth for our readers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Noob's Guide To the Cryptocurrency Market in India Author: Ankit Parasher Published: 2021-04-20 Tags: cross border paymet, Cryptocurrency, Digital banking, digital transactions, Future, India, SME Payment URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/blog-7jpg-745x1024-1643961393575-compressed.jpeg) The concept of cryptocurrencies has quite literally taken the fin-tech world by storm. For beginners, the easiest way to understand it would probably be calling it ‘virtual money’ since that is one of its key features: its physical absence. Mostly, people who haven’t delved too deep into learning about it relate it to another word: Bitcoin, and yet another word: blockchain. Assuming that a reader is indeed a beginner, explaining the Blockchain system, first of all, would be the safest bet of explaining crypto in general to them.  Blockchain Explained -------------------- A blockchain is an advanced system of managing transaction records. It’s a network that collectively maintains records of transactions. Each transaction done on this system is added chronologically and visible to everyone on the network – thus creating a shared digital ledger. Anyone who is a member of that public peer-to-peer network can verify data related to the sender and receiver. Further, blockchain uses cryptography to ensure that these records cannot be changed.  Cryptography ------------ Cryptography refers to the science of security, employing encryption and decryption in order to protect information from third-party perusal. It is vastly employed in blockchain technology. It uses the technique of converting plaintext (normal text) into ciphertext (coded text) and then reversing the process, both with the help of aides called ‘keys’.  Now, finally, let us move to cryptocurrency.  Cryptocurrency and why it’s so popular -------------------------------------- When you bring a financial system to a blockchain, you get cryptocurrency – a digital asset or currency that is regulated by a decentralized system online. When we say ‘decentralized’ we mean that users can directly trade with each other without the involvement of a third party (in the real world, usually a bank), meaning that they are immune to government intervention as well. Since everyone has a copy of this shared digital ledger that we call the blockchain – they are self sufficient to manage all transactions. They don’t need banks. But why would anyone maintain this copy of transactions? What’s in it for them? What’s their incentive? That brings us to mining. What is Cryptocurrency Mining? ------------------------------ Cryptocurrency mining is a process carried out by high-powered computers that solve complex numerical problems that are too difficult to solve by hand. By solving these problems, these computers earn the right to put transactions on the blockchain. Simultaneously, they are rewarded with cryptocurrencies as well. So that’s their incentive – there’s money to be made! This method of generating new cryptocurrencies by solving a computational puzzle is known as bitcoin mining. Cryptocurrency mining is required to keep the ledger of transactions on the blockchain and also to ensure that the transactions that are taking place are secure and trustworthy. It’s how Bitcoin (and other cryptocurrencies) managed to eliminate the need for banks). Another major feature is that cryptocurrency is that it can be anonymous. However, it is also completely transparent and trackable. Anonymous, because you can hold a crypto address without revealing anything about your identity in that address. But trackable due to the blockchain system it depends on, which is public. Further, transactions occur at the drop of a hat and with far lower fee charged than conventional financial systems. Also, the issues of double spending and other counterfeit malpractices do not exist with virtual currency.  Finally, it’s volatile, liquid, and rare. Things which make it very valuable indeed.  Bitcoin ------- Bitcoin was the first cryptocurrency to be created by the mysterious Satoshi Nakamoto. After it came into existence and rose to astounding heights (in terms of price and adoption), a huge number of variants have cropped up with similar basic features. These are collectively called altcoins. A few examples are Ethereum, Litecoin, Namecoin, etc. There are a lot of other terms which could also be inserted in order to get a more comprehensive understanding of the cryptocurrency world. Such as storage of crypto coins (in wallets), platforms for cryptocurrency transactions (exchanges), etc.  Bitcoin has proven to be a secure, reliable, and viable mode of the global transaction. Although cryptocurrency mining is a separate business with a broad technical scale, the general public is interested in trading cryptocurrencies. This has led to a lot of crypto exchanges opening up in India as well as new tokens being created too.  Current status of Cryptocurrency in India ----------------------------------------- As per the Government of India, there had been a practical ban on virtual currencies for nearly 2 years between 2018 to 2020. There is also talk of a new bill being introduced that may ban cryptocurrencies altogether and criminalize their trading and even their storage. However, there is some light at the end of this dark tunnel. Judging by recent comments from officials, the government is not opposed to the idea of crypto trading and the whole blockchain system, it wants to ensure complete security in doing so first. There is also speculation that a new cryptocurrency might also be in the works from the Government’s side. Further, despite government threats of a ban, transaction volumes are only increasing. Business is booming and everyone wants their piece of crypto cake.  So what’s the current crypto scene in India then? You can buy it, You can trade it. You can speculate. There are some high-end exchanges available for these very purposes too.  With the profits ushering in, it certainly looks like a good industry to be a part of. Not to mention, that we at [Salt](https://salt.pe/), are a dedicated faction working as a part of this revolutionary idea, making it much easier to maneuver yourself in the online world of cryptocurrencies. And that is pretty much a noob’s way around it. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Set Up Business Goals for the New Financial Year – Business 101 Author: Ankit Parasher Published: 2021-04-12 Tags: business goals, business goals for 2021, financial year, new financial year URL: https://salt.pe/blog/null Setting business goals is one of the best ways to measure and identify how your business is doing. It enables us to monitor our progress, and of course, elevate it to newer levels. The criticality of such an exercise is underrated. To paraphrase author Terry Pratchett, “If you don’t know where you come from, how will you know where you’re going?” As you intend to start the new financial year gracefully, especially after the crucial period of lockdown due to the covid pandemic, here are few business goals for 2021: Business Goals for 2021 ----------------------- * Build your team It takes a committed and focused team for a company to grow successfully. It is good to have employees at all levels make suggestions about business goals and have active involvement in the development of the company.  According to a [study](https://jbepnet.com/journals/Vol_3_No_1_March_2016/8.pdf), employee goal programs can help in increasing the effort and performance across the board. This way, you can set new business goals for 2021 by letting all your employees actively take part in making their own set of business goals, and achieving them. Team building and diversity training help employees work comfortably and provide them work satisfaction. They help employees speak for themselves and encourage creative, out-of-the-box behavior. If your company wants more input from lower levels, then this is important. Competition, bonuses, and recognition awards can bring a spark to any team, therefore, carve money out of the budget to build friendly competition among teams. * Consider new business power tools On the top of your list of business goals for 2021 should be the usage of power tools for your business. Big data and business analytics can provide a major competitive advantage to your company. The big data and analytics market is expected to grow to [$274.3 billion](https://www.statista.com/statistics/551501/worldwide-big-data-business-analytics-revenue/) by 2022. They can help you measure all your business goals and by considering investing in these tools, you will be able to get valuable insights, which will help you make better decisions for your company. Many companies such as Google Analytics, IBM, Microsoft’s Power BI are offering affordable big data and analytics services. * Work on Customer Satisfaction The idea is to focus on selling things that make customers feel they are getting the best deal. Irrespective of the price of your product, you need to highlight to your customers why your product balances value and cost. You also need to make sure your products are more reliable. By doing this, you can gain new customers, while maintaining the pre-existing ones. To fulfill your business goals, along with just selling the product, you also need to assist the customers in the later stages by providing the best customer service. If your company doesn’t have one, then you should probably consider getting this on board as soon as possible. Good customer service results in good customer satisfaction, thus improving brand loyalty and custom retention.   * Set your accountability checkpoints. To achieve your business goals for 2021, you must match each small step to weekly and monthly benchmarks. By measuring your progress constantly against timelines, the company can build a wildly healthy habit of focusing on its most important aspects. There come times when you will not hit all your targets throughout the year, but hard work and dedication pay off, so do not get discouraged if you fall behind your business goals plan. Things can go from 0 to 100 quickly in business, therefore, stay focused, make minor adjustments as needed, but do not give up. * Increase Market Share This business goal is customer-driven. The main idea is to sell more products to your target consumers, thus, increasing the overall market share for your product for investors. For example, if you are operating a B2B company, your goal should be to reach out to more HR departments or company heads. If you are operating a small business that focuses on building computers, you’ll want more of the local population to come to you for your services. * Increase Community Outreach If you are running a B2C company, becoming part of the community is a fantastic way to connect, and it should be one of your business goals for 2021. Whether you are a large or a small company, community outreach is an excellent goal for new and established organizations alike. This improves your recognition amongst the public and builds trust within people, about your goals. This in turn boosts your marketing reach and increases your sales. Community outreach might even allow you to [expand your business internationally](https://www.salt.pe/2021/03/15/how-to-expand-your-business-internationally/). For example, if you run a small-scale sports store, community outreach is what’s gonna keep you above water when competing with larger corporations.  * Manage your Budget and Profit  Financial goals are one of the top-level business goals for 2021 you can have. They are both aspirational and measurable, which makes financial-driven objectives started for young businesses. To maintain your profits, you need to have a balance between profitability and investments. Investments are necessary to test out changes in the market and expand the business. Balancing a budget for a fixed period is equally important and great for teams who may get a set amount to invest in campaigns or projects quarterly or annually. By avoiding a few [common mistakes](https://www.salt.pe/2021/03/01/8-most-common-financial-mistakes-you-may-be-doing-and-how-to-avoid-them/), you can establish a balanced goal, and reason how much money can go into growth and new projects/tools/campaigns, while still reaching a paired profit goal. * Invest in Quality Management Total Quality Management is all about reducing manufacturing error and streamlining a supply chain with physical products. It equally applies to both, when training staff and dealing with improving customer experience. Improving quality across a wide variety of areas and is one of the great company-level business goals for 2021. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Impact of COVID-19 on International Trade in India Author: Udita Pal Published: 2021-04-02 Tags: covid 19 situation, economy, exports, GDP, imports, protectionism URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/8TCdF6buUqCt4JA6vF13nDreY9LTAwlI558NkIlMZqWX9a9tJXgQqZmP9Ay6-WcrVnG93kNLkflb-oEFWeHyvsIdpJ2xvtZnkikZg32C-nVlfLILvUBgirDbaMojQAYv1gxP3UFr) During the pre-COVID-19 period, India’s exports of goods and services stood strong in 2020, accounting for 19.74 percent of its GDP, while imports accounted for 23.64 percent. The introduction of COVID-19 wreaked havoc on the global [import-export](https://salt.pe/2021/02/08/importing-exporting-ideas-and-how-to-build-a-global-business/) market and stifled cross-border trade. According to the [World Trade Statistical Analysis 2019](https://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf), India is one of Asia’s emerging economies with a rising role in foreign trade and the global value chain. However, the effect of COVID-19 on Indian trade is estimated to be [348 million dollars](https://www.thehindu.com/business/Economy/covid-19-trade-impact-for-india-estimated-at-348-million-un-report/article30987932.ece), and India is one of the world’s 15 most-affected economies, according to a UN [study](https://wits.worldbank.org/CountryProfile/en/IND#:~:text=India%20exports%20of%20goods%20and,percentage%20of%20GDP%20is%2023.64%25\)). Because [international trade](https://salt.pe/2021/02/11/what-it-is-like-doing-international-businesses-in-india/) has slowed, now is an excellent time to promote domestic goods and manufacturers, as well as improve domestic demand, by enforcing the protectionism theory. Here’s a closer look at the impact of covid-19 on international trade in India, first with the perspective of protectionism. Theory of Protectionism ----------------------- Protectionism is a philosophy that seeks to raise exports while lowering imports by erecting different types of trade barriers so that domestic industries have a reasonable chance to compete with foreign goods and services. Until the 1990s, India was a protectionist country. However, as part of the Liberalisation, Privatisation, and Globalisation (LPG) model, India opened its market to foreign trade in the late twentieth century. COVID-19 has spread to all of the world’s major nations, resulting in a decline in global trade. As a result of the reduced trade, countries have begun to use their goods. The question here is whether developing countries like India are prepared to face Covid-19’s challenges and use domestic goods. Protectionism can be implemented in a variety of ways ----------------------------------------------------- * Impose high import tariffs on goods from other countries. * A prohibition on the importation of such goods. * Subsidies for domestic producers should be made available. * [Make rules and regulations that make obtaining a license difficult for international producers.](https://www.focus-economics.com/blog/effects-of-trade-protectionism-on-economy#:~:text=There%20are%20various%20methods%20of,other%20countries%20and%20foreign%20markets.&text=This%20import%20quota%20is%20generally,group%20of%20persons%20or%20companies.) * [Exchange rate caps to lower the cost of domestic goods in international markets.](https://www.focus-economics.com/blog/effects-of-trade-protectionism-on-economy#:~:text=There%20are%20various%20methods%20of,other%20countries%20and%20foreign%20markets.&text=This%20import%20quota%20is%20generally,group%20of%20persons%20or%20companies) * [Anti-dumping legislation should be devised.](https://www.focus-economics.com/blog/effects-of-trade-protectionism-on-economy#:~:text=There%20are%20various%20methods%20of,other%20countries%20and%20foreign%20markets.&text=This%20import%20quota%20is%20generally,group%20of%20persons%20or%20companies.) The Indian government’s recent decision to boycott Chinese products and halt trading practices with China encourages them to follow the protectionism theory. Furthermore, on the grounds of national security, sovereignty, and integrity, the Indian government has banned 59 Chinese mobile applications and later [banned 118 Chinese apps](https://economictimes.indiatimes.com/tech/software/india-bans-59-chinese-apps-including-tiktok-helo-wechat/articleshow/76694814.cms#:~:text=The%20Government%20of%20India%20has,country's%20%E2%80%9Csovereignty%20and%20security%E2%80%9D), including PUBG. As a result of the government’s intervention, numerous alternative apps appeared, and people were encouraged to use them in combination with domestic products to become self-sufficient, i.e. Atma Nirbhar. In the gaming industry, Bollywood actor Akshay Kumar has announced the launch of the FAU-G game, which will donate 20% of the game’s revenue to the BharatKeVeer Trust, in keeping with Atma Nirbhar’s vision. Atma Nirbhar Bharat  -------------------- To resolve the issue of a lack of local development, Prime Minister Shri Narendra Modi announced the concept of Atma Nirbhar Bharat in his speech on May 11, 2020. The vision envisions products being generated and India’s potential is increased. Economy, structure, technology-driven framework, vibrant demography, and demand are the five basic features of the Atma Nirbhar Policy. The Prime Minister’s vision for Atma Nirbhar Bharat is for India to become self-sufficient. This does not imply that India is isolated or anti-global. India has great potential to become a manufacturing hub because it can mass-produce ready-to-use and consumable products. The goal of this vision is for India to be competitive with the rest of the world. India has drawn [38 billion](https://www.thehindubusinessline.com/economy/modis-vision-of-atmanirbhar-bharat-isnot-about-isolation-or-anti-globalisation/article32358392.ece) in foreign direct investment, also at the height of COVID – 19. The vision involves not only manufacturing products for the domestic market but also the global market.  The New Education Policy (NEP), which was announced earlier this year, would expand the reach of the education sector, enabling Indian students to gain more exposure and establishing India as a global education hub. It will prepare the youth to make India a global leader in science, technology, and other fields, thus forming the Atma Nirbhar Bharat vision. Protectionism is promoted by the philosophy, vision, and steps taken to achieve the Atma Nirbhar Bharat. ### Relaxations are given by the government after the advent of COVID 19 According to a new study published by the World Trade Organization (WTO), foreign trade will decrease by [32% by 2020.](https://www.wto.org/english/news_e/pres20_e/pr855_e.htm) To mitigate the economic losses that are impacting trade, the Indian government has launched new policies to promote foreign trade.  1. The government has announced a Rs 10,000 crore incentive program to encourage the development of [active pharmaceutical ingredients (API) in India](https://economictimes.indiatimes.com/industry/healthcare/biotech/pharmaceuticals/local-api-cos-to-gain-from-10kcr-scheme/articleshow/76143490.cms?from=mdr). Imports and exports of API may be considered shortly for ramping up manufacturing for domestic use and exports.  2. To recoup the country’s economic impact and improve the MSME market, the government has devised new economic packages to shift income to the poorest segments of the economy, as well as complementary monetary authority liquidity-enhancing initiatives. 3. The government is allowing customs clearance 24 hours a day, seven days a week to facilitate hassle-free international trade transactions. Also, [the Foreign Trade Policy, which was set to expire in March 2020](https://pib.gov.in/PressReleasePage.aspx?PRID=1609704), has been extended for an additional year to promote import and export within the country.  Relaxations are often granted in terms of the paperwork provision and its observance. The validity of various schemes that allow duty-free import of products, certificates, authorizations, and licenses, among other things, has been extended. 4. Fourth, by the time various countries implemented the lockdown, physical copies of Certificates of Origin have become an impediment to international trade. To make this process easier, the Indian government has agreed to issue Certificates of Origin retrospectively through approved Indian agencies, on the condition that, following the reopening of offices, India’s trading partners would allow qualified imports under preferences on a retrospective basis, subject to the creation of a certificate of origin by Indian exporters.  Never before has the world faced such a compelling crisis, putting foreign trade in jeopardy. Protectionism’s goal has been furthered in a way as a result of this. In India, this has resulted in the funding of domestic producers and goods to achieve self-sufficiency. To achieve this goal, the country must have a strong backbone capable of supplying the necessary products at a reasonable price and of high quality. According to global standards, such local products should be competitive. The Indian government should frame policies that support upcoming, existing, and small startups to support locals and have good products and producers within the country. Startups should have access to the best testing tools available anywhere in the world at a lower cost. The government should provide some protection to start-ups so that fresh graduate minds from all over the world are not afraid to start something new. These actions will inspire people to try new things and create new products, as well as promote Atma Nirbhar Bharat. This would boost the cost and quantity of domestic goods on the foreign trade market, bolstering the protectionism argument. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Bumble’s Queen Bee-Whitney Wolfe Herd! Author: Ankit Parasher Published: 2021-03-30 Tags: andreev, bumble, dating app, whitney wolfe, whitney wolfe herd URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/tmSBpHm6CZCClWA1dT7Y4mWkMxTUyj-2ItjgX1K_hr4YOI3pHbpa1zLbjS-EP2oP7VrCcYRYs4s_CO5TTpWSXCyCNFsN-8t7hv9WBAgpcg1peFkOhrRryG6xnTCcFXusyVt16j8D) Source: [Bumble](https://bumble.com/en/the-buzz/bumble-ipo-whitney-wolfe-herd-speech)  When shares of the famous dating app, Bumble, soared in its IPO on 11 February 2021, the company’s 31-year-old founder, Whitney Wolfe Herd, became the world’s youngest self-made woman billionaire. Her 12% stake in the company was worth $1.6 billion at 12:40 p.m EST on that day. Bumble stocks opened at $76 – way higher than its initial IPO price of $43 per share. Bumble also topped $13 billion in valuation. According to Bumble’s announcement, the Founder Wolfe Herd owns 21.54 million shares, which is equivalent to 11.6% of the company. Along with being the world’s youngest self-made female billionaire, she is also the youngest female CEO ever to take a company public in the U.S. A bit about Bumble ------------------ As of September 2019, Tinder and Bumble were the first and second most popular dating apps in the U.S., with monthly user bases of 7.9 million and 5 million, respectively. In 2017, the company Match Group, the parent company of the famous dating app Match.com,  tried to buy Bumble for $450 million. At $76 a share early Thursday (11 February) afternoon, Bumble’s market capitalization is $8.6 billion. On the other hand, Match Group, which also owns the dating app Tinder, has a $45 billion market capitalization. Bumble reported revenue of $417 million in the first nine months of 2020, which is $54 million more than the revenue reported over the same time frame in 2019, $363 million. Match Group is a bigger company, also reported $1.7 billion in revenue in the first nine months of 2020 and an amount of $1.5 billion in the year before that.  As a result of the public offering, the Austin-based company raised a whopping amount – $2.2 billion. It is said that most of the funds raised in the offering, will be used to either purchase or redeem shares from its pre-IPO owners, namely, private equity firm Blackstone, which owned nearly 91% before the offering, and Wolfe Herd. The prospectus also mentions a $120 million loan that the company had given to Wolfe Herd in January 2020. The loan was anyway settled a year later after Wolfe Herd forfeited her $95.5 million worth of Bumble shares.  Whitney Wolfe’s journey ----------------------- ![](https://lh4.googleusercontent.com/h11bTcQgAKp8e3keHnR5jczZuaWInS2PcLS5jfRLiwaRsXN8QcwKtv-5-kLOJKXfdODHKaDYDgFfc5SwqsWPftAe7DRskqR-rs1ebpER9-kpQvmauo-yA1bMutkM3k2LTSHHAYHU) Source: [Yahoo](https://in.style.yahoo.com/whitney-wolfe-herd-31-old-090300912.html)  Whitney Wolfe Herd was born on July 1, 1989. Before Bumble, Whitney Wolfe worked for Tinder, another famous dating app. At age 22, Wolfe Herd started working with Hatch Labs. Through that, she got involved with the startup Cardify, a project led by Sean Rad through Hatch Labs IAC incubator. Even though the project was later abandoned, Whitney Wolfe joined the development team for the dating app Tinder, in the year 2012, with Rad and Chris Gulczynski, within the IAC startup incubator. She soon became the vice president of marketing for the company and was even responsible for fueling its popularity on college campuses.  She sued the company for sexual harassment right before she founded Bumble in the year 2014. She claimed that Justin Mateen, her former boss, and boyfriend, had sent derogatory texts and threats. Supposedly, he even stripped her of her co founder title at Tinder. Despite all the allegations, Tinder denied any wrongdoing, and the case was settled quickly and confidentially.  After she quit Tinder, Whitney Wolfe worked with a London-based Russian billionaire, Andrey Andreev, to start Bumble. Andrey Andreev had been building successful online dating apps for the Latin American and European markets. While other dating apps allow both men and women to make the first more, Bumble allows only women to make the outreach first. This stands out as a huge differentiating factor from Tinder and any other online dating apps. In April 2019, Wolfe released the first print issue of Bumble Mag in partnership with Hearst. In 2019, Forbes published an [investigation](https://www.forbes.com/sites/angelauyeung/2019/07/08/exclusive-investigation-sex-drugs-misogyny-and-sleaze-at-the-hq-of-bumbles-owner/?sh=686397d86308) that found allegations of a misogynistic atmosphere in the London office, which was under Andrey Andreev’s leadership. Four months after this was out, Andrey Andreev exited the company in November 2019. The majority of the allegations were denied by the company and an internal investigation was launched, It concluded that the allegation made by the Forbes article is incorrect. Success Story ------------- Bumble’s parent company, MagicLab, was sold in November 2019, to the private equity firm The Blackstone Group. Co-founder Andrey Andreev relinquished his entire stake in both Bumble and its sister company Badoo. Whitney Wolfe became the CEO of the newly acquired MagicLab and was valued at $3 billion, with an estimated 75 million users. She received an ownership stake of 19% of the company. In the year 2020, Bumble replaced MagicLab and was the new parent company of both Bumble and Badoo. Apart from this, Whitney Wolfe has also invested in a UK-based gay dating app, Chappy, which was co-founded by Jack Rogers, Max Cheremkin, and Ollie Locke. With very few numbers of [women investors](https://salt.pe/2021/03/17/missing-where-are-all-the-women-investors/) in the business world, Whitney Wolfe stands as an example to all other women. It was also said that Bumble would be offering product development and marketing support to the company. Despite the rocky journey, Whitney Wolfe was named as one of the Business Insider’s 30 Most Important Women Under 30 In Tech in 2014. She was also named as one of Elle’s Women in Tech in 2016. Not to forget, she was mentioned in the Forbes 30 under 30 in 2017 and 2018, in the Time 100 List in 2018, and in December 2017, she was listed in a TechCrunch feature on 42 women succeeding in tech that year. Whitey Wolfe worked towards women empowerment and is one of the most successful women who has led herself to become the youngest self-made women billionaire. With Bumble being an [international business](https://salt.pe/2021/03/15/how-to-expand-your-business-internationally/), it has got a lot of potential on the stage for a very long time. Hence, we can say, Whitney Wolfe here to stay and achieve a lot of milestones in the near future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Being a Female in the Finance World Author: Udita Pal Published: 2021-03-23 URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/kDOTmZvr4FrOwwi6Ff8alPxcCiHIMN0fe6Xt9JIDT345W3uGVFQZ3OJmnqBXJU-cFy_kom0IR3AKXX-6c33MdHBQW79Udj-fktsS4n0iz4Me2mhkr2BOxiRnWykj21P3Yvih1LHN) _First, you need to have a dream; second an idea of what your goal is, and third, passion. Obviously having the skill set and working hard is important, but if you don’t have a dream and a goal, then don’t be surprised when you don’t get there. And if you don’t fill your dream with passion, then you can become disheartened about your career choice during tough times. And there are always tough times in a cyclical business like finance._ In these very words, the CEO of Morgan Stanley China, Ms. Wei Sun Christianson,  has beautifully summed up the struggle and the prerequisites for a woman to survive in a highly competitive industry like that of finance.  Conventionally, the finance industry has always been more male-dominated. From the fact that women only accounted for [42 percent of the class](https://hbr.org/2014/12/rethink-what-you-know-about-high-achieving-women) in Harvard Business School in 2019 to the fact that women account for only 21 percent in senior positions (aka the C-Suite) and that the total representation of women at the entry-level has remained almost constant at around 45 to 47 percent in the past 5 years, this goes on to show the feeble position of women in the finance sector. (Refer to the figures below). Even in India, women in the workforce in the finance industry only accounted for about 1[2 percent in the year 2017](https://moneymint.com/wp-content/uploads/2020/08/The-Bharat-Microfinace-Report-2017-Final.pdf).   ![](https://lh6.googleusercontent.com/hyC37yB757VYxfzH9c5O4pUagMKmRLMTLDD2QiTvgPxEaaxRhcBc8LHQgYxbj8iWdGxnCNZkKFAS2cUhhQKhH77_s2dJ2kRZtDwRq2mPlW3323Hxa1SLQyrA8j0csP6ztGt9uaRw) Source: Report titled “[Women in the Workplace, 2020](https://www.mckinsey.com/featured-insights/diversity-and-inclusion/women-in-the-workplace)” by Mckinsey  While most other sectors of the society and the other industries are seeing more and more participation by women in the workforce and one of the biggest economies of the world, the United States of America, recently appointed its first-ever female vice-president, the finance sector is still struggling with giving women the key managerial roles in the organizations.  According to the [study conducted by the Harvard Business School](https://hbr.org/2014/12/rethink-what-you-know-about-high-achieving-women), in the areas of venture capital, private equity, and hedge funds, women occupy just 9 percent, 6 percent, and 11 percent of the senior roles in the organization.  Possible factors behind the stagnated growth of women in the workforce in the finance sector -------------------------------------------------------------------------------------------- While the gender disparity as far as employing women in the financial sector is very apparent, it is more important to identify why such a disparity exists. Traditionally, the gap has been significantly enhanced by the numerous social barriers imposed on women and the traditional roles the women have been assigned. Finance is one such sector where men have been considered to be naturally superior to their female counterparts.  Another prominent impediment to the growth of women in this sector can be attributed to the need for maternity leaves and other child care benefits. These are seen as roadblocks as far as promotions are considered in a lot of organizations. Lastly, one of the most significant factors stagnating the progression of women in the finance industry is the lack of women in senior positions. In fact, according to a survey conducted by [Catalyst](https://www.catalyst.org/research/women-in-financial-services/), women’s global representation on executive committees in major financial services firms was only 20%. Since the key positions are already occupied by males, it is very difficult to break this vicious cycle and promote more women to managerial and executive positions.  … and miles to go before we sleep  ---------------------------------- Even though the situation may look bleak today, it cannot be denied that several endeavors are being made on the global and local levels to promote women’s participation. For instance, in a [study by SEWA](https://sewabharat.org/wp-content/uploads/2014/05/Employment-Opportunities-for-Women-in-India%E2%80%99s-Growing-Financial-Sector-A-Study-Across-Four-States_website.pdf) (part of World Bank’s SIMO), it was concluded that one of the most effective solutions to improving the financial literacy of women and their overall participation, more and more work opportunities should be identified and/or created for women in the Finance sector specifically.  Even on a global level, more and more women leaders are taking a personal interest in increasing women’s participation in the finance world. The [Girls Who Invest](http://www.girlswhoinvest.org/) initiative by financial expert Seema Hingorani can be a good example of this. They aim that by 2030, at least 20 percent of the world’s capital should be controlled by women.  So, it cannot be denied that a change towards a more egalitarian finance industry is much overdue. It can be seen that trends are already changing towards it, one woman after another breaking the glass ceiling at a time. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## MISSING: Where Are All The Women Investors? Author: Ankit Parasher Published: 2021-03-17 Tags: finance, Investment, women URL: https://salt.pe/blog/null Introduction ------------ Politics. Defense. Sports, IT. Finance. Business. Law. Women now reign everywhere.  With the world transforming in leaps and bounds, it was about time everyone; especially women began recognizing the need for a prosperous life, fulfilling their short-term and long-term goals.  ![](https://lh5.googleusercontent.com/jMwMV_vH89eTAtjdyEQlwR8xrYKcrm_n8gnLos_RwrxwXGb1g8Nb8Y0DIKB49zrRtxq8_qb9NvcY4UxcQBq3Fw5UAbAXwdiFyCl5gmWoLRv1bHfW0fwRJXz2l7HT6yVi_GViHVI6) [source](http://www.notable-quotes.com/m/money_quotes.html) Thus, investing comes to be vital, and possessing the right investment skills, indispensable. For who controls the purse strings? Women. Ever tried researching early-stage investors and found just men, men everywhere? We shouldn’t be astonished. Most women refrain from dipping toes here: those who do mostly bank on their fathers or husbands to go over their policies. Crusading the common, outdated notion, some women out there are trailblazers. “Bring more women to business. That is imperative. It’s true.” says Christine Lagarde (International Monetary Fund).  According to the [U.S. Bureau of Labor Statistics](https://www.investopedia.com/terms/b/bls.asp), in 2018, women made up 46.9% of the total US labor force in finance. This surge is better than them, accounting for only 19.4% of [senior-level managers](https://www.catalyst.org/knowledge/women-financial-services) in the investment sector in 2016. Why investment is for women (too!) ---------------------------------- ![](https://lh4.googleusercontent.com/FaO1F1UWuKus8XBBOHVaxzJUTAOAzWijQWwmPI-Jt6XupZbumL9H57eSxWHWSJRxwgLHiJGjRQh_tarq4CVmBFLwQ7mtTnPNr9AKDWo9GgPYB9K8k_p0hjTyxzklWtz4-K6no3xu) Women not investing yet are missing out on more than they know. Investing is undeniably one of the best ways for a woman to accomplish her financial goals – ranging from a holiday, saving up for an emergency, a large expenditure (buying a house, marriage, etc.), sending her kids to school/college, saving for retirement, earning equal to if not more than men or just growing her overall wealth. Women feel accomplishing a sense of financial parity and liberation as a necessity. They have got to concede that overseeing one’s own and the family’s finances is honestly not that puzzling. They can get the hang of it all with an ounce of courage, patience, effort, and an open mind.  You might have trouble accepting this, but women are usually more risk-conscious, willing to accept and research what they are unaware of. Unrushed and well-thought-out is their investment approach in a nutshell. Why are the numbers disappointing? ---------------------------------- “Our research showed that it is not that women make a conscious decision to not invest financially; instead it is something they simply haven’t considered. So nine out of ten women \[have not considered investing\],” says Anna Lane, CEO of The Wisdom Council to panelists from EY, HSBC Global Asset Management, and AberdeenStandard Investments, all of whom partnered on the research. Other than opportunities to use investing to make money, women entrepreneurs are disregarding their inputs. It’s high time women start wielding and operating bank accounts, trading accounts, Demat accounts, and holding properties in their name.  #### Jenny Tooth, chief executive of the U.K. Business Angels Association, says: _“A lack of female role models is consistently noted as one of the key barriers inhibiting women from investing.”_ Many women lack necessary investment information, do not want to ask too many questions for fear of judgment, and are intimidated, having to continually battle against generalized comments like “women don’t invest, women find investing complex.” Due to their long-term investment perspective, preferences to participate in safer and less volatile investments with consistent track records lead them to trade less frequently. Today, it’s essential that we change this old school of thought and understand women’s importance in finance. Top Female investors -------------------- With women slowly colonizing the finance world, if you need role models to look up to, here are the best of the best – **Asha Jadeja Motwani, Kiran Mazumdar Shaw, Bharati Jacob, Rekha Menon, and more!** According to a post in The Motley Fools, female investors earn better returns than men, according to some studies. What can we do? --------------- The road to empowering women to invest employs asserting surplus information, considerable access to openings, exposure to role models, and unearthing routes to make non-physical forms of investments more tangible for them to invest in actively. Since a room of all-male investors deters female entrepreneurs, we ought to increase and encourage female investors to fund female entrepreneurs globally. The investment sources need to be inclusive of women who will support them.  Warren Buffett admitted that he invests like a woman and this, propels us to have an equal balance of men and women talking money. Saving and investing are two sides of the coin. Demonetization taught us many things, the most important one being -stuffing cash away under mattresses and cupboards is a dime a dozen, and with inflation, their value goes down. Are you looking to be an investor? ---------------------------------- If we ended up convincing you enough to be an investor, you should know that it isn’t a simple deal. Investing can go well and equally wrong. Besides being prepared to lose the money you invest, you must learn that the returns can be to god, too bad, or somewhere in between, and avoid some [common financial mistakes](https://salt.pe/2021/03/01/8-most-common-financial-mistakes-you-may-be-doing-and-how-to-avoid-them/). You might also want to check out [alternate investing](https://salt.pe/2021/03/03/introduction-to-alternate-investing/). If you are a woman unsure of your investing aptitude or don’t earn enough money to invest, consider starting with a small investment plan. Women now need to be fearless investors. Happy Financial Freedom! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Expand Your Business Internationally Author: Ankit Parasher Published: 2021-03-15 Tags: business expansion, expand business internationally, global business expansion, international business expansion URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/EdxyjtiP0R7QFhZojIooQsKxqaJPsJbJLi8eDKcHC84pmvwH6OdLf-DwNVkxOiGWMt2Q_rcBfo9fz4dC7DOV92TDmNZ8Vqa3-7D3wElUG0OH4TCBnqjVzN8p_iViBqx8dzZLwdOl) The world is closer, faster, and braver than ever. If you have a global product, then beyond a certain level of local market penetration, global business expansion is not only prudent but inevitable. After all, expanding business to international markets boosts scalability, preludes foreign investments, a bigger talent pool, and helps with diversification. Although expanding business internationally may seem lucrative, it involves considerable risks, challenges, and compromises. You honestly need to be open to obliging by new policies and different market needs. In other words, you need to think big, radical, and [borderless](https://www.salt.pe/)! And conduct thorough research and spadework to crack the international challenge. In this post, we will discuss the aspects you need to keep in mind before going global with your business and address questions like – _what to consider when expanding a business internationally?, what should be my international business expansion strategy?_ First: The Advantages of Expanding Your Business Internationally ================================================================ 1. **Market growth:** Every enterprise loves to expand its market share and increase its sales and, consequently, its market share. Entering new markets means a completely new playing field irrespective of old market performance. 2. **Increased revenue and customer base**: When the market at home is exhausted or saturated, the overseas market is a prospective choice to generate revenue and profits.  3. **Fight loss in the domestic market:** Should the business be under threat in the domestic market, international revenue shall come to the rescue. Companies like Mitsubishi and Blue Star were able to fight recession in their home countries due to their presence in the international market. The Challenges of International Business Expansion ================================================== Expanding a business internationally isn’t as simple as scoring [international gigs as a freelancer](https://salt.pe/2021/03/12/how-to-score-a-gig-in-foreign-markets-international-freelance-101/). There are enormous challenges in global business expansion. Even experienced enterprises face a lot of challenges and failures. Here are some of the biggest issues you are likely to face. Legal and Regulatory issues --------------------------- [Compliance risk](https://www.eqs.com/en-us/compliance-knowledge/blog/what-is-compliance-risk-analysis/) is one of the biggest inevitable challenges. The legal and regulatory framework is different from one country to another. A lot of paperwork, codes of conduct, and standards unknown will need to be grappled with. The intimidating part is that your reputation is under threat in the market where you desire to make a statement.  Cross-cultural communication ---------------------------- When you want your first international business to garner as much success as you achieved in your local market, you need to understand the nuances of culture and language in the place. If you don’t, the blunders can be embarrassing.  Take the Pepsi campaign in China. When Pepsi expanded to China, it launched with the slogan: “Pepsi brings you back to life”. But their Chinese version of their phrase translated to, _“Pepsi brings your ancestors back from the grave”._ It didn’t work out well, as you can imagine.  Similarly, Ford India unintentionally released a series of sexually offensive caricatures as a part of their ad campaign in 2013. To creatively communicate the new bigger boot space feature, Ford’s ad agency made caricatures of glamorously dressed women gagged up in the boot. This came at a time when the country was raging over the 2012 Delhi rape case. Obviously, in the end, Ford took the flak, apologised and sued the ad agency.  Acknowledging the culture of a region is essential for effective communication. The primary challenge would be translating your business to meet the cultural expectations of international consumers.  Need for localisation  ---------------------- For decades, top companies have relied on standardisation. But as the lifestyles changed and the customer base diversified, there has been a propensity to include and embrace the local culture. Unless customers find your product relevant and relatable, you are never likely to grow in the market. You also need to understand the habits and consumer patterns of your foreign base to stay competitive. Otherwise, they would bid goodbye at once.  Localisation is vital. But [it isn’t easy](https://www.lionbridge.com/blog/translation-localization/5-localization-challenges-to-expect-when-entering-a-new-market/). It is expensive as well. Successful localisation strategy is about the right balance between stiff standards and customisation. In the hall of shame for lack of localisation is Starbucks. The renowned coffeehouse chain has just about 40 stores in the Australian Continent, where people have a coffee craze. The reason is, it failed to understand the taste of Australians. Starbucks had made the coffee a little too sweet for the Australians and refused to change. Consequently, within the first seven years, it lost about $109 million in sales.  Tips for Expanding Your Business Internationally ================================================ Internal and Market Analysis ---------------------------- When you are going global, you will never be short of surprises. But, those surprises shouldn’t cause havoc in your business. Conduct thorough research and pre-work before the launch. That’s why we insist on internal and market analysis.  The motive of internal analysis is to show a reflection of your business. You understand your SWOT, demographic intelligence, whether your team is: proactive, reactive, or defensive, and your ability to thrive in the international market. On the other hand, it’s essential to conduct market analysis to understand the key factors that influence the market: GDP, strategy and resources available, sale predictions, available options, adoption and innovation rates, ease of banking, infrastructure, and other services per capita, economic independence, and other industry-specific information. The process of [managing small business finance](https://salt.pe/2020/08/20/how-to-manage-your-small-business-finances-better/) heavily relies on this information. Adopting a global business strategy ----------------------------------- Your host nation is most likely to be much different from your home. This calls for a rethink of business strategies.   At first, you have to choose your (primary) [global business strategy](https://salt.pe/2021/02/08/importing-exporting-ideas-and-how-to-build-a-global-business/), which is majorly based on two factors: global integrity and local responsiveness. Global integrity is a measure of the extent of standardisation, i.e. ability to replicate the same products and methods. In contrast, local responsiveness indicates the extent of customisation to meet the expectations of the host nations. Based on this, there are four global business strategies which are given below. Next, choose your [mode of market entry](https://www.workspace.co.uk/content-hub/growth-and-strategy/how-to-enter-a-foreign-market). There are many ways to enter a foreign market. Based on your budgets, resources, product adaptability, tariffs, expenses, approach, options, etc., you have to select your mode of entry. Some of the routes are: exporting, licensing, piggybacking, partnering, JV, alliances, mergers, subsidiaries, and greenfield investments. Strategies are incomplete without finance. Functionally overseas operations may be similar to domestic operations. However, finances are complex. There fives main activities / issues which need to be incorporated in your financial strategies and decisions:  * **Capital budget:** budget for sourcing, production, and local expertise access * **Capital structure:** proportions of debt and equity * **Long-term finance:** trade, offset foreign receivables, currency fluctuations * **Cash management:** Optimisation of money across borders / [cross border payment solutions](https://salt.pe/2020/12/07/why-cross-border-payments-are-still-a-struggle/) * **Working capital management:** Focus on policies, pricing, funds positioning, bringing back the money earned, and exploring [business banking solutions](https://salt.pe/2020/11/16/is-it-possible-to-put-business-banking-on-autopilot/). Find the Right Partners & Talent -------------------------------- Business is a team game. Going global means long distance coordination and local collaboration. But the advice here in this context isn’t different from evergreen advice about hiring and partnering with the right people. Seek local talent that suits your core and can communicate effectively. Hire the right people who can implement your ideas quickly and with utmost care. You will also need the right partners, franchisees, services, contacts, and distributors who will push your products into the local market. Do not go behind big names. Find partners who can align themselves with your values, needs and commit themselves to do the best for you.  Look out for robust partners who can travel the globe with you. For example, [Salt](https://www.salt.pe/) offers a one-stop solution for all your international banking needs. Such reliable partners will ease the process of expanding a business into different countries. Have the Right Infrastructure ----------------------------- Infrastructure is critical for the smooth business functioning. Ensure that you do the best to satisfy employees and customers. Also, be bound to legal compliances. Besides real buildings, focus on your IT infrastructure. You’ll have to rely on services and resources that give maximum protection to your data whilst being mindful of local laws on data storage and privacy. Infrastructure is a domain that may require a significant portion of the budget. Foreign infrastructure can be expensive and a far-flung thing to perceive. But, this doesn’t mean that you can rest on very cheap commodities or entities. Your entire business infrastructure should be well-integrated and have the ability to scale. Efficient Logistics Management ------------------------------ Best practices in logistics are vital to staying relevant in the host market. Your business success is leveraged on the effectiveness of your logistics. Fortunately, you can find plenty of case studies and resources on the logistics of top performers. By deep-diving their logistics and supply chain systems, you’ll get ideas to manage expenses (consider a [virtual card for your business](https://salt.pe/2020/12/21/how-are-virtual-cards-transforming-the-business-world/)), complexities, and uncertainties.  ### Best Logistics Practices to follow * Set High standards of visibility, trade compliance, and transportation contract management. * Increase automation * Choose the best partners * Improve in-transit visibility and use of a network to optimise inventories Global business expansion in this era is hardly a matter of choice. With intensely competitive markets, running a borderless business is now an obvious decision. Just like the incoming era of borderless banking, which we at [Salt](https://www.salt.pe/) are happy to be pioneering! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Score a Gig in Foreign Markets: International Freelance 101 Author: Ankit Parasher Published: 2021-03-12 Tags: freelance, freelance india, freelancing, freelancing india, Internattional freelance URL: https://salt.pe/blog/null One of the biggest and most gruesome challenges faced by freelancers is finding and acquiring good and new clients. As the global job market becomes more virtual thanks to technological advancements and blurring of international restrictions due to the digitization of work processes and functions, freelancers are now finding themselves more capable of approaching and working for foreign markets.  Here are a few tips to set yourself up for international freelancing success and score relevant and well-paying gigs! 1. Presentation: highlight your USPs ![](https://lh5.googleusercontent.com/bobq20NdThMuPP7I0k0TUKqGB5yNb3x2pDUVPcUGTUyA9NiaLWP7_qQCv-0qGSup8bHAzfRJzhkdAUp-XBD-D_mxjjD4Fo3KRwuqQ1PCQnOjoiMGBcf6-joJSzQ16SPfEBGCCPh3) Your first impression is likely to be your last impression and studies have shown that most people form one within 1/20th of a second. This is especially true in the digital space where you do not always have the opportunity to leverage your interpersonal skills to your advantage. Hence, optimizing your presentation on hiring and freelancing platforms for the international market becomes crucial.  Highlighting your unique selling points that can act as differentiators and pique the interest of potential clients is one of the most effective ways to get their attention and get the conversation rolling. It is important to remember that at any given time, there is an army of freelancers competing with you, and this is even more extensive when you are looking for opportunities in the foreign markets.  Getting noticed through articulate and crisp presentations of your work and portfolio is key to ensure that you put your best self forward and effectively differentiate yourself from a seemingly endless sea of potential candidates. 2. Pay attention to details and keep it simple ![](https://lh6.googleusercontent.com/sh7fQlslPdWNJ98-adDwehFtEKZjA9uMuqfja8sUHsnkXugikpbIw1t2qxZ2CI8EmkOTtOtk7XHri2olmj-SgtFYHgpvxJM_VltRUFg-kgJ0lOyAoTIQNlwuzUFyWnhGd7avPODh) Being meticulous and detail-oriented is essential to ensure that your profile or application is free of basic grammatical errors and spellings, which is crucial especially if you are trying to score a gig in foreign markets.  Looking reliable and presentable is imperative and your tonality should always represent the type of clientele you are targeting and trying to score. Hence, being articulate while also keeping it simple is one of the best ways to find new international clients in the digital space.  3. Customize your applications ![](https://lh5.googleusercontent.com/bOffJOYpdjroWjcE5K7fmJWf1_mVgCqWiJF96au6cj9RCdpZKgaZSSL3iCHvyaKT2S-eAiX6Pv59ez-UufajWswubLslQ66Za6xqbu-C5FCXWRORxPwnwNQuxL0of4z8vneIN167) Generalization can backfire when it comes to scoring international freelance gigs, simply because it can make your application or profile look boring, dull, and unappealing. It is likely that your desired clientele already has a massive pile of homogenous and similar local and international candidates, and hence, it is always better to research the needs of the client or organization and customize your application to get their attention.  Your personal statement should be as crisp and intriguing as an elevator pitch since it is one of the first things an employer will read and will encourage them to read on and consider you for a particular project.  