October 2024 - Hanover Mortgages

Apache is functioning normally

October 21, 2024 by Brett Tams

You might think that if you close a loan or credit card account it will no longer affect your credit report, but they can actually stay on your credit report for up to 10 years. During this time period, these accounts can help or hurt your credit score, depending on a number of factors.

Here’s what you should know about closing loan and credit card accounts from your credit report.

Key Points

• Closed credit accounts can stay on your credit report for up to 10 years, impacting your score.

• On-time payments on closed accounts positively affect your credit history.

• Late payments on closed accounts can negatively impact your credit history for seven to 10 years.

• Closing accounts can affect your credit utilization rate and credit mix, influencing your credit score.

• Removing closed accounts with poor payment history or fraudulent activity can build your credit profile.

How Closed Accounts Affect Your Credit

Closed credit accounts and loans can have varying effects on your credit, some positive and some negative, due to the factors that make up your credit rating. Here’s a closer look at three of those that are significant in this situation: your credit history, your credit utilization rate, and your credit mix.

Your Credit History

A closed account on which you made on-time payments will help your credit score by building your credit history. The effect will be less than if it were an open account, but it would be a positive factor nonetheless, since it shows that you can manage credit responsibly.
However, if you made late payments on an account that is now closed, the negative impact may linger in your credit history for seven years and up to 10 years if you file for bankruptcy.

Longevity is a factor on your credit report. Credit scoring systems reward borrowers with a longer history of managing debt and repayment. That means that if you close an account and seven years pass, you’ll lose any benefit of having had that account. It won’t make a significant change, but it is another factor to be aware of.

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Your Credit Utilization Rate

Part of your credit rating is based on how much debt or credit you already have. Creditors look at your credit utilization ratio, which is how much credit you have available to you versus how much you actually use. The best case scenario is to not use more than 10% of your accessible credit; otherwise, no more than 30% is a good move.

Two examples:

• Say you have a $10,000 credit limit on your credit card, you might want to limit your balance to $1,000. That’s 10%.

• Otherwise, keeping your balance to no more than $3,000 would be 30%, the upper end of what’s considered a good credit utilization ratio.

If you close a loan or a credit card account, that might reduce the amount of credit available to you, which will increase your utilization rate. If you open a credit card or take out a loan, that will increase the amount of credit available to you, thereby decreasing your utilization rate.

Your Credit Mix

Credit scoring systems, such as the FICO® Score and VantageScore® look at the types of loans you have and how you manage them. These systems reward a mix of loan types, such as installment loans (auto loans and mortgages), and revolving accounts such as credit cards. Eliminating a credit card account or other type of loan (such as when it is closed and eventually drops off your report) could limit your credit mix, and that could negatively impact your credit score. Worth noting though: Credit mix counts for 10% of your score vs. 35% for your payment history (meaning, how successfully you make payments on time).

Why Do Closed Accounts Stay on Your Credit Report?

Both closed and open accounts can contribute to your credit rating as they stay on your credit report. That’s because the credit agencies can gain a fuller picture of your risk as a borrower the more information they have.

Monitoring and understanding your credit report (perhaps with a credit score monitoring app; your bank may offer this) is an important part of your financial wellness.

When to Remove a Closed Account from Your Credit Report

If possible, remove a closed account from your credit report if it has a poor payment history. Also, remove any accounts that are found to be fraudulent. If an account shows that you made regular, on-time payments, don’t remove it because it will be helping your score.

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How to Remove a Closed Account from Your Credit Report

A few factors affect your credit score; one of which is your credit history. As noted above, your credit history shows the loans and credit cards you have obtained in the past seven to 10 years, along with your repayment patterns. Even closed accounts are part of that narrative for the stated period of time.

That said, there may be a way to remove a closed account from your credit report, which you might want to do if it is having a negative effect. Here are some options.

1. File a Dispute if There Is an Error on Your Credit Report

It might be that you notice a fraudulent account when you check your credit report. If that is the case, you can remove the record by submitting a dispute in writing with each of the three credit bureaus (Equifax®, Experian®, and TransUnion®). You must include supporting documents. The bureaus will investigate your complaint and update your credit score if there is fraudulent data.

2. Contact the Creditor and Pursue a Goodwill Deletion

Another way to remove a closed account from your credit report is to directly contact the creditor that’s involved and ask them to remove the account from your credit report. (This is sometimes known as a goodwill letter or goodwill request.) The creditor will have to contact the credit bureau(s) directly to do so. You will be more successful if you have a positive credit history and relationship with the creditor.

3. Wait It Out

In time, a closed account will no longer be reflected on your credit report, but it might take seven to 10 years. The good news is that the accounts that stay the longest are usually ones that you closed in good standing, and these will positively influence your credit score.

Recommended: Why Did My Credit Score Drop After a Dispute?

What Does “Account Closed” Mean on a Credit Report?

“Account closed” on your credit report indicates an account that is no longer active. There can be several reasons for an account being closed.

• Perhaps it was an installment loan that you paid off.

• You might have opened a credit card account and then decided to close it (maybe you weren’t using it much).

• The creditor closed it, which could be positive (you paid off a loan) or negative (you weren’t paying your bills in a timely manner).

These are typical scenarios that lead to seeing “account closed” on your credit report.

How Long Will a Paid-off Account Take to Show up on Your Report?

Lenders usually update the credit report agencies with closed account information at the end of a billing cycle. Thus, it could take one or two months before a paid-off account is reflected on your credit report.

How Long Does a Closed Account Stay on My Credit Report?

As noted above, how long closed accounts stay on your credit report can vary.

• Accounts closed in good standing (paid on time and in full) can remain on your credit report for up to 10 years.

• Accounts closed due to nonpayment (these include collection accounts, some bankruptcies, and debt settlement) remain on your credit reports for seven years from the first missed payment or from being turned over to collections. The exception is Chapter 7 bankruptcy, which usually stays on your credit report for 10 years.

Practice Good Credit Habits Going Forward

Here’s advice that can help you manage existing credit card and loan accounts well.

• First, it’s always wise to take control of your budget. Whether you do that with the 50/30/20 budget rule or a financial tracking app, keeping on top of your income, your spending, and your saving can be a money-smart move.

• Check your credit score regularly to make sure there is no fraudulent activity. You might aim for an annual review.

• Extend your credit history as much as you can with accounts that are and have been in good standing. This means it’s probably in your best interest to occasionally use a credit card account and keep it in good shape vs. closing it because you don’t use it often. This can reduce your available credit and possibly lower your debt utilization ratio.

One good idea can be to use a credit card for predictable expenses, such as streaming services, and set up automatic payments. That way, you will be paying a set amount each month and building a positive credit history.

These moves can help you keep your financial profile in good shape.

The Takeaway

Closed credit accounts will stay with you for a long time, seven to 10 years usually. Keep accounts that you have owned for a long time open and in good standing whenever possible. If you have fraudulent accounts on your credit history or ones that were not managed well, you might take steps to have them removed and possibly build your credit profile.
Keeping tabs on your credit score and your budget can be easy with the right tools, like those SoFi offers.

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FAQ

Can I get closed accounts removed from my credit report?

You can remove a closed account from your credit report if you suspect it is fraudulent by filing a dispute with the three credit bureaus. You can also contact a creditor directly and ask them to remove a closed account. However, they are under no obligation to comply with this kind of request for a “goodwill” deletion. Alternatively, you can wait for seven to 10 years, after which closed accounts will fall off your credit history.

What is the 609 loophole?

The 609 loophole is a tactic that some people think will remove bad debt history from their credit reports. A section of the Fair Credit Reporting Act states that you can write a letter to gain documentation on what you may believe is an incorrect entry in your credit history. The 609 letter theory is that if a credit bureau cannot produce a piece of information, such as the original signed copy of your credit application, they have to remove the disputed item because it’s unverifiable. However, these steps are not the same as a dispute. Also, if you have legitimate debt, even without this documentation, the debt may remain. In other words, this process is unlikely to provide a shortcut to building your credit.

How long before a debt is uncollectible?

At which point a debt can no longer be collectible varies based on the type of debt and the state you live in. It is often between three and six years, but it could be as long as 20 years. After the statute of limitations that applies, a debt collector can no longer sue you for repayment, though some might still try to collect.

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Apache is functioning normally

October 21, 2024 by Brett Tams

Fall in Portland, Maine is a spectacular experience, filled with vibrant colors and a host of activities. September to October is the best time of year to enjoy the magic of fall in Portland, from the scenic coastal views to fun downtown festivities. Stroll through the charming streets of the Old Port, where you can explore local shops and enjoy seasonal treats at cozy cafes. Don’t miss the chance to visit nearby orchards for apple picking or take in breathtaking views on a scenic drive. With local festivals celebrating food, art, and community, there’s fall things to do in Portland, ME for everyone to enjoy.

Whether you’re searching for a house to rent in Portland, ME, an apartment to call home, or ready to purchase your first home in the city, , this city has so much to offer. Let’s explore 15 fall things to do in Portland, ME, where pops of color and cozy vibes create the perfect backdrop for autumn and give you a taste of why Portland is a good place to live.

