Finance – Kenthe 390 Fri, 30 Apr 2021 12:33:43 +0000 en-US hourly 1 Finance – Kenthe 390 32 32 Bill Funding – What is it and how does it work? Thu, 11 Mar 2021 05:29:48 +0000

Get to know invoice financing

Gerri Detweiler • January 7, 2021

Advantages and disadvantages of invoice financing

Invoice funding (or accounts receivable funding) has a lot to offer in the right situation, but there are also downsides to be aware of.

Benefits of invoice financing for small businesses

If you are looking for a quick way to get a short-term type of financing, invoice financing solutions could be a solid option. Because the bills themselves serve as collateral, you won’t need to put up other assets to borrow money.

The application and approval process is much faster than with traditional loans, and you can see the funds deposited into your account in as little as one business day. And the fees, while higher, are clearly identified in advance so you know the cost of borrowing.

Disadvantages of Invoice Financing for Small Businesses

The biggest downside to billing finance solutions is the high cost. While quick approvals can help you solve immediate financial problems, you’ll pay for the convenience.

The fact that your warranty is your invoice may mean that certain types of businesses will not immediately qualify. B2C (business-to-consumer) businesses looking for financial help may be out of luck, especially if their cash flow is from a point of sale rather than long term invoices. Additionally, the discount rate you will receive for your invoices means that you are essentially losing all of the invoice income that would have been earned over time.

What is invoice financing?

Bill financing, also known as debt financing or bill negotiation, is a form of asset-based lending that allows businesses to borrow money on unpaid customer invoices. In exchange for quick access to cash, a business pays a finance company bill a fee, sometimes a percentage of the amount borrowed.

Types of funding to be received

  • Invoice factoring
    Common for small businesses in industries like apparel or manufacturing, where long accounts receivable is part of the normal business cycle. Factoring usually means that the invoice factoring company buys the invoice with a discount. This company is now responsible for collecting payments on invoices. You typically receive 50-80% of the invoice value up front (also known as an invoice discount) depending on your customers’ risk profile. These factoring fees can be structured in a number of ways, but they are typically around 3-5% of the invoice value.
  • Bill financing services
    Like factoring, except it’s not a sale of your accounts receivable. Invoice financing works by using accounts receivable as collateral to secure an advance, but you are ultimately responsible for collecting payments. If your customers’ payments become past due, you will be responsible for the amount advanced to you. Charges are typically 2-4% of the value of your bill per month.
  • Debt-Based Line of Credit
    A line of credit based on a percentage (usually 80-85%) of the value of your unpaid receivables. The value is calculated based on the age of the invoices. You will pay a pre-negotiated interest rate based on your balance. When an invoice is paid, your balance will be reduced. There is usually a fee when you draw the line of credit, but it’s usually a cheaper option than invoice factoring or invoice financing with an APR often below 20%.

Recourse factoring: a quick lesson

You might have noticed something interesting above: With invoice financing, it’s you who is ultimately responsible for paying unpaid invoices from your customers.

With invoice factoring, the invoice factoring company takes care of those invoices and is responsible for collecting the payment. If your customer never pays, the lender takes that risk. This is why invoice factoring tends to charge higher fees. There is a greater risk for the company of not being paid.

It is important to understand the difference between factoring or recourse and non-recourse financing. Recourse factoring means that the company is ultimately responsible if the invoice is not paid. Non-recourse financing means that the factoring or financing company is out of luck if the invoice is not paid. Note that invoice financing or factoring does not replace debt collection.

Invoice financing offers

Looking for an invoice finance or invoice factoring company? Here are our recommendations.

Requirements to qualify for factoring or invoice financing

Due to the heavy focus on the invoices themselves, almost any B2B business can benefit from invoice financing, as long as the company responsible for the invoice has a good credit risk. If the invoices themselves make sense to the invoice finance company, they likely will. In other words: if a given customer has a history of paying on time and has a good reputation, it’s probably a good risk for a finance company.

The amount financed or factored will depend on the quality of the invoices and the credit history, which in some cases refers to the credit of the borrower, and in other cases to the credit of the company that has to pay the invoice.

Be sure to consider all of your options to determine if it makes sense to fund your bills, as it may be more than what you’re willing to pay over time. You have other financing options, including working capital loans and business credit cards.

