Comparing the Business Loan Offers

Most business owners seek for some financial assistance for many reasons such as expansion, additional funds and a lot more. There are many different types of business loans available to business owners including secured and unsecured loans and business lines of credit. It is important that a business owners fully understand the different aspects of each type of business loan in order to make the best decision for your business.

Clearly loans come in a variety of forms; these can help you assess each type of loan product.

Check if the interest rate is fixed or variable
Fixed and variable rate are both available for business borrowers. Always keep in mind that while variable rates frequently have a lower rate for an introductory term, the rate could rise later in the loan term due to fluctuations in the market. The type of interest rate will depend on the kind of loan being applied for.

If collateral are required
Whether it requires collateral or not, it depends on several criteria such as; how much money are you borrowing? How long have you been in business? Or what is your credit rating?

Unsecured loan does not require collateral but have higher interest rates.

You also need to consider the loan term
The length of the loan will depend on the amount of money being borrowed.

What you should know about Asset Based Lending

Growing your business is a bit rough; most business owners will tell you that it’s tough obtaining commercial financing. I must say it’s true, in such tight economy and credit environment. The vital cog in the economy right now is the asset-based lending and it has increased exponentially.

Asset based lenders provide creative business financing solutions for companies that is having a hard time to qualify for traditional bank loans and credit lines. It also helps companies that have bank loans or lines of credit but needs additional short term working capital to take advantage of opportunities.

So if your business is growing rapidly, in the middle of a turnaround or undercapitalized then asset based financing is the ideal alternative for you. But remember this type of loan works only for companies with a strong accounts receivables and a demonstrated track record of turning over inventory several times per year. And such loans are often expensive than bank financing, as asset based lenders tends to have higher expenses than bankers do. Pricing among asset-based lenders is competitive, but interest rates can range from 12 percent up to 28 percent. The loan amounts tend to be $100,000 and up.

How Caveat Loans helps a Business

Caveat loans are a fast and easiest way to get money when you need it the most and a good way for business owners who needed quick cash. But this type of loan must be secured by real estate properties. However there are many reasons why you should choose this type of loan, like if you are planning to startup a business and you will need a large amount of money to inject on the business, caveat loans is perfect for you.

Applying for a caveat loans will only require you to be an asset owner, most importantly you need to have a clear exit strategy, which clearly states how you can pay the loan which includes where you will get the money. Caveat loans can also help you with unexpected urgent debts

that you need to pay to avoid late charges. There are times that cash flow slows you down from gaining enough money for paying large debts, which also stops you or giving you a hard time to pursue your business. Caveat loans can help your business to go through some of the hard times your business might face. Just make sure that you can repay the amount that you will acquire.

Value of Short Term Loan

Most people tend to think loan as a burden. But we cannot deny the fact that sometimes loans are really beneficial. Short term loan can help a lot of people who are in need of immediate cash; you cannot approach a bank when you need urgent cash. This is the time when payday loans are the best option.

Payday loans are designed to lend money that is payable until the next payday comes. Since the loan has to be repaid with your next pay cheque, you’ll have to tighten your budget to make the full payment. Otherwise you might make this loan a habit and will end you up in debt.

One common factor that affects the quality of life of every person is your relationship with finance. In the midst of a financial crisis, short term loan can keep you going forward, since it is designed to offer a short term money solution. Obtaining short term loan like payday loan offer an alternative for people with less than great credit.

Payday loans have a fast turnaround, and this is the main benefit if you need urgent cash. Payday loan lender does not check your credit score, the only concern of the lender is whether you can pay or not. The repayment scheme is very short.
Short term loan can really be beneficial provided that you are a responsible borrower and you know how and when to pay.

How Can a Debt Consolidation Help You?

For most people with debt problems and cannot handle their financial problem, debt consolidation is a debt relief option. This has helped many debtors to get out of debt and enjoy the debt free life again. If you are serious about how you can bring your financial stability in a good status, you can derive benefits from debt consolidation.

A deb consolidation loan is a loan that will replace your multiple loans into a single one. There are two option either you get a secured debt consolidation loan or unsecured one. But it is better to take out a debt consolidation loan that is unsecured.

If you have decided to take a debt consolidation loan, you will have to approach a debt consolidation company. They will assess your financial situation and ask you all the information about all your existing debts, the rate of interest attracted by each debt account. The debt consolidation company will then negotiate will all your creditors so that you can enjoy a lower rate of interest. Once the interest rates are reduced your payments will be lower too. You will have an agreement to pay monthly as per payment plan that is of your convenience.

