Monthly Archives: July 2012

Secured Loan For The Self-Employed: Ready Money For The Entrepreneurial Mind

Self- employed people consist the majority of the workforce in UK. They control a vital part of the country’s economy. A self-employed person works for himself/herself. Not joining any organization as an employee, he or she doesn’t draw regular salaries. The trade or business they profess individually or by forming a small business derives the income of the self-employed people. Though, it gives an entrepreneurial gratification, and higher rate of returns than those having a salaried employment, but the payments are irregular and one often has to go without work for days or even months. The financial condition can deteriorate very fast, if a self-employed person with a shaky bank balance runs into rough weather. Secured loan for the self-employed can bail out such an aggrieved person.

Many situations can demand urgent financial inputs from self-employed persons. It could be some vital investment, or to meet some temporary cash flow crisis, to buy a car, or take that much needed vacation – it could be anything, which financially bothers the self-employed person. The most pressing problem is the urgent need of money. The major impediment, which the lenders feel while they consider lending to self-employed people is the lack of a regular income. Unlike salaried people, they do not get monthly paychecks. So, in many cases, their repayment capacity is very much subdued. The collateral clause satisfied by a secured loan for the self-employed, pacifies the average lender and he provides the loan despite a lack of regular income.

The collateral can be the house, the car, a property, the business premises or any home equity held by the self-employed person. Since the collateral is offered, the interest rates on secured loans for the self-employed are lower than the unsecured ones. Secured loans for the self-employed can provide a large sum to the borrower provided the lender is satisfied with the value of the collateral offered. A diverse spectrum of professionals like doctors, painters, writers, mechanics, florists, beauticians, hairdressers etc. take such loans. The profession of the self-employed is not given much importance while giving a secured loan for the self-employed as long as the collateral satisfies the lender. However, the credit history of such borrowers carries a lot of weight with the lenders. Any self-employed person who offers the sufficient collateral and has a good credit record to supplement his case can get a good loan offer within the minimum possible time. Whereas, a borrower with insufficient collateral and po

The drawback of secured loans for self-employed is that if the borrower is unable to meet the repayment schedule and persistently defaults on payments, he might loose his home or the collateral to the lender permanently. So, to mitigate the occurrence of such a tragedy, the borrower should go for the minimum possible loan amount and that too after considering his repayment capacity and doing a cash-flow analysis.

Many borrowers, who take a Secured loan for the self employed, when they find that their cash inflow is not sufficient enough to repay the installments and meet their daily expenses, go for a regular employment. This is not stated to discourage any self-employment, but just to underline the fact that the borrower should do everything to repay his loan properly, else the collateral may be repossessed. As true with all types of purchases, getting the best deal on any secured loan for the self-employed also comes after a consistent scouring of various offers. Just skimming the surface of offers, and reaching at a conclusion might spring up unpleasant surprises for the borrower at later stages. Taking a secured loan for self-employed, is vital to the financial recuperation for the borrower. The funds should be used efficiently and solely to fulfill the intent. Any wasteful meandering from the desired course will inevitab

Secured Holiday Loans: Especially for hassle- free holiday

Holiday-it means a break from our repetitive routine and getting chance to explore the world with joy and joviality. Holidaying is the ultimate one that rejuvenates and revives us from the mundane monotony. But without money, making holiday is merely an illusion. If you have fund, then it is ok. Otherwise, for holidaying you have to look for various options. Though credit card is a good alternative, but its high rate of interest sometimes baffles you. Then what else? You can also opt for Secured holiday loans facility.

Like other secured loans, you can avail secured holiday loans against any of your property, like your home, car etc, which will be used as collateral. With secured holiday loans, you can borrow amount from 20,000-75,000 and you can extend payments from 10-30 years. Thus, small monthly repayment is possible.

Secured holiday loans are facilitated with lots of facilities. In secured holiday loans, the rate of interest is comparatively lower than unsecured holiday loans and credit cards. Apart from that, secured holiday loans cover all travel related expenditures- from tickets to hotel charges, from meals to miscellaneous expenses. Even, easy availability of secured holiday loans is also an added benefit.

Secured holiday loans are also available for those people, who have bad credit history. CCJs, IVAs, defaults, arrears discharged bankrupts are also considered for secured holiday loans. Though, in that case, rate of interest becomes slightly higher.