Best candidates for invoice financing

  • B2B companies
  • Seasonal businesses
  • B2B companies with respected customers
  • Companies in industries with long billing cycles – for example, apparel, retail, manufacturing, etc.
  • Companies with large invoices and Buy online

Sectors best suited for factoring or invoice financing include

  • Retail
  • Manufacturing
  • Immovable
  • Health services and medical providers
  • Agriculture
  • Marketing services
  • Business advice and legal services

Factoring or invoice financing is not an ideal solution for B2C businesses or subscription revenue companies.

How to request financing by invoice?

Compared to many small business financing options, the process of applying for invoice financing, invoice financing, or small business invoice loans is a fairly quick and easy way to get money for your business. business. If your chosen invoice finance provider or finance company has an online app, even better.

Like with small business loans, the finance company will have various requirements for your application, but the unpaid invoices will be the most important component. Some may look at your personal and / or business credit, or your business finances. It’s best to ask before you start the process to find out where you have the best chance of getting approved. Some companies may work with small businesses that have bad credit, while others may be more suitable for young startups or those with lower annual incomes, so it’s worth investigating.

Nav’s verdict: Financing invoices

The overall APR, typically 15-35%, is high compared to that of banks or online term lenders. But it’s a good short-term solution when most of your short-term assets are tied to accounts receivable, which allows you to avoid the long bank loan application for a short-term loan, SBA loan, or other ways that you can look for. get the money you need so badly. It is also much better than expensive merchant cash advances. Your credit score doesn’t matter as much either. Your customers’ credit scores will also be taken into account. Therefore, it is a good solution if you have some debt but have not built up enough of your credit history to get a line of credit from a bank.

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Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech | Zoom Fintech Thu, 11 Mar 2021 05:29:48 +0000

Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech

Paypal Stock – Square’s Cash app and PayPal’s Venmo benefit from increased use of digital wallets by millennials, analysts say

Wood, who previously worked at Jennison Associates for 18 years as Chief Economist, Analyst, Portfolio Manager and Managing Director, noted that his company believes fintech is “probably one of the most successful technology platforms. more misunderstood ”.

Wood, whose comments came during Fintech Zoom’s “Raz Report” session last week, predicted that digital wallets will drain banks. According to Woods, digital or online wallets will increasingly be used for customer banking and they will also be widely adopted for loans, debit / credit cards and for purchasing stocks and crypto-assets. .

Wood added that “digital wallets will not only be used for our banking operations, they will be bank branches in our pockets.” She further noted that banking institutions will face the “innovator’s dilemma” and will likely struggle to catch up with fintech challengers.

Ark Funds CEO pointed out that Square Inc’s (NYSE: SQ) Cash app and Paypal Holdings (NASDAQ: PYPL) Venmo are now benefiting from the shift to digital wallets and fintech apps, mostly driven by Millennials.

In its 2021 Big Ideas list, Ark said the value of digital wallets per user could drop from $ 1,900 currently to around $ 20,000 by 2025.

Notably, Square is the second largest holding in the flagship Ark Innovation ETF (NYSE: ARKK), accounting for 6.3% of all assets. At the same time, Paypal is the 19th largest holding company of the Ark Innovation ETF, representing 1.7% of assets.

Square and Paypal are the top 10 stocks in the Ark Next Generation Internet ETF (NYSE: ARKW). Square and Paypal rank first and second respectively for Ark Fintech Innovation ETF assets, representing 9.9% and 5.4% of total fund assets respectively.

As recently reported, the acquisition of Jay-Z’s Tidal by Square is not expected to have a significant impact on the Fintech company’s revenue, the company claims. Rob Walker, senior writer at Marker on the intersections of design, consumer culture, branding and business, recently analyzed Square’s $ 297 million purchase of Tidal, a broadcast service of Tidal. continuous music.

As reported, Mizuho’s Dan Dolev said fintechs like PayPal and Square have the advantage of P2P payments over big banks.

Dolev noted that Square is “all about the terminal value”. He explained that this is how they think of Square – and he thinks this is how investors should assess or assess Square’s business model.

Dolev also believes that what Square and PayPal have is “they have a brand.” He further asserts that these Fintechs have “the P2P advantage”. He clarified that what he meant was that because consumers use these services to transfer funds between them – “nobody really has that, that P2P thing – it cuts the cost of acquisition.”

He added:

“So the cost of acquiring Square for a typical customer is $ 5. It’s incredibly low in terms of what banks pay to acquire their customers. And it is because of this P2P viral effect. By the way, PayPal has the exact same thing with Venmo. So these are the structural advantages of Square and PayPal. “

He recognized that there is a lot of room for growth and development, because they are all “taking shares in the banks, in the big banks”. He predicts that Square and PayPal will be “on top”.