1. Pop some tags at the local thrift shops

The community around thrift and vintage shopping in Portland is eclectic and supportive, hosting regular events like swap meets and pop-up markets. Whether you’re hunting for a vintage vinyl record, mid-century furniture, or stand-out fashion statements, you’ll be sure to find something unique at one of Portland’s thrift stores.

“One of my favorite things about Portland is the amount of thrift and vintage shops we have,” shares local photographer Shado of Shado of a Rose Photography. “All within a 10-minute walk you could get incredible vinyl at Moody Lords, find that new sweater you need for fall at Material Objects, or pick up a retro video game/movie poster from Electric Buddhas.”

And, if you’ve worked up an appetite while thrifting, Shado has you covered. ”If you’re in the mood for some food just pop over to Exchange street a few blocks away. Whether you’re getting incredible chicken from Crispy Gai, eating $1 oysters on a Wednesday night at Blyth and Burrows, or having dessert at Gorgeous Gelato, you really can’t go wrong when going out in the Old Port.”

2. Admire the fall foliage in Portland

Whether you’re walking, biking, or simply taking a drive, enjoying the fall foliage in and around Portland is a perfect way to experience the changing of the seasons. The contrast of the colorful foliage with the historic architecture and coastal scenery creates a picturesque setting that feels like a scene from a postcard.

Fall colors around town

“This small East Coast city, with its cozy New England town feel, offers a little bit of something for those wanting to feel at home or someone seeking a temporary home base to do some leaf-peeping in Maine during the fall season,” describes local Portland author Marpheen Chann.

One of the best ways to experience the fall foliage in Portland is by exploring the many parks and waterfront areas. “A walk or bike ride on smooth trails can take you around Back Cove, where you can get a quality photo of Downtown Portland from across the water at Payson Park. Continue your day at Portland’s Eastern Promenade, the perfect place for a picnic with scenic views of Casco Bay and its islands,” Chann shares.

Catch a train

You can also relax into a scenic tour of the fall foliage by hopping on the Maine Narrow Gauge. “From your comfortable seat on the historic train, take in the dazzling colors of autumn, set against the backdrop of Casco Bay. You’ll hear all about Portland’s history and learn about local landmarks from onboard narration,” describes Matt Levy, general manager of the Maine Narrow Gauge Railroad. You can also get special Pumpkin Train tickets for the last two weeks of October, and continue the fun into the holiday season with a Polar Express themed train ride.

Finish the day

Hungry after a day of exploring fall in Portland? “Experience some of Portland’s iconic and diverse restaurants without the summer crowds with Cambodian-Chinese eats at Oun Lidos on Market Street,” recommends Chann. “If you’re looking for a good spot for a drink or a casual date, pickup where you left off with a friend or a book at Novel on Congress Street or snag some downtown views high up at the Top of the East on High Street.”

Whether you’re walking around town or getting into the countryside, experiencing the fall colors in Portland is an autumn must-do – finished off with great food, of course.

3. Wander the picturesque streets of Portland

“Portland in the Fall is magical,” gushes Adria Moynihan Rusk, a painter at Still Life Studio in Portland. “You’ll skip the rush of summer tourists while being here at the most picturesque time of year. Check out the Old Port and Bayside neighborhoods to find a unique selection of local shops and breweries.”

Old Port

Portland’s neighborhoods offer a mix of maritime heritage and urban appeal, inviting you to spend your autumn days wandering their streets. “Fall is a perfect time to explore Portland,” agrees Sierra Bisson, author of the travel blog The Ocean Drifter. “Walk around the cobblestone streets of the Old Port, where you’ll find great shopping and amazing restaurants.”

Charming lanes and narrow alleys wind through the Old Port, where brick buildings house eclectic shops, art galleries, and cozy restaurants. “When you’re in the area, make sure to stop by must-try spots like Duckfat and Taco Escobarr,” Bisson continues. “If you’re in the mood for some nightlife, swing by Bonfire for a fun evening with a great atmosphere and drinks.”

The Waterfront

If you’re looking for places to stop by on your stroll, Rusk is full of suggestions. “Grab a latte at Bard Coffee and walk down Commercial Street to people-watch along the waterfront,” she shares. “Take the fairy out to Peak’s Island and back, and then head to Washington Avenue for a hot bowl of Pho Ga at Cong Tu Bot. Don’t forget to try the potato donuts at the Holy Donut.”

To finish off your day of exploring Portland in the fall, Rusk recommends, “Find a park bench on the East End promenade and watch the boat traffic skip across Casco Bay. It’s hard to do it wrong, so make an adventure of it.”

4. Warm your insides with local beer tasting

Portland, ME’s craft beer scene is renowned for its creativity, quality, and variety, making it one of the top destinations for beer lovers in the country. The city boasts a high concentration of breweries, from long standing favorites like Allagash Brewing Company to newer, experimental breweries like Bissell Brothers. Many breweries are located in Portland’s industrial areas and waterfront, offering taprooms where guests can sample a range of styles, from hoppy IPAs and smooth stouts to crisp lagers and sour ales.

“You absolutely have to check out at least one of the local breweries – Portland is known for its craft beer scene,” confirms Bisson of The Ocean Drifter blog.

Must-visit breweries

“Fall in Portland isn’t complete without attending Oktoberfest at one, or more, of the city’s great breweries,” seconds local tech expert and beverage connoisseur Dan DeSimone. “I especially like Belleflower, which is walking distance from a number of other breweries like Austin Street and Rising Tide. Tandem Coffee is right down the street too if you’re in the mood for a latte break (pumpkin spice optional) between beers.”

The East Bayside is another area that is renowned for its breweries, with local chocolate shop Dean’s Sweets offering the perfect neighborhood map to plan out your day of beverage sampling. “The East Bayside is one of the fastest-changing neighborhoods in Portland, ME,” reveals Kristin from Dean’s Sweets. “There are spirit makers, food trucks, hard seltzer, and cider right alongside the many breweries and wineries. And of course, chocolate at Dean’s Sweets, for those who want a gift for others or a nibble for yourself,” she laughs.

Join a beer tour for a unique beer-tasting experience

For a fun way to spend fall in Portland and sample the craft beer scene, consider a beer tour. “Join the Maine Brews Cruise for a cozy, festive journey through Maine’s craft alcohol scene amidst the backdrop of stunning fall foliage,” shares the Maine Brews Cruise team.

With options of a guided walk through the streets of Portland or having your own designated driver on a tour bus, the Maine Brews Cruise is perfect for those who enjoy a snug atmosphere while exploring local breweries, distilleries, and wineries. “With expert guides and a warm setting, you can learn, taste, and toast to the season – flannel attire recommended for the full autumn experience,” says the team.

You can also embrace Portland’s coastal vibe with a beer and boat tour through SeaPortland. “For those eager to experience Portland’s crisp fall beauty and rich history, SeaPortland provides exclusive tours that combine sightseeing with local brew tastings,” describes the crew. “You can explore historic Fort Scammel or enjoy a Harbor Cruise, where the vibrant fall colors enhance the flavor of each locally brewed beer. These 90-minute tours promise a blend of good vibes and spectacular sights, ideal for anyone looking to savor the season.”

However you prefer to indulge in the local craft beer scene, the city’s community-focused beer culture is a great fall thing to do in Portland.

5. Get outside into Portland’s local landscape

Portland is a mix of coastal beauty and historic urban charm. Located on a peninsula overlooking Casco Bay, the city’s waterfront features working harbors, marinas, and scenic parks like the Eastern Promenade. In the fall, the vibrant foliage adds to the town’s allure, making outdoor exploration a must.

See the scenery

“Visiting Portland in the fall is many people’s highlight of the year,” states Nick Robinson of Portland Schooner Co. “For a nature experience in town, try the walking trails at the Evergreen Cemetery where you can catch migrating birds in the trees, turtles and other amphibians in the ponds, and an array of tree species lighting up the landscape with their vibrant colors.”

You can also get a new perspective of Portland’s scenery via a historic wooden schooner, sailing your way around Casco Bay on the Maine-built boat through the Portland Schooner Co. “Don’t forget your hat, sunglasses, and cozy layers,” reminds Robinson.

Enjoy your dining outdoors

“Autumn in Portland is my favorite time of year,” confesses Chelsea K Ray, a wardrobe consultant and blogger based in the city. “Breakfast right on Casco Bay at the Porthole is a must. Walk off your lobster Benedict with a stroll along the East End Trail, and don’t forget to dip your toes in the ocean at East End Beach.”

Ray recommends doing some shopping at Mexicali Blues and Ports of Call on Commercial Street before enjoying fresh seafood at DiMillos, a floating restaurant that features beautiful waterfront views. “Wrap your day up with a cocktail at the Commercial Street Pub,” encourages Kay, noting that the pub is a true local’s spot where you can share your day’s adventures with other patrons.

6. Celebrate the season with Harvest on the Harbor

Since its inception in 2007, Harvest on the Harbor has celebrated Portland’s outstanding culinary scene, showcasing the talents of local chefs, brewers, distillers, and food artisans. “This is the 16th year for Harvest on the Harbor, which draws attendees from around the world to savor the deliciousness of Maine,” shares the Harvest on the Harbor team.

