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Business Loans (Volume 3)

BUSINESS LOANS (VOLUME 3)

 

 

By

Word Chapter

 

 

 

Shakespir EDITION

 

 

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PUBLISHED BY:

Word Chapter on Shakespir

 

 

Business Loans (Volume 3)

Copyright © 2016 by Word Chapter

 

 

 

COPYRIGHT NOTICE

 

All rights reserved. No part of this book may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, without the prior written permission of the publisher.

 

DISCLAIMER

 

All the material contained in this book is provided for educational and informational purposes only. No responsibility can be taken for any results or outcomes resulting from the use of this material.

 

While every attempt has been made to provide information that is both accurate and effective, the author does not assume any responsibility for the accuracy or use/misuse of this information.

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Eligibility to Apply for Lease Rental Discounting Loan

Read more Business Loans articles: http://j.mp/29NuPE5

Is it that you are earning a good amount of money from the rental of your commercial or residential property? Even if you have a leased property, you may apply for a Lease rental discounting loan from an accredited lending institution under the pledge that your future rental earnings from your property will be authorized to them as loan payment. You may apply for LRD loan either to a bank or any reputed financial institution that has the provision in easy term.

The primary requirements to be eligible for the LRD loan

The lending institution must set a number of primary requirements known as the eligibility factor for an applicant of LRD loan. They check the following issues:

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Profile of the lessee.

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p<>{color:#000;}. Credit worthiness of the lessee in terms of rent paying capacity.

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p<>{color:#000;}. Location of the property with regards to factors such as growth prospects, presence of other industries, civic amenities etc.

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p<>{color:#000;}. One of the most important points that a bank keeps in mind is that in no way it should be facilitating the conversion of black money into white through LRD.

The documents required to submit application

Some documents may be required from the client by the firm offering the lease rental discounting loan. Such documents are as follows:

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Lease agreement

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p<>{color:#000;}. Property title document

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p<>{color:#000;}. Bank statement for the last six months

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p<>{color:#000;}. 2-years financial statement of your business which should contain Profit and Loss statement, Income and Expenditure, income tax and balance sheet.

Lease rental discounting allows you to borrow money against your property

One of the benefits of Lease Rental Discounting (LRD) is that you can use your property to obtain loans. There are some Lease Rental Discounts that offer as much as sixty five percent of the market value of your property as loan. This is a classic example of using what you have to get what you want.

Lease rental discounting loan is for those who seek long term loan

Though some banks would be ready to give you a loan facility, the duration of the loan is usually short. However, Lease Rental Discount can offer you loans that can last up to twelve years or more. The long stretch of time will allow you to efficiently use the money for your business.

The types of business you can apply LRD loan for

People often erroneously think that lease rental discounting is made for some types of business. That is not true. The product has been structured to finance sole proprietorship (one-man business), partnership firms, private limited and public limited companies and career professionals (for example doctors, business consultants, chartered accountants and so on).

This funding is good for those who get fixed rent for their property

The proceeds from this loan can be used to cater for personal and business needs of the individual. The loan is calculated by the lending institution or bank as the discounted rent potential of the commercial property or residential building.

LRD is an agreement between the lessee, leaser and lending institution

This is an agreement between the three parties. The leaser would stop taking the rent and the leaser is expected to now pay the rent to the lending institution through an escrow account. The maximum time of this agreement is usually capped at fifteen years.

Make sure that the lending institution is reputed

It is necessary to survey your lender and be sure that they have built a reputation over time. The success of the agreement to a large extent will depend on how sincere your lending institution is. The market is currently flooded with lenders claiming to offer the best deals but not all of them can be trusted. This is why in is very important to conduct a good research before choosing your financial institution or lender.

Article highlights

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The growth of any business is accompanied by need for more money.

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p<>{color:#000;}. Lease rental discounting loan is the most popular form of loan.

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p<>{color:#000;}. Both business and career professionals can seek lease rental discount.

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p<>{color:#000;}. The procedure for getting a LRD loan is very strenuous and it takes long time.

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p<>{color:#000;}. Lease rental discounting allows you to use your rent to seek for loans.

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p<>{color:#000;}. A number of documents are required to attach with your application for LRD loan.

