The definition of the best loans is different depending on who you ask. For lenders the best loans are secured loans, of any type, and high interest loans. For borrowers the best loans are unsecured loans
with low interest rates.
So, how can a median be found that makes a loan the best loan for both lenders and borrowers? The answer is in the details of the loan and how affordable and how comfortable the loan details are for the borrower.
Lenders prefer secured loans because they offer a safeguard. The borrower puts up collateral for the loan and should they default on the loan the lender then seizes ownership of the collateral and can sell it to recoup the loan amount still owed. With secured loans the borrower also assumes risk, so it is more likely that the borrower will not default.
They also want to be able to charge as high of interest rates as possible. Interest rates are how lenders make their money. The interest the charge is 100% profit for them. So, of course they want to charge as much interest as possible.
Borrowers prefer unsecured loans because they do not have to assume risk by putting up collateral. They also prefer lower interest rates. Interest rates tack on a large amount of additionally expense onto the money borrowed. The lower the interest rate the less the loan costs the borrower.
With the recent spare hike in interest rates a secured loan might not be the best option at the moment. If the interest rates continue to increase then homeowners might be pushed to afford their repayments, not to mention if house prices fall.
It is difficult as a secured loan will generally have a lower interest rate, be more flexible, allow you to spread the repayments out over a longer period of time and you will also be able to borrow more. So the best loan is dependant on your requirements and circumstances.
The details of interest rate sand collateral or no collateral are important and should be considered. These details can be adjusted until both the borrower and lender are satisfied. They can mean the difference between a good loan and the best loan for a borrower.
The best loans for both borrowers and lenders are loans that the borrower can afford. The bottom line is that if a borrower can afford a loan then details do not matter. The borrower can afford to make the payments, so they make them and end up paying off the loan as stated in the contract.
So, the best loans are not that easily defined. In some situations the best loan may be a secured loan with a low interest rate, while in other situations the best loan may be an unsecured loan with a slightly higher interest rate. It all comes down to a few factors.
The borrower should be able to afford the loan, they should feel as if they are not risking too much and they should feel comfortable with the loan. The lender really has the most control over a loan situation, so every loan is the best loan for them. It is really the borrower who has to be careful when defining their best loans.
About the Author
James Copper writes on all areas of finance and investment. He works for Any Loans who help borrowers find the best loans available to them.
Friday, July 3, 2009
Saturday, June 13, 2009
All About Bridge Loans
What is a "bridge loan?" Certainly, it is not a loan for buying a bridge. It gets its name from a frequently used type of financial strategy. Properly used, it can be a decided help in achieving financial goals. Improperly used, it can be a financial disaster.
By definition, a "bridge loan" is a short-term loan used to purchase commercial property. This is something that can come in very handy, depending on the particular situation. There are two main points that you need to consider before you opt for a bridge loan. One is your needs and the other is the state of the property market.
One of the major benefits of bridge loans is that it will allow you to purchase a new property before you have sold your existing one. You will need to evaluate your current situation to determine if your needs justify taking on this type of finance. Some major questions you must field in your evaluation are:
Will you lose the new property if you can't offer a deposit?
Would you be eligible for a discount on the purchase price if you can come up with the cash fast?
What are the existing market conditions in regard to the sale of your existing property?
Would it be possible to sell your existing property in the time frame set out in your finance package?
Most bridge loans typically run for one year and will need to be paid in full at the end of the term unless it is possible to convert it into a commercial loan. Also, interest rates will be higher on a bridging finance package.
If you do not have an urgent need for the new property and the market is slow, it may not be in the best interest of your business to take on this type of loan. On the other hand if the property market conditions are good, you can get out from under a bridging loan quickly. . However, you must realize that a bridge loan has serious risks. It is still something that will need to make sense for your business.
If you feel taking on this type of loan is the right thing to do, you will be far better off going through a specialist commercial lender. This lending institution will shorten the entire process. A lending specialist will know the market and he/she can quickly make a judgment on the best loan for you, based on your particular circumstances. It would do you no good at all if you have worked out a bridge loan package only to find out the loan underwriters have rejected the application.
Be sure to check that the loan can be converted into a conventional commercial finance package. You will also want to check on the type of interest rate and the costs you will entail if you do have to convert.
Most commercial lenders will be willing to extend the terms of your bridging finance package. If you have a buyer and you are waiting for the sale to close, a bridge loan is much more flexible and accommodating than you might expect.
