Basic Steps to Take to Obtain a Secured Loan

When a person applies for a secured loan, he is seeking financing by securing his personal assets against the loan as collateral. Secured loans provide the lender with a certain degree of security if, in the event of default, the banker has something to collect from the individual. The collateral is generally some form of major asset such as a house, car, or major jewelry. The key to the collateral is that it needs to be worth something, and be a true asset. For example, if there are payments still due on a car, the customer does not own it outright and may not be able to use it for collateral. There are several issues a customer needs to understand before securing a secured loan. You will need to know what financial information your lender will need, what financer to go to, and how to take up this form of financing.
Secured loans can be utilized for various different purposes, and what you need financing for may determine if you qualify for a personal loan. If you need capital for a large business venture, you will be better off getting a business agreement as opposed to a secured personal loan. Most beginning ventures are considered unstable by banks and your contract will need to be more specialized than a secured loan. For smaller expenses such as a wedding or vacation, secured loans will be able to provide an appropriate funding source. This is because these are debts or expenses that are seen to be more stable by the bank in question and thus, much easier to repay. You will need to make a list of every expense you expect your financing to over so that you will get enough financing to cover your entire need.

The next step you need to take is to determine if you are an appropriate customer for this kind of financing. What will make you a good candidate will be if you even have collateral to secure against the loan. If you do not, see if you can get an unsecured source of financing. Secured loans by their nature are only suited for those with collateral. They are also good sources of financing for those that already have a good credit rating with their finances. Your lender wants to be secure in their lending to you and they want to take the littlest possible amount of risks.

Once you have determined what kind of funding is best suited for you, you can then start comparison shopping for the best lender for you. Secured loans are available through many different means, and it is important that you take your time with your research. There are enough resources in both the real world and on the Internet that you will not have trouble in finding a suitable loan package.

Generations ago there was the philosophy that if you could not pay for something, you could not buy it. Now with the flexibility of secured loans, making larger investments in a more facile manner.

Secured Loans : Knowing Where to Get the Right One for You

Generally, when looking for a secured loan, there are two main options. The first is you could choose an independent loan company and the second is that you can choose your local bank. So, just how do you know where to get your loan and what are the advantages and disadvantages to both options?
Secured Loans and the Bank

Many people like to get their financial help from their bank because it is a place that they trust and they would be dealing with the same people as they are dealing with already. Some people also think that secured loans from the bank are a lot cheaper because that is what their banks tell them.

However, the unfortunate thing about many banks is that the interest rates on their secured loans are not always the cheapest around. In fact, banks do tend to charge higher interest rates than most independent companies and that means that you are definitely not getting the best deal on your loan.

So, whilst banks do offer good deals, they are usually higher than many independent loan companies. Trust is also an issue for many people and, yes, you may be able to currently trust your bank. But if you get a loan from them, you could discover that they can turn quite nasty, especially when it comes to problems with repayments!

Overall, banks can be good ways of lending money as they already know who you are and they can give you money sometimes the same day that you apply for the loan. However, they can be fairly harsh when it comes to problems with repayments and charges are usually higher than with most independent companies.

Secured Loans and Independent Companies

Independent companies are generally the most popular choice when it comes to secured loans. There are so many different companies available and a quick online search will show hundreds of companies all willing to offer you a secured loan.

One of the biggest advantages to getting a loan from an independent company is the fact that you can get fairly cheap interest rates. You can even compare various companies online through a simple comparison site and you will see exactly which company is the cheapest to suit your secured loan needs.

The only real downfall with independent companies is that they may not all be completely honest and trustworthy. Many loan companies are harsh and they do not have your best interests in mind. So, in order to find a good company for you, you will need to do as much research as possible and try and opt for some of the more recognised companies if possible.

There are advantages and disadvantages to getting a secured loan through either a bank or an independent loan company within the UK. Just make sure that you know the differences and that you shop around before applying for anything to ensure that you are getting the right deal for you.

Understanding Mortgage Basics

Being able to buy that house you have always wanted probably means that you will need to get a mortgage. Another word for a mortgage is loan - which you usually get from a bank or other lending agency. Since most people are not able to buy their house with cash, a loan is the most common practice. Here are some things to help you understand mortgage basics.
Length Of The Mortgage

The size of a mortgage makes the length necessarily longer. Common lengths of mortgages can fall anywhere between ten and thirty years. This means, that if you pay according to the terms of the mortgage, that you will have it entirely paid off at the end of that time. Generally, the lower amount of payment you can afford, the longer the time you will need to pay off the mortgage.