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p<>{color:#000;}. These loans are usually given to be repaid after a brief moment.

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p<>{color:#000;}. Lease rental discounting allows more loan time.

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p<>{color:#000;}. Lease rental discounting loan covers a wide array of business.

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p<>{color:#000;}. A reputable financial institution is desirable to sanction the loan successfully.

Read more Business Loans articles: http://j.mp/29NuPE5

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Possible Risks of Taking an Online Loan on your Small Business

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Small businesses have influx of cash as a perennial problem because of their constant need to grow or expand, to acquire new equipment. It would help them keep up with the growing competition in their sector or settling the domestic debts and sometimes taking care of the welfare of their staff.

Getting loan from bank is challenging

One traditional institution, everyone is tempted to run to when they are cash strapped, is the commercial banks. They know this, and as the number of people seeking for loans continues to grow, so will their terms continue to climb up to limit the amount of money they give out.

Small businesses may not qualify for bank loans for many reasons

Before the any commercial bank would agree to give out their money, they would often require a guarantee from you that they would get their money back. This guarantee is in the form of collateral. Many small business owners rarely have properties that can pass as collateral for the kind of money they need. In recent times, banks may require the financial records of the business as collateral. With huge financial turnover, one can get loans without collateral. Sadly, small businesses may not be able to pass this scale too.

Online lenders cut down the processing time

With hands tied and desperation looming, small businesses are left with no other option than to grab loans from whatever source possible. Online lenders are serving as messiahs in this regard because they not only agree to offer loans to both small and big businesses but also they cut down the processing time meaning that getting a loan can be fast-tracked.

The terms given by online lenders are often ignored in a hurry

When money is hovering around the faces of small business owners, they quickly ignore to look at the terms. A well groomed banking executive, Jack Elaad argued that though the online lenders cut down the lending time, the terms of their agreement is nothing to write home about.

A closer look at online lender’s terms will shock you

Behind the rosy offer is a thorn which you should weigh carefully before agreeing to the terms of online lenders. Revelations have shown that online lenders offer only short term loans repayment plan and their interest rates are considerably higher than those of traditional banks . Taking a loan with a wrong motive and short repayment plan is one of the reasons about 80% of small businesses would fail in the first eighteen months.

Many online lenders are in partnership with traditional banks

For the singular reason that this is a partnership, online lenders have to play to the tune of the traditional banks, more like an old wine in a new bottle. They make you believe they are in charge while in the real sense, they are fore-runners.

The cut in lending will affect commercial banks adversely

Since many people who are unaware of these hidden terms flock to online lenders, commercial banks would soon begin to lose their customers to these new strategists. Considering that lending is one of the key ways commercial banks get revenue, their income could suffer a plunge.

Article highlights

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Small business always faces the challenge of funding.

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p<>{color:#000;}. Online lenders are offering a faster means to access loans.

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p<>{color:#000;}. Many online lenders are in partnership with commercial banks.

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p<>{color:#000;}. The main source of income of commercial banks is through lending.

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p<>{color:#000;}. Online lenders usually have higher interest rates.

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p<>{color:#000;}. The repayment plan for online lenders is short term which may not favor small businesses.

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p<>{color:#000;}. It is tedious to get loans from commercial banks.

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p<>{color:#000;}. Not all small businesses would have the collateral for bank loan.

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p<>{color:#000;}. Nowadays some banks accept financial statements as guarantee for repayment.

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p<>{color:#000;}. Oftentimes, small business owners would desperately take money from any source without looking at the terms.

Read more Business Loans articles: http://j.mp/29NuPE5

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Things to Consider before Choosing a Commercial Finance Broker

Read more Business Loans articles: http://j.mp/29NuPE5

Commercial finance brokers are life savers. Irrespective of the financial crunch, some commercial finance brokers are capable of squeezing finance into the pockets of the firms they represent. A financial broker with a good knowledge of the financial system and market trends is vital in selecting a financial broker.

Choose a broker with a verifiable record

Do not be fooled by websites that claim to be commercial finance brokers. Before choosing a commercial finance broker, be sure that you have a track record of their past success story. Some brokers will list a number of companies they have helped but in the real sense, they have never been involved with them.