However, at the same time you should be aware that secured holiday loans are available against your property. Thus, at first you will have to calculate the amount you need for your trip. Make a budget and try to maintain it during the trip; as if you are not able to repay the amount, your property will be at risk.

Now the question is, how can you apply for secured holiday loans? Needless to say that many traditional lenders, like financial institutions, banks offer secured personal loans with attractive package. Besides, Online option has emerged as a good option for secured holiday loans, as many loan-lending companies offer online secured holiday loans along with useful information about different places, hotels etc.

Without money holidaying is just impossible. But, with secured holiday loans you can make it possible. The interest rate charged on secured holiday loans is comparatively low than credit cards and the repayment terms are very flexible. Even with secured holiday loans the amount you can borrow is relatively high. Thus, secured holiday loans are totally appropriate for a hassle free holiday.

Secured debt consolidation loan: Pay off your multiple creditors through a single loan

Secured debt consolidation loan is designed to consolidate your debts in a systematic and orderly manner. It helps you to organise your escalating debts in a single loan amount, which you can easily manage. Secured debt consolidation loan also turns off all your previous creditors to whom you are answerable every month.

Due to the rising mania among people, loans have become fast and easy medium for them to satisfy their innumerable personal wants and desires. They rely on loans for all their necessity, without considering once about their repayment capacity and poor financial position. Lenders also find a good chance to earn money from them. People keep falling prey to their various loan offers and in a short time they have to bear the consequences. Secured debt consolidation loan can redeem them during such financial crisis by reducing their debts and putting an end to all the creditors.

As the name signifies secured debt consolidation loan is secured against your property. Lender charges low interest rate and gives you long period of repayment. You can also fix up your monthly instalments as per your repayment capacity. However, the ugly part of secured debt consolidation loan that you might have to bear is losing your property, if you fail to repay the amount. Secured debt consolidation loan eradicates your high interest rate and multiple monthly instalments. You are accountable to one creditor for all your repayments.

You can search for the lenders and collect all the relevant information about them with the help of the Internet. Before you sign the deal, make sure you understand all the terms and conditions of the loan

Secured Consolidation Loans

If you are looking for ways to make your debt repayments more manageable then our secured loans, consolidation UK loans from our top lenders could be the answer. Our lenders offer a wide product range at competitive interest rates and with repayment terms to suit your needs.

Secured loans, consolidation UK loans are defined by the fact that they are granted using the borrower’s home as security or collateral. This means that if they do not keep up with the repayments on the loan the will eventually have their home repossessed and sold in order to repay the loan. It is wise to ensure that before you secure a debt using the equity in your home, you are confident that you can cover the repayments on secured loans, consolidation UK loans. A simple income and expenditure analysis will give you a picture of your finances and enable you to budget for additional loan repayments. To work out exactly how much you need to borrow you must work out a total figure for your debts don’t forget to ask your creditors for settlement figures, not balances, as any additional charges like early redemption penalties must be included. This is an early settlement charge that some creditors charge when you pay off a debt earlier than agreed at the outset and can be up to 2 months interest.

The amount you borrow is subject to a charge by the lending company and is called the Annual Percentage Rate or APR. Lenders usually quote typical interest rates for secured loans, consolidation UK loans but these are only indications of what you may be offered and not a guarantee. The exact interest rate you are charged will depend on the amount you wish to borrow, the number of years you need to pay back the loan (term) and the lender’s flexible assessment of your unique situation and ability to repay the loan as agreed. You’ll enjoy lower Interest rates for secured loans as apposed to unsecured loans because the lender is taking a lower risk with you betting your home that you will repay the loan.

Comparing APRs is a good way to see just how competitive different secured loans, consolidation UK loans and lenders are. You may even find that the same lender offers lower interest rates for the same product if you apply online as apposed to using the telephone. Interest rates are also referred to in different ways, depending on your repayment preferences. You may choose a fixed interest rate or variable interest rate. With a fixed interest rate your monthly repayments are fixed for the entire term of the loan and remain unaffected by fluctuations in the bank base rate. This will give you the security of knowing exactly how much you are expected to pay each month. In the case of variable interest rates, the rate you pay is linked to the bank base rate and could go up and down from month to month. This would make it difficult to budget accurately but would give you the flexibility of benefiting if interest rates drop. On the other hand, if rates increase you will end up paying more for your loan.

