How to Boost Income During a Financial Crisis?

A financial crisis occurs when your debts, expenses, and bills exceed your household income. On the other hand, organizations might also face cash issues when they fail to make repayments to their lenders.

In both cases, it is best to look out for money management solutions that can help to boost income. Standard practices like putting your assets on rent, selling rarely used items, etc. can help to survive for some time. However, they fail to deliver a sustainable long-term salary, and especially not a boost.

Fortunately, there are a few ways to deal with debt problems. They may even help to boost income and make a family feel less miserable during a financial crisis. The methods include joining UK government programs, compensation, and income tax credit.

Methods and Programs to Overcome a Financial Crisis

●      Earned Income Tax Credit

Earned Income Tax Credit is often overlooked income generation means during employment. However, income changes or recent layoffs may make the person eligible in the same year with financial problems.

The credit received relies on the family size and income amount of the person. The qualification of the credit requires falling beneath a certain amount while employed and doesn’t rely on income tax eligibility.

●      Unemployment Compensation

Unemployment Compensation

A reduction in working hours or job loss can create a significant effect on financial well-being. However, a person should always apply for unemployment compensation as fast as possible in any of these scenarios.

Unfortunately, the benefits of unemployment compensation may get revoked if you voluntarily left the company or got fired. The federal government establishes and administers programs of each state.

One such source includes the National Employment Law Project (NELP). It mentions some of the best methods of unemployment compensation through publications. Besides this, a person can opt for guaranteed loans for unemployed.

The unemployment loans can provide cash between £100 and £5000. It would depend on the credit score or ratings, repayment options, steady recurring income, etc. of the borrower. Moreover, these would help to recover from ongoing debts as well as cover bills, expenses, and fees.

●      SNAP or Supplemental Nutrition Assistance Program

SNAP or Supplemental Nutrition Assistance Program

Besides loans, unemployment compensation, and earned income tax credit, choosing SNAP would reduce expenses. The program provides food stamps to help in supplementing food budget during a financial crisis.

A person can apply for SNAP assistance through a local office, commonly found in community public assistance buildings. Some states offer the provision of online applications. But sending a letter or calling an office is mostly available in almost every state. The information is available on the government website.

Unfortunately, some applications get denied due to arithmetic mistakes or eligibility confusion. Therefore, a person shouldn’t get confused and reapply without any second, though. The person can even call, send a letter, or review rejection reason online and ask for the corrections or help with the application.

●      Other Programs

Supplemental Food for Mothers

SNAP is not the only program for food assistance. Women with children below five years of age or pregnant can apply for WIC or Women, Infants, and Children program. The local public health departments administer and give vouchers for food supplementation.

The supplemental food is made to take care of the mother’s health and children’s early development. WIC also has a national lunch program to help snack or meals to school children. Aside from this, it also has an after nutrition, breakfast, and summer nutrition programs.

Furthermore, local unions and communities also provide food for people with a financial crisis. Many sites enlist the locations of cafeterias and food distribution centers wherein a family can get food.

●      Other Methods

If the programs and money generation options still don’t compensate for the home essentials such as money and food, then there are other methods. These include collecting owed debts, increasing working hours by starting as a freelancer or working at a second place.

Staying at home, unwilling to work, or inability to clear job interviews would increase the monetary burden if would make the situation chaotic with the rising child care costs, taxes, living expenses, etc.

Along with these methods of increasing income, a person can start an online business with a free website. The person can also sell self-made products or resell company products through online selling websites.

The money would also increase after clearing short-term debts, rounding up loans, and paying the borrowed sum back to the lenders. Moreover, borrowers can always opt for short or long-term loans to build financial stability, start a business, study for career growth, etc.

The government provides various types of student loans to help in the completion of higher education, graduation, and post-graduation. These allow the borrower to start paying back after getting employment.

Therefore, a person can build a career at no cost in the beginning and pay low-interest rates on the borrowed amount after employment. The same is also possible with unsecured high-interest loans.


A financial crisis occurs when the liabilities, expenses, fees, and debts exceed assets and incoming cash flow. SNAP, WIC, unemployment compensation, earned income tax credit and other programs, as well as methods, can help to overcome this burden.


Every business, no matter which industry it is in, needs money to operate and expand to other geographies. Companies at times can’t generate sufficient cash flow to fund these processes and they seek funding from an external source. This process of raising funds is anything, but manageable. This processing of raising money for growth is challenging, no matter which stage of your business you are in.

However, things become easy when you have complete knowledge of ways and sources of financing.

Fortunately, there are many sources of raising funds for new or existing businesses in the UK. Direct lenders are offering bad credit loans with no guarantor and no credit check to established businesses and young start-ups. These are unsecured, i.e. collateral-free loans which do not require you to produce a guarantor, unlike in a commercial bank. This blog will introduce you to some of the funding sources which you can explore to raise capital for your business.  