The financial market is largely unregulated

It is unknown to many businessmen that the financial market is largely unregulated. Though there are financial stock brokers that would offer excellent services, the safety of your funds with them cannot be guaranteed. Choose a stock broker that is regulated by the Financial Conduct Authority (FCA).  Brokers under regulation by FCA are a safer card to play.

Stick with professionals in business finance

There are several fields of the finance just as the doctors have different specialties. Some commercial stock brokers would claim to be professionals in business finance even if their fields are residential mortgages, life insurance or other forms of finance.

A professional in business finance is at a position to help your business better

A professional in business finance is bound to have a better knowledge of the market trends which means that they are in a better position not only to help your company financially but also to offer reasonable advice that will financially help your organization.

Your stockbroker should provide you all out service  

The versatility of your stock broker has a lot to do with how better you would adapt to the system. Normally, there are various ways you can choose to finance your business but some stock brokers would stick to one product. They may serve you extremely well but they are invariably putting you at a disadvantage because if you happen to find yourself entangled with another broker that offers another product, it may become grossly uncomfortable.

A broker’s attachment to a lender can be costly

Some financial institutions are too attached to a lender. This may help them get easy access to finance when it matters the most but the drawback to this marriage is that they would be reluctant to refer you to lenders that come up with better offers.

Professional indemnity insurance will help you get your money if something goes wrong

Supposing something goes wrong in your transaction with a financial broker, how do you get your money back? If your commercial financial broker does not have professional indemnity insurance, it will even be impossible to sue them when something goes wrong. If a commercial financial broker has professional indemnity insurance, it is a way of saying that he can be trusted because the insurance company may have looked into his character before agreeing to insure him.

Article highlights

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Commercial finance brokers can help their firms secure loans even in financial crunch.

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p<>{color:#000;}. Verify the legitimacy of your broker before subscribing.

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p<>{color:#000;}. Choose a financial broker that is an expert in business finance.

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p<>{color:#000;}. If a broker is too attached to a lender, it will make them not want to seek for better offers.

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p<>{color:#000;}. There are different products a finance broker can offer to finance your business.

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p<>{color:#000;}. Regulated financial brokers are safer to deal with.

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p<>{color:#000;}. Many of the transactions in the financial world are unregulated.

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p<>{color:#000;}. When one is too used to a financial package, a change may be awkward.

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p<>{color:#000;}. Fraudulent commercial finance brokers use rich website to sway their victims.

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p<>{color:#000;}. It is important for your stock broker to have professional indemnity insurance.

Read more Business Loans articles: http://j.mp/29NuPE5

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The Benefits of Bridge Loan When You Need Loan Urgently

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Short term loans are often the most difficult to obtain. Banks will be more delighted to give you long term loans than short term because of the interest they would enjoy over time. If you are in need of a short term loan and it seems that banks do not want to see your face, bridge loans is an interim short term financing that you can run to till you get the needed long term loan.

Opportunities can necessitate you to take up loans

Let us say, there was an auction for a very important property which, you are optimistic, will fetch you good money in coming years, but you discover that you do not have enough money at present to pay for it. Will you forfeit the property? Definitely not! At such points, you will need a short term loan to complete the payment.

Reasons for short term loans are numerous

There are many other reasons that can necessitate you taking up loans which include immediate payment of taxes, securing a property, a sudden cash crisis in your business and so on. There are also personal pressing problems. For example, there is an emergency when someone has been taken to the hospital and certain deposits need to be made. Short term loans come handy in settling immediate problems.

Traditional loans take a long time to be processed

Commercial banks have a long list of documents that must be presented before the processing of a loan can commence.  Some of these documents may not be readily available to you and in the process of trying to acquire them the deadline may catch up with you.

Bridge loans are ready in 48 hours

Commercial banks usually take a lot of documentation and signings before the money can be released to you. However, bridge loans are processed speedily and you can be sure to get your loan in 48 hours. There are times when you can get the loan that same day. At this speed, you can be certain to beat any deadline.

It forms a bridge between buying and selling properties

When you want to buy a new property by selling an old one, it may happen that the money realized from selling the old property will not be enough to secure the new one. Bridge loans, at such times, will cover the lapse in finance and guarantee you the new property.