Portland has earned the reputation as “The Foodiest Small Town in America,” and the festival nods to this title by highlighting Maine’s rich food and beverage culture.

“Harvest on the Harbor is a celebration of Maine-made spirits, Maine lobster, Maine oysters and Maine seafood,” confirms the team. “With four events in three days there is something for everyone, including the Maine OysterFest, From The Sea and the Maine Cocktail Classic.”

Held the last weekend of October, Harvest on the Harbor offers a fun fall outing and a tasty celebration of Maine’s local flavors and traditions.

7. Indulge in Portland’s fall flavors and festivities

Portland celebrates fall with festivals, outdoor markets, food, and events like the Portland Farmers’ Market, which overflows with fresh produce, baked goods, and seasonal flowers.

Local eats and treats

“Portland is simply vibrant in autumn,” affirms Jamie, author of the blog Travel Addict. “Whether you are tasting local beers at the Portland Beer Hub, hiking on Peaks Island, or tasting the freshest of seafood along the waterfront, it’s the perfect fall destination with something for everyone. The cuisine is top notch – with incredibly fresh seafood at Scales and exquisite flavors at Duck Fat.”

Seasonal favorites like cider donuts, craft pumpkin ales, and hearty farm-to-table dishes become staples at eateries across the city, making a food tour a perfect fall thing to do in Portland.

“Maine Day Ventures keeps you moving and learning while you eat and shop,” suggests Kristin of Dean’s Sweets. “The guide gives an insider’s behind-the-scenes taste of the most popular spots in the city. The tour includes generous portions of some Maine specialties, including lobster, blueberries, craft beer, and the always-loved Maine potato, along with some up-and-coming foodie trends.”

Fall activities

Other fun fall activities come recommended from the Harvest on the Harbor team, including visiting corn mazes, hiking, trying award-winning restaurants, shopping and gallery hopping.

“Every Friday, the City of Portland hosts a First Friday Art Walk with gallery openings,” says Harvest on the Harbor. “Performing arts opportunities include the Portland Symphony Orchestra, celebrating its 100th season with performances at a few area breweries and a pay-what-you-can Chamber Series.”

8. See the city by sea

Experience Portland by sea for stunning views of Casco Bay, its islands, and iconic lighthouses like Portland Head Light. Fall tours provide a quieter, more intimate experience, with crisp air and warm autumn sunlight reflecting off the water.

“If you’re looking to enjoy Maine’s autumn spectacle, Casco Bay Custom Charters offers cozy flannel-wrapped adventures aboard vintage vessels,” shares Dyland Suhr from Maine Tour Company. “Enjoy breathtaking views of the colorful coastline with a bottomless mimosa brunch or a sunset dinner prepared by a private chef. This is the perfect opportunity for private groups to make unforgettable leaf-peeping memories on the water.”

Charter a boat for an intimate and private experience, or take the ferry across the bay to Peaks Island for a day of strolling amongst the neighborhood’s fall colors.

“Catch the ferry at Casco Bay Lines,” recommends Kristin from Dean’s Sweets. “The 30-minute trip across the bay is fun all on its own. Get some sun and enjoy the sparkling water and cool air along the way. If you’re lucky, you may see a bald eagle or a harbor seal.”

Photo by The Children’s Museum and Theatre of Maine

9. Take a day for everyone to play

“A trip with loved ones to Portland wouldn’t be complete without a visit to the Children’s Museum & Theatre of Maine, the state’s most visited museum and top destination for play located at Thompson’s Point,” says Shultzie Fay Willows, a representative for the museum.

Kids can explore hands-on exhibits like water and air activities, an outdoor playground, and an indoor climbing structure. They can also enjoy cultural displays, aquarium tours, performances at the country’s oldest children’s theater, and creative activities in MakerSpace – all included.

To round out the fall weekend in Portland, Willows is full of all-ages recommendations. “Afterward, paint some pottery next door at Color Me Mine or explore the fascinating International Cryptozoology Museum,” she shares. “For lunch, stop by Bissell Brothers, savor a grilled cheese at Sacred Profane, or enjoy hot dogs and pierogi at Leisure Time. There is something for everyone to do, try, and explore.”

10. Journey to the countryside for a true fall farm experience

A 40-minute drive from Portland, Bowdoinham comes alive in autumn with apple picking, pumpkin patches, and hot cider. This rural town along the Kennebec River is known for its vibrant farming community and fall harvest season.

If you’re looking for beautiful colors, Stonecipher Farm is an organic farm brimming with bright veggies in the autumn months. “The ‘no-till’ approach to vegetable production means a highly organized field system, resulting in an outstanding aesthetic,” claims Ian Jerolmack from the farm. “Folks have said it looks like the king’s garden.”

When you’re done exploring the farm, head back into town and sample from many other local farms at various Bowdoinham fall festivals, where vendors line up with their fresh offerings and handmade crafts.

11. Bring Fido along for the adventure

Portland is known for being an exceptionally dog-friendly city, welcoming four-legged companions in many public spaces and businesses. Numerous restaurants and breweries have outdoor patios where dogs are welcomed with water bowls and treats. The city’s pet-friendly vibe extends to shops, where many local businesses allow well-behaved dogs.

“There are many restaurants and locations that are dog-friendly throughout the city, just make sure to check their pet policy and local leash laws to ensure you and your dog have a great and safe time enjoying Maine’s fall together,” advises Portland pet photographer Gina Soule.

“Enjoying Portland in the fall alongside your four-legged best friend gives you a taste of the very best of Maine,” Soule continues. “From having your dog join you for a stroll along the Eastern Prom, exploring Higgins beach together, to enjoying an adult beverage around a fire on the patio at Maine Craft Distilling, you can’t go wrong with any of the numerous dog-friendly locations Portland has to offer.”

12. Cozy up with a good book

Fall and books are the perfect pair, whether you’re curling up in a chair by a roaring fire or sipping on tea at a local cafe with a book in hand. “Portland has a rich and robust bookish culture, with tons of amazing bookshops throughout the city,” adds Ash Holland, local owner to The Lucky Fox Bookshop.

Local favorites include Sherman’s, which opened in 1896, residing as Maine’s oldest bookstore. Another is Longfellow’s, a classic book shop with the perk of having the occasional feline guest wandering the store, available to adopt if it happens to choose you.

But if you’re after a fun and unique bookshop experience, look no further than The Lucky Fox Bookshop. A traveling and online bookstore, The Lucky Fox is an independently-run business that hosts pop-up shops at hot spots around Portland, and centers their collection around LGBTQ themes, fantasy, and works from marginalized authors. “Check out the event page to see where we’ll be setting up shop this fall and winter; or, explore the online shop to snag your next great read,” advises Holland.

As the weather gets cooler, many bookstores also host special events like author signings, book clubs, and seasonal sales, making bookshop hopping a perfect fall activity for a day in Portland.

13. Prepare to be spooked at a haunted house

A visit to a haunted house perfectly captures the fall mood, blending eerie history with spooky entertainment as the days grow shorter and colder.

While there are multiple haunted houses you can explore around Portland, nothing quite beats The Annual Haunting at the Parsonsfield Seminary. Originally built in the 1800s, its 42 rooms transform into an epic spooky mansion for the ultimate Halloween experience. You’ll be led on a tour through the building’s four floors for a suspenseful storytelling show, guaranteed to give you some scares. Tours are offered only the last two weekends of October, and the seminary changes its act every year for a truly unique time.

While the Parsonsfield Seminary is located an hour out of Portland, it’s more than worth the trip. Make a weekend of it by staying nearby with Backcountry Excursions, where owner Cliff Krolick ensures you get the full fall experience cozying up in one of his yurts or cabins nestled within the woods.

14. Travel off the beaten path on an oyster tour of Portland

“If you’re an oyster lover visiting Portland, be sure to check out the Maine Oyster Trail,” recommends Trixie Betz, an oyster expert.

The Maine Oyster Trail, of which Portland is a major hub, offers activities like farm tours, boat tours, raw bars, shuck trucks, and even kayaking adventures, where you can see oyster farming up close and taste the product directly from the source. It’s a great fall activity that combines education, fresh seafood, and Maine’s scenic coastline.

“Fall is the best time to enjoy oysters, and what better place to do that than in Maine,” shares Betz. “Not only will you enjoy delicious Maine oysters and learn about the industry, you’ll earn prizes along the way.”

The Maine Oyster Tour includes an oyster passport you can use to keep track of the places you’ve visited; the more establishments you check into, the more prizes you earn. The farm-to-table approach of the experience gives you the unique opportunity for direct interaction with Maine’s oyster farms, making the Maine Oyster Trail a perfect fall thing to do in Portland.

Intimate moments inside Blyth & Burrows by Shado of a Rose Photography

15. Escape the chill with local nightlife

Portland’s nightlife changes with the seasons, especially in the fall when outdoor patios stay open with heaters and fire pits. Many places also host seasonal events, from Halloween-themed parties to fall harvest festivals that go into the night. Rising Tide Brewing Company and Oxbow Blending & Bottling have both indoor and outdoor spaces, and you can often find live music or food trucks.