As reported in February 2021, PayPal plans to offer a super app with fintech services like crypto, payments, investments, and rewards accessible through a common interface.

Paypal Stock – Square’s Cash app and PayPal’s Venmo benefit from increased use of digital wallets by millennials, analysts say

Paypal Stock – Paypal Stock – Square’s Cash App and PayPal’s Venmo Benefit from Growing Generation Y Use of Digital Wallets, Analysts Explain | Zoom Fintech

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JCP & L Donates Over 83,000 Kilograms of Meals to Indigenous Meal Banks and Spiritual Organizations Following Tropical Storm Isaias | Zoom Fintech Thu, 11 Mar 2021 05:29:48 +0000

MORRISTOWN, NJ, Aug.28, 2020 / PRNewswire / – Jersey Central Energy & Mild (JCP & L), a subsidiary of FirstEnergy Corp. (NYSE: FE), recently donated more than 83,000 pounds of meal gadgets to 10 meal banks and spiritual organizations in New Jersey and Pennsylvania in the wake of Tropical Storm Isaias. The gadgets had been purchased to feed hundreds of utility workers who helped restore service to around 800,000 customers after the storm hit the area severely.
JCP & L’s donation was complemented by a further contribution from FirstEnergy Basis of $ 50,000 to benefit foodservice banks in the region.
The supply of fresh greens, beverages, dairy, meats and frozen items from the JCP & L Prep website areas to organizations in Monmouth, Ocean, Union, Morris, Sussex, Hunterdon and Warren counties in New Jersey and North Hampton County in Pennsylvania was completed on August 17 The donation of approximately $ 71,000 of meals can represent approximately 100,000 meals for households in need. In combination with the FirstEnergy Basis donation, Space Meal Banks have acquired more than $ 120,000 in aid from the company’s locals as a result of Tropical Storm Isaias restoration efforts.
“Our storm restoration efforts require a great behind-the-scenes operation to help the staff who come to New Jersey to help restore service to our customers,” said Jim Fakult, president, JCP & L. “We are pleased to ‘have the opportunity to use surplus assets from our preparedness websites and the FirstEnergy Basis donation to help Indigenous households put meals on their tables throughout these difficult times. ”
The following organizations have acquired meal gadgets donated by JCP & L:
Lunch Meal Break Pantry Soup Kitchen (Monmouth County)
Church of Triumphant Life (County Monmouth)
Good Hope Baptist Church (Monmouth County)
HIS Reward Ministries (Ocean County)
Fulfill Meals Bank (Monmouth and Ocean counties)
Bank of New Jersey Group Meal (Union County)
Interfaith Pantry (Morris County)
NORWESCAP Meal Bank (Warren, Hunterdon & Sussex Counties)
Easton Youth Residence (North Hampton County, PA)
Second Harvest Meal Bank (North Hampton County, PA)
JCP & L serves 1.1 million New Jersey customers in Burlington, Essex, Hunterdon, Mercer, Middlesex, Monmouth, Morris, Ocean, Passaic, Somerset, Sussex, Union and Warren counties. Watch JCP & L on Twitter @JCP_L, on Fb at or online at
The FirstEnergy base is funded solely by FirstEnergy Corp. and the supplies help non-profit, tax-exempt welfare and human services businesses; academic organizations; cultural and humanist groups and establishments; and civic teams in areas served by FirstEnergy’s 10 power companies and in areas where the company operates.
FirstEnergy is dedicated to safety, reliability and operational excellence. Its 10 electrical distribution companies are one of the largest investor-owned electrical methods in the country, serving customers in Ohio, Pennsylvania, New Jersey, West Virginia, Maryland and New York. The company’s transmission subsidiaries operate approximately 24,500 miles of transmission strains that reach the Midwest and Mid-Atlantic regions. Watch FirstEnergy online at Watch FirstEnergy on Twitter: @FirstEnergyCorp.
Editor’s Note: Images of JCP & L staff used to ship meal contributions will be seen on Flickr.
SOURCE FirstEnergy Corp.
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25 Days of Magic (Day 10): Hasbro Princess Dolls | Zoom Fintech Thu, 11 Mar 2021 05:29:48 +0000

Calling all the little princesses! Do you know just a little one who LOVES all of the Disney Princesses issues? Add a little more magic to their holiday season with the Disney Princess model collection that includes Ariel, Mulan and Belle. Your baby will be able to have many fun filled adventures with this Disney trio.