4. Demonstrate leadership experience  ![](https://lh3.googleusercontent.com/s8gWEQSZOEt35_iNfb-gw90ugayAAIQ6F8711Euj5nJT-n7HOyVuVwSn4E3Z17gw6W7cOpuISCMfWK-KzoKwfVY7yRCXLfC8TFKp5p78PvXV0ZaHQqopI12kM39KqcCMxNOohIBi) Demonstrating leadership experience and skills is one of the most effective and unique ways through which you can land your desired international clientele. This is necessary especially for the interview rounds where you have to express your behavioural and project leadership, along with the demonstration of excellent decision-making skills and communication skills through various examples.  How can you achieve this? Be prepared in advance, and let clients ask questions. Even though freelancing may feel like you are working in isolation, international markets have ways to ensure that even freelancers collaborate to work in teams and deliver desired results.  5. Cultivate necessary trust ![](https://lh3.googleusercontent.com/56U46fkb58ZK5nnWBTJjct37xyEbm-IgTuA5TBXx13g-2PkdZkSktP7pCkQHP_xQeivSa9VTBGGRDzJJlaOejvPHkSaAbOWTJ4xyw_ab6ff6A1e_PYRvaMaquCn7MqwrPIb_ExBC) Trust in the virtual world, especially when it comes to hiring and project management for the international market, is necessary to cultivate. Freelancing is largely based on trust, so instilling trust in potential employers is crucial. It is critical to look, act and sound professional at all times, and meeting deadlines and requirements accurately are one of the many ways through which you can earn credibility in the eyes of potential employers. This trust can go a long way, as recommendations from your first international client can act as a stepping stone to build a larger global clientele as a freelancer. 6. Opting for smart fintech solutions for payments Finally, one of the biggest challenges faced by freelancers while working for international clients is figuring out the payment system, mostly due to the currency and exchange rate barriers. Opt for a seamless payment system, such as the international payments solution by [Salt](https://www.salt.pe) that ensure that freelancers in the country can receive USD payments at viable and low conversion rates. It’s one of the smartest decisions one can make to ensure that only a small percentage of the payment is lost via conversion charges.  As virtual spaces open up for international freelance opportunities and projects, thanks to remote working and the growth of freelancing across various industries, it is important to adopt the latest fintech innovations provided by organizations such as Salt to ensure that you optimize your work processes and related functions in a prompt and cost-efficient manner. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why do we call Salt "SALT"? Author: Udita Pal Published: 2021-03-09 Tags: SALT, Banking, neobank, STORY URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryg-01-1024x1024-1643961925972-compressed.jpeg) In a world where people build their original brands around offbeat words like ‘Zomato’ or ‘Swiggy’, people often ask why we went ahead with such a common name – SALT. In 2019, Ankit and I were returning to India from Singapore when a long flight with few options for recreation prompted us to start discussing our soon-to-be company’s name. We wanted the name to be something homely, which defines the mission of our fintech endeavor. An easy name with a history that was common throughout different cultures and across time. And that’s when ‘Salt’ first popped into our heads! We wanted money to reach every single household just like you’d find salt in any house with a kitchen. As fascinating as this almost one-and-a-half-year-old story is, the amazing historical significance of salt is almost as old as the first instances of humans creating civilized, organized societies themselves. Before Salt takes you to the bank from 2050, hop on into our time machine. Let’s take a trip back in time! The word “_salary_” was derived from the Latin word for salt, ‘_sal_.’ Salt was highly prized, and its production was legally regulated in ancient times. It was historically used for trade between nations, as currency, and so much more. Entire economies have been built, and wars have been fought around this commodity. In fact, salt was so valuable it was called ‘white gold’ by locals around trade routes that were used to transport it.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryonlygy-09-1-1024x1024-1643961673077-compressed.jpeg) Trade routes that had heavy traffic of salt going through them were even termed ‘salt routes’! In 1000 BCE, salt was used as a preservative for the mummification of the great Pharaohs of Egypt. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryg-08-1024x1024-1643961724960-compressed.jpeg) Skip a few centuries ahead to 60AD, and we’ll see that salt was occasionally used to pay salaries for the Roman Army soldiers. It was considered a great deal of honor to be paid as such! ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryg-06-1024x1024-1643961799787-compressed.jpeg) And for _Supernatural_ fans out there, before Sam and Dean started it, since the 15th century, salt has been actively used to keep the evil spirit away, finding extensive use in a variety of religious rituals across cultures and oceans. Even in Leonardo Da Vinci’s famous painting, ‘_The Last Supper_‘, Judas has just spilled a bowl of salt, which is known as a portent of misfortune and bad health.  In the 21st century, you’ll hear old cautionary tales about throwing a bit of salt over your left shoulder into the devil’s eye if you happen to spill some, lest the devil is allowed into your home. The reason salt was so valuable during ancient times is actually pretty elegant. Without modern refrigeration, the only way to preserve rations for the winter, especially meat, was to encase them in salt. This meant for a nation without any natural means of producing salt, such as a landlocked area, no trade routes for salt meant a possible famine for the people come winter. This also meant nations along coastlines rapidly grew and engulfed smaller surrounding nations, establishing militant and diplomatic authority in the region. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryg-03-1-1024x1024-1643961845604-compressed.jpeg) We’ve almost reached our century, with just a quick pit stop in the 19th century. While perhaps not used as currency anymore, salt was being used everywhere. From tanning leather and dyeing clothes to preserving troop rations during the American Civil War, salt was still dictating the rise and fall of powerhouse economies around the world.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/salt-thestoryonlygy-02-1024x1024-1643961889289-compressed.jpeg) Even India has seen just how precious this commodity is first hand, with Gandhi’s Dandi March, also called the Salt Satyagraha, protesting against the monopoly the British had imposed on salt, being one of the first major push backs against the colonizers. And now in the 21st century, we at Salt, are so excited to carry forward the groundbreaking legacy of our namesake, and will change the way we bank, disrupting one space at a time. ![](https://lh3.googleusercontent.com/KKirQPyI3ivZU-_TeWGcVB1ZCkSYv-fG57Tmux_aGn9XAB5HZLCWHnfdRiU-6ZbmiaIfLZ_lw8uZfagfV5M_64_ofV0hXhV_OxMjsbkH_v9rDDmEe0vYV7r482J5R7eo8GDnOxG5) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Introduction To Alternate Investing Author: Ankit Parasher Published: 2021-03-03 Tags: alternative investment, luxury goods, music royalties, vacation properties, wine URL: https://salt.pe/blog/null Investing isn’t just stocks, bonds and mutual funds. If the same mundane list of investments bores you, you’re not alone. It can almost seem as if investing hasn’t evolved in sync with other industries. But that’s not entirely true. In fact, the reality is actually quite the opposite. Today, there are alternative investments that will diversify your portfolio and return profits. Alternative investments are all about going beyond conventions. They can be weird, crazy, and fun as well. In this post, we’ll explore them in detail. Defining Alternate Investment ============================= An alternate investment is an act of putting financial capital into little-known assets with an expectation of capital appreciation and returns. Little-known assets are ones that do not belong to regular investment categories like cash, funds, and stocks. Popularly, it’s the moneyed class that are believed to do alternate investing. It is true to an extent because of high capital requirements, the unperceivable value of assets, and low liquidity. However, with due planning, your alternate investments can deliver significant returns. Types of Alternative Investments ================================ Many alternative investments offer high rewards. Some of them are: 1\. Luxury Goods ---------------- Luxury goods can function as one of the most recognisable and accessible alternate assets to invest in the coming years. They even have the potential to compete with real estate and stock markets. Luxury goods represent brands, legends, supreme craftsmanship, rarity, exclusivity, timeless designs, attractiveness, pride and prestige, and whatnot. Globally, here are considerable buyers who collect high-end goods like watches, apparel, cosmetics, and leather. Rolex watches from the 1980s are sold at over $30000. And if you haven’t heard of that  before, you’ve certainly heard of another product that’s gone through a similar life cycle. There are a lot of reasons you should invest in luxury products. The perceived value of most luxury goods will appreciate or at least remain stable over time. Moreover, luxury goods are not likely to deteriorate amidst recessions or crises. It is because the buyers are from the elite class who have a high tolerance. Now, this is all the more reason why emerging countries should also see luxury goods as a potential asset class.  For instance, the value of INR depreciated against US dollars by almost 50 percent over the last ten years. But the luxury goods could have had the same value, if not more in terms of rupees. The myth and excessive prejudice against luxury goods is worth reconsideration, especially amongst the middle-class. 2\. Wine  --------- The saying “ageing like a fine wine”, has more to do with just taste and quality. Yes, wine is indeed a great alternative investment that would yield profits and be a less volatile asset in your portfolio. Would you believe that fine wine has outpaced global equity markets? It’s true. Moreover, in the [last fifteen years, wine yielded over 13% annualised returns](https://www.vinovest.co/blog/investing-in-wine). Investment-grade wines do require a lot of research, proper storage in wine cellars, reputation, and pedigree of winemakers. Wines from first-grade wine growing regions like Ronde Valley, Burgundy, Tuscany acclaim more value over time. Wine as an alternative investment has become easier with wine investment companies. They offer facilities, professional storage cellars, and management for a nominal annual fee. 3\. Vacation properties ----------------------- Vacation properties are another less explored asset class. A surprising number of people interested in real estate end up not consider vacation properties as investments. This, hopefully, will change once we realise their advantages: * Vacation houses are long-term, consistent, and come with a good deal of financial benefits too.  * You can also optimise on tax breaks.  * Besides, owning a vacation house means you have a perfect place to get away from the chaos of your office or monotonic environments. However, owning a vacation property is not all peaches and cream. You need to shell out for its ambience and maintenance, pay for staff, invest in decor & garden, and dutifully promote it. On top of that, it also involves a slew of regulatory procedures from the government. 4.Music Royalties ----------------- Intellectual property has become a serious business. Musicians reap the benefits of royalties for their songs even if they had composed them decades ago. Not only musicians, but even investors can also enjoy the benefits of royalties by buying the rights for songs. There are many places where musicians showcase their work and buyers can bid for the music.  Alternate investing in music royalties comes with perks like recurring income, no correlation to the stock market, and perpetual rights. Future of alternate funds ========================= The future of alternate investment as an asset class is bright and breezy. According to Preqin, alternative assets under management will rise to [$17.2 trillion in 2025.](https://www.allaboutalpha.com/blog/2020/11/17/what-is-the-future-of-alternatives/) Alternate funds are too steep and do involve high risks, need a certain level of expertise and sophistication, along with the ability to pay heavy upfront costs and cover maintenance expenses. But, with adequate understanding and sustained efforts, alternate investing can provide higher benefits than conventional investments. They can be attractive as sources for raising deep pockets. At [Salt](https://www.salt.pe), we’re excited to be seeing this a wave of adoption for this new investment strategy! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 8 Most Common Financial Mistakes You May Be Doing (And How To Avoid Them) Author: Ankit Parasher Published: 2021-03-01 Tags: financial, financial planning, finnancial mistake URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/pVrHUr5El3AMLbk30Gu43583D-yh3lq269xOgXtG7noRDD6E-l9UqM5S_WPgsBRAYAB7r5l7HKbVvqKfGqGc-_tfKfu-wG9VKz34MBBjraCGdQPrbnjnUXUhqRaLG4wUgs6ekxw7) Financial Planning is one of the most crucial skills to have once you start working. It’s also one you need to constantly keep using and updating. Sadly enough, no one talks about financial planning in schools or colleges or even at workplaces. It is because of this reason that it becomes such a [big problem for the young professional](https://www.salt.pe/2020/05/31/8-personal-financial-lessons-to-master-before-30/) who then runs from pillar to post to get some sound financial advice.  Even though the internet is filled with financial advice from all sorts of “financial gurus”, most people fail to recognize that financial advice can’t be followed blindly by everyone and hence end up committing some common financial mistakes. Make sure to leave behind all your [toxic financial habits in 2020](https://www.salt.pe/2020/12/16/toxic-financial-habits-to-leave-behind-in-2020/) and start 2021 on a more positive note.  Here’s a list of common financial mistakes committed by several people and also how to avoid making such mistakes:  1.  Working Without a Budget Having a tentative budget is can be the bedrock of a sound financial plan. Lay down some specific numbers for different kinds of expenses – it’ll help you streamline your finances as the month (or year) progresses. It also stops you from making frivolous expenditures and frankly, inculcates discipline. 2. Indulging in Emotional Spending [Emotional spending](https://www.salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/) can be triggered by several psychological factors but it can wreak havoc on your personal finances. So, make sure to identify your triggers and learn how to curb them. Retail therapy may help you in the short term but is not advisable for further financial growth.  To know about how to curb the several psychological triggers, please refer to one of our earlier blogs [here](https://www.salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/).  3. Living on Debt Even though credit cards and instant loans have made our lives fairly more simple, their excessive use can be detrimental to your financial health. In case you fail with the repayment or delay it, it can have a detrimental impact on your [credit score](https://salt.pe/2020/06/20/5-reasons-why-credit-cards-may-be-obsolete-in-5-years/).  Hence, it can impact your savings plan and hamper your long-term financial goals. So, make sure to avoid shopping or spending borrowed money extensively and plan ahead for any major expenditure.  4. Choosing the Wrong Kind of Credit Even though loans help make possible several dreams – the dream house, car, or that fancy vacation – it is very important to choose the right kind of loan. For instance, know the [difference between a long-term](https://www.salt.pe/2020/07/28/the-price-game-behind-short-term-loans/) and short-term loan and know what fits your bill. A short-term loan may make more sense in case the amount is not too huge as it will save you a lot of money in respect of interest payments. In addition to this, scout your lenders well. There are several banks and NBFCs which offer credit in the form of loans or salary advances.  Make sure to do your due diligence before you take up a loan and do not fall into the trap of [loan sharks](https://www.salt.pe/2021/02/19/the-game-of-loans-dark-truths-of-loan-sharks-no-one-talks-about/).  5. Not Investing Timely No matter how much your salary is or how young you are, it is pivotal that you start making investments. Understandably, there may be several impediments to your investment plans, such as a large [student loan](https://www.salt.pe/2020/12/30/pay-off-student-loan-or-invest-how-about-both/) looming on your head or the dream holiday you have been planning for a very long time. However, make sure to start investing in a planned manner. To know more about how to invest early on in your career, read one of our earlier blogs [here](https://www.salt.pe/2020/06/01/investment-guide-for-freelancers/).  6. Working Without Financial Goals Setting up [realistic goals at the end of every year](https://www.salt.pe/2021/01/12/realistic-financial-new-year-resolutions-one-should-have/) can be a good way to start financial planning. Having an achievable financial goal also keeps a check on your overspending and this way you can also save up for a secure future or build assets early on in your career which will benefit you for the years to come.  7. Putting Yourself At Risk of Online Fraud With the advent of digital transactions, instances of online fraud have also significantly risen. In fact, as much as [$42 billion is lost in economic crimes and frauds](https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html) and hence it is important to safeguard your money and follow [protective digital practices](https://salt.pe/2020/07/14/the-dark-world-of-online-frauds-and-how-to-be-safe/). Make sure to keep all your digital transactions secured on a personal network, not fall prey to phishing, and not share passwords for online banking with anyone.  8. Picking The Wrong Bank Banks are, of course, no longer just the safehouse for your savings. They serve multiple other functions. They streamline digital transactions, help us save more effectively, and facilitate financial planning. Try to identify banks which for on convenient digital transaction options, a competent UI and UX on their apps and website, cashback, and other related incentives et al. You can also find if your bank gives you the overdraft facility or salary advances that can help you with financial planning.  Explore new developments in the banking sector, such as the [Neo-Banking](https://www.salt.pe/2020/06/04/ultimate-guide-to-neo-banking-in-india/) or the [Open Banking system](https://www.salt.pe/2020/07/05/what-is-open-banking-and-why-should-i-care/). One of India’s first comprehensive neo banking services providers is [Salt](https://www.salt.pe/). Join the waitlist and take your first step towards a financially sound future.  Concluding words  ----------------- Financial planning is not simple. And it isn’t meant to be. It can be tricky. Having said that, it is perfectly okay if you stray from your financial goals, let’s say, during a [holiday spending spree](https://www.salt.pe/2020/12/29/financial-detox-recovering-from-the-holiday-spending-spree/) or annual sales. But make sure that you reassess and calibrate your goals and go on a [financial detox](https://www.salt.pe/2020/12/29/financial-detox-recovering-from-the-holiday-spending-spree/) if you need to. It is also important to keep yourselves updated with the [latest financial trends of 2021](https://www.salt.pe/2021/02/15/2022021-financial-trends-we-need-to-talk-about1-financial-trends-we-need-to-talk-about2021-financial-trends-we-need-to-talk-about/) and to learn to [handle your finances in a better manner](https://www.salt.pe/2021/01/22/new-year-old-money-how-to-handle-your-finances-in-2021/) to have a secure financial future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Game of Loans: Dark truths of loan sharks no one talks about Author: Ankit Parasher Published: 2021-02-19 Tags: Loan Sharks URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/0s7FCT_KkczJMzgmS2XvvkIBuQHZwUurF9djvXweLDu322NSWwkZR2aUocyg6fokKBNZZLXfo-OPt-r5OtwMRGNhEQT9rdDS0u63h4---RQ-VzXMW3GWznfpavida-RixM698cBT) Financial stability is something each of us craves and desires. Despite our best efforts, there can be times when a financial emergency may topple our plans, and we might need financial help. With the hassle of borrowing from traditional financial institutions and a lack of awareness about other legitimate lenders, more and more people fall into the trap of loan sharks and an inescapable cycle of borrowing. What is a loan shark? --------------------- If you are looking for quick cash and do not have security, you are bound to turn to a loan shark. A loan shark is an individual or an entity, who offers monetary loans to people. The rate of interest on these loans is typically very high and comes with very strict terms of collection. A loan shark often uses threats and violence to collect their debts. The way loan sharking works --------------------------- A loan shark can be an individual or a group of people offering loans to others at interest rates much higher than standard interest rates. The victims are mostly people with low income or [small businesses in a cash crunch.](https://salt.pe/2020/08/31/traditional-banks-and-small-businesses-what-went-wrong/) Loan sharks may operate through the internet or via personal networks. The funds that they usually offer are from unidentified and undisclosed sources.  However, in contrast with other lending institutions and mechanisms, loan sharks do not need background checks or credit reports of people who seek their financial help. They wilfully offer large sums of money to people in need with the motive of charging high rates of interest. For instance, a loan shark may lend INR 1,00,000 to a person with the condition that INR 2,00,000 be paid to him in 30 days. There have been numerous incidences when such lenders have called for repayment before maturity and often resort to threats and physical harm to force repayments. Signs To Spot A Loan Shark -------------------------- 1. Loan sharks lend money at high-interest rates. 2. Ask and require little to no paperwork. No credit or payment records are required. 3. They use threats and violence to force repayment.  4. Change the interest rate or add additional charges at any time. 5. They may even refuse to settle your debt and cause harassment. 6. Use of threats, intimidation, and violence. How to avoid a loan shark? -------------------------- The vicious cycle of borrowing and lending has been operating for a very long time. You can always take precautionary methods to ensure that you don’t fall into the jaws of a loan shark, even as a last resort. There are always better options out there.  ### Precautions 1. [Start building an emergency fund](https://salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/) so that you are not in urgent need of a loan. 2. [Manage your business finances better](https://salt.pe/2020/08/20/how-to-manage-your-small-business-finances-better/) 3. Never accept cash loans, no matter how nice and friendly the lender might look. 4. Never share your financial details with strangers.  5. Be on the lookout for possible signs of a loan shark. 6. Reporting loan sharks and loan sharking is very important to protect yourself and society from them. ### Alternatives 1. In case of loans, reach out to banks and registered institutions for financial aid. These are recognized institutes and will never indulge in illegal activities. 2. [Neobanks](https://salt.pe/2020/06/04/ultimate-guide-to-neo-banking-in-india/) and [FinTech](https://salt.pe/2020/08/06/fintech-101-a-beginners-guide-to-common-fintech-jargon/) are often healthy alternatives to traditional banks, as they offer instant, short-term loans at low-interest rates. 3. There are many credit unions to help people in financial crises. They will not only offer a better rate of interest but give great financial advice too. 4. Use [credit cards](https://salt.pe/2021/01/27/what-are-the-different-types-of-bank-cards/) and overdrafts in case of emergency. 5. Charities and government aid are also available in cases of financial assistance. Being part of an economy and business opens you to various risks and circumstances. With uncertainty in markets and the economy, cash crunches may be inevitable. With awareness and a touch of common sense, these situations can be handled smoothly. Loan sharks have been part of the financial system for way too long, and with the rapid growth in technology, it is time to put it to an end.  Here, at [Salt](http://salt.pe), we’ve always put consumer awareness and safety at the forefront. Our [blog](http://salt.pe/blogs) will be regularly updated with posts on personal finance, banking, and more to raise awareness of the different alternatives available for you, as an end consumer. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Guide to Corporate Taxes That Businesses Pay in India Author: Ankit Parasher Published: 2021-02-16 Tags: Corporate Taxes URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/CAD04uxV4u-agB7kC0hjih3xBi-oOx6d2xFBV2dfWn0Qd6Bz9Cjex8VppOxHXAS4kq23O3ji2zLm5QF_EUbspCDA__0xagB33rfg3M4hIFuvGSpZnWvAOeeeBT1aV4rbrihTJpfe) Businesses in India are primarily subject to two types of taxes categorized based on who bears the ultimate tax liability – direct taxes and indirect taxes. Indirect taxes are a type of tax that occurs when the ultimate tax liability falls on the final consumer. Businesses act as intermediaries to help pay their taxes, like the GST. However, the tax burden and payment falls on the business directly in the case of direct taxes like Income tax. Body corporates, in particular, are subject to a special type of Income-tax, called the Corporate Income Tax (CIT) in India.  CIT is very different from the income tax individuals pay in India, though it is also covered under the same legislation – The Income Tax Act, 1961. The tax structure, and rates, for instance, are different for individuals, partnership firms, and body corporates. While Individuals pay taxes according to the slab rates, body corporates and partnerships pay taxes at a flat rate, as prescribed by the annual finance act. These rates can be found in the First schedule of the annual finance act introduced on the union budget session each year. But before we go in-depth about the tax rate, it is important to see what the Income Tax Act, 1961 classifies your organization as.  Body Corporates --------------- According to the Income Tax Act, 1961, only companies (Incorporated in India, or otherwise) and LLCs, along with those organizations subject to corporate taxes under a specific order from CBDT (Central Board of Direct Taxes). These corporates are further divided into categories based on the rates of corporate taxes they are bound to pay. These categories are:  1. Companies u/s 115BA The domestic companies with a turnover of up to INR 400 crore in the FY 17-18 fall under this category. For the current year, these companies are required to pay corporate taxes at 25%, surcharge (discussed later), and Health, Secondary, and Higher Education Cess as the case may be.  2. Companies u/s 115BAA All domestic companies have the option to pay corporate taxes at a rate of 22% on their total income, provided they don’t avail any exemptions or provided under different sections of the Income Tax Act, 1961. A detailed list of these conditions can be found [here](https://taxguru.in/income-tax/section-115baa-tax-rate-domestic-companies.html). Companies opting for this option will be mandated to pay a surcharge of 10%, apart from the Health, Secondary and Higher Secondary Education Cess (HS&HSEC) at the rate of 4%, making the effective rate 25.168% 3. Companies u/s 115BAB A Manufacturing company in operation after 1st October 2019, and has or will commence operations before 1st October 2023, subject to different [conditions](https://taxguru.in/income-tax/section-115baa-tax-rate-domestic-companies.html), can opt to pay corporate taxes at a rate of 15%, a mandatory surcharge of 10%, and HS&HSEC of 4%. This means the qualified companies can choose to pay corporate taxes at an effective rate of 17.16%  4. Other Domestic Cases In all other cases, domestic companies are subject to payment of corporate taxes at a rate of 30%, under normal surcharge conditions (discussed later).  5. Foreign Corporates Any foreign company carrying out business in India is bound to pay corporate taxes at the rate of 40%, along with the specified surcharge. However, if the income received by the foreign company falls under the category of Royalty, or fee for technical services on an agreement made before 1st April 1976, these taxes would be subject to a tax rate of 50%. Note that these rates are subject to changes annually, and these figures are true for the financial year 2021-22.  Surcharge --------- A surcharge is an additional levy on companies exceeding a specified income limit. These rates are computed on the taxes and not on the total income. When companies earn more than INR 1 crore but not more than INR 10 crore, they are subject to a surcharge of 7% in domestic companies and 2% in the case of foreign companies. For income exceeding INR 10 crore, the rates of surcharge would be 12% in domestic companies and 5% in the case of foreign companies. This is not applicable in companies u/s 115BAA/BAB, as they are mandated to pay a surcharge of 10% regardless of the income earned.  All companies are liable to pay a Health, Secondary, and Higher Secondary Education Cess (HS&SHEC) at a rate of 4% on the corporate taxes and surcharge payable. MAT --- In order to avoid excessive dividend distribution, while paying little corporate taxes by taking advantage of the different provisions, all companies have to pay a minimum tax of 15% on their book profits. The excess of Minimum Alternate Tax (MAT) over the computed tax will be credited to the account of the company, to be used only in subsequent years, when the computed tax exceeds MAT. This does not apply to companies opting for sections 115BAA, or 115BAB Corporate taxes can be extremely overwhelming, especially for new entrepreneurs looking to make a wave with their next big thing. We at [Salt](http://salt.pe),  understand the various problem areas a new business has to tackle and provide you with resources to tackle these challenges in our [blog](http://salt.pe/blogs). Don’t let your dreams be dreams, and be a part of the Salt family. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 2021 Financial Trends We Need To Talk About Author: Ankit Parasher Published: 2021-02-15 Tags: fintech, financial market trends, financial technology, financial trends for 2021 URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/a797MQjSs--ls-lQH29yMgtVT65v8C_v0d41_DwJTvvDf2ZLB87uKeLM1TRSSYu1yjy6yleK-Zq7-9c-vxGwDtV5q0b6yVA84FtUxmsdSip6ciW1Omm2Q4AxKW0fH7BMjrnMiExh) 2020 has been full of unprecedented and unpleasant events, and as we move on to [2021 with our financial resolutions](https://salt.pe/2021/01/12/realistic-financial-new-year-resolutions-one-should-have/) while leaving behind [toxic financial habits](https://salt.pe/2020/12/16/toxic-financial-habits-to-leave-behind-in-2020/), we move towards a world where economies struggle to revive their financial health through lucrative efforts and measures. The financial services industry trends for 2021 have been some of the most anticipated and awaited ever since the beginning of the coronavirus pandemic, and here are some of the key financial trends for 2021 that we need to talk about:  1. Collaboration over competition ![](https://lh3.googleusercontent.com/ru3kBN-VG-3Zd8CypOWFWVg9oMSyJmXfayW5BbZmfmPFfWhfoVOz59F57HRk8454kHdAvWlSqKx7-XL4l_2RkRqusjVJ6631_68C0Oq4Cck8w1WYhNk4y1LeEGl57Z31Gwb6z9Yg) One of the major financial trends for 2021 is the rise of collaboration over competition. The application and development of open banking and its possible uses are set to evolve throughout the financial industry and will subsequently shape a majority of financial market trends. What is open banking? Open banking is a new banking paradigm that employs a liberal API model, allowing firms to access important financial data of customers and utilizing this information to provide unique and relevant solutions.  Moreover, this development in the fintech sector will also pave the way for a more collaborative financial ecosystem where firms will work in sync, not competition, to provide various products and services to customers. Established players in the industry are set to collaborate with emerging fintech startups to scale and distribute their unique products to their customers.  2. Attention towards payroll Fintech ![](https://lh4.googleusercontent.com/wAlxfZijjxuDkTbJD0TUniNXL68F8j8KDJ4Sa70kQSyHogrv38CBEN5MIVecGpv6Rjq31-fKcuTPuyZLl69hBqNXC6W4JuM55v1CdFgiqK9OI-OKIf--oJ9muXcwhzGENJjpxLcH) There are four evident categories when we talk about payroll fintech, and 2021 seems to be the year where they might finally get the attention they deserve. The first category is Salary On-Demand. Financial technology companies in this section are set to partner with corporations, HR software providers, and payroll systems to enable more flexible access to salaries.  The second category is Salary Advance, and fintech here will provide short-term credit to their employees based on their salary to help them avoid exorbitant interest rates charged by other lenders. The third category set to shape the financial market trends in 2021 is Crypto Payroll, which is one of the newest types and will enable firms to make payments through various cryptocurrencies.  Finally, Early Direct Deposit is the fourth category, which is usually provided by bigger challenger banks and enables employees to receive paychecks up to 48 hours in advance from their standard payday.  3. Remote working to become a norm for Finance teams ![](https://lh5.googleusercontent.com/f1kJ_QUqH5EKEW4NbzIPIUyfw66MeUDao84HZZZPYp5asvqT0ogq5lo8pAmaqv2bwJpzKw8Q7ofDlHs0DXzabX65phmoeH6ELMvGsuaG2qz2n-VaMyDJO7Bx6977AbnHN7FTNLQy) We have been pushed into the era of remote working and work-from-home and experts suggest that 2021 might not be very different. Remote working is set to become the norm for a majority of finance teams across the globe in various organizations and according to a [June 2020 PwC survey](https://www.pwc.com/us/en/library/covid-19/pwc-covid-19-cfo-pulse-survey.html), 54% CFOs plan to make working from home or remote working a permanent option.  To facilitate successful and feasible remote working arrangements, two major steps need to be followed.  First, people in leadership and decision-making positions such as CFOs and CEOs have to commit to providing the right and apt technology tools to their employees. Second, they must master collaboration and teamwork among different teams and implement the same cross-functionally too.  This can be implemented through virtual open-door policies and virtual events that involve employees with the help of both HR and IT departments to successfully engage these remotely-operating finance teams.  4. Upskilling to be the call-to-action ![](https://lh6.googleusercontent.com/NTfpVpBK0ajdhOJLD-6OSUY_GM5r0qkZrFOUkbvLANdq7ZzENixyaNreZCNAE43cF1gBjPnJe0ZABnUU5yh5V6DQvDM2ihqZDkBrPG8oNrIzjaX1IGz8WMbDwwiJdrUwVRYLbjUR) [According to a global survey conducted by IMA](https://sfmagazine.com/post-entry/november-2020-the-impact-of-covid-19-on-the-finance-function/?_ga=2.90368794.1009445477.1607951630-1306149347.1596115068) for finance and accounting professionals, 12% of the respondents felt that their skills would not be relevant in the post-Covid era, and another 10% were unsure. This survey posed questions around the pandemic’s impact on staffing, revenue management, upskilling, and reskilling.  The key findings indicate that upskilling is one of the most important and relevant financial trends of 2021, and companies must realize the importance of continuous learning and introduce upskilling programs in especially for fields such as blockchain and data analytics, to equip individuals in the finance sector with adequate skills that they will need to compete in a post-Covid world.  5. Neo banking The rise of neo banking is one of the most awaited financial trends for 2021, on the verge of a boom according to several experts. Neo banks are emerging as a suitable and viable alternative to traditional banking models, and the fintech products and services that they offer are essentially redefining the very core of banking. There is a visible consolidation happening across various service offerings, and fintech startups are providing services that integrate the convenience of technology and AI to provide a better user experience to their customers.  These are some of the financial market trends to look out for in 2021, and as this is the year that will witness the recovery of the global economy in a post-Covid scenario, financial technology will play a pivotal role in redefining norms, and helping us [handle our money](https://salt.pe/2021/01/22/new-year-old-money-how-to-handle-your-finances-in-2021/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What It Is Like Doing International Businesses In India Author: Ankit Parasher Published: 2021-02-11 Tags: doing business in india, international businesses URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/b9373TRwKv5gASGX9PFlmSAuBGKqiEVs8y8DmxRZzINJd0AWDGeJTSdI0Z1PXp1BBJ364xEWbZ0X8svpadkMHz9IW_Y9kiiWmdxYuCG-rEDKMiYeZOoVctZ-_m3Ue9WqLS4MY3sT) With a population of about 1.366 billion, India has become one of the most rapidly rising economic powerhouses in the world. With several economic reforms such as the GST, expected to deliver reliable growth long term, and [India already holding 6.7% of the world’s gross domestic product, ranking third globally](https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1633594#:~:text=In%202017%2C%20India%20retained%20and,States%20\(16.3%25\)%2C%20respectively.), the country is well-positioned for a rewarding time. Of course, this has also naturally made the country a hub for both local and international businesses. Industries like outsourcing, telecommunications, construction, education, and retail are flourishing, but there are opportunities in every industry. For India, and businesses making use of the country’s resources, the future looks bright. Let’s now look at why India is an eyecatcher for international businesses and some challenges they face.  Why India is at the forefront ============================= ### Large youth population with low labor rates One of the most important factors that organizations consider when setting up a business in India is the abundance of the population aged under 25, combined with the relatively low labor rates, especially when compared to other Asian markets like Singapore. Considering that even the least progressive aspect of the Indian labor force – [participation of women](https://www.statista.com/statistics/654426/employment-type-by-gender-india/), is getting better, India can be one of the best countries to recruit cost-efficient, skilled, or unskilled labor. Even during the pandemic, [there was a labor participation increase](https://www.statista.com/statistics/1125718/coronavirus-impact-on-labor-participation-rate/) which has become a major attraction for international businesses.  ### Ease of Business and Governmental Policies In recent years, the national government has brought in major Foreign Direct Investments (FDIs). There has also been a major push towards manufacturing locally within India. With the government looking for ways to incentivize further economic growth, expect it to only get easier for foreign entities to commence and continue their businesses in India. India has jumped over 30 spots within the last decade to number 63, in the Ease of Doing business ranking, according to the [World Bank’s Doing Business report – 2020.](https://www.doingbusiness.org/en/reports/global-reports/doing-business-2020) ### Excellent eCommerce options India, over the course of the last few years, has witnessed a major smartphone revolution and seen even the poorest getting their hands on a working internet connection. Coupled with sufficient infrastructure, eCommerce has ruled the nation for quite some time now and can prove to be an excellent testing ground, before actually setting up shop in India.  It’s why it was easier for international businesses to push their products and services into the market, [especially during the time of the COVID-19 pandemic](https://salt.pe/2020/08/17/starting-a-new-business-during-pandemic/). Digital payments, UPI (Unified Payment Interface), and the [exciting trend of neobanks](https://salt.pe/2021/01/19/top-5-banking-trends-from-2020/) are becoming extremely common, and can further increase the ease of doing business.  ### Strategic Location India has one of the largest shorelines in the world, and is bang in the middle of major trade routes, acting as a central hub connecting the western and eastern countries. Surrounded by the massive Indian Ocean, the Arabian Sea, and The Bay of Bengal, naval routes for a wide number of Asian countries including Indonesia, Singapore, Myanmar, Thailand among many others; India has become a huge marketplace in between.  India also shares borders with Pakistan, Bangladesh, Nepal Bhutan, and China and can offer alluring international business routes to major countries and markets across the world.  The Challenges ============== Doing business in India does come with its share of challenges though. When doing business in such a large developing country, challenges are to be expected and should be fully analyzed before setting up an international business in the country.  ### Socio-Cultural Differences Though India is one single country, the nation prides its intrinsic diversity. There are over 22 languages spoken in the country and a wide cultural difference as we move from region to region. Each state has a distinct economic and political view, and these differences have to be carefully accounted for in any major business policy. ### Infrastructural Challenges Infrastructure has to be one of the biggest challenges posed by doing business in India. Although it contains one of the largest railway networks, has airports connecting major cities, and state-of-the-art harbors and ports, they can still seem inadequate for a country of its size. Indian roadways is another area in which the country can certainly do better. While there are routes connecting every major city, due to the expansive population, traffic and associated delays are definitely to be expected when doing business in India. Regardless of the challenges posed by this huge nation, the advantages far outweigh them, and doing business in India has definitely been a pleasurable and profitable experience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Importing/Exporting ideas and how to build a global business Author: Ankit Parasher Published: 2021-02-08 Tags: export business, import business, Import/export business URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/Iz97tpsyMIOn4--Cmhm9ccmBmP4OVedj_AI2OJbI0eEAJp0IQdpmTMiaam9TWJ57gAidOII_l_Mu7MB9rtBJFv8k6KLktg3rPL9SYloPUbBpt5NBZ66_cgga-Ccse0dmN3bqMt3F) Historically, setting up import/export businesses has always been lucrative, but did involve a bit of hassle. Now, it’s not as challenging as it used to be, and sticking to some well-trodden, tested paths can fetch you appreciable profits. But how do you know if your business is ready to enter the import/export market? Here’s a closer look at some aspects you need to keep an eye on to ensure you’re near-perfect in. Set up a Website and Blog ------------------------- Without a website or blog, it’s extremely challenging and even practically impossible to run a networked import/export business. Websites aren’t challenging themselves though. They can be sourced out to professionals or set up using platforms that offer click and drop builders, like Wix, Squarespace, or WordPress. All these platforms come with their share of pros and cons, so do some due diligence before choosing a platform suitable for your needs. This is essential to balance your communication flow and build a strong customer base to drive profits for your international business. Make sure to register the business name with a reputable web host. Your domain name matters a lot, as it is one of the first things that your potential customers see when they peruse your webpage. All web-hosting services offer domain name registrations and affordable packages with easy-to-use site building capabilities. The creation of a blog in minutes with stunning designs, reliable hosting, and on-demand tech support can also be done to display your professionalism. Pick a suitable product to import or export ------------------------------------------- Two things to keep in mind before choosing a product to import or export are: * **The Product should add some value to your customers**   * **The product should have a sizeable market** Make sure you meet both the criteria. That’s an ideal business model. Consult lawyers and Chartered Accountants to establish a virtual import/export business to keep it in the best legal and financial position possible.  Find the Right Market --------------------- Cultivating a knack for tracking trends or even spotting potential trends is essential to run a profitable Import/Export business. Research heavily to locate the best potential foreign market for your product or service. Having a good product at hand but without the right market to sell it to, greatly impacts a business. While this may sound obvious, the error a lot of failed import/export businesses make is precisely this. You don’t want to end up selling Kashmere shawls in Rajasthan’s desert region. Establish communication with trade organizations, Chambers of Commerce, embassies, and trade consulates. They have a good sense of who’s doing what in the international marketplace. Remember to ensure that it is legal to establish trade with certain countries, and it does not violate your home country’s policies. Source a Supplier ----------------- Once you have your product idea, the next step is to learn everything there is to know about it. Locate well-reputed manufacturers and have prolonged discussions with them to personally know more about your product. Suggest product improvements to turn a mediocre product into something slightly ahead of its time.  This goes without saying, but ensure high-quality products with reasonable costs when you source a supplier. Talk about the terms of delivery, and how much the products cost under different aspects. Remember, the cost is crucial to a business’s success, but the quality is equally important.  Price the Product ----------------- The business model for an import/export business has two critical elements within the international sales operation – * **Volume (number of units sold).** * **Commission on that volume.** If you’ve followed this guide and performed the right market research, you should have a list of potential price points for different quantities of demand. The goal is to price the existing product in such a way that the price, including commission (markup on the product to customers), does not exceed what your customer is willing to pay. The more you sell, the more you make.  Consider your fixed costs and costs that vary per unit sold. Your main priority should be towards optimizing the contribution per unit (the difference between the price and costs that vary per unit). Every unit you sell will contribute towards covering your fixed cost, and with additional sales, you’ll start seeing profits. Marketing --------- Work on social media and networking platforms (blogs, Facebook, LinkedIn, Instagram, Twitter, etc.) by posting information about your product or service and asking specific questions about your audience’s needs. Word-of-mouth publicity through family and friends to advertise is highly in favor of a business. Apart from working on your social media, and developing an online footprint, utilize services offered by tech giants like advertisement-, marketing-, and retargeting tools. These services ensure that you minimize your marketing costs by ensuring you advertise only to your target consumers based on a variety of factors, including their search history, preferences, and keywords they use. Don’t sleep on digital marketing. It is the key differentiator between a successful business tycoon to bankrupt businessmen. Transport Your Products ----------------------- The next step is to focus on logistics – transporting the product to your target market. Once the terms of the sale are solidified with your customers, hire a global freight forwarder to move your cargo. Their service saves the seller a lot of time, effort, and anxiety for very reasonable fees.  Based on the provided information, all shipping arrangements are taken care of. They handle documentation, determine necessary licenses, permits, quotas, tariffs, and restrictions (country regulations), which can practically be the most complicated aspects of importing/exporting for an inexperienced international trader. Different companies such as DHL, FedEx, among others have different specialties, at different tariffs, so make sure to thoroughly vet your freight provider before entrusting your cargo. Provide Great Global Customer Service ------------------------------------- Your relationship with overseas customers shouldn’t end after a sale is made. Think of after-sales follow-ups on the import/export business as part of the product offering. Thank your customers for doing business with you, and cater to all their needs.  Ask for constant feedback and act on them. Apart from the obvious benefits of future sales and increased popularity via word of mouth, reviews and testimonials offer you concrete social proof, driving more traffic to your website. Coming up with a business idea is extremely easy. The real difficulty lies in executing the plan and materialising your dream business. Follow this guide if you’re new to the import/export business industry and you’re sorted. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Replace your corporate cards with virtual cards now – Here’s why Author: Ankit Parasher Published: 2021-02-03 Tags: corporate carrd, credit card, fintech sector, Virtual cards URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/ivTXXi7mmx_Mh_QGoIAmhhIAevfPlh8jgu7UBvdC_eNrRymBLWX-_qmi-B3OJn1fG5mgISsoFF991IUVfSLozIy5eyF6HEreQFU7vDVwMI7jwivBB83imtDFty1cr1k8JoL9OChj) It’s probably safe to say that the fintech sector is one of the most happening, exciting places to be in right now. Whether you’re an investor, a customer, or even a distant observer, all of us continue to revise our own estimates of its potential by leaps and bounds, as it comes up with newer, more consumer-friendly innovations almost every quarter. One such path-breaking innovation by the fintech sector has been the virtual card, and we’re going to take some time to talk about why enterprises should be giving it all their attention. A virtual card, simply put, is a virtual replacement for good old physical credit and debit cards. It essentially is a mode of payment that uses all the card information mechanisms and transaction systems that physical cards use while eliminating the need to take care of and carry along an actual card. For all intents and purposes, it is like an ordinary online transaction using card details and is just as fast and easy to use. It is for this reason that they are being touted as an adequate replacement to credit cards which are forecast to [become obsolete in the next 5 years](https://salt.pe/2020/06/20/5-reasons-why-credit-cards-may-be-obsolete-in-5-years/).  Why are more and more businesses opting for virtual cards?  ----------------------------------------------------------- It is obvious that virtual cards are a great option for individuals, especially during pandemics where using a physical credit card would increase the risk of transmission.  But on a more macro level, virtual cards do also add more value by replacing corporate cards in additional ways (as discussed in the next section). In fact, the shift of users to virtual cards instead of credit cards has already started. According to a 2019 report by Juniper Research, the use of virtual cards for business expenditures is expected to grow by 90% in the next few years, and usage is slated to pass $1 trillion by the year 2022. Even a report [by Accenture](https://bankingblog.accenture.com/slice-700b-us-commercial-card-spend-up-for-grabs?lang=en_US) stated that as many as 25% of Fortune 100 companies are now using virtual cards.  What are these businesses seeing that others are yet to consider? Factors propelling the shift to virtual cards for businesses  ------------------------------------------------------------- There are several reasons why more and more businesses are inclined towards switching out physical cards with virtual cards. Some of the most pertinent factors supporting the switch to virtual cards can be encapsulated as follows:  1. Easy Process  These cards can be easily issued, instantly paused/hotlisted, or canceled. None of it requires any lengthy and tedious paperwork as most of these things can easily be done online via self-service portals or mobile apps.  2. Dynamic expenditure management powered by automated reporting There’s an excess of customization options – such as limiting the number of transactions, eligible vendors, or the spending limit on the virtual card – available as a tool of effective control over their budget and expenditure. The virtual cards give an option to the employer to maintain spending limits based upon the total amount of spending or the number of transactions. This can help guide budgeting in a better direction and effectively use company resources.  In addition to steering employee expenditure in the right direction (and that too on an individual basis), a virtual simultaneously assists in ensuring more robust expenditure management at an organizational level. Virtual card usage allows for real-time reporting for each and every employee. It’s automation magic at work!  Of course, this can be used as an opportunity to adjust and tweak future expenditure limits individually or for the entire business at efficiency levels never seen before. In short – it is a boon for small businesses or startups where limited resources and effective budgeting is essential for survival and growth. 3. Eliminates the need for expense reports Since all expense transactions can be accessed with just a simple click, considerable amounts of time and resources on paperwork can be saved. As a business, you know that this translates into cost savings. In addition, a virtual card completely eliminates the need for filing requisitions, invoices, and bills. The accounting and finance department, therefore, have a far easier time generating expense reports. What’s not to love? The conventional Corporate Card or Virtual Card: the choice is obvious  ----------------------------------------------------------------------- Due to these utilities and advantages over the conventional corporate card, it is frankly unsurprising to see an increasing number of businesses opting for virtual cards. Its ease, flexibility, and options for customization make it very useful for enterprises, after all. However, there’s room to optimize this decision even further. Pick a brand like Salt to fulfill your virtual card requirements, and you’re ensuring security, integrity, and seamless integration with your organization. [Click here](https://salt.pe/app_card_salt/) and join the waitlist for [Salt](https://salt.pe/app_card_salt/), and gift yourself seamless banking services, including virtual cards of course, with just a click. