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Apache is functioning normally

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

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

SOSMB-Q424-006

Source: sofi.com

Apache is functioning normally

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.

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 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

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.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .

SOSMB-Q424-007

Source: sofi.com

Apache is functioning normally

Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:

Explore how the 2024 presidential candidates’ tax plans could impact your finances and what to know before voting.

What tax proposals are the 2024 presidential candidates making, and how might these policies affect your finances? What should you know before voting on tax issues? Hosts Sean Pyles and Anna Helhoski discuss the key differences in the candidates’ tax plans and how to make informed decisions to protect your financial future. They begin with a discussion of the importance of tax policy, with tips and tricks on understanding credits and deductions, how taxes fund government services, and the long-term effects of tax laws on your paycheck.

Then, Anna talks to Amy Hanaeur, the executive director of the left-leaning Institute on Taxation and Economic Policy, to discuss the candidates’ specific tax proposals. They discuss proposals to cut corporate taxes, extend expiring tax cuts, provide child tax credits, and eliminate taxes on Social Security benefits.

Check out this episode on your favorite podcast platform, including:

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Episode transcript

This transcript was generated from podcast audio by an AI tool.

Sean Pyles:

Taxes. Nobody likes them, but it’s how we pay for government, from local police and fire departments to the folks at the national level who make our currency and on and on. So what’s a fair and effective tax structure? That’s an argument democracies have been having since the Greeks came up with the system of government, and it’s an argument that we’re still having in earnest in the 2024 presidential campaign.

Amy Hanaeur:

Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans. So to the richest 20% of Americans. So just for a sense of what that would cost, in 2026 alone, that would cost more than $280 billion.

Sean Pyles:

Welcome to NerdWallet’s Smart Money podcast. I’m Sean Pyles.

Anna Helhoski:

And I’m Anna Helhoski.

Sean Pyles:

This is episode three of our Nerdy deep dive into presidential policy and personal finance. And today, Anna, it’s so exciting. We’re going to talk tax policy.

Anna Helhoski:

Wait, wait, don’t everybody leave yet. This is really important stuff. It has a huge effect on your bottom line, so you should know what the two presidential candidates are proposing to do with your tax dollars and then vote accordingly.

Sean Pyles:

Sometimes it’s hard to figure out exactly what this or that tax policy will do to your paycheck. There are proposals for credits and deductions and write-offs, and it can pretty quickly induce your brain to go on zombie status. But even just the broad strokes are important to understand, so we’re going to go through some of that today.

Anna Helhoski:

And remember, Sean alluded to this at the top of the show. Taxes pay for just about every government service you use. Every time you drive on a highway, every time you call 911. Every time you jangle cash in your pocket. Every time you pay for college with a federal student loan.

Sean Pyles:

Every time you get a letter delivered by the USPS. Every time you go to a national park. Every time your grandparents get a Social Security check. Every time you find yourself in a court of law. And every time you realize that national security is pretty important. All of that is the government at work and it’s funded by the money that comes out of your paycheck.

Anna Helhoski:

Is some government spending ridiculous? Yup. Some of my own spending is ridiculous, by the way, but I digress. You can argue over the size of government. A famous Republican anti-tax lobbyist named Grover Norquist once said his goal was to “reduce it to the size where I can drag it into the bathroom and drown it in the bathtub.” But it’s hard to imagine how anything would get paid for if there weren’t taxes, including all those other campaign promises that candidates are making.

Sean Pyles:

Right. How would anything get done if it weren’t for, you know… government? But as we’ve been saying throughout this series, the most important part of all of this is that you are an educated voter. That you understand how the presidential candidates’ tax policies could affect you.

Anna Helhoski:

And then take that knowledge to the ballot box and vote your conscience. Or for a lot of us, take that knowledge to the mailbox after you’ve filled in your ballot at home.

Sean Pyles:

I’ve got to say I really love voting from the comfort of my couch, usually in my pajamas. As we’ve noted previously, we want to say at the outset that we are not here to take sides or fan the flames of an already contentious political season. Our goal here is the same goal that we always have at NerdWallet: to help you, our listeners, make smart informed decisions about the stuff that impacts your finances. Sometimes that means choosing the right credit card for your needs. Other times, that means voting for the candidate who you believe will help you achieve your life and financial goals. All right. Well, we want to hear what you think too, listeners. To share your thoughts around the election and your personal finances, leave us a voicemail or text the Nerd hotline at 901-730-6373. That’s 901-730-N-E-R-D, or email a voice memo to [email protected]. So, Anna, who is helping us sort through tax policy today?

Anna Helhoski:

Today, we’re speaking with Amy Hanaeur. She’s the executive director of the left-leaning Institute on Taxation and Economic Policy. Amy Hanaeur, thank you so much for joining us.

Amy Hanaeur:

Thanks for having me.

Anna Helhoski:

Unsurprisingly, Kamala Harris and Donald Trump have introduced some pretty different tax plans. So to kick off our discussion, I’m hoping you can give an overview of what stands out most to you in these plans.

Amy Hanaeur:

I would say there’s a pretty dramatic difference between Vice President Harris’s tax proposals and former President Trump’s tax proposals. It’s one of the biggest policy differences between these candidates.

Vice President Harris has plans to raise revenue from wealthy people and corporations. She’s also a little more concrete about her plans for the child tax credit, which helps middle-class families with children and other families with children. Trump has kind of a history of slashing taxes in ways that largely redound to wealthy people and corporations. He has also put forth some middle-class tax cuts. Those also will go to the wealthiest as well as to middle-class families. So I think his proposals all in all are more expensive and can make it a little harder to pay for the things that are spending priorities for either party.