For local music and laid-back vibes, check out the Flask Lounge for nightly live music, dancing, and up-and-coming DJs and bands. “Nestled in the heart of Portland, Flask Lounge is your favorite down-to-earth neighborhood bar,” affirms Flask Lounge owner Jessica Nolette. “Known for its unassuming charm and the city’s most affordable drinks, it truly feels like home.”

If dancing isn’t your thing, cozy up inside an intimate cocktail bar instead. The Portland Hunt + Alpine Club will serve you creative drinks in a sleek, Scandinavian-inspired space. For a warm and vintage vibe, Blyth & Burrows features a speakeasy-style experience, with handcrafted cocktails celebrating the maritime history of Portland.

Whether you’re in the mood for craft beers, live music, dancing the night away, or a more elegant evening, exploring the nightlife in Portland fall will leave you feeling warmer than you started.

Discovering fall things to do in Portland, Maine

There’s truly something special about fall in Portland, Maine. From festive farmers’ markets to cozy cafes and autumnal events, there’s something for everyone to enjoy. Whether you’re a lifelong resident or a first-time visitor, there are a plethora of fall things to do in Portland just waiting to be discovered. So bundle up, head out into the brisk air, and immerse yourself in all the fall fun this enchanting New England city has to offer.

Source: rent.com

Apache is functioning normally

October 21, 2024 by Brett Tams

A safari is a guided tour, usually in Africa, that can bring you up close to elephants, zebras, giraffes, lions, rhinos and more. Often, these adventures involve taking open-sided safari vehicles into nature and observing and photographing wild animals in their natural habitats. (Other safaris are for hunting; here, we’ll focus on the former.) If you’re planning your first safari, here are some tips.

1. Work with a travel agency that specializes in planning safaris

An elephant walks through the northern Serengeti. (Photo by Josh Garber)

Even if you’re an avid traveler, safari planning is still best left to the professionals. By using a reputable safari planning travel agency like Yellow Zebra, Abercrombie & Kent or Timbuktu, you can get several benefits:

Guidance on when and where to go based on your wants and needs. Your safari planning expert will likely have relevant information on where to go based on weather, animal migrations and what you’re looking to get out of your safari. (For instance, if you want to see hordes of wildebeest in July, your safari adviser might guide you to a different destination than if you’re looking for rhino encounters.)
On-the-ground experience about accommodations. Some safari planners have visited the properties themselves or have colleagues who have, which helps give you a better idea of what to expect before you book a property.
Help arranging transport during the safari. Even after you have the property you’re staying at sorted out, depending on where you’re going on safari, you may benefit from help arranging transport. For instance, if you’re flying to the northern Serengeti for a safari, you’ll likely fly into Kilimanjaro International Airport, but after that you may need to take a few additional, smaller flights to get closer to your accommodation (and even once you land at the airstrip closer to your accommodation, you’ll likely need a guide to pick you up and take you to your final destination). If you use a travel agency, it can set up all the internal transportation for you — and you’ll be thankful it did.
Advice about side trips to complement your safari. Even if you’re interested only in going on safari, you may want to talk to your safari travel adviser about nearby non-safari destinations to check out. For instance, you can add on some beach time in Zanzibar after your Serengeti safari or if you’re going on safari in South Africa, you could consider a beach trip to Mozambique afterward.

🤓Nerdy Tip

If you have a friend or family member who booked a safari through a travel agency and enjoyed their experience, tell the safari agency that you’ve been referred and it will sometimes offer you a discount on your booking.

2. Buy and bring the right equipment

A male lion protects a sleeping female lion. (Photo by Josh Garber)

There might not be many stores near your safari accommodation, so you’ll want to make sure you buy and bring the right equipment with you. Here are some items that you might want to bring on your safari:

Binoculars. Bringing a good pair of binoculars (we recommend either 8x, 10x or 12x magnification) will enhance your travel experience so you can see animals that are farther away, see birds better and get a closer view of your safari experience. Note that some safari accommodations offer complimentary use of binoculars during guests’ stay, so you should check with your accommodations before purchasing binoculars.
Camera. Rather than relying on your smartphone, consider purchasing or renting a camera with a telephoto lens so you can capture animals from far away for the best safari pictures. If you’re new to photography, you may want to take a few photography classes or watch instructional videos so you’re prepared to get the best shots of the animals and landscape during your safari.
Clothes that are appropriate for your safari. In general, you want to wear natural colors that blend in with the environment. Blue and black can attract tsetse flies, and try to stay away from bright colors. Additionally, depending on where you’re going, temperatures can fluctuate from cold in the mornings to hot in the afternoons, so you may want to consider safari pants that can be unzipped at the knee and turned into shorts.
Sunscreen and a wide-brimmed hat. There are days where you might spend 10-plus hours on the road and you want to make sure your skin is protected. Bringing sunscreen with you and wearing a wide-brimmed hat on your journey can help to protect your skin.
Bug spray. To help prevent mosquito and other insect bites, consider bringing bug spray such as DDT. Before deciding which bug spray to pack, check with local regulations to see if any chemicals are banned in the country you’re visiting.

Bringing the right gear can enhance your safari experience.

3. Check to see whether the planes that you’re flying to your safari have weight or other restrictions for luggage

Depending on where you’re going on safari, you may be in small planes that have luggage requirements that you may not have had to follow for other trips. For instance, Coastal Aviation in Tanzania has the following luggage restrictions for light aircraft flights:

Weight allowance of 33 pounds (15 kilograms) per person, including hand luggage.
All luggage must be in soft bags (i.e., duffel bags).

🤓Nerdy Tip

If you’ll be away for a week or more, check with your safari accommodation to see if it offers laundry services, which can help you pack lighter.

4. Embrace the experience, and expect accommodations that may be outside of what you’re used to

Wildebeest gather in the northern Serengeti. (Photo by Josh Garber)

While there are some more traditional hotel options you could book on safari — such as Four Seasons Safari Lodge Serengeti and the JW Marriott Masai Mara Lodge — you may find yourself booking a safari where the accommodations are more akin to camping (albeit higher-end camping) than a hotel.

For instance, Wayo Serengeti Green Camp in northern Tanzania is so close to the animals that you can find zebras outside your accommodations, and you can even take walking safaris, but the camp differs from typical hotels in many ways, including:

“Bucket showers” instead of typical showers. (A bucket shower is basically when the staff warms water up upon request and then fills a bucket outside of your tent that connects to the shower in your tent.)
No Wi-Fi or electrical plugs in your room, with Wi-Fi and charging only in the common area.
Set lunch and dinner times with no room service, although many camps will provide you with a bagged breakfast, lunch or dinner upon request.
You may need to be escorted to and from your tent at night to ensure your safety, including using a flashlight to alert the staff when you’re ready to be picked up from your room.

A group of zebras outside of lodging at Wayo Serengeti Green Camp. (Photo by Josh Garber)

If you’re booking a safari camp instead of a hotel, you should embrace the experience so that you can fully enjoy the tranquility instead of focusing on how the camp differs from the type of hotel experience you might normally book.

5. Look into what shots, medicines and visas you may need for your trip

As soon as you can after booking your trip, you should look into whether you need any special shots, medicines or visas for your safari. For instance, you must have a yellow fever vaccination and certificate to enter Kenya, Uganda and the Republic of Congo. Additionally, Tanzania requires citizens of the United States to get a visa to enter the country (note that you can pay for the visa on arrival).

We recommend booking an appointment with your doctor or going to a travel clinic to discuss shots and medicine and using the U.S. Department of State’s website to learn about the visas you may need.

How to book a safari on points

Safaris can be expensive, and a great way to save money on your safari is to use points. There are a couple of ways that you can book a safari on points:

Book your flights using points. A round-trip ticket from Los Angeles to Kilimanjaro, Tanzania, from June 2 to June 16, 2025, currently costs $1,704 in cash or you could use 139,000 Flying Blue miles and pay $441.10 in fees for the same flights. American Express, Chase, Capital One and Citi all let you transfer points to Air France’s Flying Blue program.
Book your accommodation using points. You can use points to book your safari accommodation either by booking a hotel like the JW Marriott Masai Mara Lodge, which allows Marriott Bonvoy members to pay for the stay with points, or by paying for your lodging with a credit card that lets you use points to offset the total balance owed, like Chase’s Pay Yourself Back program.

Even if you’re only able to offset a portion of your safari using points, it can help reduce the overall cost of what could otherwise be an expensive adventure.

A giraffe walking through the Serengeti. (Photo by Josh Garber)

How to maximize your rewards

Source: nerdwallet.com

Apache is functioning normally

October 21, 2024 by Brett Tams

As a result, the ESR Group believes the economy can sustain growth at or near its potential, assuming no major shocks to consumer or business confidence. In addition, recent payroll growth in August and September has contributed to the positive outlook. However, there are still upside risks to mortgage rates, as the 10-year Treasury yield … [Read more…]

Apache is functioning normally

October 20, 2024 by Brett Tams

Negative working capital is when a company’s current liabilities are greater than its current assets. Current liabilities are those that are due in less than 12 months. Current assets are those that can turn into cash in less than 12 months.

