Tips To Buy The Best Equipment For Your Salon & Spa

January 17th, 2019 by admin

If you are planning to start a spa or salon, then you would already have guessed how having the perfect equipment is very important for the success of the venture. To pick the right spa or salon equipment, consider the following factors-

  • Matching The Space: Make sure that the equipment blends very well with the overall design of your spa or salon. So, for a feminine themed spa, ensure that you have equipment that is curvy and smooth. The colors must also be warm and comforting. There is no point in placing blocky, rectangular looking equipment in a spa if you mostly want it to feel feminine. That is just a bad design choice. And given a large number of brands, it shouldn’t be too tough for you to identify equipment that matches the look of your business place. If you have difficulties in choosing the equipment, consult a professional designer.
  • Cost vs Quality: Obviously, the cost of the equipment must be within your budget. But sometimes, you may want to buy equipment that is of a high quality, but your budget may not allow it. In such situation, you can look at other options to acquire the equipment rather than forcing yourself to write it off as something too expensive. For example, there are many aesthetic equipment leasing companies, who will be more than happy to lease, you the equipment of your choice without any down payment. So, look for leasing options in your area and contact them if necessary.
  • Assembling: Some equipment will be shipped to you only in parts, either because they are too big or because it is the most convenient shipping option. But either way, having to deal with unassembled equipment can be quite a pain. You may not even be able to put it together correctly and will have to spend extra money to get a professional to assemble the equipment. And in the worst case scenario, you may assemble it imperfectly and cause irreparable damage to the equipment. To avoid such situations, remember to ask the seller, whether the equipment will be sent to you fully assembled or if you have to assemble it yourself. If it is the latter, it may be better for you to look for other sellers or manufacturers.
  • Long Lasting: You will be running the business for a long time. Therefore, it makes sense that you only buy equipment that will also last for long. Check the reviews of the various equipment online and make sure that they are durable and dependable, If possible, you can visit other spas or salons using the equipment you ask interested in and them how it has been holding up after being used for many years. But if you have no plans for purchasing the equipment, and are only looking at the aesthetic equipment leasing options, then you obviously need not worry about the life expectancy of the equipment since you can easily replace them whenever you want.

Make sure that you keep the above points in mind when you shop for salon or spa equipment, and you are sure to pick the equipment that is a perfect match for your needs.

How Do Credit Card Companies Make Money?

January 11th, 2019 by admin

Credit cards have gained much popularity in India over the last few years. Public sector banks as well as private banking institutions have come forward to launch a host of credit cards suiting customers with different types of needs. HDFC Credit Cards and SBI Card are the two companies with the largest market share. While banks are ready to offer you with a small loan in the form of credit cards, have you ever wondered how these banking institutions make money from these ventures?

The three main ways how card issuers make money is through the annual fee of the card, interest charged on late payment, penalties on skipping EMIs, etc. At the same time, they also earn from the businesses that accept these cards. Businesses are required to pay transaction fees to the banks which also makes up for significant earning of the card issuer banks.

But before we dig deeper into how they make money, let us first understand the term ‘Credit Card Companies’. It is easy to get confused between credit card issuers and credit card networks. An issuer is the bank or financial institution from which you take the card. You are taking a loan from the card issuer and paying back to them. A credit card issuing company is usually a bank. On the other hand, credit card network refers to companies that process the transaction. Currently, there are three main networks in India- VISA, Master Card and RuPay. Apart from these, American Express and Discover cards can also be found.

So, when you make a transaction with your credit card, your money moves electronically from your bank through the network to the merchant’s bank.

How do credit card companies make money?

As mentioned above, your bank makes money majorly from you and also from the merchants where you use the card issued by the bank to make the payment. Banks or financial institutions make money in the form of-


Banks charge different types of fees from their cardholders- some fees are to be paid by everyone whereas other types of fees are levied on condition. Let us talk about these fees and charges-

  • Annual Fees- You have to pay annual fees towards your credit card, especially when you are an elite cardholder and enjoy higher benefits than normal users. This is to be paid by all users. However, some banks may set a condition of spend based annual fee reversal scheme.
  • Cash Advance Fees- When you withdraw money from an ATM using your credit card, the bank charges a minimal fee for it which is usually correlated to the amount you withdraw. This is also included in the card issuer’s earnings.
  • Late Fees- Your card issuer charges fees from you if you delay your EMI payments. Banks make more money from late payers in the form of late fees.
  • Balance Transfer Fees- When you transfer outstanding balance from one card to another, the bank charges fees from you which again becomes its earnings.


