Category Archives: Personal Finances

All Day Breakfast Sees McDonald’s Share Prices Increase

Fast food chain McDonald’s has recently released quarterly sales figures that were better than expected, with the success being put down to the chain’s introduction of all day breakfasts. It was revealed that the all day breakfasts, which were introduced in the United States last October, have proven to be a big hit with consumers in America and there has also been increased demand for them in China. The figures were based on same restaurant sales and the chain has now seen its shares increase by 3 percent to $121.90, which is an all-time high.

McDonald'sPreviously, the restaurant only served breakfast for a few hours in the morning after which popular options such as sausage & egg Mcmuffins and hash browns were no longer available for purchase. However, the move to introduce all day breakfasts has enabled diners to enjoy these breakfast options at any time during the day and this has proven to be a big hit.

Stiff competition from other food chains

According to reports, the reason behind the introduction of the all day breakfasts at McDonald’s was to try and combat increasing competition from other popular food chains such as Burger King and Wendy’s amongst others. Some of these competitors are said to have doubled the items that they offer for breakfast, which left McDonald’s at risk of losing customers. However, it seems that the move to give consumers the chance to opt for McDonald’s breakfast items all day long as helped to reduce the stiff competition as well as boosting the burger chain’s share prices.

Steve Easterbrook, the new CEO at McDonald’s said that the introduction of all day breakfasts had enabled the company to claw back some of the market share that it had lost over recent years. Some officials have said that things could be looking up for the chain as a result of new leadership with one analyst stating that he was particularly impressed with how quickly things were changing now compared to under previous leadership. He said that at one time McDonald’s was pretty slow on the uptake when it came to making changes and bringing out new products but that this was something that now seemed to be improving.

In the final quarter of last year, sales at McDonald’s branches in the United States that had been open for at least thirteen months increased by 5.7 percent, which reflected the highest quarterly growth in four years.

Facebook Friends Could Affect Your Next Loan Application

The next time you apply for a payday loan or a small business loan from your financial institution, the application’s success may depend on your Facebook friends, according to the latest patent filings from Facebook.

The social network juggernaut filed for a patent from the U.S. Patent and Trademark Office for a method that could potentially assist in long-term credit and bad credit loan lenders observe the social habits and connections of an application to conclude if they’re eligible for a loan.

Facebook PatentFacebook purchased the patent from Friendster in 2010, which was established by Christopher Launt, who is now employed by It was first identified by Smartup Legal.

A footnote in the patent outlines that when a customer applies for a loan then the lender would be able to peruse Facebook and find out the credit standing of the individual’s social media friends. Therefore, if the average credit rating of an applicant’s connections maintains a minimum credit score then the application would be approved.

“When an individual applies for a loan, the lender examines the credit ratings of members of the individual’s social network who are connected to the individual through authorized nodes,” the patent states. “If the average credit rating of these members is at least a minimum credit score, the lender continues to process the loan application. Otherwise, the loan application is rejected.”

Indeed, this perhaps would be a welcomed addition to the application process for the finance industry. Banks, for example, may add this to their arsenal of metric data for the review process. Some experts say they feel very uncomfortable by this concept.

“We have been exploring this method of determining an applicants trust score for several years now. Our initial data suggest that people of similar wealth and financial status tend to gravitate together. We hope to begin utilizing this as one of several tools to determine a borrowers trust score for bad credit loans by the end of 2015.” – Chris Lions Continue reading

MasterCard Earnings Improve as Consumer Spending Increases

On Thursday, MasterCard released its quarterly financial statements, which showed better than expected results. The American Multinational Financial Services Corporation reported a profit of $1.02 Billion or $0.87 per share, an increase in profit levels by 15.5% for the quarter ending in September. The stock value of MasterCard was also on the up by 6.5% at around $81 in early morning trading on Thursday and went up as high as $81.69. This rise in stock value represents the confidence that investors have in the directorship of MasterCard and their optimism that it will continue to grow and outperform all expectations in the future as well.

Estonia - September 24, 2014. Close up of Mastercard credit carMasterCard’s performance has topped the expectations that had been made by various experienced analysts from all over the globe. The double digit increase was not only observed in the profit levels, but also revenue and payment volume levels, hence delivering strong results in a mixed economic environment. Revenue stood at a staggering $2.5 Billion, an increase by 13%. This financial performance by MasterCard shows the confidence consumers have in their current economy, which seems to be strong and stable which in return is driving consumer spending. With an increase in Consumer Spending, the demand for both credit cards and debit cards increases. Hence the payment volumes also increases as consumers spend more to make purchases.

MasterCard, which happens to be an international services corporation, is a popular choice among customers when it comes to purchasing a debit card or a credit card. The company reported that the purchase volume was up by 11% to $843 Billion and the cross border volume increased by 15%. The transactions that were made through MasterCard cards were up by 10 % to around $11billion. Gross Dollar volume stood at $1.2 trillion, which again represents a 12 % increase. These results show that earnings have certainly improved for MasterCard due to the continued stability of global economy. Continue reading

Don’t Make These Mistakes When Applying for a Business Loan

Initiating a business especially in this economic crisis is not an easy thing to do. Times have changed and a very few people, if any have the assets to start the business on their own.

113_112_3592.jpgThis is why; almost everyone needs a business loan. However, business loans aren’t easily granted because so many small and large companies are seeking them, the guidelines for giving one have become stricter and so not everyone that goes to a bank for a business loan comes out with one. A large percentage of applicants will be approved for loans simply because their business doesn’t have any credit yet or has bad credit.

Now although there are no sure recipes for getting the business loan, there are a few things that you could do to make your chances of getting the loan higher. Before you apply for a loan, here are some of the questions that you will need to answer to the bank where you are applying.

How much money do you need?

You cannot apply to a business loan unless and until you do not know the amount which you will need. Keep in mind that before going on the venture for a loan, you will have to sit down and decide about the kind of investment that needs to be made. Don’t think your loan request is too high or too low because banks deal with this kind of things on a daily basis.

What will you do with the money?

Next, the company where you have applied for the loan will also probably want to know where you will be spending the loan that is being granted to you. For example you may need it to make recruitments or other business related actions, or may need it to pay off business debts. Whatever the case, you need to be clear on why you are asking for the loan. Continue reading

How the Financial Term Principal Applies to Loans

Principal-Loan-PaymentA loan is when a borrower receives a sum of money from a lender (called the principal), and agrees to repay the borrowed money to the lender at a later date. Normally the borrowed funds are paid back to the lender in installments, with a lump sum paid at the end of maturity. There are cases such as in an annuity, where equal installments are paid during the life of the loan eventually paying off the loan at maturity. The loan is generally provided to a borrower at cost, referred to as interest on the debt. The interest provides an incentive for the lender to participate in loaning out funds.

In a legal loan, the terms of the agreement are enforced by a contract. Covenants, which are stipulations of the loan, are determined by investor s and how likely they believe the company will be able to return the principal. The more unlikely a company is to repay the debt, the more covenants will be included to protect the investor.

That said, a worthy borrower that has strong cash flow and solid earnings will be provided funds with less covenants attached to their loan offering. On the flip side of that a borrow with a poor credit history who applies for bad credit personal loans will have a much harder time obtaining reasonable loan terms. A loan is just like any other debt instrument, in that, the stronger the creditworthiness of the borrower the better the terms of the deal. Continue reading