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.