The entry type is on the back of this text – enter now as we stop taking entries at 8:00 p.m. Japanese (4:00 p.m. Pacific) on December 10th. The total value of the prize is $ 75!

Don’t wait until December 10 to participate – be sure to grab this and all of your freebies ASAP. We stop accepting registrations at 8 PM Japanese time in order to draw a winner later in the evening.

Price details

We choose 1 winner who will get all THREE of these Disney model princesses. You can also check Walmart and see all the opposing princesses that could be obtained in the sequence.


Ariel has by no means considered as stylish as on this fancy outfit. From the sea-inspired color to seashell accents, this outfit is a perfect match for our angelic-sounding mermaid princess. Ariel may be yours for 25 $ and can be purchased here.


Our fierce warrior princess looks pretty modern in this trendy modern outfit. She’s ready for a night out with her best friends. Mulan can also be purchased for $ 25 here.


Belle is ready for a night out with the beast in this cute yellow and pink princess matching dress! The Belle Disney Model Collection doll can be purchased for $ 25 here.

Miracle Youth Community

Miracle Network for Children Logo

Driving pressure behind our 25 days of magic Promotion involves helping and imparting awareness to the various youth hospitals that make up the Miracle Youth Community. We do this by donating $ 1 for each separate entry during this promotion up to $ 30,000!

For this reason, we would like you to share this or one of our different gifts with your family and friends. Just think about whether everyone has decided to email their friends or share on social media. We could reach our donation of $ 30,000 with ease.

Why may we need to help the work of Youngsters’s Miracle Community Hospitals? The answer offered in the upper element in our 25 Days of Magic announcement boils down to the non-public expertise I had with the Anchorage, AK Youth Hospital which was caring for my son.

These awesome doctors and nurses want our help to keep doing what they are doing well and that is your likelihood of helping to make a purchase order or donation. However, if you can donate, we simply ask that you be a part of our efforts by making your donation right here.

Money raised through this effort goes to Miracle Youth Community Hospitals® for the good thing about three particular youth hospitals. These hospitals are:

Price registration

Enter the gift app below. Inside the app we will hyperlink to a number of 25 days of magic Gifts that can help you more easily get a bounce in your vacation shopping. Not only do these make great concepts, but on top of that, you’ll collect bonus entries just to check them out.

We also need you to sponsor your family and friends. Don’t be some sort of individual who keeps it all for themselves.

When you enter you will notice the option to “refer a friend”. Each person who participates will get their own URL which you can share on social media, email, or in text content. As soon as your friend enters using this URL, you definitely get the bonus entries.

Finally, make sure you use an email with you, really double check as the winner will likely be notified via email and we’ll replace this text with the winner’s title.

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How to write a promissory note Thu, 11 Mar 2021 05:29:48 +0000

If you borrow or lend money, a promissory note sets out the terms and details of your loan. While this might seem like another boring document to quickly flip through, it’s a key part of loans with very important – and legally binding – details.

If you are preparing to sign on the dotted line of a promissory note, it is essential to understand how a promissory note works and what it should include.


What is a promissory note?

A promissory note is a written agreement to pay someone – essentially an IOU. But this is not something to be taken lightly. “This is a legally binding written document making a promise to repay money,” says Andrea Wheeler, business attorney and owner of Wheeler Legal PLLC of Florida.

Promissory notes are often used in the financial services industry. Zachary D. Schorr, an attorney based in Los Angeles, says, “They are typically used for formal loans such as mortgages or commercial loans where the borrower promises to repay a loan in writing. “If you take out a car loan or a student loan, for example, you would sign a promissory note agreeing to the terms, conditions and repayment schedule.

A promissory note can also be used in less formal situations, such as when you lend money to a friend, family member, or business partner, to make the loan official. You probably don’t have to worry about lending a few dollars, but making a large personal loan to another person or even a business probably warrants a formal promissory note.

What a promissory note includes

For a promissory note to be valid and legally binding, it must include specific information.

“A promissory note should include details, including the amount loaned, the repayment schedule and whether or not it is guaranteed,” says Wheeler. But that’s not all. In fact, a number of details are required for a legally binding promissory note. If you are signing a promissory note, make sure it includes the following details:

Dated. The promissory note should include the date it was created at the top of the page.