The temptation of unwillingness to pay back is removed

When you hold money for a long time, there is the temptation that you may begin to feel the money belongs to you and forget to may plays for repayment. Bridge loan takes away this temptation because from the onset, you are well informed that the loan is interim which will make you struggle to pay back on time.

Your asset can serve as collateral

In bridge loans, you do not really need all the long paper works. Any asset that you have ranging from jewelries, house, shop, flat, land and so on can serve as collateral for obtaining bridge loans. You can also stake multiple assets as the case may be.

Article highlights

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Commercial banks favor long term loans more than short term ones.

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p<>{color:#000;}. Short term loans keep the zeal to pay back burning.

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p<>{color:#000;}. The processing time for traditional loans is unbearable.

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p<>{color:#000;}. Bridge loans can take as short as a day to be processed.

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p<>{color:#000;}. Assets can be used to secure bridge loans.

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p<>{color:#000;}. Bridge loans are interim loans to fill the vacuum while waiting of a long term loan.

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p<>{color:#000;}. Emergencies further highlight the need for short term loans.

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p<>{color:#000;}. Bridge loans can be used to pay for auctions and secure properties.

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p<>{color:#000;}. There are times when businesses are cash strapped and need immediate funds.

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p<>{color:#000;}. It is easier to pay back long term loans than short term.

Read more Business Loans articles: http://j.mp/29NuPE5

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The Details You Need to Submit to Get the Intended Loan

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Obtaining a loan from commercial banks is a tiring process. You would need to fill tons and tons of papers and present a long list of documents. When you want to apply for a loan, it is vital to be very thorough in your details. Prepare the best application possible and give it your best choice like it was the only source of funding for your business.

Leaving out vital details is one mistake loan applicants make

Some loan applicants go through the process in a shabby manner and when they face multiple rejections, they conclude that the banks are being unnecessarily mean. Industry specific details are one thing they often fail to include in their application. Industry specific details help the lender have an idea of what your industry or business is all about and can be enough to convince them to give you the loan.

Make your executive summary concise but rich in details

The process of loan acquisition often begins with an executive summary. An executive summary is like a cover letter where you introduce yourself and your business. Let the document show details of how the loan will be utilized, how it would help your organization and payback plans.

Small business profile should show your business background

Business background here refers to the history of the business. A proper business profile should provide answer to the following questions: how long has the business been in existence? How much sales do you make a year?  What is your employment capacity? Do you have competitors? What is your customer base? What are the future plans for your business?

The applicant must include the intended plan of using the loans  

It is unlikely that a bank would want to give you a loan if you do not give them sufficient details of how you intend to put their loan in use. The truth is that the safer your investment is, the better they can sleep with their eyes closed knowing that you would pay back. No one in his normal sense wants to throw away money into the bush.

Your business experience can work for you

Your experience running a business has a section where you have to tell the lender the amount of experience you have running a business so that they can be sure that you can properly manage their money. Like a well written curriculum vitae, list out the experience you have running a business and it may fetch you that loan.

You should carefully select your collateral

The collateral section allows you to pen down all the assets you want the bank to hold in exchange for your loan, just in case you default in paying back, they can sell the asset to get back their money. Therefore, it is important to choose your collateral carefully.

You must have a good business and financial record

Your financial statement and that of your business are likely to be scrutinized. Make sure this information is available and up to date. If you do not have a strong financial statement, the bank would doubt your integrity.

Article highlights

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The process for obtaining a loan is a long one.

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p<>{color:#000;}. Loan applicants make the mistake of leaving out industry specific detail in their application.

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p<>{color:#000;}. Banks would want to see how long you have been managing the business.

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p<>{color:#000;}. Your executive summary should be brief but well detailed.

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p<>{color:#000;}. A bad financial statement will cast a doubt on your loan application.

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p<>{color:#000;}. Be careful what you choose as your collateral because it would be collected if you default.

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p<>{color:#000;}. Repayment should be at the back of your mind when seeking for a loan.

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p<>{color:#000;}. Banks will ask for a detail of how you intend to utilize the loan.

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p<>{color:#000;}. Small business would need to provide the history of the business.

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p<>{color:#000;}. Industry specific details can guarantee you a loan.

