When To Use A Business Loan Packager

Lenders are extremely busy and are often put off by loan requests riddled with errors and / or do not meet the basic standards of lending.

But small business borrowers with little knowledge of packaging loan requests can enhance their chances of getting funded through use of experienced loan packagers.

This is what Loan packagers do:

• Examine borrowing causes and clearly determine the borrowing need, thus eliminating vagueness and superfluous needs. Lenders are horrified by borrowers who request for loan amounts "out of the blues" based on nothing other than collateral value.

• Gather all the necessary documentation. Most borrowers are not aware of the loan documentation they need to provide to lenders. They spend weeks sending bits and pieces of information to lenders, thus agitating lenders and prolonging approval times.

• Analyze financial statements to ensure that the trends are right and all ratios make lending sense. If for example you revenues are declining, you must drill deep into the causes and mitigate them intelligently. Failure may lead to loan denial.

• Review Business and Finance Plans. Lenders have little or no time reviewing business and / or financial plans that don't make sense.

• Benchmark borrower business with industry peers. This helps in giving a lender the insights of the borrower's industry and how the borrower is performing compared to the industry. If the borrower's performance is not up to speed, then the borrower may want to undertake a business diagnosis test to identify the causes of poor performance.

• Match borrowing need with banks' lending criteria. Banks have different lending policies based on loan amount, sector, purpose, collateral, years in business etc. Borrowers spend endless days shopping for lenders only to be denied having had several of their credit reports pulled.

• Provide insights on questions to expect from lenders. Fussy or lazy lenders will deny a loan on a flimsy excuse, such as, 'the borrower does not maintain a budget' or 'the borrower is unaware of his average inventory carry' etc.

• Advise on loan structure and terms including interest rates. Loan structure is key to getting favorable loan terms. You need to understand when to apply for a line of credit, a seasonal line, a short term loan or a long term loan. Various loans have different interest rates.

The support offered by Loan Packagers justifies the fees charged because borrowers,

• Close their loans faster

• Get very competitive rates

• Get to know their business finances better

• Reduce cost of loan-shopping

• Save on the opportunity cost of delayed or denied loans

• Minimize the number of credit reports that banks pull

The cost of loan packaging varies widely depending on the type of services provided and the complexity of the loan package.

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Where to Get a Business Loan Online: Tips for Finding the Right Lender and Getting Flexible Terms

There are now many options for small and medium sized businesses for getting funding they need. If you're wondering where to get a business loan, your options are no longer limited to just banks and the SBA. Just check with some of the many alternative online lenders and funding solutions. The downside is that there are always scams and that you must always be very careful that you don't fall prey to cyber criminals.

Here are a few things to look for when evaluating the reliability of an online business loan:

• Check with the accreditation first. Make sure that any potential lender is accredited in the US. Read reviews as well from various sites and sources to find out what others are saying. If there any any complaints, try to find out if those complaints have been addressed and resolved. If there are too many negative reviews, it's best to stay away.

• Make sure that a lender you are considering offers the type of funding you need. An important part of knowing where to get a business loan is to have a financial plan in place. What do you need the funding for? Working capital? Equipment financing? Vendor financing? Have as detailed of a business plan as possible before applying.

• Check with the application process to find out how easy it will be to actually apply. Your chosen lender should not have a long, drawn-out, difficult application process. You shouldn't be required to turn over document after document after document. It should be clear from the start what documentation you will be expected to hand over.

What Else to Consider When Searching Where to Get a Business Loan Online

• Another thing the ideal lender should do is guarantee a speedy approval process and that you'll get the funding as quickly as possible. Some online lenders provide fast funding that takes no more than 24 hours. In contrast, some traditional banks can still take several weeks to give out the funding.

• Try to get flexible loan terms, if possible. There are a variety of flexible loan products offered by different lenders, whether you end up getting an unsecured loan, merchant cash advance, lines of credit, etc. Even if your credit scores aren't the greatest, you'll still want fair rates and reasonable repayment terms.