Amount. The amount borrowed should be written in numbers and expressed in words, like writing a check. This way there is no chance that the amount owed will be misread or changed. For example, if the promissory note is $ 5,789, it should also say “five thousand seven hundred and eighty-nine dollars”.

Loan conditions. The loan terms explain how the loan will be repaid, including how often payments will be made (monthly, quarterly or annually), when the first payment is due and when the final payment is due. There should be specific dates rather than ambiguous deadlines.

Interest rate. This detail explains if there is interest charged on the loan, and if so, what will the rate be and whether the interest rate is fixed or variable. Just like the loan amount, the interest rate should be represented as a numeric percentage and written in long form. Wheeler also notes that the interest rate must comply with the state usury law.

Collateral. Some types of loans are secured by collateral in case the borrower is unable to repay what he owes. These are known as secured loans. If the loan is secured by collateral, the promissory note should detail what the collateral is and its value. For example, the borrower may be placing an asset as collateral. The promissory note should include a description of the property, including whether it is commercial or residential, its value and address. However, “not all promissory notes are secured by collateral,” Schorr says. “A promissory note is enforceable by way of an ordinary breach of contract claim.” In other words, the loan does not need to be secured; an unsecured loan is always enforceable as long as the promissory note is fully filled.

Information about the lender and the borrower. This section covers the names and contact details of everyone involved in the loan. It describes who the lender is and who the borrower is, as well as the mailing address or digital destination where payments are to be sent.

Signatures. Finally, to be enforceable, both parties must sign and date the promissory note, Wheeler says. This is how the borrower and the lender recognize that they understand the terms and their responsibilities. “It’s also good practice to have a promissory note notarized so that the lender can be sure that the right person is providing the promise to repay the loan,” says Schorr.

What happens when the loan is paid off?

When you reach the end of the loan, it’s a good idea to release everyone from their responsibilities. This can be achieved with a release of a promissory note or other document indicating that the loan is complete and paid in full.

While there is no way to fully protect yourself against possible claims, lawsuits, or other issues related to a loan you were involved in, the release document can strengthen your defense if something like this happens.

A promissory note release is appropriate when all parties have performed all of the tasks outlined in the original contract. Each party should consider whether they are satisfied with the way the loan conditions have been met. Additionally, if collateral has been used to back the loan, the discharge should state that there is no further lien or other holdback on it.

The release should include a few key details: a reference to the original promissory note and its date, as well as the original loan amount. The discharge must describe that the conditions of this document have been met and that the borrower is released from his obligations. And it should include the names and contact details of all parties involved, just like the original note.

The promissory note release must also be signed and dated by the lender and the borrower. As an additional measure, it may include a copy of the original promissory note with an annotation indicating “paid in full” or “canceled”.

Again, having this document notarized is an additional step you can take to ensure that it is valid and cannot be challenged later.

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China’s highest court demands closer scrutiny to prevent monopolies Thu, 11 Mar 2021 05:29:48 +0000

Getty Images / iStockphoto

China’s highest court has demanded that further scrutiny is needed to crack down on monopolies and unfair competition.

The Supreme People’s Court has said that more work needs to be done to determine and verify whether a company engages in monopoly practices, regulate data collection and use, and protect the rights and interests of consumers in the digital sector. , according to a Chinese state report. -Classes People’s Daily.

The court also insisted on the need to guarantee entities access to equal resources and that a unified procedure is in place to promote fair competition, the outlet reported.

Supreme People’s Court request comes as China’s antitrust watchdog continues its investigation into tech giant Alibaba Group on alleged anti-competitive practices.

The State Administration of Market Regulation claims that Alibaba has been involved in monopolistic behavior such as “enforced exclusivity” by requiring e-commerce merchants to choose only one platform as their channel for trading. exclusive distribution, according to Morning Message from South China.

In a statement, Alibaba said it would “actively cooperate with regulators on the investigation,” adding that “the company’s business operations will remain normal.”

As the investigation continues, the Chinese government plans to nationalize the Alibaba group and the financial services arm of the Ant Group.

“Based on information received by the State Administration for Market Regulation in recent days, the administration will investigate Alibaba … for alleged monopoly activities,” International Business Times quoted the Chinese government.

Ant Group, the owner of Alipay, was also summoned by China’s central bank to meet with financial regulators to discuss the company’s regulatory compliance, the Morning Message from South China mentionned.