Some lenders allow you some flexibility in permitting over-payments and lump-sum payments with secured loans consolidation UK loans. This could enable you to clear your debt over a shorter period if you can, thus bringing down the total cost of the loan.

Secured Business Loans Are For All Including Bad Debtors

Money, Manpower and Materials- these three are the pre requisite criteria for a business. As fuel is necessary to drive a car, same these 3M’s play the leading role for sustaining a business. And, because of that, business loans have become quite popular in lending market. At the same time, it is also true that among the numerous applications, only few are benefited to avail business loans. In that case, the presence of a security can give you extra privilege to avail a business loan. Even more, if you have bad debt, then the existence of security will ensure you to get a business loan without any hassle.

A business loan can be secured when it is offered against a security. As security covers the risk of lending money, thus generally lenders do not take time to provide these loans. One can use both his personal and business property as security. Bad debt secured business loans are offered with a package ranged from 50,000 to 1,000,000. And the repayment period varies in accordance with loan amount. Generally the repayment period is decided anything between 3 to 25 years.

Bad Debt Secured Loan, a customized facility for bad debtors that helps them to fund their business. Here bad debt borrowers mean those credit score is 580 or below it. They could be CCJ’s, IVA’s, defaults, arrears, bankruptcy etc. Since, the existence of security covers the risk of lending money, thus lenders do not hesitate to provide bad debt secured business loans. But obviously, due to bad debt, bad debt secured business loans are available at higher interest rate.

A bad debt borrower can obtain secured business loans either with flexible repayment option or with fixed rate option. Fixed rate loan option indicates that a borrower has to pay a fixed monthly installment every month. On the other hand, with flexible loan option borrowers can pay off the loan amount according to their convenience. In such cases, borrowers can get the facility like overpayment, underpayment, payment holiday etc.

Here, the borrower needs to know that he will have to fill up some documents while applying for a secured business loan. These are like:

A vivid profile of his business where the nature of his business, annual sales, duration of the business will be described.

If it is new business, then it is required to present the business plan and how the business would be capable enough to repay the loan amount.

A loan request also will be attached along with the loan application that will specify what kind of secured business loan is required, the amount and obviously the purpose.

Submission of other financial statements like tax returns, balance sheet, profit and loss statement is also mandatory.

Bad debt secured business loans work well to gear up a business perfectly. If you are a bad debtor then stop repenting for that and start funding your business with bad debt secured business loans.

Secured business loans: before you take that big business leap

Business loans form a significant part of lending industry. With so many people applying for business loans, you must be wondering how many of them actually get them. The increase in amount of business loan every year shows the swelling in approval rate of business loans. So, what are your chances of getting business loans? I say, attach a security to business loans and your chances are bright. Secured business loans are loans for specific purpose namely business. There is no better terminology for business loans with opportunity.

Before you apply for secured business loans check out you borrowing capacity. Every business is different which means there will be no universal method to know the cost and therefore budgeting is important. This enables you to deduce whether you can afford secured business loan or not.

Tuck in those documents! Generally a secured business loan borrower would require few of the documents for approval. First and foremost is the business profile discussing the nature of business, annual sales, length and time of business ownership. In case of new business you would require to project the loan plan and how the business would be successful enough to pay back the loan. For secured business loans the loan application will also include a loan request. This will include the type of secured business loan required, the amount and the purpose (how the funds will be used).

Secured business loans is secured details about collateral will be integral. The collateral and its details, equity available, equity in the business, borrowed funds and existing cash should be included in details of collateral. Along with collateral you would be required to provide financial statements for yourself and your business. Be ready with personal and business financial statement for three years and current financials statements. With secured business loans you will be asked for owners, partners, officers, stockholders with more than 20% of etc.

A lender looking at your secured business loan application will search for repayment. A borrower can provide a brief repayment statement which includes sources, cash inflow and other information to support it. With secured business loan you are providing collateral which will mean an additional form of security for the lender. This the lender will certainly like! He will have additional repayment to fall back on when you don’t have required funds to payback the loan. Both personal and business assets can act as collateral for secured business loans. If the business loan borrower does not have collateral he should have co-signer who should have collateral to pledge. In a secured business loans application, collateral will be the second most identifiable source of loan repayment after business cash inflow.