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What Are The Different Types of Bank Cards Author: Ankit Parasher Published: 2021-01-27 Tags: Bank Cards URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/0II08JEQ8HFbCks87mXyC2pjMcMNvcCOU0v996oCHlzcln7sjj5fyWvVzvoLxJa68z3KOWsQA5mZB8LNaCP0cHYjRBk_7dqe9Fnk3-yScsNYXyvHmMtHtKh4hL9ftCdCCgxCiSqc) Most of us have used debit cards and credit cards in our day to day lives. These cards, along with prepaid cards, are known as bank cards, which was ground zero for the transition to a digital and cashless economy. Since these cards come with security measures such as a mandatory PIN requirement and can be blocked at a moment’s notice, people could carry a significant amount of money without the fear of loss or theft.  However, even after 55 years of the world’s first credit card, there is still some confusion on the differences between the three types of cards. It is quite easy to see why, as they seem to offer similar advantages, and even look extremely similar. If you’ve any lack of clarity between the different types of bank cards, rest assured, you won’t have any after reading this article. What Are The Different Types Of Bank Cards ------------------------------------------ Bank cards are primarily categorized into three categories, namely debit, credit, and prepaid cards. Each of them can be issued by banks or other financial institutions as permitted by the Reserve Bank of India (or your country’s regulatory authority) and are differentiated, on the most part, on where the funds come from.  Let’s have a look at each of the different types of cards, and understand their nuances. ### Debit Cards Debit Card is a type of bank card issued by the bank which enables you to use the money in your bank account. This means you can use it to withdraw/deposit money from/to your account, use it to purchase goods and services from local or even online businesses. Previously, we have explained how these transactions work, on our [essential guide to understanding bank transactions.](https://salt.pe/2020/08/24/essential-guide-to-understanding-how-bank-transactions-work/)  Debit cards mix the convenience of not having to carry money like cheques, while also ensuring the transactions happen instantly. However, the amount of money that you can withdraw, or purchase, is limited by the amount of money existing in your bank account (unless your bank account allows cash credit/overdraft facilities). You don’t have to pay interest on the purchases you make, except for the annual fees that your bank might charge for maintaining your account, and the transactions do not impact your credit scores. ### Credit Cards Credit cards allow you to pay businesses for goods or services rendered instantly, just like a debit card. However, the main difference is the fact that the cash doesn’t come from your bank account, but instead is from a line of credit extended to you by your credit card provider.  Unlike Debit cards, you need not have an account with the card issuer. Instead, you will be required to pay the amount due after each billing cycle. You can either choose to pay the minimum amount due, or the full amount due. However, keep in mind that you’ll have to pay interest as high as 30% on the amount unpaid within the due date. Since the money comes from a line of credit, the transactions you make, and your repayment history, will directly affect your credit scores. While having more transactions on your credit card will not negatively impact your credit scores, defaulting on your payments can significantly affect them.  Using credit cards can be really beneficial if you can pay the amount due at the end of each billing cycle in full, otherwise, it can really put you in a situation of bother. In fact, this is one of the [5 reasons why we think credit cards might be obsolete in 5 years.](https://salt.pe/2020/06/20/5-reasons-why-credit-cards-may-be-obsolete-in-5-years/) #### Corporate Credit Cards Corporate credit cards, or corporate cards, are credit cards issued by banks to employees of big corporate entities. These cards enable better tracking of expenditures between employers and employees but fundamentally works the same as credit cards.  ### Prepaid Cards Prepaid Cards function, just like the name suggests. Customers, instead of maintaining an account like a credit card, pay a certain amount of money and get a card of the same value. Depending on the terms and conditions laid by the issuer, the card can be recharged, enabling it to be used just like a debit card, in the absence of a bank account.  The Salt Way ------------ ![](https://lh5.googleusercontent.com/Htyh3crluWEosZ3sosfgLG0TJbjb_Tb1as4H7hQjEYKc1W5B9lk5QZSTRpNwAaba8tmr08Y7gyqGvlVKpD5JUwHwzIQ6AH07ooaL8aC1Aa_VstWmIuobxG-Rrzf__dX2zKcOSQGJ) While the bank cards started the digital and cashless economy wave, their concept is slowly starting to show signs of age. With digital wallets and [virtual cards](https://salt.pe/2020/12/21/how-are-virtual-cards-transforming-the-business-world/) making a wave, the time for cards may soon be coming to an end.  However, we still understand the role that bank cards play in the present world and do offer real cards, along with virtual cards for our customers to benefit, staying true to the spirit of being a leader in the FinTech space.  What are you waiting for? Join the [Salt waitlist now](https://www.salt.pe)! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## New year, old money. How to handle your finances in 2021? Author: Udita Pal Published: 2021-01-22 Tags: toxic financial habits URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/tZ5yiHaj19rUnN39k7c0-75bL1yvrA-unuY64NDn0Dv5Sk4xjs1MXgUW74QaPg1vuJrzJ4DEXCl9iHckNRP1soTYtXHd_Fts9EOOQOh54WAa41nIcobOB8JY1Z48LbhePa-cqLQx) Toxic Financial Habits to Leave Behind in 2020 Yet another year has come to an end, and it is finally time to confront some of our toxic financial habits. Many of us often do not consider how frequently overspending on accessories, clothes, or other miscellaneous expenses can affect our finances. We often don’t plan our budgets and spend spontaneously.  Let 2020 finally be the year that makes us take a critical look at our financial habits. Here are some toxic financial habits that need to be left behind going into 2021: 1. Not Understanding Opportunity Cost The concept of opportunity cost can prove to be quite useful in decision making. By definition, opportunity cost refers to the profit potential of other alternatives that are lost when you choose one alternative. For example, you could choose to spend a large chunk of money on the latest smartphone today and dry up funds that can be used much more effectively in other applications.  Instead, you can leverage the power of compounding and divert a significantly smaller amount of funds periodically into a SIP or even a recurring deposit and have a much larger corpus at the end of a few months or a year to spend. Therefore, buying that fancy new gadget today also comes at the cost of not using that amount on other alternatives, such as a SIP or deposit scheme.  Always consider how much you are losing out on before deciding how to spend or save your money. Suppose you see your savings account has a significant surplus that is rarely used. In that case, you’re missing out on capitalizing upon higher interest rates of deposit schemes or investment instruments. That is your lost opportunity cost.  Understanding how opportunity costs work can be a beneficial financial habit that will help in the long run. ![](https://lh3.googleusercontent.com/qlgcmjpJMGf8AGvyFzBtOtmdHSZHXXJzLKpvUKp9B6WE4szE79vjXp_7qondyoaNLJFZaoyfcnmN-zmM_LwA6mJ04a3bw_yu7NZQg92zbGivvd3nx8k0iB4CGrpnb_sNRVF3eOvy) 2. Working Without a Plan Not having a budget and reckless spending is another toxic financial habit that you need to leave behind. Having a well-crafted financial plan can help you set financial targets and plan investment portfolios according to your risk profile, allowing you to achieve your financial goals.  A good financial plan also includes having a good safety net and investments with high liquidity for emergencies, tax planning, retirement planning, etc.  A monthly budget may seem unnecessary, but you’d be surprised at just how much of our expenses can be curtailed if a well-planned budget is strictly adhered to. 3. Emotional Spending Emotional spending or impulsive spending can be yet another toxic financial habit that can potentially wreck your long-term plans. Spending all your income on non-essentials like too many parties or trips can prove to be disastrous if it gets you stuck in a debt cycle. Quite often, people end up surprised when they realize how much they have spent during the year.  Setting up a reasonable budget with adequate room for a little extra spending can solve many of these challenges. But the most important aspect of having a budget is to cultivate the self-discipline to follow it. It may be hard now to miss out on things, but your future-self and financial portfolio will thank you in the long run. 4. Not starting savings early Saving and investing is crucial to everyone’s life. Many young people might assume they can always start investing later and a few initial years of lavish spending would not be a problem. But such an approach can result in a lot of missed opportunities and returns that you may regret later. Saving for things like a trip abroad is different from saving for something like retirement. You should focus on budget cuts and high-interest instruments like fixed deposits or certain categories of mutual funds for the former.  But for the latter, you must start as early as possible with long-term investment plans. Saving a small amount and starting early is much more beneficial than saving a significantly larger amount closer to when you plan to retire, due to the power of compound interest. If you start early, your capital has had a much longer period to generate interest which accumulates into your capital over the years. This generates higher returns via interest every cycle, leading to a much larger corpus than what you would get following the latter approach. ![](https://lh3.googleusercontent.com/9ItRryMRap-zopysWqbbA9jOWkYhsAZjg1Te6XUMzxNgp3m3y4Xnr_3SiwAHt-M5JPAXy2RlioEbwyC5hG7TFFdzMhBL5IS6TRGKRduxsdNZ7VLUh5PkssCXgXRXyzSoDzInkgMx) Source: Federal Reserve Bank of St Louis 5. Getting Lured by Seemingly Attractive Offers Sometimes offers that involve loyalty points and premium memberships can end up resulting in a net loss for you. For example, suppose your credit card company is offering you reward points for every $100 you spend. In that case, you may be enticed to spend even more just to earn those reward points, without realizing that it results in unnecessary expenditure that can be diverted to savings.  Another example can be a premium e-commerce store membership that might cause certain customers to spend even more to compensate for the membership fee. While this does not mean that all such offers result in loss, it is definitely worth analyzing your gains and losses when it comes to such situations. Your Financial Habits in 2021 ============================= It is an open secret that discipline is the key to a successful financial plan. Many toxic habits result from a lack of understanding of how everyday decisions can have larger effects on our lives and how small behavioral changes can greatly benefit us.  To make budgeting easier and track your spending, manage expenses, set up recurring bill payments, etc., all in one place, apps like [Salt](https://salt.pe/) are extremely useful in finalizing your financial plans. However, even financial discipline does not need to be taken to the extreme. Not allowing yourself to spend on anything for a bit of fun can also lead to stress. In any lifestyle, figuring out what is best for you and creating the perfect balance between saving and expenditure is essential. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 5 Banking trends from 2020 Author: Ankit Parasher Published: 2021-01-19 Tags: banking trend, banking trend 2020, banking trends, banking trends 2020, bankinng 2020 URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/MD67-7zTNR1LXjKYiJObBaybbjrHRiewDnfnU3tZvFmwH31kai-mA0_kH9kYwaP5devhkyQj9JJ12CeXJuH2lScdSf0EPIx3MKgZKgAzf4Cb8zilxh-aKxOTei9h5vqf-EQJdBP-) [](https://images.pexels.com/photos/3944405/pexels-photo-3944405.jpeg?auto=compress&cs=tinysrgb&dpr=2&h=650&w=940) [COVID-19](https://salt.pe/2020/07/18/how-covid-19-will-change-the-fintech-world/) has brought about such drastic repercussions, that the banking industry had no choice but to enthusiastically infuse digital technologies such as machine learning and artificial intelligence into its workings. The pandemic brought down economies and left the [banking sector, one of the most affected](https://www.statista.com/statistics/1106302/coronavirus-impact-index-by-industry-2020/). Unprecedented economic disruptions, a competitive market, and rising expectations from customers have caused high distress in the industry. This has also brought about a promising future for fintech and neo-banks, as customers are forced to switch to digital banking with lockdowns in place and banks being shut down. This trend is set to continue, even after normalcy is returned. Here are the top 5 banking trends from the year 2020, which could give a glimpse of what 2021 would look like. Digital Customer Onboarding --------------------------- One of the most eminent banking trends in 2020 was digitization. Disruptions caused by the pandemic forced banks to invest in digital customer onboarding to keep businesses still running. Some of the critical onboarding problems were data origination, KYC, credit checks, and fraud detection.  Video-based KYC was introduced where customers had to show their ID proofs through a webcam or a smartphone camera over a video call to complete identity verification. This real-time authentication also helped [minimize any risks of fraud](https://salt.pe/2020/11/27/five-easy-strategies-to-avoid-banking-fraud/). [Some Asian banks like UOB, DBS, Axis Bank, and ICICI Bank were some of the firsts in implementing smooth and efficient customer onboarding](https://www.finextra.com/blogposting/18180/how-asian-banks-are-revolutionizing-the-customer-onboarding).  Open Banking ------------ Another important banking trend in 2020 was open banking. [Open Banking](https://salt.pe/2020/07/05/what-is-open-banking-and-why-should-i-care/) is a secure way through which banks give providers, access to your financial information. You could see a banking trend where banks collaborated with their competitors to monetize data, cross-sell offerings, and gain market share and succeed as banking aggregators.  This helped them increase their revenues without depriving their customers of wide offerings. Customer retention was another added advantage as banks could help their customers by making all necessary products and services available in one place.  Cloud Technology in Banking --------------------------- Cloud technology is a more cost-effective, faster, and more elastic option to go for when it comes to data storage when compared to traditional on-premises storage. Predictably, the adoption of cloud technology was a significant banking trend in the year 2020.  The need to go for a better alternative arose when banks realized they needed to be more innovative in accessing the right data from massive databases they possess. The cloud helps collect, store, and access data efficiently. Cloud also proved to be effective in enterprise-wide synchronization and [smoother customer dealing experiences](https://salt.pe/2020/07/10/analyzing-the-importance-of-customer-experience-in-banking/).  Automation ---------- Banks across the globe are struggling to automate their business processes and they’re slowly starting to incorporate AI into their business management. [RPA (Robotic Process Automation) is one such technology that most banks have deployed successfully](https://www.juniperresearch.com/resources/infographics/banking-automation-roboadvisors-statistics).  There was certainly this banking trend where banks used RPA to improve workforce management, regulatory compliance, and customer interface in digital banking. These robots can seamlessly take over or hand over tasks midway to their human co-workers.  Fintech Collaboration --------------------- [Fintechs](https://salt.pe/2020/08/06/fintech-101-a-beginners-guide-to-common-fintech-jargon/) deal with innovative technologies that help in areas such as digital lending, analytics, and credit risk. Their technologies are built on efficient use of AI, ML, Data Science, Blockchain, and Cloud. A massive number of [banks collaborated with fintech companies](https://salt.pe/2020/10/05/fintech-and-banks-just-a-fling-or-something-more/) to ensure [seamless baking experiences](https://salt.pe/2020/11/09/seamless-banking-how-far-away-are-we-from-it/) in 2020. This proved to speed up their execution in digital transformations and helped meet customer expectations. Large banks have already acquired high stakes in fintech companies. For example, the [Royal Bank of Scotland bought a 25% stake in UK-based Fintech Loot](https://www.finextra.com/newsarticle/33169/new-rbs-digital-bank-invests-in-loot#:~:text=The%20Royal%20Bank%20of%20Scotland's,with%20another%20%C2%A32%20million.), and [HSBC has joined forces with an Australian fintech company called Identitii](https://www.finextra.com/pressarticle/79547/hsbc-signs-new-licence-agreement-for-identitiis-overlay), etc. Various neobanks emerged in 2020, helping put [banking on autopilot](https://salt.pe/2020/11/16/is-it-possible-to-put-business-banking-on-autopilot/) with many people availing loans from the comfort of their homes, without the usual hassles from traditional banks.   Final Word ---------- Yes, 2020 was a disaster of a year. However, the silver lining lies in the banking industry’s resilience and growth, and the adoption of a superior, modern way of banking, with neobanks such as [Salt](https://salt.pe). With Salt, you can get all the features you love from traditional banks at your fingertips, minus the red tape and bureaucracy. Banking has never been this easy before. [Join the waitlist now!](http://salt.pe) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Realistic financial new year resolutions one should have Author: Ankit Parasher Published: 2021-01-12 URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/e-wQtlllb_c3uZR-WuHGvy6PvNDDs1QZr2mv0TaRezekNDpqCca7mCSelCETqJe_Bm-v8FqYeYqirM023NjjJ5xe-2hfQs4ltgm76OZgQn4AzlK2kz9MQCrHk871F6MiKOMUThOk) [](https://cdn.pixabay.com/photo/2020/12/25/16/47/new-year-resolution-5859760_1280.jpg) A new year can be a fresh start and a great opportunity to leave [bad habits](https://salt.pe/2020/12/16/toxic-financial-habits-to-leave-behind-in-2020/) behind and foster some good ones. It can be a great time to set some realistic and achievable financial new year resolutions as well. It’s highly likely that you didn’t follow your 2020 new year resolutions because of the [COVID-19 pandemic](https://salt.pe/2020/04/30/5-financial-lessons-covid-19-has-taught-us/) if you made any at all in the first place.  [Stats](https://discoverhappyhabits.com/new-years-resolution-statistics/#2021-statistics) reveal that only nearly half – 46% of the people who set new year resolutions succeed in keeping them after 6 months. The number drops to 4% if the people have goals but no resolutions. If your resolutions center around saving money – be it increasing your retirement contribution, investing more, or spending less every day, you’re going to want to beat those odds. If you need some help in setting some realistic financial new year resolutions, consider the following.  Start Budgeting --------------- A good and easy start to set a financial new year resolution and actually sticking to it is budgeting. It’s the most important thing you can do to be financially successful. There are a lot of wealthy people struggling financially because they don’t manage their money well. It might be intimidating when you’re doing it for the first time, but you shouldn’t let that stop you.  * Set a realistic budget for the month, track your expenses and income by writing them down, or using a spreadsheet, or an online budgeting tool to analyze your expenditures.  * Aim to focus on a weekly budget instead of a monthly one because looking at your budget often, is essential to [curb excess spending](https://salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/). Pay Off All Debt ---------------- Paying off debt helps you have immense control over your finances. Loans and credit are necessary for many of us to make large and small purchases. So managing your debt should be your next important financial new year resolution you set for yourself. A lot of people lose their lives to the vicious debt cycle and you certainly don’t want to be one of them. * Make paying off your debt, the most important priority, if you come across bulk money.  * Limit credit card use and try to pay off balances in full every month to avoid the interest charges. If you find it difficult or unable to pay off the balance in full every month, you might be spending too much money on a lifestyle you can’t afford. * Pay more than the minimum payment amount whenever you can to pay off the debt faster. * Get a part-time secondary job for some extra bucks. Start saving money ------------------ The difficult process of saving money can be much easier if you work out a budget and make a few cost cutbacks. By establishing a savings habit now, you are opening doors for a smooth post-retirement life.  * Reduce eating out and buying your coffee outside. * Cut down on groceries. * Unsubscribe from an entertainment platform (like Netflix or Prime Video) you rarely use. ### Create an emergency savings fund Having an [emergency fund](https://salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/) for expenses is a great way to protect yourself when you are hit with financial hardships and can help prevent you from going into debt. It provides peace of mind if you lose your job, become too ill to work or have to cover a major medical emergency. Emergency savings can be a lifesaver when you come across expenses you haven’t budgeted for.  ### Save for your retirement If you’re already saving for retirement and could be putting even more money away, do it. Starting early on saving for your future gives you a huge advantage over people who don’t. The younger you start saving and investing, the better chances you have to have a financially secure future because you can let compound interest do the heavy lifting. Start Investing --------------- [Investing](https://salt.pe/2020/06/01/investment-guide-for-freelancers/) enables you to grow your money quickly. Many people invest money successfully on their own, but if you are just starting out, find yourself a financial broker to help you achieve your goals. It’s never too late to become an investor. You may be well into middle age before realizing that life is moving quickly, requiring a plan to deal with old age and retirement, when investing can come in handy. * Invest in mutual funds (you can start with little). * Hire a financial broker if you’re a beginner. * Read books on investing. * Learn about the stock market. Final Word ---------- There’s a lot you can do to improve your financial health. Take it one step at a time to not get overwhelmed by everything. When you’re setting financial new year resolutions, put down clear and concise goals with a plan of action as this helps you stay focused to meet those goals. At Salt, we’ll be happy to help. [Join the waitlist](https://www.salt.pe)! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Pay Off Student Loan Or Invest? How About Both? Author: Ankit Parasher Published: 2020-12-30 Tags: student loan, student loan debt URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/GKbZ3m3NK24wdPh4zc6jMcstcIiwliqKZA3yFo4AmRcx5GHvPyiGOnngLjggqRPgV0qlrKIUFeuiNJq0DNNc4Xm6VmOc4EL4nGwRVdf3ArCFuqDN4l5cPorRrG5jxz3TOOn_zDXe) [](https://pixabay.com/photos/money-dollar-cents-euro-euro-cent-837376/) If you’re a fairly new salaried professional with big [student loan debt](https://www.investopedia.com/student-loan-debt-2019-statistics-and-outlook-4772007) on your shoulders, looking for ideas to manage your finances better, you’re at the right place.  The first time you get your hands on a bulk amount (your salary), things might get a little overwhelming. Some of your colleagues might already have started investing, some might be working on paying off their student loans, some might not do either of these and spend on other important things, etc. But the major outflow of money would either be toward paying off student loan debts or investing.  Which is a wiser choice and why?  Honestly, there’s no straightforward answer to this and it depends on various factors as discussed in length below. Factors to consider =================== Interest Rates -------------- Comparing the interest rate of the investment plan you’re going for and your [student loan interest rate](https://www.investopedia.com/student-loan-interest-rates-5069743) is essentially a determination of better returns. You should invest if the rate is higher than the debt interest rate. This is probably the most important and only factor that commoners consider before choosing to invest or pay off debt. Comparing the principal amounts while deciding is also crucial.  One other important aspect that needs to be taken into account is that your investment returns aren’t guaranteed. Even when you’re investing in a very low-risk plan, you’re not taking zero risks. So, be aware of the risk factor involved. Student loan forgiveness programs --------------------------------- Most people overlook this particular lifesaver when it comes to repaying your student loan debt. There are several [student loan forgiveness programs](https://studentloanhero.com/featured/the-complete-list-of-student-loan-forgiveness-programs/) that you can qualify for (find out how [here](https://www.bankrate.com/loans/student-loans/qualify-for-student-loan-forgiveness-programs/)), to help waive off all or part of your loan.  Be careful while reading the guidelines for the programs. In some cases, the forgiveness amount is considered as taxable income. So, it’s better to hold off on paying your student loan debt to enjoy the benefits of forgiveness programs to their fullest and probably use that money to invest. Refinance Rates --------------- Refinancing your student loan can help you save a lot of money. Here’s how it works – a new private company offers to pay off your existing student loan debt at a much lower interest rate. A loan to pay off student loans in other words. This can help you save a lot of money in the long run, especially when it comes to handling big figures like student loans, and also makes the whole repayment process quicker. Compare the refinance rates of various lenders and choose the best one for you.  Tax deductions -------------- In the US, a 401k plan is a retirement plan that allows eligible employees of a company to save and invest for their retirement on a tax-deferred basis. Only an employer is allowed to provide a 401k for his/her employees. This amount varies from company to company and is capped at a certain percentage of the employee’s salary. Making use of this plan is an easy way to ensure automatic investment at regular intervals. Other financial priorities -------------------------- While deciding between paying off a student loan or investing, one can often overlook or underestimate other [financial priorities](https://salt.pe/2020/12/16/toxic-financial-habits-to-leave-behind-in-2020/). Here are some major probable [expenditures you have to prepare for](https://salt.pe/2020/05/31/8-personal-financial-lessons-to-master-before-30/), before thinking about either the student loan or investing.  * [**Emergency funds**](https://salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/) **–** You never know when you’re going to have a medical emergency or immediate need for funds, so it’s crucial to allot some money every month for emergencies.  * **Other high-interest debt –** When you’re starting to live entirely on your own, you might have other high-interest debt like credit card balances or personal loans. It’s wiser to pay these off first and then go for student loan debt and investing. This also ensures that your overall returns are higher.  * **Retirement Savings –** It’s always wise to start saving up for retirement at an early stage. Some extra money in your savings account is not going to hurt, is it?  * **Life Goals –** You might have other major life goals like buying a house, getting married, having children, etc. Saving for these should take precedence.  How to start investing while paying off a student loan – some tips ================================================================== Paying off a student loan and investing need not be mutually exclusive, they can very well go hand in hand. With proper planning and dedication, you can manage both efficiently. * **Check out investment apps –** There are various apps like [_Acorns_](https://www.acorns.com/) or [_Stash_](https://www.stash.com/) that allow investors to invest with as little as $5 and are great for beginners who need help in managing their investments.  * **Hire brokers –** A stockbroker is a person who buys/sells shares on your behalf. There are many low-cost or even free brokers available online who can manage your investments beautifully. Final Word ========== Deciding between paying off a student loan or investing ultimately comes down to whichever is better for you and it varies from person to person. Keep in mind that while investing, you run the risk of losing your money. If you’re a person who feels mentally agitated if you don’t pay off your debt soon, go ahead and pay it. You shouldn’t lose your peace of mind over money. If you’re knee-deep in investing, just make sure you’re paying your minimum loan amounts every month.  Neobanks like [_Salt_](https://salt.pe/) give you an effortless overview of your expenses, investments, etc while you easily manage them in an app. Better monetary planning can be virtual and is just one tap away. [Join the waitlist](https://salt.pe/) and become one of _Salt_’s early users for an amazing banking experience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Financial Detox: Recovering From the Holiday Spending Spree Author: Udita Pal Published: 2020-12-29 Tags: holiday season, holiday spending, personal finances URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/Mt5nw6seoO6FD8wOI8YSEdNEJ4U9rBfU1FH_qPLfxPJaFSW5Ll2S5dn18ZuXsJLWfYiBFuBSaoSQyodEWDku8U_KohFNUPEDICNHIlclgXdWZA7KOyPrrdvQfX0b0Cr5EoSSEdSa) The holiday spirit can get the best and the worst out of us. While on one hand, the holiday season is for celebrations with our near and dear ones, it might also drive us crazy with the sheer spending involved! With stores and online shopping platforms offering great discounts, coupled with our own urge to splurge, it’s hard to resist unnecessary splurging during the holiday season.  Most impulse buying is driven by emotional spending, which can be fairly harmful to your personal finances. It’s important to understand the psychological triggers and watch out for them to [keep emotional spending in check](https://salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/) and tackle them to maintain healthy personal finances. Another driving force behind the spending spree, is, of course, societal pressure and expectations that emerge during the holiday season. Extravagant holiday parties, gifting, and celebrations have become the norm.  This not only causes stress but can inevitably wreak havoc on our personal finances.  So how can we recover from the holiday spending spree? ------------------------------------------------------ ![](https://lh3.googleusercontent.com/qV_I2u-KrsREUc4BOet0DjkS_fz7keL7J-JpCqrfTauJrFYOEBNIwAzju5q9sf1pTd22MCwT8wMuYJ31GAHlwx3RzyTm0CiWxELVOT2Mtw9dWiFNcwq-i6NfTgMMW8S976K0BJTb) There is a good chance that you might have fallen victim to the above factors and have driven your savings to the ground. While there are plenty of [financial lessons to learn](https://salt.pe/2020/05/31/8-personal-financial-lessons-to-master-before-30/) for all of us, here are a few specific tips to help you bounce back from the spending spree post the holiday season and start working (again) towards building healthier personal finances:  * Build an emergency fund  With your savings severely hit by the holiday season, it is time to plan your future expenditures carefully and think about creating an emergency fund. An emergency fund will act as a buffer for any foreseeable or unforeseeable expenditures. It may also be used in the next holiday season.  A systematic emergency fund will ensure that you do not end up straining your savings after every holiday season. To know more about how to create an emergency fund to maintain your personal finances, [click here](https://salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/). As a corollary to building an emergency fund, start thinking about saving and investing it, no matter what your income or age is. Smart investment choices can go a long way in regaining balance as far as your personal finances are concerned. Here’s a [guide on how to start investing](https://salt.pe/2020/06/01/investment-guide-for-freelancers/).  * Think about saving quick bucks  Concentrating on essential commodities and doing away with wasteful spendings on things like going out or eating out can go a long way in helping the recovery post the holiday spending spree.  There’s always a cheaper alternative to these. You can follow small steps like unsubscribing the shopping newsletters or uninstalling shopping or food delivery apps from your cell phone to curb the temptation to indulge in these non-essential expenditures.  * Alternative income stream  It may also be a good time to pick up a part-time job or a freelance gig to support your income. The extra bucks will help you achieve a balanced personal financial setting, post the holiday season. Today, it’s so much easier because a lot of organizations are offering remote working due to the COVID 19 outbreak.  * Be nifty about your shopping  Since shopping would obviously entail expenditure, go find creative ways to save money while you shop. For instance, try using 3rd party cash back apps or websites, coupon codes, or wait for things to go on a sale on the next festive season. Defer making any large purchases till next holiday season sale and till then save money for it.  You can also try finding cheaper alternatives for things and brands that you use. A lot of homegrown brands have dupes for international brands at a fraction of the latter’s price.  * Consider neobanking  Switch to neo banking from regular banking to save extra money and get a more customized banking service. It is a far more hassle-free and easier to operate model, and you get complete control over your personal finances in a more well-rounded manner. Neobanks are often superior on tech, enabling you to track your personal finances and gain insights on the financial side of you. As you can guess, this can be especially useful during (and post) the holiday spending spree. To know more about the benefits of neo banking, read one of our earlier blogs [here](https://salt.pe/2020/06/04/ultimate-guide-to-neo-banking-in-india/).  Happy Holidays! --------------- The holiday season is an economically taxing time for all of us. It can be even tougher [for millennials](https://medium.com/@salt.pe/crazy-p%CC%B6o%CC%B6o%CC%B6r%CC%B6-misunderstood-millenials-662276bd02a5) who are usually bashed for their personal finance choices. But proper guidance never hurt. These tips should hopefully nudge both that demographic and the others in the right direction as far as personal finance management is concerned, especially post the spending spree during the holiday season.  [Salt](http://salt.pe/) offers everyone a one-stop solution for personal finance management problems at just the click of a button. We can help you manage your money the way you want, from the comfort of your home, and come up with customized solutions and personalized care for all your money problems.  [Join the waitlist today](http://salt.pe/) and get access to new user benefits tailored just for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How Are Virtual Cards Transforming The Business World? Author: Ankit Parasher Published: 2020-12-21 Tags: Virtual cards, Business world, Virtual cards for business URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/1Csxdo3QVqdISljRI3ZXWxW6h10uKDkiYoAhY5VSjlavnBFiv0lekZanG_Hc92_YZs4LemmtU80ZVDbJILW-a669dI7ZkVfTWN3CAqVCsHlIhMlGvfKMqPx2KFoRj6SdGyZ8new2) The banking sector has been experiencing several changes in the recent past, specifically in the context of digitalization and online banking. One of the latest additions on this front is the usage of virtual cards. A [report by Juniper Research](https://www.pymnts.com/news/b2b-payments/2019/juniper-research-virtual-card-usage/) in 2019 stated that the business use of the cards is expected to grow by 90% through the next few years, and usage will pass $1 trillion by the year 2022. The COVID 19 outbreak may further propel this. Why is this happening, though? What are virtual cards?  ------------------------ A virtual card is simply a mode of payment via a card information system without having to go through the hassle of managing and swiping an actual card. For any person, it is like generating a card number online and going forward with using it for any online transaction.  As you can imagine, it is a great alternative to the traditional credit cards, which are projected to [become obsolete in the next 5 years](https://salt.pe/2020/06/20/5-reasons-why-credit-cards-may-be-obsolete-in-5-years/), without compromising on the speed and the ease of doing the transactions. Virtual Cards for Business  --------------------------- While virtual cards are a great service for individuals as well, it is the businesses that can benefit from it in more ways than one. In fact, virtual cards can completely transform how businesses make or receive payments. According to [research by Accenture](https://bankingblog.accenture.com/slice-700b-us-commercial-card-spend-up-for-grabs?lang=en_US), virtual card payments in the US alone were estimated at $169 billion in 2018, out of which 1/3rd came from large businesses, slated to grow to $355 billion by 2022. In fact, even globally, the same report states that as many as 25% of Fortune 100 companies are now using virtual cards.  Here are a few reasons why more and more businesses are opting for virtual cards and how that is changing the transaction game for them:   1. Anti-fraud measures As opposed to standard credit cards or cheques, a virtual card is a more secure and flexible option for payments by a business. Virtual cards come with several customization options, and they cannot be stolen or be lost as ordinary cards can. You can change the number of transactions when the card can do even a single transaction, making sure no employee can misuse it.  Further, even if the merchant site is hacked and information is stolen, they will only get their hands just a bunch of random numbers, which will anyway change with the next transaction.  The chances of fraud via virtual cards are bleak, positioning the tool as a compelling alternative to businesses. 2. Ease in accounting  Virtual cards also pack in extensive transaction data, all available to the businesses with the click of a button. So, there is no longer a major requirement for receipts or bills to be filed with the accounts departments by each employee making any payment, as they can control it all virtually. This is even more useful in the wake of the COVID-19 outbreak, where most employees are working remotely, and all transactions are now online. 3. Use of approval to have more control overspending  Since virtual cards come with extensive customization options, it’s possible for supervisors and managers to set up granular approvals for payments made through the employees’ virtual cards. Businesses can better monitor the expenditure, including the when and how, and also control budgets. This can be especially advantageous for small businesses with limited resources.  4. Making bulk transactions easier for the employees  In many businesses, bulk transactions of different kinds of payments take place on an everyday basis. A good example would be a food delivery service like Uber Eats. Virtual cards prove to be a reliable, quicker, and simpler way to make such payments than any other mode. It can also be beneficial for businesses working with several freelancers or contractors as opposed to regular salaried employees.  5. Employee benefit scheme  Virtual cards can also be handy as an effective and quick way to deliver employee benefits, especially in times where employees may be working remotely. They are a cost-effective solution for the business and offer employees more autonomy as to its usage, as opposed to other forms of coupons, etc., a business might give to them as incentives.  Virtual Cards for Business: The Advantages are Obvious ------------------------------------------------------ It’s fairly obvious why businesses are increasingly opting for virtual cards. Cost-effectiveness, ease of usage, and the dozens of customization options are some of the most compelling USPs. However, just like a conventional credit card does require some research on several aspects – customer service, ease of use, etc. before being picked, it is essential to choose a virtual card from a reliable organization for similar reasons. [Click here](https://salt.pe/app_card_salt/) and join the waitlist for Salt, and promise yourself seamless banking services, including virtual cards of course, with just a click. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Toxic Financial Habits to Leave Behind in 2020 Author: Ankit Parasher Published: 2020-12-16 Tags: toxic financial habits, 2020, financial habits, new year URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/3e05cUhu943bGYAjrrp6jcV9_pQhLy903i8B36QlDRbd_5BHjDlxE6DqxZC2bB19mgtqg6CLLZ63X7gUFHtPmkzIEQVbvXbEp2ye-pTdQhnn_KB4AaYFirdJ7PWghIGQpNPADECY) Yet another year is coming to an end and it is finally time to confront some of our toxic financial habits. Many of us often do not stop to consider how frequently overspending on accessories, clothes, or parties can affect our finances. We often do not plan out anything and simply spend spontaneously but perhaps 2020 can finally be the year that some of us can reconsider our financial habits. Let us have a look at some toxic financial habits that need to be left behind. ### #1 Not Understanding Opportunity Cost The concept of opportunity cost can prove to be quite useful in decision making. An amount of money, for instance, can either be put into savings, an investment portfolio, or even used to make a purchase that would give future returns, such as upskilling training. By definitely, opportunity cost refers to the cost of the next best alternative that is forgone. Therefore, buying that fancy new gadget today also comes at the cost of not using that amount on the next best alternative, such a SIP investment or education.  Consider an example – if you spend using credit cards and are paying a credit card interest of 18% annually, whereas your investment yields a 7% annual return, then you are facing a net loss. Therefore, gaining an understanding of how opportunity costs work can be a beneficial financial habit that will help in the long run. ![](https://lh6.googleusercontent.com/cTQ6SHUdsuNd44QU5UyOuOxB2O3T3zzTMpie9aXuazsx3yQO_rYRKPnIaOI8zQU2XbTDaZF40eyfOA21s93TOtF5napUpwldIFGjklES9Za8cKXJjTS4S4U089bn2Jz59VwydJlJ) ### #2 Working Without a Plan Not having any financial plan and spending recklessly is another toxic financial habit that you need to leave behind. Having a well-crafted financial plan can help you set targets, plan investments, and design portfolios according to your risk profile, thereby allowing you to achieve your financial goals. This also includes having a good safety net or insurance plans, investments with high liquidity for emergencies, tax planning, etc.  Many of these may look like they are unnecessary or that they are not worth the effort but small changes in your financial habits can result in large benefits. ### #3 Emotional Spending Emotional spending or impulsive spending can be yet another toxic financial habit that can potentially wreck your long-term plans. Spending all your income on non-essentials like too many parties or trips can be disastrous sometimes. Therefore, it is always best to have a budget. Budgeting should be an important part of any salaried person’s life.  Quite often, people end up surprised when they realize how much they have spent during the year. Setting up a reasonable budget with adequate room for a little extra spending can solve many of these problems. ### #4 Not Giving any Thought to Savings and Investment Saving and investing is crucial to everyone’s life. Many young people might think that they can always start investing later and a few initial years of luxurious spending would not be a problem. But such an approach can result in a lot of missed opportunities and returns that you may regret later.  Consider person A, who invests $5000 every year from age 25, and stops at age 34. Another person B starts investing $1000 annually from age 35 but continues investing until they’re 65. This ten-year difference could result in not just a $20,000 overall deficit (with the 2 decades of extra saving person B does), but an exponential difference between their returns many years later because of the principle of compounding.  ![](https://lh4.googleusercontent.com/kdpo28GoF3LhEbz05q4ZXGQ3Z4oJMT4_yS3IOpPyz5buivPkYLDhvy0imT63YJwdPVWbwuTVGLSVgWtKQuIZ3BYDtnonninNrGehKs-jy8MXVu_WiKPyBvVTNUc75Xx2lMjTp58O) Source: Federal Reserve Bank of St Louis ### #5 Getting Lured by Seemingly Attractive Offers Sometimes offers that involve loyalty points and premium memberships can end up, resulting in a net loss for you. For example, if your credit card company is offering you reward points for every $100 you spend, then you may be enticed to spend even more just to earn those reward points without realizing that it results in a net loss.  Another example can be a premium e-commerce store membership that might cause certain customers to spend even more to compensate for the membership fee. While this does not mean that all such offers result in loss, it is definitely worth analyzing what your gains and losses are when it comes to such situations. Your Financial Habits in 2021 ----------------------------- It is an open secret that discipline is the key to a successful financial plan. Many toxic habits are a result of a lack of understanding of how everyday decisions can have larger effects on our lives and how small behavioral changes can greatly benefit us. However, even financial discipline need not be taken to the extreme because not allowing yourself to spend on anything for a bit of fun can also lead to stress. In any lifestyle, figuring what is best for you, and creating the perfect balance is essential. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Safety First! – RFID for your business Author: Udita Pal Published: 2020-12-10 Tags: Business, RFID, RFID in business URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/hxJz7-tE0xMK72N5hr0txEKwHc9dhp18f2Bs0kbOz8dU5pgVifwRrfcG__Ntr7y920Jw3kn8JbYRur383nPIe2z-4gL5_1kruSIimK8jfgRk0b6C9f5M4YxKLQiVXnczsXYX2MAu) **R**adio-**F**requency **Id**entification (RFID) is a fairly simple technology. Admittedly, it’s still pretty cool to use every time we swipe our cards at an electronic gate or scan our IDs at our workplaces. It’s this combination – of being cost-effective, simple, yet fairly versatile, that makes businesses consider RFID as the technology of the future. RFID has continually strengthened its global position. In fact, In 2020, the global market for RFID tags was [projected to be sized at around 24.5 billion U.S. dollars](https://www.statista.com/statistics/781314/global-rfid-technology-market-revenue-by-application/), almost twice as much as it was in 2016. An increasing number of businesses are integrating RFID technology in an increasing number of business processes.   1\. What is RFID and why is it better than traditional bar code --------------------------------------------------------------- Simply put, RFID is a form of Automatic Identification and Data Capture technology which captures data stored on a remote label or chip without any human intervention. The system has 3 major components: an RFID tag or smart label, an RFID reader, and an antenna for transmission of data.  As opposed to the more traditional barcode, which uses a visual representation to transmit information, RFID is faster and can read information from a greater distance. In addition to this, multiple RFID tags can be scanned at once and unlike barcodes, it is not susceptible to physical damage and wear and tear.  2\. Why should a business use RFID ---------------------------------- There are several ways in which businesses can use RFID technology to make their business processes simpler and faster. Some of the most popular uses are:  * **Asset Tracking** Most RFID technology used in business tracks and maintains records of assets. It helps streamline business operations and helps in better utilization of funds and resources simultaneously. * **Access control** RFID tags are largely used in identity cards and access passes. Owing to the quick speed of recognition and multilayered access point architectures it supports, RFID tech ensures faster and more accurate readings. This helps track personnel movement and enforce non-access zones in the workspace, as per the business need. In other words, it helps address the security concerns of an organization without being too heavy on the pocket.  * **Payment systems** The [modes of business banking transactions](https://salt.pe/2020/08/24/essential-guide-to-understanding-how-bank-transactions-work/) are undergoing a massive change. Near Field Communication (NFC) technology, an extension of the RFID can be used to enable mobile payments, making the transactions quicker. Mobile payments are gaining a lot of popularity, especially in corona times. This technology combines the interface of a smart card and a reader into a single device which ensures a 2-way communication with the reader and the NFC tag. * **Inventory management** Manual inventory tracking is not just time-consuming but is also susceptible to human errors. By employing RFID technology in business, large parts of supply chains can be automated. The tracking of the inventory as well as all related data is essentially at the managers’ fingertips. Plus, RFID is a fairly cost-effective solution. In the case of warehousing and distribution, RFID-based inventory tracking lowers the cost of verifying content, locations, and availability of needed goods. 3\. Concerns with RFID  ----------------------- While it is clear that the RFID for businesses has that path-breaking potential, and is being utilized across sectors and domains, it is not completely devoid of its shortcomings.  Some of the most pressing shortcomings are:  1. It is more expensive than the bar code technology  2. Materials like liquids and certain metals can interfere with the signals and the information can be lost 3. More susceptible to unauthorized reading as 3rd party readers can be used to read the information 4. More tags can respond at the same time  RFID Benefits Outweigh Its Cons ------------------------------- RFID technology is gaining a lot of popularity in all spheres of the economic world: regardless of the size or sector of the business. While it is not completely devoid of its shortcomings, the overall benefits from this technology outweigh the cons. With faster controls, customization options, and lower costs than the conventional bar code system, the RFID technology has conquered the business world by a clean sweep. For more on business banking, head over to the [Salt blog](https://www.salt.pe). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Why Cross Border Payments Are Still a Struggle Author: Ankit Parasher Published: 2020-12-07 Tags: cross border paymet, financial institutions URL: https://salt.pe/blog/null As the Covid-19 pandemic serves to urge on the global shift to cashless transactions, we’re witnessing rapid evolution within the digital payment space. Digital payments make a critical contribution to the world’s economy, facilitating transactions between numerous individuals and organizations each year. When it comes to cross border payments, though, it’s really quite astonishing that the usual digital payment methods still face a number of struggles and roadblocks.  The severe effects of Covid-19 on the global economy have managed to slow down the previously anticipated growth in cross border values. But they are still expected to reach [$35 trillion by 2022](https://which-50.com/covid-19-causes-slow-growth-for-b2b-cross-border-payments/). Now, this quite vast number might get you to think that all these intra-border transactions are conducted smoothly. In truth, however, it conceals the many inefficiencies both companies and clients have to struggle with while conducting cross border payments.  In this post, we explore the foremost challenges associated with cross border payments and also take a look at some measures various corporations have taken to streamline the entire process and introduce seamless cross border payment experiences. Why Are Cross Border Payments Still A Struggle? ----------------------------------------------- Here are some of the major challenges that make cross border payments a struggle in many cases:  1. Incompetent Messaging Structures: One of the biggest challenges banks and other financial institutions (FIs) face when it comes to cross-border payments is their inefficient messaging infrastructures. Many organizations face difficulties with replacing paper and manual processes by introducing straight-through processing (STP) and adopting cross border message standards.  Cross border message standards have to abide by multiple domestic rules and regulations as well, and adopting them requires a financial institution to make a massive investment. Therefore, the reluctance to adopt said standards mostly arises from the sizeable costs that come with upgrading the internal systems and procedures, especially for the relatively smaller number of international payments.  2. Slow Payment Processing: Financial institutions are usually required to have direct links with other banks or similar organizations in other countries to sanction cross border payments. However, most FIs can not have counterparts in any given nation, which is why in the case of international transactions, usually the money has to get passed on between several banks in different countries for it to reach its ultimate destination. A typical cross-border payment has to go through at least four banks before its completion.  [According to a report published by the G20](https://www.prnewswire.com/news-releases/how-noire-is-changing-the-face-of-cross-border-payments-using-visa-direct-301158210.html) in April 2020 titled ‘Enhancing Cross Border Payments’, some transfers between jurisdictions can still take around 10 days. It was also found that payments sent from the UK to certain territories had to pass through as many as four currencies and five banks. Additionally, despite the technological advances, around 6 out of 10 cross-border payments still necessitate manual intervention, each of which takes a minimum of 15 to 20 minutes. The most common reasons for the slow pace? Incomplete payment information, money laundering, and fraud investigations, and the need for conduct sanctions. The lack of digitalization and standardization makes it even more difficult to solve any of those issues swiftly, so in case a cross-border payment gets hindered, it could be delayed by several hours to days, and even weeks.  3. A Lack of Transparency: The lack of visibility into cross border payments results in major operational dysfunctionalities for financial institutions. If a payment gets held back by regulatory checks or is intercepted by hackers and doesn’t get to the recipient in time, there’s no efficient way for either the sender or recipient to be notified of the setbacks that caused the stall. As pointed out in [this survey](https://www.pymnts.com/smarter-payments/2019/why-cross-border-payments-need-transparency-overhaul/#:~:text=A%20More%20Transparent%20Process&text=Forty%2Dseven%20percent%20of%20respondents,issues%20when%20things%20go%20wrong.), 61% of treasury professionals have said that the time involved in finding out why transactions have failed cause a drain in company resources. 