Eco Obs

Tips and strategies for your finances

Learn More
Why do construction companies use surety bonds?

Why do construction companies use surety bonds?

Why do construction companies use surety bonds?

From the Equipment that they use to their accounting policies (percentage of completion), construction companies do things their own way. One of the nuances of their business involves the usage of surety bonds. Understanding why construction companies use surety bonds and the benefits that they provide is important to learning about their business model.

What are Surety Bonds?

Surety bonds are best thought of as part Credit vehicle and part insurance contract. Surety brokers issue Surety Bonds to the owner of the property as protection from the construction company. As such they are an agreement between three parties that provide protection to the building owners and subcontractors. The contractor still bears risk as does the surety company.

What are the Benefits of Surety Bonds for Construction Companies?

Construction companies and owners benefit from surety bonds by being able to attract subcontractors who have a drastically heightened chance of being paid with a surety bond. Surety bonds will insure that they are compensated for their work which helps them to retain quality contractors. When a surety bond is used in this context, it is known as a payment bond. Surety bonds will protect the owner from the general contractors performance by ensuring that they will perform their construction in accordance with standards. When surety bonds are used in this context they are called performance bonds. Finally, there is often a significant amount of competitive bidding associated with getting an construction job. In this context, surety bonds are called bidding bonds and help to reduce the risk that these entities are facing by possibly over bidding on an job.

What are the Costs of Using Surety Bonds?

There is obviously a cost of a surety bond that is paid to the surety company as a fee for issuing the bond. This fee is typically calculated as a percentage of the amount the surety bond covers. Surety bonds are often regulated by various state insurance departments and therefore have regulations associated with them. Further, they only provide coverage up to a certain limit and getting additional coverage may be expensive. Surety bonds can be somewhat confusing to understand and therefore they may require the usage of lawyers, consultants, or financial professionals to understand and negotiate the terms of the surety bond agreements. Further, the surety company may take a significant amount of time to learn about the contractor’s financial position and their level of expertise, which may lead to a delay in the construction of the job.

Should You Use a Surety Bond on Your Construction

If you are an owner of a building looking to have a project developed it is important to have a contractor obtain a surety bond to protect your building, except for the smallest jobs. Contractors should develop relationships with surety insurers who can quickly approve the contractor and charge competitive rates due to the presence of repeat business. Further, many public jobs require surety bonds to bid or contract for work and it is therefore a necessity for them to obtain these contracts before obtaining an contract.

Dealing With Settlement Risk

Dealing With Settlement Risk

Financial Referees

Settlement risk is a real threat for those who are involved in financial transactions of various kinds. The risk of one party not paying and the other not delivering on services is a very real threat, whether intended or not. Therefore, there are financial services companies whose task is to reduce the risks. These could be privately run companies or governmental regulatory bodies. Among the private financial services companies, one of the most noted ones is The Depository Trust and Clearing Corporation or DTCC for short. It is a US based company settlement as well as clearing services for finance related markets. The main role it plays is to act as a central custodian of securities on behalf of sellers and buyers.

The DTCC was established back in 1973 as the DTC, because of the fast growth experienced by the securities business in the late 1960’s. Basically, when things grew too fast, the paper work portion could not keep up with it. In those days brokers had to literally employ messengers to send checks and certificates. This method soon became highly inefficient. It was out of this need that a centralized system to help with financial transactions came about in the form of the DTCC. Later the company merged with another financial service company known as NSCC or the National Securities Clearing Corporation and that is how the name changed to DTCC. The NSCC was actually established before DTCC.

The European Connection

In Europe, there is a similar service provided by an organization called the EuroCCP which is short for the European Central Counter Party Limited. It is actually a branch of the DTCC which gives equities clearing for Europeans. The headquarters are in London and it is regulated by the UK’s Financial Services Authority. EuroCCp started in 2008 and in its early days the organization did clearing with the trading platform known as “Turquoise”. Now it has been cleared to use other trading platforms and gives central counterparty service for equity based trades such as NYSE Arca, SmartPool, and Pipeline Financial Limited. Citi Global Transaction Services now acts as an agent for the settlement of trades cleared by EuroCCp. This service is now available in all major financial markets in Europe such as France, Belgium, Denmark, Austria, Finland, Italy, Ireland, Portugal, Norway, Netherlands, Sweden, Switzerland, UK, Spain, and Germany.

What about the banks?

So far we have discussed the various financial services solutions put in place to help mitigate settlement risk as well as other services to help matters go smoothly. But there is one more important place that can help with settlement risks and that is the banks themselves. Any bank, especially one dealing with something like Fx trades, should have a comprehensive framework in place to take care of risk management. If this is the case then the bank will not only be able to handle settlement risk, but also operational risk, legal risk, principal risk, liquidity risk and replacement cost.