Traditional Sources of Funding

Traditional Sources of Funding

The old businesses that are in existence continue to adapt to this traditional method of raising money via banks. This is because the business owners have now built a rapport with the managers of the bank they put their money in.

Based on a long history of business transactions, the bank gives them a line of credit or overdraft facility on their current account with the bank. This is a mutually beneficial relationship for the bank as they know the borrower’s business inside out, and thus there are pretty low chances of credit risk.

And for the borrower, he gets quick money with less paperwork and also receives a lower interest rate due to a strong relationship with the bank.

Other additional benefits that the borrowing business may get are no collateral, no guarantor, no strict loan application processing, and no restricted covenants on loan.

Thus, many traditional businesses in The United Kingdom (UK) still rely on these conventional sources of financing. However, for a new customer, banks in the UK conduct strict credit checks for every loan applicant, ask to pledge any security as collateral against the loan, produce a guarantor, etc.

Your financials need to be stable, and cash flows should be consistent to get a bank loan in the UK.



Crowdfunding is proving to be a modern method that is trending in the UK. This mode of raising capital is predominantly for the small and medium enterprises operating in the country.

Many investors who are both individuals and companies invest in crowdfunding projects expecting decent returns from it. Many crowdfunding platforms are coming up in the UK scene, both as donation and reward crowdfunding platforms, the debt crowdfunding platform, and equity-based crowdfunding platforms. Some of the famous crowdfunding platforms are JustGiving, Seedrs, Syndicate Room, Funding Circle, Zopa, Crowd Cube, to name a few.

Peer-to-Peer Lending (P2P)

Peer-to-peer lenders work in a way that they act as intermediaries between the lender and borrower and bridge the gap between them.

These days, many of the P2P platforms are also allowing investors/lenders to take equity ownership in the borrower’s company. This mode of financing has tasted success in only a few years of their operations by helping many companies raise funds. Some of the famous P2P lenders in the UK are Rate Setter, Axia Funder, Capital Rise, Blend Network, Crowd Property, to mention a few.

Direct Lenders

Direct Lenders

These lenders are present online and offer bad credit loans. These lenders are present online, and their loan application process is pretty smooth. The best part is that the loan amount is transferred to your bank account on the same day you apply for it.

  • These are quick loans given on a short-term basis to start-ups and small companies. You neither need to pledge any asset as collateral to get the loan and nor produce any guarantor to represent you.
  • Another merit of applying for these loans is that your credit score will not exacerbate even if the loan application is rejected. This is unlike banks where your credit score will get affected if your loan application is not approved.
  • These loans have minimum documentation, and it takes just 5-10 minutes to fill the loan application form and upload necessary documents.

When it comes to repayment, the borrowing company can sit with the lender and negotiate on the repayment schedule and other repayment terms and conditions. You can adjust the loan’s tenor or the monthly installment based on your business’s cash flows.

One downside of these loans is that the interest rate on them is usually on the higher side, i.e. 40-70% per annum based on your company’s profile and lender’s risk assessment. This interest rate is significantly higher than what a commercial bank will charge. Still, you are getting an assured loan here without any restrictions and even if your credit score is substandard.

Venture Capital & Private Equity Investors

Venture Capital & Private Equity Investors

This mode of financing is also growing at an unprecedented pace in the UK, especially in the technology start-ups space. VC/PE investors are pumping millions and billions of pounds in promising business ideas for them to continue their R&D efforts and diversify their product portfolio.

The investors, in return, take equity in the start-up company and sit on its board for strategic decision making and future direction setting.

The best part about this funding route is that the company raises as much capital as it wants from the investor without giving any security. You have to compromise a little with the ownership of the company and in return, get the colossal amount of money to expand their business and make it big.

To get noticed by these Angel investors, the company needs to have a solid business idea, an ideal business model, and a vision for the future. The flipside to this mode of funding is that the external investor on your board and you may have a conflict of interest, because of which your business will have to suffer.

Thus, it is your responsibility as the start-up owner to choose that investor whose goals and vision for your business align with yours. Description: This blog was written for start-up founders and owners of SMEs to increase their awareness about the funding options available to them to raise capital.

10 Tips to Bet/Gamble safely for success

  1. DO NOT bet when you are drunk.
  2. Steer clear when you are angry
  3. Money Management
  4. DO NOT use a credit card for gambling/betting
  5. Go home after losses, don’t chase your losses
  6. Avoid Revenge Betting
  7. DO NOT bet or gamble to escape boredom
  8. DO NOT think of gambling as a means to make money
  9. Setting a Time Limit
  10. Understanding the need to STOP

DO NOT bet when you are drunk

I personally met a doctor who suggested that we get loads of false confidence once we are drunk. We all know how drunk driving can cause accidents when we miscalculate the distance. Our brain cannot function in a normal way when our nervous system is under the influence of alcohol, needless to say this applies to betting too. Betting requires balanced mind and loads of common sense which becomes absent when we are tanked till the hilt. On top of this our risk appetite flies through the roof when we are drunk.

