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How to Increase Your Odds of Landing a Loan

Loans are an important financial tool that comes in handy when money is needed but unavailable. Loans can be used to purchase a car, personal items, electronics, investments or even a home. Loans can also be used to clear debts or pay for items that are needed. So when cash is not readily available but is needed in substantial amounts, then it is important that a loan is considered.

There are various types of loans available to borrowers, the preference of which will depend on the intended use, amount sought, interest rate charged and ease of access. A common type of loan is a payday loan. A payday loan is a cash advance that is made available to people who have an immediate need for cash but do not have it handy. The cash advance is provided with the hope that it will be refunded using the paycheck proceeds of the applicant on pay day. To qualify for this loan, the applicant only needs have a regular source of income, such as derived from employment, a bank account and a valid identification and residential address. This loan normally charges high interest rates as it is unsecured and does not undertake any credit history checks.

Most loans require that the applicant has favorable credit ratings. This means that the borrower has a history of paying back any loans or credit advanced to them. Many financial institutions shun people with bad credit ratings. The reason is simple. The bank or other lending firm doe not want to lend its finances to people who might not be willing to pay it back. Having a good credit report is absolutely important when it comes to borrowing a loan.

Another important factor that is beneficial when asking to take out a loan is having a job or other source of regular income. A regular source of income basically guarantees the lender of the borrower’s ability to repay the loan, including other charges, fees and interests. Employed people, business owners and others with a regular source of income all stand a good chance of borrowing from financial institutions.

Having equity, assets, property or large amounts of cash and other liquid assets will stand a person in good stead when it comes to borrowing. Banks and other lenders will look favorably at people who own such assets. This is is good for two reasons. Assets may be required to act as collateral for the loan. Most lenders usually prefer assets as security for loans. Owning assets is therefore, very important when it comes to borrowing loans from financial institutions.

Holders of credit cards may want to pay off the balance on their credit cards before applying for loans. This is because this will improve their credit ratings and improve their credibility in the eyes of banks. People with good credit ratings can borrow larger amounts at lower interest rates.

Finally, lenders may also look positively towards people in stable families. For example, a married person is considered more responsible and is more likely to repay a loan granted to them than their unmarried counterparts.

Equipment Lease In Australia

There are many choices in commercial equipment finance in Australia. A preference today can be to enter an equipment lease contract. A Car lease and equipment leasing are more or less similar to each other. If the business survives and flourishes, the company will always have the option of buying the equipment once they are done with the loan. However, there are certain basic points that one must always keep in mind while entering equipment lease contracts.

When it comes to equipment leasing, your responsibilities will be a lot more than the leaser, whose responsibilities end with his just signing the contract. You must make sure that you will successfully be able to fulfill all your responsibilities, as from then on, you will have to do almost everything starting from taking good care of the equipment, paying the lease contract every month, and even the insurance and rental fees on certain occasions.

If you are a company the directors might also be required to be guarantor when it comes to the equipment lease contract. This is done by the leasing companies in order to ensure the safety of the equipment being leased out. In case any damage is done to the equipment or the loan is not repaid, the guarantor will also be answerable to them in that case.

As long as you are in charge of the machinery, expenses will not at all be incurred on the part of the real owner. That is why equipment lease contracts are also called triple-net contracts, since the consumer has to undertake the responsibilities of equipment maintenance, liability and casualty insurances and the payment of taxes associated to it.

When the hell-or-high water clause is present on the lease contract, it means the consumer is bound to pay the rent as long as the lease lasts, irrespective of any kind of external event that affects either the equipment or the contract itself. If there are any claims to be made against the leasing company, it is regarded as something for which legal steps need to be taken separately.

Once the equipment lease contracts end, normally the lease agreement asks to buy the equipment at the residual One can also renew the contract. However, establishment fees can be charged and is subject to the lenders approval.