Anna Helhoski:

Harris has come out with a number of tax breaks, including up to $50,000 for new small businesses, a $25,000 housing tax credit for first-time home buyers, and an increased child tax credit that includes $6,000 for new parents. Would these be effective policies and walk us through their feasibility?

Amy Hanaeur:

I would say that the $6,000 newborn child tax credit along with her proposal to restore the expanded child tax credits for older children that took place during the pandemic are very proven, very effective policies. And we know that the expanded child tax credit cut poverty almost in half. We know that it helped lots and lots of middle-class families. And we know that even at a time when unemployment was sky high, those child tax credits kept the economy moving and kept a lot of families solvent. And the new expanded $6,000 that she’s proposing for newborns is really important because that first year is so important developmentally for children, and so for families to have a little bit more resources in that first year, I think, makes a lot of sense.

The other two things that you asked about I think are a little more marginal in their effect and maybe not the very best approaches. The tax break, the $50,000 for new businesses is a little complicated because a lot of new businesses don’t actually earn enough to pay taxes. And so they would probably stretch that until when they are profitable, and then they would reduce their taxes once they are profitable further down the road. We just don’t think that that makes as much sense as some other approaches. The tax credit for new home buyers is an interesting idea. I think the Vice President is pairing that with some activities on the supply side to make sure that there’s more housing. But I think that those supply-side activities are a crucial part of that because if you just give a tax credit to new home buyers, it could end up driving up the cost of housing. I don’t think it’s the most important or the strongest part of her tax proposals.

Anna Helhoski:

And we need to have more housing supply in order to have more first-time home buyers.

Amy Hanaeur:

Anna Helhoski:

I want to shift over to Trump. He certainly wants to extend the 2017 tax cuts made under his administration, and he said he plans to lower the corporate tax rate even further. Can you remind us what was in the 2017 Tax Cuts and Jobs Act and what is set to expire next year? I know it was a complex law, but if you could give us the highlights.

Amy Hanaeur:

The 2017 tax law really cut the corporate rate from 35% to 21%, and the result of that was that corporate tax payments plummeted, and a lot of huge profitable corporations continued to pay far below the statutory rate. So the rate was 21%, but actually, lots and lots of corporations pay much, much less than that. Our research shows, and the research of a lot of other scholars shows that these kinds of cuts increase income and racial inequality. They also… This is kind of important. They send a massive windfall like 40 cents of every dollar to foreign investors because foreign investors own 40% of corporate stocks. That is just not a very well-targeted proposal, and it would really cost us a lot in revenue, which could reduce the ability of either party to execute on their spending priorities.

Anna Helhoski:

Has the former president said he wants all of those tax cuts renewed? Are there any proposed changes or is it just an extension?

Amy Hanaeur:

The corporate tax rate that I was just talking about is actually permanent, the cut that they already made. But as you said, he’s proposing further cuts to that corporate rate. So that’s a new proposal. That’s not an extension. The part that they made temporary were the individual components of the 2017 tax law, and they did that because it cost too much and it wasn’t possible to pass it with the policy mechanism that they were trying to use at the time because they were trying to do it with only one party’s support. In order to get it below the overall cost limit that is imposed on Congress, they made the individual tax cuts temporary. Former President Trump has said that he wants to extend all of the individual tax cuts that were in that 2017 law.

Anna Helhoski:

What has Harris said about that tax legislation?

Amy Hanaeur:

Well, she has said that with all of her tax cuts, there would not be a situation in which somebody earning less than $400,000 pays more. She has said that for the individual tax cuts, she wants to extend them for those earning less than $400,000 but phase them out over $400,000. I can say a little more about what the 2017 law did distributionally.

Anna Helhoski:

Amy Hanaeur:

If that’s helpful.

Anna Helhoski:

Absolutely.

Amy Hanaeur:

That law as a whole did deliver really large tax cuts to those in the top 1%, and that’s kind of a narrow sliver. I’m talking there about people with income over $800,000 a year. These cuts are the part that expire in 2025, but the Trump campaign wants to make them permanent. Two-thirds of the cost of making those individual tax cuts permanent would go to the richest fifth of Americans, so to the richest 20% of Americans. So just for a sense of what that would cost, in 2026 alone, that will cost more than $280 billion. It really does start to cut into revenue.

Anna Helhoski:

Have you seen any shifts in where Trump’s tax policy proposals are now versus when he was president?

Amy Hanaeur:

I would say that he’s kind of looking to just intensify his previous approach. Now, he’s floated some other things and his vice-presidential candidate has floated some other things, but in terms of concrete things on paper, it’s a little bit more of the same. He talked about, for example, repealing the tax on Social Security benefits. It would lower taxes for US households, I think, by an average of about $550 per household. But it would come with a big price because it would reduce Social Security and Medicare revenues by about $1.5 trillion over the next decade.

Anna Helhoski:

I want to talk specifically about Trump’s tariff proposal. He wants to do a 10% to 20% across-the-board tariff on all imports and up to 60% for goods from China. He has also suggested replacing personal income taxes with these new tariffs. Amy, how do tariffs on foreign countries and taxes for Americans intertwine?

Amy Hanaeur:

This is a sort of surprising proposal because it’s a real departure from the traditional way that Republicans have approached this issue. And frankly, a departure from how Democrats have approached this issue in recent years as well. Most economists absolutely agree that tariffs fall on consumers, but there can be reasons why advocates for particular industries, sometimes the owners, sometimes the workers, may want them at different times for particular economic development reasons or retaliatory reasons if they think that another country has appropriated a technology or industry that we had previously dominated in. I think what’s really challenging about the Trump proposal is that it is so across-the-board, and also that he hasn’t been very clear about exactly what he would do. So at some times, he has talked about 10% across-the-board tariffs. At other times, he has talked about 20% across-the-board tariffs. That’s a pretty big difference. And then he’s talked about, as you said, the additional 60% on China. An economist named Kim Clausing estimated 20% across-the-board tariffs would cost the typical household $2,600 a year. It’s a substantial hit to families and it manifests itself much in the way that inflation does. It would just be basically every product that every household buys would end up costing more.