It’s easy to think that companies with negative net working capital would be at financial risk, but that’s not necessarily the case. There are many situations where having occasional and controlled negative working capital can actually work in a business’s favor.

Read on for an in-depth look at what it means to have negative working capital, when it can happen, and whether it’s a good or bad thing for your small business.

Key Points

• Negative working capital occurs when a company’s current liabilities exceed its current assets, indicating potential cash flow challenges.

• Businesses like supermarkets and restaurants often have negative working capital due to fast inventory turnover and delayed payments to suppliers.

• Negative working capital can, however, signal a risk of not meeting short-term obligations, potentially leading to financial strain.

• Some companies use negative working capital strategically to free up cash by delaying payments to suppliers.

• If your small business is struggling with working capital, you can take out a working capital loan or business line of credit to help meet short-term obligations.

What Is Negative Working Capital?

Working capital is the difference between a business’s current assets and current liabilities.

Working Capital = Current Assets – Current Liabilities

A current asset is an asset that can be easily converted to cash within a year. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, prepaid liabilities, and other liquid assets. A current liability is any debt that is expected to be repaid within a year. Current liabilities include obligations such as accounts payable and amounts due to suppliers, employee wages, and payroll tax withholding.

Ideally, current assets should be greater than current liabilities but for many businesses, that’s not always the case.

Negative working capital is when a company’s current liabilities are greater than its current assets, as stated on the firm’s balance sheet. While that may sound like a risky proposition, some businesses are able to dip into periods of negative working capital without any ill effects.

Negative working capital commonly arises when a business generates cash very quickly because it can sell products to its customers before it has to pay the bills to its vendors for the original goods or raw materials. It then uses that cash to purchase more inventory or expedite growth in other ways. By doing this, the company is effectively using the vendor’s money as an interest-free loan. The firm still has an outstanding liability, however, which means it can end up with negative working capital.

Positive Working Capital

Positive working capital is when a company’s current assets exceed its current liabilities. It’s the opposite of negative working capital and is usually a good position for a company to be in. Positive working capital means your business will be able to fulfill its financial obligations in the coming year and still have cash leftover to deal with any market disruptions (or other challenges) and/or invest in growth.

In order to be approved for a small business loan, businesses usually need to have a positive working capital, since many loans require assets as collateral. If the business is upside down on its debts vs. its assets, it may have trouble getting approved. However, working capital is one of many factors that lenders look at when approving loans.

Is it possible to have too much positive working capital? Yes. If assets are sitting somewhere and not helping the business grow and generate further revenue, then it’s possible they could be better used elsewhere to fuel the company’s next phase of development. To be competitive in today’s market, leveraging growth for healthy, steady business expansion is often essential.

Zero Working Capital

Zero working capital is when a company’s current assets are the same amount as its current liabilities. Having zero working capital can be a good sign, suggesting that the company is managing its resources effectively, maintaining just enough liquidity to cover its short-term obligations without tying up excess capital in non-productive assets.

However, having zero working capital can also signify that the company is operating on thin margins and doesn’t have much room for error. If unexpected expenses arise or if there’s a downturn in sales, the company could face liquidity problems.

Sometimes, a company might intentionally maintain zero working capital for a short period, perhaps to finance a specific project or investment. However, this is typically not a sustainable long-term strategy.

How to Calculate Negative Working Capital

Negative working capital is calculated by subtracting current liabilities from current assets. If liabilities exceed assets, the result is negative working capital. The formula is the same as the formula for working capital, with the end result being negative:

Negative Working Capital = Current Assets – Current Liabilities

Here’s a negative working capital example:

A gaming retailer buys $1.5 million worth of the latest console directly from the manufacturer. It sells every console within the first day, but doesn’t have to pay its bill for the next 45 days. So it uses this influx of cash to buy more consoles and further increase revenues. In this case, negative working capital works because sales are growing. As a result, this retailer should not have trouble meeting its short-term financial obligations as they become due.

Recommended: How to Calculate Cash Flow

How Negative Working Capital Arises

While negative working capital might seem alarming, there are situations where it can be a strategic choice or a temporary condition. Here’s a look at some reasons why a company might have negative working capital.

• Industry norms: Some industries naturally operate with negative working capital due to their business models. For example, retail businesses often collect cash from customers before paying suppliers for inventory. This allows them to operate with negative working capital, using suppliers’ credit to finance their operations.

• Rapid growth: A company experiencing rapid growth might have negative working capital because it’s investing heavily in inventory and receivables to support increased sales. While this can strain short-term liquidity, it’s often seen as a sign of expansion and can be managed if the growth trajectory is sustainable.

• Seasonal variation: Businesses that experience seasonal fluctuations in sales may have negative working capital during slow periods when they build up inventory and receivables in anticipation of higher demand.

• Efficiency goals: In some cases, companies deliberately manage their working capital to optimize efficiency. They may prioritize cash flow by delaying payments to suppliers or accelerating the collection of receivables, even if it results in negative working capital on their balance sheet.

When Is Negative Working Capital Good vs Bad?

As mentioned, negative working capital can either be good or bad. Let’s take a closer look at why.

Good Negative Working Capital

Negative working capital can be a good thing when companies are able to sell their inventory faster than their suppliers expect payment. This cash surplus allows the company to purchase more inventory or spur growth in other ways. In this scenario, the vendor is essentially financing part of the company’s operating and investment expenses — similar to a zero-interest loan.

Negative working capital can also provide a company with greater flexibility and agility to respond to changing market conditions or unexpected expenses, while also allowing it to take advantage of growth opportunities as they arise.

Recommended: Business Loan vs Personal Loan: Which Is Right for You?

Bad Negative Working Capital

As soon as a company is unable to pay its operational costs or suppliers on time, negative working capital can shift from good to bad. Even if a company may have utilized negative working capital in the past without issues, a hiccup in sales can hurt operations fast. Negative working capital leaves a company with minimal cushion to absorb the unexpected.

If a business must constantly delay payments to vendors and suppliers, it could strain relationships with those partners. Over time, suppliers may become reluctant to extend credit or offer favorable terms, which could affect a company’s ability to secure necessary goods and services.

Recommended: 15 Types of Business Loans to Consider

Which Industries Typically Have Higher Negative Capital?

Companies with rapid turnover of inventory or services and make their money through cash often have negative working capital. This includes large food stores, retailers, fast food restaurants, service-oriented business, e-commerce companies, and software companies.

Strategies for Dealing With Negative Working Capital

To stay on top of negative working capital, business owners may want to:

1. Fully understand the flow of cash within your company. Using a business balance sheet to track income and expenses can help you pinpoint money issues that could contribute to negative working capital.

2. Keep track of account receivables.

3. Analyze how long it takes to completely sell through inventory batches.

4. Optimize billing cycles to space out expenses to match estimated sales.

Recommended: How Much Does it Cost to Start a Business?

The Takeaway

Negative working capital is a state in which a company’s current liabilities exceed its current assets. Negative net working capital is fine as long as a company is able to pay its operational expenses and suppliers on time. If it is unable to do so, however, its long-term financial health may be in jeopardy.

While negative working capital can offer certain advantages in terms of cash flow management and flexibility, it’s essential for companies to carefully monitor and manage their working capital levels to avoid potential pitfalls and maintain financial stability.

If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.

With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.

FAQ

What does negative working capital indicate?

Negative working capital can indicate a business has a high inventory turnover, meaning it’s able to sell off inventory before any amount is owed to the supplier. On the other hand, it can also mean that the business is having difficulty receiving on-time payments from its customers.

Is negative working capital typically a bad thing to have?

Not necessarily. Businesses in retail or fast-moving consumer goods often operate with negative working capital because they receive payment from customers before paying their suppliers. However, negative working capital can also signify liquidity issues, financial distress, or strained supplier relationships if the company is unable to meet its short-term obligations.

Can working capital being too high be a problem?

Yes. High working capital often means that a significant portion of the company’s assets is tied up in short-term assets like cash, accounts receivable, and inventory. If these assets are not being efficiently utilized, it can lead to lower returns on investment and reduced profitability.

Photo credit: iStock/designer491

SoFi’s marketplace is owned and operated by SoFi Lending Corp. See SoFi Lending Corp. licensing information below. Advertising Disclosures: SoFi receives compensation in the event you obtain a loan through SoFi’s marketplace. This affects whether a product or service is featured on this site and could affect the order of presentation. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOSMB-Q424-006

Source: sofi.com

Apache is functioning normally

October 20, 2024 by Brett Tams

Minnesota, known as the “Land of 10,000 Lakes,” blends natural beauty and city life. If you’re considering a move to this northern state, it’s essential to weigh the pros and cons of living in Minnesota. So, is Minnesota a good place to live? Let’s explore what makes it appealing and some challenges residents face.

Is Minnesota a good place to live?

Life in Minnesota is characterized by its stunning landscapes, friendly communities, and a strong emphasis on outdoor activities. The largest cities, Minneapolis and St. Paul, also known as the Twin Cities, boast a thriving arts scene, diverse culinary options, and numerous cultural festivals throughout the year. Major employers include Target, U.S. Bancorp, and the Mayo Clinic, contributing to diverse job market.

