Business loan: Do you know the three C’s that make up this loan?

Like any other loan application, when it comes to applying for a business loan there are certain factors you need to be aware of. Based on these factors your lender will determine how much of a risk you and your business are. In turn, you can gauge how much of risk level you possess and improve your chances of getting the right loan with the lowest rate possible.

These factors are mainly divided into three different C’s, namely, cash flow, collateral and credit score. Based on these factors your lender will calculate the perceived risk as well the terms of the loan. Given below is the detailed discussion of these factors and how you can make the most of it to get your loan for business:

Cash flow: Of all the C’s, Cash flow is the most influential and most dominant one.Lenders will first look and evaluate your business’s bank accounts when it comes to cash flow. Factors such as in and out cash flows, accounts receivable and credit card statements, in particular, will be taken into consideration. The information they will gain from the documents will be used as a reference for your business loan application. One of the most common types of endorsing that lenders will go through is the account receivable in addition to the average daily balance, the volume of deposits in a month and the total amount of non – sufficient funds. Regarding cash flow, you should have a higher than average daily balance, larger number of deposits and lower number of NSF’s.

Collateral: Collateral in nothing but the asset you will provide as security when applying for a loan for business. In most cases, the collateral provided is the business itself. However, this depends on on the lender you will seeking compensation from. While some lenders will opt for tangible assets, others would also seek non – tangible assets. The longer the business had functioned, the more collateral value you, as an owner can gain. But it also depends on the size of your business.

Credit Score: Plenty loan applicants confuse the credit score between a personal one and a business one. But in truth, the business credit is rarely evaluated. Unless you, as an owner has been in business for more than five to six years, establishing a business credit, most lenders will look at the personal credit score. To a lender, a business owner’s personal record of financial management will be as important as their business’s record. They will perceive the creditworthiness as indicating of overall management and attention to every detail. If an owner cannot manage their finances correctly in the early stages, it can be clearly evident on the credit score.
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4factors to keep in mind to purchase a used car with a used car loan

Purchasing a car often indicates that you have reached somewhere financially in your life. In this case, you will have plenty of choices to consider. Additionally, you will also have a choice of opting for a brand new car or a used car.
Research has indicated that even though you can meet the expense of a new car, it is always best to go for a pre – owned car. So if you are planning to go for a used car, here are a few factors you need to bear in mind before you make the purchase:

Safety First: With a used car, you may be compromised on the kilometres the car may have travelled. However, you must not compromise on the safety features. Ensure that you do a detailed check to verify if the vehicle is up to mark, especially with the sturdiness of the body. Ensure it has the ability to respond to crashes and accidents. Once you have zeroed into a used car, ensure that you calculate the appropriate amount for the used car loan. If these factors are not up to the mark, re – calculate your loan to an amount that will allow you to purchase ad – on to improve the safety of the vehicle.

Look for the right size: The size of your car is another factor you need to keep track of. After all, you don’t want your family squeezed into a small car, or opt for one that is large, but economically a waste. Additionally, when considering the size of the car, it will also reflect on the used car loans. For familial uses, you can opt for a small hatchback. You can easily go for a bigger car when you know your needs, and your affordability would rise to a suitable value.

Keep track of the paperwork: Before you make the decision to purchase a car, you first need to check the original documentation and service records. You can request the owner of the car to hand over the car’s RTO tax receipts, insurance papers and the original purchase invoice. Additionally, don’t forget to obtain a finance NOC, especially if you are applying for a used car loan. Do check for the state where the car was registered. Look out a registration that indicated DRC, which means a Duplicate Registration Certificate, as it indicates a possible history of a misdemeanour.

Take a mechanic along for verification: You may have experience with an automobile, but a mechanic will get you a detailed insight into the conditions of the vehicle. A trusted mechanic’s judgement will assist you in your decision-making process, especially when it comes financing the purchase through used car loans. It won't matter if you’re purchasing the used car from a normal owner or even from a used auto dealership. All you need to ensure that your car is in top shape before it transferred to your ownership.

Car purchase: Why the end of the year is the perfect time purchase an automobile

If you are looking to purchase an automobile, you will be surprised to know that making a purchase at the right time will also go a long way to save you funds. While festive times are known to be the ideal time to make an automobile purchase, the end of the year is another time to purchase a car.

There is a reason to this statement. The final weeks of December are unique to the car business. Not only is it the end of the month, but it is also the end of the quarter, as well as the end of the year. This means, manufactures will be looking to boost their sales numbers, while dealers will be working extra hard to meet their quotas. It is during this time of the year, you will get access to the best incentives, such as low APR financing and cash back rebates. And this is not only restricted to the new car, but also the used car.