Anna Helhoski:

Now, the Biden administration has largely kept the tariffs that Trump imposed during his previous term. What has Harris said about that and her view in general on tariffs?

Amy Hanaeur:

I’m not sure that she has said that much. I think that this is a part of the Biden administration policy that they are perhaps somewhat quiet about. I think it’s challenging to repeal those tariffs for political reasons. But I think from a policy perspective, it’s just important to note that they do fall on households. They’re not as large as those 20% across the board and 60% on China tariffs that the former president is putting forth. So they don’t have the same kind of impact, but it is kind of universally accepted that those kinds of tariffs do fall on consumers in terms of increasing prices.

Anna Helhoski:

More of our interview in a moment. Stay with us. Amy, real quick, I just want to turn back to Social Security for a second. Trump had said that he wants to get rid of the tax on Social Security. What would be the impact of that on the average American? What would that mean for their paychecks right now and for the prospect of them having Social Security when they reach retirement age?

Amy Hanaeur:

The Tax Policy Center did an analysis of this proposal and found that it would lower taxes for US households by an average of $550 a year. But at a big, big cost because it would end up reducing revenues in Social Security and Medicare by about $1.5 trillion with a T over the next decade. This would end up driving both programs into insolvency much faster, and so it would end up resulting in sharply reduced benefits for tens of millions of recipients. And the Tax Policy Center has not yet estimated, I don’t believe, the exact nature of those benefit reductions, but we know that Social Security is just one of our most important social programs, pulls a huge number of people out of poverty. The elderly used to be the poorest population age group in the United States, and after Social Security was put in place, they became the least likely to be poor among American households. So it’s really a huge part of our social safety net and just a huge part of our society.

Anna Helhoski:

Now, Trump and Harris don’t agree on very much, but one place where there is overlap is that both candidates have proposed to lift the tax on tips. Can you explain that for us and what it would mean for the average American, both those who receive tips and those who pay them?

Amy Hanaeur:

Getting rid of taxes on tips is probably more about politics than about creating a great public policy. First of all, a very small share of the workforce receives all of its income from tips. And so it would be kind of flawed because do we really think that a waitress who earns a very modest salary and a teacher’s aide or a teacher or a nurse’s aide who earns a really modest salary, do we really think that the waitress should pay a lower tax rate than a teacher or teacher’s aide or nurse’s aide who earns the same amount? And that would be the effect of this policy. It would also really encourage shifting some compensation to tips. So high-paid professionals could ask that their fees instead be structured as tips.

Now, Vice President Harris does have a check in place for her proposal that kind of gets at that because she has suggested ways that it could be targeted toward those earning under $75,000 a year. That certainly makes a big difference in terms of the possibility for gamesmanship by very wealthy earners. But fundamentally, we just think there are better ways at getting at helping low-wage workers who receive tips. Namely, we could get rid of the tipped wage. We could say that every worker deserves a minimum wage. The sub-wage for tipped workers is $2.13 an hour at the federal level. So we’re talking about a ridiculously low wage in 2024.

Anna Helhoski:

It seems like either candidate will struggle to bring forth most of these proposals if there’s not enough support in Congress. Either Harris’s or Trump’s proposals, what do you see there being congressional support for? And is there anything that Harris or Trump could do unilaterally?

Amy Hanaeur:

Obviously, a lot depends on the composition of Congress. So if either side gets a trifecta, if we have Republicans taking both Houses and the presidency, I would expect that former President Trump would be able to again cut taxes on billionaires and again cut taxes on corporations. I don’t think his Social Security proposals would go through under any party because Social Security is sort of famously the third rail of American politics, and it really does disrupt our social structures to think about reducing the funding available to pay for Social Security.

For Vice President Harris, if she were to get a trifecta, I think she would probably succeed in getting some of those revenue raisers. I could see her getting through the extensions of the individual tax cuts for those earning less than $400,000 but getting rid of them for those earning more. And in the perhaps most likely situation where we have divided government, I think a lot of this would be up for debate, and I think we’d end up seeing some mishmash of these two approaches.

Anna Helhoski:

Amy, what have we not seen Kamala Harris or Donald Trump weigh in on that you think is an oversight?

Amy Hanaeur:

There are pieces that are in Kamala Harris’s written proposals that don’t get a lot of attention. And one of the big ones is something very obscure called stepped-up basis. Sometimes people call it buy, borrow, and die. That basically says that for very wealthy people, if they acquire stocks or other assets that really grow in value over the time that they own those assets, that if they pass those on to heirs without selling them first, nobody ever pays taxes on the difference in value. So that’s always something that I think should get more attention. But it’s complicated to explain. As you can see with my efforts to explain it, it’s just complicated. And it’s easier to say, “We’re going to raise the corporate tax rate or we’re going to lower the corporate tax rate.” I think that’s something that could get more attention.

Anna Helhoski:

Is there anything else you want to call out about Harris or Trump’s tax plans?

Amy Hanaeur:

I would just say the big picture is: The Harris approach raises more revenue. It raises it primarily from the wealthiest and corporations. The Trump approach puts us deeper in debt and gives a lot more away to wealthy people and corporations. And both of them, I think, have some proposals that would help middle-class families on the tax side.

Anna Helhoski:

All right. Amy Hanaeur, thank you again for talking with me today.

Amy Hanaeur:

Yeah, thank you so much.

Anna Helhoski:

Sean, I want to emphasize one thing before we wrap up, and that’s how much authority the Executive Branch has to change taxes. The president does technically have the power to tax, but they generally don’t exercise that. What they do is press Congress to pass policies that they want. What we don’t know right now is what campaign promises will have bipartisan appeal once we have both a new administration and a new congressional makeup.