Read more Business Loans articles: http://j.mp/29NuPE5

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Eligibility for Loan against Property in India

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Most of the banks or lending institutions in India sanction loans upon the goodwill or reputation, assets or any other condition that suits their policy. If you have a property at your disposal, it is a great asset for you in dire need of cash for business or any other purpose. There are different types of loan structures you can think of to meet your need and the most remarkable of them is loan against property.

Loan against property is very flexible

Your property here, be it a residential or commercial, will serve as your collateral for qualifying for a loan. Loan against property gives the financial institution a kind of confidence that you will pay back which will make them not chase you around like a common criminal that they normally do.

There are features of interest in loan against property

When you take loan against your property, there are various features of interest that come with your loan and one of them is a low interest rate. You will also be getting a doorstep service and loan for the purchase of a commercial property.

Eligibility for loan against property is broad

Those who are eligible to take loan against property are broad and the first category is individuals on a salary structure or payroll. The individual should be working with the Government or a company with a high reputation. Also, the individual should be at least 24 years of age as at the time of the commencement of the loan.

Professionals can apply for loan against property

Those regarded as professionals and are eligible to apply for loan against property include doctors, engineers, architects, dentists, chartered accountants, company secretaries and management consultants. The applicant needs to be at least 24 years of age as of the time the application is made and less than or up to sixty five years of age when the loan is matured.

Individuals who are self-employed can apply

Any individual who is self-employed but fills Income Tax returns regularly can apply. The age structure that the individual would be required to attain is the same with the aforementioned categories above.

Using a loan against property gives you loyalty points

There is a point that can be earned when you use loan against property and this point ranges from 750 to 2500 depending on the size of your loan. These points open you up to be rewarded in the customer loyalty program of the financial institution.

Take a loan only when it is absolutely necessary

A loan can be used to finance any of our need, and the idea of loan against property is very tempting because of its simplicity. However, it is advised that loan should be taken only when it is very necessary. A loan acquired without a plan will soon become a steaming pot of disaster.

Make plans to pay back every loan

Before attempting to take any loan, always make a plan to pay back in the shortest possible time and be strict with this time. The best time to acquire loan is when you have to put it into another investment that would yield you more money. Loans acquired for fulfilling leisure purposes are usually the most difficult to pay back.

Article highlights

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Your property can serve as collateral for your intended loan.

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p<>{color:#000;}. Financial institutions are more comfortable with loan against property because they have something to hold on.

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p<>{color:#000;}. Loans against property have interesting interest rate.

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p<>{color:#000;}. Professionals cutting across many fields are eligible for loan against property.

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p<>{color:#000;}. The minimum age to apply for a loan against property is 24 years.

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p<>{color:#000;}. Applicant would need to be up to 65 years or less at the time of loan maturation.

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p<>{color:#000;}. Using loan against property can earn you reward points.

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p<>{color:#000;}. Loans should only be taken when it is almost impossible to avoid going for it.

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p<>{color:#000;}. Self-employed individuals that are filling Income Tax returns are also eligible for loan against property.

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p<>{color:#000;}. It is better to make a plan before applying for a loan against property.

Read more Business Loans articles: http://j.mp/29NuPE5

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Choosing the Best Way to Finance Your Company

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Starting a business is a challenging mission. Depending on the type of business you have in mind, the financial implication may be too much for your pocket – and most small business start-ups and running meet this brick wall almost every day. When this happens, the first thought that comes to mind is taking a loan.

Have a plan to repay every loan

Anyone that offers a loan to a small business or a start-up company may seem like a messiah. In the midst of the euphoria, they may be tempted to take more than required or spend it without a plan to pay back and thus, they run into troubles bigger than the initial one. If a financial institution has ever been on your neck to repay a loan, you will understand this statement better.

Waiting for government grant may not work either

Government grant is usually limited to professional industries and though rarely meant for small businesses but when they do come, the competition is usually stiff. Waiting for grant as a source of finance is not always realistic.

Loan should not always be the first resort

If you have ever stop to consider the various other means by which money can be generated without much legal implications, you will be quick to conclude that loan should be the last kind of money you would ever want to take.

