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Benefits from Small Business Credit Cards

Imagine hiring an accounts keeping agent for free for your small business. This is what small business credit card does for you indirectly. However, this is not the only benefit. There are a lot of other benefits too. It’s for these benefits that the small business credit cards have gained the status of a necessity today. Let’s see what these benefits are.

1. Auto-segregation of business expenses

This is the most important benefit from using a small business credit card. You just have to ensure that you make all your business payments using your small business credit card and your monthly credit card statement will clearly and accurately reflect all your business expenses. You can use this further for accounting purposes or business planning.

2. Rolling credit

Small businesses, as any business, incur expenditures first and earnings later e.g. a business might need to make purchases, pay their staff, incur maintenance costs etc, all towards building a product or providing services to their clients. The client is, of course, going to make payments. However, there is a time lag between these expenditures and earning. A small business credit card allows you to roll-over the credit i.e. you can pay for your expense using your credit card especially when you are expecting the client to pay in a month or so. This way you are rolling-over the credit to your small business credit card supplier. Thus the money to fund those expenses doesn’t come from your cash account

3. Emergency help

This is something which every small business requires. Small businesses experience crests and troughs. You never know when an immediate need for money might arise (on account of new purchases etc for a new project). More importantly, such a need generally arises from more/new business and you would surely not want this good news to be transformed into bad news. In such situations, a small business credit card can become really handy and bail you out.

4. Rewards

As with personal credit cards, the small business credit cards too have membership rewards. When choosing a small business credit card, this factor should also be given proper importance. Based on the requirements of your business, the rewards program of one credit card might suit you better than that of another credit card e.g. if your business involves a lot of air travel, a credit card offered by an airlines might give you additional benefits in terms of how fast and how much award points you earn. You can then barter these points for other benefits or products.

5. Other benefits

There are a lot of other benefits too which apply to small business credit cards. Though some of them are similar to what you have for personal credit cards, the ones for small business credit cards generally have something extra with them. These benefits include: cash back option, discounts on certain merchandise, free travel insurance, free baggage protection, discounts on hotels and rental cars and many more. Again, since these vary from company to company, you might as well look for these when choosing a small business credit card for your business.

With so many benefits, small business credit cards are really indispensable and demand attention.

Learning Quick Payday Loans

One of the main benefits of a loan that must be paid at the time of your next salary is that payday loans fast growth to be obtainable. You need to meet a few specifications. This reality is reflected in the massive variety of lenders, new loan lenders and those who are well established, of no faxing documents and no credit check payday loans. This is what makes both the speed attainable and inevitable.

However, you may wonder what makes it feasible for it without credit check and no faxing of critical documents. In fact, the documents are not exchanged in any other way either. Properly, that is because there is only few that a lender has to know.

All they need to know is that the person or the borrower will be able to repay the money. Actually, that is all the lender’s requirements wanted to know, and as long as they know this, then they can make the loan. As an unsecured payday loan always going to be and often ought to be paid early next month, assuming it is when the check is paid, all you need to know is that your paycheck is coming. So all they need to do is to ask you whether your paycheck is coming or not it, they also need to know that the one who is requesting this loan has a job. Over that, all they need to know is that you pay every month. If they know all of that, then they can approve your loan.

Reasons to apply a quick payday loans

You may be curious to know exactly why somebody might need to receive this scheme. There are lots of reasons and it is feasible.

Just understand that there is nothing wrong with you in case you feel you need to receive a payday loan quickly. That is why the service is available to people like you – to help in a time of short-term financial difficulties.

Say you have some emergency automobile repairs that arose unexpectedly, or perhaps you have a brand new infant coming. These sudden changes in your financial life may cause short-term financial difficulties together with your every month money flow. This might mean that you ought to have more expenses than expected.

Other reasons may include investing in a new business or to keep up with their every day bills. Some people need to receive a loan only one time – in which other people may need to make use of this service a couple of times. It is up to you and depends on your individual financial situation perhaps.