Here are few reasons as to why the end of the year may be a great time for you to make a car purchase with a loan:

Lenders are approving fewer bad credit card loans: According to the latest auto reports, lenders are reducing the amount of car loan approvals, with subprime credit. In other words, even if your credit score is at an acceptable score, you may not get and the approval for a car loan you want. This is because, lenders are tightening up on bad credit card loans. They are approving fewer loans, while ensuring that they are more careful about how these loans are being structured, while following stricter credit standards. So if you have the ideal credit score, you have a higher chance of being approved for the loan. You can even use the car loan calculator to calculate how much of a loan you can expect with your current credit score.

Interest rates are on the rise in the next year: While lenders may be tightening up the loan structures, interest rates tend to go on the rise. Even a 0.25% increase will go a long way to increase your loan repayment. Anytime the interest rates rises, consumers can expect lenders to raise the rates and charge their customers accordingly. However, the silver lining about this fact, is that the interest rates normally rise after the new years has passed. Therefore, this an ideal warning for those who want to opt for a car loan, to opt for a loan now and lock in the rates that are low. You can even use the car loan calculator to your advantage and see how much of the loan rates can benefit you.

Why should you opt to buy a new car with a car loan?

Purchasing a car comes with a choice of purchasing a new car or an old one. No doubt, purchasing a new car offers a bigger and better investment regarding money. With a new car, every aspect of the vehicle will be new, where automakers will use the latest advancements in technology and engineering.
A used car will offer a bigger gamble, on the other hand. Not only will it be a few years old, but it will also lack specific equipment which you would want in your new vehicle. No doubt, each type of car will offer you several benefits, but when it comes to purchasing an automobile with a car loan, you will need to make a decision based primarily on your financial requirements.

Here is what you can get from purchasing a new car, with an auto loan today:

Reliability: While the exteriors and interiors will always be the preference for most automobile shoppers, the second preference would be reliability. Not only is this an ideal option, but also a practical one, as a new car will be more reliable to a used car. The definition of reliability in a brand new car will include design, user experience and expectation of operation. It would also include downright component failure. In other words, a car owner will look for the most simple and least complex car as the best choice.

Safety: When it comes to safety, several car manufacturers have made it their priority. They have incorporated stringent safety standards, to ensure that only the best and safest cars are produced in the country. This includes government norms, crash test safety regulators and upgraded safety features. With a car loan, you can now purchase a car with the best of safety advantages compared to the used car.

Warranty: Most auto manufacturers used to lure customers with the promise of post-sales services such as warranty. In other words, if your car breaks down, or fails to work in terms of what the manufacturer offered, you can get it replaced, at no cost of your own funds. In addition to this, post-sale, there will be several reasons as to why you would want to purchase additional products or services, wherein which, the warranty will cover these additions at a smaller expenditure. All these expenditures are covered by the auto loan which makes it easier for you to manage it financially.

Fuel Economy: Most automobile manufacturers are now advancing their research and development, focusing on new cars to meet international standards. One of these standards includes returning a high mileage and cleaner fuel, for lesser or zero emission. In this case, several models are formed to include mild hybrids, a start/stop system, and cylinder deactivation technologies. It also includes lightweight materials and streamlined designs, which goes a long way to increasing the fuel efficiency of the car.
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Why opting for personal loan EMIs will minimize your financial risks

If you have any financial requirement, a loan will be the ideal option to satisfy it. In most cases, the personal loan proves to be the most appropriate choice, as it offers a financial flexibility as compared to other loan options. Not only can you use the funds from the loan for miscellaneous requirements, but you also have the financial flexibility to opt for a loan amount that will satisfy your requirement in a stress free manner.

However, like any other loan, you also need to also consider the repayment strategy. In addition to paying off the borrowed funds, you will also need to pay additional funds, such as the processing fee and the interest rate. Keeping all these factors in mind, you will need to ensure that you have sufficient funds to repay back the funds, without incurring additional debts. This is where the EMI’s come into place. With the right EMI amount, you can pay off the funds you need to, in a convenient manner, and yet enjoy the remainder of your income for other financial purposes.

By using the personal loan EMI calculator, you can calculate the ideal EMI amount that will help reduce any financial risks. Here is how it can benefit you:

You opt for interest rates that are flexible: One of the main concerns about the personal loan, is the interest rate. Since the personal loan is an unsecured loan, the interest rates tend to be high. This would mean high EMI’s and shorter tenures. However, you can always use the personal loan EMI calculator to calculate the ideal EMI’s that will not only suit your needs, but also ensure that you have sufficient funds remaining for other financial requirements.

You can make your budget less stressing during the repayment tenure: Paying off a loan, is as good as paying off a debt. However, you don’t have to make this debt into burden while compromising on your monthly expenditures. You only need to plan your budget in accordance with the tenure of the loan. This can be easily done with the EMI calculator for personal loan. While you can calculate the ideal amount with this calculator, it will also allow you to get an idea of how much of a tenure it will take to repay back the borrowed funds, along with additional expenditures. In this way, you can make your budget less stressful during the repayment tenure.