Your savings are a good starting point

Before looking left and right for money, look inward. Your savings can be the best source of your business finance and since it is your savings, you owe no one any apology if the business should ever fail. Beyond your savings – if it is not enough – you can ask your family and friends. They will show more empathy if by any reason you are unable to pay back more than any financial institution.

Customers can finance your business

If you have a unique or outstanding service, customers may be willing to make payments in advance. This payment you can use to cater for their services instead of the money coming from your pocket. Suppliers can also give you an invoice on supplies to be paid at a later date. This is more like an interest free loan and a very good source of financing your company.

Crowdfunding is a new form of getting fund

Crowdfunding may seem crazy but it has worked for several people and is still working. In Crowdfunding, you display what you want to do online and people who share in your vision can donate to the course. In the end, the money is yours. It is more like pre-selling your product and you have to bring it out in the clearest of ways if you must make a success.

You can lease out what you have

If you have equipment or a property that can be of worth, you can lease them out. The rent you will be paid would go a long way in helping to finance your business. On the other hand, you can decide to sell off your belongings which you do not need or use frequently to raise funds for your business.

Article highlights

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Loan is the first source of funding many business starters consider.

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p<>{color:#000;}. The troubles that come with loans are numerous and not always worth the trouble.

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p<>{color:#000;}. Make a good plan to repay every loan and early too.

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p<>{color:#000;}. A government grant is not something to wait upon to start your business.

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p<>{color:#000;}. More new crowdfunding can help you start or fund your company.

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p<>{color:#000;}. Family and friends are better sources of loans.

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p<>{color:#000;}. Family and friends will be more considerate if your business should fail.

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p<>{color:#000;}. Customers who pay ahead are indirectly funding your business.

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p<>{color:#000;}. Supplies from companies to be paid at a later date are like an interest free loan.

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p<>{color:#000;}. Selling the things you are no longer using can help you raise money.

Read more Business Loans articles: http://j.mp/29NuPE5

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An Easy Solution to Debt Financing in Canada

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The choice of your debt financing can strengthen your business or hinder it from growing to the enviable height you have envisaged it. Before going for any loan product, it is important to first of all understand the financial needs of your business. There is a formula to every successful loan. This article will help you to find out how this works and how it relates to your business.

Debt can help you grow your business

Debt doesn’t sound palatable to any business. In fact, the more the debt hanging on the neck of any business, the more the trouble they will have to deal with. That is not always the case. Loans can really boast your business potentials but you need to know which bank or which non-bank financial lenders that have the most attractive offer that would optimally benefit your business.

Loans should be your last option

Don’t be too hasty to take up loans. Before ever approaching a bank or other non-bank financial lending institutions, make sure you have exhausted all your available options. Try out you family and friends, business associates and even government grants for small businesses where available. Loan from a bank or non-bank financing firm should always be the last resort.

Asset is a key criterion to obtaining loan

Lenders are risk takers because they cannot always guarantee that every business owner would be in the best behavior and payback the money they have borrowed. This is the one reason why they would need you to have some assets or cash flow to boost their confidence. Assets that can be tied to lending include real estate, inventory, receivables and equipment.

There are four factors that are tied to a loan

Like every transaction, loans have their terms and conditions and unless you agree to them, the business cannot hold. An interest rate is fixed, that is the way the lender makes profit from the money they have given out. Your collateral would be properly scrutinized, there is an amount you pay monthly and there is a fixed term of agreement. Study all of these carefully to see how beneficial they are to your business before jumping in.

There are various forms of debt financing

Different forms of debt financing exist and each of them has their unique requirement. Among the different debt financing products are inventory line of credit, A/R financing, bank and non-bank revolving credit line, refundable tax credit financing and the famous invoice discounting and factoring.

A lot of options are available for debt financing

The good news for those that are willing to take the direction of debt financing is that there are lots of options to choose from. The Canadian bank is one of the leading lenders for debt financing. Other alternatives are asset based lenders, bridge loan lenders, equipment lessors and online lenders. No matter how small your business may seem, there are alternative financing that would be willing to lend you money and many of them don’t require too long procedures.

Let a debt financing professional guide your decision

Earlier you have been told how taking a bad loan can be detrimental to your business. It is very important therefore to consult a professional debt financing advisor before taking a loan. Let them analyze your business to know which type of loan best suits your business. Working with a professional debt financing advisor will also help you to avoid the common fraudulent lenders that have hidden charges and unpronounced interest rates.