“Ant Group has received notice of a meeting from regulators. We will seriously investigate and strictly adhere to all regulatory requirements and make every effort to accomplish all related work,” Ant Group said. declaration.

The crackdown on Alibaba Group operations by Chinese regulators follows founder Jack Ma’s outspoken speech he delivered at the Bund summit in Shanghai in October, where he criticized the country’s dominant regulation and dominance of the State on the banking system.

“Good innovation can coexist with regulations, but not old-fashioned regulations. We cannot run an airport like we run a station, nor run the future like we run the past,” Ma said, according to a transcription.

He went on to say, “We need to eliminate the ‘pawnshop’ mentality in the financial industry today. We have to rely on the development of the credit system … I have found that the pawnshop mentality is a serious problem in China and has affected a lot of It becomes extremely serious when entrepreneurs have to pledge all their assets. They are under tremendous pressure and what they are doing is distorted. ”

On the first day of the Chinese People’s Police on Saturday, Chinese security chief Guo Shengkun called on agencies to become better acquainted with emerging technologies and businesses – such as live streaming, online lending and lending. ‘sharing economy – and promote legislation and rules to increase their ability to identify and control risks, and ensure that online platforms develop in accordance with laws and regulations, People’s Daily mentionned.

At the same time, Reuters reported that China plans to introduce new requirements that would see tech giants such as Ant Group, Tencent and share consumer credit data with regulators to avoid excessive borrowing and fraud.

The plan, if implemented, would see digital platforms deliver data to credit bureaus, which are managed or supported by the People’s Bank of China, before the shared data is distributed more widely to banks and other lenders to help properly assess borrowing risks.


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Ukrainian judicial system employee caught mining cryptocurrency at work | Zoom Fintech Thu, 11 Mar 2021 05:29:48 +0000

An IT staff member of the Ukrainian judicial administration has been accused of illegally mining cryptocurrency in his office.

The Kiev prosecutor’s workplace reported on its Fb webpage on Wednesday that, collectively different companies, it had investigated the worker who worked in the Information Programs Division of the Administration Division of the court register.

It is claimed that the unnamed person took advantage of the tools and web bandwidth allocated to the Ukrainian Court Records Database and Judicial Internet Portal to mine the cryptocurrency from January to May 2018. He further allegedly used cryptocurrency. office servers for hosting outside websites. , as well as three online stores and a website for cyclists, the prosecutors’ office said.

The worker was charged with unlawful interference with work on computer systems and laptop networks, and with the distribution of dangerous software. According to the Criminal Code of Ukraine, if found responsible, he faces up to 6 years in prison and a ban from working in the companies of the authorities.

The reports observe a handful of different circumstances of illegal mining by authority personnel within the country. Last November, the Ukrainian railway administration (Ukrzaliznytsia) surprised staff mining crypto using the company’s energy capacity in metropolitan Lviv. And in August, law enforcement discovered a cryptocurrency mining facility at the southern Ukraine nuclear power plant.

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Sowing the seeds for the next step in fintech success | Zoom Fintech Thu, 11 Mar 2021 05:29:48 +0000

Fintech in the UK has grown at a breakneck pace.

In 2010, it accounted for just 4 percent of corporate capital funding in the UK. A decade later that figure has risen to 28%, with a record of $ 4.9 billion in capital funding in the UK in 2019 – a year-over-year improvement of more than a third .

There is no doubt that the UK is a world leader in FinTech – a truth that doesn’t misplace just about all of our global companions once I interact with them. However, for this to be the source of future progress that we all know it can be, we need to ensure that entrepreneurs can thrive, grow internationally, and deliver on fintech’s promise of delivering prosperity to people. all elements of the nation.

Learn more: DEBATE: With the financial system under such pressure, should the new fintech regulations be suspended?

I therefore warmly welcome the launch by the Treasury of an impartial assessment of the UK FinTech sector, for which the Metropolis of London and Innovate Finance will act as joint secretariat.

Fintech arose out of a need for innovation in the money market sector after the 2008 global currency crash. It arose out of a need to change the dynamics of commerce and offer high selection for businesses and companies. buyers.

Britons have steadily taken fintech innovation to the bowels of their lives, with the UK fintech adoption price now at 71% – well above the global common price of 64%. Thanks to the comparability, this far exceeds the speed of various key markets such as the United States (46 percent) and Japan (34 percent). Lockdown and our increasing adoption of distant applied sciences have helped to further accentuate this development.