Safe and Secure Betting
Safe and Secure Betting

Steer CLEAR when you are ANGRY

Anger takes control of our impulses and renders our action in undesirable consequences. Imagine a player makes you mad and your temper starts to the the best of you. You make a bad move or poorly bluff the player in the next hand just because your tolerance level for losing is way below the ground, you may end up losing huge amounts of money. Losing this additional money makes you even more mad, and you start taking unnecessary decisions and the cycle continues and before you know it, you have burnt through all the money you had on the table and all the money you had in your wallet just because of you not being able to stay calm during the game. All that said, I would like to mention a safe online casino site by the name NetBet Casino. Its safe, secure and I have good time there.

Money Management

The most important decision you have to make BEFORE getting into gambling is that the money you’re about to use is meant for recreational purposes only. Never play with money meant for mortgage, bills etc.

Once you have decided that you have appreciably more amount of money than the money needed to cover your basic lifestyle needs, you also need to understand the importance of money WHILE gambling. Never bet more money than the amount you can AFFORD to lose. Consider having $1,000 to lose, make sure to bet the money in small amounts. Maybe not more than $100 in every go. Nothing is more worse than being in debt so having a winning goal and losing limit is a must and both limits are to be respected equally.

Play Safe
Play Safe

DO NOT use a credit card for Gambling or Betting

While this can be a very tempting approach to Gambling, we need to understand why this is not supposed to be the most sensible one.

Sometimes the easy access to borrowed funds prevents the gambler from seeing the amount of money they may have already spent and they may end up spending money way above their budget.

Go HOME after a loss, don’t chase your losses

Usually a person, when loses a huge amount of money, tends to lose the sane state of mind and ends up trying to win all the money back in one go by using up necessary funds which weren’t meant to be used in the first place. This causes the person to fall behind on their rents and bills. Hence the safest ‘bet’ after betting the money and losing is to go to the casino host, withdraw any amount of money you are left with and GO HOME. This does not mean you’ve completely lost your confidence, but it is the write thing to do. This will avoid you from spending the ‘necessary money’ and will keep you from spending excess amount of money even in future when you decide to gamble.

Safety First
Safety First

Avoid Revenge Betting

While ‘Revenge Betting’ in itself sounds intimidating, it sure does have a lot of miserable outcomes. For instance, it is often not planned out properly, compared to the bet you lost, hence it can be of no good use. Usually the revenge bet is a larger bet than the first one because in the mind of a gambler, is this thought of winning all the money they lost in the previous bet, all in one go, which again if unplanned can go in the completely opposite direction.

Ask Yourself, what caused you to make a ‘Revenge Bet’. A good way to gamble is to always assume your bet to be the losing one. This way if you do lose, you will be in the right mindset to make another well planned bet.

DO NOT bet or gamble to escape boredom

Boredom can lead to a lot of wrong decisions, as it is rightly said that, ‘The opposite of happiness is not sadness, it is boredom.’. Gambling either isn’t something to be done in order to get rid of boredom, as it can lead to adverse personal and social consequences. To avoid being a victim to this urge, the person should plan ahead in time to avoid boredom. Getting involved in something different or creative is also a way to trick your brain into resisting the urge to gamble.

Safe Gambling
Safe Gambling

DO NOT think of gambling as a means to make money.

Understand the fact that, the gambling centers are supposed to be making money, it is not meant to work the other way around, hence quite a lot of times it is suggested not to gamble if you’re low on a budget. Gambling has always meant to be a recreational activity. Mostly the people who have used gambling as a means to earn money have been lead into major debts that they haven’t been able to repay almost their whole life. The other day, I was lucky enough to make some money from sports betting site called NetBet It was safe and I had my share of fun.

Setting a Time Limit

People usually get so involved in the highs and lows of gambling they tend to lose track of time. This leads to excessive spending of money and sometimes the ‘urge’ to win back the money that was lost previously which further leads to more problems. Setting a Time Limit can prove to be very important. If you have an expenditure limit on top of a Time Limit, you can never be harmed by the ill effects of gambling. According to a research, it shows the people who tend to spend more than the usual amount of time on gambling tend to lose more than win.

Understanding the need to STOP

Sometimes people forget that while gambling can be full of highs and lows, it is important to know when to stop. Even though you might be winning or you might be losing, having a spending limit always goes a long way.