• While there are always crowd funding options, you'll really need to come up with a good marketing campaign that includes viral material if you want people to be interested enough in your message that they'll want to donate. This process can take a long time.

So, if you're still wondering " where to get a business loan ", just head to US Business Funding and look over all of their funding services and loan products. The application process is fast and easy.

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What Are Qualifications for a Business Loan

Do you have a business or would you like to start a business? The main reason most business fail is they lack access to adequate funding for their business. These are the criteria necessary to qualify for a business loan. If you meet all the guidelines you will qualify for the best rates and terms with the lowest costs. If you do not meet all criteria for conventional financing you may still qualify for a business loan, even as a start up company. That is the role of Venture Capital and Private Equity Financing

You may have heard of the 3 "C" s of lending or maybe 4 "C" s. They are C ash Flow, C redit, C ollateral, and C haracter. The first three "C" s are objective. They are hard and fast with little or no gray area. For instance if the program requires a minimum credit score of 680, you either have it or you do not. If the requirement is for a specific minimum cash flow or net operating income, or a specific value of acceptable collateral you have them or not. Whereas the last "C" (Character) is subjective. That means the underwriter looks at the information as a positive or minus and determine whether to fund a borderline deal or not.

Lets look more closely at these Qualifications.

CASH FLOW : Most programs state specifically what the cash flow requirements are to qualify for funding. Even if the additional capital would improve cash flow, the underwriting is based on historical numbers with the most weight applied to what you are doing now and what you have done most recently. In other words you must be currently generating enough cash to be able to afford the new loan. Rarely will a lender base an approval on the impact the additional funds will have on the business cash flow. Alternatively, if you can not demonstrate a positive increase in cash flow, that could be reason enough to deny a convention or traditional bank loan.

If you apply for a Business Revenue Loan you may qualify solely based on the average monthly revenue the business generates. This means the loan is a cash flow loan. Additionally, Venture Capital, and Private Equity Loans are made on the strength of your projected cash flow versus the historical cash flow.

CREDIT: There is a misconception that if you have good credit you qualify for a loan or if you have bad credit you do not qualify for a loan. Credit is but one criteria in underwriting a business or person for financing. Yes a credit score is very important as it shows past performance and is a statistical indicator of future performance. As such a low credit score may be a reason for denial in some programs and in other programs a high credit score with an acceptable credit profile is the only criteria necessary to qualify. The second misconception is every thing is based on the credit score. When credit …

Unsecured Business Loan for People With Bad Credit

However, recently, it was found that small business owners with good credit found it easier to get business loans from those traditional banks – funding to small businesses is a part of job growth. Unfortunately, on another note, those who have bad credit may find it hard to get the money they need during a financial crisis. So, what can a business owner do if they have bad credit and are in need of money?

Many are under the impression that they have to stick with traditional banks in order to get a loan. There are a variety of funding programs and solutions that help business owners get money, regardless of their credit. Instead of credit, other factors will be taken into consideration, such as credit card sales, bank deposit history and credit partners.

Here are some things that can help you get a business loan if you do not have good credit:

Credit Card Sales

In exchange for a portion of future credit card sales, some institutions are willing to lend money. If you have monthly credit card sales coming in on a regular basis, but you have bad personal credit, you may want to look into a merchant cash advance, but an unsecured business loan is always the best bet.

Bank Deposits

If you are a business and you make bank deposits on a regular basis, simply present this information to the lender. Typically, you should be able to obtain an unsecured business loan that is equal to 10 percent of your annual gross deposits, even if you are dealing with bad credit.

Credit Partner

Using business partners to help you get the loan may be a viable solution. If your business partner has a strong credit score, it is best if you use them. If you do not have a business partner, you may want to branch out and find a potential credit partner that is willing to help you out. Of course, with this method, there are some risks, because you will be co-signing with the business in order to obtain the money you need.