The bank or financial institution has just gifted you a credit line. You have to pay the interest for the loan that is offered to you in the form of credit card. This interest cost adds to your expenses and is a method of earning for the banks. Interest on credit card is charged on daily basis for as long as the amount stands outstanding in your account. This is why experts always advise you to pay the total outstanding amount in full every month because interest will accrue on any amount that stands unpaid.

Let us understand this with the help of an example. Suppose the billing date is on 4th of every month and payment due date falls on 29th of every month. APR = 24%

  1. 10th March- Apparel Shopping- Rs. 5,000
  2. 13th March- Bill Payment- Rs. 2,000
  3. 19th March- Gadget Purchase (converted into 6 month EMI)- Rs. 12,000
  4. 22nd March- Dining Bill- Rs. 1,000

Now considering that the person does not have any outstanding amount from the previous bill, he will have to pay Rs. (5,000 + 1,000 + 2,000 +2,000) = Rs. 10,000.

This will be the total amount due on 29th March. Now if the person chooses to pay only Rs. 6,000, the remaining Rs. 4,000 will accrue interest for each day until the amount is paid in full. Considering that the user again pays Rs. 2,000 on the 10th of April, let us see how interest cost works out-

Interest = (outstanding amount x 2 percent per month x 12 months)* (number of days)365

In this case, the total interest charged would be Rs. 52.60 which is a total for Rs. 4,000 that lies outstanding for 11 days and Rs. 2,000 that lies outstanding for 18 days until the next payment. This is the reason why those who only pay minimum amount due tend to fall into debt burden sooner. Cardholders should also note that when an amount is outstanding in your statement, the new purchases that you make are not eligible for the interest free period. This is why interest charge is the easiest way how banks make money out of your credit card.

Interchange Fee from the Merchant

When you use your card at a merchant terminal, the merchant also pays a percentage of the amount to the bank as processing fees. This will also be added on to the bank’s earnings. It usually ranges between 1 to 3 percent of the transaction value but may differ from merchant to merchant.

How to save yourself from paying too much to the bank?

Savvy customers plan their transactions and payments in a way that they have to pay the least amount to the bank. These are the habits you can adopt to cut your costs-

  • Pay your entire outstanding balance every month; just pay the minimum amount due is not a good practice.
  • Set alerts for your payment due dates to avoid missed payments which entail late fees.
  • Create an emergency fund to replace costlier options like cash advances from credit card.
  • Choose low annual fee or free credit cards and even if you select a card with high annual fee, make sure that the rewards are worth it.

Cash Flow Tailored Lease To Make The Sale

January 3rd, 2019 by admin

A few years ago, I developed a relationship with a vendor of specialized point of sale equipment, who had not effectively incorporated the use of leasing as a tool to help their clients overcome budget constraints.

One day I was speaking with a sales representative, Paul, over a cup of coffee and asked my usual question, “How’s business?” After crying the blues and blaming everyone but himself for his poor sales results, told me that he wanted out of sales, and felt he was better suited for a job which would provide him with a regular pay check.

Feeling his frustration, I then asked Paul what attracted him to sales, and whether he really, deep down, wanted to leave the profession. He responded by telling me that he enjoyed the freedom, the potential to a lot of money, and more importantly, the tremendous sense of satisfaction he received by making a sale. And then proceeded to say that he really did not want to pack it in.

Having been involved with sales people for a number of years, I offered to take him under my wing and work closely with him for the next month.

My intent was to condition him to start using leasing proactively, and show him how it can be used to close sales. The first thing I asked him to do was to generate a list of “sitting tight” prospects-you know, the ones that were in thinking mode or putting the purchase on hold for a future date. The second thing I asked him to do was to start making appointments with these companies where I would accompany him on the sales call. I gave him one week to do this and get back to me.

Three days later, Paul called saying that he had set an appointment on Tuesday at 10:00 AM with the owner of a company where he had previously provided a quote for 10 systems totaling $280,000. He proceeded to tell me that we are probably wasting our time as he will not be purchasing any point of sales equipment until next year.

The company was a retailer which sold female beauty supplies including specialty soaps, body washes, and other skin care products. The company had 10 locations throughout Western Canada, and wanted to replace their current antiquated system. It was September, Christmas season was coming up, and the client made a decision to put the acquisition on hold until the next year.