For opportunities to explore the outdoors, Minnesota offers a wealth of activities year-round. In the summer, residents can explore the state’s 10,000 lakes, with opportunities for kayaking, fishing, and swimming. The extensive trail system in parks like the Boundary Waters and the Superior Hiking Trail attract hikers and campers from all over. Whether you’re drawn to the thriving job market, the rich arts scene, or the endless outdoor adventures, Minnesota has something for everyone.

Minnesota state overview

Population	5,706,494
Biggest cities in Minnesota	Minneapolis, Saint Paul, Rochester
Average rent in Minneapolis	$1,649
Average rent in Saint Paul	$1,311
Average rent in Rochester	$1,464

1. Pro: Abundant outdoor activities

Minnesota is a great place to explore. With its 10,000 lakes and numerous parks, you can enjoy various activities year-round. In the summer, fishing, swimming, and boating on lakes like Lake Minnetonka or Lake of the Isles are popular pastimes. As the seasons change, the state’s natural beauty transforms, offering excellent opportunities for hiking in the lush forests, biking on scenic trails, and enjoying the vibrant fall colors. When winter arrives, residents can embrace snowshoeing, ice fishing, and skiing in places like Afton Alps.

Travel tip: Don’t miss the Boundary Waters Canoe Area Wilderness. This stunning location has pristine lakes and incredible opportunities for canoeing, fishing, and camping, making it perfect for a weekend getaway.

2. Con: The winters can be harsh

While the snow-covered landscape can be beautiful, winters in Minnesota can be brutal, with temperatures often plunging below freezing and snow accumulating frequently. This extreme weather can impact daily life, making commuting a challenge and limiting outdoor activities for some. The subzero temperatures can lead to icy roads and increased heating costs, forcing residents to bundle up and invest in winter gear.

3. Pro: Minnesotans are friendly

Minnesotans are known for their friendliness and community spirit, which is evident in the many local events and gatherings throughout the year. Neighborhoods often come together for community events, farmers’ markets, and festivals that celebrate local culture and history. Volunteering is a common practice, and many residents engage in initiatives that support local charities and businesses.

Insider scoop: Attend the Minnesota State Fair in late August to early September, where you can sample iconic local foods, enjoy live music, and experience the best of Minnesota culture.

4. Con: There are plenty of potholes to avoid

One of the more frustrating aspects of living in Minnesota is the prevalence of potholes, particularly during the spring months. The state’s harsh winter weather, with its constant freeze-thaw cycles, takes a serious toll on the roads, leading to an abundance of potholes. These road hazards can make driving less enjoyable and potentially cause damage to vehicles, such as flat tires or misaligned suspensions. In some areas, it can feel like you’re constantly dodging potholes on your daily commute, which can be a significant inconvenience for residents.

5. Pro: Rich cultural scene

The Twin Cities are home to a variety of museums, theaters, and galleries, including the Walker Art Center and the Minneapolis Institute of Art. These institutions host a wide range of exhibits and performances, showcasing local and international artists. Additionally, events like the Minnesota State Fair and the Twin Cities Jazz Festival highlight the state’s rich arts and music scene, offering opportunities for residents to explore and enjoy diverse cultural experiences.

Insider scoop: Take advantage of the Minneapolis Institute of Art, which offers free admission to its extensive collection of art from around the world. This gem not only showcases local artists but also hosts rotating exhibitions.

6. Con: High income taxes

Minnesota has one of the higher tax burdens in the country, which can be a drawback for some residents. State income tax rates can reach as high as 9.85% for those in higher income brackets, and property taxes can also be notable, impacting overall affordability. While these taxes fund essential services like education, healthcare, and infrastructure, they can strain budgets.

7. Pro: Commitment to sustainability

Minnesota is known for its commitment to sustainability and environmental protection. Many cities, including Minneapolis and St. Paul, promote green living initiatives, encouraging residents to adopt eco-friendly practices such as recycling, composting, and using public transportation. The state has also invested in renewable energy sources, making significant strides toward reducing its carbon footprint. Residents often engage in community efforts to protect local ecosystems and support sustainable agriculture.

Insider scoop: If you’re looking to get involved locally, check out Minnesota’s Zero Waste Challenge or volunteer with organizations like Minnesota Water Stewards, where you can actively contribute to keeping the state’s water sources clean and promote conservation efforts in your community.

8. Con: Limited public transportation

While the Twin Cities have a light rail system and bus services, public transportation options in other areas can be limited. Many suburban and rural communities lack comprehensive transit systems, which can make owning a car necessary for getting around. This limitation may be challenging for those who rely on public transport or prefer a car-free lifestyle. As a result, residents may need to budget for a vehicle and associated costs, such as insurance and maintenance.

9. Pro: Relatively lower cost of living in the state

One of the appealing aspects of living in Minnesota is its relatively lower cost of living compared to many other states, particularly in the Midwest. While cities like Minneapolis and St. Paul have seen rising housing costs, they are still more affordable than other major metropolitan areas in the U.S. The average rental rate for a one-bedroom apartment in Minneapolis hovers around $1,400 per month, while in smaller cities like St. Cloud, it’s significantly lower, averaging around $875. This lower cost of living makes Minnesota a good place to live for those looking to stretch their budget.

10. Con: Beware of the ticks

Ticks are a common nuisance in Minnesota, especially during the warmer months from late spring through early fall. These small, parasitic insects thrive in the state’s wooded areas, grassy fields, and even along hiking trails. The risk of tick bites can be a concern, as some ticks carry diseases such as Lyme disease and anaplasmosis. While enjoying Minnesota’s beautiful landscapes, residents must remain vigilant about tick prevention, including wearing long sleeves, using insect repellent, and conducting thorough tick checks.

Pros and cons of living in Minnesota: Overview

Pros	Cons
Abundant outdoor activities	The winters can be harsh
Minnesotans are friendly	Plenty of potholes
Rich cultural scene	High income tax
Commitment to sustainability	Limited public transportation
Relatively lower cost of living in the state	Ticks are a common nuisance

Source: rent.com

Apache is functioning normally

October 20, 2024 by Brett Tams

A typical home needs about 17 to 30 solar panels, according EnergySage, a solar and home energy product comparison marketplace

. This wide range reflects the many variables involved, such as energy use and amount of sunshine. For an average system size of 8.1kW in sunny California, you’ll need about 20 panels.

How to calculate how many solar panels you need for your house

To calculate how many panels you need, you can use this formula:

Number of panels = annual electricity use ÷ solar panel production ratio ÷ solar panel output

The following steps guide you through the formula.

1. Find your home’s annual electricity usage

Your electricity use is measured in kilowatt-hours (kWh). To determine how much electricity your home uses, look at your electric bill history, usually available online at your utility’s website. If your gas bill is combined with your electric bill, look at the portion of your bill that’s for electricity. You’ll need to add up 12 months of electric bill data; if your utility is one of a growing number that provides Green Button data from the U.S. Department of Energy, you can use that to download a spreadsheet of your bill history and quickly calculate the total kWh for a year

U.S. Department of Energy. Green Button. Accessed Oct 17, 2024.

2. Find the production ratio for your location

Solar production ratio is the ratio of a solar panel’s estimated energy output over time to its size. The production ratio depends on your location, because some regions get more sun per day than others, increasing a solar panel’s energy output

. You can look up your state’s solar production ratio on this map created by EnergySage.

3. Determine the output of your solar panels

Your solar panel output is measured in watts. Once you have quotes from installers, they will specify the output of the proposed panels. To calculate how many panels you’ll need before you get quotes, you can use 400W, the typical output for today’s residential solar panels.

4. Calculate how many panels you need

Let’s say your home uses 10,791 kWh annually, the average in the U.S. If your production ratio is 1.5, like it is for my home in California, you’ll need 18 panels to cover all of your home’s energy usage:

10,791 ÷ 1.5 ÷ 400 = 17.99 panels

Using this formula gives you a rough, high-level estimate. Your solar installer can refine your system sizing, taking into account the factors detailed below.

Factors that affect how many solar panels you need

The exact number of solar panels you’ll need depends on these factors:

Your current electricity use

The key factor in determining the number of panels you need is how much electricity you use. If you have enough space on your roof, you’ll likely want enough solar panels to cover all of your electricity use.

Your future electricity use

Do you expect your family to grow? Are you planning to switch to an electric car or a heat pump? Will you be adding a refrigerator, pool, or air conditioning? It’s more cost-effective to install enough solar now to cover expected future use; that can also protect your investment if solar programs in your area, such as net metering, are phased out later.

The amount of sun you get

The more sun you get, the more electricity your solar panels can generate and the fewer panels you’ll need to cover your electricity use. You can get an idea of the solar resource in your area from the National Renewable Energy Laboratory (NREL) solar irradiance map.

Courtesy National Renewable Energy Laboratory.

Panel wattage and efficiency

Today’s typical residential solar installations use 400W panels, with an average range from 350W to 450W. Panels today have an average efficiency of 21% (with some up to 23% efficient), meaning that they convert 21% to 23% of the sunlight that hits them into electricity

. Higher-watt and higher-efficiency panels produce more energy but tend to cost more than their lower-watt and lower-efficiency counterparts. If your roof space is limited, you may be limited in how many panels you can have installed. In that case, you may want to consider higher-efficiency, higher-watt panels.