4. Personal Data Privacy Rules and Regulations: The various regulatory requirements regarding what kind of personal information can or can not be shared only add to the challenges cross border payments have to face, and further complicate the already quite complex process. Financial institutions are required to abide by these mandates, and therefore they have to put a lot of effort into constantly staying updated about the ever-evolving regulatory requirements in various countries, as well as organizing what information can be sent across different jurisdictions.  For instance, the General Data Protection Regulation (GDPR) affects any institution processing the personal information of the citizens of the European Union. On the other hand, in Pakistan, financial institutions are forbidden from sharing any personal or business information regarding their clients, even within the departments of the organization itself. Now that we are aware of the various reasons why cross border payments are still a struggle, let’s see some solutions different corporations have introduced to tackle those very issues, shall we?  How are Payment Providers Dealing With Cross Border Payment Issues? ------------------------------------------------------------------- Up-and-coming cloud-based technologies have proven to be useful in making cross border payments secure, fast, and easily traceable. [SWIFT](https://www.swift.com/our-solutions/swift-gpi/about-swift-gpi/fast-transparent-and-trackable-payments#:~:text=SWIFT%20gpi%20lets%20you%20make,are%20credited%20within%2024%20hours.), the global network that allows banks to send across payments directly to participating FIs swiftly and easily, is already well past solid adoption. In fact, [in 2019, the SWIFT network processed $77 trillion in cross-border payments](https://www.pymnts.com/news/b2b-payments/2020/swift-delays-cross-border-payments-migration-iso-20022/), accounting for about 60% of the overall international transactions in the same year. Recent developments in artificial intelligence (AI) and machine learning (ML) have the potential to provide more cross border payment solutions. Some payment providers within the financial services industry with the target to make cross border payments a faster process have also leveraged blockchain and distributed ledger technology (DLT) behind it. For instance, the [Visa B2B Connect](https://usa.visa.com/visa-everywhere/innovation/visa-b2b-connect.html) platform, developed based on blockchain architecture, processes transactions directly with Visa’s partners within a single day instead of routing them outside of the network. [Mastercard](https://www.mastercard.co.in/en-in.html), on the other hand, has purchased cross border payment providers to expand its own payment networks and offer solutions to these issues. The Canadian payment network [Interac](https://www.interac.ca/) is another provider interested in making use of blockchain tech and DLT solutions. And yet solution providers like Ripple have taken the initiative to eradicate all cross-border payment issues by making the use of cryptocurrency. A number of cross border payment partnerships have also formed; for example, back in 2019, [Alipay partnered up with six European digital wallets](https://www.scmp.com/tech/e-commerce/article/3013833/alipay-and-six-european-digital-wallets-join-hands-increase#:~:text=Six%20mobile%20wallets%20in%20Europe,across%2010%20countries%20in%20Europe.) to allow users to make QR code payments in 10 European countries. Cross border payments are, without a doubt, incredibly complex. However, that doesn’t stop the customers from expecting the same kind of convenient experience from international transactions as they have with their domestic purchases. Therefore organizations sooner to perceive the cross-border payment issues and take measures to combat them are sure to have customer loyalty in the long run.  At [Salt](https://salt.pe/), we aim to improve your banking experience in the coming times by making both your domestic and cross border payment processes seamless and secure. You can visit the [Salt blog](https://salt.pe/blogs/) for further financial insights! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Ultimate Guide To Saving Money For Holiday Gifting Author: Ankit Parasher Published: 2020-11-30 Tags: holiday season, christmas, holiday gifting URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/d_89DZDCw0oUcSXxwAy2600MNkzo31GRBHQ-4UY62Iie4V2f1h3brh7qjbrj1CPgbdviFUrp1DqNnWIxl-NEPin0qtnuTiCWo8-X2h6u31XTP64hwoVeKBZok53dm8FZ6S8w9Hnv) =============================================================================================================================================================================== With the holiday fever setting in everywhere around us, there is no escaping the enthusiasm and festivities, or the [emotional spending](https://salt.pe/2020/09/29/emotional-spending-5-psychological-triggers-to-curb/) it may induce. Even though the world is still trying to battle the global pandemic and its adverse consequences, the holiday season gives us some form of respite from every kind of stress; and the opportunity to focus on the good things in life like our family and friends. The holiday season is a great opportunity to remind your near and dear ones how special they are and pamper them with some presents. It also allows us to indulge in one of our most enjoyable activities: some old school retail therapy. However, all of us are susceptible to get carried away with all the shopping and gifting, to the detriment of our financial goals, [emergency funds](https://salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/), and more. Hence, it is also a great time to point out some quick and nifty tips and tricks for saving money on gifts while making the most of this holiday season. It becomes even more pertinent given the financial [stress many might be undergoing due to the COVID-19 pandemic](https://salt.pe/2020/08/17/starting-a-new-business-during-pandemic/).   Tips to make the most of this festive season -------------------------------------------- Here are a few tips and tricks you can easily follow to get each and every one of your close ones a great gift without breaking the bank:  * Have a fixed gifting budget  The holiday season usually involves a lot of personal expenses apart from gifting, like traveling and lodging expenses if you are visiting your family and friends in another city and expenses on hosting guests who come over. So, the first step is to evaluate your financial position and allocate a holiday gifting budget before the holiday madness sets in. You can further subdivide the budget on an individual basis so that it becomes easier to find apt holiday gifting options. * Have a gifting list in advance To avoid unnecessary expenditure and last-minute splurging, make a  list of people you want to give something to and possibly think of a suitable holiday gifting option. This helps streamline the gifting process, and you can also buy gifts in bulk or avoid last-minute surge pricing on gifts and save a lot of money while not compromising on the quality of the gift. * Do not get carried away with festive sales With the onset of the holiday season comes the myriad of festive season sales on every possible platform. E-commerce giants like Amazon and Flipkart have already started luring in customers with their special holiday discounts and periodic flash sales. If used in a planned manner, you can end up saving money due to these discounts but more often than not, rather than ordering gift we intended to buy, we end up buying a lot of things just because “we need gifts” and “it was so cheap that I could not resist” and regret them later. So, do yourself and your bank balance a favor and avoid any type of impulsive or panic buys. * Wrap your gifts Professional packaging can be criminally expensive, especially during the holiday season. So, ditch your professional packaging service or those overpriced gift bags and wrap your gifts. Not only is it easier on your pocket, but it also adds a dash of personalized touch and can have great sentimental value. While at it, you can also help save the environment by ditching those regular plastic wrapping sheets and go creative and upcycle and reuse whatever material you already have at home! * Switch to handmade gifts  Nothing is more endearing than getting a gift from someone that they have actually spent time thinking about and making. While it is easier to just go to the mall and pick something up, it is not as intimate as that card or candle holder or those handmade chocolates that you made for your close one. So, go creative and make something special for your friends and family this holiday season and see them bragging about it for several holiday seasons to come. Not only is it more economical and saves you a lot of time, but you can also add some personal customization as per the recipient. * Organise gift exchanges instead  Rather than buying one gift for each of your friends or family members, it is easier just to gather all of them together and organize a quirky gift exchange instead. A secret Santa party is a great way to introduce all your friends and family to each other while significantly reducing your holiday gifting expenditure. This way, you just have to buy one or two meaningful gifts instead of worrying about buying a dozen of them, and then there is always the excitement of the surprise gift.  * Use an app or e-wallet  With the onset of the holiday season, the market is flooded with cashback and bank discount options for their existing as well as new users. Apps like Lettyshop and Paytm let you further get cashback on already discounted items. So, do your research well and make the most of these offers and save a lot of money while at it. Parting thoughts  ----------------- Cash payments are on their way to obsolescence, of course, fueled by the fear of the spread of the COVID-19. Even without it, a much more [digital, sophisticated approach to finances and money](https://salt.pe/2020/09/08/digital-banking-is-not-digitized-banking-breaking-the-myths/) has been the way to go, too many of us, for a long time now. Register with Salt by clicking [here](https://www.salt.pe) to experience a [customer-centric](https://salt.pe/2020/07/10/analyzing-the-importance-of-customer-experience-in-banking/), hassle-free, borderless, and [seamless banking](https://salt.pe/2020/11/09/seamless-banking-how-far-away-are-we-from-it/) solution to put an end to all your worries and enjoy the festive season to its fullest. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Five Easy Strategies to Avoid Banking Fraud Author: Ankit Parasher Published: 2020-11-27 Tags: banking fraud, cybercrime, fraud, online banking, online fraud, online scam URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/XcT0Vc0pzzhUrmyAfx_pdA6OwXga5M4zX6U7FNz2X_PFTMlS7Le1gqpKMXJDUoGJIsDczB9aJCFgYWiUVuUGQTmnd7iRKWA3dfmT8Ecxpb1HXWwRZCLSMxzoNgneyNZ6J5Gql9Kn) According to [PwC’s Global Economic Crime and Fraud Survey 2020](https://www.pwc.com/gx/en/services/forensics/economic-crime-survey.html), around $42 billion was lost to economic crimes across the globe in the past 24 months; most of these frauds being cybercrime and customer frauds, among others. Banking frauds remain prevalent – even more so when it comes to internet banking, since it’s quite easy for fraudsters to gain access to your personal financial information and accounts if you’re not careful. As per data from the SABRIC’s (South African Banking Risk Information Centre) [annual crime stats for 2019](https://www.sabric.co.za/media/1265/sabric-annual-crime-stats-2019.pdf),  internet banking fraud incidents have increased by 20% in the past year. With online scams, data breaches, and identity frauds running rampant, understanding the risks you take while banking and knowing how to take protective measures is essential for you. It’s why banking execs cite cybersecurity as their number one priority. ![](https://lh3.googleusercontent.com/tbz4YJYzjPBJX8DNJZej3gVFx1z8Rh8q4I7Sd8wLG4kRwnKiuyRrSVptCeioxs6uRMbJkPmDMiBWfPsRGWD8l_QU7v_AjdFbQRvTaDifvwiZkIaEZZMw3Agrh9zwoWOyA4ANuA9K) In this post, we have compiled a list of five of the most general types of banking frauds, and easy strategies you can adopt to be safe from them.    1. Beware of Phishing: Phishing is probably the most common type of banking fraud; it’s when you’re contacted through phone, text messages or emails by fraudsters in the name of your bank and asked for your sensitive financial information, account number, banking/credit card details, passwords and suchlike. Phishing text messages and emails might prompt you to click on a provided link to give out your account information or verify/change your account somehow. Sometimes the texts might also contain links that allow hackers to install Malware (malicious software) on your computer/mobile device and access your confidential data.   You must be aware that banks don’t ever send emails or text messages asking you to verify your account or share your financial information, and neither would they ask you to give your details over the phone. So make sure to never share your private information (such as your social security number, account number, taxpayer ID, and your login ID and passwords) through SMS, emails or phone calls before confirming with your bank first. And should you ever need to share your confidential data with your bank online, check you’re doing so through the bank’s official protected website.  2. Update Your Passwords, User IDs, and PINs Regularly: Firstly, a legit bank would never ask for your net banking passwords and PINs, so always keep in mind that you must never share your passwords and PINs with anyone. Additionally, if there are any physical documents that contain any of your financial data, make sure you keep them safe at all times.   However, just keeping your user IDs, passwords and PINs secret is not enough, and it is advisable that you change them periodically. In fact, you should definitely change your online banking password at least every three months. To create a strong password, you should always use a combination of lower and upper case letters, numbers, and special characters (@, #, $, %, \* etc.).  3. Keep Yourself Secure While Internet Banking:  With online banking, trades and transactions being the most convenient form of banking right now, it’s inevitable that you’d have to switch over to internet banking services too. However, this very factor makes the internet a popular space among hackers to run financial scams. You’ll find plenty of fraudulent websites ready to swindle you at the first opportunity they get. Therefore, you have to be responsible for your own safety while performing transactions or other banking activities online. Update your device frequently and make sure you have the latest version of your browser and operating system installed. Plus, implement the most up-to-date antivirus, firewall, and antispyware protection in your computer/mobile device to provide the maximum possible security to your private financial information, and any other sensitive data you might have stored on your device.   4. Never Use Public WiFi Connections/Computers for Internet Banking: While using a public WiFi connection or computer might not seem like a very risky endeavour, to begin with, you should be aware that none of them is secure enough to keep the confidential information you enter safely. Fraudsters can take advantage of the loose security of an open WiFi connection to hack your personal data. Additionally, your activities on a public computer can be easily monitored and recorded, and extracting information such as your internet banking user ID and password from an unprotected public computer would not be very strenuous either.  5. Keep an Eye on Your Account at All Times:  Despite taking multiple security measures, 100% safety of your bank account or your financial information is never guaranteed. That’s why you must always keep track of your account and transaction history. In addition to that, you should also form a strategy so you can discover any banking frauds as soon as they happen. For instance, you can set up alerts on your account so you’d be swiftly notified if any breaches happen. Most banks provide alerting services through emails and text messages, so make sure you sign up for those. You can also enable notifications with your debit/credit card providing banks so you’d be notified of all transactions performed using the cards. This way, if your account/ personal data is ever at risk, you’d be made aware at once.    And there you have it, five strategies you can take up to give yourself the maximum possible protection against banking frauds! Visit the [Salt blog](https://salt.pe/blogs/) for further financial insights! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Quick Guide To Prevent e-wallet Scammers Author: Ankit Parasher Published: 2020-11-19 Tags: e wallet, e wallet scams, scammers, scams URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/1SuB12SBOHdqn05E8vYfIarBx9mCzYmIk945Q6pETHlmMks9DN1VNG0SXX8MaXli-Jn3al6LA4EtPjuBxXNFXc5UC99jUxDZaTX7WVJwHzuj2LybnvzgluwhE2n4_PCfzL_cv1L_) Mobile payment apps have been a revolutionary presence in the fintech world. You can now virtually access your money deposited in the e-wallets of any payments platform. And with the adoption we’ve seen in 2020, it really is possible to step out of our homes without any cash. However, the rise in the popularity of e-wallets has inevitably invited the attention of scammers. While back in the real world, where you can clutch on to your wallet and protect your money, you don’t have this luxury in the virtual realm. So here’s a guide to effectively prevent e-wallet scammers: #1 Look for Genuine E-wallet Providers -------------------------------------- One of the main modus operandi of scammers is to offer fake e-wallet service or dubious payment portals. You will most likely be enticed by unbelievable offers like ‘20% balance increment to whatever amount you deposit in the e-wallet’. Once you fill in your bank details or transfer the money, the portal is nowhere to be found anymore.  So it is highly advised to transfer your money to e-wallets of the financial companies regulated by the central financial body of your country. Or you can transfer money to the e-wallets of known global MNCs. Always remember, the aim is to look for credibility and legitimacy of the e-wallet provider.  #2 Unsecured vs Secured Gateways -------------------------------- Secured gateways are websites protected using SSL (secure sockets layer). These websites usually have a lock sign at the start of their URL. This indicates that these websites are verified and free of bugs. Here, you can share the private credentials or your e-wallet details to carry out a transaction, generally without worry. Sharing details on unsecured gateways is the equivalent of handling your house key to a burglar. Just like websites, you must share critical information only on verified and protected apps. The chances of any scammer crossing the protective firewall are extremely thin here. Similarly, you should also not share information for login to your e-wallet using public wifi. Such gateways are usually watched by scammers preying for their next victim.  #3 Watch Out For Harmful Malware and Viruses -------------------------------------------- It has been observed that most of the time an e-wallet scam occurs owing to one’s negligence. By clicking on unsafe links that are shared to you via SMS, emails, or other chat options, in the guise of some emotionally charging information, you end up downloading harmful malware. This malware then secretly works behind the programs and extracts the information from your device and sends it to the scammers. Or sometimes such malware can offer the complete view of your device screen to the scammer, who will then contact you as a concerned authority to check your e-wallet status. You will then unknowingly type all your details and share them with the scamming entity.  You can protect yourself from this by never installing anything from an unverified source. Also, you must install an antivirus application on your device that can check any application installed for its genuity.  #4 Strong Password: A Major Line of Defense ------------------------------------------- There is a crucial reason why cybersecurity experts always urge you to create a strong password. A strong password is not only difficult to crack but it is highly unguessable.  Many times e-wallet scammers can access an account since the password is a pitifully easy sequence like ‘Abcde’ or ‘12345’. You can not then blame the scam that follows for your unfortunate fate.  Always follow the guidelines regarding the strong password and set a password that is not only strong but you can remember it as a mnemonic. If you have to write the password down somewhere, that keeps that page always protected from prying eyes. #5 Be Wary of Fake Help Handles and Portals  -------------------------------------------- Once you are experiencing some problems related to your e-wallet or your transactions in general, you will intuitively search about it on a platform like Google. Here, you will most likely encounter fake support handles of that payments platform, usually on popular social media platforms like Twitter or Instagram. These handles masquerading as the official one will likely send you a link or coax you to reveal your account details in the guise of solving your problems. You must be wary of these tricks used by the scammers to dupe you of your money. Always reach out or contact the customer support handles listed on the official website of the platform. Also, in case you wish to contact the support group directly through social media, then do look for signs of ingenuity and verification like blue ticks, before you establish any contact.  What to do after an e-wallet scam? ---------------------------------- E-wallet scams, despite being an unfortunate happening, are fortunately most of the time-reversible. While each country has its guidelines and mandates on how to deal with this situation, most of them allow you the privilege of getting back a refund. Based on the swiftness of your actions in alerting the payments platform, you might end up getting the transfer stopped or reversing the transaction. In this way, you might receive the entire amount back as a refund.  It is important to note that although laws are protecting you from thefts like e-wallet scams if such a scam happens owing to your negligence then, you, and not the e-wallet company will be liable for the loss. You will then have to bear the loss of your money till the time you inform your e-wallet service provider. The popular idiom ‘Prevention is better than cure’, fits aptly here since by just being a bit aware and vigilant, you can safeguard your money in an e-wallet. Remember to pick the right financial solutions for yourself too – those that have extensive security mechanisms in place and are a joy to use. Like [Salt](https://www.salt.pe). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is It Possible To Put Business Banking On AutoPilot? Author: Ankit Parasher Published: 2020-11-16 Tags: Business, neobank, autopilot, busniness baking, NeoBanking URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/SH2mdU525A9YYoJUfaOPoX9LV_iWpR4WNI8_K3fkk9w59tiGyYVBChA_HROtsWuD1nChHCp6X7YEbaLeRSLZ5b_YXM_ErsD5XOiSc-GyibOrUFXLNUoEhmas7-my46iM6cOK4-Hu) With conventional banks still turning a blind eye to address the issues faced by small and medium-sized businesses and startups, large fissures in business banking have emerged. The biggest challenge small businesses face is that of credit and payment. Considerable resources are consumed over apparently straightforward tasks such as executing payments to vendors and employees. Moreover, small businesses hardly employ the use of credit cards, and entrepreneurs realize the need to focus their time and effort on core business areas and goals rather than jostling with bills and handling finances. This is why the digital banking space is buzzing with innovative fintech and neobanks that promise such businesses to help them move their business banking to autopilot mode, taking care of every possible financial service via a simple yet interactive interface. But is it truly possible to put business banking on Autopilot? Let’s find out. Here’s how neobanks put business banking on autopilot ----------------------------------------------------- Neobanks operate as a digital financial assistant of sorts, helping businesses automate their financial tasks while they work towards their goals. Digital or neobanks are monetary service providers offering payment and money transfer services, savings account, loans for business, and individual and budgeting services, among others. Neobanking is all about the ease of finding all probable financial management services under one roof. There are several neobank functions that help businesses go in autopilot mode:  * Operating as a unified platform, a neobank helps in making, controlling, tracking, and analyzing all kinds of monetary movements. The transactions related to customers, vendors, and employees can be easily tracked and managed by their financial CRM(Customer Relationship Management).  * Neobanks take care of payroll and tax compliance requirements while seamlessly integrating their services into the firm’s process. Payrolls can be automated entirely while statutory compliances such as the provision of PT, ESI, TDS, and PF are automatically performed.  * Round the clock banking services ensure on-time disbursal of payments, salaries, refunds via RTGS, NEFT, and UPI among others, and other money-related services. Firms need not worry about banking hours ever again! * Each user is granted a personal dashboard, the bank’s app, and integrations, approval workflows apart from the conventional features that come along with the current account. * Using data and AI, neobanks customize saving goals to suit a particular firm’s needs and goals. * Neobanks offer regular and smart reports and insights via access to financial reports and summaries and other statements giving a financial overview of the firm’s business expenses. * The autopilot mode so offered is scalable i.e. it scales with the scope of business operations while taking care of all the bulk payouts, contractor payments, and other such disbursals expanding as a result of the scaling.  * The firms can add multiple contacts to their phonebook in one go and start transacting with them immediately without waiting for any cooling period to initiate and complete itself.  * Neobanking streamlines the financial operations of a firm using powerful APIs. The APIs so used help the firm to enhance the flexibility and visibility in managing finances.   What are the advantages of going autopilot on banking? ------------------------------------------------------ Being an autonomous entity, a digital bank like Salt proactively helps entrepreneurs running short on time or skills to manage their finances automatically without them being worried or harassed. The firms on autopilot can be assured of availing all the right opportunities. * For any business, managing finances and budgeting can be the most mentally taxing jobs besides the usual revenue-profit-sales-cost worries.  * Neobanks automate a majority of the financial tasks thus imparting financial discipline to the entire business process.  * They use the power of AI and Data in real-time, removing the scope for errors or inefficiencies.  * When on autopilot, firms are relieved of the anxiety associated with managing money as such banks operate via apps or websites with a user-friendly interface.  * Businesses on autopilot can build their wealth autonomously, as neobanks also help to utilize every saved penny in an optimum way.  * Since these banks operate online, a major chunk of costs that were earlier deployed in availing conventional baking services is saved.  What are the probable challenges?  ---------------------------------- Customers still consider neobanks as alternate banking options while employing conventional banking services. SMEs and other startups often face uncertain conditions and a rocky environment. Going autopilot may be lucrative, but not a feasible option for many who survive on hand-to-mouth returns. Complete dependence on automated financial management may cause businesses to go careless with their expenses. At times, firms might find it hard to assimilate the autopilot mode in their planning, given that most of the industries are always in flux.  Neobanks boast the capability of taking business banking to another level, given their low-cost business models. These banks are also witnessing good rates of adoption owing to their enormous offerings. Amidst the pandemic and economic slowdown, that businesses need work upon their financial health is not something that needs preaching. Putting your business on autopilot can save one from many unnecessary money management hassles. There’s a lot more to explore in digital banking. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Seamless Banking: How far away are we from it? Author: Udita Pal Published: 2020-11-09 Tags: neobanks, omni-channel, Seamless banking URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/ajPDJx3-iqrP-rQCA8W9OrGKTtsYmOhOqUb_HQD-KTkqzQrx77nfEg7uHZyBsdYNtvzi5LgsKLenpLkBC3A-KhQiYCRfQa2cXEro0cUfJryNF1YeCELyDCPT0sVfSFjwWXUeX7Yt) First off, what is seamless banking? Seamless banking refers to personalised digital banking services based on data and insights about customer habits and preferences, ensuring a consistent experience regardless of how you avail of the services. It is more a matter of winning digital minds and analogue hearts via products and services that serve the needs, values and beliefs of the customers.   There are two significant aspects to consider if you’re looking to drive seamless banking: * The first aspect would involve the bank integraing its existing financial services into various non-bank applications. * The second would require the banks to ensure that the customer uses negligible or zero physical artefacts while using the bank’s financial services.   Recent [research by Bain & Company](https://www.prnewswire.com/news-releases/seamless-digital-experience-the-key-to-retaining-banking-customers-as-tech-threat-looms-300960199.html) has revealed a few interesting insights:  * A survey of 131,000 consumers in 22 countries found that digital channels were the preferred banking mode.  * The share of product purchases via digital channels has increased by 2% to 16% since 2017. * The total share of digital purchases stood at 18% to 60% depending on the country, with the UK topping the chart.  The increased use of mobile devices, globally, especially Central and Eastern Europe has pushed the digital drive leading to mass adoption of digital banking services. They are the drivers of seamless banking experience owing to the ready digital infrastructure, and superior interface and visualisation today’s mobile devices offer. Customers are empowered to make smart and informed decisions in real-time.   The Neobank Factor ------------------ Another prominent development is the entry of neobanks in the financial market. [Neobanks](https://www.salt.pe) have increased competition, gained considerable market share and offer a superior customer experience challenging the incumbency of traditional banks. Their success arises from a focus on identifying the gaps in current banking structures to provide a vastly superior digital alternative.   **A neobank is 100 per cent digital and uses apps and online platforms to support their customers, rather than traditional physical branches.** Neobanks intend to evolve further to enter the mainstream financial sector with some banks having applied for licenses in some markets, while others having acquired fully-licensed banks for instance, Tandem’s takeover of Harrods Bank. In some cases, traditional banks have started to develop its own digital-only brand.   Even though traditional banks have the ready advantage of customer support and funding, they are far behind in developing innovative customer experiences: * Neobanks offer flexibility and ease and are more inclusive than their traditional counterparts.  * They can better perform in terms of customer service, rates and products offerings. * They along with FinTechs further market segmentation.  However, a seamless customer journey is a continuous process, which is integrated rather than additive. The future of banking resides in an eclectic omni-channel mix of the physical as well as digital to serve seamless experiences. Most banks view the omni-channel approach as significant to help them adapt better to changing customer preferences and digital disruptions. The [Building the Retail Bank of the Future Report](http://www.bain.com/Images/BAIN_BRIEF_Building_the_retail_bank_of_the_future.pdf) by Bain & Company found that 75% of the banks consider omni-channels as extremely significant. Most of the banks are in their early stages of development of such channels.  Digital banking developments in Emerging Markets ------------------------------------------------ Consider Africa, which is majorly a cash-based economy steadily moving towards mobile money. Alternative forms of banking and payments are a popular mode in Africa with [84 million](https://www.finance-monthly.com/2019/12/84-million-accounts-digital-banking-is-quickly-expanding-across-africa/) active digital accounts. Big players like Standard Chartered have also realised the feasibility of digital channels to smoothen the customer experience. Jaydeep Gupta, region head of Banking in Africa at Standard Chartered says “we have now launched digital banks in 8 markets within 15 months as we have seen a growing demand for convenient banking in Africa. In line with this, we will be launching our digital bank in Nigeria which follows the eight digital banks which we have already launched so far.”  The increased use of digital payment innovations in West Africa is causing the demand for accessible services and product innovation in the digital banking space to shoot up. African governments are initiating wide-reaching financial inclusion roadmaps to alter and reshape accessibility to finances. They are collaborating with private sector organisations to reach varied customer segments.  So Where is Seamless Banking Headed? ------------------------------------ The current digital trend and adoption of several types of neobanking facilities, like the easy and instant financial management services from Salt will simplify banking for both individuals and businesses in a digital way, enabling the seamless banking dream. There are several reasons to account for the digital shift:  * The Gen Z and millennials are all gung-ho on speed, efficiency and accessibility. They are concerned to get things done ‘now’ – whether it’s bill, send money or seek a loan. The waiting game isn’t appealing anymore.  * There is a change in consumption pattern with regard to financial services that concerns more about the process that would help them save time. As long as a financial service is embedded in their natural process, the customers don’t care about the nomenclature of the service.  * The entry of new digital players in the virtual financial market that understand the nerve of the customers better than the incumbents is another significant change. These players use the data to tailor their services according to the specific needs of a particular customer. Such services, being embedded in the natural process like online shopping, become an obvious choice while traditional banks are left out.   * The traditional banks are bound by tight regulations which makes them incompetent to try and assimilate disruptive practices. Also, banks are more concerned about fixing their face rather than improving their processes. They are ancient when compared to the technologically advanced neobanking services overtaking the digital space.   Seamless Banking: What are the challenges?  ------------------------------------------- Digital seamless banking is fast gaining traction, but there are certain challenges that can hamper growth and adoption: * Traditional banks still hold the major share of market resources. * Acquiring a significant customer base is essential for the survival of such digital banks. Customers feel hesitant to opt for a complete switch-over to the digital mode, owing to lack of trust.  * Lack of funding does not allow for scalability and economies of scale for digital banks who have to develop their products and services from scratch.  * Compliance with regulations is a major hindrance for digital services that are disrupting the digital banking scenes. The current times call out for a critical outlook towards the disruptions via neobanking and omni-channels while considering the incumbent role the traditional banking sector plays. Whether digital seamless banking simply overrules the incumbents in future or complements them towards a seamless banking experience is an issue worth debating. However, the fintech sector and neobanks like [Salt](https://www.salt.pe) can sure act as catalysts to redefine financial markets and improve access for the underbanked and unbanked and ensuring seamless banking experience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The good, the bad, and the ugly: Banking in Africa Author: Ankit Parasher Published: 2020-11-05 Tags: Banking, africa URL: https://salt.pe/blog/null In Africa, banking systems have undergone drastic changes in recent years. The rise of African groups and intensified competition have compelled the industry to pursue growth strategies focused on a more transformed client base. McKinsey estimates the [African banking sector will be serving nearly half a billion people](https://www.mckinsey.com/~/media/mckinsey/industries/financial%20services/our%20insights/african%20retail%20bankings%20next%20growth%20frontier/roaring-to-life-growth-and-innovation-in-african-retail-banking-web-final.ashx#:~:text=As%20of%202017%2C%20there%20are,tapestry%20of%2054%20country%20markets.) by 2022, up from 171 million as recently as 2012. Now, the sector faces new challenges to consolidate, grow, and support the continent’s growth overcoming all the challenges. The financial structures of Africa continue to dominate commercial banks today. Significant reforms have steadily overhauled the financial structures of Africa for the past forty years. The advent of regional and, in some cases, continental African banking groups have fostered the development of regional markets. These various stages and continuous changes have influenced Africa’s existing financial structures and their strengths and limitations. In this post, we explore some of them. Africa’s Banking: The Good  --------------------------- Improved procedures and systemic improvements have been made, such as establishing the Francophone African regional banking commissions and improved counterparty risk regulation at most commercial banks.  Today’s financial institutions show greater resilience and higher ethical performance and, therefore, have improved outcomes. Spurred on by the acceleration of economic growth to which they contribute, banks see their efficiency and operating metrics improving steadily.  Depending on the regulations of the country’s economy, climate, and financial services, the situation differs considerably from country to country; and, irrespective of the geographic area, nation, or bank, the progress is undisputed and noteworthy.  The overall improved health of Sub-Saharan Africa is expressed in banking systems while being compatible with the continent’s various economic spaces’ intrinsic characteristics. Banking in Africa: The Bad and the Ugly Banking Crisis ------------------------------------------------------ Africa has experienced 43 systemic banking crises (vs 56 in the rest of the world). Its share of such events has dropped further over time. Since the global financial crisis (2008), the continent has experienced a single systemic crisis (Nigeria 2009), compared with 47 in the rest of the world.  Honohan and Beck (2007) suggest that Africa’s banking crises were very different from those outside them because the continent’s crises got triggered due to governance problems in both the banking and regulatory structures. These crises have made regulatory bodies more conservative, but reforms have enabled the continent to boost its financial system’s stability.  ![](https://lh6.googleusercontent.com/q60-yaSUCxaUWB-3YX15m4qvciB68-jx_2Qhh20PjrnDrYpc5d9V4uYnfsvCb2am1wfp1xMAb1KERSEY5uKz92D59IDnPzWWjOg-84icmT8vBv48W4m6t6Z3I8LH7SFFUe_jm1LN) Covid’s effect on the banking system of Africa  ----------------------------------------------- The economic structure for Africa is already radically exacerbated by the Covid-19 pandemic. Economic interventions have included lowering the base rate, which positively impacted aggregate demand and households’ willingness to service debts, but lowering bank cash reserve levels, purchasing government bonds, and banks’ debt moratorium.  The stability of the banking sector in Africa, however, is challenged by the possibility that non-performing loans will rise sharply. Borrowers across industries and market sizes will be affected, as sales and revenue losses mean that they will not fulfil their obligations. With good prospects for future growth and the emergence of large regional banking groups, African banking is at a stage of evolution. The emergence of digitisation in the sector has provided the requisite impetus for taking more of the continent’s population into the banking network, resulting in financial inclusion and increased access to financial services. African banking is growing at a rapid pace, especially on the digital front. At [Salt](https://www.salt.pe/), where we’re working on similar goals of making digital banking easier for businesses and individuals, this is great to see. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Going Global: The future of SMEs Author: Ankit Parasher Published: 2020-10-31 Tags: africa, Global, Globalisation, SMEs URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/uaDFxqeWJ9-TMLCWRx31fcJSEJOaRH1tZPuLEaSGd8oYMAf_eZYm3yk339Ytb_0Wm6wxP1noH7MrU_ehLg3o0ZP-jJq4mMx7B3BaGTQhow0AOPzGgsfeQcxabtG1tq4i_FqxFlwB) SMEs are the backbone of any economy, providing a skeleton for thriving entrepreneurship and curbing poverty. They constitute a major part of business operations and are considered to be the accelerators of economic growth. They help in ensuring the long-term sustainability of markets – emerging and existing. In Africa alone, It has been suggested that SMEs contribute about [50% of GDP](http://rais.education/wp-content/uploads/2018/11/020HG.pdf) and about 60% of total employment.  Globally, [they represent](https://www.worldbank.org/en/topic/smefinance) about 90% of businesses and more than 50% of employment worldwide. Similarly, subSaharan Africa has the highest number of people engaged in embryonic entrepreneurship (14.1%) or early-stage entrepreneurial activity (26%) in the world. Entering the foreign markets is the next obvious step for any SME doing well and intending to grow and expand. While this fact is crucial, the firms need to strike a fine balance between a desire to internationalize their business and serving the needs of the existing markets. The last decade witnessed a significant rise in the number of African SMEs initiating international and intercontinental operations. The spurt in the number of innovative and creative SMEs and their ability to sustain themselves against the international competition can be said to be the main reason for this development.  Some examples of African SMEs that successfully expanded their operations globally include Telkom operating in 38 countries, MTN in 24 countries, and Standard Bank in 20 countries. Others that show similar growth trends are Togo-based Ecobank (40 countries); Nigeria’s UBA (20 counties) and Dangote (15 countries). These increases in intra-African cross border activities are accounted for by the rising entrepreneurial spirit across many African countries.   Why is going global the only way out? ------------------------------------- **“For the small to survive, the small has to go global”** **~ Pawan Gupta, Founder and CEO of Connect2India** SMEs trapeze their way through insufficient funds, narrowed the market scope, and financial and knowledge gap. Non-price competition has become extremely important all thanks to globalisation. SMEs are competent to respond better to such kinds of competition. Collaborative partnerships, interfirm industrial networking, and the integration of SME clusters into global value chains have proved to be crucial for any SME community across nations. It is in the interest of SMEs to go global:    * Diversification of business into other markets leads to mitigation of overall risks and provide an escape from saturated domestic markets * Foray into global markets automatically open up infinite growth potential and profitability * Greater production capacity and expansion of operations lead to economies of scale thus lowering costs * The firm is required to meet global standards and hence, is able to better deal with domestic competition.  * The customer faith is boosted given the firm’s status of that of a global brand.   * The global firm now comes at par with the MNCs and shares its advantages. * Internationalization helps SMEs to overcome government barriers. * SMEs are able to engage themselves better to make export activities easier via a better information network.  What are the challenges to the globalisation of SMEs? ----------------------------------------------------- Africa has a population of over 1.3 billion people steadily growing at an annual rate of 2% in most regions. Many countries have about [50%](https://nextbillion.net/future-african-smes/) of their population below the age of 25 years, pointing to the growing need for jobs and economic growth. The local SMEs can deliver the necessary spectrum of opportunities to their populace, but they suffer from their own set of challenges: **Financial access**: Consider the formal African SME sector, which has an annual [financing gap of over US $136 billion](https://www.vanguardngr.com/2017/11/african-smes-face-136bn-financing-gap-annually-ifc/) (the number is in the $5 trillion on for global SMEs). Access to finance is the biggest hindrance that SMEs face in most developing countries. For SMEs, The sources of institutional finance are skewed towards big players and MNCs **Inadequate infrastructure**: The inherent risks of high-cost microfinance required by SMEs are high and lack trust in part of international as well as local investors. As per a World Bank report, a firm’s productivity is slowed by [approximately 40%](http://rais.education/wp-content/uploads/2018/11/020HG.pdf) due to the weak infrastructure in African countries. Lack of government support and levying of heavy duties hurt the export efficiency of firms.  **Lack of knowledge and understanding**: Imprecise foreign market information and lack of international marketing skills pose a serious threat to any new business trying to get a global grasp for their business. Also, high dependence on a foreign executive for a longer period of time can have the business treading in dangerous waters.    **Other factors:** The businesses have a high-cost base and a limited range of products. They usually do not benefit from economies of scale. In particular, African SMEs suffer from some specific disadvantages such as: * Cultural and regional differences * Volatile input and output markets * Inefficient legal and regulatory framework  * High tariffs and  * Poor technology What strategies can the SMEs adopt? ----------------------------------- **Appointing a local executive:** No sooner does the feasibility of internationalization is ascertained, an SME should appoint a seasoned executive well aware of the local market and aligned with the firm’s vision and strategy.  **Experience and understanding**: Having sound knowledge and understanding of international markets is paramount to expanding business operations beyond the national boundaries. Such useful insights help in planning and strategizing global trading. The second thing that comes in handy is experience with prevalent practices in global markets such as those related to quality and payment. Positioning oneself as a global brand can build the trust of the domestic and global audiences simultaneously.    **Technology**: Relevant technology lends access to valuable knowledge resources and integrated trade platforms that help the SMEs to go global. Innovative practices and advanced technologies like data sciences taper the challenges faced by SMEs. For instance, the ‘Proudly Made in Africa’ campaign became quite popular across the African continent helping SMEs to earn the trust of consumers. **Cultural Intelligence**: The leaders or entrepreneurs must possess high cultural intelligence and be flexible enough to adapt to new global markets quickly. The spirit of multiculturalism and global values should be incorporated into the company culture itself. SMEs should focus on building trust and show their willingness to build long term relationships to build their reputation in the foreign markets.  **Access to Finance:** A [2010 IFC report based on a study of SMEs’ access to finance](https://www.ifc.org/wps/wcm/connect/1f2c968041689903950bb79e78015671/AccessCreditMSME-Brochure-Final.pdf?MOD=AJPERES) in 177 countries cited the solutions to this challenge lies in the creation of financial intermediaries. Access to institutional financing via a country-specific financing model would go a long way in strengthening the necessary facilities available to SMEs to globalize their operations.  It is predicted that Africa is to become one of the forerunners in the global economic arena owing to its mineral wealth and natural resources. The rapidly increasing population in the African continent means a huge potential market in the future that can only be tapped through financing the SME sector. At [Salt](https://salt.pe), we’re on a mission to simplify banking for everyone – both individuals, businesses. With easy and instant financial management solutions, in an all-digital way. Join our waitlist to see what we’re all about! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Perks of Being an Early Tech Adopter Author: Ankit Parasher Published: 2020-10-28 Tags: fintech, early tech, early tech adopter, tech URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/o2S6K1P45KmmMJZorVxd7q2hySgtjlmpF5R-lmTYm2mclqC8dw5qVSEzr9pBUsQ1HX1WqbGSvIWMIBriiNHPrSXn74GfeZc1203MrIyXECog2_bJPRgdHRvRvsadgm00gPA1Dlte) What does it mean to be an early tech adopter? For many, it could mean keeping pace with the ever-advancing tech while for others, it could mean spearheading innovations in the tech industry to deliver the first product built by integrating an emerging technology. Whatever the case, it appears that warming up to tech early has its perks. Let us delve deeper into these advantages. ### #1 Competitive Advantage It is an undisputed fact that technology can be leveraged to significantly improve efficiency and management during tasks. For a business, the mistakes from poorly organised documents or the time spent in manually managing tasks that can be automated, often add up to be a high cost. Saving time and costs by adopting the right technology can, therefore, offer businesses a competitive advantage over their peers.  In most cases, individuals can also reap similar benefits by using automated bill payments, organising digital documents, using workflow management tools, etc. ![](https://lh6.googleusercontent.com/jMBztdkTZuJVppKri1XDeII0sels-OjqmiZLyWo519QTNX9psPalcAnXyC3A74eEB7AHFB795MaM8YE7mXvSoTbnbWdGMvKjRXZL9UQ2J7UU1bnyUYhd0Cn7Aeh4q1S3l43PLN8d) Innovation Adoption Curve [Source](https://www.flickr.com/photos/jurgenappelo/5201275209): Illustration is part of [www.management30.com](http://www.management30.com/)  | Image License: CC by 2.0 \[Need attribution to share\] ### #2 Better Relations with Tech Companies For businesses, early adoption of new technologies often helps them forge lasting partnerships with other tech brands by creating a niche for offering their services. For example, Microsoft and VMware announced that they would partner on a new device management strategy called [Project A2](https://www.wsj.com/articles/rivals-microsoft-and-vmware-to-team-up-on-windows-10-push-1441123705) in an interesting pairing between rivals. For individuals, better relations with tech companies could mean better long-term experiences, such as upgrades. Early Apple tech adopters have had the chance to upgrade to a newer iPhone right at launch using the iPhone Upgrade Program, which also bundles AppleCare+ extended warranty. ### #3 Potential to Influence the Market In the age of social media influencers and tech reviewers, there are several ways that tech-savvy customers can potentially influence the market. Companies manage to get considerable feedback from customers through surveys and reviews. Tech enthusiasts also get beta testing opportunities, by participating in [Google Play](https://www.apptamin.com/blog/google-play-beta-testing/) beta testing, for example. Sometimes, users also get rewards for reviewing products, as on [Google Opinion Rewards](https://surveys.google.com/google-opinion-rewards/). The feedback obtained is often immensely valuable for companies because early tech adopters constitute the first official demand for the product. ### #4 Better Access to Resources Tech revolutions have made it possible to have a plethora of resources available online. A world of opportunities awaits anyone willing to delve into the tech domain. For a tech-savvy user, access to all kinds of resources is far easier – for instance, online courses help to establish crucial industry skills and develop tech projects using new and emerging technologies.  The skills and portfolio that are built enable individuals to connect with industry experts, participate in conferences and innovate to create products of their own. The benefits are not just limited to individuals, but businesses too can leverage these opportunities to cut down costs and enhance their products.  What are the Risks? ------------------- Much like any other niche concept, being an early tech adopter comes with its set of risks. Often, the cost of investing in early tech products is high, and there is uncertainty regarding the future returns or utility of a newly launched product or even perfect functionality. But trailblazers in the field, such as leading businesses that were quick to adopt emerging technologies and even individuals who built expertise around tech products, have proven that often, the risk can be worth it. While adaptation is survival, early adaptation is innovation. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Are You Financially Ready For a Pet? Author: Ankit Parasher Published: 2020-10-23 Tags: Adopt, Pet URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/0jLzwH7GI_kccJe1HiFxsE4TkEDcKk2ZmiB81YAm8zyfWCBWAw_65oaHypYsJPxUik_E4bWAD1aeuB-Ku39u8r_DLFeh5UWjBas8hhc1u9Usr4uQOkH2dd_GjsIXfbdHhPPhIDvi) Owning a pet can be wonderful, as a whopping 67% of US households (approximately 85 million families), would tell you. They are associated with lower stress levels in a household and can be a wonderful and delightful addition to your family. But while we’d call our relationship with them priceless, they still come with some hidden costs. The 85 million US families, for example, [spent over $75 billion on their pets](https://www.iii.org/fact-statistic/facts-statistics-pet-statistics) in 2019. Before you choose to adopt a pet, a prudent decision would be to look into the financial implications that come with owning one, and the recurring costs for maintaining the well being of your new furry friend. Here’s how you can financially prepare yourself before you welcome a pet to your family. Remember to lay out potential expenses -------------------------------------- Laying out potential expenses is one of the most important things to do before you have to do before you adopt a pet. These expenses include several costs – medical bills, diagnostic testing, pet insurance, pet food, training, pet registration, and several other miscellaneous costs that might seem small but do add up to a large amount. You’ll be able to plan your finances in a more realistic and better way and help ensure that your new family member is attended to and taken care of.  