Protect your credit score in the long run: While the financial risks are high for any loan, including the personal loan, the first factor that will get affected is your credit score. Your credit score is one aspect that will affect further financial applications, especially if you will be applying for loans in the future. Why ensuring a fixed repayment budget, along with flexible loan rates, you can ensure that your credit score remains unaffected during the repayment tenure. At the same time, appropriate repayment in a timely fashion will help boost your score. Hence, using aEMI calculator for personal loanwill go a long way to protect your credit score and help improve it.
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Personal loans: Money making reasons why should you apply for one

Anytime a financial requirement arises, there are plenty options you can consider in order to appease this prerequisite. One of these options includes the loan. Under this category itself, there are plenty of loan options which you can opt for, one of which is the personal loan.

Unlike the other loans, the personal loan offers a financial flexibility for your requirements. In other words, you can use the funds from the loan for any miscellaneous option, with a few restrictions. Additionally you can easily apply for personal loan online without any stress and rush that comes with other loans. Here are some of the money making reasons as to why you should opt for this loan:

Paying down a higher interest debt: Everyone is bound to have one debt or another at some point in their lives. At this time, the amount of debts can overwhelm an individual. But by paying off multiple debts with a single amount can prove to be financially viable. For one, you would only need to focus on one debt instead of multiple ones. Debt consolidation will allow you to congregate multiple liabilities with several interest rates and repayment terms under one single roof. This will go a long way to pay down your debt, but also ease off some of your expenditures too. You can use the surplus expenditure to invest in other means to earn an extra income.

Pay off education expenses:If you are looking to further your education, a personal loan will be one of the best uses of your money. No doubt, your first thought would be to an education loan. However, this loan normally comes with certain restrictions and at times, will be larger than the personal loan amount itself. Additionally, with no credit history, you may not get the loan amount you would ideally want for your education expenses. At the same time, if you are earning and studying at the same time, you can utilize the time spent, by studying and earning at the same time. This will ensure that you get to earn the amount that you would have lost if you spent time only studying. Through this, you need not compromise on your financial expenditures and yet have sufficient funds to pay off a loan.

Flexible funding for your business:It is a common knowledge, that most business have a chance of failing within the first two years. Research has also indicated that it can stop functioning within the first 10 years. One of the main reasons for this failure is lack of cash flow. Finding funding for your business can be as challenging as starting your business itself. Not only would you need to wait for the ideal profit amount, a limited paper trail will make it difficult for start-ups to qualify for conventional business loans. But since you can easily apply for personal loan online there is no worry about the business’s current credit history before moving ahead to start your business.
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All you need to know about the different types of loans

Everyone understand the basics of a loan. Through this financial assistance, you can easily borrow funds you require and repay it back within a given time. However, there is more to this financial product than borrowing funds.

No doubt, you will be aware of the factors of the loan such as the interest rate and the tenure. But are you aware that the value of these elements differs from type to type? Additionally, some loans require a particular type of collateral, while others may not. Do you also know that some types of loans can only be used for particular reasons? Given below are some of the different type of bank loans which you need to know:
Secured Loans: A secured loan can be obtained by borrowing funds against an asset you own.

These assets form a collateral in your loan application. They can include your home, your vehicle and event your fixed deposits. The amount you received as a loan will depend on the value of the collateral. Additionally, since your providing collateral for security sake, the interest that is provided with the loan is low. With this, you can submit more than one collateral for certain types of loans. However, you should know that, if you ever default on your loans, your lender will get the borrowed funds back by foreclosing on the collaterals provided. But the best advantage of this type of financial assistance is the fact that you can use your credit score as a means to negotiate for a higher rate. The higher the score, the more of a bargaining power you will have, in terms of theloan amount and repayment tenure.

Given below are some of the instances of secured loans:

Car loans
Bike loans
Mortgages
Business loans

Unsecured Loans: Unsecured loans are a complete contrast to the secured loan. As the name suggests, they are not secured against any assets. They are also flexible in terms of using the finances gained for any miscellaneous financial expenditures, with a few exceptions. However, they are also difficult to apply for and maintain. This isdue to the fact that lenders will first confer your credit history along with your current income, asset and debts at the time of your loan application. Once your profile is deemed appropriate, you can get theloan you want. However, with these types of bank loans lenders will charge a higher interest rate, to compensate for the risks associated the lending of funds. Additionally, certain products will also have a short tenure.

Here are some of the examples of unsecured loans:
Personal loans
Personal lines of credit
Student loans
Banking cards and department sponsored cards.
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