Are There Legitimate HYIPs?

Are There Legitimate HYIPs?

Are There Legitimate HYIPs?

Are you familiar with HIYP’s or otherwise known as High Yield Investment Programs? Have you ever wondered how it makes money? Most of these companies seem to promise on the surface, but after a while, they end up stealing your money and then disappear after six months to almost a year. It makes you wonder if there are any out there that promise to make your money grow and help you earn legitimate money without worrying about losing it.

In case you didn’t know, these HIYP’s are operated based on a Ponzi scheme, which is a pretty dangerous business. These Ponzi schemes are investment scams that only deliver empty promises like unusually high investment returns.

This is often the reason why people seem to be skeptical about companies that operate a business this way, which is why it makes us wonder if there are HIYP’s that operate legitimately.

If you are wondering as well, you do not need to worry because in this article we will be discussing HIYP’s and how they end up making money regardless if they are legitimate or not.

How do HYIP’s make money?

As mentioned, most of these companies are not real, and because these enterprises do not deliver most of the time, a lot of people get scammed and sometimes hunted down because they also get other people to join them and invest the same amount of money to participate.

The way these companies operate is, they will ask you to spend a certain sum of money with their business, and sometimes it can range from a small amount to a significant number. The larger the amount you invest, the bigger the return you get and in record time. This translates into a yearly-uncompounded return figure, which is highly unlikely to be possible by legitimate investment business.

The only way that you can make money out of these companies is by asking another person to join you, and in return invest the same amount as all the other people. It is like an illegitimate form of network marketing, but these businesses rarely deliver on their return of investment. In short, these are referral programs, which require you to invite people to invest in the same business.

Are there real HIYP Programs?

Unfortunately, we all want to believe that there are companies out there that operate legitimately but sadly, there aren’t many. However, if you would like to do your research, there are ways that you can find out if these sites you want to join are real or fake, e.g. by using hyip monitor. And here are some additions signs and tips that you should look out for:

Company address certificate

  • Company address – for sure, most HIYP companies will have their business address listed on their websites, just like anyone else, we will naturally feel safer to invest with a company that has the above information present. But you should also know that there are some enterprises that use fake addresses. To ensure your safety, do not treat any address listed on an HIYP site as a sure sign that the company is legitimate. Be sure to check it out on Google maps first and do your research to ensure that the business is real.
  • Certificate – almost all HIYPs show a certificate on their website that may seem legitimate, but it can be pretty obvious if the certificate has only been bought somewhere. If you want to be sure that they are real, you can search for the company’s registration number. Take note, that anyone on the Internet can come up with their company that is based on any business using a fake certificate, so always ensure to do your research.


The Five Things You Need to Know Before You Buy or Sell Gold

The Five Things You Need to Know Before You Buy or Sell Gold


In the Forex trading world, Forex Pro gold is known as “precious metals”. There are many traders who prefer to trade these compared to other gold products. Buying and selling pro gold has become a relatively easy thing to do online. It can also be very lucrative.

It has become so easy that many people tend to fall into certain traps. Beginners are not the only one who fall prey to some of these traps. There are a lot of seasoned pros that fall prey too. Sometimes it is nice to have a healthy reminder.

  1. Buying too much

It is safe, yes. However, it can also still be considered volatile. You should only be doing up to 5% of your entire portfolio, no more. When you do find something you like, do not buy in excess. It is better to diversify. This way you have a backup plan in case something happens.

2. Keep up with the forex news

There are many who assume that this is just for the beginners. It is not. Those who have been doing this for years still need to keep up with what is going on. How else can you stay ahead of the game? You need to keep an eye on the GDP, interest rates, and inflation. Any one of these can influence your choices. Listen to when someone tells you that buying a specific pro gold product is not going to pan out.

The forex subreddit is a great start:

3. Do a read out in your market

A read out is a technical analysis of how each gold item is doing within your market. You need this information, just as you need to pay attention to the news every day. You need to know how the markets are doing. This way you can make good choices.

There are plenty of resources and tools are your disposal to do this. Use them. These indicators will give you a good idea of which direction to take. They will also give you a heads up as to where the red flags are. These are not full-proof, but they come pretty close.

4. Leverage can be a good thing

We all have leverage at our disposal. What matters is whether or not we use it. We have to know and understand the leverage we have to use it properly. Some make a habit of using vast amounts of money to offset a potential win. You do not have to do this. This is why you have the leverage tools. You will still win. The only difference is you will not have to pay so much to do it.

5. Practice makes perfect every time

To make the right choices you need to become better at what you do. You are going to crash and burn with this. Everyone does. The point is to keep going. Make your mistakes. Pick yourself and dust yourself off. You try again. It is that simple. The more you do it, the better at pro gold trading you will be.