Article highlights

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Small businesses have a lot of financing options to choose from.

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p<>{color:#000;}. Different financing options have different requirements.

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p<>{color:#000;}. The success of a business is often measured by how debt free they are.

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p<>{color:#000;}. The interest rate is the major factor to be considered before taking loans.

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p<>{color:#000;}. Asset is a key consideration by lenders before giving loans.

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p<>{color:#000;}. It is good to understand the various debt financing options.

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p<>{color:#000;}. A good financial advisor can help you make the best decision for your business.

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p<>{color:#000;}. Canadian banks are one of the major lenders.

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p<>{color:#000;}. Lenders make money in the form of interest.

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p<>{color:#000;}. Alternative lending sources are always faster.

Read more Business Loans articles: http://j.mp/29NuPE5

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Information on Lawsuit Loan Pre-Settlement Financial Funding

Read more Business Loans articles: http://j.mp/29NuPE5

Excessive monthly bills can be uncomfortable and sometimes difficult to handle. Sometimes, it is better to schedule these bills ahead of time so that you will not be put under undue pressure. Lawsuit loans are generally used for settlement of future expenses. A lawsuit loan is just the perfect form of financing if you have a pending lawsuit settlement.

Lawsuit loan will be available before a lawsuit is complete

Being entangled in a lawsuit does not stop every other aspect of your life from moving on; mortgage needs to be paid, children’s fees needs to be paid and every other miscellaneous expenses will go on. Your life will never be put on a pause just because you have a lawsuit and mind you,not every financing body will agree to give you loan at such instances. Lawsuit loans will present you help at such moments.

Lawsuit loan is comparable to borrowing money ahead

When you have filed a lawsuit and expecting a compensation for injuries from any of the following accidents, rail road, trucks and boating, cars, aviation, motorcycle, dog bites, burns, assault, accidental fall, bicycle, and medical malpractice and so on, you are eligible to take up lawsuit loan while waiting for the case to be completed.

Lawsuit loan is not absolute

Only a certain group of people can have access to lawsuit loans. Clearly, it is not for everyone. To be considered for lawsuit loans, the applicant must be in the process of getting their financial settlement from a pending lawsuit. The closer the lawsuit is to settlement, the more guaranteed you will be of obtaining a lawsuit loan.

Lawsuit funding agents can be found online

If you search online, you should be able to find establishments that specialize in covering litigation loan. They can be contacted either through calls or emails. The information you need should be available on their online page. A representative should be able to explain further about your pre-settlement loan needs.

There is a short screening before you can apply for loan

When you contact a lawsuit financing firm, the representative that would pick the call would put you through a short query. It is only when you would have supplied satisfactory answers to all their queries that they would be allowed to apply for lawsuit loan.

Have knowledge of the entire process

It is therefore important that you know as much as you can about the transaction, how long it takes to obtain litigation loans, how flexible the terms are and how long it would take before repayment. Having this knowledge in your palm would not cost you a thing because they are readily available online. Moreover, when approaching financial matters, no knowledge is a waste.

Forms can be submitted online

Depending on your convenience, you can walk into any of the lawsuit financing firm’s offices and pick up your form or you may decide to fill the form online and submit. You should receive an e-mail notification after which their representatives would do the rest of the needful.

The lawsuit loan firm would contact your attorney

The reason for contacting your attorney is to be familiar with the case and scrutiny of needed documents. If your application is a success, the representative of the lawsuit firm would contact you and your lawyer to hand over the necessary documents.

The money would be wired to you

The lawsuit firm would wire transfer the money to your bank account after signing the contract document. The standard fee for the processes is put at 3 percent, though this is determined individually.

Article highlights

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Lawsuit loans can help you plan your bills ahead of time.

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p<>{color:#000;}. Some lenders will not give you loan if you have a lawsuit.

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p<>{color:#000;}. Being involved in a lawsuit does not halt every other aspect of your life.

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p<>{color:#000;}. Lawsuit loan lenders can be contacted online or at their offices.

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p<>{color:#000;}. Those involved in any form of hazard would always seek for compensation.