Your roof

How many panels you can have installed depends in part on the size of your roof, but there’s more to it than that. You’ll also need to consider the shape of the roof, whether it has obstructions such as vents and skylights, and whether it’s subject to shading from trees or buildings.

Your roof’s orientation also affects the number of panels you need; panels will generate the most energy on a south-facing roof, followed by east- and west-facing roofs

. Of course, your roof must be in good condition to be able to support the weight of the panels. After providing an initial quote using online tools, your installer will conduct a site visit to assess the condition of your roof and determine how many panels you can fit on it. If you can’t fit enough panels on your roof to cover all your electricity needs, it may still be worth covering a portion of your electricity.

Frequently asked questions

Does my house size affect how many panels I need?

Although house size may be a factor in how many panels you need, a much more significant factor is your electricity use. You are likely to use more electricity if you have a bigger house, but that might not be the case if your family is small and your house is energy-efficient.

Can I install more solar panels than I currently need?

If you expect your electricity use to increase, it’s a good idea to size your system for those future needs. Some utility companies have restrictions on system sizes, so check with your local utility to see how large they will let you size your system.

Source: nerdwallet.com

Apache is functioning normally

October 20, 2024 by Brett Tams

Today, assumable mortgages are primarily limited to government-backed loans, including Veterans Affairs (VA), Federal Housing Administration (FHA), and Department of Agriculture (USDA) mortgages. “Twenty per cent (20%) to 25% of the homes on the market will be fully assumable at one time,” Raunaq Singh, CEO of assumable mortgage platform Roam, told CNBC. “[But] the number … [Read more…]

Apache is functioning normally

October 20, 2024 by Brett Tams

A trade credit is a business-to-business (B2B) transaction where one business is able to procure goods or services from the other without immediately paying for them. It’s called a trade credit because when a seller allows a buyer to pay for goods or services at a later date, they are extending credit to the buyer.

Trade credit can be a great tool for a small business that can free up cash flow and grow a company’s assets. However, there are some drawbacks, including a short financing window and potentially high interest if you need to extend that window.

Here’s what every small business needs to know about trade credit.

Key Points

• Trade credit is a short-term financing arrangement where a supplier allows a business to purchase goods or services and pay at a later date, typically within 30 to 120 days.

• It helps businesses maintain cash flow by deferring payments, allowing them to use available funds for other operational needs.

• Trade credit generally does not carry interest if paid within the agreed-upon terms, making it a cost-effective financing option.

• Strong trade credit terms can enhance relationships with suppliers, encouraging future collaborations.

• Delayed payments may result in penalties or strained relationships with suppliers.

How Does Trade Credit Work?

Trade credit is a formal name for a common agreement between two companies where one company is able to purchase goods from the other without paying any cash until an agreed upon date. You can think of trade credit the same way as 0% financing, but with shorter terms. Sometimes trade credit is also referred to as vendor financing.

Sellers that grant their customers trade credit generally give them anywhere between 30 and 120 days to pay for the goods or services they received on credit. The range, however, can be higher or lower depending on the industry and individual seller.

Often, the seller will offer the buyer a discount if they settle their account earlier than the balance due date. If they do offer a discount, the terms of the trade credit sale are usually written in specific format. For example, if the seller offers a 5% discount if the invoice is paid within 20 days, but is willing to give the buyer a maximum of 45 days to pay the invoice, that agreement would be written as:

5/20, net 45.

If the buyer is unable to pay their invoice within the set time period (which is 45 days in the above example), the vendor will typically charge interest. If that happens, trade credit is no longer an interest-free form of financing.

Recommended: 15 Types of Business Loans to Consider

Common Terms

Common terms used in trade credit include:

• Net terms: This specifies the number of days the buyer has to pay the invoice, such as “Net 30” or “Net 60,” meaning payment is due within 30 or 60 days.

• Discount terms: Offers a discount for early payment, like “2/10, Net 30,” meaning a 2% discount is available if paid within 10 days.

• Credit limit: The maximum amount a supplier allows a buyer to purchase on credit at one time.

• Invoice: A detailed bill issued by the supplier outlining goods or services provided and the payment due.

• Grace period: The extra time allowed beyond the due date to settle the account without incurring penalties.

Types of Trade Credit

The three main types of trade credit include:

1. Open Account: The most common form, where the supplier delivers goods or services and the buyer agrees to pay by a specified date, usually 30 to 120 days later.

2. Promissory Note: A formal written agreement where the buyer promises to pay the supplier by a certain date, often used when open accounts are not available.

3. Trade Acceptance: The buyer signs a formal agreement accepting the supplier’s terms and acknowledging their obligation to pay at a future date. Trade acceptance is sometimes used for larger or international transactions.

Who Uses Trade Credit?

Business trade credit is very common in the B2B ecosystem. Businesses that use trade credit include:

• Accountants/bookkeepers

• Advertising/marketing agencies

• Construction/landscaping companies

• Food suppliers

• Restaurants

• Manufacturers

• Wholesalers

• Retailers

• Cleaning services

Pros and Cons of Trade Credit

Pros and Cons of Trade Credit for Buyers

Pros of trade credit for buyers include:

• Frees up cash: Because payment is not due until later, trade credits improve the cash flow of businesses, enabling them to sell goods they acquired without having to pay for those goods until a future date. It can be a good option for companies expanding into a new market or that have seasonal peaks and dips.

• Possible discount: Depending on the trade credit agreement, if the buyer pays the invoice within a certain amount of time, they may receive a discount on the goods or services they purchase.

• 0% interest: The cost of capital can be a burden on some small businesses. If the buyer can settle the invoice within the agreed upon time frame, there is no interest charged on this type of financing.

Cons of buyers using trade credit include:

• Short payment period: The length of the trade credit payment term varies, but they are often 120 days or less, which is shorter than most types of small business loans. For a growing small business, this may not be enough time. Companies that need a longer repayment period may want to look into other types of debt instruments.

• It’s easy to over-commit: With discounts and wholesale prices, it can be tempting to buy too much of a particular good. Not only does this create excess inventory, but it also creates a bigger debt obligation.

• Possible penalties for late payments: Depending on the trade credit agreement, there may be negative consequences for late payments, such as interest or a fine. In addition, the company might report your late payment to the credit bureaus, which could damage your business’s credit score.

Recommended: Getting a Cash Flow Loan for Your Small Business

Pros and Cons of Trade Credit for Sellers

Pros of using trade credit for sellers include:

• Beat out competitors: Companies offering trade credit may be able to gain an advantage over industry peers that don’t offer trade credit. Because it can be difficult for some small businesses to get a bank loan, they may seek out suppliers offering trade credit.

• Develop a strong relationship with clients: Offering trade credit increases customer satisfaction, which can lead to customer loyalty and repeat business.

• Increase sales: Trade credits are still sales even if payment is delayed. Trade credit can also encourage customers to purchase in higher volumes, since there is no cost to the financing. Therefore, a trade credit can provide the opportunity for growth and expansion.

Cons of trade credit for sellers include:

• Delayed revenue: If your business has plenty of cash, this may not be an issue. However, if budgets are tight, delayed revenue could make it difficult to cover your operating costs.

• Risk of buyer default: Sometimes customers are unable to pay their debts. Depending on the trade credit agreement, there may be little to nothing the seller can do other than sell the debt to a collection agency at a fraction of the cost of the goods provided.

• Less profit with early payment discounts: If the seller offers a discount for early payment, they will earn less on the sale than they otherwise would.

Recommended: Understanding Business Liabilities

Trade Credit Accounting

Trade credit needs to be accounted for by both buyers and sellers. The process, however, will vary depending on the company’s accounting method — specifically, whether they use accrual vs cash accounting.

With accrual accounting (which is used by all public companies), revenue and expenses are recorded at the moment of transaction, not when money actually changes hands. With cash accounting, on the other hand, a business records transactions at the time of making payments.

A seller who offers trade credits and uses accrual accounting can face some complexities if the buyer ends up paying early and getting a discount or defaulting (and never paying). In this case, the amount received doesn’t match their account receivables and the difference becomes an account receivable write-off, or liability that must get expensed.

Trade Credit Instruments

Typically, the only formal document used for trade credit agreements is the invoice, which is sent with the goods, and that the customer signs as evidence that the goods have been received. If the seller doubts the buyer’s ability to pay in the allotted time, there are credit instruments they can use to guarantee payment.

Promissory Note

A promissory note, or IOU, is a legal document where the borrower agrees to pay the lender a certain amount by a set date. While it’s usually used for repaying borrowed money, it can also be used to pay for goods or services.

Commercial Draft

One hitch with a promissory note is that it is typically signed after delivery of the goods. If a seller wants to get a credit commitment from a buyer before the goods are delivered, they may want to use a commercial draft.

A commercial draft typically specifies what amount needs to be paid by what date. It is then sent to the buyer’s bank along with the shipping invoices. The bank then asks the buyer to sign the draft before turning over the invoices. After that, the goods are shipped to the buyer.