Repaying your bridge loan at the end of the loan term more often than not depends on your ability to sell your existing property. If your property does not sell in the required time frame, you will be paying the existing loan on your current property, your new property and the newly converted bridge loan as well.
If you believe this may be a possibility, be sure to take a package that can be converted to a commercial loan if the need arises. Otherwise, you may have to come up with the full loan sum at the end of the finance term. As I cited earlier, bridge loans can be a decided help for your business, but there are risks. Let the borrower beware !
About the Author
Bob Carper is a veteran information systems consultant with an MBA from Pitt. For additional information go to All About Webconferencing or Effective Web Design. You may also e-mail Bob at robertcarper06@comcast.net
By definition, a "bridge loan" is a short-term loan used to purchase commercial property. This is something that can come in very handy, depending on the particular situation. There are two main points that you need to consider before you opt for a bridge loan. One is your needs and the other is the state of the property market.
One of the major benefits of bridge loans is that it will allow you to purchase a new property before you have sold your existing one. You will need to evaluate your current situation to determine if your needs justify taking on this type of finance. Some major questions you must field in your evaluation are:
Will you lose the new property if you can't offer a deposit?
Would you be eligible for a discount on the purchase price if you can come up with the cash fast?
What are the existing market conditions in regard to the sale of your existing property?
Would it be possible to sell your existing property in the time frame set out in your finance package?
Most bridge loans typically run for one year and will need to be paid in full at the end of the term unless it is possible to convert it into a commercial loan. Also, interest rates will be higher on a bridging finance package.
If you do not have an urgent need for the new property and the market is slow, it may not be in the best interest of your business to take on this type of loan. On the other hand if the property market conditions are good, you can get out from under a bridging loan quickly. . However, you must realize that a bridge loan has serious risks. It is still something that will need to make sense for your business.
If you feel taking on this type of loan is the right thing to do, you will be far better off going through a specialist commercial lender. This lending institution will shorten the entire process. A lending specialist will know the market and he/she can quickly make a judgment on the best loan for you, based on your particular circumstances. It would do you no good at all if you have worked out a bridge loan package only to find out the loan underwriters have rejected the application.
Be sure to check that the loan can be converted into a conventional commercial finance package. You will also want to check on the type of interest rate and the costs you will entail if you do have to convert.
Most commercial lenders will be willing to extend the terms of your bridging finance package. If you have a buyer and you are waiting for the sale to close, a bridge loan is much more flexible and accommodating than you might expect.
Repaying your bridge loan at the end of the loan term more often than not depends on your ability to sell your existing property. If your property does not sell in the required time frame, you will be paying the existing loan on your current property, your new property and the newly converted bridge loan as well.
If you believe this may be a possibility, be sure to take a package that can be converted to a commercial loan if the need arises. Otherwise, you may have to come up with the full loan sum at the end of the finance term. As I cited earlier, bridge loans can be a decided help for your business, but there are risks. Let the borrower beware !
About the Author
Bob Carper is a veteran information systems consultant with an MBA from Pitt. For additional information go to All About Webconferencing or Effective Web Design. You may also e-mail Bob at robertcarper06@comcast.net
Sunday, May 3, 2009
Secured Loans - The Facts And The Basics
Credit can be confusing. There are many different types of credit and understanding them before borrowing is important. Secured credit is one of the most popular types of credit and usually the easiest to get. Secured credit is when you place an asset up as collateral for the loan. Basically, if you default on the loan the lender takes ownership of whatever asset you used as collateral.
Secured loans
can be closed end or open end. Closed end loans are usually just called a loan. With this type of secured loan the collateral is usually what you are getting the loan to buy and the lender holds ownership over it until the loan is completely paid.
Some examples are auto loans and home loans, where the lender is the owner of the auto or home until it is fully paid off. An open end secured loan is often called a line of credit. This type of loan is secured with a deposit of either cash or an asset. An example is a home equity line of credit where you use the equity in your home to get a loan.
The difference between the two types of secured loans is really in the details. A closed end loan is usually the only way to buy very expensive items, like a home. The bank is investing a large amount of money and by retaining ownership of the home they are guaranteed to be able to recover at least part of their investment should you default on the loan.
An open end secured loan is a common option for people who are having credit troubles. Many credit card companies offer special cards that require a deposit. In this case the credit card company is guaranteeing they will get their money should you default.