A debt consolidation program will help you and make your debt manageable and the payment schedule will help you keep track of the payments every month.

Consequences of Having Credit Card Debt

Credit card is one of the biggest contributors in debt problems.  Most people do not know the results of reckless credit card usage until they have reached the drowning debt stage in their life.  It is important that you are aware about credit card debt before applying for a credit card or making any other financial decision.

You will have lots of sleepless nights thinking on how to pay your debts; this can cause you some health problems. Stress can lead to major health problems. Collectors will be harassing you to pay your debt, they will be calling you at home or even at work which can be embarrassing to let your co-workers know that you are hiding from credit card collectors.

Since you were not able to pay your monthly dues, you will be charged late finance charges, interest rate which will cost you more. One worst thing that a credit card debt can cause is divorce or family relation be affected, for instances couples who have been drowning in debts will have some problems with regard to their financial status.

So why let this happen to you, if you can avoid it.  Always think twice before getting a credit card or loans, ask yourself “Do I really need it”.

The Psychology of Debt

Debt is a scary place to be, but everyone’s situation is different and a financial advice should be tailored to an individual’s particular circumstances with the help of a professional adviser. Most individual are experiencing financial struggles, it is important to understand the factors that led you into that debt situation and never go back to that circumstances. The most common expenditures that lead to debt problems are excessive credit card usage, unplanned purchases and unsuccessful business ventures.

Being a better planner and begin to stop acquiring debts is the first solution to your debt problems.  If you are in debt because of overspending then changing your lifestyle, you must address the emotional state that drives you to live beyond your means. Debt management is the only solution to get all that headaches and burdens out of your life. You must develop the discipline to create savings and cash reserves. Try to change the way you think about debt and you’ll see, you will be prepared to implement those life changing solutions.

Getting out of debt requires proper financial management and discipline. Always put in mind the risk of having debt before acquiring one and consider your ability to pay.

Three Options to Obtain Credit Card Debt Consolidation

Are you fed up with various credit card companies that call you every month just to harass you over your late payments? You are not alone. That is the usual complaint of consumers who fail to pay credit card dues on time. Aside from that form of harassment, you could also expect your credit card bills to get higher due to penalties and other added costs. If you own two or more credit cards, now is the right time to consider credit card debt consolidation.


You could now simplify your life and obtain necessary relief from owning various credit cards at the same time. Credit card debt consolidation could help you attain that. Interestingly, there are currently several options you could explore and consider if you intend to consolidate your credit card debts. You would not just unify your credit card debts. You could also save on interest payments and other costs. There are three options for credit card debt consolidation.

Home equity loan

The first available option is what is called as home equity loan. It is always advisable to take such a loan and use the loan amount to pay off each of your credit card debts. You could have an opportunity to incur a lower interest rate payment each month compared to how much you would be charged for paying multiple credit card bills.


Amazingly, more home equity loans are available in the market. Lenders are getting more aggressive in offering such products to win borrowers. Thus, it is wise if you could do a comparison shop to find and choose only those loans with the least interest payment requirements and costs. There would be no need to worry each month about paying several credit card bills.


Personal loans


Another option for credit card debt consolidation is through applying for and obtaining any of available personal loans. Like home equity loans, there are numerous of such products in the market today. You could have a great time comparing interest rates, costs and loan terms and conditions. If you have good credit scores, getting a personal loan with lower rates would not be a problem. If not, reconsider getting one because you may end up having another debt with a higher interest rate.


Personal loans that could be used for your credit card debt consolidation efforts could come from various loan providers. You could apply for one from any lender or other non-bank loan institutions in the market. There are also personal loans available online.


Credit card balance transfer


Another option to consolidate credit cards is through using another credit card. If you own a card that offers 0% or much lower interest rate on balance transfer, use it to consolidate your debts from other credit cards. If you do not own such a credit card, apply for a new one that offers such a feature even at an introductory basis.


Just be sure to pay your dues diligently this time. It is also advisable to double your credit card payments when you use balance transfer for credit card debt consolidation. This is to make sure you would not fall into another credit card debt trouble again in the future.  

How Recourse and Non-Recourse Loan Works

Recourse loan is a type of loan where the lender has the power to go after you even if they already have taken your collateral.  Basically recourse loans allow the lender to come after you in case you default. You can contrast recourse loan with non-recourse loans, which create more risk for lenders.  The lenders are allowed to go after the amount due, and if you default on a recourse loan they can file a case against you, garnish your wages and try to collect the amount that you owe.  Deficiency judgment is the legal action to collect money after foreclosure.