Banker’s Acceptance

In some cases, a seller might go even further than a commercial draft and require that the bank pay for the goods and then collect the money from the customer. If the bank agrees to do this, they must put it in writing — which is called a banker’s acceptance. It means that the banker accepts responsibility for payment.

Trade Credit Trends

Trade credit is widely used worldwide. In fact, the World Trade Organization estimates that 80% to 90% of all world trade relies on trade credit in some capacity. It’s so widespread that it’s given rise to a type of financing called accounts receivable financing (also known as invoice financing).

With invoice financing, a company that offers trade credit can get a loan based on their outstanding invoices, effectively enabling them to get paid early. When they receive payments from their customers, they give that money (plus a fee) to the financing company.

Recommended: Understanding Business Liabilities

The Takeaway

Trade credit in business is very common and occurs when one company purchases goods or services from another company but doesn’t pay until a later date.

Essentially an interest-free loan, trade credit can be particularly rewarding for young businesses or seasonal businesses that may find themselves occasionally strapped for cash. A key drawback of trade credit, however, is that the buyer is generally expected to pay the invoice relatively quickly, sometimes within a month or two. For many small businesses, that may not be enough time, and they might be better served by getting a small business loan.

With SoFi’s marketplace, it’s fast and easy to search for your small business financing options.

FAQ

What is an example of trade credit?

Let’s say a restaurant offers kobe beef on its menu and gets its beef from a food supplier in Japan. The supplier offers them a 5/30, net 60 trade. This means that the restaurant has 60 days to pay for a shipment of beef. If they pay the invoice within 30 days, however, they will receive a 5% discount on the purchase price.

Are there any benefits to trade credit?

Yes, benefits of trade credit include interest-free financing for buyers, improves cash flow for buyers, increases sales volumes for sellers, and it builds strong relationships and customer loyalty for sellers.

When do businesses typically use trade credit?

Businesses use trade credit either when they do not have the capital on hand to make a purchase or they need to temporarily free up cash for other expenses. Trade credit is also a good option for young businesses that may not qualify for other forms of business financing.

Photo credit: iStock/Hiraman

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Source: sofi.com

Apache is functioning normally

October 20, 2024 by Brett Tams

Michigan, the Great Lakes State, is full of beautiful seasons, craft beer and of course beautiful lakes. All these aspects make Michigan a good place to live. With its diverse landscapes, ranging from scenic coastlines to bustling centers, the state provides plenty of living experiences for newcomers. However, like any place, there are pros and cons to living in Michigan that potential residents should consider.

Is Michigan a good place to live?

If you’re moving to Michigan, you’ll be surrounded by natural and urban beauty. Large cities like Detroit and Grand Rapids provide city lifestyles with thriving arts scenes, while Ann Arbor is home to one of the country’s top universities, the University of Michigan. Michigan’s economy is powered by automotive manufacturing, healthcare, and education. Outside of the cities, Michigan is known for its stunning natural beauty, with four of the Great Lakes bordering the state and countless inland lakes and forests, making it a haven for exploration.

In Michigan, you’ll find an affordable cost of living compared to coastal states, but that comes with the challenges of long, harsh winters. The state’s culture is one of innovation, with residents taking pride in their automotive history, music scene, and love for the great outdoors. Whether you’re looking to live in a dynamic city or a quiet lakeside town, Michigan is a great place to call home.

Michigan state overview

Population	10,077,331
Biggest cities in Michigan	Detroit, Grand Rapids, Warren
Average rent in Detroit	$1,680
Average rent in Grand Rapids	$1,707
Average rent in Warren	$980

1. Pro: Michigan is an affordable state to live

Michigan’s cost of living is particularly affordable when it comes to renting, making it an attractive place to live. In cities like Grand Rapids, the average rent for a one-bedroom apartment is around $1,707, which is notably lower than many metropolitan areas across the U.S. Even more affordable options can be found in smaller towns and suburban areas, where rent prices can drop significantly below $1,000. For example, cities like Kalamazoo offer budget-friendly rental markets while still providing access to urban amenities. You’ll find that a one-bedroom apartment averages about $1,088 a month. Along with affordable rent, everyday living expenses such as groceries, utilities, and healthcare are generally lower in Michigan than in high-cost regions like the East or West coasts.

2. Con: Michigan winters are intense

Michigan winters can be extremely challenging, especially in the Upper Peninsula and northern parts of the state. Heavy snowfall, icy roads, and frigid temperatures can last from November to March, making daily commuting and outdoor activities difficult. Cities like Grand Rapids and Detroit receive an average of 60-70 inches of snow each year, while areas closer to the Great Lakes experience even more due to lake-effect snow. For those not accustomed to dealing with extreme winter weather, the long, cold months can be a major drawback.

Insider scoop: Make sure your vehicle is equipped with snow tires, and consider an apartment complex that has a snow removal service to avoid being snowed in during a storm.

3. Pro: Access to the Great Lakes

One of Michigan’s biggest perks is its proximity to the Great Lakes. With over 3,200 miles of coastline, there is plenty to do and see. Residents can enjoy boating, fishing, swimming, and beachcombing during the warmer months, particularly on Lake Michigan’s western shores or the quieter beaches of Lake Huron. Towns like Traverse City and Holland attract both locals and tourists for summer getaways, while other coastal towns offer peaceful living year-round. For those who appreciate lakefront living, Michigan provides unparalleled access to some of the largest freshwater lakes in the world.

4. Con: Infrastructure is poor

While Michigan’s natural beauty is a major draw, its infrastructure is often in need of repair. Many roads and highways, particularly in urban areas like Detroit, are filled with potholes, leading to frustrating commutes and costly vehicle repairs. Though the state has invested in some improvements, there’s still much to be done in terms of road maintenance.

5. Pro: The craft beer scene is amazing

Michigan has earned a reputation as a craft beer lover’s heaven, with a thriving brewery scene that ranks among the best in the country. Home to over 400 breweries, the state offers a wide variety of locally crafted beers, from rich stouts and hoppy IPAs to innovative sours and seasonal brews. Cities like Grand Rapids, dubbed “Beer City USA,” lead the charge with renowned breweries such as Founders Brewing Co. and Brewery Vivant, while other cities like Kalamazoo and Ann Arbor are also major players in the craft beer world.

Insider scoop: For a truly unique experience, visit Bell’s Brewery in Kalamazoo, one of the oldest and most famous breweries in the state.

6. Con: High auto insurance rates

One downside to living in Michigan is the state’s notoriously high auto insurance rates. Michigan has historically had some of the highest premiums in the country, due in part to its unique no-fault insurance system. This adds an extra financial burden for drivers, particularly when combined with the state’s harsh winters and deteriorating roads, which can lead to more frequent car repairs and accidents.

7. Pro: Four beautiful seasons

Michigan offers a true taste of all four seasons, each with its own unique beauty. Spring brings blooming tulip fields in Holland, where the annual Tulip Time Festival draws visitors to see over six million tulips in bloom. Summer is filled with long, sunny days perfect for enjoying the state’s many lakes and beaches, especially along the shores of Lake Michigan in towns like South Haven and Grand Haven. Fall is arguably the most stunning, with vibrant foliage blanketing the state. Areas like the Upper Peninsula, especially Tahquamenon Falls State Park and Porcupine Mountains, are prime spots for leaf peeping. Winters are cold but perfect for snow sports, with ski resorts in places like Boyne Mountain and Crystal Mountain.

8. Con: Public transportation is sparse

Michigan’s public transportation system is limited, especially outside of its larger cities. While Detroit has the QLine streetcar and a bus network, the options are far from robust compared to major cities like Chicago. Ann Arbor, home to the University of Michigan, offers a more developed bus system (TheRide) within city limits, but for those in suburban or rural areas, reliable public transport is hard to come by.

9. Pro: Great higher education opportunities

Michigan is home to some of the best higher education institutions in the country. The University of Michigan in Ann Arbor is a top-ranked public university, known for its prestigious programs in law, medicine, and engineering. Michigan State University in East Lansing is renowned for its agriculture, business, and veterinary programs, as well as its vibrant campus life and Big Ten athletics. Additionally, Michigan offers a wide variety of smaller liberal arts colleges, like Kalamazoo College and Hope College, which provide excellent academic opportunities with a more intimate campus experience.

10. Con: Pesky mosquitos and bugs in the summer

Michigan’s natural beauty comes with a downside: pesky mosquitoes and other bugs. The state’s many lakes, wetlands, and forests create ideal breeding grounds for mosquitoes, especially in the summer months. Areas like the Upper Peninsula, known for its dense forests and outdoor recreation, can become especially bug-ridden during peak summer, making outdoor activities like camping or hiking less enjoyable without proper insect repellent.

Insider scoop: To beat the bugs, many locals swear by repellant devices, which create a protective zone against mosquitoes without the need for sprays.

Pros and cons of living in Michigan: Overview

Pros	Cons
Michigan is an affordable state to live in	The winters here are intense
Access to the Great Lakes	The infrastructure can use imporvements
The craft beer scene is amazing	Very high auto insurance rates
Four beautiful seasons	Public transportation is sparse
Great higher education opportunities	Pesky mosquitos and bugs in the summer

Source: rent.com