The basic idea of a secured loan is for the lender to protect themselves. Even for people with excellent credit, large loans are a risk to the lender. By having that security of a deposit or asset the lender is guaranteeing that they will not lose everything should you end up not paying the loan. Secured loans are common place in the world of home ownership.
Almost every home owner at least starts out with a secured loan, called a mortgage. As mentioned, credit card companies are developing cards to help those with less than perfect credit get their credit in order. These secured cards are becoming a great option for those wanting to rebuild their credit.
Secured loans are often the easiest loans to get because of the fact the lender has something to recover should you default. Lenders are still going to be picky, though. They will still check your finances and your credit. Even though they have that deposit or asset, does not mean they will automatically give you a loan.
In some instances, like with auto loans, even though they retain the ownership of the auto, should you default, they will not necessarily be able to get all their money back. This is because the value of the auto will go down with time and will not be worth as much as it was when you bought it.
A secured loan may be your best option, but it is wise to keep in mind that you still must qualify, even for a secured loan.
About the Author
James Copper writes on all areas of finance. He works for Any Loans who offer Secured Loans and Debt Consolidation Loans to UK residents.
Secured loans
can be closed end or open end. Closed end loans are usually just called a loan. With this type of secured loan the collateral is usually what you are getting the loan to buy and the lender holds ownership over it until the loan is completely paid.
Some examples are auto loans and home loans, where the lender is the owner of the auto or home until it is fully paid off. An open end secured loan is often called a line of credit. This type of loan is secured with a deposit of either cash or an asset. An example is a home equity line of credit where you use the equity in your home to get a loan.
The difference between the two types of secured loans is really in the details. A closed end loan is usually the only way to buy very expensive items, like a home. The bank is investing a large amount of money and by retaining ownership of the home they are guaranteed to be able to recover at least part of their investment should you default on the loan.
An open end secured loan is a common option for people who are having credit troubles. Many credit card companies offer special cards that require a deposit. In this case the credit card company is guaranteeing they will get their money should you default.
The basic idea of a secured loan is for the lender to protect themselves. Even for people with excellent credit, large loans are a risk to the lender. By having that security of a deposit or asset the lender is guaranteeing that they will not lose everything should you end up not paying the loan. Secured loans are common place in the world of home ownership.
Almost every home owner at least starts out with a secured loan, called a mortgage. As mentioned, credit card companies are developing cards to help those with less than perfect credit get their credit in order. These secured cards are becoming a great option for those wanting to rebuild their credit.
Secured loans are often the easiest loans to get because of the fact the lender has something to recover should you default. Lenders are still going to be picky, though. They will still check your finances and your credit. Even though they have that deposit or asset, does not mean they will automatically give you a loan.
In some instances, like with auto loans, even though they retain the ownership of the auto, should you default, they will not necessarily be able to get all their money back. This is because the value of the auto will go down with time and will not be worth as much as it was when you bought it.
A secured loan may be your best option, but it is wise to keep in mind that you still must qualify, even for a secured loan.
About the Author
James Copper writes on all areas of finance. He works for Any Loans who offer Secured Loans and Debt Consolidation Loans to UK residents.
Friday, April 3, 2009
Secured Loans - The Facts And The Basics
Credit can be confusing. There are many different types of credit and understanding them before borrowing is important. Secured credit is one of the most popular types of credit and usually the easiest to get. Secured credit is when you place an asset up as collateral for the loan. Basically, if you default on the loan the lender takes ownership of whatever asset you used as collateral.
Secured loans can be closed end or open end. Closed end loans are usually just called a loan. With this type of secured loan the collateral is usually what you are getting the loan to buy and the lender holds ownership over it until the loan is completely paid.
Some examples are auto loans and home loans, where the lender is the owner of the auto or home until it is fully paid off. An open end secured loan is often called a line of credit. This type of loan is secured with a deposit of either cash or an asset. An example is a home equity line of credit where you use the equity in your home to get a loan.
The difference between the two types of secured loans is really in the details. A closed end loan is usually the only way to buy very expensive items, like a home. The bank is investing a large amount of money and by retaining ownership of the home they are guaranteed to be able to recover at least part of their investment should you default on the loan.
An open end secured loan is a common option for people who are having credit troubles. Many credit card companies offer special cards that require a deposit. In this case the credit card company is guaranteeing they will get their money should you default.