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p<>{color:#000;}. If your chances of winning the lawsuit are high, loan can be easily given to you.

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p<>{color:#000;}. Lawsuit lenders will scrutinize your case file and speak to your lawyer.

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p<>{color:#000;}. It is good to have a good knowledge of how the process works.

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p<>{color:#000;}. The loan will be bank wired to your account.

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p<>{color:#000;}. Standard processing fee is three percent.

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What Hard Money Loans are and How They Work

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If there is one business that has the most variety of loans at their disposal, it is the real estate business. One of the most valuable forms of loan available to them is the hard money loan. The name of this loan is already suggestive of what it is used for. If you are still confused or hearing about it for the first time, the next paragraph would tell you all about it.

Hard money loan is used to refurbish properties

There are some properties that are worth gold but their value will only come out if they are refurbished. Hard money loans are used by investors to repair investment properties after they have bought them. When the money is not there to purchase a property, hard money loan can also be handy to make up the money.

Scope of Work for seeking hard money loan

Hard money loan lenders would only require the loan seeker to submit their Scope of Work worksheet. This worksheet should contain all the planned repairs the investor plans to undertake on the property. Hard money loan lenders use the worksheet as a guide to payment of the investor for the project. A repair that was not properly captured in the worksheet would not be refurbished.

Hard money loan requires less amount than traditional bank lending

The requirement for an investor seeking hard money loan is not as back breaking as that required by the traditional bank lending. Real estate lenders would on most cases demand for twenty percent of all projects. Also, there should be a certain amount of money you should have in the bank. Besides these, the monthly income of the investor can increase the confidence of the lender. But bear in mind that different lenders would have their different unique requirements.

Overestimation is encouraged among investors

Unless you are the one selling the repair kits and doing the repairs yourself, you can and will never get the exact cost because prices of services and other necessary materials may fluctuate during the time of the repair. Overestimation is encouraged among investors so that such fluctuations would not have any hard affect the project later on. Peradventure the initial estimate turns out to be perfect, and then the excess can be returned or kept as the investor pleases.

Lender will inspect property before disbursing fund

When the repair of the property reaches some extent, the investor can approach the lender for refund. The lender would then send out a team of inspectors to go and monitor the said project. If the work has been done according to the said guideline, then the lender will make the payment as stipulated in the Scope of Work document (the main reason why this document must contain all the work done). The entire process is what is referred to as a ‘Draw’.

Refinancing is the most important part of property repair

Hard money loans are short term loans and their interest rate can be considered high at fifteen percent. Hard money loan lenders know the amount of risk involved in what they are doing and that is why they would want to know what is in for them upfront. The risk is what propels them to set such a high interest.

High interest makes investors act fast

Because of the high interest rate, investors would need to either sell the property quickly or have it rented out so they can payback their debt or they find themselves in huge debt.

Article highlights

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Hard money loans have high interest rates.

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p<>{color:#000;}. This type of loan is used majorly for purchase and repair of properties.

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p<>{color:#000;}. High interest rate is responsible for the quick decisions of investors.

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p<>{color:#000;}. This is a short term loan.

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p<>{color:#000;}. Always have plans to pay back as quickly as you can.

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p<>{color:#000;}. Only expenditures contained in Scope of Work will be refinanced.

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p<>{color:#000;}. It is better for investors to overestimate than underestimate.

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p<>{color:#000;}. Excess money from estimate can be kept or returned by the investor.

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p<>{color:#000;}. Real estate lenders mostly demand for 20% of the project.

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p<>{color:#000;}. Some properties would worth ten times the value when refurbished.

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Cover image credit: https://www.flickr.com/photos/usdagov/13062789544/

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Business Loans (Volume 3)

From small to corporate business owners and/or managers may need business loans. In this modern age, it is getting hard to run business without any loan when a business starts growing. When a business is growing, it is hard to cover all financial needs with personal finance. There are many other situations when a business loan becomes necessary. This book will give you some insights about getting and managing business loans. Download and read this easy to read and understand book.

  • ISBN: 9781370583898
  • Author: Word Chapter
  • Published: 2016-09-08 19:20:16
  • Words: 7101
Business Loans (Volume 3) Business Loans (Volume 3)