So there you have it, if you have bad credit, don't just sit there and watch your business fail. There are various things you can do in order to improve your chances of getting that unsecured business loan you need in order to keep your business up and running. Go ahead, search for a financial institution that is well known for lending money to people with bad credit.

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Securing a Small Business Loan

Insufficient funding is one of the top reasons why 80% of businesses fail within the first year and a half. As a business owner, not only do you have to cover all operating expenses, but the time and effort needed to succeed means you will almost certainly have to bid farewell to your day job and regular pay checks. Unless you've saved up enough to pay for everything for at least 18 months, you will probably have to find other sources of funding.

However, here we encounter another problem. A recent survey cited by the Credit Union Times showed that only about one-fifth of small business owners – incidentally about the same rate of successful businesses – rely on a small business loan. The survey showed that 62% were fearful of taking on a loan and almost one-fourth of respondents think they would not be approved for one. A Harvard Business School working paper by Karen Mills (Administrator of the US Small Business Administration until 2013) showed even more discouraging statistics. Banks continue to apply measures that restrict small business lending since the financial crisis hit, since such loans are generally always riskier than those to large businesses. Loans amounting to $ 1 million or less – the domain of small businesses – have gone down 21% since 2008. These loans were made up half of all bank loans in 1995, but only 30% in 2012.

So what can you do to have a better chance at securing a loan?

As the saying goes, "The devil is in the details." Given the stricter requirements of banks, you will need to come up with a very convincing plan that shows your business will truly make a profit. Each number presented has to be supported by hard evidence or at least some realistic projections backed by in-depth research. There must also be a clear plan as to where the money will go and how it will influence your business's success.

Aside from this, your entire personal finances will also be scrutinized, so make sure your taxes, mortgages, credit cards, assets and liabilities, and even your credentials are all spotless and in order.

The bottom line is, if you believe in your business idea and do the necessary due diligence in coming up with a sound budget and business plan, there should be no reason to be denied a small business loan. Otherwise, you may want to reconsider quitting your day job.

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Online Payday Loan Lenders Prompt The Need To Audit Finances

While you are considering taking out an online payday loan once again, it may help you to stop and evaluate your financial situation first. If you have been working with safe online payday loan lenders and have a good payment history with them, you won't have to worry too much about whether or not your loan application will be approved. What you should be concerned about is why your finances continue to point you in the short-term loan direction.

If you are one of those people who use a short-term loan multiple times a year to handle some of the heavier payment months or to take care of unexpected costs, you should stop and ask yourself why. What is it about your budget that does not prepare you for anything extra? What do you think you can do about it? For starters, be thankful that you can get online payday lender help, keep up the positive payment history and find out how you could prevent needing one again.

Your first task is to survey your personal finances. There must be some areas of the budget that once adjusted may help alleviate some of the monthly challenges. For most people, food is the first budget category that is evaluated. With multiple trips to the grocery store each week and eating out costs, it would make sense to look to cut back on food expenses. It would not be much of a surprise if you are overspending on food, but don't stop there. Look through all of your budget categories. Another category that can often be trimmed down is entertainment. Trim down costs to free up extra money.

Some people find that trimming budgeted categories helpful while others find it stressful and struggle to make it work. You can only slash food costs so much before you give up and spend away. It may take a larger cut back to make your budget work. Don't stop looking for ways to save income. Take the time needed to audit your personal finances. Take a look at some of your bigger expenses. You may have to trade your car in for a less expensive model. If your credit is good, you could look into refinancing the remainder of your loan. Car payments are a great area to save. Switching to a vehicle with better gas mileage automatically helps the budget. A less expensive vehicle would also lower the once a year registration cost. This alone could decrease your need to use low cost payday loan lenders .

Once the audit has been done, there are some who choose to downsize their home or move to a smaller apartment or a less expensive location in order to make their income more manageable. Saving even a few hundred dollars each month from routine expenses is what makes the difference between a person needing a fast cash advance here or there or having the money to solve financial problems. It will definitely free up the cash needed …

Home Improvement Loan or Personal Loan

Personal Loan or Home Improvement Loan? That is the question.