Sean Pyles:

You know, Anna, tax is a funny thing, where you make one change in one area and it can have drastic, sometimes unintended ripple effects in other areas. Two examples that come to mind are how Harris providing a tax credit for first-time home buyers could drive up home prices, and how Trump’s tax cuts exacerbated racial and wealth inequality. And these examples underscore how complicated and confusing tax policy can be. But it’s really, really important for all of us to engage with this since a number of components of the Tax Cuts and Jobs Act of 2017 will sunset in 2025. So we have a unique opportunity right now to reshape taxes and our votes will have a hand in that.

Anna Helhoski:

And one thing that Amy Hanaeur didn’t delve too deeply into is the no tax on tips policy that both Trump and Harris are endorsing. But fortunately, listeners, we did go into no tax on tips in a previous episode. So have a listen to our August 21st episode on that topic, which we’ll also link to in today’s show notes.

Sean Pyles:

Anna, tell us what’s coming up in the fourth and final episode of the series.

Anna Helhoski:

Sean, we’re going to talk about two specific areas of policy that affect a large swath of voters: student loans and healthcare.

Eliza Haverstock:

The fate of the repayment plan is now largely in the hands of the courts. However, the president can influence the situation by directing the Justice Department how to proceed with appeals. Harris would likely continue to vigorously defend the SAVE plan in court. Meanwhile, Trump is not likely to defend SAVE.

Anna Helhoski:

For now, that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at (901) 730-6373. That’s (901) 730-N-E-R-D. You can also email us at [email protected]. And remember, you can follow the show on your favorite podcast app, including Spotify, Apple Podcasts, and iHeartRadio to automatically download new episodes.

Sean Pyles:

This episode was produced by Tess Vigeland and Anna. I helped with editing. Rick VanderKnyff and Amanda Derengowski helped with fact-checking. Megan Maurer mixed our audio. And a big thank you to NerdWallet’s editors for all their help.

Anna Helhoski:

And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general educational and entertainment purposes and may not apply to your specific circumstances.

Sean Pyles:

And with that said, until next time, turn to the Nerds.

Source: nerdwallet.com

Apache is functioning normally

Whether you’re looking at apartments in Dallas or searching for an apartment in Charlotte, renting can be a convenient and flexible housing solution, especially in today’s ever-changing real estate market.

However, renting isn’t for everyone, and it’s essential to weigh the advantages and drawbacks before signing a lease. In this ApartmentGuide article, we’ll explore some of the key pros and cons of renting an apartment and offer a few valuable tips to help you decide which option is more suitable for you.

Renting an apartment comes with many positives and can either be a short-term option for those seeking to eventually purchase a home or a long-term solution for those who have no desire to own a home.

1. Flexibility and mobility

One of the primary benefits of renting is the freedom it provides. Most leases are for a year or less, allowing tenants to relocate without the commitment of a long-term mortgage. This flexibility is ideal for individuals who might need to move for work or who simply want to experience different areas.

2. Lower maintenance costs

Renters generally aren’t responsible for strenuous maintenance issues and repairs, which are typically covered by the landlord or property management. While renters are still responsible for day-to-day apartment maintenance, renters will encounter fewer unexpected expenses, making it easier to budget and save for other financial goals, like buying a home in the future.

3. Access to amenities

Mallory Padgett with Element Fence Company shares how renting a unit at an apartment complex can come with various amenities such as “pools and gyms” in addition to shared community spaces. These attractive amenities come included in the rent and can provide added convenience and social opportunities that may not be as accessible or affordable in a privately owned home.

4. Fewer upfront costs

Renting usually requires a security deposit and the first month’s rent, which is significantly less than a down payment on a house. This lower initial financial commitment makes renting an accessible option for people at various stages in life, whether they’re saving up for a house or not yet ready for homeownership.

Owner of Austin-based design and remodeling service, Hoeft Design and Build, Luke Hoeft shares that with lower rental costs, “This frees up more cash flow to focus on other savings goals.” However, Luke adds, “If you see yourself staying in the city you live in for more than five years, buying a home instead can make more financial sense as you will benefit from the appreciation of your home.”

Tenant rights

Additionally, as a renter, certain legal protections may apply and you’ll want to do your research when searching for a place to rent. Raham Popal with Law Firm For Tenant Rights shares a couple protections and rights that may be applicable to renters (although may vary by state, city, and county) that you otherwise wouldn’t have as a homeowner:

  • Rent control protections that “limit future rent increases.”
  • Eviction protections that “can prevent the landlord from recovering possession at the end of the lease term.”

While renting an apartment offers various amenities and easy maintenance, there are cons to consider that may make renting only a temporary strategy.

1. Lack of equity and investment

Rent payments don’t build equity. While you’re paying for a place to live, you’re not investing in a property that will appreciate over time. For some, this is seen as “throwing money away,” as there is no long-term financial benefit.

2. Limited control over the property

Renters may have restrictions on what they can change or update in the apartment. Decorating limitations, pet restrictions, or a no-renovation policy can make it challenging for renters to personalize their space to suit their needs and preferences.

3. Potential for rent increases

Unlike a fixed-rate mortgage, rental rates can increase, sometimes significantly, with each lease renewal. This lack of cost stability can be a financial strain, particularly in high-demand areas where rents are rising quickly.

4. Less privacy and space

Apartments are typically smaller than houses, which can mean less space for storage and privacy. Additionally, apartment living often involves close proximity to neighbors, which may not provide the quiet or solitude that some people prefer and may ultimately result in filing a noise complaint.