A lender will inquire whether your personal or business credit is good or not. Get your latest credit report and make sure it carries accurate information. As you have applied for secured option it means that you would have better choices. However, credit score will modify the interest rates you get for secured business loans. With bad credit score you will be paying higher interest rates as compared to ones with perfect credit.

While preparing to get money it is important to see your financing options. There is both a financial and emotional component while borrowing secured business loans; your property is at stake. Make sure you are ready for it. Then do some market research. Take it as a test where you have to get the best grade. You would probably not start a business without researching the market; make sure you follow this rule while settling on secured business loan. Yet do remember that time is money. And don’t waste too much time in settling on the option.

Every big business starts out small. Secured business loans are in fact the first thing that comes to the mind and provide fundamental opportunity when one is raising money for business and can provide to those who are to those who are looking for funds for business purposes. Secured business loans are what you need when you are looking for business loans with security.

Secured Business Loans Source of funds to Establish Your Own Business

The term business seems so simple. But, do you know how much efforts are required to start and establish a business. A well-established business showcases the hardship, dedication and capital investment made by an entrepreneur. Are you one of them who want to rule the world and are tired of the orders of your boss? If yes, then it’s great; most of us want the same. But, whenever you evaluate the investment needed, it made you back out from the business plan. No need to despair any long; now you can borrow a secured business loan to secure your business dream.

Business loan come in two main forms – secured business loan and unsecured business loan. Now, you would think why I suggested you secured loan despite of other loan alternatives available. There is a strong reason behind it, I am here to suggest you the best option and that’s what I did. A secured business loan requires a borrower to put collateral against the loan borrowed. Collateral, which a borrower needs to keep, can be in the form of a house, car, savings account or any other property owned by the borrower.

A secured business loan is a package of everything perfect. It offers a loan for a longer term, which can be extended up to 30 years in some cases. A borrower can borrow a secured business loan for a larger amount which can range between 25,000 to 10 million depending on the loan term and credit rating.

A borrower can enjoy the benefit of flexible repayment options offered by secured loan. One can choose a fixed rate loan or a flexible rate loan. A fixed rate loan implies that a borrower has to pay fixed monthly installment. People who are sure that they will be able to pay fixed monthly installment each month, can opt for this option. Flexible loans requires a borrower to pay monthly loan as per their convenience. Borrowers can make overpayment, underpayment and can enjoy payment holiday too.

If you want to start a new business, then you need to present a business plan. Your business plan will help in determining your possibility of getting the loan. Thus, a business plan is needed to be planned thoroughly. Don’t keep any secret; disclose every minute detail to the lender. An ideal business plan contains each and every detail of the business – product, identifying competitors existing in the market; your business strategy, your future plans, financial forecasts and what are the risks involved in the business.

Entrepreneurs who have an established business may need to submit few documents such as a copy of business tax returns, balance sheet, profit and loss statement and other financial statements. These statements will work as evidence that the borrower is making profits or losses and whether the profits are large enough to cover the monthly payments or not. You need to make a business profile giving description of the annual sales, length of time in business and ownership whether a business is in the form of proprietorship, partnership or a private limited company.

Traditional lenders such as banks and financial institutions can be approached for borrowing a secured business loan. It won’t be wrong if I state that twenty first century is an era of technology. Every one wants to become computer savvy. An important contribution of the rapid mounting technology is the invention of internet. Internet has broadened the growth scope of the finance market with the entry of online lenders. Online lenders offer fast online loan with ease. A borrower can access online lenders by browsing loan providing websites. Online lenders give the convenience of borrowing loan. Online application form are available at most of the websites, a borrower needs to fill it. Online lenders approach the loan applicants with the most appropriate loan option.

There is one more area lenders focus on; this is credit status of the borrower. Higher the credit score, more is the possibility of getting a secured business loan at better rates, and that too for a longer term. Poor credit score cannot stop you from getting a secured business loan. You just need to have collateral to put as a security to borrow the loan.

Though, there are various benefits attached with a secured business loan. However, as a coin has two sides same is the case with a secured business loan there is risk involved regarding the repossession of the collateral kept as a security if one fails to repay the loan. There is risk involved in every deal, running a business also involves risk but a wise man knows how to manage the situation and accept the challenge. If you want to make a mark for yourself in the business world then you would definitely accept this challenge and will bear the risk to prove your capability and entrepreneur skills.