Save up for the first year’s expenses ------------------------------------- The first year’s expenses are the most critical and arguably the biggest ones. A prior fund can assist in a smooth transition to your new life with a pet. These would include: * **One time expenses** such as any adoption fees, the cost of vaccinations and neutering, diagnostic testing, cost of setting up a kennel or pet furniture, and  * **Recurring expenses** such as pet food and supplies, pet insurance, and many more depending on the type and breed of the pet you get. Strongly consider an emergency fund ----------------------------------- Setting up an emergency fund for your pet is something all pet owners should practice. Unprecedented expenses might come up above and beyond the usual outflows. Accidents, illnesses, or even vet appointments are all possibilities. As a pet owner, you’d want to ensure that you attend to your pet’s needs in the best way possible.  What other tips should you keep in mind? ---------------------------------------- You can minimize your expenses, and maximize value on your spends, by some of the following practices:  Adopt instead of buying ----------------------- ![](https://lh5.googleusercontent.com/PABfCE1KLBZKUGOkPECrnE4iemeGyUVMOs6pbO9byCHKvYAyXmvubjdASMGPlC0rvD_VS1iF_78mu8iaE00LAb2Pq7UuUQmIPtZgr0D3gXaAxlXTdlVEuxn0WFk8huP4C7jwMz-q) Adopting a pet instead of buying is one of the many ways through which you can cut your costs significantly. Adoption usually costs less, whereas buying a pet can often lead you to shell out a large amount. The adoption price often includes the cost of spaying or neutering, first vaccinations, and sometimes even microchipping.  Moreover, the idea of adopting a pet that arguably needs it, and tending to life by reducing the number of euthanized animals, is one that appeals to many of us. Keep your finances in check --------------------------- ![](https://lh4.googleusercontent.com/gC_rlLWl64tE6XEKuuIRHAFltMxz-Ak-4u92B94VnpwZv6Zwa0tT_ELr5eayU4z9p1VGVRCNCYQw2vsHLebUOgQpI71C7XuECAaeDc0vKcWEHdR3C-ksYKaBfd_TZ_hV5PUtbZfY) Owning a pet comes with recurring costs. Before you get one, make sure you have adequate financial resources to afford the monthly and annual expenses that come along with your little furball. Keeping your finances in check will help you determine whether or not you can afford to keep a pet, along with the breed that is most suitable for you. For example, [according to a study conducted by ASPCA](https://www.moneytalksnews.com/which-is-cheaper-cats-or-dogs/#:~:text=Several%20years%20ago%2C%20the%20ASPCA,cheaper%20to%20own%20than%20cats.), owning, and raising cats is cheaper than dogs, however, small dog breeds can cost even less than owning a cat.   Pet insurance ------------- Pet insurance is a relatively new concept, but an important one to consider before you welcome a new furry member to your home. Pet insurance can help in reducing ongoing medical bills and vet expenses. Moreover, through this smart financial planning tool, you are less likely to give up your pet to a shelter if your pet is injured and beyond your financial means to treat. Hence, pet insurance is one meaningful investment that must be made when adopting a pet.  ![](https://lh6.googleusercontent.com/948UKcJfFBS7ckI4X0sWqX9HONPu1Acqoddh5atkVEOhPAWpyn6Xn8f6TNy7MVzrJwyHrAZM0a2wxBpAveOtC-DJLUoSKE78sd6gJ_mXkxF1_kPMo9BkU9F8PhQZJlcaStZI2mgX) Like most financial decisions, planning is one of the most effective ways to keep your pet spending limited and well within a budget. Building a monthly budget for your pet will ensure more insight into the costs incurred and help you spend your financial resources in the best way possible. At the end of the day, the objective is your pet’s well being as well as your financial health.  Pets often become our family, and it’s important to recognize this when we start out to save for one. Educating yourself about the financial implications that come with owning a pet will help you prepare better and aid you in providing the best possible care for the newest member of your family! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Is Now The Time To Move Your Business To BaaS? Author: Ankit Parasher Published: 2020-10-19 Tags: BaaS, Banking as a service, Banking service, Business Banking URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/6AbOotxhzT-_n8_eVkQgheAVAdlgUgCh_QPRGYknb-MBxqTY5UE2Xs0W3VViBC7dA7kwHjOOi4DbSITeG7s2bOu5XQsEcb9ss3Ixrkb_E-yb6BCU2OOx3ryc-HGGdirTmcX4dC1E) Banking as a Service  The fintech space has been a hot sector for a while. It witnessed a [doubling in its fundraising numbers to $3.7 billion](https://www.financialexpress.com/industry/fintech-investments-nearly-double-to-3-7-billion-in-2019/1874684/) in 2019, and seems to be continuing on its upward trajectory. While the term itself is a broad label for tech solutions encompassing finance and banking domains, in this era of digital transformation, something called ‘Banking as a Service’ has emerged. Better known as BaaS, it essentially refers to the concept of enabling third parties to connect with the bank’s systems to provide banking services to their customers. The concept is inspired by the term SaaS (Software as a Service), allowing users to subscribe to software products rather than buy them outright. Understanding BaaS ------------------ In simpler terms, third parties, which may be businesses or FinTech companies, would provide banking offerings to their customers by building on top of the existing regulated infrastructure of licensed banks. The connection with the bank’s system is made via Application Programming Interfaces (APIs). This allows financial data to stream between users and banks. Therefore, there are three entities that are involved in bringing an enhanced user experience to the customer:  * The licensed bank which provides the infrastructure.  * The intermediary or the BaaS provider that maps out banking services using APIs. This provides an ecosystem for the FinTech company. * The FinTech company that builds upon the bank’s infrastructure and customises banking offerings for the customers. ### What does BaaS have to offer for businesses? * The most crucial advantage of BaaS is that fintech companies do not need to spend additional capital and resources building the core infrastructure. This means that they would focus on innovating and enhancing their products for better user experiences. This is particularly useful for startups since they would be able to achieve outcomes with lower capital investment. * Dealing with complex licensing and compliance can be a hassle for many fintech firms. Partnering with licensed banks can help them overcome some of these regulatory complexities and focus on building great products. * Businesses can also expand their customer base as they would provide a broader range of offerings and better user experiences. Naturally, this assures higher potential for improved revenue outcomes. * Allowing third parties to access their platform for a fee can serve as an additional revenue source for banks. As a result, banks would also be able to lower their costs. It’s truly a win-win.  * Another noteworthy aspect is that the demand for personalized banking has been consistently growing. According to [Accenture’s 2019 Global Financial Services Consumer Study](https://www.accenture.com/_acnmedia/pdf-95/accenture-2019-global-financial-services-consumer-study.pdf), one in two people would like to receive personalized financial advice from banks. Migrating to banking SaaS would help both banks and FinTech companies unleash their potential. Businesses will be able to offer personalized experiences to customers, serving essential insights and reports on valuable metrics involving spending habits and customer profiles. Should you move your business to BaaS? -------------------------------------- According to the [World Retail Banking Report 2020](https://worldretailbankingreport.com) by Capgemini and Efma, 70 percent of the customers choose non-traditional options for lower fees, 68 percent for user experience, and 54 percent for speed. Simpler banking options, open banking platforms, and industrialisation have. Therefore, it appears that the time is right to shift to BaaS and consequent improvements in banking offerings.  But this shift does not come without challenges. In developing countries, the market penetration challenges for internet and fintech services, and the state of financial and digital literacy will need to be addressed as technological innovations accelerate. Simultaneously, banks’ tech infrastructure also needs to be on par with the level in developed countries.  ![](https://lh5.googleusercontent.com/sEJ7BWRU8oEuH1BCWA5Uqhn5s-XzxkEhAEMj_J3Z7M5G2nfR1_VNUDRGpZKX3DpyCHv3FckZ9v7CevcETduL7vAsVf6jHn69-xyOwdAnn4x7k-wzxN1nhsImB64moDkp07Tedp1C) BaaS and The Democratisation of Finance --------------------------------------- Banking as a Service could play a crucial role in the democratisation of finance. It is not only a solid opportunity for banks to accelerate their digitisation process but can also prove crucial in their long-term growth strategy. Fintech brands can forge lasting partnerships with banks, creating brand value, and pioneering innovations. With increasing digitisation, more stakeholders, and a platform model, the incorporation of BaaS could herald a new banking age. At [Salt](https://www.salt.pe), where the future of banking meets ease of hands, we couldn’t be more excited to both participate and observe the incoming revolution. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Ultimate Guide to FinTech in Africa Author: Udita Pal Published: 2020-10-09 Tags: fintech, africa, fintech in africa, zambia URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/xTRqTchxiohYVJhO3diZIGjddBF4pF8-Fpngyhp2UoZZXrU52NB8b7DJt5XjDjKA6Z_pD0J6xujhhAirIKb9Euz6QN5sD3LP0XqckRvlHdCAUzSl16g0sPB1c9_ap6reRDBAekEt) The emergence of FinTech has brought with it both challenges and solutions. A continent like Africa, in particular, has presented a curious case in this regard. A 2018 World Bank research revealed that [66 percent](https://www.itnewsafrica.com/2018/12/66-percent-of-sub-saharan-africans-are-listed-as-unbanked-world-bank/) of Sub-Saharan Africans are unbanked. Consequently, financial inclusion has been a major concern. And this is where the power of FinTech came in. The FinTech revolution in Africa in recent years has helped to create opportunities for such financial inclusion as mobile banking services and online wallets allowed many to become part of the financial systems. FinTech in Africa – The Story so Far ------------------------------------ As innovators and entrepreneurs attempt to plug the gaps in the traditional financial and banking systems in Africa, FinTech startups have mushroomed. [Tellimer](https://tellimer.com/article/the-ultimate-guide-to-african-fintech) reports that there are more than 400 active fintech companies across the African continent, nearly 80 percent of which are homegrown. The report also reveals that payments have been the most dominant service domain, owing to a lack of financial inclusion in the formal banking system. Across West Africa, the mobile money sector reach is [13 times greater](https://qz.com/africa/1251004/gsma-mobile-economy-report-west-africa-mobile-money-mobile-adoption/?utm_source=email&utm_medium=quartz-obsession) than local banks.  M-Pesa has been particularly successful and provides an enlightening case study in the evolving dynamics of the FinTech sector. It was started as a service to transfer funds, pay and collect bills and loan payments, etc. – all without the use of cash. The response was phenomenal. By 2016, Kenya had more than 25 million M-Pesa users. Such was the impact that nearly [2 percent of Kenyan households were lifted out of extreme poverty](https://news.mit.edu/2016/mobile-money-kenyans-out-poverty-1208) owing to mobile money services. Consequently, the FinTech sector has been driving growth in the continent and is becoming an important contributor to the GDP.  FinTech Products Offered ------------------------ While there are regional variations within the African continent, payment services have largely constituted the most successful FinTech products. Offerings such as B2B tech support, lending, investments, and insurtech have also gained rapid growth in their customer base.  In terms of regional distribution, Nigeria has made giant leaps and is set to become the [‘FinTech capital of Africa](https://www.penser.co.uk/article/fintech/exploring-africas-emerging-fintech-regional-markets/)’. FDI inflows to Nigeria were nearly 2 billion USD in 2018, and FinTech has been an important source of revenue. But with a large unbanked population still, there is a lot of room for market penetration and ensuring greater financial inclusion. Blockchain technology has been a relatively lesser explored aspect here. Even so, there are platforms that have begun to adopt distributed ledgers to tap the multitude of benefits that come with this technology. ![](https://lh6.googleusercontent.com/CcUcjtaFiqV5Du8l9V7tAbFyTwawq27RnUZ7mlqYlArfDQANeUnyczUyxjiU5zQjCY9yU1I8XoRnCnBeqb4rqw5GDfxXcxVfPuZ9lSVOV-6JlAKhUHPDAF1iXE5MIIsBlv0TClL4)FinTech Products Offered Africa \[Tellimer Research\] | Source: [Tellimer](https://tellimer.com/article/the-ultimate-guide-to-african-fintech) Trends  ------- [AFRICINVEST](https://www.africinvest.com/document/africa-and-the-global-fintech-revolution.pdf), in its report ‘Africa and the Global FinTech Revolution’, has shared insights into the trends and trajectories in the African FinTech sector. Let us have a look at the three major trends that have been observed, * Disruptors Mobile Network operators in Africa have been aggressive in entering the financial sector. There have been partnerships with banks, microfinance companies, and insurance companies. This has resulted in the easy availability of nano-loans, insurance products, and various other services.  * The convergence of banks and mobile network operators The convergence of disruptors with banks has helped in the management of systemic risks, creating synergies, and thereby providing a secure, enhanced experience to consumers. * Dematerialisation of financial services Apart from lowering costs, the dematerialization of financial services has also made transactions more convenient. Consequently, even consumers with access to formal banking have preferred to make the shift to dematerialized means to access these services more efficiently. The Road Ahead -------------- In 2011, internet penetration in Africa was approximately 13.5 percent. But in a matter of eight years, the rate had reached a promising 35.9 percent. The internet revolution, coupled with emerging technologies like big data, artificial intelligence, and the blockchain, is set to create a convergence wherein lies the key to creating a robust, secure, far-reaching, and inclusive FinTech sector that would have the potential to revolutionize Africa’s economy. It’s why we at [Salt](https://www.salt.pe) are excited about the continent, and the potential it holds! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FinTech and Banks: Just a fling or something more? Author: Ankit Parasher Published: 2020-10-05 Tags: fintech, bank, Banking URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/xmrSN3rWWqQWm7XCi4yOxrzxANf8nvHwkRP7r7UGknICdRq63fayxi-DWaVXMln8p24JAot-QtQc-vhlT8JxHFdIMUsGfgpSDc808ORyMsiSHhRQ2Ll5l83FHe3RfQdHyCeIC0-J) Banking and Fintech working in sync and supporting each other is not a new concept. The usage of technology to assist financial services began with the emergence of the first credit cards in the 1950s, internet banking in the 1990s, and for this decade, contactless payments. It has dynamically grown to favor the banking industry, which has the opportunity to leverage fintech for services and improve overall as a sector. However, many skeptics predict that this intermingling of banks and fintech is just a fad, and won’t last for a long time.  Surprisingly, this list of skeptics includes Denise Leonhard, formerly the head of Global Credit Expansion, Business Development, and Strategy at PayPal. [According to her](https://www.forbes.com/sites/ronshevlin/2019/10/14/bank-fintech-partnerships-the-fad-is-over/#df492e67527b), “\[Nobody\] is going to be able to do it alone. To get to the next evolution of payments, it’s going to be really partnership driven. Established firms offer fintechs a level of scale they wouldn’t be able to access otherwise. \[Fintechs\] may have a great unique solution, but they can’t actually scale, and you need scale to drive forward.”  Another skeptic that believes that this partnership between FinTech and Banks might be just a fling after all is Publicis.Sapient’s Dr.Louise Beaumont, who believes that partnerships might not be able to generate the quantum leap banks need to move towards a more customer service-centric environment. [According to her](https://www.forbes.com/sites/ronshevlin/2019/10/14/bank-fintech-partnerships-the-fad-is-over/#df492e67527b), “at best, they may gain a workable solution that squats awkwardly in the existing infrastructure and brand. At worst, banks will fail to deliver any noticeable difference to customers beyond a flurry of press releases.” Moreover, this partnership between banks and fintech has often been termed as a ‘meme’ with a short shelf life.  However, there are plenty of arguments that outweigh the critics of this important movement.  Fintech for a more customer-centric banking sector ================================================== Financial Technology for banking has revolutionized the way consumers and banks interact with each other. It has made financial inclusion more viable and accessible, thanks to the easy to use technology and direct access it provides to customers. Currently, [about 1.7 billion people across the globe do not have bank accounts](https://www.forbes.com/sites/niallmccarthy/2018/06/08/1-7-billion-adults-worldwide-do-not-have-access-to-a-bank-account-infographic/#2eff1c0d4b01). Through innovative techniques and niche technology, fintech is working towards bridging this gap.  ![](https://lh5.googleusercontent.com/4PNWs_5JzBeINFzwTy008xtse76QhL_pyvVShcjdXDqBeJfvszfPxdKDjHG-okAhexDNAP6DKmehclIax9Wf_d1dUGM41wgMuzOXASuzrFOYyUnj1s9QgyrGjj6wb1Ub0LRrX0ax) Fintech is also paving the way for a more consumer-centric and customer-centric banking sector, by providing 24/7 access to services and assistance. For the next few years, channel diversification will be a key driver in the banking industry, with over 90% of banks expecting growth in the usage of mobile apps, higher than any other financial sector. The ‘mobile-first’ approach is pushing this synchronicity between fintech and the banking sector as products and services are now being designed to enhance customer engagement via mobiles.  Other innovations include customer service chatbots, which have been highly efficient to streamline customer interactions, including query resolution, and redirecting them to relevant departments for a better experience.  Fintech for improving the back end of financial services ======================================================== Fintech has assisted the banking sector by improving the efficiency of backend services and continues to do so with new innovations that make processes simpler, faster, and less prone to human errors. Through the use of Artificial Intelligence, fraud detection is already more effective and fast, and real-time alerts of potentially fraudulent transactions can help in avoiding huge losses of both money and customer data. The fintech sector has also made branchless banking possible, reducing a bank’s dependency on its physical infrastructure to function.  Another great example of fintech assisting banks has been the Automated Clearing House (ACH) technology that has made interbank payments more seamless and their processing smoother when it comes to electronic payments. These include bill payments, dividends payments, salary, social security, insurance premiums, and mortgages. Finally, through improved customer service, feedback, and interactions, the back-end is set to benefit from this inflow of data and information to make processes more efficient and coherent.  Not a fling, but a win-win partnership ====================================== The fintech ecosystem and the banking sector have collaborated in the past, and will most likely continue to do so in the future. Both sectors are set to profit from this partnership, as fintech startups provide new and cutting edge products and services, for which banks will serve as a market. Banks will benefit from this as it will improve their processes and overall operations, and hence, it’s a win-win partnership.  Needless to say, this comes with its own set of challenges such as differences in work cultures, clash of leaderships, security and data issues, and more. However, innovation is key, and through constant development and advancement of technology, these technical errors and threats are set to decline in the upcoming years. As for effective collaboration between the two sectors, it’s already underway with processes in place to accommodate differences and make the most of existing and potential growth opportunities. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Emotional Spending: 5 psychological triggers to curb Author: Ankit Parasher Published: 2020-09-29 Tags: emotional spending, online shopping, psychological triggers, shopping URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/j6xUPB6b73trEXAQIqM1b28LzCqD97VIf-Q8v8hjkmZb8lQDu-HtcDpSxyiPDrB30v-WSTGiyZtpVCQiDlcN24yHNC62_b8BdMx_rbhZdfngmKJDP9PcGEQ0vPQaBUDxljxCNBOS) **E****motional Spending in Present Times?**  --------------------------------------------- We’ve all had our days when we’ve ended up buying something obnoxiously stupid or unnecessary solely because of emotional impetus. Emotions come in various forms – happiness, sadness, stress, loneliness. From one perspective, emotional spending may seem like a good solution as it seems much less hazardous than emotional binge eating or consuming alcohol or drugs to counter irresistible emotions. However, this tack is no good. In the long run, it seriously dents your financial future. First, it eats up your savings, which can pose a security problem during a financial emergency. Second, it induces mismanagement leading to stress, probably causing the very same emotional malfunctions we had in the first place.  In the present times, the practice of emotional spending has been on a steady rise, especially because shopping these days has become much easier with a plethora of e-commerce websites offering a variety of items at your doorsteps, and that so quite literally. In addition to this, easy payment options such as credit cards, UPI, instant personal loans, et al also indulge you in online sprees. Since the potential problems relating to emotional spending have already been pointed out, here is a list of 5 psychological triggers that one needs to curb to keep emotional spending in check. 1.  **Instant gratification and Retail therapy**   Mostly in a metropolis, in particular, shopping for materialistic things is deemed an indispensable activity to reward oneself. Whether it is your favorite pair of heels from Steve Madden or the latest MacBook, we are all guilty of treating ourselves with such “gifts”.  Not just that, these shopping sprees stand-in for a barrage of emotions, whether you had a bad day at work, had a fight with your significant other, or simply had finally closed the deal at work that you have been working for, day in and day out. Shopping gives us an instant feeling of accomplishment and happiness during such times.  2. **Panic Buys**  With almost all popular websites popping up with ‘Flash Sale or Today’s Deal’, most consumers are lured by discounts and offers. More often than not, the item is not one we require, let alone desire. We only end up buying it for the euphoria of being one of the very few people to be able to buy that thing at cheap rates.  3. **Boredom**  One of the most common reasons to shop, especially during the COVID-19-enforced lockdown, is the boredom of the daily grind.  With TV and social media handles at our disposal, we indulge in mindless scrolling and come across an array of articles that pique our interest; and we end up frittering away money.  4. **Shoppers’ High**  Akin to the high that runners or gym freaks undergo after a fulfilling run or a workout, an emotional shopper gets the same kick of adrenaline and dopamine at the same time when he/she shops something which they have been eyeing for some time, or even otherwise.  5. **The idea of Savings and Perceived Value of Shopping**  The heart of a shopaholic skips a beat when they see ‘Clearance Sale or 70% Off.’ This is the oldest trick in the retailers’ book when they make sure that you concentrate on how much money you are supposedly saving than the money you are actually spending to buy these items. Mostly, if an article is on a heavy discount, we end up buying it, irrespective of whether we actually even need it or not.  **Ways to Curb Emotional Spending**   ------------------------------------- Having identified the triggers that activate our spending mode, it is now easy to control squandering habits. The following tips can be kept in mind to be on guard: * Identify what triggers and pushes you to shop. Be mindful that this is the first step.  * Find alternatives for releasing emotions – frustration, anger, or stress, such as a new hobby, a sport, or even meditation.  * Set up a buddy system with your best friend to curb this problem can also be very helpful.  * Follow the 24-hour rule i.e, adding something in your cart and leaving it there for 24 hours before ordering it. This will help keep impulse buys in check.  That being said, there is no sure-shot solution to this problem. If you are a psychological buyer, it is mostly decided that you will buy something even before you enter the store or open the website –almost like a knee jerk reaction. This is where specialized tools like [Salt](https://www.salt.pe) come to the rescue, enabling you to track your financial health and gather important insights and reports when talking about ways to curb emotional spending. Check out the [Salt blog](https://salt.pe/blogs/) for more financial insights. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Open Finance Vs. Open Banking Author: Udita Pal Published: 2020-09-23 Tags: Banking, open banking, open finance URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-2-1644049402962-compressed.jpg) When it comes to the banking sector, digitization is taking over rapidly. One significant development was made in this regard in early 2018 through the concept of ‘Open Banking’ which essentially enabled mainstream financial institutions, non-bank financial institutions, and other third-party service providers to get access to sensitive customer data through details of their [online payment accounts](https://www.lexology.com/library/detail.aspx?g=92b33342-e02e-4671-b782-680e5780d75d#:~:text=Whereas%20Open%20Banking%20applies%20to,implement%20similar%20interfaces%20and%20procedures.).  However, this one-sided nature of Open Banking was questioned by many, and thus the concept of Open Finance came into the picture. Open Finance is a much broader phenomenon that grants customers a much wider control over the information that they share with these service providers and is making it more customer-centric and friendly. While this is still in development, let’s see what these concepts actually mean and how they can be beneficial for both, the banking sector and the consumers. What is Open Banking? ===================== Open Banking, also known as ‘open bank data’, is a way of banking that enables third party financial service providers to get open access to transactions, customer banking, and other data from traditional banks and financial institutions. This is done with the use of application programming interfaces, or APIs. It enables the networking of data and accounts across financial institutions, and can be used by customers, financial institutions, third-party services providers. The aforementioned third parties generally include tech startups and online financial service vendors. This concept can help customers share their financial data with financial institutions securely. Open Banking, as a whole, is a unique innovation that is reshaping the entire banking industry.  What is Open Finance? ===================== Open Finance refers to a much broader concept, the foundation for which has been Open Banking. It is a potential financial service that sets its footholds in the financial world in [September 2019](https://www.thepfs.org/news-insight/news/articles/what-is-open-finance/91196#_ftn2), and according to the Financial Conduct Authority, it would extend Open Banking’s key principles to give customers and businesses a wider autonomy and control over their data and its sharing. This data would include important financial information such as mortgages, savings, insurance, investments, pension, and customer credit, to name a few. The reason why Open Finance has been developed is to put the customers’ interest at priority and encourage better competition, developments, and innovations in the financial services field.  From Open Banking to Open Finance ================================= Open Banking was introduced to the world in 2018, and it has effectively paved the way for Open Finance, which is a broader concept that puts customers’ interest and data protection as major priorities. [According to the Financial Conduct Authority (FCA)](https://www.thepfs.org/news-insight/news/articles/what-is-open-finance/91196), Open Finance aims at benefiting the customers by enabling them to engage with the financial products in a superior way and making more informed decisions.  ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/3-1644049447117-compressed.jpg) ### ### How exactly?  In practice, a platform can help them to compare financial products and services in a convenient manner. One such example is the Personal Finance Management (PFM) Dashboard. These dashboards will clearly state the products and services, along with important information and details, and empower customers, giving them a reasonable point of view on why they have chosen the said product or service.  Another advantage of Open Finance would be accurate credit assessments. If customers want to compare and switch from one product to another, the process can be automated, and the renewal system can be made more automatic. Hence, this means increased, and better access to credit and third parties will be able to see the overall cash flow to identify suitable credit. Small and Medium Enterprises (SMEs) are also set to benefit from Open Finance as a whole by having greater control over their overall cash flow.  In conclusion, it is safe to say that Open Banking has laid the foundation for Open Finance, which puts the interest of customers at the core of its functioning, and will help them interact more efficiently and easily with these financial institutions when it comes to digital banking. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Future of Cryptocurrency in SME payments Author: Ankit Parasher Published: 2020-09-18 Tags: Cryptocurrency, SME Payment, SME Paymens URL: https://salt.pe/blog/null Cryptocurrencies and blockchain technology are steadily heading towards the mainstream, with Bitcoin and Ethereum leading as the top two cryptocurrencies. Payments and transactions form an integral part of how societies co-exist and function. They occur every day through direct payments, digital payments, and now, blockchain. Accepting cryptocurrency as a means of payment is now more like accepting foreign currency, and does not require a new form of a payment processor, [according to Hackernoon](https://hackernoon.com/how-can-small-businesses-benefit-from-accepting-cryptocurrency-u03032a8).  ![This image has an empty alt attribute; its file name is beSJNyDVBmq_TyxNJUkHvM3IbYRpQ2CAoUWs9uNB_ACil-FCkUEgpyAml9c8i8o6fV0IEq7gkVxRGyZnRDGCw6Viutz7Kw3m-P3UDJHi9nQZg1Ppdk7LP1A3NA4ZoQ0I5CMY7cAq](https://lh4.googleusercontent.com/beSJNyDVBmq_TyxNJUkHvM3IbYRpQ2CAoUWs9uNB_ACil-FCkUEgpyAml9c8i8o6fV0IEq7gkVxRGyZnRDGCw6Viutz7Kw3m-P3UDJHi9nQZg1Ppdk7LP1A3NA4ZoQ0I5CMY7cAq) A mutually beneficial future for SMEs and cryptocurrencies ========================================================== For Small and Medium Enterprises (SMEs), there are a plethora of benefits that come when you choose to accept crypto payments. [Up to 36% of US SMEs](https://www.businesswire.com/news/home/20200115005482/en/HSB-Survey-Finds-One-Third-Small-Businesses-Accept) are already accepting crypto payments. This means that it is no longer just an idea; it’s becoming a reality that is shaping how we transact.  Newer businesses are also more open to these modes of payments and are adapting willfully to this new paradigm. And why wouldn’t they? The benefits of accepting cryptocurrencies for Small and Medium Enterprises are numerous: #1 Crypto payments will create a new customer base -------------------------------------------------- Cryptocurrencies are growing in popularity, thanks to the constant research and development to make them more relevant. Small and Medium Enterprises and businesses can grow their base exponentially by adding a crypto-based payment system to their list of supported payment methods. This should increase and expand their customer base, bringing in more people who prefer to use this mode of payment.  According to a survey, [30% would prefer the addition of cryptocurrencies](https://irishtechnews.ie/can-cryptocurrency-benefit-small-businesses-and-consumers/?ref=hackernoon.com) such as Bitcoin as a mode of payment while making general purchases. #2 Introducing crypto payments will reduce costs ------------------------------------------------ ![](https://lh6.googleusercontent.com/Oi1Bb5vHCBz69luomxYUBOAiojHEEqACPeCcw96tHg6uA3I9bwrmEV4CyrJArdbKIiZrCiLlgmVefFGucUQwQPiQ3tqetbgsv1l2SsnZPhBw1XidWBxV0P-ulXZUfJR_L5Q7dWW4) **Source:** Logos Network, Medium Transaction costs tend to be on the expensive side for traditional payment mediums. Card companies charge a merchant fee, and cross-border transactions are subject to exchange rate fluctuations and significant margins applied by banks. Since cryptocurrencies are decentralized, the fees are both agnostic of the transaction type, and often significantly lower. This has been a significant development in the sector as upcoming cryptocurrencies, and technological advances focus heavily on the cost-reducing factor of crypto transactions.  The fact that crypto transactions happen faster than traditional bank transfers is a bonus! #3 Superior fraud protection is on the horizon ---------------------------------------------- ![](https://lh4.googleusercontent.com/Kc0PVMXO7dCfW4LUyqf2OZxA_ptF2TJ9Zk2VLy2fyTEaYLeusb4eYpnOUPKD7imx3PvifqdEIkcbYHt-BVKnPd7p_gdHOT1-XA7uvD6vXZw8O54mov1aB0glDOFrzaN40Wk_94fE) When it comes to digital payments, secure payments are a game-changer. The basis of every cryptocurrency is blockchain technology. By design, relying on the blockchain means that transactions are final and [cannot be reversed](https://www.floship.com/bitcoin-payment-method-ecommerce/?ref=hackernoon.com), which implies that transactions cannot be overridden. They’re also practically impossible, or at least, exceedingly challenging, to manipulate. In other words, cryptocurrencies give us secure, valid transactions far more resilient to malicious attacks than the current monetary systems. Another concept deserving of our attention is programmable money – using smart contracts, eliminating manual and administrative work, Agreements, contracts, and transactions can be more secure and automated than ever, and eliminate the possibility of both frauds and chargebacks. In other words – SME payments benefit from lowered costs and increased convenience.  #4 Going global and increasing sales ------------------------------------ Cryptocurrencies’ decentralised nature has a variety of benefits. One of them is that they enable small and medium enterprises to expand and open their doors to international buyers. This allows them to go global and removes the barrier of inaccessibility. The boundaries to a business’ digital assets are non-existent since it has the [potential of being a global currency.](https://www.cnbc.com/2018/06/19/all-global-currencies-will-become-cryptocurrencies-circle-ceo-says.html?ref=hackernoon.com)  Cryptocurrencies, as an industry, is constantly coming up with new ways of bridging geographical gaps, especially in terms of money flow on a global scale. It’s resolving issues such as waiting time for processing international transactions and the frustratingly high costs associated with exchange rates. A transfer halfway across the world, say from the US to Bangladesh, doesn’t have to take two days and double-digit dollars in fees. Instead, it can be done within minutes, at a fraction of the price. It’s obvious what this means for SME payments, and even for large businesses. #5 Better brand visibility -------------------------- ![](https://lh5.googleusercontent.com/5n6gDMACaD0O7jiDQXsNaGjDJxl42PeuvlcCc8PVc2XpZF8Gm4J5Z8XlFAOekDWuJtrwda5J12mFLkAR9O7DleGHRxo5R7BlYi-ng4EcpQMoVYk133b1hwnwJY_i88qHALLEHrLy) **Source:** CoinDiligent Announcing that your business accepts crypto as a means of payment is essentially carving a niche for your brand and making it stand apart from the competition. Cryptocurrencies and blockchains have passionate and interactive communities of users that are keen on buying from and supporting a small and medium enterprise that accepts it as a mode of payment.  It is already a thriving ecosystem, which is only expanding, thanks to [its $300 billion market cap since conception.](https://www.visualcapitalist.com/cryptocurrency-redefining-future-of-finance/) Conclusion ========== While some feel that the switch from traditional payment system payments to crypto might take a while, others argue that the revolution is already here. Although cryptocurrency adoption is not as widespread as bank transfers or credit card payments, it is certainly piquing everyone’s interest, thanks to a large number of advantages it offers against the payment systems already in place. Cryptocurrencies are essentially redefining the future of finance, and SME payments are positioned to be at the centre of this revolution. The integration of payment apps with cryptocurrencies is culminating a symbiotic relationship. The fact that [these applications offer crypto investing and spending](https://www.forbes.com/sites/darrynpollock/2018/11/20/the-future-of-payments-is-here-how-can-crypto-play-its-part/#560c05c32dc3) opens up new avenues for reaching larger strata of the population and penetrating new markets. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Modern Day SME Problems That No One is Solving Author: Ankit Parasher Published: 2020-09-14 Tags: SMEs, SME, SME problems URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/EZ7vTR-S74_fNPlT8OmpXsj6N4RPGnLj6MqvRxINYyAZL9AyE9gHIXRzJhYq_jpE3SgOEjmLnStPb-sh-UMLa29qmXX7CDs7_eAo32rZGLD96JOr3kpmFVG-0jW0G4z7YWRBxwgH) With blurring boundaries and climbing scope, businesses across the globe face similar challenges. Entrepreneurs require a stable and conducive environment to let their SMEs soak in the benefits and prosper. The pandemic and the accompanying turbulence has hugely impacted small and medium scale enterprises resulting in lay-offs and salary-stashing for employees and in some cases, closing down of, a part of or, complete business operations. The need is to look at the problems SMEs face beyond the regular budgetary constraints and government regulations.   Before we delve into the less-talked-about problems faced by SMEs, it is pertinent to talk of SMEs themselves. **An SME can be any non-subsidiary, independent firm that employs fewer than a certain number of employees** (250 employees in the European Union, for example).  Small and medium enterprises form the backbone of any economy that distils itself as a free-market or mixed economy on the world map. The technological and globalised markets have witnessed the reducing importance of the economies of scale, thereby leading to SMEs gaining prominence in the market share. Here are a few insights:   * SMEs account for over 95% of firms in the private sector in [OECD countries](http://www.oecd.org/cfe/leed/1918307.pdf) (the percentage rises to 99.9% in the UK and regions). * They contribute to 60-70% employment generation in economies. * The number of SMEs has grown by 60% since 2000. * Over 45% of the SMEs use e-commerce, * SMEs contribute between 25%-35% of world exports of manufactures and account for a small share of foreign direct investment.  ![](https://lh3.googleusercontent.com/n5cQexla0ctHAlpRk3YvbO8jVUhuO_imXnP_WDGtl-xIe8AKYo-w31McZMtHXdbx59MrOurAY-SLWZnDStrG4tAGmaA10VlN4LT0sQQ5Sh3Uo20dZz-Qx9xkOWcwpCychvCWtswR) Source: [European Commission](https://ec.europa.eu/growth/smes/sme-strategy/performance-review_en) Challenges and Problems Faced by SMEs ------------------------------------- SME problems are unique, and their weaknesses become more prominent in a globally competitive economy. Here are some pointers worth considering: ### Lack of Access to Finance and Cash Flow Management Banks and financial institutions shy away from granting loans to new and small firms given the uncertainty and risk involved. The gestation period and the initial costs involved, put a severe strain on the SMEs to perform on zero or even negative profits. The formalities and red-tapism further choke the growth prospects of SMEs.  **_The_** [**_Global Entrepreneurship Report of 2015-2016_**](http://www.gemconsortium.org/report/49480) **_stated over half of the businesses stopping their proceedings because of lack of profits or financial funding._** Another aspect of smooth working for any organisation is the availability of working capital. Cash Flow and Stock management require some of the most crucial planning decisions and market predictions. Overstocking and overtrading can both prove fatal and lead the firm into debts. Majority of the small firms face trust issues from the investors.    ### Cash Mode vs Electronic Payments Cash still powers the majority of the SMEs across the globe. Most enterprises prefer the cash mode in their B2B and B2C payments despite the rise in digital payments.   _The “_[_Uses of Cash and Electronic Payments”_](https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/557331/Uses_of_Cash_and_Electronic_Payment.pdf) _report stated that nearly 80% of the SMEs do not intend to go cashless in the near future. And 35% of the SMEs revealed that their customers continued to stay away from electronic payments. However, this needs to change quickly._ Liquidity, for any SME, is more significant than profits or return on investments. A healthy cash flow system is pertinent if the operations must run smoothly. But often, due to subpar management, SMEs can end up spending excessively or face unauthorized expenses due to the very nature of cash payments and the tracking challenges they pose. Of course, cash payments are also prone to straight up theft, and also bring additional costs in terms of management, record-keeping and storage. A critical payment, if unpaid, can disrupt the lifecycle of a sound business. If a business fails to keep a track of its receipts and payments, the cash flow required for the day-to-day operations may either become clogged as a historical cost or remain stuck in a fixed asset. _A_ [_recent study_](https://medium.com/lendflo/the-importance-of-cash-flow-for-smes-5de7768694f7) _by U.S. Bank found that 82% of the time, poor cash flow management or poor understanding of cash flow contributed to the failure of a small business._ A shortfall in cash flow results in increased borrowing. And more debt burden in the long run isn’t an encouraging indicator for a successful SME. SMEs would want to rely on a suite of tools, software and the right banking solutions – like [Salt](https://www.salt.pe) – to track and manage the nature and fluctuations in their cash, and cash flow in the short and long run. ### Supply Chain and Client Base Management ![](https://lh4.googleusercontent.com/fVelnxccZ_uq1TgA6vwIHMAcEXeSQKugYJU1XOIj9vmlR1KTo5z6SKYTHe_gg-HDcYa46nb8IzzbjCUNo4SlOpqapFTxI7ewCXtdGH6juHoK3zKZjvZzq410l6scLor4JQymXf-R) **_89% of companies see customer experience as a key factor in driving customer loyalty and retention according to the_** [**_infographic by Invespcro_**](https://www.invespcro.com/blog/customer-acquisition-retention/)**_._** At the end of the day, it is the customers and clients that have to be served. If a product fails to satisfy the customers, the sole purpose of the entire business is lost. SMEs often face the hurdle of diversifying their client base. If the business of an SME relies on a single or a few clients, it is at a greater risk of drowning into losses. Growth has to be accomplished through a portfolio of clients.  _The longer the supply chain, the more scope there is for things to go wrong. A supply chain is only as strong as its weakest link._ The most common cause of failure of SMEs is poor supply chain management. As the business grows, the complexity of operations – whether finance, stock or logistics – grows along. These aspects, if mismanaged, lead to wastage and subsequent loss of cost and efficiency.  ### Company culture and Leadership **_A_** [**_survey of 2,500 SMEs_**](https://www.wbs.ac.uk/news/poor-management-skills-hampering-growth-of-uk-smes/) **_revealed the need to improve upon management and entrepreneurial skills._**  Leadership skills aren’t inherited or inborn but form the essential element to run any business. A lack of it results in faulty strategy and business planning. The management, as well as the leadership, have to be involved in the ‘how’ aspect of strategy and its implementation. Teams and functions can go haywire easily if the objectives aren’t well-wrought into plans and strategies are implemented over a stipulated time period.   SMEs need to build the right culture thriving on honesty, customer service, innovation and respect for each other. A healthy company culture attracts the right kind of talent and provides synergistic growth. But the upkeep of the right aspects in the culture demands a headstrong management. **‘Living by your values’ and ‘culture beats strategy every time’** – these mottos can make or break any organisation.   ### Environment and Government **_Under current U.S. law, the corporate tax rate is currently a whopping 35% on income over $10 million._** Stringent government policies regarding book-keeping, auditing and tax compliance issues are effervescent challenges for smaller firms. Any company operating in a particular country has to comply with the environmental regulations and has to seek several permissions regarding the same. Though good for the environment, the firms suffer at the micro-level and have to let go of good opportunities. SMEs are also required to adhere to the advertising and cyber-security tenets.  A business-conducive environment is an incubator for an SME. For instance, the post-Brexit fall in the value of the pound, Lebanon crisis, and the global pandemic have posed never-seen-before challenges and have caused the firm to rethink their systems and processes.   ### Team Building and Employee productivity  With limited resources, finding the right kind of people becomes a task in itself. Any organisation- whether big or small- consists of all functions including planning, finance, production, accounts and operations. Team building is necessary where each player plays their part. SMEs aren’t a one-man show. Specialisation becomes paramount as the business grows.  **_“If you look after your staff, they’ll look after your customers. It’s that simple.”_** **_~Richard Branson_** The SMEs are also required to invest in training and orientation programmes for the employees and work towards greater employee involvement and productivity. With the SMEs themselves operating under uncertainty and at times, a hostile environment, it becomes difficult for them to guarantee stability of tenure, grievance handling, reward system and career growth to their employees. As such labour turnover and absenteeism remain high, HR costs are further pushed up.  ### Ancillary cost-heads Compliance to employees’ social security measures like Employee Provident Fund, Pension, and gratuity involves additional cost-heads that fall heavily on the already constricted budget of SMEs. Health care costs like group life insurance, health insurance, though essential, make it difficult to manage finances. Besides that, research and development, replacement of obsolete technology, marketing and promotion are larger overheads in the short run that contribute to the growth of the SME in the long run.  It should be remembered here that all these expenses enhance productivity and product quality and reach, and cannot be done away with.  The challenges faced by small and medium scale firms are vast and layered. At the micro level, each SME problem needs to be addressed by the entrepreneurs and management to upholster the fabric of organisation as per the structure of the economy, government and industry. A dynamic SME sector can be achieved expeditiously through fostering public-private partnerships and small-firm networks and clusters on the macro level. When integrated into local systems of productions, SMEs can be more responsive and flexible to customer needs than large firms. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Digital Banking is NOT Digitized Banking: Breaking the myths Author: Ankit Parasher Published: 2020-09-08 Tags: Digital banking, Digital, Digitized banking URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/MdLhF04QZpcAVStGCVaB5RTWEpXdtdRONmcr8UDm3JGnXbX4zk2DG4RXl4PHKtZP7Bbp06rCxSz1EAHfHpP4SrSbhbDg-vQcfgoy7NVzjmhBhzOqruNDuRk9Gt_FORzN-SMJjcsw) In the complex world of banking, things move and evolve rapidly. The banking industry has witnessed some drastic changes and developments over the past few years. About 50 years ago, customers had to be physically present in a bank to withdraw money, transfer funds, or even seek information related to banking or their account. Today, it’d seem unusual if you did any of those things at a branch. While everyone may be a daily user of these digital services, many also likely to confuse digital banking and digitized banking. There is an important distinction between the two. Let’s understand what Digital Banking is first. Introduction to Digital Banking =============================== Digital Banking, [according to FFIEC](https://ithandbook.ffiec.gov/it-booklets/e-banking/introduction/definition-of-e-banking.aspx), can be defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. It includes systems that enable customers to interact with the financial institutions through a digital medium to access accounts, carry out transactions for business, and obtain information on financial products and services.  Digital banking is seamless, quick, and convenient for modern-age customers who want to carry out transfers or seek information instantly and on the go.  Digital Banking Vs. Digitized Banking ===================================== The key difference between digital banking and digitized banking is that while digital banking is a medium, digitization of banking is an essential tool that supports this medium.  **Digital banking**, however, is a process through which the need for traditional banking systems can be eliminated. It assists in overcoming challenges like location barriers faced by banks by making information and services available all over the internet, accessible to the customer anywhere and any time. Digital banking, hence, is the application of tech to each and every banking activity, process, or program, to make it more accessible to a customer, especially in remote locations.  **Digitized banking** refers to the conversion of important data from an analog format to a digital format with the help of technology. It is a tool through which data is made more accessible and helps banks in providing enhanced services and experiences to customers. It is key in reducing human error by providing a consistent flow of data that can vary from consumer behavior, preferences, and other important information that can help retain customers and improve overall loyalty. This is the key difference between Digital Banking and the digitization of banking. Importance of Digitization in Banking ===================================== ![](https://lh4.googleusercontent.com/spJqmDeXiZ8hrLbt-rMBF2I3OIFQjc34kqeh5fNgdqEv-Ph7pai0bI1CVCiBkUiluJ8ICukKkDSglVP_5o7qZgpfC8XJTCLlMucee4xEmm880OadMEXiL020h64tvHV9-eGvGUs7) Digitization is a crucial banking process that utilizes tech to convert analog data to digital data that has better accessibility. It is important due to the following reasons:  * It drastically improves and enhances the overall customer experience. * It allows both financial institutions and users to save a monumental amount of time by providing important information in a digitized and accessible format. * The cost for banks and customers is significantly reduced. * Digital data helps make data-driven, strategic, and marketing decisions beneficial for financial institutions and customers. * It reduces overall human error. Advantages of Digital Banking ============================= ![](https://lh4.googleusercontent.com/_ybb0rUZOJ2Pt6wfnYI6O6v-5q-AOWxch79dHVEOGIq3MjhPoK1m7o6oj0YlpCdGURG7kKrEHlENaCjOnGFBlerkjQC_hqwilVyu5wO3bEJiCmQfmtJLPpW9NF2pnZ7GE_bAh_Tt) Digital Banking has evolved considerably over the past decade, and with the emergence of technologies such as Artificial Intelligence (AI), blockchain tech, big data, etc., it is only getting better. Financial institutions globally have moved beyond mere acknowledgment of its advantages to being actual adopters en masse. Here are a few advantages of digital banking: * Digital banking simplifies the on-boarding process for customers and employees through a mobile or digitized process that is in place thanks to advanced technologies. Uploading important documents can be done simply via a smartphone and be submitted instantly, saving time and effort. * Banking is made accessible anytime and anywhere, as customers can instantly access their accounts via laptops, PCs, or smartphones. Essential services such as customer support channels, co-browsing, and much more in real-time are now available, and extremely effective. * Automation of banking processes helps in significantly reducing costs, both for customers and the banks. It also reduces staff expenses and overhead costs, which help in saving money, and digitization eliminates the need for printing statements, which is beneficial for the environment.  In Conclusion ============= Needless to say, both concepts are essential and mutually support each others’ functions. Both these concepts have higher applicability than traditional banking systems as they utilize emerging technologies to save time, money, and enhance the overall customer experience.  Digital banking, however, has been exploring new frontiers. [Neobanks](https://salt.pe/2020/05/15/neo-banking-reality-behind-the-hype/), based on the idea of entirely digital banking experiences, are rapidly gaining in popularity. [Salt](https://salt.pe/) is one such neobank, without any compromises on traditional banking features and functionality. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## A Responsible Way of Business Banking Author: Ankit Parasher Published: 2020-09-04 Tags: Banking, Business Banking, Business banks URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/RSYDMLf-zZF50Q4Rea9jvFmH7pGBLg_7CUTz8Su2CCzCKrzx9J1yoyoj1_1heCvrfrrArDuTrRIEQUu1JU2-ty2JCke7_gPDsH51BuIZAKYQ0qh786LPSNY-agm_8xCfdMS_YgF3) As is evident from its name, business banking refers to a company’s financial dealings with a bank that typically has a significant business customer base. These include everything from business loans, savings accounts, credit, to checking accounts, among other provisions.  