We love decorating our houses.

And there are phases in our lives when maybe we've spent too much time watching Food Food or TLC and thus have built castles in the air of visions of turning our kitchen into a chef's paradise. Or perhaps our master bath is just one shower away from a disaster. For we really do love Italian tiles on our bathrooms.

And if so, then cheers, you're not alone. Recently, the Joint Center of Housing Studies for Harvard University has investigated and reported that the home improvement industry should continue post record-level spending in 2016. For many people, this means borrowing money to pay for the well planned home improvements and home decorating schemes .

Now, one is ought to face a tough and difficult and perhaps hypothetical question.

So, which home improvement loan is right for you?

Many homeowners and homemakers look to tap the equity in their homes. But home equity loans or home equity lines of credit may not be possible or very practical for some borrowers. In that case, one should consider using a personal loan.

While it is known that one can use a personal loan for a variety of reasons, there are a few reasons why a personal loan can have advantages over home equity loans when it comes to a renovation loan, to be specific.

The application process for a personal loan is usually quite simple and quite straightforward. Your own financial situation-for example, your credit history and earning power; This is often the main deciding factor for whether or not you will be able to get a loan, for how much, and if so, at what interest rate. Some personal loans even boast of having no origination fees.

However, home equity loans or home improvement loans on the other hand, are akin to applying for a mortgage (in fact, home equity loans are sometimes called second mortgages). How much you can borrow depends on several factors, including the value of your home. Because you can only borrow against the equity you already have (ie the difference between your home's value and your mortgage), you may have to arrange – and pay for – a home appraisal.

Let's now see this case in the case of a home improvement loan. With a home equity loan or a home improvement loan, you can only borrow against the equity you have – which, as a new homeowner, is probably not much. You maybe have not had enough time to chip away at your mortgage and the market has not yet elevated your home's price. A personal loan lets you start home improvements regardless of how much equity you have. So, that is one benefit of availing a Home Improvement Loan.

With a home equity loan, you use your home as collateral, which means an inability to repay could result in your home going into foreclosure. While failing to pay your personal …

Five Reasons for Refusal of a Personal Loan

Don't you wish personal finance were a mandatory course in college? Unfortunately, too many of us learn by mistake. When you need a personal loan and are rejected, you might be baffled as to what went wrong- and how to fix it. Here are some clues.

NO CREDIT

No credit is a situation where you have never used credit and therefore have no credit history for the bank to review. They have no way of making an educated decision on whether or not you will pay back a personal loan based on your credit history. No credit is worse than bad credit. Qualifying for and making regular payments on these types of introductory forms of credit can overcome a "no credit" score:

Student Loans

Secured credit card (includes a down payment amount)

· Being added to a parent's or spouses good credit: card, car loan, etc.

LOW CREDIT

Low credit takes on several forms. If you're using more than 30% of your allowable debt, it can negatively impact your score. Too many inquiries from shopping around for loans will also hit you hard. Lapses in payment, defaults, or bankruptcies are giant red flags and can take a long time to rebuild from.

Other things that lenders may look at are whether or not you have sizeable assets should you default on the loan. They also check to see if your debts are diversified or if you are only carrying one type of debt.

INCOME

Proof of income is generally required when applying for a personal loan. If you are unemployed or underemployed, it can work against you in the loan approval process. Lenders may also require a work history to see how long you have been with your current employer, and to determine if you typically have job stability. Frequent job loss or change will tell a creditor that your payments may not be reliable.

PURPOSE OF THE LOAN

Believe it or not, your application can be rejected due to your proposed purpose for the loan. Financial institutions have the right to set up the parameters surrounding their disbursements and can accept or reject your application based on what you want to use the money for.

BLACKLISTING

If you've defaulted on debt before, your name may be put on a list of whom not to loan to, 'also known as a "Blacklist." This will follow you around for a long time and is difficult to erase. If you do resolve the debt issues, get documents to prove the resolution.