Interest On A Mortgage

The interest rates on buying a house or property change every day - sometimes even more than once a day. It depends on the economy, and the area you live in. You need to shop around and get the lowest amount of interest that you can because even one percent over 30 years means a difference of over tens of thousands of dollars.

Two Types Of Mortgages

All mortgages will fall into one of two types. It will be either a fixed rate mortgage, or an adjustable rate mortgage. The fixed rate mortgage is one where the interest and payment amounts are "fixed." That means it is always the same until the mortgage is paid in full. The other, an adjustable rate mortgage, is, like the name implies - adjustable. That means that the amount of your payments changes in an unpredictable way - according to the economy. If the economy is doing well, then your interest rates on the mortgage are lower - and so are your payments. But remember, it may cover a thirty-year period. No one can see that far ahead. A bad economy also means that your payments can become very high - maybe even too high. These are excellent when the economy is doing well, but you may need to get another mortgage if the economy goes bad.

Paying Off The Mortgage

The best type of mortgage will enable you to increase your payments, or make additional payments in order to reduce the amount you owe. This means that you will be able to pay off the mortgage early, and save a lot of money. Most mortgages, however, have clauses in them that will limit how much you can pay extra each year, or may not allow it at all. You may need to negotiate with the lender in order to get this put in the agreement.

When going for your mortgage, the best thing you can do to help yourself is to understand as much as possible about mortgages. Then, with that knowledge, shop around and get online quotes so you can compare various offers in order to get the best deal.

How To Get Finances To Fix Up Your Home

What's a person to do when faced with the daunting task of getting the funds to renovate a home?
If you are a risk taker and you have decided that you want to start fixing up homes to flip then you need to know where to get the money. Money is a much needed resource that you have to have at your disposal if you want to be able to fix the home up right and make tons of cash on it at closing time. Keep in mind that you need a lot and it needs to be enough to get the whole job done. You do not want to run out halfway through the remodeling. You want to be able to finish and still hopefully have some left over. So where can this magical money come from?

Here are some of the more common ways that people use to fund their fixer upper home project:

Savings and investments
If you have been thinking about taking this step for a long time then perhaps you started saving. If you have you can use any savings and investments that you have to pay for the remodel of this home. If we are talking about your life savings, the money you have socked away for retirement then you should probably move onto a different solution. It is better to not risk your future in such a big way as to spend all of your retirement money.

Bank loan
Most people try to get a bank loan to pay for their new project. If you have good credit and some equity in your home then you will probably not have too much of a problem getting this kind of loan. The interest can be high and it can take a long time for the loan to come through though. It is worth checking out other types of loans as well before you sign anything.

Online loan
Online loans are getting to be more and more popular all of the time. These loans are easier to get than bank loans as the guidelines are much less strict. You can also get these loans quickly, often within three days or less. When shopping for an online loan you can also find many companies willing to offer you instant quotes.

Before you buy the home in question find out how much it is going to cost you in terms of repairs. Get an expert in if you have to. This way you will know just how much you can afford to spend on the purchase of the house. Planning your finances carefully like this is going to mean the difference between getting an amazing return on your money and getting diddly squat. So prepare and make sure that you have all of your bases covered.

How To Benefit From Asset Based Lending

Asset Based Lending refers to loans secured by any collateral security such as account receivables, inventory, and other assets in balance sheets. Synonyms for this type of loan are commercial financing and asset based financing. Most of the time, these loans are used to satisfy the cash flow requirements of the company.
Lower Rate of Interest
This type of lending has several advantages. The biggest advantage is it has less rate of interest when compared with an unsecured loan. Lower interest rates are due to the lender's money always being safe. In case of a default by the borrower, the lender can recoup the money by seizing the assets.

It is ideal for financial expansion. Some other purposes for which one can use it are management buy-outs and buy-ins, business acquisitions and mergers, refinancing existing business loans, and turnaround financing. The borrowing base determines the highest amount one can borrow. The latest applicable rates of liquidation, value of inventory, accounts receivables, and fixed assets determine the borrowing base. You can obtain revolving credit and term loans against the security of these assets.

