Is a Second Mortgage Better Than a Business Loan?
Businesses cannot thrive without adequate funds for its capital and operating expenses. It cannot grow without funds for expansion services and growth-oriented endeavors. But, not everyone is enthusiastic in putting their house on the line when getting a loan. While a second mortgage is a type of loan that lets you borrow a substantial amount –of money against the value of your home, some are skeptical about it. Your home is considered as an asset, waiting to happen. As Robert Kiyosaki, a famous real estate business mogul said that a house is a liability when it takes money from you. […]
Avoid These Debt Consolidation Loan Traps
If you want to secure a lower overall interest rate for your entire debt load and roll then into one convenient loan, debt consolidation is the right loan product for you. This form of debt refinancing allows you to take out one loan to pay off several debts. It is the best option for people who have many high consumer debts. Many borrowers opt for this type of loan because they only have to pay once every month and they usually enjoy lower interest rates and monthly payments compared to their original debts. But, if you are not careful, you […]
When Is The Right Time To Refinance?
When it comes to refinancing timing is almost everything. Here are things to consider when deciding when to refinance a loan. Understanding Refinance Refinancing means you are borrow money on top of your existing mortgage. You are simply replacing your existing mortgage with a new one. In most cases, the new lender pays off your existing mortgage with better rates and more affordable terms and becomes the new holder of the mortgage on your property. Here’s an example. Amanda has a mortgage of $200,000. She has already paid $50,000. But, she is having a hard time repaying her loan because […]
What Every Entrepreneur Should Know About Caveat Loans
The length of caveat loan typically ranges from 2 weeks to 3 years while waiting for the approval of a longer-term loan or a larger one. It is a short-term loan which is often called a “bridge loan” because it is an interim financing for an individual or business until the next financing is arranged. The borrower usually gets a new financing to repay the caveat loan and to finance other business needs. Are caveat loans cheaper than conventional financing? Many lenders consider this type of loan as a risky type of financing that’s why they typically charge a higher […]
Debt Consolidation Loans – A Final Solution?
A debt consolidation loan combines your unsecured debts into a single monthly repayment. Many Aussies who struggle with massive debt are overwhelmed by this aspect. So, if you don’t want to wreck your credit with bankruptcy, but you wish to ease the debt burden, debt consolidation could be a possible solution. Debt Consolidation Loans – The Benefits Lower interest rate – In the case of debt consolidation loans, you could negotiate for getting a lower interest rate. It is implied that this reduces the total sum of the debt. Lower monthly repayments – If you prefer lower monthly repayments since […]
How Does a Personal Loan Affect Your Credit Score?
There are unexpected scenarios in life when you are in need of immediate financial help. Whether it’s the case of an unprecedented car repair, tuition bill or any other emergency, getting a personal loan is one accessible way of having extra cash for a particular purpose. Nonetheless, before you consider choosing personal loans, you should acknowledge their impact on your credit score. When you use it accordingly, a personal loan can have a beneficial influence on your credit rating, as long as you handle the situation right. What Affects Your Credit Score? First and foremost, your credit score is calculated […]
What Is A Bridging Loan And How Can I Utilize It Wisely?
Are you using bridging loan to catch up on overdue bills and increase security of income? Or, are you taking it to purchase another home while your existing home is for sale? If you know “what is a bridging loan”, then you understand why many borrowers choose it not only to finance their emergent needs and buy a new property but to invest into an income-generating project. Bridging loan is a type of loan that supplies the borrower with a certain amount of cash, payable within 1 to 12 months. It literally serves as a bridge for a person to […]
Can a Short-Term Loan Be an Alternative to a Business Emergency Fund?
Financial Emergencies—from natural disaster causing equipment damage to a social-media crisis- -are a fact of running a business. When you are facing unexpected business emergencies, short term loans can help you. What are business emergency funds for? The unexpected events that can throw your business into a bin are typical occurrences in the lifecycle of any industry. But, without an emergency fund, your business is vulnerable to losses. There are unexpected events that can damage the credibility of your company from disgruntled employees to lawsuits filed by customers or suppliers. Natural disasters such as hurricane and earthquake can damage the […]
Do This Before Applying for a Business Loan
Are you applying for business loans to finance your daily operations? Here are two factors to consider when applying for business loans regardless of the stage of your company. Budget – Who says starting a business is not fun? It is. But, it’s not always easy. You want your budget to be as effective as possible by narrowing down the expenses depending on your target market and business partners. Your budget should be able to cover the cost of daily operations and marketing. It is not enough that you are an expert in the trade. Book keeping, especially budgeting is vital […]
What You Probably Don’t Know About Debt Consolidation Loans
If you keep on defaulting on your loan payments and you want to start with a clean slate, debt consolidation loans can help you. You can reduce your multiple debts into one monthly payment at a lower interest rate. But there are still essential things you need to know. Debt consolidation means rolling multiple debts into one loan. Let’s say you have 4 existing loans with a total of $10,000 and you are paying 10% interest for each of them every month. The debt consolidation company will negotiate the loans together, roll them into one and possibly lower your interest […]