Things You Should Know Before Getting Your Kid A New debit Card

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In the last few years, the schools are concentrating on teaching the students about the financial nitty-gritty. Yet the school curriculums are still miles away from teaching the children about the basics of money management.

It simply means that the responsibility of teaching your children about managing money falls entirely on the shoulders of the parents. While the theoretical money advice is great, the debit cards from kids debit card company helps you to offer your kids better and more realistic money management lessons.

Kids Debit Card Company

With prepaid debit cards available in the market, it has become easier for the parents to control the expenditure of their kids while teaching them about wise usage of money at the same time. But before you take the leap, check the following pros and cons of giving your kid a debit card and decide whether it is right for your kid to have one.

The Pros

The first and perhaps the biggest benefit of handing a debit card to your kid is that they will learn about handing digital money. Studies have shown that we tend to spend more while using plastic money. While that might not be so good, giving your kids access to plastic money can help them to learn about spending habits.

The kid’s debit card company assures that the debits cards they hand out to the kids are safer than that of carrying cash. While the kids can still lose their debit cards, they can easily lock the card out without losing a single penny.

Paying through the debit card is also an easier and more convenient way of making payment than carrying cash around. Also, the online card statements help the kids to understand their spending habits better and make sure that they spend wisely in the future even though they make mistakes initially.

The cards will help your kids to learn about Atm transactions and will enable them to carry out all the digital expenditure like a pro.

The Down Side

Limited Fraud Protection

This is perhaps the biggest downside of handing your kid a debit card from the kid’s debit card company. If the debit card gets stolen or if your child faces some fraud, the debit card does not provide as strong protection as the credit cards.

More Spending

By giving the debit card to your kid, you are allowing them access to all the money at once. This can simply lead to overspending if you do not keep an eye on the spending habits of your kids. To make sure that they are using the debit card right, you should start with small amounts, and then gradually increase the money.

Kids Debit Card Company

Instil Basic Money management Skill first

Instead of handing the debit card out to your kids, try to teach them about the basic spending habits first. Once you are sure that your child has mastered handling the physical money and understand the concept of buying and spending completely, only then you should give them a debit card of their own.

While handing out a debit card to your kid is no doubt one of the best ways to teach them about responsible money management, you should figure out your parameters first. Consider the age of your kids when you will be most comfortable in handing him/her the card, and then go to kids’ debit card company to avail one for your child.

Difference Between Merchant Cash Advances & Business Loans

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Are you looking forward to expanding your company? Or do you just want to upgrade your already established business? Whatever may be the case, you will need some fast cash for that. This is where merchant cash advance (MCA) comes into play.

Best Merchant Lender in Canada

Go For Merchant Cash Advance

Ask any best merchant lender in Canada and they will tell you that MCA is a kind of financing option and differs from a business loan. For a MCA, a business is provided with lump sum money, especially when it needs it. Technically speaking, it can’t be termed as a loan. It’s a cash advance which is given based on the credit card sales of the business.

A MCA is suitable for businesses that need some capital quickly. It is considered as an alternative to traditional business loan. Unlike a loan, the approval process is not lengthy and doesn’t come with strict credit requirements.

Know About Merchant Cash Advance

A MCA offers businesses the required amount of cash provided the business agrees to make use of the future sales to pay back the advance they took. The best merchant lender in Canada or the MCA providers is not lending money; rather, they are purchasing the future sales of the business.

The cash advances taken needs to be paid off via credit card sales. Hence, every time a business gets paid via a credit card, a percentage of it would go for paying back the advances. This process repeats until the entire advance amount is returned.

Best Merchant Lender in Canada

Laws and Regulations

MCA providers don’t act like banks. As a result, the interest rate could be very high. However, the positive side is that a business in the dire need of money will get cash instantly. As there are no regulations, businesses that don’t qualify for the business loan can opt for an MCA.

Ideal for Restaurant Businesses

Restaurant businesses have high credit card sales. On a closer look, they don’t have good business credit to entitle for a business loan. For this reason, they can take help of the best merchant lender in Canada.

MCA vs Business Loan

Knowing the difference between the two is very important. This would help to decide on the best option for the business.

Time: A MCA gets instant approval; whereas, a bank loan takes a lot of time as paperwork is involved.

Approval Rates: The approval rate for an MCA is very fast. Companies that don’t qualify for business loans can opt for a MCA.

Collateral: Unlike a bank loan, there is no need of any collateral for MCA.

Repayment: The repayment is made based on the credit card sales of the business. Hence, there is no fixed date for repayment.

Experience: A business loan requires the business to be in operation for more than 5 years but for a MCA a business needs to be in operation for only 12 months.

Before seeking the help of the best merchant lender in Canada, one should know that MCA comes with its pros and cons. However, the pros outweigh the cons. It’s a personal choice if one should go for a business loan or a MCA.

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