Tag Archives: personal
Personal Loans
If you think yourself to be in the midst of those borrowers who enjoy their life by gratifying their demands and requirements at easy rates, then you ought to ascertain that you are get the best personal loan for yourself. These loans are effortlessly available. Thanks to internet!! These loans are available even if you have a poor credit rating. Such loans can be:
Secured
Unsecured
Bad credit can be pretty aching. Now with the availability of instant lenders in the loan market, the whole situation of these loans search has changed. Immediate or we can say on line lenders assist the borrowers to look for the best loan at the viable cost to comply with their needs and pocket.
Gone are the days when borrowers with sound credit history used to enjoy a variety of striking loan opportunities. But these days the borrowers with their poor credit history like CCJs, bankrupts, defaulters or arrears holders can also benefit form these loans.
And usually it so used to happen that the bad credit borrower had to pay a high rate of interest as compared to good credit borrower. But now, due to cut throat competition in the market, bad creditors also can get the loan at a lower interest rate and larger repayment tenure. These loans can be used for the following purposes: Debt consolidation, holiday, learning, Car purchase, wedding ceremony, home renovation etc.
When we talk about the secured personal loans, it is to say that the borrower has to mortgage some security like house, patent, ornaments, vehicle etc. against the loaned amount. The loan amount for secured personal loan depends on the price of the collateral. Generally the amount of the loan ranges from £ 5000- £ 75 000 and the time period ranges from 5 to 25 years.
While on the other hand when we talk about unsecured personal loans, it suggests that the loan can be borrowed without placing any asset as collateral. However, due to nonexistence of security the interest paid by you is comparatively high. But, after finding a good lender, you can grab unsecured personal loan at lower interest rate.
These loans thus:
* Have comfortable reimbursement options
* Easy approval
* Comparatively lower interest rates
* Secured loans for any personal use
* Unsecured loans for any personal use
* No poor credit problems
How to Borrow Money, Part 2
Debt Financing
Debt financing means borrowing money that must be paid back over a period of time, usually with interest. It can be a short-term: less than a year and a long-term more that a year. You do not relinquish any ownership rights by taking a loan and limited by obligation of paying a loan back with interest. This is why loan for new businesses usually secured by one or more of the following: owners personal guarantee, real estate, company assets, etc.
The disadvantage comparing to the equity financing is that you must make scheduled payments regardless of your companys financial situation.
Debt sources can be divided into two groups: non-professional such us relatives, friends, and employees, etc. and professional such as banks, credit unions, etc.
Financial Institutions, by themselves, traditionally provide short term financing for small and mid size businesses: line of credit, equipment loan, etc. Long term loans in many cases guaranteed by the Small Business Administration loan program that helps leverage out risk for financial institutions.
There are some pros and cons in both Equity and Debt Financing. The best capital structure will depend on many different factors. For more sophisticated cases I suggest to hire a seasoned Financial Consultant.
Points the borrower usually evaluates before you giving the money:
1. How good is your credit history
2. Do you a solid collateral
3. Will you be able to repay the loan
4. Does your management team have enough management experience
Your personal financial situation while starting a business
It is always a good idea to build your personal credit history. In the beginning your business does not have any credit history and lender will use your personal data to evaluate a loan terms. Order you personal report to see where you stand and check it for any unexpected errors.
Work with your personal budget. You need to understand that usually you will not be able to take any cash from new business for a while. Make sure that you have enough money to start you business venture and enough money to pay you bills until business will become cash producing.
Put together projections and classify your future business expenses. Some of the expenses will be one-time costs such as the fee for incorporating your business; some will be ongoing such as inventory, insurance, etc.
There are two types of expenses: variable such as inventory, sales commission, etc. and fixed such as rent, utilities, etc. If you feel that you do not have enough expertise to do budgeting and forecasting it might be a good idea to hire a professional to do that.
Yury Iofe, MBA
Universal Business Structured Solution
More educational resources by Yury Iofe:
www.ubssolution.com