“A person’s success is not defined by how many times he succeeded. It is defined by how many times he failed, learned, and got back on the horse again”.

How to Apply for a Loan

How to Apply for a Loan

Whether you’re applying for an auto loan, mortgage, personal loan or payday advance, you’ll have to use a certain etiquette and strategy to get it right. You’ll have to have all of the appropriate paperwork together, and you need to take the appropriate steps so that you can walk in with confidence. The following are some tips for you:

Check your Credit

The first thing that you should do before you apply for loans is check your credit. Your credit score and report will let you know the chances that you have of hearing a positive answer. If they are low, then you will want to try to repair your credit before you request new loans. Dispute anything that looks unfamiliar and take care of old accounts before you move forward. Contact an attorney or debt repair specialist if you need to.

Review Your Budget

It may seem extremely tempting to apply for a loan at this moment, but you may not be able to afford it. Take a moment to calculate your usable income and see if you have anything left after you pay your bills. Quickly subtract your monthly expenses from your monthly income and see what you have. If the number is not positive, you should not take a loan. The only loan that may help you in that situation is a debt consolidation loan.

Gather Your Documents

If you pass the budget test, you can move on to gathering the documents that you will need for your loan. You will need a picture identification or passport, proof of residence and proof of income. Your proof of income is the most important document other than your identification. It lets the lender know that you are capable of repaying the advance that he is considering giving you. You will most likely qualify for a payday loan if you work a regular job because the lender can withdraw the repayments from the bank account that you give him. Your bank information is another piece of information that you will need to have on hand if you are applying for one of the quick cash advances or installment loans.

Visit the Site

The next step that you will need to take is contacting the firm to go through the application process. You can do this one of three ways. You can walk into the facility with your paperwork in your hand. You can call the dedicated number and apply with a representative. Alternatively, you can complete an online form and request an advance. A loan specialist will contact you ASAP. The general turnaround time for quick cash advances is about an hour. Other loan types can vary from 24 hours to as long as two weeks. You may visit best bank in Malaysia for more information.

The Untold Ways to Not Buy Gold Bars

The Untold Ways to Not Buy Gold Bars

Gold bars can become a valuable asset to your finances. You just need to know how to invest in gold properly. Many times the reason why some investments do not work out is because they did not invest the right way. In order to set you on the right track, I have several pitfalls to avoid. These are very common amongst first-time buyers.

Do Not Pay Too Much for Your Gold Bars

The day you buy, check out the prices on average. No buyer should be paying a high price. Look at the spot price. Do not buy over 8% of the spot price. You should be between 5-8% for the markups. You are getting ripped off with any rate higher. This is according to U.S. Mint.

Buying for Historical Value is a No-No

This is part of the bait and switch program. They offer gold bars based on their “history”. The only value these bars have is for their “melt value”. Any other value is only there to sucker people into buying. This works especially with first-time buyers.

They think they are buying a piece of history and they are not. Do not be a sucker. Know what the true value of the bar is before you invest.

Some Other Tips to Think Over

You should never be paying a premium for the “proof bars”. This is another rookie mistake. Those of you who are collectors and investors, you need to stick with the regular bars.

Never buy over the phone. There are many cold callers out there trying to scam on people buying gold bars. According to the Federal Trade Commission, these boiler rooms deals are on the rise. These people use high-pressure sales techniques to make their deals. Do not get involved with this. Many of these calls come from the Do Not Call List Registry. Your number may be on the list and they will call anyway.

You should buy gold bars from an actual person sitting in front of you. Deals like this need to be as transparent as possible.

Do not buy into the “confiscation scare tactics” either. Some will claim your gold is very rare and not available anymore. Others will use the FDR scare tactic approach. You can look up the FDR scare tactic approach here to get more information. The person is trying to intimidate you into buying or selling. Do not fall for it. It is a scam.

Do buy using any kind of leverage. Some like to use leverage to control the outcome of what their gold bars are worth. Gold is volatile to start with. Margins like this do not work out. Many rookies make this mistake and lose their shirts. Leverage affects the outcome of the sales commission too. It is better to stay clear of this cat and mouse game.

A Brief and Practical Overview of the EB-5 VISA Program

There are many different sides to the immigration process and one of them involves immigrant investing. That’s right, if an immigrant has enough money to invest within the American economy they could ultimately obtain citizenship within the United States.

The EB-5 visa program is the name of the immigration program that allows foreigners to invest within America’s economy as a means to obtain citizenship. The following information will explain how this process works.

The EB-5 Immigrant Investor Program was created in 1990 by Congress. This immigration program is extremely unique. Foreign nationals who can invest at least $500,000 or $1 million will be given a green card. There are rules for foreign national investments.