The basic idea of a secured loan is for the lender to protect themselves. Even for people with excellent credit, large loans are a risk to the lender. By having that security of a deposit or asset the lender is guaranteeing that they will not lose everything should you end up not paying the loan. Secured loans are common place in the world of home ownership.
Almost every home owner at least starts out with a secured loan, called a mortgage. As mentioned, credit card companies are developing cards to help those with less than perfect credit get their credit in order. These secured cards are becoming a great option for those wanting to rebuild their credit.
Secured loans are often the easiest loans to get because of the fact the lender has something to recover should you default. Lenders are still going to be picky, though. They will still check your finances and your credit. Even though they have that deposit or asset, does not mean they will automatically give you a loan.
In some instances, like with auto loans, even though they retain the ownership of the auto, should you default, they will not necessarily be able to get all their money back. This is because the value of the auto will go down with time and will not be worth as much as it was when you bought it.
A secured loan may be your best option, but it is wise to keep in mind that you still must qualify, even for a secured loan.
About the Author
Secured loans can be closed end or open end. Closed end loans are usually just called a loan. With this type of secured loan the collateral is usually what you are getting the loan to buy and the lender holds ownership over it until the loan is completely paid.
Some examples are auto loans and home loans, where the lender is the owner of the auto or home until it is fully paid off. An open end secured loan is often called a line of credit. This type of loan is secured with a deposit of either cash or an asset. An example is a home equity line of credit where you use the equity in your home to get a loan.
The difference between the two types of secured loans is really in the details. A closed end loan is usually the only way to buy very expensive items, like a home. The bank is investing a large amount of money and by retaining ownership of the home they are guaranteed to be able to recover at least part of their investment should you default on the loan.
An open end secured loan is a common option for people who are having credit troubles. Many credit card companies offer special cards that require a deposit. In this case the credit card company is guaranteeing they will get their money should you default.
The basic idea of a secured loan is for the lender to protect themselves. Even for people with excellent credit, large loans are a risk to the lender. By having that security of a deposit or asset the lender is guaranteeing that they will not lose everything should you end up not paying the loan. Secured loans are common place in the world of home ownership.
Almost every home owner at least starts out with a secured loan, called a mortgage. As mentioned, credit card companies are developing cards to help those with less than perfect credit get their credit in order. These secured cards are becoming a great option for those wanting to rebuild their credit.
Secured loans are often the easiest loans to get because of the fact the lender has something to recover should you default. Lenders are still going to be picky, though. They will still check your finances and your credit. Even though they have that deposit or asset, does not mean they will automatically give you a loan.
In some instances, like with auto loans, even though they retain the ownership of the auto, should you default, they will not necessarily be able to get all their money back. This is because the value of the auto will go down with time and will not be worth as much as it was when you bought it.
A secured loan may be your best option, but it is wise to keep in mind that you still must qualify, even for a secured loan.
About the Author
James Copper writes on all areas of finance. He works for Any Loans who offer Secured Loans and Debt Consolidation Loans to UK residents.
Monday, March 16, 2009
Factors to be considered while purchasing an insurance policy.
There are many factors that need to be taken care of before opting for any insurance (life insurance, car insurance, mortgage life insurance, home insurance etc)coverage policy. I have listed a few of them to help you out in purchasing your insurance coverage,
1. The first factor to look for is the reliability of the insurance company you will be opting to purchase your insurance policy from. Make sure that it does treat people fairly and has a history of paying claims promptly. It is very important that the insurance company you are going to deal with has an interactive staff to answer your questions and resolve your problems.
2. Deductibles: Most of the insurance companies require you to pay the part of your health expenses each time you have an illness or injury. This part is called the deductible. Before choosing any life and critical illness insurance policy, you should be aware of the amount you can afford to pay these deductible. Weigh the deductible against the premium before you decide.
3. Specific payment limits: It is important to evaluate insurance policies with specific limits. There are some insurance policies that state specific amount limits on what they will pay for a particular service. In such case the insurance companies usually pay what is reasonably charged in the local area. So in the event of your serious illness it may be the case that your medical bills might out limit your insurance coverage.
4. Per-occurrence or lifetime maximums: People with poor medical history must have insurance with a maximum of no lower than $50,000 for each specific illness or injury period because many insurance policies limit the amount they will pay for any single individual's medical bills or for any specific illness or injury.