The consistently increasing demand for business banking has only made the sector more competitive and innovative. Banks recognise this trend. According to a [survey by Aite](https://aitegroup.com/report/winning-over-digital-banking-customer), 82% of commercial bankers point to improving the user experience for commercial banking clients as a top priority.  Understanding business banking ------------------------------ Business banking is also referred to as commercial or corporate banking. Banks provide a range of financial services to all kinds of businesses – small, medium, or large corporations. Some of these services are: * **Bank financing** – Provision of short-term and long-term loans for business expansion and to cover significant business expenses. * **Cash management** – Services like automatic transferral of cash from idle checking accounts to interest-bearing accounts for a surplus of cash for its customers. * **Fraud protection** – Prevention of fraud on checking accounts because arising out of multiple people having access. * **Payroll services** – Payroll management software/services for small businesses.  If you’re just starting out as a business or would like to manage your business finances better, here are some tips to bear in mind for maintaining proper business banking etiquette and improving your experience: Business banking etiquette -------------------------- ### #1 Engage in proper financial planning This first step is crucial for all business owners to follow. In cases of minor short-term losses, you need to have funds to fall back on.  Setting the right financial budgets, not overspending, or underspending are crucial elements of a good financial plan. Underestimating your competitors can also lead to poor to no profits, which factors into proper financial planning.  ### #2 Explore your borrowing options With many business banks emerging, it’s important to research the options available to you. Choosing the right bank can make all the difference. The interest rates shouldn’t be the only question to have in mind. Since businesses are all about profits and losses, you need to consider the repayment policies carefully in case of credit. Consider the following factors: * Repayment options * Flexibility of the repayment period * Penalties for defaulting on repayment * Guarantees (collateral for instance) that you need to provide  ### #3 Demand Superior Services It’s a competitive banking world out there. And since it’s a free market, business customers can, and should demand superior services. From quick payments to add-ons like insurance, it’s possible to find business banks that serve your precise needs.  For example, according to a report by Raddon, 72% of small business owners already use or are likely to use expedited payments if the service were offered by their financial institution.  ### #4 Go Mobile Banking is increasingly digital, almost entirely, in many cases. Neobanks are no longer for early adopters. Instead, [neobanks are thriving](https://salt.pe/2020/05/15/neo-banking-reality-behind-the-hype/). The term refers to independent and digital-only entities. Neo banks do not have a physical presence but do deliver on all banking services. Consider [Salt](https://www.salt.pe/).  ### #5 Track all your records and read all documents carefully Lenders are finicky about their customers having all the necessary documentation intact, so make sure you have the proper paperwork/digital paperwork (whichever is applicable). Hire someone to take care of all the records if need be. Don’t just peruse the documents you’re going to sign at a glance, but delve deeper and read every clause with undivided attention. Misunderstandings about the points mentioned in the documents can cost you later. ### #6 Don’t forget to pay your taxes This goes without saying. Having a regular interval to pay your taxes (like the 1st of every month depending on the tax interval in your country/industry) can help you manage finances better. Not paying your taxes because you missed or for any other reason, can be extremely harsh on your finances. Know your tax rates, penalties in your country, tax filing deadlines, among other things, to make sure you pay your taxes on time. ### #7 Develop long term relationships with a trusted bank Explore all the options, choose the right bank for you, and build a long-term relationship with the bank you pick. Switching banks in between is not advisable and can be disadvantageous for you in the sense that you lose consistency in financial management. ### #8 Don’t mix personal and business money Don’t mingle your personal money and your business money. Doing so can affect not only your business but also your personal finance management. You might miss out on some tax deductions, or spend a little more or less if your personal money is involved. It’s always advised to have separate accounts or even respective banks if your business is enormous. This is where business banks come to the rescue.  Above all though, being planned and meticulous can go a long way in helping you make the right banking decisions for your company. At [Salt](https://www.salt.pe/), with its wide range of business banking services, even small enterprises just starting out are in good hands. Salt being a neobank, it’s an extremely neat experience for commercial banking customers. There’s very little room for error. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Traditional Banks and Small Businesses: What went wrong? Author: Udita Pal Published: 2020-08-31 Tags: small business, banks URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/z9ofeUzFmRzsMCtamS6WqR8IPR2TGm_8WH1m16nNdXvk03kWfb34YAtBB_oe_Lgef205GiAjntbaX3jvOy_edVIp9li4XAyy0g_08yEVBNjUX8Pa6xyEht4cjDFJsaBYDd3f957y) Not a long time ago, it used to be easy to approach your local bank with your new business idea and get loans with reasonable terms disbursed in a few days. However, almost 12 years after the infamous financial crash of 2008, banks across the globe remain reluctant to disburse loans to small and micro business enterprises.  Applying for a loan, despite advances in tech and infrastructure, is still a cumbersome process for small and micro businesses, who often depend on loans from banks for growth and development, and in some cases, even survival. Disheartened by the unenthusiastic responses from banks, many small and microbusiness owners are attempting to raise funds via alternate sources, including from personal or business credit cards, or crowdfunding. However, the challenge is that these other sources might sometimes be too costly, ultimately leading to bankruptcy. It’s not the ideal way to manage [small business finances](https://salt.pe/2020/08/20/how-to-manage-your-small-business-finances-better/).  There are multiple reasons why banks would rather not bet on small and micro businesses any more, but the primary factor has to be the impacts felt by the 2008 recession. Banks and governments alike want to avoid a repeat of the crash and have hence made stricter and tighter policies regarding loans and mortgages. Here is a comprehensive list of the major things that went awry in the relationships between banks and small businesses Regulations and policies ------------------------ The 2008 recession has directly caused an increase in the number of rules, regulations and policies with regards to loan disbursals. Banks are expected to be extremely careful about the risk involved in their investments. Usually, small businesses tend to be risky, as compared to large businesses and hence, experience challenges acquiring funding through traditional banks. Though a lot has improved over the last decade, it is [reported](https://www.fundera.com/blog/bank-lending-small-businesses-isnt-recovering) that the number of loans disbursed to small businesses have gone down by 20% from before 2008, and 80% of all bank loans applied by small businesses are now rejected Small loans = Smaller Profits ----------------------------- To maximise profits, and increase the wealth of all stakeholders, banks prefer to fund large business loans as compared to small business loans. The profits earned through loan disbursals tend to go higher, as the loan amount increases. Small businesses tend to seek small business loans, and as a direct result, their requests are usually declined as the banks simply have better alternatives to use their fund for. Lack of collateral ------------------ Most loans require collaterals and securities, as a hedge against the risk of default. In fact, the loan amount disbursed, can directly be linked to the value of the collateral placed with the banks, making acquiring loans of significant value a cumbersome process for small businesses, even if they have collateral for the loan. In case of businesses just starting out, or businesses with minimal fixed assets/investments will have almost no hope for acquiring a bank loan using the traditional sources The downturn in community banking --------------------------------- Historically, It was easier to acquire a loan from a community bank than a big, traditional bank for small businesses. Community banks tend to have a high loan approval rate for small businesses, and often have personal relationships with the local business owners. It’s easier for those bankers to assess creditworthiness without having to rely on algorithms. This is especially the case for new small businesses, as they tend to not have sufficient data for proper credit evaluation, often leading to loan rejections. The last decade has seen the big banks consolidating, and eventually, the number of community banks in existence has gone down significantly. Inconvenience ------------- It’s not just about banks not approving loans anymore. There are a number of major inconveniences motivating small business owners to seek alternatives to traditional banking. 1. The banking process, as a whole, is time-consuming and hasslesome 2. The [high costs of short term loans](https://salt.pe/2020/07/28/the-price-game-behind-short-term-loans/) 3. Lack of proper support for payment gateways, and online integrations 4. High charges levied for annual maintenance 5. Though technology has developed considerably, the banking sector has still not adopted any of the new disruptions, such as blockchain. 6. Ease of use is a term not commonly associated with traditional banks Since the recession of 2008, the relationship between traditional banks and small businesses and freelancers have certainly gone awry. At [Salt](https://salt.pe/), we’re well aware of the various shortcomings and seek to deliver considerable improvements in the banking experience for small businesses. Join our waitlist now! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Essential Guide To Understanding How Bank Transactions Work Author: Ankit Parasher Published: 2020-08-24 Tags: digital transactions, how bank transactions work, transacations, transacations work URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/amDLmWGqwfik4ZfTw1rmQ7QMTtYJ_kX_wpOM5lT0i0cVoXcgV8a6EW8giBxjd_tFZVzhcYBZj76PXmJr7OYftQdbbs9hHQmVtFl-hjWc-LEwV73NJmw3r8KzeCEZmgQiixck4c-Q) Ever wondered how transactions work? When it comes to transactions using paper money, it’s simple: you hand over cold hard cash. But digital transactions are more complex. And they’re worth understanding. According to a Capgemini report, the world will conduct over [726 billion digital transactions in 2020](https://www.capgemini.com/news/digital-payments-volumes-continue-to-rise-globally-as-new-payments-ecosystem-emerges/) – that’s 1.36 million transactions every second. So how does your bank move your money when you write a cheque, or swipe your debit or credit card to make a payment? How do e-commerce sites withdraw money from your account after you consent to a digital transaction?  Here’s an essential guide for understanding how basic transactions work! How banks move your money ========================= ![](https://lh3.googleusercontent.com/RTQDxdcFWWHfsLXxufT6_CchER5DLPc5cvb_7_T6jLHqov34Ss9o6_HVzTohGm9DZc3LXIhWr77LqXt3T7Njusv9Vy8hdBWDiuwq-vD-bgpfLthnau8lg5E_m51Itym_MSR2wpz2) When you write a cheque to make a payment or receive a payment through one, there is movement along two different planes.  Let’s assume Jane is an account holder in Bank A and writes a cheque for $200 for John, who has a bank account in Bank B. Here is how the banks will proceed with moving the money:  * Bank A will notify Bank B that Jane is making a payment to John. This notification is sent through the fastest medium possible: such as a phone call or an automated system specifically developed for this purpose * In parallel, Bank A debits Jane’s account by $200 * In addition to this, Bank A will also mark that it owes $200 to Bank B by marking a -$200 for itself and a +$200 for Bank B * Bank B on the other hand, also marks that Bank A (-$200) owes it $200  * Because both Bank A and Bank B now know that Jane wishes to send $200 to John, and Bank B trusts Bank A to pay the difference sometime later, they will credit John’s account with $200, making the transaction between the two people complete. This is the process of correspondence banking, with the absence of a central bank. A central bank is important as it makes this transfer of money smoother, simpler, and swifter. How money moves with the involvement of a central bank is very straightforward:  * Jane instructs Bank A to send $200 to John * Bank A forwards these instructions to the central bank * Central bank checks whether Bank A has at least $200 in their account. Once confirmed, the central bank takes $200 from Bank A’s account and puts it in Bank B’s account * The central bank then sends a message to Bank B that Jane has paid John $200 * Bank B then gives the $200 to John There are several upsides to this system, such as both the clearing and settlement happening at the same time. This happens with every single payment, one by one. Another advantage is that this works in real-time, which means the money Jane sends will be received by John almost instantly. How Merchant Transactions Work ============================== Merchant services refer to the financial services that make it possible for businesses to accept credit card transactions and other digital transactions through debit cards and mobile payments.  ![](https://lh4.googleusercontent.com/uK4R_lwvLQrk02C6oiba-Od4LVUc4SuGxk5AK74e_dgBU7RFU4ZLMTZYKM0xqTJ9rLqRXqP5FZfsjQeWeZmkVcKK1VZgk97T81Nf7r3hWhmqyUNnpSJ_P0uwCgQIixCLjPOJS292) Merchant payments cover all aspects involved in making these transactions possible, be it hardware or software. Here’s a simple guide to how merchant transactions work:  * The customer pays for goods by swiping their card at the credit card terminal * The terminal (owned by the business) sends these details to the business’ bank, i.e. the acquiring bank to request payment authorisation * The payment processor sends the transaction to the appropriate card association. Some examples are MasterCard and Visa. They then pass the transaction on to the issuer’s or card holder’s bank * The issuing bank (the bank in which the customer has an account) then approves or denies the transaction depending on the status of the account * This approval or denial message then floats back to the business’ credit card terminal  How Electronic Fund Transfers work ================================== ![](https://lh5.googleusercontent.com/BwtZMYs32eeQ3QK9i7br1sV_z69GrCaEqEk2aAnya2yU9GhJBSTv3zEx9SDp9cSdtvUVUsZLiYmYc6KgQeF283t40soAVeYRExAbKtE4-NXnSez1MKJLLBRHBEAtr7YZtfIXH7a6) One of the most contemporary and convenient ways to make a transfer is through an ETF. An electronic fund transfer enables you to move money across an online network, which can be between banks or people, or both. Electronic Fund Transfers have essentially replaced the traditional modes of transaction, such as cash and cheques. Here’s how a basic ETF works:  * An ETF requires two parties to take place: a sender and a receiver.  * The sender commits to sending funds to the receiver  * The payment goes out through an appropriate payment network or platform  * The money is moved from the sender’s account to the receiver’s account  With Electronic Fund Transfers, you can move money faster than through traditional methods such as cheques. You can essentially make an instant payment online or using your phone by performing an ETF.  ![](https://lh5.googleusercontent.com/9cMs7QF3EqzKNWSWhqV1htB4UT110v0D4uMz-3YufZdMiolJzYEFfFRpn_UY9YiMU2y1_VM99NLUwx4KYZxFU-S1bIJvoSXJSFxhGA6qAXAFI2GL-4ecNpIlUvGNMf2YQCvfK0cX) Whatever your preferred mode of transaction may be, it’s worth understanding how transactions work behind the scenes because in every case, transfers involves your money and time. The advancement in tech calls for one to be more vigilant and avoid [online fraud](https://salt.pe/2020/07/14/the-dark-world-of-online-frauds-and-how-to-be-safe/). You must always follow good case practices in terms of protecting passwords, PINS, and important details that are directly associated with your account. Check out our [guide to fintech jargon](https://salt.pe/2020/08/06/fintech-101-a-beginners-guide-to-common-fintech-jargon/) here. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Manage Your Small Business Finances Better Author: Ankit Parasher Published: 2020-08-20 Tags: small business, small business finances URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/S7VsqMILPXMmXG6nJZia5ZOZHOwatk5Al8gT9MyzS1Vy25Pqmd1OwMODKTCe8fNj22-QjRebfBr9PO_q695wWQlNfKpcLe-d7jOQrM8vwopey0PCn5frekI5EyJPCTV-nji2YTwn) Small businesses are essential to any economy’s evolution as they foster local growth, keep the money close to home, support neighborhoods, and help build communities. According to the [World Bank](https://www.worldbank.org/en/topic/smefinance), Small and Medium enterprises represent up to 90% of businesses and more than 50% of employment worldwide! This reiterates the role and importance of small businesses better. It is vital to have a firm grasp over finances and taxes when it comes to any business. However, with small businesses, one can run into several financial challenges that can act as roadblocks to structured, consistent growth. Here are a few ways through which you can manage your small business finances better! 1.  Separate your business account  ![](https://lh5.googleusercontent.com/_PJWbfNoYKtDWVFI4Km3-8fUwvf9jMRFusWKHn_kPQXAIgbI7eqFdh7g29dep16DrDrvHhT04XwC8rosEaOc2hBb2JcsCSq8Lj43Tq_UufKowytI2GvMRBQ8opOGskTaomPHbc-H) Mixing business with your personal life is never a good idea, especially when it comes to money. Merging the two can result in tax-headaches and untraceable losses. Set up a separate business account to keep your revenue and expenditure separate from your personal spending. Doing so will make your profits more scalable and help you keep a proper track of your expenses. 2.  Pay yourself You may be wondering why and how this is important in helping you manage your small business finances better. Small business owners must compensate themselves without overlooking their role in the company for the following reasons: * It’s human psychology – why shouldn’t you pay yourself for all your hard work?  * It helps get a more accurate look at your business’s profits when you’re accounting for all expenses such as your remuneration * On that note, it’s also beneficial for tax purposes. 3.  Set up healthy financial habits ![](https://lh6.googleusercontent.com/cbIK2RRn4bcywgi4QZqohBmErbajQTtcdofhISRSGXa-PkpKJ3JiO0IbyLrxGVaYR1qJd7wP5t1KfC7aGp40KPPHE89OFlWlsQIhiQkeviSx4QrKM42i0xwjBjP9kZ4g9z80fNPz) Healthy financial habits are inherent and personal when it comes to managing small business finances. Whether it’s setting up internal financial protocols such as fixing days in a month to review and update financial information, or simply taking a regular update about the expenditure and revenue, these habits go a long way in protecting your small business’ financial health.  Most importantly, keeping up with your finances can help you dodge fraud and risk. 4.  Effectively manage your books Monitoring your books is a critical practice, and for managing small businesses finances better, you need to set aside a fixed time every month or even every week to review ledgers. Not only will it help you in gaining familiarity with the financial side of your business, but it’ll also give you a keen eye for irregularities. You can hire a bookkeeper or invest in digital accounting software, and even personally verify the reports from both to rule out any foul play or malpractice. 5.  Meet deadlines ![](https://lh4.googleusercontent.com/2ZPNgkLQGnoD_aHc8u7BbVfwVz0BYFsNEcXlTTSUlvrEWREHFRgzXWVBOoHoDaAnwr8oPJEYcGZ8Q9aYqJFXRmwmmDP4IGo5sfT3oy7g2l5TpK6HDXusqxfzdSO0_PyfI1zfWCXe) Ensure you’re up to date with key information involving re-payments and payments, such as accounts payable, credit card payments, and business loan payments. Staying on top of deadlines is crucial when managing small business finances as it helps you avoid late fees or added interest.  It also prevents the lowering of your business credit and your vendor/lender relationships from turning sour. Set timely reminders that will help you track the payments due and make a consistent payment schedule to stay ahead of deadlines, always.  6.  Being frugal is key Frugal here doesn’t imply being a miser by cutting down the employee salaries or compromising on the quality of your product or service. It simply indicates that you must not get tempted by the benefits of business ownership even if you can afford it. Save as much as you can and monitor your finances and spending closely so that you have more flexibility in times of unprecedented difficult months.  7.  Plan ahead ![](https://lh5.googleusercontent.com/pyIPdEiwEKDeyJvxw43To9zWksLqrUPDzTqOukJQA5PCq6k8TxJ-hUCenuRazSNGUMuQghhPA_byUBvKjkSMv2ft1fAmojKAASv6izfIFkA9ICtVnqZ4VMdqDoDvg4M-mZariUNB) When it comes to effectively managing your small business finances in a superior and more scalable way, you must always plan ahead. According to Tina Gosnold, founder of Set Free Bookkeeping, if you’re not looking 10 years forward, you’re behind your competition. Forecast your financial state and set up achievable goals that you want your small business to achieve in the upcoming years. This will give you a hint about your future financial requirements and needs.  Managing small business finances effectively is key if you plan to expand and grow your business. With practice, this process becomes easier and more manageable. As you develop healthy financial habits, you will see prominent gains in the cash flow, and hopefully, be able to expand and grow your business in a structured and scalable manner! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Starting A New Business During Pandemic Author: Ankit Parasher Published: 2020-08-17 Tags: covid-19, New business, Pandemic URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/S022bcgOdh6Jzw5KeArYSxFAPzrFGqLZyXToNZeSsNiw0FNvab55qzisQgq8C3PC1EG-kNhroCHJgA0AcosaNlOKxoOnfZbgHQWKL8qAsE1ypCMdVRKiDNoIXHOmHIZw_E2NE0f-) The COVID-19 pandemic has introduced a conspicuous new normal of the work-from-home culture worldwide. It might sound like a bad idea to start a new business during this time with the economic recession and companies taking a hit. But you _can_ flourish with the right mindset and a clear idea of how you’re going to leverage the situation to your advantage.  For any new business, customers’ expectations are the most crucial factor, and it’s not any different now. Here are some tips on getting started with a new business during a pandemic. Why starting a business now can be a good idea ---------------------------------------------- The idea of starting your business may sound like a challenge best avoided right now in the current climate. But statistics suggest otherwise: * **Recessions mean nothing** – Several [unicorns today were born amidst recessions](https://www.businessinsider.com/successful-companies-started-during-past-us-recessions-2020-4#venmo-also-got-its-start-in-2009-towards-the-end-of-the-great-recession-14). Take Uber, or Airbnb. Or even WhatsApp – all started in the house bubble crash of 2008! * **An abundance of time  –** An uncomfortably large proportion of people spent their day in commutes before COVID. The time spent on the commute pre-COVID can be utilised in much better ways now as people work from their homes. According to the 2012 Global Entrepreneurship Monitor report, [69% of American entrepreneurs started their businesses from home](https://www.inc.com/jana-kasperkevic/us-entrepreneurs-keep-businesses-close-to-home.html#:~:text=According%20to%20the%20report%2C%20an,to%20speak%20of%2C%20says%20Kelley.). Learning new skills required to build your business, spending time brainstorming to grow and improve your new business, are some of the many things you can productively utilise the extra time in hand by. * **High demand for new businesses –** The pandemic has people gravitating towards original and more relevant business sectors, while conservative enterprises are taking a hit. Since the needs are entirely different now, there is a high demand for newer startups working to meet those needs. What to Keep in Mind Before You Start a New Business ---------------------------------------------------- ![](https://lh5.googleusercontent.com/FeEnS3D9lEZyDYcPhuWE025Cs2cxK39of4rG-_RAeq-5ZAy3vW_-IUmma2iTSr-uNqUCWYCOzrHTCyOBwf2O_HSJyM-M7ydGnA6m17-iOIi51Qw3TzeRilcs1Fw6daJ41Il1alj0) While this may be an opportune time to start your own business, don’t put all of your eggs in one basket. Money management and prudent accounting are crucial. Let’s look at some tips that will help your new business cut down on costs and save some extra money wherever possible. ### 1\. Don’t compromise on quality This may seem counterintuitive, as most high-quality products are comparatively more expensive than the cheaper varieties. However, because of the inferior quality of such equipment, you may end up replacing them more often, ultimately losing more money than you’d have otherwise. ### 2\. Go Wholesale / Annual Subscription Plans When purchasing for office supplies, or any goods that you may require for regular usage, it is advisable that you order them in bulk from wholesale vendors to get them at a lower price per unit. This will result in a higher one-time payment; instead of smaller amounts of money over time, ultimately increasing your business expenditure. If you are looking to avail some services, either online or offline, you should look for annual subscription plans, which tend to be much cheaper; examples of such services include web hosting, maintenance, accounting software, etc. ### 3\. Go Digital The time for traditional ways of doing things is coming to an end. Going digital is one surefire way for your new business to save costs, to ensure that your business doesn’t expend more in transitioning to an online platform later.  Going digital means taking your business online and creating a web presence. It also means that you avail services from the internet. For instance, traditional brick and mortar services like banks are cost-ineffective when compared to neo banks like Salt. This is more so the case for small businesses, as explained in detail here. [Covid has certainly changed the fintech world](https://salt.pe/2020/07/18/how-covid-19-will-change-the-fintech-world/). Ideas For Starting A Business During COVID ------------------------------------------ If you unsure which sector you want to begin your entrepreneurial journey with, here are some ideas worthy of your attention, the demand for which seems to be fairly alluring in the near future. 1. **Edutech** has seen a rapid increase in demand, education being one of those services that the market would be unlikely to skip for too long. Online tutoring or crowd learning platforms are great ideas worth exploring. 2. **Health & Wellness** is another obvious choice in the COVID era, as the market decides to keep a keen eye on health and fitness, both due to the general paranoia and the fact that we’re all largely staying at home. Even medical supplies and equipment are areas with substantial potential. 3. **Online Gaming and Streaming** have seen a spike in demand, again, as people continue to stay at home for extended periods. 4. **Digital Marketing** is expected to receive a bulk of advertising focus in 2020 and beyond. There are multiple knowledge sources on the internet that may be critical in your journey of being a successful entrepreneur. Did you know that [26% of entrepreneurs rely on the internet for business advice](https://www.tsheets.com/resources/small-business-report)?  We, at Salt, are happy to share our thoughts. Head over to the [Salt blog](https://salt.pe/blogs/) for more content!  This pandemic has descended us to ground-zero to rekindle our old hobbies and find a new passion. The COVID-19 pandemic is a much-needed refresh button for most of us to get back on track and begin pursuing our passions and make a profitable business out of them. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FinTech in Africa: How Africa is turning into the biggest investment pool Author: Ankit Parasher Published: 2020-08-13 Tags: fintech, africa, emerging market URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/sX1xZ8IVOWrkNzEeq7_QUo5yoiHQlSHA4pnu_DHOpeMchjw_U4K8yNaN5xRQ86sL7xsr5IzTKNeaPlcoc7jGnRiXQwy9FZLNfrQvOVs8PjykbPAMrhXdKE6TiALq4SPJkvrufXlA) Innovation is key when an industry is shaping and structuring itself. Of course, it is often a time-consuming process before it makes way for a whole new business paradigm. This is why one might think that innovation is reserved for booming economies that have the potential to invest, research, and finally evolve on a large scale. However, for Africa, one of the standout attributes of the continent is its ability to ‘leapfrog’ inferior and inefficient versions of various technologies. Let’s take our traditional banking system as an example. There was a shift from bank tellers to Automatic Teller Machines, and from these ATMs to online banking on our personal computers, which ultimately accelerated a shift to digital money.  It takes a gargantuan amount of time, energy, and resources to go from one mainstream adoption to another. It also requires a market that is willing to experiment and consume these new innovations as they are launched and then shifting on to the next new and better thing.  When it comes to developing nations though, they don’t have to pass through these trial and error stages of tech advancements. For example, Kenya has about 37 million mobile phone users, but the number of banks or other basic tech infrastructure such as personal computers pales in comparison.  This is the very reason why there is a unique, scalable opportunity that is turning Africa into the biggest investment pool. Fintech in Africa: Growth Factors  ---------------------------------- Africa’s [fintech](https://salt.pe/2020/08/06/fintech-101-a-beginners-guide-to-common-fintech-jargon/) space has experienced phenomenal growth over the past 10 years. According to a report by Crunchbase, there are over 400 active financial technology companies across Africa as of 2020. Out of these, about 80% are home-grown. These fintech firms have recorded a CAGR of 24% in the last decade. This is due to a variety of favourable factors:  * **Young and growing populations:** As an ecosystem, fintech in Africa ecosystem is flourishing due to suitable demographics that consume the technology that is being launched into the markets.  * **Wide-spread mobile phone access:** It has been estimated that the number of smartphones in Sub-Saharan Africa will reach an astounding [525 million by 2020](http://www.gsmamobileeconomyafrica.com/GSMA_ME_SubSaharanAfrica_Web_Singles.pdf). * **Poor financial inclusion:** Low levels of [financial inclusion](https://salt.pe/2020/07/13/global-financial-inclusion-trends/) in the formal banking systems throughout the entire continent has driven the growth of fintech in Africa, with companies incentivised to tackle this situation and offer solutions. Diverse Product Offerings ------------------------- As there is very little financial inclusion in the formal banking system across the continent, payment solution providers dominate the market. However, several segments have the potential to expand significantly in the upcoming years. They are diverse in nature and can be classified into 7 major categories:  * **Payments** This segment dominates the current market scenario due to a large unbanked population, and a subsequent spike in demand for services that trigger and boost financial inclusion. Digital payments are the most active and developed segment and account for [about 40% of all the fintech products in Africa.](https://tellimer.com/article/the-ultimate-guide-to-african-fintech) * **Lending** Ranking second on adoption, [lending holds about 24% of the market](https://tellimer.com/article/the-ultimate-guide-to-african-fintech). Fintech companies offer niche solutions that serve as efficient alternatives compared to traditional banking systems. They use technology for customer profiling, assign and grant loans quickly, and enable repayments more conveniently.  * **Remittances** Remittances are one of the most important product offerings on the continent. Low-income workers often turn to this alternative to avoid high transaction costs and the risk of physical transportation.  * **Investing** Investment Technology or Investech companies are growing as they offer attractive financial management services such as managing a customer’s finances based on pre-defined guidelines. They also help investors grow their finances and enable them to invest in equity market instruments such as stocks, index funds, and ETFs. * **Insurance** Insurtech or Insurance technology offers insurance for various categories such as vehicles, health, and even life, in simplified, understandable, and innovative ways. One example is Pineapple in South Africa, a fintech company that provides peer-to-peer insurance solutions, and returns all unused premiums at the end of each year. This makes the offerings of traditional companies pale in comparison, and paves the way for a majority of the population to cherish the added benefits provided by these companies. * **Blockchain**  Financial exchange platforms are quickly shifting to distributed ledgers, or blockchains, which provide authentic and incorruptible records of transactions. This helps in creating trust between the parties, especially in the absence of a central intermediary. It also eliminates the need for currency exchange during cross-border transactions, and the low transaction costs are only an added bonus! * **Specialised financial technology** These offer specific digital financial solutions for unique markets. Some notable categories include Agritech (Agriculture technology) and Proptech (Property technology). Fintech in Africa: Success Factors ---------------------------------- ![](https://lh6.googleusercontent.com/SIc2T4aoK_2EOB6yr7iPUt7WmWz-omCZ9YzCOzvX1DGnmcTfMaqynt7riVxnNgKCZJbKV5RrS2UYPl0uzgL_8qa39D6jVyJweRzN4LhbS7s6lpLE9aD5jdhk0M9Gs8u-awp5-pAD) (Source: Central bank publications, Irrational Innovations) [](https://cdn.tellimer.com/O1zMFqUvQTZtAfRbha9YNgKtNMipbWnLX1II3Ae5.png) The African fintech scenario is dominated by four major countries: Egypt, Nigeria, Kenya, and South Africa. Together, these centres are responsible for about [70% of the continent’s fintech activities](https://tellimer.com/article/africas-fintech-hubs-the-search-for-tomorrows) related to innovation and strategic partnerships. In 2019, these four countries [attracted 85% of the total investment capital](https://tellimer.com/article/africas-fintech-hubs-the-search-for-tomorrows) deployed across Africa. Needless to say, they are the fintech powerhouses of the continent. This is due to a variety of success factors, which are:  * Development of technology that lowers operating costs * Entering strategic partnerships that are beneficial for native fintech companies * Constantly innovating products that attract a broad customer base to try out these products * Integration with central payment systems  What the future holds --------------------- ![](https://lh3.googleusercontent.com/f9W2JSY7fhYQUfWMEcSOOfsF1XxwEb4CYvGdT6UxPhW4h33MDKEJAs8Ojcg52-17ypbxxX6gR721fCnAEISrFmm0UtnMtgTwsdXWu77KjcAyGyyrlF_zjbTtQ9umV7iJA86P5vlr) Some of the popular trends that are turning fintech in Africa into the world’s biggest investment pool are: * **Widening or upscaling product suite:** Due to a large number of smartphone users in the continent, it is becoming easier for fintech companies to collect data that gives them valuable insights. It helps them in coming up with ways for sophisticated consumer profiling, which ensures that their resources are efficiently targeted.  * **Expanding geographically:** One of the factors providing impressive momentum to the fintech wave in Africa is that more and more Africans are connecting to the internet through smartphones. Companies such as Google are also helping push this internet revolution across the continent. * **Regulatory Oversight:** As fintech businesses become more mainstream, regulatory oversight is likely to increase. This is essential for areas such as cybersecurity and consumer protection. [Kenya has already passed a series of EU-inspired data protection laws](https://qz.com/africa/1746202/kenya-has-passed-new-data-protection-laws-in-compliance-with-gdpr/?utm_source=email&utm_medium=quartz-obsession), keeping the concerns around data privacy and ownership in mind.  As the credibility of the industry grows in the upcoming future, appropriate regulations could accelerate growth.  African countries continue to attract considerable interest from investors across the globe, and the upcoming decade shows a lot of promise and potential for the continent’s fintech industry. Lucrative deals in niche markets and untapped sectors, the announcement of new IPOs, and various tech summits in the continent are only some of the things to expect in the upcoming future. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## FinTech 101: A Beginner’s Guide to Common Fintech Jargon Author: Ankit Parasher Published: 2020-08-06 Tags: fintech, Fintech jargon URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/AaHGOWdK-b_W78rpw9WRvUOdrGlbTjhK0biDD7HF3i-pxUHv0j881sl6gejIADLMM2hp2DbRTjQzIm9ekGqKEoTCUptaSUaK8sqoPpzdtoOjQ7tWYherNgNAsmqkR7StTYBwRSlx) The fintech industry has been generating a fair share of buzz for many years now, and shows no signs of slowing down. Global, the fintech sector attracted investments of about $137.5 billion invested in 2019. In [India, investments in the fintech sector](https://www.financialexpress.com/industry/fintech-investments-nearly-double-to-3-7-billion-in-2019/1874684/) doubled within a year to $3.7 billion in 2019. The industry continues to pioneer some highly innovative solutions with real world applications, opening up access to credit, serving the unbanked, democratising investment markets, and more. We continue to see a spike in the popularity of the fintech sector, both customers and professionals.  But for a novice, the associated jargon and other industry-relevant buzzwords around the fintech sector might sound perplexing and deter them from a better understanding of the industry. Here is a list of commonly used jargon of the fintech industry with its meaning. Let’s start with what is fintech? ### 1\. FinTech (Financial Technology) Unless you’ve somehow overlooked the term itself – fintech stands for financial technology. It refers to the convergence of innovative financial solutions and tech applications that aims to upgrade traditional financial methodologies and services. In other words – fintech is recognised as an emerging industry that uses tech to improve activities in finance. For example, using Artificial Intelligence to generate a profile of an individual in a bid to offer personalized financial services like credit, insurance, etc, would be an activity from the fintech realm. ### 2\. Digital KYC KYC is an acronym for Know your client/customer. It is a mandatory process to ensure businesses make an effort to identify and verify their clients, and ensure that they are actually who they claim to be. This is undertaken to ensure that the customer is anti-bribery compliant and, broadly, to cater to the anti-money laundering (AML) policy. In the modern fintech-driven world, and of course, assisted by the post-pandemic era, a digital KYC is a concept that seeks to complete this process via technology – such as video calls or other biometric authentications. ### 3\. IoT IoT is an acronym for Internet of Things. The Internet of things is an interrelated system of devices and machines provided with unique identifiers, that can transfer real-time data over a network to each other, without requiring a human-to-human or human-to-computer interaction. IoT devices enable a user to interact with other devices that usually would not have an internet connection, but those that still communicate with the network independent of human interference.  For example, the fintech sector is relying on IoT devices to offer automotive insurance based on car mileage and driving behavior. ### 4\. Neo banks Neo banks are the new generation of banks that offer the traditional financial-banking services like accounts, credits and payments to their customers entirely digitally. They do not have a physical brick-and-mortar branch of their own, often allowing for the benefits of lower costs that they pass on to their customers.  ### 5\. Blockchain The blockchain is a type of data structure, cryptographically secured with each entry being linked to a successive one (called _blocks_), containing a timestamp and transaction data of the previous block. Its cryptographic security ensures it is tamper-proof. This is critical, since a blockchain network is a distributed ledger with no central governing authority. Instead, it’s a a peer-to-peer network for a variety of transactions. Its biggest application remains cryptocurrencies, particularly Bitcoin. ### 6\. Cryptocurrency & Bitcoin A cryptocurrency is a virtual or digital currency that is cryptographically secured and works as a medium of exchange. Cryptography makes counterfeiting the cryptocurrency and practice of double-spending nearly impossible. Most cryptocurrencies are decentralized networks based on blockchain technology that keeps a record of the currency ownership,  transactions, and specifies guidelines for additional coin generation.  **Bitcoin** is the pioneer of the modern-day cryptocurrencies and is a decentralized digital currency based on blockchain tech. It uses a proof-of-work consensus algorithm at its core. There is no central authority governing the transactions. ### 7\. Collaborative Finance Collaborative finance is a rapidly involving financial category that enables transactions to take place between individuals independent of a financial intermediary. Collaborative finance promotes peer-to-peer dealings and reduces the cost of financial services accessed.  For example, ROSCA or Rotating Savings and Credit Association is a group of individuals who periodically meet to save and borrow together. ### 8\. Equity crowdfunding Equity crowdfunding is the process whereby individuals invest through a website in a company that is not yet listed on a stock exchange and receive back shares in the firm making them partial owners of the company. It’s similar to an ICO – Initial Coin Offering – prevalent amongst cryptocurrencies. ![](https://lh6.googleusercontent.com/_Hcp0TYHGTfy50tsLCwK9Pi7SyGjzTntdGI0ajCpBVMV9vKkeJVt-qGi-0nkeE0fmoKTUwSjJNebUf4zDjtHa28WfQIlZXrPk9Y00lL1EHa7tMhfpsXfN4CJAnndWINByESf6MzL) ### 9\. Insurtech Insurtech is an abbreviated name for Insurance technology that aims to upgrade our existing insurance industry modelss using tech advancements. Some of its potential applications involve innovative tools that offer a modernized insurance experience to the customers. Insurtech is an emerging industry attracting billions of investments worldwide.  For example, Cyberwrite is leading cyber insurance that calculates cyber-attack risk and successive financial losses to the company, empowering the business owners to purchase better insurance policies. ### 10\. Underwriting Underwriting is the process by which financial institutions, such as banks, insurance companies and investment houses, guarantee payment in case of damage or financial loss and accept the financial risk for liability arising from such guarantee for a fee. ### 11\. UPI UPI is an acronym for Unified Payments Interface – an instant real-time payment system for phones in India. It allows for the transfers of funds between two bank accounts. UPI has been developed by the National Payments Corporation of India for facilitating inter-bank transactions, and its interface is regulated by the Reserve Bank of India. ### 12\. Financial Inclusion Financial inclusion also known as inclusive finance, refers to efforts to make fiscal services and products like banking, loan, equity, and insurance products, available and affordable to all individuals and businesses. It is the process to remove obstructions and offer opportunities to everyone regardless of their personal net worth or company size to access services that have been long denied or were difficult to access. ### 13\. Fractional Ownership Fractional ownership is a method by which unrelated parties can hold a percentage of ownership of an asset. This shifts the entitlement to right to use, share of the income and reduced rate of the asset to fractional owners along with any risk and payment of taxes associated with the asset. Usually fractional ownership comes into play during buying of high-value tangible assets via tools like the blockchain – such as a real estate piece such as a resort, or high-cost commodity like yacht or a jet. ### 14\. Regtech Regtech, abbreviated for regulatory technology, is an emerging technology that uses software tools to manage regulatory processes within the financial industry. It helps financial services institutions to comply with regulations effectively and economically. The Regtech industry is growing in sectors that require strict compliance of associated bodies.  ### 15\. Robo-Advice Robo-advice is financial advice generated and shared via automated tools or devices that work on a set mathematical rules or algorithms. Apart from the advice, robo-advisors can manage investments, and invest their clients money in portfolios made up of low-cost exchange-traded funds. The fintech sector continues to expand rapidly. Several traditional financial services and products have already been enhanced and improved rapidly thanks to innovation from the sector. What do you think is in store next? --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Price Game Behind Short Term Loans Author: Udita Pal Published: 2020-07-28 Tags: Banking, Short term loan URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/qGyghz62w8MkKMvt_Sh9Jw1ZI9Ovwfz3QUO01RREIYLbklT9RI_ezW1CvKoU4uMQcyC9c2Oi52Vdb0Qx8mguSA1PsYoCKnvJ4oHKgBuPu2XOlTV9dfdl17HAO6lItDJvpyXNRFKL) The COVID-19 led tide has halted entire economies. Not surprisingly, this has led to a sudden surge in demand for loans – particularly short term loans. Short term loans generally let you borrow and repay within a year of availing the loan. It’s not a typical bank loan as the borrowing amount is usually low and the loan terms are also more flexible.  These loans are best used to finance short-term, temporary liquidity crunch or when there is a sudden big expense such as a home repair or a major car repair. They are also helpful for people who need money to tide over tough times until their next paycheque and hence, need flexible payback options. Usually, short term loans are unsecured, which means that you don’t have to borrow against collateral. Read this blog to dig a bit deeper into the utility of short term loans and why they are preferred over some other borrowing options.  Types of Short Term Loans ------------------------- Broadly, short term loans can be classified as secured short-term personal loans and unsecured short term loans. In a secured loan, you have to register one of your assets as collateral security against the loan amount that you borrow and in the latter, no collateral security is needed. Keeping aside all other factors, the interest rate for the secured short-term personal loan is lower than other loan types.  The most common type of unsecured loan is a payday loan. These short term loans are emergency loans that are relatively easy to avail. There is no other short-term loan option that spells financial ease like a payday loan. Almost always, every step from application to documentation and disbursal is online and hassle-free. But do make sure you check and compare options and also your eligibility before applying.  How are they different from long term loans? -------------------------------------------- ### 1\. Basis of payment A general rule of thumb is that long-term loans allow you to borrow more and hence, have a longer repayment schedule, and short-term can be repaid within months. In the latter case, there is less time for interest to accumulate, so you end up paying less in the long run. ### 2\. Policies It is easier to receive a short-term loan as lenders do not have policies and eligibility criteria as strict as that for long-term loans.  This is also because the secured long-term loans have a mortgage loan that needs a thorough and sometimes demanding risk analysis process before loan approval. They require more paperwork and have longer TAT.  On the contrary, short term loans can be availed in a day. ### 3\. Flexibility Short term loans come with various options which make them as flexible as other loan options. Borrowers can also opt for revolving credit and get money as per their needs. This helps reduce the interest burden. However, most long-term loan providers generally give fixed and not floating interest rate options. ### 4\. Credit scores Long-term loans are difficult to avail by the masses as they require a high credit score to get assurance about the borrower’s long term repayment capacity. Whereas, a short-term loan can be availed even at lower credit scores. What makes them preferable over the other available options? ------------------------------------------------------------ ### 1\. Interest rates Most short term loans need to be paid off within a year, so there are lower total interest payments. Compared to long term loans, the amount of interest paid is significantly less.  Short term loans generally have higher flexible interest rate options that vary with the loan amount and tenure. ### 2\. Low risks Short term loans are less risky than long-term loans because they have a shorter maturity date. Hence, the borrower’s ability to repay the loan is less likely to change significantly over such a short time period.  This is also why the time taken for underwriting the loan is shorter and funds get disbursed quickly. ### 3\. Speedy approval Because these loans are considered less risky, speedy approval within a day is possible. It’s even the norm. Short term loans can often be lifesavers for smaller businesses or individuals who face a sudden cash crunch.  The requirements for such loans are easier to fulfill, also because these loans are usually for relatively smaller amounts, as compared to the long term loans. Conclusion ---------- Even top bankers offer short term loans. These loans are disbursed faster and have a short and simple application process. The repayments are typically done by deducting a pre-decided amount from the borrower’s bank account, using the continuous payment authority.  If you’re still wondering about which loan type to choose from, try to find a lender that can customize a loan after evaluating your needs. Then make your decision basis credit market,  ease of availing credit the cost of doing so, long term profitability, and the collateral requirements. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How COVID-19 will Change the FinTech World Author: Ankit Parasher Published: 2020-07-18 Tags: fintech, covid-19, change URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/FX01pM73G_UatWpKRC7rvrAo2GdHKyB9qq3Bu0vGlnk6BV94QGKJv_MifVmRDRhzcZf_0uK_8Q10ukVbVfj2T0ta1D_zjrptE5xugNnU_7k6GPMeNctIAaPYb41ZPaIIWi8Y1vT-) Changing trends in the FinTech world The emergence of financial technology in the 21st century has been a turning point in how we deliver our financial services and how we lay down the road-map towards greater financial inclusion. The scope of fintech services now ranges from traditional banking services such as loans to the growth of cryptocurrencies and digital transactions. In 2020, COVID-19 has had an extremely disruptive economic impact. In its [World Outlook Report June 2020 update](https://www.imf.org/en/Publications/WEO/Issues/2020/06/24/WEOUpdateJune2020), ‘A Crisis Like No Other, An Uncertain Recovery’, the IMF has predicted a  further economic turn-down and placed importance on liquidity assistance as one of the measures for recovery.  The Hard Facts -------------- While talking about recovery and fiscal stimulus, it is important to address one of the biggest challenges that lie in our way – financial inclusion. Fintech aims to provide cheaper and convenient financial services to all and has the potential to be an integral part of the road ahead. But there are some hard facts that we need to consider while talking about technological advancement in the financial world.  * The [Pew Research Centre](https://www.pewresearch.org/internet/2019/03/07/use-of-smartphones-and-social-media-is-common-across-most-emerging-economies/) has revealed major statistics in its studies on mobile connectivity in emerging economies. While the majority of adults own a mobile phone, there are still a non-insignificant number of adults in emerging economies who do not own one. Mobile phone ownership also varies according to age, gender, and education. As a consequence, women and marginalized groups are less likely to have access to digital services. In this case, there is a pressing need to bring about advancements in fintech as well as policy interventions to make fintech services more inclusive. ![](https://lh5.googleusercontent.com/gUoBe-ZaSDYOWcI0h9hlAijCbnh0x0XdaJBWONy_ZB-pHMOLfFP5Yk_DZZTyFIOy_a6j4tPVrPx8ZgXX1zGs70o-8V3lmCnaE-qMm5qJzEC9IYKuoRf9PZjjbs9ycmTeMVlVhBeZ) Mobile Phone Owners \[From [PEW RESEARCH CENTRE](https://www.pewresearch.org/internet/2019/03/07/use-of-smartphones-and-social-media-is-common-across-most-emerging-economies/)\] Another aspect here is that while the majority of adults may own mobile phones, not all of them have access to smartphones. Basic phones are those that cannot connect to the internet while feature phones can connect to the internet but typically do not support smartphone apps. Taking these distinctions into consideration, we find that only in many emerging economies – less than half of adults use smartphones. What does this mean for the fintech world that has been trying to increase its base? ![](https://lh6.googleusercontent.com/Ay-dbtWIm06ia_oa5nEusDNCG8NHCLf3Hm4kv1WGd5cxXtMtmPjv4KHkMp4ioyhxT8Uf4ruCnHBJzez5_QPLDwhdFJ5926zG_iJtSh5slQbfYN9B40RH-SRACBkUbNCtMTsIvNuo) From PEW RESEARCH CENTRE * This brings us to yet another challenge. Even as we understand the need to ensure access to smartphones and internet connectivity, the need for digital and financial literacy also requires to be addressed.  * Cybersecurity and online frauds are another crucial focal point for the fintech world. If we are to aim for greater inclusion then it is necessary to build safe and secure services so that people may have faith in digital financial services.  * As far as the development of blockchain and cryptocurrencies is concerned, there is a need to understand and develop legal frameworks.  