Deciding whether to rent or buy is a personal choice influenced by financial readiness, lifestyle preferences, and long-term goals. Renting offers flexibility and fewer responsibilities, making it an appealing option for those not ready for the commitment of homeownership. On the other hand, the lack of equity-building opportunities and limited control may make homeownership a more attractive option for others.

Ultimately, understanding the pros and cons of renting an apartment can help you make an informed decision about your housing future. Whether you choose to rent or buy, being aware of both options’ benefits and challenges will set you on the path toward a comfortable, enjoyable living experience.

Source: apartmentguide.com

Apache is functioning normally

Everywhere you turn, another ad is sharing the good news of a great deal. There’s only one catch: You’ve got to download their app to get it.

The trend in app-based rewards and offers is driven by many things at once. A prolonged period of high inflation made everything feel expensive to consumers. So they started making trades — eating in, buying store brands or waiting to make big purchases, for example. That set off alarm bells for companies as they saw sales slumping so much that price hikes couldn’t make up for it.

Meanwhile, in the background, technology has improved, making it easy and convenient to place an order or pay with a phone. And companies have realized their app-wielding customers are some of their best.

So how do companies bring inflation-weary shoppers and diners back or entice them to buy more often? They offer deals in the form of value meals, coupons and rewards. And they put the deals on their apps.

Price-conscious shoppers want a deal

Retailers know the mental math customers are doing right now when they decide where to spend their money. That’s why they’re clamoring to offer the best and most relevant deals to get people through their doors. In-app deals and rewards aren’t new, but they’ve become the perfect place to tempt customers with tailored offers using notifications, location-tracking information, order history or other data.

Take groceries, for example. Persistently high food prices have made people more price sensitive, making them hunt harder for a good deal, says Sean Turner, co-founder and chief technology officer at Swiftly, a retail tech company that offers digital platforms and data analytics to grocery stores.

“Because it’s such a high spend for consumers and there is so much variety of choice and how you allocate those dollars and how you trade up or down depending upon your budget, shoppers spend a bunch of time kind of trying to obsess and optimize over that pricing,” he says.

Saving time and money

Finding the right item at the right price can shape a person’s entire shopping trip, Turner says. “That’s the battleground for these retailers and that’s going to determine do I go to Lucky’s or do I go to Safeway or Raley’s this week?”

Historically, shoppers relied on weekly circulars that came in the newspaper and advertised the week’s price cuts and coupons. Now, those deals appear front and center in the store’s app.

And while you’re in the app, you can check the rest of your grocery list against the store’s inventory and prices, adding a layer of convenience people will come back for. “You want to know that it’s going to be there. Where is it? What’s the price going to be? And that’s how shoppers are using a lot of these retailer apps right now.”

For instance, recent “digital deals” on the app for QFC (part of the Kroger grocery chain) included $4.99 for frozen fish sticks and other products from Gorton’s ($6.99 without the app) and $5.99 for a box of six Kind bars ($7.99 without the app).

Creating perks for members

Forget punch cards. Companies hoping to secure customer loyalty have gone all out to build a list of membership perks designed around their apps. Customers typically don’t have to download the app to join the program and reap rewards, but some bonuses happen exclusively on the app. Here are a few examples:

  • Lululemon members get early access to new products on the company’s app, among other special privileges. 

  • McDonald’s app users get points with each purchase that can be redeemed for free food. First-time app users get a free Big Mac with a $1 minimum purchase.

  • The North Face’s XPLR Pass lets members earn points toward rewards when they use its app to check in while visiting a national park or monument.

Concerns about privacy

What might seem like a killer deal comes with a cost. Every time you download an app, you’re agreeing to hand over your personal data to that company, says R.J. Cross, director of the Don’t Sell My Data campaign with PIRG, a consumer advocacy group. “We’re accidentally opting in to our data being collected all the time.”

It’s hard to know what purpose that data collection serves. The more that’s collected and stored — or sold to third parties — the more likely it’ll be exposed in a security breach, Cross says. “It’s not a transparent system. People have to be on their guard.”

Consumer advocates also fear how the use of personal data can influence pricing. Dynamic pricing generally refers to the use of technology to automatically change prices based on supply and demand. But what happens when a company knows a lot about you and your shopping habits and knows you can’t see what it’s charging other people for the same item?

“It’s a system that has the capacity to be predatory,” Cross says.

(Turner says Swiftly, which powers mostly regional and independent grocery stores’ apps, doesn’t invest in dynamic pricing technology for this reason. “There’s some sense that that might not be the most fair thing to consumers,” he says.)

Tip: Don’t download every app

Privacy risks aside, a trove of personal consumer data also enables companies to use targeted advertising to entice people to spend money. Maybe money they’d never planned to spend.

Not every deal is a deal, Cross warns. It’s more like a nudge. “It’s so permeated throughout our culture that we make it hard for someone to opt out of being barraged by so many targeted appeals and deals.”

She would have consumers avoid loyalty apps altogether and push back on companies that say you have to have an app to access something like a boarding pass for a flight or a ticket to a concert. But if you do get the app, be choosy, she says. “Maybe limit it to the ones you visit regularly instead of a one-time deal.”

If you do opt to download an app to your phone, make sure to review your privacy settings to avoid letting companies collect whatever data they want, including your activity on other apps.

Source: nerdwallet.com

Apache is functioning normally

Known as the Gateway to the Midwest, St. Louis, MO, showcases a vibrant blend of Midwest history with modern culture. From gorgeous gardens to unique cuisines, this city holds a wide variety of one-of-a-kind experiences around every corner of its iconic neighborhoods. Whether you are moving to an apartment in St. Louis, MO, renting a house in the city, or exploring the best spot in the Midwest to buy a home, this curated list of 11 hidden gems in St. Louis is here to help you get to know the city like a local. 

Image, taken at Forest Park, courtesy of Debra Aslanidis Photography. 