You may get term loans up to 40 percent of the total value of the assets. The term loan ends in 5 to 15 years depending on the life of assets. Several features distinguish it from traditional commercial financing. Asset based lending concentrates more on collateral and liquidity. Cash flow and leverage come second in the priority list. This provides more liquidity to the borrower while requiring less formal financial agreements.

In today's competitive market conditions every business needs resources to survive. With a lack of sufficient resources, a company heading towards growth and a successful future may face major setbacks and failure. This type of lending comes to your aid and can provide enough resources. Many seasoned financial executives are opting for these loans because they are more versatile, cost competitive, and flexible than other debt instruments. However, many people still have the misconception that they should be used as only a last resort because they are expensive and require more reporting. In fact the opposite is true. These loans can help in every stage of business by making operations more flexible. As far as the burden of reporting is concerned, the ubiquitous computers have made it easier than at any other point of time in the past.

Factors Affecting The Market
Here are three main factors affecting the asset based loan market.

1. Drawbacks in the strategies of cash flow loan providers.

2. An economic slowdown.

3. Steadiness and competitiveness of asset based lending.

Additional Help
There are online consulting firms that specialize in asset based lending. Also there is software, which can help your company to stay on track and be a legitimate corporation.

The Basics Of The Home Improvement Loan

It is a fact that home improvement loans are usually taken out for making a home larger or adding value to it. This may be done by adding rooms or bathrooms, building a swimming pool, enclosing a porch or patio, updating the plumbing and repainting the homes exterior and or interior. Generally, it is cheaper to extend or repair a home than to buy or build a new house.
Before going ahead and getting a home improvement loan, it is advisable to contact your local builder and get a quote and any other information about the associated costs involved in improving your home. Dont be afraid to get as many quotes on building costs and improvement home loans as possible.

Make sure that when you speak to the lending institutions, ask if you can borrow money above the quoted price for the home improvement. Often, when building, extra costs seem to come out of the woodwork unexpectedly. It is better to borrow a few dollars extra and not need it, than have to contact the bank for an extension on your credit in the middle of a project.

The ideal home improvement loan to look for is one that has a low interest rate. Visit many different lending institutions and see what they are offering. Dont just commit yourself to the first home improvement loan that comes along. Home improvement loans are usually short- term loans.

A home improvement loans rate of interest is determined by the amount of collateral that the borrower has. This is most often the equity in your home. If the borrower has a bad credit rating, the home improvement loan will probably be calculated at a higher rate.

The rate of interest, loan amount offered to you by the bank and the term of the loan will often have a lot to do with the market value of the home or the value of the collateral. The lending institution will often ask what type of home improvement you are planning. A market appraisal may be needed before the loan is passed. This is often to ensure that the improvements will add value to the home. They may also ask you to provide quotes from builders or contractors that you may be using for the home improvements.

Home improvement loans usually require the borrower to only pay the interest while the home is being improved. Once the home improvements have been completed, the borrower will be required to make full monthly payments on the principle and interest. The monthly payments will be calculated on the amount of money used for the home improvements, the interest rates and the term or number of years you have to pay off the loan.

If you are unsure of any of the details and/or term of the home improvement loan, make sure that you discuss your concerns with the institutions lending consultant. A good lending institution will be very happy to address any questions or concerns that you may have. Make a list of anything you can think of to ask the loan officer you speak with.

How To Benefit From Asset Based Lending

Asset Based Lending refers to loans secured by any collateral security such as account receivables, inventory, and other assets in balance sheets. Synonyms for this type of loan are commercial financing and asset based financing. Most of the time, these loans are used to satisfy the cash flow requirements of the company.
Lower Rate of Interest
This type of lending has several advantages. The biggest advantage is it has less rate of interest when compared with an unsecured loan. Lower interest rates are due to the lender's money always being safe. In case of a default by the borrower, the lender can recoup the money by seizing the assets.

It is ideal for financial expansion. Some other purposes for which one can use it are management buy-outs and buy-ins, business acquisitions and mergers, refinancing existing business loans, and turnaround financing. The borrowing base determines the highest amount one can borrow. The latest applicable rates of liquidation, value of inventory, accounts receivables, and fixed assets determine the borrowing base. You can obtain revolving credit and term loans against the security of these assets.