Predictions ----------- After a successful past decade for fintech, many experts and research companies have made predictions regarding recent [trends](https://salt.pe/2020/05/01/top-11-fintech-trends-that-are-changing-banking/) and what the future might look like. Will there be a significant change in the post-pandemic world? It seems so. * [KPMG](https://home.kpmg/xx/en/home/campaigns/2020/02/pulse-of-fintech-h2-19-top-10-predictions-for-2020.html) has predicted bigger deals, product expansion, even to diverse locations, and cybersecurity and digital identity management in its Pulse of Fintech H2’19 report. * [Sergey Balasanyan](https://www.forbes.at/artikel/my-seven-predictions-the-future-of-banking-and-fintech.html), the co-founder of Longevity Bank, has predicted that the coming years will see an integration of health tech and fintech. These platforms will make use of Artificial Intelligence and data science to provide integrated and redesigned financial and well-being marketplaces. * At the [World Forum Disrupt’s Strategy and Innovation Summit](https://sifted.eu/articles/8-predictions-fintech/), one of the predictions was that bank profits will become increasingly squeezed. This is mainly because fintech companies are presenting a challenge as they cherry-pick different areas to specialize in. As customers become wiser, bank profits might shrink. The Issues and How to Counter Them ---------------------------------- [Pete Watson](https://www.fintechmagazine.com/top10/top-10-ways-fintechs-can-find-positivity-amidst-covid-19/an-opportunity-for-us-to-re-think-our-working-practices), CEO of Atlas Cloud, has said that there is ‘an opportunity for us to rethink our working practices.’ Fintech companies not only need to reconsider working practices but also need to look for solutions for the vulnerabilities in the system. We need to leverage mobile banking and take steps towards a cashless economy.  Needless to say, the post-lockdown world is going to be significantly different from what we have known. As social distancing becomes part of our everyday lives, the need to have a good system in place to enable contactless banking and other financial services for all is higher than ever.  Interoperability is yet to be achieved and innovative players in the fintech industry will need to step up to resolve this bottleneck. The use of blockchain technology could be a potential solution to this. In a post-COVID world, the fintech sector must perform its role in expanding its services to all. Conclusion ---------- While COVID-19 has exposed the vulnerabilities in our system, it is crucial to step up and address the underlying issues. For the fintech world, the aim is not only to be accessible to a wider population to deliver existing banking services but also to innovate and deliver new and emerging services to all. Cyber-security, seamless services, user-friendly interfaces and lower costs are primary goals that the fintech sector needs to collectively achieve. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## The Dark World of Online Frauds And How To Be Safe Author: Ankit Parasher Published: 2020-07-14 Tags: Online Frauds URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/IhLrFCyVIOHf7jL5SLv_OKJwN3nX5aGUgisdB_tVt5pT4CzAR1sSu1TKzbpL2MsM3PtgJRCaJDT2Zb2h9QMbtBmPrPtIs9UY7U07-peGMwnYeCCnXqoDRy4UhAQO4e-1Be9OltrA) Over US$42 billion was lost to fraud and economic crime in 2019, [according to PwC](https://www.pwc.com/gx/en/services/advisory/forensics/economic-crime-survey.html). In the UK alone, KPMG says a total of £1.2 billion was stolen by criminals committing fraud last year, while a total of £1.66 billion of unauthorised fraud was prevented by the banking and finance industry in 2018. As per data from the South African Banking Risk Information Centre ([SABRIC](https://www.sabric.co.za/media-and-news/press-releases/sabric-annual-crime-stats-2018/))’s 8 months in 2018, internet banking fraud now makes up 55% of all fraud occurring through banks.  These numbers are alarming. And clearly, their geography-agnostic. You may be doing everything right but if you look at loss data for banks, the number of thefts victimizing customers, the unimaginable may happen to you too. The online world is overflowing with spam, scams, and identity frauds. As a result, it’s more important than ever to know about the criminal environment. Here is a look at online frauds and ways to be safe from them. ![](https://lh6.googleusercontent.com/WEgw7gd_OE6tfhBhzkdW38IVFfnbU8JcX2nV2WhK1PmgnH3G44z80wybIMHPEuClfAcV0QeRev0UpOWD3pWqFGG8j0HX4KGqhDiksOmGWRQHa5UnnJ2Ra4jq2NPStYrUQTyF81sH) 1\. Phishing & Mobile Fraud --------------------------- These account for communication and transactions initiated via spam emails or social networks. They may create urgency with emotional content or ask you to fill a form. Mobile frauds are usually executed via third-party apps and smishing (through text messages). They may lead to data duplication, deletion, or transferring your vulnerable data to other devices. You can prevent these by checking your bank statements regularly and limiting TPTs. Never carry any unnecessary personal information on your phone or wallet. Do not access sensitive personal data on public WiFi networks. Create complicated passwords and change them frequently. Last but not the least, don’t share passwords and other details such as card numbers with anyone. 2\. Occupational Fraud ---------------------- The pandemic has led to more innovation even in the criminal world. [Scammers in South Africa](https://www.straitstimes.com/world/africa/scammers-use-coronavirus-to-trick-fearful-south-africans) have been visiting several homes to “recall” the banknotes and coins because they are supposedly “contaminated with the coronavirus”. Additionally, the scammers are also providing receipts for the “clean” cash, which of course is never given. While Cambridge Analytica may have harvested your personal data, many others may be using social media to impersonate someone else to steal your data and money. Sharing data for better financial experiences ([open banking](https://salt.pe/2020/07/05/what-is-open-banking-and-why-should-i-care/)) is one thing. Losing it to others for potential fraud is entirely different. Beware and always verify and validate the information from trusted sources.  3\. Malware ----------- Ever heard of a Trojan or key-logger? Online frauds come in many colors. One such is the greeting card scam where malicious hackers try to inject malware and harvest your data. Clicking such links may lead to malicious software being downloaded and installed on your OS and launch pop-ups with ads, unexpected windows all over the screen. Your device may become one of the bots in a larger network and start sending private data and confidential financial information to a fraudulent server controlled by IT criminals. How To Be Safe -------------- Follow alerts from regulators, providers of financial services and consumer protection agencies. Read consumer complaint mechanisms for better action, not only in the country but across borders. In 2020, perhaps the most important action that you can take is to be wary of unverified COVID-19 or similar websites or applications that ask for your personal data. Choose websites with “https” in their URL as they generally have more robust security and authentication policies in place to avoid scams. With the dawn of machine learning & AI, fraud prevention & investigation should become more responsive. It should be capable of spotting abnormal patterns and links that humans are not able to identify. Neo banks are also using automated flagging, AI/ML- assisted decision making for verifying customer identity and transaction patterns, and providing better digital onboarding with adaptable security measures.  Conclusion ---------- Online banking has been inching closer to near 100% adoption in many regions. Hence, it stands to reason that there is also more crime in this sector. Fraud orchestration to help silos sing is the new rage for fraud management. There is a need for the authorities to respond promptly to better protect consumers and for consumers also to be vigilant. Always remember the golden mantra, if it sounds too good to be true, it probably isn’t. So don’t fall for it! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Global Financial Inclusion Trends Author: Ankit Parasher Published: 2020-07-13 Tags: finance, Personal Finance, money, economy, africa, financial inclusion URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/mn1_ekwSntdUt-H8BI3WVLNpvEEhN0siMsQFhZx-tl-2EjOOoTn_c7_odazZMYPeA_LxfgdQpqQcTTvHK5N25AigMI2tQMFUBaY9KbGeVHFOd_VqFr4uqsIoLk6YroBQGCznutW9) At its very core, financial inclusion is a means to an end. The idea presents both opportunities and challenges in furthering the reach of the formal financial system and catalyzing market development for the long-term. As per the World Bank’s triennially released [Global Findex Database of 2018](https://globalfindex.worldbank.org/sites/globalfindex/files/2018-04/2017%20Findex%20full%20report_0.pdf), approximately one-third of all adults globally (i.e., close to 1.7 billion) remained unbanked. Most of these are people living in poor households in rural areas or those who are not in the workforce.  ![](https://lh4.googleusercontent.com/Nj3OOn_t9M8e4_JX2UUGqOBajntILaNiNUtRg66dm-cm8i0OUkPn7qdF6jLRRDo9y6grs6aMGSZF7TDmIqYq2EQZOMDIS5OJAv3LnsM73Ewte_pqFhqCtmyG0LtTD__6VrqdUBfP) Scan the United Nation’17 SDGs and you’ll find financial inclusion as an enabler and target of eight of the seventeen other developmental goals for 2030. There is a rising trend in digitally-led financial inclusion especially in Africa and Asia. The front runners are Ghana, Kenya, and Uganda. This is also evident from the IMF’s [index of digital financial inclusion](https://www.imf.org/en/Publications/Departmental-Papers-Policy-Papers/Issues/2020/06/29/The-Promise-of-Fintech-Financial-Inclusion-in-the-Post-COVID-19-Era-48623). Read on as we bring you the top 5 global trends in financial inclusion to offer a crystal gaze for institutions working in this segment.  1. Digitalisation ![](https://lh5.googleusercontent.com/C1QNOFu69nEj0CxEmz0Zsl0n6-mPenyXcaBFfIP4SoqSbzL3x7Fm04NYxk4pXl1ekMChkwH_w1sNmNTNZ4kYbUyYAw6Mw2Vv6e1ReMBM0hgiKUSOKm6ZE2_Gd8EdKPFfydmvSEfj) Financial inclusion through digital financial services (DFS) has become an underlying theme amid the COVID-19 lockdowns and social distancing norms. As per a recent report by IMF (_Digital Financial Services and the Pandemic: Opportunities and Risks for Emerging and Developing Economies_), digital financial services are enabling financial support to the “hard-to-reach” people and businesses. This was especially visible in Namibia, Peru, Zambia, and Uganda where DFS provided cash assistance to households, particularly to the unbanked, women and informal sector.  With [370 million out of 590 million of African population still unbanked](https://www.lafferty.com/reports/digital-finance-for-consumer-sme-lending/region-4/issue-one-middle-east-and-africa.html), DFS can be revolutionary. For financial inclusion to be truly successful cross-selling, P2P transfers, digital savings, loans and bill payments would have to go from strength to strength. 2. Gender Gap When you look deeper into the global Findex database, the picture looks less impressive. Despite an improvement in the overall index, women are not benefiting equally and continue to be at a disadvantage. While gender dynamics continue to change with time, consider these numbers: * In [86% of all the low and middle-income countries](https://www.gsma.com/mobilefordevelopment/wp-content/uploads/2018/04/GSMA_The_Mobile_Gender_Gap_Report_2018_32pp_WEBv7.pdf), more men own mobile phones than women,  * 58 percent of these countries have a gender gap greater than 5%.  * 56 percent of the women are unbanked Fintech has been more successful at narrowing the gender gap in markets where women already had some degree of financial decision making power. This necessitates tailored interventions for women’s financial inclusion as they face disproportionate barriers in accessing and utilising financial services.  3. Banking without Banks  Bill Gates once said, ‘banking is necessary, banks are not’. The finance sector has gone through a sea change, and traditional banking models are quickly becoming a thing of the past. Neobanks that don’t require customers to physically come to branches to do their banking are emerging globally. Check these [neobanking stats by PWC](https://www.pwc.in/consulting/financial-services/fintech/fintech-insights/neobanks-and-the-next-banking-revolution.html): * The global neobank market was worth USD 18.6 billion in 2018  * Neobanks are expected to accelerate at around 46.5% CAGR between 2019 and 2026, generating around USD 394.6 billion by 2026.  Neobanks are carving out new space for fintech innovations with practical, clear-use customised products where making transfers, payments and remittances remotely can be done at lower transaction fee or without a fee. They are trying to be more inclusive from an age perspective, by opening accounts for immigrants and bringing banking closer to where people live and work. 4. Small Business Finance Solutions ![](https://lh4.googleusercontent.com/14CbaYUMGNjUAo4SRAr68VYEDXGdz0Kual-CI8cmHzQIExv1pjTyZGfON-cwZO_IWG1w_IEeluQdE1c5AHPK9r7lazsK7pmXSdClw02TsxZIdXS_MhIwU8s81vUPfaqYvZqmGwLT) SMEs represent an important share of firms in emerging economies. However, most lag in getting access to financing and the effect is more pronounced in Latin America and the Caribbean and the Middle East and North Africa regions. Estimates suggest that [200 to 245 million formal and informal small businesses](https://economictimes.indiatimes.com/small-biz/sme-sector/alternate-lending-platforms-are-fixing-indias-financial-inclusion-problem-becoming-enablers-for-sme-funding/articleshow/64941891.cms?from=mdr) in low-income countries either don’t get credit or have a loan but are still financially constrained. The UK saw a sharp [decline of 78% in value of SME loans](https://lending-times.com/2019/11/06/the-current-state-of-sme-lending/) in 2018 as compared to 2009. There is now an increasing trend of SME financing from digital lending companies to plug the finance gap and potential demand as they use actionable analytics to evaluate risk and uncover industry intel.  Conclusion ========== Widespread inequalities and the ongoing crisis points to accelerating the creation of a dedicated financial inclusion policy framework. With the growth of MFIs and small finance banks, it is like a goat rodeo amid the chaotic space with a variety of players drawing in globally. To tap the benefits of financial inclusion and experience a more inclusive recovery in the post-COVID era, factors such as digital infrastructure; greater financial and digital literacy; and data management will play critical roles.  Additionally, these trends indicate that customers are looking at digital solutions with a human-centered approach. So it’s critical to strike the right balance between enabling financial innovation and addressing key challenges. The future of financial inclusion would be one of those moments when you will see all the pieces of the puzzle fall into place and opening up new opportunities. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Analyzing The Importance of Customer Experience in Banking Author: Ankit Parasher Published: 2020-07-10 Tags: Banking, Customer Experience URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/7bXZbJd7xhQ7mTB9gc62Di5SdCTVETP9bDomSBY7ggJRcfqxynXbvNyEv3SpW2ymimGfTWr-iRHqQFwnhLfSjSqQP1QL4sskX069e9WfqkspCb_uQOoiR4Nkcu4fFVOTm4dy4sLz) Every once in a while, we may have found ourselves caught up in the hassles of various banking processes. Is it not extremely disenchanting to have to make trips to the bank to get a misspelled detail corrected? Be it credit card troubles or technical glitches, customers can be easily disgruntled. Reports from 2019 revealed that non-adherence to fair practices code, ATM/Debit cards, and Mobile/Electronic banking are amongst the top categories under which complaints were received.  It appears that customers have begun to greatly value a hassle-free experience and are willing to actively seek better options or solutions. In such a scenario, both conventional banks and neobanks can benefit a great deal from improving their customer experience. Valuing Customers ----------------- From the bank’s perspective, it is imperative to build a relationship with the customers that fosters trust in the banking system. Such a mechanism would entail a smooth working system, a focus on improved communication, and a prompt system to handle complaints. Good customer experience in banking helps the bank to build brand value. Needless to say, satisfied customers are likely to have better reviews for the bank. And more recommendations mean better outcomes for the bank. ![](https://lh3.googleusercontent.com/Lxo0BqsyjMjADE6QFuEto0lsWJxMnWEWFjW0EwdYx_Oamj6pfqCY1CgdlNRxAijlSKMTK0FoXfH72-Fm-kDkufMQOSaTJe23ozyPzn93-J1yoHFxcE_A4WfAyIy9Pox53OWcPaOA) Greater trust in Financial Services For the customer, a smooth experience means having faith in the banking system. A customer is likely to use more financial services from the bank if there exists mutual trust, forming the cornerstone of a lasting relationship. Where do Neobanks stand? ------------------------ The fintech sector continues to grow on a variety of metrics – market penetration, investor sentiment, innovation potential, and more. Today, it is impossible to separate a digital customer experience in banking from a traditional one. Are you a business looking for smoother financial operations? Or perhaps just an individual who’d be thrilled to have a seamless digital experience? [Neobanks could just be the solution](https://salt.pe/2020/05/15/neo-banking-reality-behind-the-hype/) for many. And while neobanks in many emerging markets are not 100% digital, many still provide a range of services from banking, loans and cryptocurrencies to foreign exchange services. The neobanking sphere has the potential of offering a banking customer experience that could be a notch higher than what conventional banking has provided. A reason for this is that they occupy the fintech space and it can be feasible for them to devote most of their resources to improve their services. Another point to note here is that as the prefix ‘neo’ indicates, these banks are well, _new_. So, of course, they have had to put a more attractive package on the table to be able to win customers.  In a [2018 report on Banking Customer Experience by Qualtrics](https://www.qualtrics.com/customer-experience/banking-report/), 60 percent of the respondents said that they would prefer an online-only bank or credit union. It seems then, that the public mood is just right for neobanks to look for a breakthrough. Neobanks are the ones that often lead the way in [fintech trends](https://salt.pe/2020/05/01/top-11-fintech-trends-that-are-changing-banking/), and could potentially be setting the standards for the digital experiences that conventional banks offer. ![](https://lh4.googleusercontent.com/4dF0gJQzoHoSjdn-4HfphT2m4X84Iz42cMMD9iOg39SP5V4o4DZeM4-TFdOIs6S8Bn-IREvQT1OdkwFBAu1Xpx1QHOQgrthoNGrZF-p-kxOepf8BeNdhz06sexvEMB-ctiSayYY4) Would Customers Prefer an Online-Only Bank? \[Based on data from Quadratics Banking Customer Experience Report 2018\] The Bigger Picture ------------------ If we look at the larger scheme of things, quality banking services and consequently, good experiences by the customers, can have an immensely positive impact. Perhaps the most important outcome of this can be greater financial inclusion as more and more people would want to come into the fold of the formal banking system. As a result, this would also help in the better transmission of monetary policy rates to the customers.  Not only does this generate loyalty and affinity to the bank brand, but it also adds to the larger goals of banks as financial institutions. It becomes obvious that valuing customers can have a far-reaching impact on many levels. Putting people at the center is often always for the best, and is in the spirit of financial inclusion. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## What is Open Banking? And Why Should I Care? Author: Ankit Parasher Published: 2020-07-05 Tags: finance, bank, Banking, open banking URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/FCe1PTz2y24kX0NGjgUKMbjJtQSfKhK4CDzpfTgjSm67_hprtWZVDBA_l83YIYH3BIN9-ehjmVALvQIafJaij2JV9Lrw9wAORymJYrpPEvsomil6yq0_Q4PDQT_aWox9n1zLTuOf) An ongoing, global fintech wave (the sector raised nearly [$280 billion in funding in 2018 and 2019](https://www.prnewswire.com/news-releases/2019-another-blockbuster-year-for-fintech-kpmg-pulse-of-fintech-301009315.html#:~:text=Global%20fintech%20investment%20fell%20short,deals%20from%20622%20to%20426.)) has propelled the rise of multiple innovative concepts and methodologies that are radically improving the existing structure of the financial sector. Open banking, sometimes referred to as ‘open banking data’, is another innovative idea revolutionising the banking sector.  Simply put, the concept of open banking promotes the approved sharing of consumers’ transaction data and accounts data from banks and other financial institutions, to third party providers via application programming interfaces or APIs. These third party providers then analyse the data and generate unique financial solutions for the consumers based on their needs and demands. A close approximation would be – think of them like internet ads from Google or Facebook, except these offer you financial solutions. Here’s how it all began: * The open banking concept was first adopted in the UK and Europe in a bid to level the competition between new banks and old-and-established banks, as the latter had a near-monopoly on the sector.  * Though established banks had crucial consumer data, they did not utilize it to aid consumers. On the flip side, newly created fintech startups offered lucrative solutions to consumers based on the data held by the banks.  Open banking may be set to reshape the banking sector by empowering consumers with disruptive financial products and facilities.  How Does Open Banking Work? --------------------------- Before privacy enthusiasts decide to pick up their internet pitchforks and leave, let’s make this clear – open banking can not occur without the consent of the consumers. Consumers retain the authorization to share their data with whomever they want and for the duration they want.  When a consumer approves the sharing of their data held by banks and other non-banking institutions, APIs facilitate the means for the third party providers to access the data. These providers then analyse the data to constitute a financial profile of the consumer based on their financial activity, risk aversion, key spending habits and much more.  For example, say you want to compile your monthly expenditures based on your transaction activity of your accounts in different banks: * You visit a website or download an app to do this task.  * The website or the app now becomes the third party provider and will ask for your consent to fetch your transaction data from your bank accounts.  * Once approved, your banks will confirm the same from you again. After confirming the data ownership transfer, the app or the website will fetch the data facilitated by APIs and offer you the required compilation of your monthly expenses.  A point to remember is that the consumer has the authority to withdraw the data viewership rights given to the third party providers.  Open Banking Advantages Are Heavily Customer-Centric ---------------------------------------------------- Open banking empowers consumers to better utilize their data by sharing it and taking advantage of customised products and services based on them. Let’s look at a few key avenues where the consumers can enjoy enhanced services via open banking.  * Since the consumer has the power to share the data with any entity, open banking is truly a free market. It has promoted healthy, but intense, competition among established banks, newer banks and other financial institutions to offer best services and products at reasonable rates.  * Open banking enables individuals and businesses to procure better loans at legitimate interest rates since they can easily provide their information to the loan providers. The latter can then analyse the financial activity and assess risk levels to then offer better loans, or no loans at all to individuals with troubling financial history.  * Fintech companies have started creating more specialized and individualized financial solutions for the consumers such as applications that can help an individual in better selection of car or a real estate piece based on their current as well as estimated future finances activity.  * Customers can also compare the best financial solution and product for themselves right from a savings account to an insurance scheme. The Future Of Open Banking: Where Is It Headed? ----------------------------------------------- Though open banking is reshaping the banking sector and empowering users simultaneously, it does come with some associated risk. There is indeed some uncertainty regarding data breach and theft, apart from the potential for misuse of data by trusted third parties. While there are authoritative entities that verify and regulate these third party institutions, data privacy remains a concerning issue. The future of open banking depends on the extent to which these third party institutions can succeed in protecting consumer data. A loss of faith in the concept will prompt a quick fall in its adoption, akin to its rapid rise. Also with the upheaval of ‘financial inclusion’ in the banking sector lately, the future of open banking depends on the efforts of open banking companies in incorporating individuals from low financial strata.  With this being said, the rapid growth of the open banking wave and its popular acceptance among major economies of the world points at a bright future for open banking. By and large, we’re all optimistic, with analysts projecting a [$43.15 billion open banking market by 2026](https://www.globenewswire.com/news-release/2020/04/13/2015104/0/en/Open-Banking-Market-Size-to-Reach-43-15-Billion-by-2026-at-24-4-CAGR.html) growing at a 24.4% CAGR. Carefully and well designed open banking structures will not only generate greater gains for the consumer but also aid in a massive exercise of decentralization of data traditionally held by established banks. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Honey, let’s talk money? Financial Talk In Your Relationship Author: Udita Pal Published: 2020-06-29 Tags: money, relationship, Love URL: https://salt.pe/blog/null The matters of the heart and money may look mutually inconsistent prima facie, but are they really? Not in today’s time. In fact, [money is the “leading cause” of strain in relationships](http://www.cnbc.com/2015/02/04/money-is-the-leading-cause-of-stress-in-relationships.html). So, however awkward the conversation may be, it is important to be on the same page as your partner, especially if it is a serious relationship. Financial compatibility is one of the most important considerations for men and women alike. In a survey conducted by The Economic Times, as many as [89% of the respondents agreed that it is essential](https://economictimes.indiatimes.com/wealth/plan/how-to-ensure-financial-compatibility-in-your-relationship/articleshow/50875742.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst) to have similar financial habits and attitudes. ![](https://lh5.googleusercontent.com/34tThhqmWzC78_434FxAoy8MwSc5kO_D_lkeMZBFvnVEax3WEblLQxrBkRjRAdiSXK119R4WyFxeDBATDXWgAT1idsfgoNUKC0HSBKzS1KfPRDvOcdpsmN-BvthBKQKf-WsbINKQ) Source: EconomicTimes Financial compatibility is much more than just earnings or previous debts. It is more about the approach couples share (or don’t) on important concepts like savings, investments and spending patterns.  There are important financial considerations that each couple should freely discuss at some point in their relationship. Here’s a handpicked list of a few important aspects that should essentially figure in any financial talk:  Important financial talks to have  ---------------------------------- * Debt management and previous financial health  Existing debt is a critical area of consideration, especially if you are planning your future together. It will not only reflect on your credit score but will also potentially affect all your future investments and financial goals, like buying a house or a car together.  Previous debts, if not managed properly, can be a source of huge problems not just financially but personally as well.  According to Economic Times, as many as [78% of people claimed that they dont mind sharing the previous debts](https://economictimes.indiatimes.com/wealth/plan/how-to-ensure-financial-compatibility-in-your-relationship/articleshow/50875742.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst) of their partners.  ![](https://lh4.googleusercontent.com/KkGgLuUAIExmRJFt9wmx_-nWpCRmXu902DMma5KYWaH5F956UNVyZIBEcWvTeon0s-poN09vpef7ye-IxGLy5k-zpjFLOCh18EL3OWDNMS569rh80Mj2Bu8GVVcQaqQ4rK6kxqCm) Source: economictimes.com     * Spending habits and savings  Your spending habits influence a huge part of your lifestyle and your future. Unfortunately, dating apps don’t come with filters to segregate the shopaholics, the cautious buyers or the spendthrifts. Therefore, compatibility on this front becomes even more important once you start dating, because it will directly impact your life as well, influencing what kind of restaurants you go to for your dates to where you plan holidays to.    * The aftermath of shared purchases In case you are buying a house together, or planning to move in together, planning to invest together, it is important to know the effect a separation or divorce may have on decisions. It may seem cynical to many, but it will save both of you a lot of legal hassle and mental stress if you have sorted these issues from the get-go.  * Actually sharing the shared expenditure   As a couple, you’re likely to spend a majority of your time together, which invariably means that you’ll pay for each other at some point. From who is picking up the bill after your dinner to who is paying for the house rent or for the trip abroad, every expenditure counts, whether big or small. Having a clear conversation about it and shouldering responsibilities (in whatever manner both of you mutually agree) goes a long way in making it a happier and stronger relationship. A relationship is built on equality and mutual respect, after all, even in matters involving money.    When is the right time to have “the” talk? ------------------------------------------ Tiptoeing around the money and finances topic is a recipe for a disaster. Having said that, asking a person about his/her salary or their previous loans may well send them running for the hills. Needless to say, these matters need to be addressed, but in a regulated and tactful manner. An essential requirement is that in any money conversation, you are able to get your point across in an open and non-judgemental manner.  There is no straightjacket formula of finding the right time to have your financial talk. It is highly subjective and depends upon the bond and level of comfort you both share. However, start off easy, with smaller topics like day-to-day expenditures and try and bring these things up conversationally.  Conversely, discussions on having a joint account, shared purchases, previous debts et all should be done before you decide to get hitched, rather than stumbling upon something like a large student loan that your partner is currently repaying after you get married. Erin Lowry, a finance professional at Broke Millennial calls these small steps getting [financially naked](https://brokemillennial.com/2015/10/08/getting-financially-naked-with-your-partner/): _“Sharing our numbers didn’t mean we suddenly swapped ATM pins and ran to get a joint bank account. Instead, it provided a foundation in which we could create hypothetical scenarios about how to handle money if we decided to get married (an important conversation to have after \[several\] years of dating).”_ If you have been seriously dating for a considerable time, it is important to be on the same page, at present as well as with respect to the future.  Parting thoughts  ----------------- ![](https://lh6.googleusercontent.com/vbB1adghS_FMYDtcPVxSMq3rJOKrBYXbro5xT-ZfsCBvRB4wgWneeiKqdZXvDnuBLnM2WmW6dAl3mnQTE6fHeV8jf5gRapDA72SepL8Tf3qPZRvfVCZwtaURKgYJ1kbn13f82-yT) It is not essential that you and your partner share the exact same spending patterns or financial goals. But, it certainly helps if they’re complementary and not a deal-breaker for each other.  An effective way to not let your differences get in the way of your relationship is by managing your finances effectively. You can probably use a financial planning service or choose to do so yourself by way of getting yourself neobanking services like [Salt](https://salt.pe/). With all kinds of financial assistance and banking services available at just a click, this will be your one-stop solution for all your financial and banking needs. Hopefully, Salt will assist you in elevating the health of both your finances, and your relationship. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Reasons Why Credit Cards May Be Obsolete In 5 Years Author: Ankit Parasher Published: 2020-06-20 Tags: finance, Credit Cards, money, Banking, Credit, management URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/nEKVAS3bje0glDFUcGGWG9veqmH8LSJVyr_ldPQ7sgdM1FuD3agtjgbYVIESbsZB3nOXn3Psh9N4OhGzXKbtx6Ten-UsIIjrgNipemu_drMndjA9AUYKBo_b9GRq_OYGot0pg0TP) A few generations ago, when the concept of a “credit card”, or what were known as “diner cards” then, shook the entire global economy and became an overnight sensation. Credit cards were a huge leap forward from cash transactions and as of 2020, as many as [2.8 billion credit cards are currently in use worldwide](https://shiftprocessing.com/credit-card/), with 70% of the global working population having at least 1 credit card.  In fact, according to the statistics by [Global Economy](https://www.theglobaleconomy.com/rankings/people_with_credit_cards/), a huge part of the population in developed countries like Canada (82.58%) , United States of America (65.6%) and Japan (68.38%) had credit cards as of 2017.  However, the contemporary times have seen an unprecedented shift towards digital payments. With the  emergence of newer and more innovative modes of payment, like digital wallets, the popularity of credit cards, or what we call “plastic money”, have been seen to dwindle. The fintech sector is innovating on a daily basis and is coming up with newer and more simplified ways of transacting money.  We believe there’s likely to be a further shift towards credit cards going obsolete in times to come, due to the following reasons, that an increasing number of users can  no longer overlook: Added associated expenses Buying a credit card may feel easy and affordable, but of course, there are some unpleasant truths you discover later. Credit cards come with exorbitant interest rates when you are borrowing, often as high as 30%. Additionally, there are several other associated fees, such as the late payment fee, overdrafting fee, maintenance fee, foreign exchange fee among others which, even if they somehow seem insignificant individually, can put a huge dent on one’s savings in the long run. Effect on credit score A healthy credit score is key to a healthy investment portfolio in the long run. Your credit score will directly impact how much money you have to shell out for the mortgage of your house or on the premium of your insurance. Unhealthy financial habits, and consequently, improper credit card usage hampers your credit score more often. This can have a detrimental effect on all your future investment plans. Induces unhealthy financial habits To those who struggle with discipline, credit cards can be almost like shopping with an unlimited amount of money, or at least a very large amount of money owing to high credit limits. Study after study has indicated that credit cards encourage impulse buys and [splurges based on benefits](https://www.researchgate.net/publication/239810637_Do_Payment_Mechanisms_Change_the_Way_Consumers_Perceive_Products) and not value. Security concerns As compared to the newer modes of payment, credit cards are more susceptible to security breach. The issues include, but are not limited to:  * Identity theft,  * Theft through portable skimming devices in ATMs,  * Card cloning etc.  These problems are not as common in the payments using mobile wallets,  Soaring growth of digital wallets ![](https://lh3.googleusercontent.com/FkKA1iRaVEztIVDAwDpsiQV2HsZ1Z5Zf8F101Iii_ZbZOJ8GnxXY1ihDbURBVVSCeACXcAeCOJOSCV2XNvZyCN9E_nmsKXXifu6UKDg1nihwbzOC-33DBpuh2jlsf5Bo245sIjLp) A steady growth towards digital and mobile wallets has been seen in the recent past, in a pursuit to go cashless. Especially in markets like India and China, which seemed to be leading in a mobile-first push for payments. In 2018, 83% of transactions in China were already through mobile – a statistic that had doubled within a year. Even in its rural regions, mobile payment penetration is as high as 47%. The story is similar in India, where, as of 2019, [over half of India’s digital payments](https://scroll.in/article/943147/over-half-of-indias-digital-payments-are-through-upi-at-the-cost-of-card-payments) are already coming from its govt-backed UPI (Unified Payments Interface), while cards continue to lose out.  Despite their utility, credit cards were always slow to pick up in India – with credit card adoption hovering around only 3%. The emergence of digital wallets and mobile-enabled payments has also given use of plastic money as well as cash a run for its money, pun intended. Now UPI’s adoption rates in India boast a curve that the credit card sector can only hope to achieve. ![](https://lh5.googleusercontent.com/8J9Y1I9W1AEErG_K7ekB2eb0gufXtWBjcObHd3QrV5UHv5eqbBcySFGAT2W8MOj29xpaLc_pLI3Zo-fi4t5oeOaf7lOYR3WfUiCTe1rZL2TMZA6bIsQSDV4FTSFL260dV3Gp0ank) Source: [PCM](https://www.investor.fisglobal.com/news-releases/news-release-details/digital-wallets-represent-half-global-ecommerce-sales-2023) On a global level, where cards have traditionally dominated for decades, [digital wallets are expected to dominate by 2023](https://www.investor.fisglobal.com/news-releases/news-release-details/digital-wallets-represent-half-global-ecommerce-sales-2023). The transition is already underway – with major brands like Samsung and Apple already heavily pushing their own mobile wallet services. In fact, even Piotr Turek, a leading data architect, [opined in an interview](https://futuristspeaker.com/business-trends/five-tough-questions-the-warsaw-school-of-economics-interview/) that “in less than five years, smartphones, watches, and other devices will replace credit/debit cards, wallets, lenders, stockbrokers, and insurance agents.” Additionally, they do not come with the hassle of carrying around a card and the fear of losing it. Conclusion It is clear that we have come a long way from cash transactions. However, the fintech sector continues to innovate on consumer payments on a near-daily basis. This constant strive for easy digital transactions, combined with the fairly obvious drawbacks of plastic money, is likely to render credit cards obsolete in the next decade or so. An upcoming alternative is neobanking, which essentially is an _all digital_ fintech entity as opposed to the online banking service of the brick and mortar banks. In fact, neobanks in India drew considerable investor interest and [raised as much as $116 million in 2019](https://www.livemint.com/companies/start-ups/how-savvy-startups-are-rebooting-banking-11581611838546.html),  which has garnered a lot of interest in the Fin-tech sector. For an in-depth look at the neobanking sector, [check out our previous post](https://salt.pe/2020/05/15/neo-banking-reality-behind-the-hype/). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Giving The LGBT Community The Financial Recognition it Deserves Author: Ankit Parasher Published: 2020-06-14 Tags: Personal Finance, Banking, Human Rights, LGBTQ, Pride Month, Recognition URL: https://salt.pe/blog/null ![](https://lh3.googleusercontent.com/6QLw_Eaidyj5-YPx28iDlRKbHKq0J1sofL_CVt2PHwmI-iduRjF0GxMPKxCjRZzpMQOGAbicyPN6cH1NVdv4_QTd4BITG75oXvHTkQH66_9nPYQ4MKXVCttMzTYaVPOPp_kEjWI2) (Source: PowHer) For a long time the LGBT community has been deprived of their expression of identity. In most cases identifying oneself as something other than the societal norms of what your identity should be generates backlash, which sadly starts from our home. We can wax eloquent about how our cultures promote harmonious coexistence regardless of religions, languages, cultures, values and what not, but reality, ultimately, remains far from ideal. The LGBT community’s preferences and choice of identity has been dealt fairly negatively historically, to to extents we’d rather not delve into in this post.  Fortunately, nations across the world have begun to offer official support to the LGBT community, first with decriminalisation and then with recognition. But the current scenario indicates that we have a long way to go before actualising this eutopic idea. This Pride Month, we explore a more specific issue,  **Financial Discrimination** ---------------------------- Apart from the legal and social hurdles the LGBT community has faced serious financial hurdles over the years. There have been multiple discrimination cases across the country where individuals are at the receiving end for their sexual orientation. [The 2018 TimesJobs survey](https://content.timesjobs.com/acceptance-for-lgbtq-and-specially-abled-professionals-a-business-stigma-for-india-inc-firms-timesjobs-survey/articleshow/72272264.cms) offers a gloomy picture of the general attitude prevalent in workplaces towards LGBT individuals.  * 57% of the participants indicated a lackluster attitude by their companies in openly recruiting LGBT candidates. * 55% responded that they faced bias in workplaces because of their gender identity, orientations and ethnicity.  Unfortunately securing a job, irrespective of well-paying, is seen as a major milestone in the LGBT community due to the discriminatory attitude of the people around. The members are left to take up low-paying chores, pushing them deeper in a dungy unstable financial hole.  ![](https://lh5.googleusercontent.com/ZAJ3aAWOFqW3jbIg8_WulGp8zX9gWZ8pAeppJdAVA3YyQJBAHQRv4RWmNVpNlrEnjv5DOJ98Wkqlq8OwNeYpl2VotlA_KRUho74WYR3ipBq16X2PWlLINw7gz-scMg49Zf4sxTg5) The situation intensifies coming to the same-sex partners. Since the same-sex marriages are not legal in many nations, the provisions enjoyed by heterosexual partners can not be availed by the same-sex couples. In legal eyes, these same sex couples are essentially **two strangers** and are not given the recognition of a marital spouse as in heterosexual  married couples. This has escalated financial miseries in already financially underserved LGBT members.  * LGBT individuals can not take family floater medical insurance, since from a legal perspective, a family of LGBT couples is non-existent. The grim scenario extends in the case of life insurance as well. This leaves the living member of the couple in a frightful condition at the untimely demise of the earning partner. The couple therefore have to be more pro-saving to secure a financial blanket in hard times. * Many legal systems exempt ‘gifts’ like monetary help between family members from income tax. However such gifts between LGBT couples are viewed as gifts between strangers and are subject to tax above the limit of Rs 50,000 in value per annum. This couple therefore can not support each other in financial hardships without paying heavy taxes on the monetary help. These are certain critical areas where the financial interests of members of LGBT community need to be safeguarded with legal amendments and provisions. The first step however remains in legalising same-sex marruages. **Evolving Policies In The Corporate World** -------------------------------------------- Though the LGBT community faces discrimination at workplaces in terms of securing jobs and enjoying provisions same as their heterosexual counterparts, many leading brands are working to fill this gap and set up a diversified work environmrent offering equal opportunities to all. They are creating an example for other corporate members to create an unbiased environment with zero tolerance policy for any homo-trans-phobic activity.  * Royal Bank of Scotland (RBS) was the first company in India that offered medical benefits to same-sex partners and give surrogacy leaves irrespective of the partner’s gender. The organisation has been actively carrying out workshops for other companies to create actionable frameworks for equal LGBT inclusion in the workplace.  * Accenture offers its LGBT employees to share their inspiring journey on virtual platform to give voice to the closeted members of the community.  * IBM is encouraging their LGBT employees to put up video blogs on YouTube and hosting pride walks where their employees and members from other organisations can participate.  * Sodexo has organised a campaign against homophobia at workplaces and is actively recruiting members from the transgender community and providing a safe environment for them to work freely without any discrimination.  Many other companies are learning and taking up these initiatives at their own workplaces and creating a safe harbour for LGBT individuals to express their identities and safeguard  their financial positions.  **Support From Government And Political Entities** -------------------------------------------------- Over the years, governments, along with opposition parties globally have shifted their historically traditional stance, and moved to a more neutral position on the issue with no leaning on either side. While we may call this inadequate, it certainly is progress. Civil rights activists and even governments have called on companies to offer more jobs to LGBT community and create a diversified environment back at workplaces.  In India, one of the oldest Indian political parties ‘Indian National Congress’ in their election manifesto dedicated a detailed action plan for the members of LGBT community in getting their rightful status and their rightful representation in workplaces and also directing gender sensitivity training in all government offices.  Though most political parties lauded the Indian Supreme Court’s historic move in abolishing section 377, there is not much to show for assistance with financial upliftment of the LGBT community from their end. Even on a global scale, the fight is being taken ahead by the existing non-profits and other LGBT pro groups in establishing equal financial provisions for LGBT individuals. The community has suffered for long at the hands of societal prejudice, and frankly is long overdue their dignified status and position. The idea of democratic countries with equality at their crux is basis enough for the financial liberation of the LGBT community. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Insurtech In India: Trends To Watch out For Author: Ankit Parasher Published: 2020-06-10 Tags: finance, India, Banking, Global, startup, trend URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/LtIHE_G3XnCmGQt9WyCKSVHBr6q6azD1xGaqhqOwaQdUzSEmK-Z5X5lmQyls_Qk82md6KlR9Xm5bDsfxnAzjzP44wjnhuIKUtTeRGoHiEc0V835u0xdu9hud9a47MKjnw1e5Ro4C) The emergence of insurtech as a concept has brought in much needed digital acceleration to the insurance sector. One of the key nations expected to benefit the most from the remunerative alliance of insurance and technology is India, the second-most populous country in the world. India presents greener pastures for insurers, with the lowest level of [insurance penetration – a meagre 3.69%](https://www.statista.com/statistics/655395/life-and-non-life-insurance-penetration-india/#:~:text=In%20financial%20year%202018%2C%20India's,percent%20in%20fiscal%20year%202018.). The availability of uncharted markets, coupled with the technological advancements promises a brighter future for the Indian insurers. This is welcoming news, seeing the impressive levels of internet penetration of the country. A joint PwC-CII report estimated that of all the life insurance policies sold so far, 98% have been sold directly. The rapid adoption of online services points at a changed scenario for 2020, with insurtech hoping to scale the market using online tools.   Also, the low consumer market for insurance policies have been credited to the lay-back temperament of the Indian public, with life insurance coming into play at times of only life-threatening circumstances. But with the ongoing coronavirus pandemic, industry experts are expecting a boom in the insurance market. Let’s have a look at key insurtech trends in India that utilise digitalization to its peak. Reliance on data & analytics ---------------------------- With the 21st century referred to as the age of data, the insurtech industry plans to use this data to their advantage. The industry has now moved past the concept of generalized policies for all, and is now keenly working to offer individualized policies to attract, gain and retain a robust consumer base. Backed by tools like Artificial Intelligence (AI) and Machine learning (ML), the insurtech industry is now offering better policies and an enhanced consumer-oriented experience by generating insights from the data it now has access to: * By using ML and other advanced algorithms, insurers process big data from varying data sources like crime data, policy contracts, IoT, online activities and many others.  * Through advanced analytics, the insurers are able to create an individualized profile that offers key insights like risk ratios, customer lifetime value and other critical behavioural predictions.  * AI technology processes the real-time behaviour of malicious individuals and helps in detecting and blocking fraudulent claims. Also, it offers the base for automation of customer redressal procedure.  The foundational knowledge about an individual as gathered by these specialized tools and algorithms helps an insurer in crafting a personalized policy based on the data. This adoption of modernized technology offers a mutual victory for both the insurer and the insuree.  Blockchain ---------- ![](https://lh3.googleusercontent.com/9qMwe-2e0qoO_e5F0ur8Te5GI-olVC2zCrss3qvemodrm5CKneiNfDwH9OG8neTqGGkko-68oOffOIHzv1_G3e6_WfRgrOmHn3Jrg-HjpBjgW3UaMd8Xyk6mWKR1FBpjPWowoBhQ) The insurtech industry may be best poised to integrate blockchain into its landscape.  [According to a report from  Atlas Magazine](https://www.atlas-mag.net/en/article/insurance-fraud-detection-and-cost-to-industry) — nearly 54% of insurers believe that the foremost threat to their business is insurance fraud. In fact, the [FBI estimates a loss of $40 billion annually](https://www.fbi.gov/stats-services/publications/insurance-fraud) for the insurance industry due to fraud. Blockchain tech offers some key features vital in addressing these issues and ensuring an efficient and secure insurance ecosystem: * The decentralized ledger offers a transparent data network for safe transmission – with the risk of fraud greatly reduced, * Cryptographically protected data makes the system trustworthy and fraud-proof.  * It’s also got low administrative and operational costs.  * It promises faster redressal support and quick claim payment – since there is no middleman involved. A feasible usage of blockchain technology is visible by the system established by Digit Insurance, an insurer focused on creating smaller value products. Digit Insurance has deployed a blockchain-based system at the backend that is aiding in hastening the procession of claims. They have already reduced downtime taken to service a mobile phone damage claim from about 25 days to just a few hours. And many more such practical adoption of blockchain centric solutions are underway. Neobanking and insurtech synergy -------------------------------- Neobanks have brought forth a much-needed revolution in the banking realm. Catering to a more tech-savvy demographic, neobanks are offering traditional bank facilities and much more right from the comfort of one’s smartphone. Though neobanks are still in their infancy in most markets, the advantages they offer are significant:  * An all-in-one app for every banking facility installed on your smartphone right from setting up an account and making payments, is crucial in 2020. * Travel-friendly banking experiences offer 0% international purchase fees, allowing storing and transfer of multiple currencies and much more. * Superior and in-depth technical analysis of your spending habits and prompting multiple saving options to save your money.  And these are just a few general benefits of choosing a neobank over traditional banks. The good news comes for the Indian insurance sector through the upcoming move of neobanks in integrating insurance products along with the other facilities on their banking platform. Now, along with enjoying a superior banking experience, insurees in a quest to identify the best insurance provider can select insurance policies from a single platform. Plus, the tech superiority offered by the neobanks can be a game-changer feature in the coming years.  These were our major insurance trends that should dominate the insurance sector in the upcoming years. A European and Western trend that we are witnessing is a demand for case-based insurance as compared to life insurances in general, as an increasing number of consumers demand insurance on their flight tickets, taxi rides, doctor visits and many such case-based circumstances. This trend is likely to surface on the Indian insurance market in the coming months. For any insurer to likely emerge as  the major winner in the insurance sector, they’ll need to offer the personalized insurance policies and customer-friendly claiming experience. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Ultimate Guide to Neo Banking In India Author: Ankit Parasher Published: 2020-06-04 Tags: bank, Banking, NeoBanking URL: https://salt.pe/blog/null ![](https://lh5.googleusercontent.com/FN5oeLczajgSRokFfgaJyweeczKcvTuwx73zWOzWkIt1VISm1UjMUZa-H--0EVllUp9huJz5WDoHNde8gxhQXyz3VM2jtH41G64hKUzecTQUKosu_V_F3R37C2kgi1vze4fEyIuX) Hi there! With the attention it generates on the internet (both on social media and elsewhere), it’s safe to assume you’re already aware of the concept of neo banks, if not pre-equipped with a basic knowledge of how they operate. After all, neo banking and the rise of paperless, branchless banks have taken the financial industry by storm, positioning themselves as the centre of attention for customers, investors, analysts and even plain observers. However, there does seem to be a lack of complete understanding of neo banking online, and what it entails, which is absolutely essential if you are to make an informed decision on which type of bank to use, especially for those who wonder how feasible neo banking in India is. Introduction to Neo Banking --------------------------- For the few of you who don’t know what neo banking is, picture a bank with almost all of its services, but without any complications, hassles or even a physical location. That’s a neo bank. Neo banks: * Exist completely online, with no physical branches or storefronts (ultimately reducing the costs for you, the customer) * Offer real-time (even cross-border) transactions * Completely transparent with push notifications on every single-use * Offer the benefits of state of the art technology, artificial intelligence (AI) and Machine learning to help optimise the way you save, manage and use money * This and more, at the tips of your finger. It is no secret that in order to avail many of the services offered by traditional banks, you have to face a range of potential complications – like wait-times, queues, documentations and other similar hassles. Especially if you are an SME, you may be painfully aware of how the technology used by banks can often deliver more frustration than benefits. Even small, but essential tasks like statement generation and payment gateways evolve to become convoluted features.  That’s not the case with neo banks.  