You may wonder in case you are the type of person eligible for a quick payday loan. Well, in case you have a job and pay day comes, you are probably eligible for this service. You can count on being able to make use of your next pay check to help make ends meet temporarily. Make sure you can pay your expenses after your next payday comes, so do not finish up getting of it often.

Stated Income Commercial Loans, Pros and Cons

Stated income commercial loans have been a decent option for borrowers that do not show enough income on their tax returns to qualify for bank financing. These loan programs allow the borrower to “state” both their personal and business income, though the level of documentation varies from one lender to the next. In addition stated income commercial loans can be especially attractive to businesses with a cash component (like restaurants, automotive repair, etc) that enables them to get long term fixed rate financing with higher leverage and longer amortization periods than normal.

As mentioned, the level of “stated” varies from one lender to the next. For example, on investment properties some lenders would still ask for all leases, rent rolls, year to date financials, personal financial statements, etc. but would not ask for personal tax returns and or real estate entity tax returns. On owner occupant transactions, business tax returns may not be required though personal tax return would be as well as, proof of insurance, copy of existing mortgage statement, would still be required. There are a few lenders out there that design the loans to be more as the name implies, and require virtually no documentation, though the borrower pays for this in the rate and prepayment penalties. In general the less documentation asked for, the more expensive the transaction for the borrower.

Positive aspects

Amortization schedules of 30 years are not uncommon. Compared to the typical bank loan at a 20 year schedule this saves the borrower cash flow by spreading out the loan. Fixed periods comparable to residential loans, like 30 years, 15, 10 and 5 are often available. In contrast most bank loans do not go beyond 5 year fixed sometimes 7 years but that is rare.

There is a harsh provision in most bank loan documents. It’s referred to as the “call provision”. It gives the bank the right to call due the borrower’s loan whenever and for whatever reason the bank feels justified – even if the borrower is not in default on their loan. Although hard to believe this clause is in virtually every bank mortgage. In short it helps the bank protect their investment and allows them to “pull out” if they lose confidence in the borrower’s ability to keep the business going/paying their loan. This clause not included in stated income loans.

No reporting to the stated income lenders after the loan closes. This ties into the above, as most banks will require monthly or quarterly statements. If from the financials they see a negative trend they hold the right to call the note or change the terms of the deal.
Negative Aspects

The two obvious negative features of these loan programs include higher rates and expensive prepayment penalties. Rates are normally app. 2% above comparable banks rates though exceptions can go in both directions. A few lenders are closer to roughly 1% over and with the longer amortization schedule the borrower can enjoy a lower monthly payment when compared to bank financing. On the other side, the rate can be double digit for borrowers with poor credit and special use properties.

Prepayment penalties can be brutal with this loan. Typical bank pre-pays are often 3% for 3 years or an annual step down like 5%, 3% 1% as in the case of the SBA 7a loan. It’s not uncommon for the stated loan to be as high as 10% for 10 years. On top of that some lenders demand lock out periods of 3 to 5 years.

Borrowers should take their time evaluating their options, and pay attention that their planned holding period matches the fixed rate and prepayment penalty period. Also, this sector of the industry has been taking it on the “chin” with the credit crisis and the makeup of this loan program continues to evolve. Borrowers may want to look at the SBA 7a program as future income projection are allowed as well as DCR are low as 1.1 are permitted as well. Take your time and evaluate all your options as you do not want to make your situation worse by going with a stated income commercial loan that’s not a good fit for your situation.

Commercial Loans – Let Your Business Grow!

There are many loan agencies and financial institutions which specialise in arranging the commercial loans for the UK entrepreneurs. Since the loan taken for commercial purposes is a secured loan, a business can avail this loan easily by putting its property as security to access the cash that the business has been looking for.

A business can easily get a fast as well as cheap loan for commercial purposes by just completing an online form and providing details to meet its financial requirements. These details are required to verify the loan repayment ability of a borrower as well as to verify the credentials provided by him.