1. Get back to nature with some of the cities best natural landscapes 

“If you’re a nature enthusiast, the Missouri Botanical Garden is a must,” shares Debra, owner of Debra Aslanidis Photography. “They have different plants and flowers for every season, so there is always something new. Additionally, Forest Park, although a pretty busy spot, is a gorgeous place to visit. Unwind with a book, have a picnic with your family, or check out the St. Louis Zoo and the Art Museum right next door.” 

2. Explore the “tails” of Left Bank Books 

In the beautiful and historic Central West End, queer- and women-owned Left Bank Books sells a wonderfully curated selection of new and used books and hosts a variety of public community book clubs. Stop by one of their literary events in-store and around the city, or explore the shelves for Orleans, a local feline celebrity often found supervising the store from his cat tree. 

3. Head west to Wild Crush Wine Bar(n)

This hidden gem in St. Louis sits just west of the heart of the city in Town and Country. A mother-daughter-owned business, Wild Crush is the first in Missouri to offer self-serve wine dispensaries with over 28 wines available on tap. Visit their wine bar(n) on Fridays to enjoy live music from local artists and gaze across their gorgeous seven-acre park from their patio as you sip on your favorite wine.

4. Try a contemporary twist on local cuisine

Little Fox is a beloved neighborhood restaurant in the heart of Fox Park, St. Louis, known for their award-winning cuisine. Inspired by Brooklyn bistros and other travels, their sophisticated yet approachable dishes and drinks feature flavors that are rooted in local culture and sure to make you fall in love with the area.

5. Spend some time at the biggest little museum in Missouri 

If you’re looking for a truly unique thing to do in St. Louis, The Miniature Museum of Greater St. Louis is a great place to start. With two floors of exhibit space featuring rotating miniature displays, every visit is guaranteed to be a new experience. Stop by to marvel at the many dollhouses, vignettes, and room boxes, or join a class to learn how to make your own. 

6. Travel to a tropical community hub 

Whether you’re looking for an early morning cocktail or a late night cup of coffee, Harvey’s Coffee & Cocktails has you covered. This new Midtown café is a hidden gem in St. Louis. From the moment you step inside this nondescript brick building, you’ll be transported to a beachside café with a full coffee and cocktail menu available all day. Their weekly community events are sure to help you get to know St. Louis in no time. 

7. Check out The Grove neighborhood 

“St. Louis is a city of neighborhoods, and I love The Grove,” shares Beckie, owner of local Serendipity Homemade Ice Cream. “Centrally located as a major north-south thoroughfare, it’s known for its inclusive bars, restaurants, and music venues.” Along with Serendipity’s homemade ice cream, baked goods, and Spirited Shakes, there is something for everyone in this vibrant neighborhood. 

Image courtesy of Levels Nigerian Cuisine. 

8. Embark on a culinary adventure with Levels

Levels Nigerian Cuisine brings the rich flavors of Nigeria right to the heart of St. Louis. Whether you’re longing for a taste of home or you are eager to explore something new, their authentic dishes, like Party Jollof Rice and refreshing Palm Wine, offer a bright and unforgettable dining experience that will delight your senses.

9. Bring some magic to your child’s learning experiences 

“If you are looking for an amazing place to take your little kids, I cannot recommend The Magic House enough,” shares Irene, owner and photographer of Four Fireflies Photography. This local children’s museum offers a wide variety of hands-on learning experiences made to engage and inspire children of all ages. “My family can spend most of the day there creating art, playing pretend, and learning all sorts of new things,” says Irene. 

10. Relax in a haven of flavor and connection

Blood & Sand is the perfect cozy spot to unwind. This hidden gem in the heart of downtown St. Louis offers a welcoming atmosphere where you can relax with exceptional cuisine and handcrafted cocktails inspired by the relationships they create with their guests. They are eager to pour you a drink and get to know you. 

11. Find joy in every season at Tower Grove Park

“Tower Grove Park is my favorite park in St. Louis because it is beautiful year-round,” shares Stacey of Stacey Vandas Photography. “There are flowering trees in the spring, gorgeous leaves in the fall, and it’s super pretty decked out in snow. It’s a great place for a walk with family, friends, and dogs, and the Farmers Market from April to October makes for a great Saturday morning activity.” 

Hidden gems in St. Louis, MO: The perfect Gateway to the Midwest

Whether you’re considering moving to the Gateway City or you’re trying to get to know your new home, this list of 11 hidden gems is sure to help you decide whether St. Louis, MO is a good place to live. From rich historical culture to new modern hangouts, this city has so many spots worthy of exploring. You’ll feel like a true St. Louisan in no time with the guidance of these local experts. 

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From the world-renowned city of Chicago to charming small towns like Galena and Peoria, Illinois offers various living experiences for its residents. But like any state, living in Illinois comes with its own set of pros and cons. Here’s a closer look at what life in Illinois entails.

Is Illinois a good place to live?

Moving to Illinois blends urban and rural living, providing residents with access to both city life and serene countryside settings, such as the Shawnee National Forest. The state has a robust economy driven by key industries like manufacturing, agriculture, and technology, along with numerous higher education institutions like the University of Illinois and Northwestern University. However, this economic opportunity comes with challenges, including fierce competition for jobs, particularly in major cities like Chicago.

Sport fans will feel right at home in Illinois, with major league teams like the Chicago Bears (NFL), Chicago Bulls (NBA), and Chicago Cubs (MLB). Whether you’re attracted to Chicago’s arts scene, its renowned museums, or its diverse dining options, Illinois is a good place to live.