The idea of neo banking revolves around simplifying as much as possible, making it available for your use with just a few taps. With no physical branches, neo banks benefit not just from lowered costs, but significant simplification in their operations as well. They’re more likely to automate and optimise operations due to the very nature of their business. Advantages of Neo Banks ----------------------- **Customisation:** Your satisfaction and your needs are our number one priority. It is a common popular opinion that banks and big financial institutions offer a wide variety of solutions, but most of them don’t suit your needs or aren’t easy to use. Neobanks provide tailor-made services specifically made to cater to the needs of every single one of our customers **No downtime:** Despite their austere approach, neo banks do strive to offer a wide variety of financial services, since, like any other enterprise, the goal remains to address as large a market as possible. The advantage is that all of them are accessible whenever and wherever customers want. With 24\*7 customer support and automated services, you can be sure that you meet all your banking needs as and when they arise. **Lowered Costs:** It is not often that you get to experience optimal services while also enjoying them inexpensively. With little to no capital spent on maintaining physical locations and manual efforts, neo banks have more room to pass on these benefits to users. Most neo banks offer near-zero annual fees, making neo banking in India the cheapest and the best solution for your banking needs, irrespective of whether you are an individual or a business. **Complete Transparency:** No hidden charges, no unexplained fees or charges and immediate grievance redressal. You get notifications on your phone for every single transaction made. With the easy to use and understand mobile interface, you can quite literally keep track of every single penny that you deposit/transact with neo banks. Neo Banking: The Indian Scenario -------------------------------- ![](https://lh6.googleusercontent.com/1Mi0DBX5unlQWSRAxcagVq1GbrcXSJ21xjsglF_w1P0GPgnPZUYkFBH8am_2DTgK4b4Ao8LfUaugRDUMSgen0OBcY9m6zI4gxDOR9zmBBqNHkDdmE58lueuiIdx_j2rJPWwnmM-u) With the push towards digital transactions by the Indian Government and the growing popularity of neo banking in India, it’s fairly evident that there is a vast untapped potential to serve the needs of a large market in India. According to the [Global Findex Database of 2017](https://globalfindex.worldbank.org/sites/globalfindex/files/2018-04/2017%20Findex%20full%20report_0.pdf), almost 80% of India’s population continues to remain underbanked. While this number has certainly come down with the government’s Jhan Dhan Yojana efforts, it has also paved the way for neo banks like Salt to potentially reach everyone with a smartphone and an active internet connection. While it is true that scepticism was high when Fintech solutions first started to emerge, over time, we’re seeing that not only is neo banking safe, it can be relied upon extensively for users all across the nation. In fact, with the help of features like instant freezing, real-time alerts and transparency for every single transaction that takes place, it is just as much safe (if not safer) than traditional banking options.  But what about the regulatory compliances, you may ask? While it is true that the Reserve Bank of India requires a banking licence for any institution to offer banking services, neo banks have found a solution to comply with the necessity without the need for a physical location. Neo banks often partner with traditional banks to overcome regulatory hurdles.  The Important Question: Is Neo Banking in India Safe? ----------------------------------------------------- Yes. 100%. Neo banks have to follow the same regulatory guidelines as your local physical bank. Moreover, any deposits upto INR 1,00,000 is guaranteed by the Deposit Insurance and Credit Guarantee Corporation (DICGC). You can keep always keep track of your money, and can instantly get your grievances addressed with the help of 24\*7 customer support offered by all the neo banks. Just to reiterate the point, **neo banks are completely safe.** --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Investment Guide For Freelancers Author: Ankit Parasher Published: 2020-06-01 Tags: finance, money, advise, Freelancers, wealth management URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/cBUxkLeJ3gKjvYDpB5NdSHq8hlv-DYjLmCjhT8YcF0xRhv9B9rrNMWwZB7LRpVQeA-J8dyac5SzdLFDHKZ-bpA2Psit9BZdMSod9UbR1MzMCyIusGFEPtOR-lgL-9Fp7baASNvtF) A freelancing career is a bold decision with freedom lying at its crux . Freelancing has been attracting individuals now more than ever before, with nearly [57 million people in the USA alone taking up freelancing gigs](https://www.statista.com/statistics/685468/amount-of-people-freelancing-us/). The number soars to a multi-billion mark when assessed globally. However lucrative it might seem though, the life of a freelancer can have its share of financial challenges. Living on a project to project basis with an absence of steady flow of income and employee benefits as in the traditional 9-5, can leave many fiscally vulnerable. And statistics seem to agree. [43% of individuals admit that they are less financially stable](https://www.google.com/amp/s/websitebuilder.org/freelance-statistics/amp/) after quitting their full-time jobs and being self-employed.  If you are looking to avoid the same fate, it is important to adopt an investor mindset and apply financial tips that go beyond the traditional – track your spendings advice, though its power to significantly increase resources can not be undermined. We offer you an investment guide that will not only keep you financially secure, but also aid you in building up wealth.  #1 Build Up Your Emergency Fund ------------------------------- Life is not a bed of roses, with challenging times capable of knocking you off course. An emergency fund keeps you financially secure in times of an unforeseen crisis. Being proactive about creating an emergency fund not only saves you from the fret of looking for money at crucial moments, but also protects you from the debt trap – incapability in repaying loans in an extended crisis scenario. Also, an emergency fund offers you monetary resources during lack of a paying project, a situation common in the life of a freelancer.  We thoroughly explore the process of building an emergency fund [here](https://www.google.com/amp/s/salt.pe/2020/05/20/how-to-start-building-your-emergency-fund/amp/).  #2 Plan your taxes ------------------ As the phrase often attributed to Ben Franklin goes – _there are two things certain in life – death and taxes._ It’s easy to appreciate the sentiment behind his. Taxes do eat a great chunk of your earnings. While salaried individuals have departments like HR and accounts to help them save taxes, freelancers need to take charge of their filings and utilize tax benefits and other opportunities all on their own. Most modern taxation systems allow freelancers to claim expenses incurred on travel, depreciation of assets, etc. In India, for example, freelancers with an income up to Rs 50 lakh can claim 50% of their total receipts as a business expense under Section 44ADA of the Income Tax Act 1961 without maintaining any logs of accounts. A significant portion of money saved could be invested to pack on those savings. Therefore it becomes necessary to consult an expert and plan your taxes. #3 Insurance ------------ Health emergencies are often unexpected, and enormous medical bills can quickly drain financial resources for even those doing well for themselves. While your emergency fund might sustain you during testing times like the Covid-19 pandemic, amongst the worst pandemics in history, a dedicated health cover does more than that. In a scenario of personal medical tragedy that might put you out of work for months, exhausting emergency funds – first on medical expenditure and then on daily expenses, will quickly leave you financially unprotected.  A dedicated health cover on the other hand, does not let the emergency fund bear the heat of the circumstance and covers all your medical bills. Also at unfortunate times like demise of the sole breadwinner, a term insurance financially safeguards the interests of those dependent.  Clearly, investing in suitable health and term insurance compatable to your earnings is crucial for your future economic health.  #4 Plan your retirement ----------------------- The investor mindset promotes planning your retirement at the earliest. For freelancers early in their career, saving up for retirement might look like an early undertaking but you’d probably want to start asap if you gave it a thorough thought. Retirements can be outlandishly expensive and if you plan on not living frugally during your final years, then the sooner you start, the better.  * Research about your country’s dedicated retirement accounts or fixed deposits which might offer you tax deductions and other incentives. Since you start saving early, the returns that you will enjoy during retirement will be drastically compounded over the years.  * Look for other passive investing modes like passive funds which will eventually help you in reaping high monetary rewards later in your career and can also be reinvested.  We discuss some other modes for investment in our next tip which are capable of supplying high rewards in future.  #5 Traditional investment routes -------------------------------- ![](https://lh4.googleusercontent.com/yMpA0pNspnOTy9yAxM-8B2gK_rvOBlh3ZXyZxSgdv4I5H7ttFofN37We6marJ-t_H0r1piN2X7sHO15gmOMF4qf7IoxeWBb5_6L8i51DLdo5tnYFw9gIYl280CzdnQKBrjzAb7yq) Money saved from other expenses can be invested in diverse traditional investment methods. Though there is no guarantee of returns in the short term owing to a bunch of macroeconomic factors, in the long run, most traditional investments, especially equity, only go up. Some solid options to always keep in mind are: * Real estate * Active investments in stock market * Government bonds * Material investment like gold, diamonds, etc Apart from these, countries have distinct government backed schemes and entities for investing. A well researched and analysed investment on these routes will significantly expand your health.  #6 Invest in Your Endeavour --------------------------- By now we have discussed areas that hold crucial importance to keep your financial health in check. But investing in your own endeavour will significantly aid in expanding your clientele and thereby generating more revenue.  * If there’s a skill which, coupled with your existing skills, can attract more projects, invest your resources and build it up. Hire the best instructor and grow that particular skill. * If a manual job like creating and sending invoices or bills is consuming your time then invest your money in specialized software for this. It’s a no-brainer. * Invest your resources in self promotion and other branding ideas that will present a wider prospective client range in front of you.  Investments like these, however small and big they might look, their benefits in the long-run can not be debated. Investing in areas that will bring more business or improve the existing business should not be re-thought and instead, actively pursued.  Investing as a freelancer: what to do? -------------------------------------- ![](https://lh5.googleusercontent.com/V0MP_FjgVx-kVaxQTfHGt58QEqBzW3vdVus9ACbjet4qDmFp9FPXLRo4FDmO8nR9pcYp_nNjgU3qTZwD2Io66khwfHpaflBALW2VyZrndY3hw8fvJDYesZgg5QJAIihVyUK3HM7k) By now, you should have a clear idea about the right investments that will propel your freelancing career towards financial security and aid you in amplifying wealth. While there isn’t much debate about the criticality of these best practices, understand that sacrificing your desires and living on a saving for future mindset will deprive you of all the adventures and experience that life has to offer. A balanced and disciplined investment approach, both for future security and present thrills is possible without leaning much on either extreme. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 8 Personal Financial Lessons To Master Before 30 Author: Ankit Parasher Published: 2020-05-31 Tags: fintech, finance, money, management, 30s, advice URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/shzPKFzkOXNCKgMb-JnAHGlOZIhqpe0zTNGtPX6LKB57uOhFCSlJoG_fEPMTFyqPVHrQxSvCE8WEl0WEV3pg3ixjVWJ-qgQSEa_EpmzuciT5jWzBxdMOlC9DTiwd5VzK-xTdzZlQ) Money is one of the primary causes of mental stress and related problems for a considerable number of young adults. This is especially true for people in their 20s – the phase of life where most folks are inexperienced at managing their finances. But even experienced adults who’ve been at it for quite some time find this equally challenging. Most people regret not following and mastering specific financial lessons early in their lives and having to work arguably twice as hard to make up for the lost time. Don’t let this cause panic though. Instead, let it serve as motivation to start now and master these 8 basic lessons before you are 30: #1 Build an Emergency Buffer ---------------------------- Emergency buffers are cornerstones of an evolved personal finance strategy. Once we secure our income or get any revenue stream going, we have the tendency to relax just a little. Complacency creeps in and we tend to forget about planning for unexpected emergencies. It can happen to the best of us. Which is why it’s important to start building an emergency buffer, to be put to use only when absolutely needed, with no other options to fall back on. An encouraging proportion of Indian millennials have already begun saving part of their income, as [LiveMint reported in a survey](https://www.livemint.com/news/india/saving-like-an-indian-millennial-11575801972030.html). Usually, it is a good practice to save three to six months worth of your expenditure, in a separate savings account. This will assist you survive in case something unforeseen or sudden happens. (We all know of the disruptions caused by the pandemic!) #2 Invest Regularly ------------------- Typically, a lifestyle upgrade, or any long term financial goals require considerable planning and foresight. Anything from a brand new home to your retirement can be accomplished easily with some foresight to start investing early in our lives. By beginning early, the benefits of compounding interests kick in and could see you doubling your investment by starting out just a few years earlier. The markets may seem like an intimidating place for beginners and can definitely be overwhelming. There is an element of risk involved in any investments, and you have to ensure thorough diligence before making one.  #3 Secret Tip For the Biggest Savings! -------------------------------------- Conventional financial wisdom suggests that a 10% return on your investments is a daily health amount of returns. What about saving an average of 40% though? You may think that this might be a super risky venture, (since higher risk = higher rewards), but it isn’.t It’s simply a straightforward tip.  **Pay off your credit card bills in full whenever they’re due.** Usually, young adults are prone to pay just the minimum amount due and not the full amount due, causing them to pay up a whopping 41% addition in credit card interest rate ([industry average](https://www.valuechampion.in/credit-cards/average-cost-of-credit-card-debt-guide)). That is a significant outflow in the wrong direction.  Budgeting: The Ultimate Tool ---------------------------- It is easy to lose track of our long term financial goals, and it is easier to overspend and have it impact our finances in the long run. This problem is unlikely to occur, however, if you inculcate the habit of budgeting and strictly adhering to it at all costs.  Even on the rare occasion that you do overspend, it can be compensated for during the rest of the current budgeted period, or in the next budget. Make sure that your budget reflects your long term goals and any amount of money that needs to be set off for every month for your goals should always be the first priority. ![](https://lh5.googleusercontent.com/1ZkOmBWam1dKqbl2epQiaeB-2bpk8jC9OXths9rBRymT4JJXsT7r3F-uefy_1BxUNAA2ScZj57SQ3r2NDun0O6QPYx_8Lp7S54YQFRUN_xRphTEqhTgKF6X0uowthzRnoaUDRCbe) Alternative Income Streams -------------------------- Side hustles and part-time work are absolutely essential, even if your main source of income is abundant. A few extra bucks never hurt and can be strictly used to achieve certain financial goals that you might not be normally able to achieve. It also serves as a distraction from your primary income source, relieving some mental stress and in the long run, your health. Side hustles can be anything which you are passionate about and are skilled at, which can be monetised without putting excessive amounts of time into it. Save for Retirement ------------------- Physically, we’re capable of working hard and earning sustainably for only so long. As we grow older, our efficiency starts to dip, and if we don’t have any funds saved up for our retirement, we know the consequences won’t be comfortable. Many begin to realise that they haven’t been saving up enough for their retirement fairly late into their careers, and end up having to invest a lot more into their future sustenance. This could all be avoided by planning ahead for retirement, and by starting early in our lives Plan Ahead! Set Your Financial Goals ------------------------------------ Setting your financial goals is absolutely important. Like we just said, any major upgrade requires a lot of planning and effort on your behalf. This may seem like an obvious tip, but the number of people not having a set financial goal with clear intentions within a reasonable time frame will shock you. It is important that the goals are S.M.A.R.T. Your goals should be Specific, they should be Manageable, Actionable, Realistic and Time-Bound. It becomes infinitely easier to work on your goals, once you clearly define what you want to do and how you plan to achieve them Trim Unnecessary Costs ---------------------- It is easy to be sucked into purchasing an unnecessary item just because it is on sale. We’re only human. However, it is equally important to be on the lookout for legitimate sales and offers on products that you need or use regularly. If you are making a major purchase, unless it’s absolutely urgent, take your time and shop around for a while to make sure you get your money’s worth. There you go folks. These were the top 8 tips that everyone should master before their 30s. For every other financial need, we at [Salt.pe](https://www.salt.pe) are your one-stop solution. Maintaining a healthy financial life will be exponentially easier if you can take care of everything under one roof. Join our waitlist now! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Net-worth VS Self-worth #MentalHealthWeek Author: Udita Pal Published: 2020-05-22 Tags: finance, money, awareness, health, lenders, lending, loans, Mental health, tips URL: https://salt.pe/blog/null We love talking- be it long comments on Facebook, short, witty comments on Twitter, or those addictive Instagram polls. We love talking, not just social media, the water coolers, the coffee shop, and those beers at bars over weekend, but do you know there are two topics make us hit awkward silence.  Those two topics are **‘money’** and **‘mental health,’** and in case you didn’t notice, they go hand in hand. And I’m not just talking about _COVID_ wave hitting us too hard, in general, we hesitate when it comes to talking about it. The worst part is- this hesitation is increasing. ![](https://lh6.googleusercontent.com/LJ3LPBPv_EL-Nh9aBBiwhKG_vlk3f03oGE9Bgr2hhUSLDS2MSdMXfQyk2tUnNGQEjPc0oc80_PllzFBlyXZHFH46DrPfTHFsj9-pxKPbsgHHm2PqHXfcVAl9qdSaOVVYxXTbUPGJ) _A typical cycle of money and mental health issues_ Financial problems are a widespread cause of stress, and the worst part about it is the traditional _stereotype_ which people have that having debt is a sign of not being good with money management. The self-thought ‘humiliation’ and ’embarrassment’ lead to isolation, which primarily impacts the well being of the person. People who are sitting in the comfort of their home may not understand the severity of this problem. Sometimes, this leads to people even cutting off the essentials, healthcare, and hygiene items to meet day to day needs- and they choose to do that overtaking loans. A loan is a different story altogether- we can never call it a charity. It often comes with its very own price called ‘interest,’ and sometimes it is unrealistically high. Unbanked people often pay up to 100% as interest rates in desperate times.  And mind you, these lenders are aggressive with 0 emotions or moral grounds, they come raw and nasty when it comes to taking their money back. According to a study, people in debt problem are three times as likely to have thought about suicide in the past year. Suicide is a severe agenda in itself alone and has multiple factors attached to the circumstances of someone opting for it. However, there is a link between debt and suicide. In a study done by an Independent mental health task force based out of the UK, mental health also affects your income. It suggested that people experiencing mental health problems are less likely to be in high-paid employment and more likely to be in low-paid jobs.  This explains why only 43% of people with mental health problems are in employment, compared to 74% of the general population and 65% of people with other health conditions. In short, People with mental health problems are also overrepresented in high-turnover, low-pay, part-time or temporary work.  Also, sometimes people with mental health problems cannot adjust to the working environment because they are often anxious, sensitive, or impulsive toward management and meeting their work goals.  Besides your pockets, your mental health affects your relationship with colleagues, juniors, and seniors because the very idea of different forms of communication like one on one, email/ chat exchange, group presentation makes one nervous, anxious, so on…  And here comes the worst part, despite knowing so many things, symptoms, and care established for people with mental health, no one will come forward and accept it because of the taboo attached to it. **Here are some tips that you can go for if you are trying to get back on financial track:-** * Understand where you are unnecessarily spending money, research the root cause of it, and fix the problem with an economical solution.  * Never hesitate to talk to someone if you are not able to fix your problems; it is okay to reach out to friends, family, or financial experts and try to understand what is the best possible solution for the same. * Be realistic; try to understand the difference between luxury and necessities. * It is okay to make some mistakes in the process of saving money, relapsing is okay as long as you understand the long-term benefits of finance management. * Please don’t be harsh to yourself for making mistakes- nothing makes us more human than our errors, and if we want to be kind to the world- let’s start with ourselves. * Your debts don’t make you a wrong person; this sense of being stupid for making mistakes and beating yourself up for it doesn’t help- know the difference between net worth and self-worth. Keeping money out of the equation for a minute as we are in #MentalHealthWeek, We want everyone reading this to focus on having an excellent mental and physical health during this tough time. Take proper sleep, exercise/ stretch whenever you can, eat right, and socialize with the right people (from a distance). Smile often, be open about your feelings, engage in extra activities outside your work and home chaos.  Never hesitate to reach out to professionals to help you through this. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## How To Start Building Your Emergency Fund Author: Ankit Parasher Published: 2020-05-20 Tags: finance, money, management, Emergency, Fund, Goals URL: https://salt.pe/blog/null ![](https://lh6.googleusercontent.com/HKQMt7B0gi6niAW8S9_xyt7CYCEnY9y5TmneOmHXDAVQUAN7UK0wyx1Je9Qig-mWFWPTNt53JmN4j_xJof2Jm17qXLvU0V8DrVj_-86eGjgRdzVe5b_t28Fsht00EDdenSGXLC4I) Emergency funds can prove to be crucial to our personal finance. Building a buffer is, in fact, one of the tools which you should master before you’re 30 \[Link to financial lessons before you’re 30 post\]. Even people with the most reliable and regular source of income can find themselves in need of a sudden and unforeseen expense (like a medical expense, house repairs, etc.) or can find their usual source of income impacted due to some external reasons (the current COVID pandemic is a wonderful example). This sudden cash-crunch has the potential to occur to any (or all) of us during our lifetime, and it’d do us loads of good if we had an emergency fund securely maintained. More than anything, the mental peace and the sense of safety that having an emergency fund provides is more than enough of an incentive to start building your own. Here is a list of steps that you can take, which will help you create your own emergency buffer #1 Calculate the Target Amount ------------------------------ Calculating the desired end level of money should be the first thing that you should do if you’re just starting out on creating your emergency fund. Emergency funds should typically have two-three months worth of your monthly income. We had talked about how we arrive at this number [here](https://www.salt.pe/2020/05/04/5-financial-lessons-covid-19-has-taught-us/), but here’s the gist. Financial experts have formulated a rule (called [the 50/30/20 rule](https://www.thebalance.com/the-50-30-20-rule-of-thumb-453922)) to theorise how a person should ideally spend their monthly income. According to this rule, you should ideally spend 50% of your monthly income on necessities, 30% on wants and luxuries, and the remaining 20 goes towards their future. So, by saving up two to three months’ income as your emergency buffer, you’ll be able to survive four to six months by living off your necessities. And this four to six months is an estimate assuming the worst possible financial crisis (an assumption that you don’t earn anything during this period). This should give you enough time to figure out a way forward (getting an extra job, applying for a long term-loan, etc.) if the situation persists. #2 Maintain Monthly Goals ------------------------- If you’re starting out on building an emergency fund, it’s unlikely to be practically feasible for you to sufficiently fill it in a single go. Just like any other financial target, it is important that you plan your emergency fund over a reasonable period of time. It is essential that you spread the payments out throughout some months (you still have other payments to make) while ensuring that you don’t leave it until it’s too late. You never know when a financial emergency may occur, so it is advisable that you fill your funds as soon as possible. We recommend that you maintain a monthly payment goal earmarked specifically for building an emergency fund. This way, you’ll still be able to make all your monthly payments without compromising too much on your lifestyle, and have successfully built up an emergency fund at a healthy pace. #3 Maintain A Separate Savings Account -------------------------------------- Maintain a separate savings account, apart from your regular bank account, used solely for maintaining your emergency fund. While this step is not an absolute necessity to build a buffer, it makes your life a lot easier. Apart from the obvious benefits, like the ease of management and a small (but significant) income by the way of interest, it also reduces the temptation to spend this money. We human beings can have the tendency to consume our entire bank balance, and this tendency can have a negative impact in times of crisis. An additional step required to spend this money will prove to be a sufficient discouraging factor and will help you effectively maintain an emergency fund. ![](https://lh6.googleusercontent.com/ygJCnVA-2NXCVrYzvT9_l9Xvv8Rm8o_1ha1aV0SXmiD9VwgsY-t0NC4_h2RLur9XRdZEwAKpeff2hIovfA_MC4vtI8M8ofdNH_dh55BCyKGww5u6WqdzC4i6mZY5FIiCpvcnf5fJ) ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- #4 Live Like You’re Broke ------------------------- Well, not always. But while you’re building an emergency fund, you should. Revisit every single one of your payments and scrutinise them to determine if they’re necessary. See if you can find offers on products you regularly use, and compromise (just a little bit) on convenience. This extra step can help you build an emergency fund a bit quicker, and in hindsight, you’d really appreciate the fact that you took the extra step. This mentality can prove to be effective when working towards your other financial goals too, but it is important that you don’t overdo it. You have worked hard for your money, and you should be able to utilise it in whatever way that you deem fit. That being said, living like you’re broke will definitely make achieving your goals faster than what is otherwise possible. Find the right balance and see what works out for you.  At the end of the day, personal finance is not an exact science. All the lessons and advice shared here in [our blog](http://salt.pe/blogs) should be applied differently in the context of your own scenarios, since different people would have distinct ways in which this would work best for them. There is no one specific formula to succeed in personal finance.  Salt, once officially rolled out, will offer you tools designed to help you achieve your financial goals. For further details, contact our team, we’d love to hear from you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Neo Banking: Reality Behind the hype Author: Ankit Parasher Published: 2020-05-15 Tags: finance, Future, Banking, NeoBanking URL: https://salt.pe/blog/null ![](https://lh4.googleusercontent.com/2Xa9SAL3R-xG-kxzewgidETxWyz8a5CPC5kWkNL_4Zr9UURoCOHC4sqH703ivfIsYs6ICKkjnwmksNYVQ8ohygm8V5gpb04AVy6gDjtcCpzjvtHclKFNjMRITyy-9goatstLcR32) If you’re seeking a more modern and tech-enabled banking experience, you may want to explore neo banking for your money management. With the growing need to expand financial services, serve the underbanked and bring down banking costs, [neo banks have emerged as the most exciting fintech trend](https://salt.pe/2020/05/04/top-11-fintech-trends-that-are-changing-banking/) in recent times. Their services range from mobile-only checking and savings accounts, to online lending, budgeting, and more. All of this, without a physical presence. The sector is generating significant buzz – a [PwC report on neobank](https://www.pwc.in/consulting/financial-services/fintech/fintech-insights/neobanks-and-the-next-banking-revolution.html) quotes an estimated CAGR at over 46% between 2018 and 2026. In this post, we unveil the reality behind the neo banking hype. The Basics of Neo Banking ========================= While digital banks are a traditional banks’ online arm, neo banks are independent and digital-only entities. Neo banks do not have a physical presence. So customers cannot walk in to resolve their problems. Relying on a party for your finances needs time to build that trust currency. Neo banks seek to address this challenge by relying on the simple, yet robust and reliable digital interfaces. These interfaces are critical to ensuring an equivalent, if not better customer experience vis-à-vis traditional banking, that often involves more manual experiences. To succeed, Neo banks must provide 24×7 customer support and generate a higher Customer Lifetime Value (CLV).  Therefore, processes like Aadhar linked e-KYC and biometric identification (with features such as facial recognition and identity verification) are crucial drivers at a neo bank today.  Are Neobanks Safe? ================== Many tech savvy millennials have already moved almost exclusively to digital payments. However, when it comes to migrating to neo banking as your default option, trust can be an understandable area of concern. But as long as you’re doing your due diligence, you shouldn’t have much to worry about.  Neo banks operate in a regulated space, with licenses from the RBI. In India, payments banks are the closest model to 100 percent digital banks. They are a legal entity allowed to operate as an authorised deposit-taking institution.  It’s also important to note that many neo banks providing relatively higher interest rates when compared to traditional and conventional rivals are currently not offering loans, credit cards or money management solutions such as future dated and recurring payments.  They use advanced Role-Based Access Control (RBAC) logic to prevent malware attacks.  The Advantages of Neo Banks  ============================ 1. **Lower transaction Costs:** With lesser overheads, transaction fees can be significantly lowered –  a benefit that can be passed on to customers in the form of higher interest rates on deposits and other products. Getting 4% on your deposits from your traditional retail bank? You can expect noticeably more from your neobank. 2. **Seamless Customer Experience:** Convenience is the highlight of neo banks. With loan approval, instant payouts, one-click account management, etc. all delivered via technology, neo banks can be a significantly faster experience for most consumers. They can even offer personalized AI concierge services.  3. **Personalised Financial Products with Analytics and AI:** A deep reliance on technology to operate opens up interesting opportunities to study customers’ spending behavior and actions, often thanks to advanced AI and ML algorithms. This can be further used to offer personalised services.  4. **Transparency:** Neo banks offer balance tracking in real time, and eliminate pending payment worries. The more we move away from manual processes, the more likely we are to enjoy transparency in all operations. Neo banks are a great example. The Challenges of Neo Banks =========================== 1. **Absence of In-Branch Services:** While millennials may prefer digitised solutions over traditional financial setups, most baby boomers still prefer to deal face-to-face when negotiating significant financial business. This is more common for financial services for businesses. Neobanks can’t provide a sit-down meeting at a physical branch like the conventional banks, and this may be potentially problematic for some segments of the market. 2. **Variety of Service Options:** There may be a lot that the neo banks may offer in future. However, a good chunk of it will depend on the regulatory environment and licenses. Traditional banks are able to offer a broad spectrum of services, such as term deposits, home loans, etc. which neo banks are currently unable to provide, due to their smaller scale and limited regulatory flexibility. Neo Banking: The Future of Banking ================================== While neo banks have been generating significant buzz already, with the current norms of social distancing likely to continue in the future, neo banks are now more favorably positioned than ever to have their presence felt in the financial sector. Mobile card processing, online payments, loan approval and disbursals will replace traditional banking for a large set of customers.  ![](https://lh3.googleusercontent.com/nbLaBeQQYIUbgu72kJCCOYE8zTFouR_R6NcpzuF74-tEKGWo1v3rK8MfNNxeCG4UVTEgX8qpT8sPAIgIhgafyiZkUgNf-kXpNPxwp-e3rn6hQk7ror6eEe42AJ-WMFp7CYhsr45S) Neobanks are going beyond the general banking offerings (of a deposit account, debit card, and payments) and focusing on customized features for specific target groups. The outlook is bright and expansive for niche user segments. This includes provision of services such as: * Support with tax calculations * Withholding, employee benefits;  * Customer-driven features such as zero or low overdraft rates, fees;  * Support needed in managing accounts receivable and payable and expense monitoring;  * Invoicing and automated bookkeeping;  * Customized support on access by power of attorney, custodianship, familytrust, wealth preservation, retirement benefits, etc.  The shift to neo banks may also be a result of larger banks losing the trust of consumers and entrepreneurs. This is due to the market approach of most banks, which are sales or commercially led instead of being product and customer led. The key to being customer centric is centred around data and giving back to them in multiple forms. [Indian neo banks have raised more than $90 million](https://www.bloombergquint.com/business/fintech-news-indias-neo-banks-whats-so-neo-about-them) from venture capital investors over the last year. The banking value chain is fragmenting into product ownership and distribution. Neo banks are capable of both. With crowded payment segments and lending platforms up against the realities of India’s tight credit markets, the buzz, the money, and most importantly – the customers, are all set to move in favour of neo banks. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Top 11 Fintech Trends That Are Changing Banking Author: Ankit Parasher Published: 2020-05-01 Tags: fintech, finance, bank, Future, Banking, startup, trend URL: https://salt.pe/blog/null * ​ ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-1-1644049146794-compressed.jpg) Fintechs, or “Financial Technology” companies have redefined banking through their rapid innovations in digital services. In fact, according to PwC’s [2019 Consumer Digital Banking Survey](https://www.pwc.com/us/en/industries/financial-services/library/digital-banking-consumer-survey.html), 46% of consumers exclusively use online channels for banking. That’s no surprise, though, since fintech services include digital options for checking account balance, updating account information, making payments and even applying for credit. Here are some of the Fintech trends that are already changing banking. * Rise of digital lending Instant loan apps and online peer-to-peer lending platforms are on the rise. They’re gaining in popularity due to their ease of use and the speed at which they approve the loans. Consumers can now apply for loans and get them sanctioned from the comfort of their homes. This makes digital lending one of the most popular trends seen with the rise of Fintech companies. * Popularity of cloud-native solutions We’re past the stage of cloud computing taking industries by storm. But now, they’re making their presence felt in more direct consumer-facing enterprises as well, with businesses across the world, including the fintech sector, recognising the advantages of shifting their applications to the cloud. Going cloud-native enables banks to save on the money they would otherwise spend on dedicated on-premise hardware and software. The modular, shared approach of the cloud increases efficiency in operations and allows banks to leverage the cloud’s cognitive processing and storage technologies to build deeper connections with their clients. * The rise of Machine Learning and AI Artificial Intelligence and Machine Learning are everywhere now. From simple mobile applications to complex predictive analysis, AI’s use is spread across industries, and Fintech is no exception. In fact, according to a [report by Markets and Markets](https://www.marketsandmarkets.com/Market-Reports/ai-in-fintech-market-34074774.html), the market size of AI in Fintech has been predicted to grow at a Compound Annual Growth Rate (CAGR) of 40.4% between 2016 and 2022. Services such as AI-powered chatbots for 24/7 customer support, data-driven insights into consumer behaviour, and AI-powered tools to predict issues in the financial landscape indicate a seamless synergy between AI and financial services. * Personalisation Fintech service providers have managed to successfully leverage data analytics, machine learning and artificial intelligence to provide personalise solutions for individual consumers and businesses. Such solutions, tailored to the needs of individual customers, often help businesses make positive financial decisions. * Rise of the Blockchain The concept of the Blockchain is not a new one. It was invented more than a decade ago, with the first of the digital currency, or cryptocurrency, being Bitcoin. However, the technology has only gained popularity in the past few years. Several cryptocurrencies have risen in competition to Bitcoin and the blockchain technology has found numerous uses across industries. Blockchain banking solutions are still a novel concept, but the transparency and security they offer are an undeniable advantage. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-1-1644049260786-compressed.jpg) * ​Near-zero use of physical money A fairly easy trend to anticipate — cashless transactions have become increasingly popular in the past few years. From evolved markets like the US where [75% of consumers use digital wallets](https://www.finder.com/digital-wallet-statistics) to India, where [22% of all payments were made through UPI](https://www.statista.com/statistics/1028157/india-payment-systems-share-by-volume/), the world is rapidly adapting to a digital payments ecosystem. With this has come a decrease in the use of cash as a payment method. With smartphones and the internet becoming increasingly accessible to the public, this trend is only expected to rise. * Digital-only banks The rise of digitisation leading to the concept of bank visits diminishing, is another fairly obvious trend. But the fintech sector has taken this a step further, through digital-only banks, or neobanks, which provide banking facilities exclusively online. From signing up for a new account by merely uploading the required documents to processing all transactions digitally, neobanking promises a simple and convenient solution for next-gen customers. And the [world is loving it](https://www.capgemini.com/2019/06/rise-of-the-neobank-a-digital-fight-for-customer-finances/). * The voice revolution With IoT adoption on an upward trajectory and home assistants in an increasing number of households, voice-based search is becoming more and more popular. According to [Google’s statistics](https://www.thinkwithgoogle.com/data/voice-search-statistics/), 20% of all searches in the Google App are now conducted by voice. The banking sector is moving quickly on this trend. An increasing number of banking institutions are adopting voice search to help customers easily access banking services and communicate their requirements, while also providing better encryption. * Significance of cybersecurity With digitisation pervading every aspect of our lives, cybercrimes are [more prevalent](https://www.comparitech.com/vpn/cybersecurity-cyber-crime-statistics-facts-trends/) than ever. From fraud and identity theft to money laundering and espionage, threats to privacy and security are rampant in the digital world. The fntech sector needs to pay close attention on this front. EY’s [2019 Global Fintech Adoption Index](https://www.ey.com/Publication/vwLUAssets/EY-global-fintech-adoption-index-2019-bbc/$FILE/EY-global-fintech-adoption-index-2019.pdf) reports that 71% of Fintech adopters have concerns about security, but a majority of them still prefer digital products. This has naturally led to cybersecurity becoming a top priority, and justifably so. * Disruption of traditional payroll process An overwhelming majority of salaried employees struggle from paycheck to paycheck, with [59% of consumers](https://content.schwab.com/web/retail/public/about-schwab/Charles-Schwab-2019-Modern-Wealth-Survey-findings-0519-9JBP.pdf) doing this in the US alone. Consequently, serious financial issues result, especially for people who are forced to depend on payday loans or borrow from predatory lenders who charge exorbitant interest rates. However, with some assistance from the fintech sector, several businesses are now moving away from the traditional approaches to payroll, to a more flexible approach, where employees can pick a date to receive their salaries, or tap into their earnings before payday. * Higher transparency for customers With traditional banking, customers didn’t have much leverage in negotiations because they didn’t know what the financial institution they were dealing with knew. The transparency offered was quite limited. But fintech strtups are leveraging technologies like AI and the Blockchain to increase transparency for consumers. The Blockchain promises complete transparency in its transactions due to its inherent decentralised nature. Companies are also leveraging AI chatbots to keep customers informed and make transactions more transparent. With exceedingly efficient, and exciting rounds of evolution in financial technology, fintech companies are being able to deliver on superior innovations to serve customers. Blockchain technology, cloud computing, AI and Machine Learning seem to be prevalent in most innovations undertaken. With all the disruptive changes they’ve brought to the world of financial services, fintech companies promise to make an even bigger impact this coming decade. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## 5 Financial Lessons COVID-19 has Taught us Author: Ankit Parasher Published: 2020-04-30 Tags: fintech, finance, money, management, startup, blogging, covid URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-3-1644049513414-compressed.jpg) The Coronavirus pandemic has caused major financial concerns for people all across the world, with extended global lockdowns delivering uncomfortable hiccups to the global economy. If the markets are any indicators, it will take quite a bit of time for a [full-scale economic recovery after Covid-19](https://www.weforum.org/agenda/2020/04/coronavirus-the-economic-recovery-won-t-only-be-u-shaped-it-ll-look-like-a-wheelbarrow). However, with the future looking optimistic and economies trying hard to get back on track, we must learn from this tough period and take measures. Experience is one of the best teachers, so here are 5 lessons that this entire experience has taught us. ### #1 Building a Buffer The first major financial lesson that Covid-19 has taught us is the importance of building a safety buffer. A safety buffer, ideally, should have at least as much cash as you earn in 2 months, on an average. While this number may sound arbitrary, it is theorised by financial experts (and called [the 50/30/20 rule](https://www.thebalance.com/the-50-30-20-rule-of-thumb-453922)) that, on an average, any person should ideally spend 50% of their income on necessities, 30% on luxuries, while saving the remaining 20% for the future. By building a buffer which is worth 2 months’ income, you are essentially creating a safety vest which will help you survive for 4 months in the worst-case scenario. Keep in mind that 4 months is derived assuming that you get no income at all for 4 whole months. If you follow the rest of the tips in this list, you should have some steady flow of cash or the other, extending your “survival period” in an emergency for a substantial amount of time. ### #2 Creating a Second Stream of Income This requires some planning, commitment and a reasonable amount of time. Building a separate stream of income independent of your salary will be very useful in times of crisis. Additionally, it also will serve as a nice additional splurge of cash when things are normal. This second stream of income may be from investments, real estate, setting up a self-sustaining business, or even a passion that can be monetized. The key here is to ensure that you understand that this second source need not be nearly as high as your primary source of income. As long as you’re able to steadily accrue some amount of money, it adds up in the long run and can really help you in times of financial crisis. ### #3 Invest, Invest and Invest People often misunderstand the point of tip #1 (building a buffer) and overdo it. Sometimes they start building up too much of a buffer, resulting in a lot of excess money lying idle, that is never going to be spent. Passive money, which does not earn more money is equivalent to simply losing more money. If you talk to anyone in the finance industry, they will be sure to talk about the time value of money, and how money loses its value over time due to a variety of reasons. For instance, INR 100 was valued much higher 10 years ago, than it is now. The smart thing to do will be to invest and save anything more than 2 months’ income from your buffer, and constantly save and invest around 20% of your regular income for your future. Over time, every single penny that you invest adds up and earns additional income without you having to actively put all your time in it. Starting early and continuing regularly are the keys to ensure that you earn enough money, so you can benefit the most from investing. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/3-1-1644049801091-compressed.jpg) ### ### #4 Diversify Your Portfolio This financial lesson goes hand in hand with the previous one. While investing, make sure that you don’t put all your eggs in one basket. Coronavirus had a huge impact on the markets, causing a lot of money to be lost in the short run. Many who were disproportionately invested in high risk instruments would’ve suffered immensely when the [markets crashed amidst the Coronavirus crisis](https://www.marketwatch.com/story/this-postcrash-recovery-isnt-at-all-like-2009-and-1987-why-thats-a-worry-for-investors-2020-04-24). On the other hand, those with a balanced portfolio across instruments can rest assured knowing that they are still doing relatively alright. Make sure you vary your investments across a variety of instruments based on your risk appetite. Typically, higher risk signals higher rewards, but with lower levels of return, there comes increased stability. By diversifying your portfolio, you’re not ensuring that you earn the maximum possible amount, but you’re certainly ensuring that you lose less. if something goes wrong. ### #5 Make Smart Use of FinTech Your smartphone is sure to have plenty of apps, serving a multitude of different purposes. Why not have an app which helps you manage your finances too? There are apps readily available for financial tracking, easy loans etc. Salt promises to be your one-stop solution for all your financial needs. Especially during times like these, where keeping track of each penny is crucial and managing your wealth is absolutely essential. It’s all significantly easier if you can do it all in one place. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. --- ## Crazy P̶o̶o̶r̶ Misunderstood Millenials Author: Udita Pal Published: 2020-04-10 Tags: fintech, finance, money, startup, millennials URL: https://salt.pe/blog/null ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/1-1644049035736-compressed.jpg) Two days ago, I woke up to a Twitter Trend called [_#BoycottMillenials_](https://twitter.com/search?q=%23BoycottMillennials&src=typeahead_click)_._ I genuinely wanted to understand what my Starbucks sipping, Ola rolling, Swiggy eating generation did wrong to be called out as destroyers of the Indian economy. It all started when Finance Minister Nirmala Sitharaman built a connection between Ola and Uber with the auto industry crisis. But if you ask me, this comment triggered the already lousy image Millennial are carrying on their back. It is so easy to blame a generation for economic failure instead of addressing this issue more maturely and trying to understand the root causes. That being said, I think Millennial are smarter than what you guys give them credit for. ![](https://superblog.supercdn.cloud/site_cuid_ckunzpgt125001pphuz4n48xp/images/2-1644049066721-compressed.jpg) * **We are not kids:** Let’s start with the fact that every time someone drop’s the word ‘millennial’ we begin making a figure in our heads, a kid in hipster jeans with chains hanging from pocket or a girl in skimpy dress taking selfies. The term **Millennials** generally refers to the generation of people born between the early 1980s and 1990s. That makes the oldest Millennial right now is 39, and that doesn’t sound childish to me. * **We are not a financial failure:** A lot of people (our toxic relatives) look at us and bash for not buying a house or car or keep gold in our lockers for easy dispersal at the moment of emergency (now even government believes the same!)But what they don’t understand is that unfortunately, our generation went through the great recession of 2008, a lot of economical up and downs and to top it over the years rates of properties, gold, automobile industry, tuition fees and cost of living has just gone up. And no, we don’t want to pile up more debts on ourselves, and that’s why we don’t invest in these things. So I can sum it up by saying, Millennials went through the recession when they were young (If Oldest millennials is 39 right now makes them 28-year-old back then with no financial cushion fighting economy), and we don’t want to fall in that trap again. * **We are not Killing industry:** No, we are not the ‘Zodiac Killer’ or ‘Jack The Ripper’ of this economy. The reason we have started moving toward a place where we go for rented cars, houses, technically entire lifestyle is because of simple fact, availability of funds. I have already discussed how we don’t want to fall in debt traps; I think we go ahead with a lot of Start-Ups / innovative businesses because they provide us with more accessible solutions. We are moving to that side of the economy more aggressively because as consumers who are ready to pay, we all deserve decent services. * **We are not lazy:** When people look at us, they see a PUBG playing person who leaves everything for the last minute to resolve, and it is disrespectful toward people of my generation. A study by Manpower suggests that 73% Millennial work for 40 hours a week and more. Yes, I know we have been brought up in a tech-savvy industry where a lot of our repetitive processes can be streamlined, a lot of things can be resolved with APIs (Application providing interface) being at our disperse to SAAS (Software as a service) replacing manual work but that doesn’t mean we don’t take our work seriously. **Note:** There is a term called _‘Hustle Porn,’_ which means glorifying the hours you are spending in the office. Millennials know the difference between work hard and work smart, so next time you call someone lazy remember they have intelligently allocated their work and It is a damaging thing to say to anyone. * **We are not ‘discrediting’ marriage as a concept:** Yes, we understand a lot of dating apps are out there but that doesn’t mean we are spending our time having _‘fun time’_ like bunnies with every person we meet, a study suggests that Millenials have fewer partners as compared to previous generations _(data is from USA)_ But what is coming out is, due to debts we have be it from college or in general we have tendency of delaying a long term commitment which on surface makes us come out as commitment-phobic people, but when you get into the layers you will understand our loyalty is very much intact it is just our commitments and priorities in life that has changed. We want to be financially stable (like you suggested us to) before committing to someone. * **We are not financially literate generation:** “[Ramsey Solutions](https://www.daveramsey.com/research/retirement-crisis) commissioned a 2016 survey of more than 1,000 U.S. adults to evaluate the state of retirement in America. In the first of a four-part series based on results from the survey, 38% of Millennials reported they already know how much money they’ll need to retire — essentially the same as Baby Boomers, 37%, and Generation X, 36%.” “Even though Millennials have had less than 20 years to build their retirement wealth, they are not that far behind many of those who are closest to retirement. Nearly 60% of Millennials have less than $10,000 saved for retirement, but roughly half of Baby Boomers are in the same boat, even though this generation has had as much as half a century to save for their retirement.” _Via Udita Pal_ * * * So next time someone says that you have not figured these things out, feel free to send them here. That being said, if you are a Millenial who is finding the financial world difficult we are **Salt.pe** have ready solutions available for you at your disperse. [**Salt.Pe**](http://salt.pe/) is an Upcoming Neo Bank based out of India and promises to be your one-stop solution to all the problems from getting your OTPs on your laptop screen while you are working to managing your money the way you want; we are here to provide you with customized solutions according to your needs in real-time — 100% digital and 200% human. Join the waitlist today and get access to new user benefits tailored just for you! --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---