NO CREDIT CHECK LOAN

If you need a loan now, but are concerned that you might not qualify for a personal line of credit, you can qualify for a No Credit Check Loan . You could be on your way to a better financial future in no time!

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Where Do You Turn to to Get a Personal Loan?

Financial credit! Most of us have some form of credit, but where does the idea come from? If the need arises for you, you need to consider where to get a personal loan from.

Credits have been around for thousands of years in various forms. The original type came from the lending of materials and grains between merchants and farmers, this over the centuries turned into the lending of money between two separate parties, and is now in the form we see it today.

Financial credit can come in many different ways. A lot of people have a mortgage, this is basically a form of credit from a lender to you which you pay back usually over a 20-25 year period. Store cards are another way of people lending money, they are a form of credit card that are specific to that shop.

The reason we chose to get help with our personal finances varies. Many people have several different store cards that they pay a monthly repayment to each month, but they consolidate all these repayments into one which is easier to manage. A new car is high on a lot of peoples list and also repairing the current car they have can be costly at times and they need help paying to get it back on the road.

A once in a lifetime family holiday is another reason people get credit, what better way to treat the family than to take them to a far away land for a holiday nobody will ever forget. The memories and laughs that are experienced on a holiday like this last a lifetime.

Where to get a personal loan? The most common place people would think of as to where to get a personal loan would be their local bank, they already give the person credit through mortgages and credit cards so they believe this is the obvious choice to go for help. In fact one of the best places where to get a personal loan is on the internet and specifically by using a matching service.

A matching service is a company that will take an applicants details and apply for credit on their behalf to a variety of chosen lenders. In most cases a bank can really only offer one option and that is their own financial option, on many occasions people are not always getting the best available option for them.

During the online process the applicant will start with filling in some simple details of where they live, and go on to how much they now earn and any existing debt that they might have. These are all important questions that need answering carefully and truthfully as the answer to all these will give the applicant the best chance of where to get a personal loan from.

The combination of all the answers to the questions will produce a credit score. This score is then used to go to the lenders and apply for their best options of …

The Benefits Of Getting A Personal Loan

A personal loan is usually not secured. It means collateral does not need to be provided by you when you borrow. The loan is offered to you by the lender on the basis of your credit and qualifiers. You can easily get the approval of loan, if you have a good credit. A lower interest rate can also be offered to you. Visit a financial institution or search online to get a personal loan.

Here is a list of some of the benefits of such a loan.

  • Lower interest rate – If you have good credit, then personal loans with lower interest rates can be availed by you. Around 15% APR on a credit card balance is paid by the people with lower credit card balance. But if you have good credit, you have to pay only 6% APR. While making a big purchase, it is considered as a big difference.
  • Use for many purchases – Your cash can be used by you for making any purchase. A loan of this type can be used even for purchasing a vehicle, starting a business or renovating your house. Restrictions may be placed by other types of loans on the usage of fund. But the conditions of using a personal loan are flexible and can be used for any purchase.
  • Consolidate debt – High interest debt can be consolidated by using a personal loan. Several smaller debts with high interest such as credit cards and student loans can be paid off by using a larger loan. Money on interest can be saved if you consolidate your debt by using this loan. Your debt repayment plan can be managed in a better way by combing several loans in one place.
  • Smooth your cash flow – Your cash flow can be smoothened by using a personal loan. A personal line of credit can be got by you, by using your personal loans. You have to pay a low interest rate in this alternate way of use. An emergency fund doesn’t need to be raised for future. The borrowed amount can be repaid by accessing your line of credit.
  • Boost your credit score – Your credit score is counted depending on your different types of accounts. One type of credit is represented by credit cards. In this case, you can use your credit score to handle your loans. Your score can be boosted slightly by adding instalment loans in your credit report.

Thus, save a huge amount on all your purchases by using a personal loan. Always remember to compare different loans before borrowing any sum.

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