Foreign nationals must invest the above dollar amounts in new commercial enterprises or into an area where 10 new jobs can be created or preserved. The foreign national and their family cannot directly obtain employment for the jobs that they create with their investment.

Regional Centers have been set up to use the funds for investing. They help to facilitate the use of the funds so that a foreign national can easily invest their money into something that is viable. Foreign nationals can also create new commercial enterprises.

Foreign nationals usually created various businesses that already had a proven track record for success. These individuals can also invest their money into risky ventures as well.

After a foreign national makes their investment and their application is approved; they will be given a conditional permanent residence status that will be valid for about 2 years. During the course of this 2-year time period, a foreign investor must submit evidence that proves there investment was valid.

A foreign investor must provide paperwork that shows that the full amount of required money has been made and that 10 jobs were created from the investment. Rules also allow evidence for 10 jobs that have been created or that will be created within a reasonable amount of time. As long as this evidence is presented before a 90-day deadline during the second year; a foreign investor will be able to obtain citizenship.

Congress created the EB-5 immigration program to help stimulate the American economy by producing more economic activity. This activity was also started as a means to allow foreigners to be productive members of American society and not a drain on taxes.

The program has proven to be successful there has been well over 4,000 investors a year who has used this program as a means to gain entrance into the U.S.

EB-5 Visa requirements apply for investors and their immediate family. The immediate family includes a spouse and children who under age 21. The investment does not have to be just money. It can also include inventory, equipment, tangible property or secured indebtedness.

Investors must also put their money or economic enterprises into areas of the country where the unemployment rate is at least 150 percent of the national unemployment rate. Rural areas also count. A rural area must have a population of 20,000 or more. Investors can also place their money into various businesses as well that meet investing guidelines.

New commercial establishments must have been made before November 29, 1990. The EB-5 immigration program is a great investment scheme for foreign nationals who have the means to help stimulate the U.S. economy while relocating to another country.

How to effectively manage your money

How to effectively manage your money

You have worked hard to earn your money, so the next step is to protect it. Money comes and goes, and if you want it to last, you need to become disciplined about your spending habits and learn to save. We have financial experts that can provide you with valuable tips and suggestions on how to effectively manage your money.

Sound Money Management Tips

We will teach you strategies for getting the most out of your money. You will learn how to properly handle and balance your finances by setting up a budget. You will also get tips on how to make every dollar stretch by getting the best bargains and not paying high prices on products and services that you purchase. Our finance professionals will show you how to:

  • Track your spending and purchases.
  • Balance your checkbook each month.
  • Cut back on unnecessary expenses.
  • Pay discounted prices to save money.
  • Put aside savings for a rainy day fund.

Strategies for Investments

If your financial goal includes investments, our advisers are here to help you decide which options are best suited for your needs. We can guide you by providing information about how to invest wisely.

There are many ways to invest your money for increased potential earnings in the future. We will teach you about the risks associated with various types of investments and what you can expect in return.

We will help you down the road to financial freedom by going over all the details to get you started with investments. Our professionals will cover all aspects of the process as you work toward your goal by:

  • Showing you the advantages of each type of investment and what it offers.
  • Explain the risks associated with investing your money.
  • Show you how much money you can reasonably expect to earn with your investments.
  • Give you tips on which investments offer the best tax advantages.

 Protecting Yourself with Insurance

Being savvy and wise with your money includes knowing how to protect yourself and your family with insurance. Having an insurance policy is the best form of protection to cover you from a variety of circumstances including accidents, health care emergencies, death, or property loss.

Our financial advisers are trained in all aspects of insurance and can give you advice and helpful tips and pointers for many types of policies that include:

  • Choosing auto insurance coverage
  • Determining how much life insurance you need
  • Selecting the best homeowner’s insurance
  • Helping you decide if you need flood insurance

 Choosing the Right Mortgage

 There are many factors that you need to consider when shopping for a mortgage. Your top priority will likely be to get the best interest rates to keep your monthly payments as low as possible. Borrowing from a reputable bank is also important as you want to avoid predatory lending services. Our experts will cover every aspect of getting a mortgage including:

  • Keeping you informed about fair lending laws.
  • Show you how your credit report can affect your interest rate.
  • Teach you about fees including costs for loan origination, broker fees, underwriting fees.
  • Discuss the pros and cons of fixed rate versus adjustable rate mortgages.

Please come back and visit our site again soon. Our experts are trained professionals with the knowledge and skills to help you manage your money and gain financial freedom. We regularly post fresh content that provides helpful pointers and tips so you can become a savvy saver.


Subscribe to Our Newsletter

Yahoo Finance

Forbes on Instagram

  • Instagram Image
  • Instagram Image
  • Instagram Image

Everything You Need to Know About Finance and Investing


advertisement advertisement
scriptsell.neteDataStyle - Best Wordpress Services