You may get term loans up to 40 percent of the total value of the assets. The term loan ends in 5 to 15 years depending on the life of assets. Several features distinguish it from traditional commercial financing. Asset based lending concentrates more on collateral and liquidity. Cash flow and leverage come second in the priority list. This provides more liquidity to the borrower while requiring less formal financial agreements.

In today's competitive market conditions every business needs resources to survive. With a lack of sufficient resources, a company heading towards growth and a successful future may face major setbacks and failure. This type of lending comes to your aid and can provide enough resources. Many seasoned financial executives are opting for these loans because they are more versatile, cost competitive, and flexible than other debt instruments. However, many people still have the misconception that they should be used as only a last resort because they are expensive and require more reporting. In fact the opposite is true. These loans can help in every stage of business by making operations more flexible. As far as the burden of reporting is concerned, the ubiquitous computers have made it easier than at any other point of time in the past.

Personal Loans: What Type Is Right for You?

There are many different types of personal loans. The type you decide to use will depend on your credit situation and individual preference. Below is a short overview of the four most popular types of personal loans and how they can help you.
Line of Credit (LOC) Personal Loans

A LOC is where a bank approves you for a loan that you can use as you need to. This way whenever you need a loan, the approval will already be there waiting for you. Furthermore, you can borrow against the LOC -- without having to fill out another application and go through another credit review -- until you reach the limit. So, you can apply for a $10,000 LOC in July, use $2,500 of it in August, $5,000 in September, and $2,500 in April instead of applying for three separate loans. You are free to use all or none of the line.

Debt Consolidation Personal Loans

A debt consolidation personal loan allows you to take out a loan to consolidate your current bills. This is a popular way for consumers who have too much outstanding debt on several cards to get all of their debt under one lower interest rate, deal with only one monthly payment, and free up their revolving lines. A debt consolidation loan is good for anyone who wants to accomplish any of these three goals. Remember, however, don't free up your revolving lines just to dig yourself further into debt. If you are having money mismanagement issues, it is better to consolidate your debt with a non-profit credit counseling service.

Person-to-Person Loans

Having trouble getting a personal loan through a bank or think that you are being offered an unfair interest rate? The world of person-to-person lending may open a new door for you. Person-to-person lending is just like asking someone you know for a loan, who also has the ability to lend like a bank. It is strangers lending to strangers with an interest rate, minimum monthly payment, fixed terms, and access to collection assistance just like a bank. The difference is that, unlike a bank, a person who is lending to you has the opportunity to hear your story and decide whether you are worthy of a loan or a lower interest rate -- no matter what your credit score says. There are only one or two places so far where you can do this, but the popularity of these person-to-person lending marketplaces has grown considerably with both borrowers AND lenders.

'Finance' Company Personal Loans

'Finance' companies specialize in lending to those who are high-risk. These loans often have very unfavorable interest rates, fees, and loan amounts. They are also looked down upon by your FICO credit score (although this may soon change) and other lenders (major banks in particular). Payday loan companies, title loan companies, and sub-prime personal loan companies would all fall into this category. These are only good for those who need a small emergency loan that they can pay back quickly to a company who does not report to credit reporting agencies as long as the loan is paid within terms.

No matter what you plan to use your personal loan for, make sure that you get a decent deal so that you are not paying more than you need to. Also, make sure you know your credit scores and what kind of interest rate you should expect to be offered with those scores.

Pay Day Loans - Loan Sharking Reinvented.

We see advertisements for quick cash loans every day. "Need quick cash? Want a loan on your paycheck? Need to pay some bills and get creditors off your back?" These loans can be pay day loans, cash advance loans, check advance loans, post-dated check loans or deferred deposit check loans. Typically the borrower rights out a check for the amount of the loan plus a fee (not post dated as that is illegal). This fee can range from 10% to 40% of the loan and the borrower usually has two weeks to pay it off in full. Most can't pay it off in time and end up owing, in some cases, more in fees than the amount of the original loan.
Some states like South Carolina have placed limits on the fee amount allowed. South Carolina law limits this fee to 15% of the amount borrowed. If you were to look at this in a yearly APR it would be 390% interest. Most states have usury laws which limit a yearly rate to 30% or under on most loans. Currently Pay Day stores slip by by stating that loans are paid off in 2 weeks so no violation has occurred and that they are providing a much needed service to people that have no where else to go.

