Category: Loans

Tips to Get a Business Loan

Posted onAuthorZaiden Bryan

Getting a business loan is not an easy task. However, that does not mean you cannot get the capital you require to take your business to another level. Therefore, you need to have everything the lender requires to increase your chances of success. You can speed up the process and make the application go smoothly.

Prepare Your Documents

In the business world, transparency into your financial state is a must. You can make the application process more seamless if you keep your financial, tax, and accounting records accurate and up-to-date. Ensure your business has a system that keeps everything organized. If you do not have an accountant, you should hire one.

Maintain Good Credit

As far as keeping track of your important documents, ensure you pay the bills on time. You ought to meet your credit criteria, so it is vital to have good credit. Make sure you avoid bankruptcies, foreclosures, late payments, and charge-offs. Although banks have varying credit requirements, good credit ought to be part of the process.

Type of Loan You Need

It is imperative to understand the type of loan you need. For instance, there is no need to apply for a highly scrutinized loan when you only need a small loan, as this will delay the process. The approval process depends on the type of loan you apply. Some loans require a lot of documentation. If you apply for cash advance or line of credit, the documents and requirements are less stringent.

Demonstrate Adequate Cash Flow

If you already have a running business, banks need you to demonstrate that you have the adequate cash flow to meet your monthly loan repayments. They do the analysis by looking at the existing debt and tax returns. On the other hand, if you are starting a business, you ought to show detailed revenue and profit projections. Therefore, you should have a financial plan that illustrates how you will meet your loan repayments.

Understand Banks are Different

You should note that there are advantages and disadvantages that come along with any lending institution you consider. For instance, large banks are preoccupied with bigger clients as large means more profits. Although they may be ready to finance your business, you could get more attention and favorable terms with a smaller bank. Therefore, you should choose your bank wisely.…

The Four Good Reasons Why You Need a Loan

Posted onAuthorZaiden Bryan

Personal loans are borrowed money that can be used for large purchases, alleviate financial hardships, or even just supplement for an expensive occurrence. These loans are paid back in monthly installments over the course of typically two to six years, but it can take longer depending on your circumstances and how diligent you are with making payments. Although it may seem frivolous to take out a personal loan for, well, personal reasons, it can be hugely beneficial in certain instances and when used and paid back correctly.

Debt Consolidation

Debt consolidation is one of the most common rationales given for taking out a personal loan. Imagine carrying multiple loans or outstanding credit cards that all have varying interest rates and balances due. That’s a recipe for financial trouble, and it’s also where personal loans can step in to help.

When you apply for a loan and use it for debt consolidation, you’re combining all of those outstanding balances into one monthly payment. This grouping of debt makes it easier to work out a timeframe to pay off your balances without getting overwhelmed.

One of the best advantages of using a personal loan to pay off your credit cards is the lower interest rates. With lower rates, you can reduce the amount of interest you pay and the amount of time it takes to pay off the debt. Consolidation allows you to pay off credit cards in finite terms with a clear end date in sight.

Financial Backups During Hardships

If you’re facing financial hardships, you may be tempted to take out a payday loan to help you get by in the interim. However, payday loans are often predatory and can leave you much worse off than before. Therefore, before pulling the trigger on a deal with a payday lender, consider a personal loan instead.
Though payday loans may be easy to get, they carry extreme risks if you can’t pay back the amount owed in the time agreed upon. Some payday lenders charge interest rates over 400%. Personal loans like joustoluotot, for example, on the other hand, are typically more straightforward and incur much lower APR rates.

Financing House Remodeling

A personal loan can be a great option to pay for home remodeling, according to Kristin Shuff, senior vice president of marketing at LightStream, an online lending division of SunTrust Bank.
Whether you want to put on a new roof, install solar panels, remodel your kitchen or add a swimming pool, hot tub, landscaping or hardscaping, if you don’t currently have the cash on hand, a personal loan can be a big help when it comes to home improvements.
Furthermore, a personal loan is a good fit for people who don’t have equity in their home or don’t want to get a home equity line of credit or HELOC, Shuff says.

Emergencies

Some people forget to talk about funeral expenses when discussing the main reasons for personal loans. Though it may be an area that is uncomfortable to consider, personal loans can be a helpful resource in the event of a family member’s death. In short, funerals are expensive. Between the burial plot, casket, funeral home services, and other factors, costs can quickly add up to thousands of dollars.

Common medical treatments that may require the use of a personal loan include dental work, cosmetic surgery, fertility treatments and other procedures that can cost $5,000 or more. Ancillary expenses like medical travel, parking, medications and aftercare also can be effectively financed by a personal loan.…

Facts about Payday Loans

Posted onAuthorZaiden BryanLeave a comment

Payday loans are short term loans designed for employed persons. These loans prove to be attractive to most borrowers due to relaxed laws on borrowing compared to conventional loans.

Have you ever been in a financial mess that the only option was a payday loan? Think of the application process — quite fast, the same as receiving the money. The main hurdle comes in the interest rates and the repayment period. Since the loans have less stringent rules, the interest rate is high. You will also attract penalties if you fail to repay in time.

Let’s unveil some facts about payday loans.

The Perpetual Cycle

loan approved

Payday loans can be addictive. Every time you feel you need some little cash, you have the option of applying for a payday loan to repay in your next paycheck. The fact that they are easily available becomes a trap for most borrowers. Additionally, you can repay the loan and reapply on the same day.

If you don’t have the money to repay the payday loan, you can also opt for a roll-over of the loan to the next paycheck after paying the interest for that month. Due to these features, most people never get out of the trap of ever borrowing.

Short Repayment Period

One main disadvantage of a payday loan is that they are only available for a short term; mostly one month. Interestingly the interest may be charged per day, weekly or biweekly.

The short repayment period and the high interest charged on these loans lead to many individuals defaulting on these loans and attracting penalties. If not most people will roll-over the loan to the next paycheck after paying the interest for the current month.

If you have a poor credit score and you can’t access bank loan, then getting out of debt or improving your credit score becomes a dream.

Hidden Information

advance cash

Though payday loans have a few advantages, most lenders hardly take their clients through the disadvantages of these loans; they only major on the benefits of securing payday loans. They’ll never disclose options that can make the customer opt for other types of loans. When you default on the loan, it’s when you discover you were not sufficiently apprised about the loan.

Before applying for a payday loan, make sure you know what you’re getting into. If you have alternatives such as the credit union, advance cash on your credit card or a bank loan go for such options; they attract fewer fees through the rules governing the loans are stricter.

Payday loans are easy alternatives for many individuals, especially if they have a poor credit score or they have over-borrowed. But before opting for a payday loan, get adequate information about the loan beside the benefits.…