There are two key conclusions I draw from all of this.

The main one, perhaps clearly, is that the fintech engine will be an important engine for the UK money market sector – the second largest exporter of money market companies in the world – in supporting the revitalization of the global financial system. Will likely be a space for significant progress in the years to come.

The second point to remember is that fintech in the UK has come of age. It has become an integral part of the business of British money companies and is here to stay. We have now done a fantastic job supporting startups as they emerge, but we are actually seeing more mainstream establishments and broader stakeholders putting more emphasis on fintech as well.

As we cross that threshold, it is time to reflect on how we have developed and what changes we would like in the long term. There is a need to start framing this debate and, in this regard, I encourage readers to check out our new joint report with Innovate Finance and EY. It presents some concerns for the future of the sector in a global context, such as removing remaining hurdles for startups, prioritizing entry into expertise, and persevering to innovate within the regulatory house.

I have a feeling that these discussions and the impartial assessment by the federal government will help sow the seeds for the next step in fintech success. I ask everyone in the UK money market ecosystem to have their say and play their half.

Get the opinions of Metropolis AM columnists delivered straight to your inbox in our daily Noon Replace post.

Essential Photo Credit Score: Getty

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Taurus of the day: Square (SQ) Thu, 11 Mar 2021 05:29:48 +0000

At the beginning of July, I profiled Square (SQ) like the Bear of the Day – although I was still very optimistic about this “Apple of Fintech” disruptor – because analysts’ EPS revisions had brought the stock down to Zacks Rank.

Here is what I wrote then …

Square is a mad geniusS-level disruptive tech platform that just launched over 100% in Q2 because many short-sighted, valuation-focused selling analysts and hedge funds have kept it below $ 75 for so long .

And as of July 9, the stock just hit the moon above $ 133, for over 25% in earnings this month alone. Apparently (some) blind people have started to see.

Meanwhile, UBS and BofA offered downgrades to “Sell” and “Underperform” in May after the company’s last quarterly report as stocks came back above $ 70.

And I think a Cowen analyst yesterday performed a much more timely demotion after SQ’s “200% rally” from Coronavirus Crash lows. By lowering their rating on Outperform’s Market Perform, they also figured they should increase their price target from $ 79 to something a little more respectable like $ 119.

(article excerpt from July 10)

I spent the rest of this article describing what most analysts were missing, how I stupidly listened to them, and what two other geniuses saw clearly. If I had listened more closely to Jamie Dimon, who runs a small bank you’ve probably heard of, and Dan Dolev, then Square analyst at Nomura Instinet, I would be sitting on over 200% of SQ stock gains this year. More information on their views to come.

And yet, not a week after this detailed bullish case I presented, Square was initiated with a neutral rating and a price target of $ 133 at Goldman Sachs. Analyst Matthew O’Neill has started 15 companies in the payments and IT services space, favoring companies with “strong secular growth trends” and those with the potential for full addressable market expansion.

O’Neill noted that COVID-19 will accelerate greater adoption of contactless payments and e-commerce, to the benefit of networks, acquirers and processors. But he believed that “Cash App’s consensual enthusiasm” might prove too optimistic in the near term to warrant further appreciation in the already rich valuation of Square shares.

June quarter drops their socks

In early August, Square released a report on the coronavirus which was anything but a recession. Sales and profits increased as online business activity made up for the loss of in-person transactions for which the eponymous dongle became famous. Net income for the quarter was $ 1.92 billion versus the consensus of $ 1.14 billion – for an unprecedented 69% beat – and Adjusted EPS was +18 cents versus Zacks’ consensus of – 7 cents, for a beat of 350%.

RBC Capital analyst Daniel Perlin reacted strongly to the rise, which raised the company’s price target on Square to $ 200 from $ 119 after the company reported implied adjusted net income of $ 677 million , which was up 20% year over year and beat both. its forecasts and those of the consensus. He upped his revenue and profit estimates following the “very impressive” Q2, which he said exemplifies the company’s innovation, speed and ability to pivot quickly, Perlin told investors.

Dan Dolev is back!

Many analysts followed Perlin’s lead in August, with an average price target hitting $ 170. But I was wondering why I hadn’t heard of SQ’s biggest bull of all, Dan Dolev, and his exclusive ‘Cash App vs Venmo’ tracker that he has been using for years to chart Square’s competitive position. compared to that of Square. Pay Pal (PYPL).