A non-recourse loan is a type of loan where the lender is not allowed to pursue on anything other than the collateral.  Like if you default on your non-recourse home loan, the lender can only foreclose the house and generally they cannot take further legal actions against you.  This type of loan is more risky for lenders, because they can only collect the collateral and nothing else.  These loans may have higher interest rate than recourse loans.

Always remember that before acquiring a loan think twice if you can afford to pay it, also consult an attorney or a tax adviser to be certain if you are getting a recourse on non-recourse loan.

Who is Eligible for Low Doc Loan?

Low doc loans are loans that will help people who are self-employed; this loan will help you to fund your purchase. These loans are normally offered as a way of meeting the requirements of small business owners, freelancers and other people who hold an ABN.  Low Doc Loan are designed for self-employed who couldn’t get a home loan due to inability to show how much they are earning using the traditional method.  This type of loan uses self-verification systems where you can declare the amount you are earning.  Although you will not provide any actual proof of income the lender will still do their usual credit scoring as well as confirm that you will be able to pay for your loan with the income which you have stated on your form.

Low doc loan are available for those who have regular normal jobs, though this are not quite as easily available.  It is best to speak with a reliable mortgage broker to find the right low doc loan for you. Low doc loans also have its disadvantages like it will generally come with a higher interest rate because the lender is taking more risk than you. And you won’t be able to borrow as much, it will only allow you to borrow around 65% of the loan to value ratio.

The low doc loans are loans that will help people that are self-employed to get loans

Documents Needed to Apply for a Business Loan

Acquiring a business loan can sometimes felt like eternity.   Applying for loans really take time especially if you haven’t submitted all the necessary documents.  Here’s a list of all the documents that you will need to apply for a business loan and speed up the process.

Business plan. The plan should convey all important facts about your business in a concise manner. Make a winning business plan.

Business Profile.  The profile should have everything that describes your business including the annual sales, number of employees, years of the business and ownership.

Loan request.  This will be the amount of loan that you are requesting, where you will use the loan, type of loan and the amount of capital on hand.

Collateral.  This will give the details of the asset that will secure the loan.

Personal and Business financial statement.   The lenders would want to see a complete schedule of current debts with balance, payment schedules, maturity and the collateral that is used to secure other loans.

Preparing all this documents will surely speed up the process of your business loan application. But remember and consider your capability to pay otherwise you will just end up with another debt and a bankrupt company.

How to Get Instant Approval for Short term Loan

There is lot of reason that leads to cash shortage.  Eventually you cannot avoid instances like this and the only solution is to borrow money.   Short term loan often come in the form of payday loans.

A short term loan usually takes a few hours or up to 24 hours the most to process. There are only few documents required, simply just fill up an application form and present a pays lip or income verification, an identification card and a proof that you are employed.   Another thing is you should be at least 18 years old and above and a permanent resident.  These loans are readily available with easy repayment schemes.

But always remember that payday loans are mostly unsecured.  You can also apply online and that’s makes applying for a short term loan very convenient.  You can choose and explore many other options.  Payday loans are well known and very attractive to those who are in need in case of emergency.

Do not forget that any form of borrowing money can add a burden to you financial struggle if not manage perfectly.  Always pay the money that you borrow to avoid debt problems in the future.

Tips on How to Avoid Credit Card Debt

Every time people talks about debt, most of them were acquired through credit card.  Avoiding credit card would be tough for some who’s lifestyle are way beyond the normal living. But for some who uses the credit card wisely and take advantage of it, having credit card is good choice.  

But if you are one of those who are dealing with credit card debts, it is important to resolve your situation immediately as possible.  Here are some warning signs that you might be starting to deal with a credit card debt.

You often pay minimum amount on your cards.

You spend more than what you earn.

You skip payments on your credit card bills or get a cash advance to pay another card.

You have maximized your credit card limit.

Credit card collection agencies are calling and asking you for payments.

Asking about debt consolidation programs

Now, if you are just planning to have a credit card. You might want to follow these tips to avoid credit card debt problems:

Pay the full amount owed every month to avoid the exorbitant interest rates, and also you can benefit from the grace period that enables you to borrow money for free for a few weeks.

Determine how much you can pay on your credit card bill monthly and stick to it. 

Do not use your card if not necessary.

Stop impulsive buying which may lead to reckless spending.

Well, if you expect that you cannot pay your credit card bill might as well use your debit card.  And always remember that if you use your credit card, you are borrowing money from your future earnings.  And it is bad habit to get into.