Illinois state overview

Population 12,812,508
Biggest cities in Illinois Chicago, Aurora, Joliet
Average rent in Chicago $2,202
Average rent in Aurora $1,550
Average rent in Joliet $1,240

1. Pro: Diverse cultural experiences

One of Illinois’ greatest advantages is its cultural diversity. Chicago is a global city, home to a mix of cultures that contribute to its rich arts scene, food variety, and beautiful neighborhoods. You can enjoy everything from world-class museums like The Art Institute of Chicago to live blues performances in the city’s music clubs. Illinois celebrates its diversity through numerous cultural festivals, including the Chicago Air and Water Show, Taste of Chicago, and Lollapalooza.

Insider scoop: For an authentic local experience, venture beyond the big-name festivals and explore neighborhood events like the Puerto Rican Festival in Humboldt Park.

2. Con: High taxes

A notable downside to living in Illinois is its high taxes, which are frequently seen as a drawback by residents. The state has one of the highest property tax rates in the nation, with an average effective rate of about 2.07%—a crucial consideration if you’re planning to buy a home. In addition to property taxes, Illinois imposes a flat state income tax of 4.95%. While this rate is lower than in some states, the burden increases when combined with local taxes. Sales taxes are also significant, particularly in Chicago, where the total rate can climb as high as 10.25%.

3. Pro: A transportation hub

Illinois is one of the nation’s transportation hubs. The state’s central location makes it ideal for logistics and travel, with easy access to highways, railroads, and O’Hare International Airport — one of the busiest airports in the world. Whether you’re commuting within the state or heading to another part of the country, it’s easy to navigate in Illinois. Chicago, in particular, has an excellent public transportation system, including the iconic “L” train network, which connects various neighborhoods to downtown and surrounding suburbs. 

Travel tip: If you’re flying out of O’Hare, avoid rush hour traffic by taking the Blue Line “L” train straight to the airport. It’s often faster than driving, especially during peak travel times, and you’ll skip the hefty parking fees.

4. Con: Harsh winters and unpredictable weather

Illinois winters can be brutal, especially in northern cities like Chicago. The freezing temperatures, heavy snowfalls, and icy conditions make commuting difficult and increase heating costs. The weather is also unpredictable throughout the year, with frequent thunderstorms and high winds in the spring and summer. Even severe weather, including tornadoes, is common in the central and southern parts of the state.

Insider scoop: Locals know to invest in high-quality winter gear, including snow tires or an AWD vehicle to make winter driving safer. Also, it’s smart to keep an emergency kit in your car with blankets, snacks, and a shovel, especially if you’re commuting long distances in the snow.

5. Pro: Strong job market in urban areas

The job market in Illinois, particularly in cities like Chicago and Naperville, is strong. Chicago is home to Fortune 500 companies, financial institutions, and a growing tech scene. Additionally, Illinois plays a key role in agriculture and manufacturing, and healthcare and education also offer great employment opportunities. 

6. Con: Traffic congestion in urban centers

Although Illinois has great transportation infrastructure, traffic congestion can be a major downside, especially in and around Chicago. Rush hour traffic can extend commutes significantly, and the infamous Chicago gridlock is something that residents often have to navigate. Additionally, road construction during the warmer months can lead to more delays.

7. Pro: Affordable living outside of Chicago

If you’re looking for affordable living outside of Chicago, several suburbs provide more budget-friendly options while still providing access to the city. Cities like Joliet, Aurora, and Naperville are great examples. Joliet, about 45 miles southwest of downtown, has average rent around $1,240 for a one-bedroom apartment. Aurora, a bit closer at 40 miles away, offers an average rental rate of about $1,550 for a one-bedroom. These suburbs offer a balance of affordability, amenities, and convenience for those looking to live near Chicago without the high city costs.

8. Con: Air pollution in urban areas

While Illinois has beautiful natural landscapes, air quality in densely populated areas like Chicago can be problematic. Industrial emissions, heavy traffic, and other pollutants contribute to poor air quality, which can exacerbate respiratory conditions and reduce overall quality of life in some urban areas, particularly during the summer months.

9. Pro: Outdoor recreation and scenic parks

Though often overshadowed by urban life, Illinois has plenty of outdoor spaces to explore. The state is home to the Shawnee National Forest, the scenic Mississippi River, and numerous state parks that offer hiking, camping, and boating. Illinois is also part of the Great Lakes region, giving residents access to Lake Michigan’s waterfront for fishing, sailing, and beach days.

Insider scoop: Check out Starved Rock State Park for its stunning waterfalls and canyons — a hidden gem for hiking enthusiasts.

10. Con: High competition for certain jobs

One of the challenges of living in Illinois, particularly in urban centers like Chicago, is the high competition for certain jobs. With the state being home to a diverse economy and key industries such as finance, technology, healthcare, and education, many flock to Illinois in search of career opportunities. As a result, positions in these fields, especially in tech, corporate finance, and healthcare, can be highly competitive. 

Pros and cons of living in Illinois: Overview

Pros Cons
Diverse cultural experiences High taxes
A transportation hub Harsh winters and unpredictable weather
Strong job market in urban areas Traffic congestion in urban centers
Affordable living outside of Chicago Air pollution in urban areas
Outdoor recreation and scenic parks High competition for certain jobs

Source: rent.com

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Security cameras are legal to purchase and use to protect your home or business, with some exceptions. U.S. states have specific laws about security cameras with slightly different standards for consent to recording and hidden cameras in private or public settings.

In general, don’t place a camera anywhere someone would have a “reasonable expectation of privacy,” including bedrooms, bathrooms and guest rooms — even cameras pointing into a neighbor’s private spaces

.

If your cameras have audio capabilities and can pick up a conversation, remember that some states have “all-party consent” laws that require everyone talking to consent to the conversation being recorded.

Camera laws to know about

Expectation of privacy

The concept of reasonable expectation of privacy is a part of the Fourth Amendment of the U.S. Constitution

. It originally referred to government intrusion into private spaces but is also used to assess home security scenarios. For example, an overnight guest has a reasonable expectation of privacy in a home.