These financial requirements may relate to the expansion of a business or meeting the business expenses or to purchase an equipment/machinery. Whatever the need be, a business can easily get a commercial loan to sort its financial affairs.

The loan amount solely depends upon the market value of the property which is pledged as a security. In most of the cases, a business can easily get loan equivalent to 85 percent of the property’s market value.

How can a business get a good loan deal?

Since there are numerous loans and loan providers to choose from, any borrower (including the business) may be in doubt, when it comes to selection of a loan product. The present day loan market is full of loan offers and schemes and with the growing competition as well as the emergence of new market players, the modern day borrower is a happy customer.

It is highly essential and recommended that a business must perform a detailed market survey and look for “better” deal. Bargaining about the loan interest rate must be done and the aim must be to obtain a loan which has low interest rate. The loan must be taken only after taking the prior advice of a financial consultant as a wrong decision would mean serious monetary loss besides hurting the credibility of the business in the long run.

So if you are a business borrower looking for cheap secured loans, then there are enough resources for you to choose from in order to meet the commercial purpose needs.

After the loan amount has been released, it must be immediately used for the purpose it is meant for. The financial affairs of the business must be arranged in a manner so that there is no adverse impact of the loan on the business, as a whole.

If things are arranged in an effective manner, then the commercial loans can indeed turn the winds in the favour of the business. They can also help a business to sustain and ensure its growth in the short as well as the long run.

FAQ’s About PayDay Loans

This article deals with some frequently asked questions about payday loans that will give you a brief summary about these loans and will also put your doubts and queries to rest. It is important to understand though that this is not a solution to all your problems and you must use cash advances only as a backup plan and not as a way of easy cash.

Some FAQ’s

1. What is a cash advance or payday loan?

These loans are also known as micro loans and they are short term loans in which borrowings are available at a fixed rate and can be offered as an alternative to credit cards. You can apply for these loans from the privacy of your home and the money gets credited straight into your account. These loans can be used to make payments from day to day running costs and even avoid dishonour payments.

2. How does it work?

Once your loan gets approved your loan ranging from $150 to $750 (this may vary lender to lender) is electronically transferred to your checking account. All payments are online and the repayment is taken electronically from your account.

3. How much can I borrow?

Again this depends upon the lender but with some you can borrow $150 for your first online cash advance and up to $750 in the future depending upon the approval of your application.

4. Do I require any security or collateral?

No, you don’t require any security. As a part of the online application you authorise the lender to electronically transfer and deduct money at the time of repayment, much like your employer direct deposits money to your salary account.

5. What do I need to do to get a payday loan?

All you require is:

o Proof that you have been living in the same place of residency for a minimum of 4 months
o An account open for at least four months with no dishonoured payments
o A steady job making minimum $500 a week
o The income needs to be paid directly into your account
o There are no bankruptcy, judgements or adverse remarks on your credit reports
o Proof that you are a permanent resident of Australia or New Zealand
o You are above 18 years of age

6. Is my credit ranking checked?

Yes, your personal credit report will be checked as it is a part of the application process and different credit rating agencies are used.

7. When will I receive the funds?

This differs lender to lender, but in most cases once the application is approved the funds are electronically transferred to your nominated account. For first time borrowers, these funds are available in their account over night. Return customers are issued with a Financier Debit card which allows them access to the funds immediately upon approval. This debit card acts as an

EFTPOS card which can be used at all ATMs around Australia and over the counter where ever EFTPOS is available. Most Lenders do not operate over the weekends and public holidays so inquire before.

8. When do I repay?

Your due date to repay the amount plus fees is on your next payday. If you are paid weekly you can repay the loan over 6 weekly installments, if you are paid fortnightly you can repay the loan over 3 fortnights and if you are paid monthly you can repay over 2 months at no extra charge. Also, if you borrow less than 4 days from your next payday you will not be required to repay until the following payday.

9. What is the APR?

APR stands for Annual Percentage Rate which is described as the cost of the loan in annual terms. It is used by different financial service providers and companies and they document the percentage of principal paid in interest in 1 year.