Secured business loans An opportunity to showcase one’s entrepreneur skills

Publilius Syrus’s statement, “Money alone sets the entire world in motion” holds true to the world of business. Starting a new business involves huge investments. You may have big plans for the business but they won’t work if you don’t have the money to finance them. There are different sources to finance the business. But the best and cheap alternative available in the finance market is the secured business loan.

Secured business loans require borrowers to put a security against the loan. Borrower’s commercial properties, machines or equipments can work as collateral. Secured business loans can be used to start up a new business or to enlarge the existing one. An entrepreneur can also utilize secured business loan to finance the working capital, which can be used to purchase raw material, paying the labour charges etc.

Borrowers can enjoy various benefits with secured business loans. A borrower gets the freedom to use the property which is kept as a security against the loan, to ensure smooth running of the business. Secured business loans are offered at low interest rate as the loan is secured against the loan.

With a secured business loan, borrowers get the option to pay either a fixed interest rate loan or a flexible interest rate loan. In a fixed rate loan, the interest rate is fixed in the beginning of the loan term and it remains constant throughout the loan period. While, a flexible rate loan implies that the rate of interest varies with fluctuations in the market rate of interest. A borrower can choose the interest rate according to his or her convenience.

Running a business is very risky, filled with uncertainty. You may get huge profits one month and big losses next month. Thus, returns are unpredictable. In such circumstances, flexible repayment option offered by secured business loans can be helpful.

Secured business loan providers can finance small as well as big businesses. You can borrow any amount ranging from 25000 to 10 millions. Few lenders can provide you business loan for a higher amount too. Amount of loan you can borrow depends on the value of the collateral and the lender you select. Repayment term of a secured business loans can be extended up to 30 years.

You need to stay prepared with some documents and business plan to apply for the business loan. A borrower needs to submit following documents with the lender to get a secured business loan:

Business financial statements

Business tax returns

Personal financial statements and tax returns

The next thing you need to work on will be the business plan. Your business plan must include information regarding the product you produce or plan to produce. Give details about your present and future marketing strategies, what are other sources of finance you have employed in your business, your management structure and the risk involved in the business. So highlight your financial performance both in the past and in the future. You will be more impressive if you have carefully thought-out and become familiar with your plan. A good business plan can brighten up the possibility of getting a fast and cheap secured business loans.

A borrower needs to concentrate on one more area, that is, his or her credit score. This will be an important aspect on which the lender will be looking at. So try to improve it by paying out old debts and it will be easier for you to grab good rates in the market.

Secured business loans are offered by commercial lender as well as financial institutions. Now, you can apply for a secured business loans online too. Browse through various loan websites and collect loan quotes from them. Compare loan quotes and find the one which you find the best satisfying your needs and expectations.

Starting up a new business or expanding the existing one may require huge investments. Secured business loans can serve this purpose in the most efficient and effective manner by offering low and flexible loan repayment options.

Secure vs. Unsecured Loans

Essentially, there are two types of loans: secured loans and unsecured loans. Secured loans are loans in which you pledge some sort of collateral. The bank may repossess the collateral if you do not repay the loan according to the terms you agreed to when you took out the loan.

Unsecured loans are not backed by any collateral. You borrow money on the strength of your good credit and ability to repay alone.

Revolving vs. Installment Loans

Revolving and installment describe the amount of time you have to pay back a loan. With a revolving loan, you have access to a continuous source of credit, up to your credit limit. You repay only the amount of the credit you use, plus interest on the unpaid amount. You may re-borrow the principal you’ve repaid. So the loan could remain “open” for years.

With an installment loan, you pay an agreed amount, which includes principal and interest, every month. Each payment reduces the balance of the loan until it is paid off. There is a fixed ending date, known as the term of the loan.

Fixed vs. Adjustable Interest Rate Loans

Fixed interest is just that. You and the bank agree to a certain interest rate and it remains constant throughout the term of the loan. Fixed interest rates give you the stability of always knowing what your payment will be, so you can budget accordingly.