The actuality is that most of these borrowers cannot repay on time and so they are forced to pay the interest and take out another loan to cover the principle. And they pay dearly for this. Currently the average borrower in South Carolina takes 10-15 loans to payoff their original loan amount. These statistics are similar in most other states. Which means the borrower will pay $400 - $500 in loan fees on a $400 loan. This is absurd usury and should be illegal as it is not helping anyone except the lender. It is predatory lending at best that just gets borrowers in deeper debt than before.

"Some will say, that little man has to have somewhere to go," said state Rep. Eldridge Emory, "Butif he gets money this way, he's just digging a hole deeper and deeper, and he's not going to get out."

Several states like North Carolina have currently banned this form of predatory lending. Pay Day and similar quick cash loan schemes are not allowed in North Carolina. Other states are beginning to consider legislation and to put laws in place that will further control and possibly even curb pay day loans altogether. Still more needs to be done. Pay day lending companies have high dollar lawyers and are probably lobbying your state politicians right now to protect their interests. If enough people complain the states will all have to do something about this predatory form of lending.

24 Hour No Credit Check Loans: Are They Really Available?

Yes! 24 hour no credit check loans are really available. And they are available to just about anybody who applies for them. This may seem unbelievable to some people that there are lenders out there that are willing to approve unsecured loans for people who possibly have a bad credit rating. But this really is the case.
If you are someone looking to apply for a fast loan and have a poor credit rating then 24 hour no credit check loans can be a solution for you. Now whilst I say that, don't get fooled into thinking that just because this type of loan is easy to get that it doesn't have its down side. You must do your homework first!

By this I mean that you must first compare all the lending institutions out there that offer this easy to get type of finance. Because these lenders are willing to approve finance to people with no credit checks they will no doubt charge very high interest rates along with high application fees.

This may not be a problem for you if you have a good income coming in but for many people in need of fast cash it isn't the case. No matter what type of loan you are approved for and no matter who you lender is you still have to be able to pay back those regular payments. Not only be able to pay back the payments but also pay them back by the due date.

If you do not do this then you can find yourself in a lot of trouble. So think carefully before you jump into any offer!

There are loads of online lending institutions that offer 24 hour no credit check loans so there is no excuse not to do some comparative homework. It really doesn't take up much of your time to check out what is on offer. In the end you will be happier that you did.

Things To Consider When Money Lending

Most of us have done it at one time or another: lent money to a friend or family member. The loan is usually done in order to help a loved one meet a goal or to take care of a pressing need. We choose money lending because we want to help. Unfortunately, all too often extending a personal loan can lead to a negative situation. Here are a few points to consider when you are faced with the possibility of floating a personal loan to someone you care about.
The thing about money lending is that the recipient obviously does not have the resources at hand to effectively take care of the matter at hand. That is why you have been approached about the personal loan. It is important that you have an informed understanding about the ability of the recipient to be able to repay the loan within a reasonable amount of time. The repayment schedule should be discussed in detail and the terms of repayment should be perfectly clear to both parties. This is done so that the transaction can be done according to perimeters that both you and the recipient feel confident can be met in a timely manner.

While you may feel that asking for some sort of documentation of the loan and the agreement to repay is not appropriate to the circumstances, it is important to remember that you are making a financial transaction. The documents are meant to protect both the lender and the receiver. They should spell out in detail the amount that is being loaned, and the terms for repayment, including any late fees that may apply. If your loved one balks at this type of arrangement, you can take this as a warning sign that you should think long and hard before going through with the loan.

It is also important to consider your own circumstances before agreeing to money lending. Can you afford to make the loan without creating any financial problems for you and your family? Your first responsibility is to your own obligations, then using any surplus you may have to help those around you. Make sure that by extending a personal loan that you will not soon find yourself in need of a loan as well.

In conclusion, ask yourself one key question: if the personal loan cannot be repaid on time, or perhaps not at all, how will that affect the relationship? Money has been the downfall of many a marriage and friendship. If the relationship you share with the recipient is something that you want to preserve, than extending a personal loan must be something you do with the conviction that if the loan cannot be repaid that you will not allow that fact to create negative feelings toward that person. Just be very sure you can really follow through with that resolve before extending the loan.

Money Lending to help out a loved one is a generous gesture. Make sure your gesture does not lead to hard feelings should an unexpected obstacle come along.