As security technology evolves, there may be new interpretations of this right on a case-by-case basis, but in general, it’s best to keep cameras out of places where people can reasonably expect not to be recorded. For example, a landlord might be able to place a security camera in a common area, such as a lobby, but might not be able to place a security camera inside a rented apartment.

One-party consent

Some federal consent laws for recording primarily concern audio, not video. For example, 18 U.S. Code §2511 pertains to the recording of conversations — over the phone or in person through a security camera — if at least one person involved has consented

. Some states require everyone involved in a conversation to consent to being recorded.

Camera laws by state

State laws concerning video and audio recording can have slightly different wording, but in general they maintain the same principle as federal laws: keep cameras out of places where people have a reasonable expectation of privacy. Here are some examples.

Recording

  • With consent. Arkansas and Hawaii, for example, require consent to record anyone in a private space

    . In Georgia, you’ll need consent unless you’re recording on your own property for security purposes, as long as you don’t invade anyone’s reasonable expectation of privacy.

  • No confidential information. In California, it’s illegal to record “confidential” communications

    .

  • No trespassing. In Minnesota, it’s illegal to enter someone’s private property to install a camera or to record through the window of someone else’s home

    .

Hidden cameras

  • In many states, such as Alabama, Arkansas, Delaware, Kansas, Maine, Michigan, New Hampshire, South Dakota, Tennessee and Utah, you need someone’s consent to record them with a hidden camera (in some states, it’s worded as using hidden cameras in places with a reasonable expectation of privacy).

What happens if I record someone without their consent?

Invasion of privacy can be a misdemeanor or a felony, depending on the state laws and what was recorded. If someone is recorded without their consent, they may be able to sue the party responsible

.

How do I prevent my security cameras from violating privacy laws?

Keep security cameras out of private spaces, such as bedrooms and bathrooms. If a camera can see into a neighbor’s property, change the angle or take advantage of privacy features from home security providers, many of which allow you to tailor a “privacy zone” that blocks out part of a camera’s view field.

Most security cameras we’ve tested have a “privacy shutter” that keeps the view field blocked most of the time, only opening when motion is detected and the system is armed.

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Source: nerdwallet.com

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Visionary architectural designer Jean-Michel Gathy is recognized as the creative force behind some of the world’s most iconic luxury hotels and resorts.

The man who, alongside the late Ed Tuttle and Kerry Hill, established the DNA blueprint of Aman Resorts, has worked on some of the most recognizable luxury hospitality projects in the world — including the Marina Bay Sands infinity pool in Singapore, the famed Aman New York, and the recently launched Jumeirah Bali.

He also designed Amanyara, a luxury Aman Resorts retreat in the Turks and Caicos Islands, set on the shores of an 18,000-acre nature reserve. Here, one of the 20 private villas Gathy envisioned is being offered for sale, newly listed for $13,900,000 with Muffy Ward and Sean O’Neill of The Agency Turks and Caicos.

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Part of Amanyara, a luxe Aman Resort in Turks and Caicos

Photo credit: Kaieri Photo and Video / The Agency

Amanyara Villa 16 is part of the larger Amanyara resort designed by the renowned architect Jean-Michel Gathy on the shores of Northwest Point Marine National Park in Providenciales, Turks and Caicos.

Adjacent to protected parkland and overlooking a marine reserve, the luxury beachfront resort is known for its signature pavilions and villas, and luxe amenities, which include world-class restaurants, the tranquil Aman Spa, and various wellness and fitness facilities.

By the numbers: What $13.9M buys you in Turks & Caicos

Photo credit: Kaieri Photo and Video / The Agency

While harder to quantify than your ordinary mainland listing, Villa 16 offers a total of 5 bedrooms, 5 full baths, and 1 half bath, spread across a generous 11,954 square feet of living space.

Baked into the price is access to Aman Resorts amenities, which range from watersports to yoga and wellness facilities.

Villa 16 consists of 5 spacious guest pavilions

Photo credit: Kaieri Photo and Video / The Agency

Tucked away in a secluded, lush setting, Amanyara’s Villa 16 boasts 5 spacious guest pavilions, each thoughtfully designed to offer tranquility and comfort and boasting an indoor-outdoor living design. At the center of it all sits the expansive Great Pavilion, designed for both relaxation and entertainment.

The pavilions are arranged around a central pool

Photo credit: Kaieri Photo and Video / The Agency

Adding to the sense of seclusion, the pavilions have been built around a central body of water, with a few other pools and an oversized reflecting pond doubling down on the water features.

Future owners get to enjoy upscale Aman Resorts amenities

Photo credit: Kaieri Photo and Video / The Agency

Villa owners get to enjoy the luxurious amenities at Amanyara, including the Nature Discovery Centre, beach amenities, paddleboards, kayaks, four clay Har-tru tennis courts, a fitness center, and a Clubhouse with shuffleboard, billiards, wide-screen televisions, ping-pong, and a world-class soccer pitch.

Particularly the wellness features it’s renowned for

Photo credit: Kaieri Photo and Video / The Agency

Chief among the amenities are the wellness-oriented facilities Aman Resorts is known for; in the case of Amanyara, these include a luxurious spa with 4 treatment rooms, a relaxation pavilion, an outdoor yoga sala and pool, as well as a fully equipped pilates studio and boxing studio.

A place for peace and relaxation

Photo credit: Kaieri Photo and Video / The Agency

Amanyara draws its name from the Sanskrit word for peace, evoking a sense of calm and belonging, and the Arawak Indian word for place, which combined give it a moniker that translates into “peaceful place” — an apt name for the serene resort.

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Source: fancypantshomes.com