Adjustable or variable rate interest fluctuates. Usually it is pegged to the Prime Rate – the interest the U.S. Treasury charges to its best borrowers. When the Prime Rate is high, such as during a period of inflation, you pay more. When the Prime Rate is low, such as when the government is trying to stimulate the economy during a recession, you save on interest. If you need to borrow during a period of high interest, your payments will drop once the Prime Rate drops.

Types Of Loans

Auto Loans: A secured loan in which the collateral is the vehicle you purchase.

Credit Cards: An unsecured loan which allows you a line of credit against which you may borrow by presenting a plastic card to the merchant from whom you are purchasing the item. You may make more than one purchase, up to your credit limit.

Personal Loans: Secured or unsecured loans made for a fixed purpose.

Mortgages: A secured loan in which the collateral is the real estate you buy.

Home Equity Loan: A secured loan for a fixed amount in which the collateral is your home. In some cases, the interest on this loan may be tax deductible. See your accountant.

Home Equity Credit Line: A secured, revolving line of credit in which the collateral is your home. In some cases, the interest on this loan or a portion of it may be tax deductible. Consult a tax professional or your accountant.

Home Improvement Loan: A secured loan for a lump sum fixed amount in which the collateral is your home. The money may only be spent on home improvements. The interest on this loan may be tax deductible. Consult a tax professional or your accountant. (In some areas of the country, a home improvement loan “secured by the equity in your home” may not be available. In these areas, an unsecured home improvement loan would be available.)

Student Loan (Stafford Loan) A loan for college expenses underwritten by the U.S. Government. The loan is granted to the student. Payment is deferred while the student is still in school.

Personal Line of Credit: Unsecured loans allowing you access to funds up to a fixed credit limit.

New business loans: helping an entrepreneur wear the hat of a financer

Okay, so you are high on the clouds! You have a great business idea and you just want to get on with that. You have a business name, you have the intellectual force, management plan, you have everything. Well, almost everything. You don’t have the required funds. There is this major hurdle raising funds. New business loans can channelize your business initiative in the right direction.

New business loans are a huge responsibility. A proper new business loans is fundamental to starting a business and ensuring its expansion. Raising money for new business will not be possible without proper information and preparation. The most common source of new business loans funding comes under banks and credit unions. There is no need to believe that new business loans are harder to procure.

Prepare written proposal especially if you are looking for new business loans. Approval of business loans considerably depend on how well a proposal is written by you. You would not find new business loans if you falter in your presentation. Every lender will be looking for repayment when he is making a decision about extending new business loans. A written proposal will contain general information and details about financial status.

Business name, name of proprietors, with their social security numbers will constitute the general information. Details about the new business loan, the amount required, its purpose and usage will be imperative. Also, mention the nature of new business you are trying to venture in. Provide some information about your education, experience, skills and achievements. Your personal financial statements and of partners will be required. Don’t forget to give details about the collateral you are offering.

New business loans proposal will be practically incomplete without business projections. Business projections will include details about how positive cash flow will be achieved. Give information in the profit and loss figures explaining income and expense. Provide concrete examples, easily identifiable from industry standards. Write in a way that can be described with industry standards and which is easily understandable.

New business loans can be either long term or short term depending on your financial demands. Short term loans will have a loan term up to one year. On the other hand, long term loans have loan term ranging from 1-7 years. This term can extend to 25 years in case you are applying for equipment and real estate new business loans. Entrepreneurs can get start up business loans ranging from 15,000-250,000. Some lenders may be willing to offer more as new business loans. However, you should be able to prove that you will be able to repay it.

An important consideration of new business loans lenders is credit ratings. Credit history and credit score is the single most significant criteria that helps the lender to decide whether to provide the borrower with the loan or not. Many people are practically unaware of their credit score or whether they have a credit score or not. Three major credit scoring agencies Experian, Trans Union, Equifax will enable you to find your credit score. Check your credit report carefully and see if there are any mistakes or changes. They can be easily corrected if you happen to inform the credit reporting agency. Credit score above 620 is considered good credit. Anything below will start having problems finding credit on their terms. Below 540 is considered bad credit. New business loans are available for bad credit borrowers. But, only few borrowers are willing to work with them and will come with the drawback of higher interest rates.

When starting new business, dedication and passion are not enough. You will find that finances are something without which your skills and efforts will not be suitably translated. New business loans can provide you with the finance that you want and get you the success that you deserve.