So, we met with the client and his opening statement was, “I don’t know why we are meeting again. I thought I made it clear that I am not going to proceed until next year”. I looked over at my protege’ and saw an I told you so smirk on his face, however, the prospect’s comment was music to my ears. I knew that we had a lot of digging to do, however, and with the right strategy and questions, we could quite probably turn this into a sale this year not next year.

I took control and began asking questions.

Here’s how the conversation went…

Me: “So how long have you been looking at replacing your current POS system?”

Client: “About six months.”

Me: “Sounds like you have invested a lot of time in the process.”

Client: “I sure have. I have met with a number of vendors and it is not easy doing a full analysis of the various products available.”

Me: “Have you chosen a vendor or are you still looking at the specifications of more than one product?”

Client: “No, I’m definitely going with Paul’s product, but as I told him, I’m not doing anything until next year.”

Me: “I see. What is your reason for upgrading your current system?”

Client: “We carry a vast number of products, and our current system cannot handle the amount of small ticket inventory. Paul’s system will allow me to better manage ordering procedures, and tell me what items are not moving.”

Me: “Are you telling me that there would be a substantial cost saving, by installing the new system.”

Client: “Absolutely. It is now September, and I just don’t think it is feasible to have it up and running, with the staff fully trained in time for the Christmas season, which by the way begins in early November. I wish I had of started sooner in the year.”

Me: “Paul, is it feasible to have your system fully operational with the staff trained by November 1st.”

Paul: “Absolutely! We have a dedicated team of service technicians and customer support trainers in all of the locations through Western Canada. In addition, we will assign a specific IT specialist to the project who will be available 24/7.”

Me: “It seems clear to me that Paul can meet your deadline and in fact will go there extra mile to ensure that the transition will be seamless. Do you have any reason to doubt him?”

Client: “No. I have checked their references and they seem to deliver on what they commit to. $280,000 is a lot of money you know.”

Me: “I recognize that, however, you did state that there would be substantial savings by replacing your current system.”

Client: “Yes, there are, however, we opened three new stores this year, and I’ not too keen on approaching my bank again for a loan or extension of my line of credit. To be prepared for the Christmas season, I have to use my line to by a massive amount of inventory.”

Me: “If we were to set you up on a 4-year lease at about $7,300 per month, would you be prepared to move ahead and have the new system up and running by November 1st?

Client: I really prefer to own my equipment.”

Me: “With due respect, if a purchase is secured by a bank loan or line of credit, you really do not own the equipment. With a lease, you are in effect creating a separate credit facility outside of your conventional banking relationship. In addition, the lease payments are fully tax deductible.”

Client: “In this business, 70% of my revenues are generated in November and December, and with a lease, I would be stuck with that $7,300 payment for the entire year. In months where my revenues are low.”

Me: “I appreciate that, and in fact you are not unique. We have many clients in similar situations, and have addressed the situations by providing what we call cash flow tailored leases. I we could provide you with a lease where 70% of your payments were made in November and December, and the remaining 30% were spread throughout the remainder of the year, would you be willing to to move ahead with the new equipment today, rather than waiting until next year?”

Client: “You can do that?”

Me: “Absolutely.”

Client: “Sure. I think that would work.”

Me: “In that case, I will prepare some exact numbers for you and come back this afternoon in order to get some credit information as well as your current financial statements. In the meantime, Paul will prepare his documentation, and we will get the order placed.”

Client: “Sounds great. Can you be back here around 2:00? I’ll have my information ready for you.”

Me: “Perfect. See you then.”

There you have it!

A Win-Win-Win situation. Paul got the sale, the client got the much needed point of sale system sooner rather than later, and not to mention, I got the lease

Why was this sale made?

First of all, Paul the sales representative was willing to walk away from the sale today, and wait until next year. He failed to realize that the opportunity was still there, however, he was not aware of the tools and resources available to him to be able to close the sale today. As with many prospects, the client hid the real objection. In this case, the real objection was financial in nature, and due to the expansion during the year, he was reluctant to approach his bank again.

By bringing in a leasing specialist, Paul was able add a new dynamic to the sales process, and ultimately solve the financial issue for his client. This particular situation involved a great deal of creativity in order to firstly identify the needs of the client, and secondly, present a solution which closed the sale.

Naturally a sales representative like Paul would not be expected to have the same level of knowledge as a leasing specialist, however, in order to be properly equipped, should have an awareness of what type of leasing flexibility is available.

This provides an excellent example of how leasing can be used to control and close a sale. Be sure to involve Keltex Financial early in the sales process, and let us help you.