It turns out that Dan was in transition to another large Japanese i-bank. Here is his debut on August 26 …

Mizuho starts Square with a buy note and a price target of $ 225: Analyst Dan Dolev kicked off the Square cover, reiterating his long-held belief that the fintech disruptor is best positioned to profit from the dislocation of small and midsize businesses. Citing that the ‘top’ unit economics for its Cash app could help quadruple gross profit growth, Dolev noted that Square’s margins are ‘underestimated’ as it seeks to maximize its terminal value. .

Then, at the end of September, Dolev released a note saying that Square’s Cash app is “virtually unstoppable.” After meeting with Square management, Dolev reaffirmed their pitch regarding the total addressable Cash App market, average revenue per user potential, user growth prospects, and revenue sustainability. The SQ fortune teller said the average revenue per Cash App user had “grown dramatically,” from nothing to $ 45 in just five years. And he estimated that number could reach $ 80 or more by 2023.

Cash is Dead, Long live the Cash application

Also in September, Daren Fonda, writing for Barron’s, observed that silver usage was already at an all-time low at the start of the new decade and that COVID-19 had just accelerated the decline as Americans stuck at home and now still wary of proximity. necessary for the physical exchange of potentially infectious invoices. While Fonda noted that the PYPL and SQ valuations were pushing to extremes, he warned long-term investors that there was still time to get started.

I agreed in my recent confidential Zacks report Demographics and the economy: a strong case for the bull market of the 1920s where I made SQ one of my top 3 picks for the decade of virtual, remote and digital disruption. To see my full thesis and other choices, just email and tell them Cooker sent you.

Wall Street analysts also agree with estimates that have risen sharply since the August earnings report. The revenue consensus for this year now stands at 49% growth to exceed $ 7 billion and a 27% lead is forecast for next year’s revenue to reach nearly $ 9 billion .

For earnings estimates, even though the consensus is at just 53 cents, for a 35% drop, that’s up from the Armageddon scenario predicted over two months ago at just 18 cents BPA . And next year’s goal is $ 1.15, which is over 120% growth.

These rising estimates explain why SQ is a Zacks # 1 rank again.

Dimon: Square innovated where we should have

As for Jamie Dimon, I can only share and still enjoy his quotes from a February 2019 article in American Banker by Andy Peters

“They came up with this little dongle to process things and it was a great idea,” Dimon said.

Square then built on the success of its card reader to provide other services to its business customers, such as a greater variety of point-of-sale systems that allow merchants to accept payments in cash or by card. It also provides merchants with tablets and software that allows them to track sales patterns, inventory, and other important data.

“We didn’t give them that opportunity, Square did,” Dimon said. Finally, Dimon lamented that Square beat JPMorgan to the punch in providing small business loans online.

Square Capital, its online lending arm, began offering business loans in early 2014 – nearly two years before JPMorgan began providing its own digital loans to small businesses through a partnership with fintech lender OnDeck Capital. .

Square “said,” you know what, since we know this business and they might need an advance at this time of year, we could advance them $ 10,000 or $ 15,000 or $ 100,000. “Said Dimon. Is doing what we haven’t done.

The mark of a great leader is to recognize and admit failures and hopefully learn from them. I wonder if Jamie thought about trying to buy SQ when it was on sale last spring at $ 25 billion.

I wish I had held on to my actions. And let’s hope I’ve learned my lesson about sustaining disruptive innovation.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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Victoria’s COVID-19 cases remain at zero as Brett Sutton calls for caution Thu, 11 Mar 2021 05:29:48 +0000

Victoria’s health director Brett Sutton offered a word of warning after the state recorded more than four weeks without a single new one coronavirus Case.

On Saturday, the Department of Health and Human Services confirmed that Victoria had recorded no new infections or deaths for 29 consecutive days.

Active and mysterious cases remain at zero.

A few months earlier, the state’s active cases reached 7,880 on August 11.

Health officials say 28 days without a new case means the virus has been cleared from the community, as that period represents two 14-day incubation periods.

“ Worthy of Celebration ”

Sutton tweeted his optimism Friday after the state marked the milestone.

“It rightly deserves to be celebrated. After the most difficult year for many Victorians, it is important to recognize this achievement, ”he wrote in a series of tweets.

“It took all of us to get here and it was a long and painful journey, but we stuck it out. I cannot thank the Victorians enough for this.

People walk past a bustling Bourke Street mall on November 27. Credit: Daniel pockett/Getty Images

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