What All Should We Know About a Unique Taxpayer Reference Number?

December 28th, 2018 by admin

What is a UTR number?

The UTR is abbreviated as Unique Taxpayer Reference Number that connects to Her Majesty’s Revenue and Customs (HMRC) and is a series of 10 numerals. These numerals are unique and differ from person to person. This is sent by HMRC to individuals and establishments who are subject to the payment of tax. HMRC is responsible for the collection of tax and was started in the year 2005.It is key and without which an establishment or an individual subjected to tax payment cannot operate. If an establishment fails to notify HMRC, then it would be subjected to heavy fine and the worst case scenario would be that of facing criminal prosecution.

How to register for UTR?

It is a unique series of 10 numerals that is provided by HMRC. Once a person starts an organization or an establishment, they have to intimate HMRC, and the number will be sent by them. While sending the self-assessment tax return, the UTR should also be sent along with that. If the UTR is not sent, then the concerned individual has to pay a late penalty and obtain their UTR number.

Accountants in Manchester and all over the United Kingdom have witnessed cases where people become aware of UTR only after they send their self-assessment tax return. Every individual and company has to notify HMRC and receive their UTR on time, if not then they would be fined a late penalty.

Responsibilities of Accountants and financial advisors pertaining to UTR:

• The prime responsibility of accountants and financial advisors is to ensure that the company intimates HMRC in the first place. Running a company without the knowledge of HMRC could lead to severe legal obligations.
• After intimating HMRC, they would send the UTR which is important for a company to manage its tax obligations.
• Every document sent from HMRC would consist of the UTR.
• The UTR is associated with the company and acts as an identification mark for the company. Thus all establishments and self- employed business people should get the UTR and has to be the number one priority of accountants and financial advisors.
• Accountants in Manchester and all over the United Kingdom feel that as people who are responsible to handle money, it’s their responsibility to intimate their company and bosses to in turn intimate HMRC get themselves registered

UTR Number and its significance

It is key and without which an establishment or an individual cannot operate. The number is given by HMRC to let a company manage their tax obligations. Not getting a UTR can lead to serious late penalties and it’s mandatory for companies to get their Unique Taxpayer Reference Number. It’s important to keep the following things in mind while registering for self- assessment tax return and obtaining a UTR.

• Make sure you provide accurately and authenticated information while registering.
• It is advisable to have a financial advisor or an accounts service company to guide you and your company throughout the process.
• Details such as your full name, address, date of birth, business address and others have to be provided accurately. Make sure you cross-check the information before sending them in. HMRC is extremely particular about these details and will provide the UTR only if it’s a hundred percent authenticated.

What is the difference between a personal UTR and a Business UTR Number?

A personal UTR is given to an individual whereas a Business UTR is given for an entire company. Every businessman needs to have a UTR and can provide their personal UTR while paying their tax. By providing the Business UTR, the company’s taxes can be paid and the number represents the entire company whereas a personal UTR represents an individual. While paying taxes for the company, the personal UTR cannot be provided and the UTR assigned separately should only be provided. You should keep in mind that a UTR is a unique number and differs from individual to individual and from an establishment to an establishment.

How to store the UTR Number?

With the invention of technology, huge amounts of data can be stored easily and effectively. Important data such as UTR Number can be stored on computers in different locations so that the probability of the data getting lost is less. UTR number is of extreme importance and has to be stored for various purposes. Another way of storing the UTR is by filing the documents received from HMRC. HMRC always sends documents with the UTR number next to the heading Tax Reference, UTR or Official Use. Thus by filing these documents meticulously, one can lower the chance of losing the UTR. If you happen to lose your UTR Number, then you can contact the HMRC helpline number and request for the UTR number.

Things to take care while handling the UTR Number:

• Get your UTR by registering for self- assessment tax return with HMRC, and you will receive your UTR.
• Make sure to intimate HMRC when you begin a new company or an establishment.
• Without the knowledge of HMRC, a company cannot operate and will be fined for it.
• The UTR is a 10 digit unique numeral that is followed by the letter K at times.
• Always consult a financial advisor or an accounts service registering for self- assessment tax return.
• Provide accurate details to HMRC that are verified by your financial advisor.
• Remember your UTR and make sure your financial team does too. If not, then go through documents that are sent by HMRC to obtain your UTR.
• In the case of the UTR getting lost, you can contact HMRC’s helpline number and request them to send the number again.
• If you are a partner in any company make sure the company registers itself for self- assessment tax return with HMRC.