5. Benefit Period: In case of your continuous illness or treatment period, some insurance policies limit the amount of time they will go on paying for each medical expense even if the you are still insured by the company. In that case, after the benefit period for a condition has expired, you must pay the full cost of continuing treatment of the illness. Thus it is recommended to opt for a policy with a long benefit period that provides the best coverage.
6. Pre-existing conditions: Most of the insurance policies do not cover pre-existing medical conditions. Thus its very crucial to check for the pre existing clauses of the policy you are opting for.Exclusions: It is important to verify the exclusions in your insurance policy. Go through the list of exclusions in your insurance policy carefully so that you understand exactly what is not covered by the policy.
1. The first factor to look for is the reliability of the insurance company you will be opting to purchase your insurance policy from. Make sure that it does treat people fairly and has a history of paying claims promptly. It is very important that the insurance company you are going to deal with has an interactive staff to answer your questions and resolve your problems.
2. Deductibles: Most of the insurance companies require you to pay the part of your health expenses each time you have an illness or injury. This part is called the deductible. Before choosing any life and critical illness insurance policy, you should be aware of the amount you can afford to pay these deductible. Weigh the deductible against the premium before you decide.
3. Specific payment limits: It is important to evaluate insurance policies with specific limits. There are some insurance policies that state specific amount limits on what they will pay for a particular service. In such case the insurance companies usually pay what is reasonably charged in the local area. So in the event of your serious illness it may be the case that your medical bills might out limit your insurance coverage.
4. Per-occurrence or lifetime maximums: People with poor medical history must have insurance with a maximum of no lower than $50,000 for each specific illness or injury period because many insurance policies limit the amount they will pay for any single individual's medical bills or for any specific illness or injury.
5. Benefit Period: In case of your continuous illness or treatment period, some insurance policies limit the amount of time they will go on paying for each medical expense even if the you are still insured by the company. In that case, after the benefit period for a condition has expired, you must pay the full cost of continuing treatment of the illness. Thus it is recommended to opt for a policy with a long benefit period that provides the best coverage.
6. Pre-existing conditions: Most of the insurance policies do not cover pre-existing medical conditions. Thus its very crucial to check for the pre existing clauses of the policy you are opting for.Exclusions: It is important to verify the exclusions in your insurance policy. Go through the list of exclusions in your insurance policy carefully so that you understand exactly what is not covered by the policy.
Tuesday, March 3, 2009
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.
About the Author
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on personal loans and a cash advance loan at http://www.supplyloans.com
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.
About the Author
Craig Thornburrow is an acknowledged expert in his field. You can get more free advice on personal loans and a cash advance loan at http://www.supplyloans.com
Tuesday, February 3, 2009
Why Are Business Loans Important?
If you are running your own business, then you probably know that it can sometimes be hard to find the funding you need to make your business work. If this is the case, then you might have thought about taking out a business loan. Although some people think that taking out a business loan is risky, if you want your business to have good cash flow and to become a success, then they can really help. To help you to learn more about business loans and their importance, here are some useful hints and tips.
Importance of a business loan
Business loans are extremely important; because they allow you to have the cash you need in your business whilst still paying for expenses. Although many businesses have enough money to pay for their equipment and expenses, many businesses are ruined by their lack of cash flow. If you spend all your money on expenses and something unexpected happens, you don’t have the capital to make changes. However, if you take out a loan, you still have your own capital left to deal with the unexpected, and your company will be better off for it. Although you are technically in debt, you are giving your business the ability to adapt and improve.
Getting a business loan
Getting a business loan is slightly more complicated than getting a personal loan, as it requires the construction of a business plan. Just as a personal loan looks at the risks of lending to you as a person, a business loan needs to assess whether or not your business is stable enough to loan money to. In order to get a business loan, there are a number of steps you need to take to be successful.
Write a good covering letter
It is important to get off on the right foot with potential lenders, so writing a good covering letter explaining your reasons for applying, as this will be the first impression of you and your company that the lender sees. A good covering letter will give a favourable impression and make them take you more seriously.
A good business plan is key
The biggest factor in securing a great deal on a business loan is to construct a solid and accurate business plan. If you can show the lender your company is sold and has definite financial plans for the next few years, then you are much more likely to get a business loan at favourable rates. If you keep the plan focussed and show your organisation’s ability to repay the loan, then you should get the terms you need.
What are the costs of a business loan?
The costs of a business loan can vary depending on what you are looking for, but they are generally charged at a higher rate of interest than personal loans. There is also the potential to borrow a larger amount of money over a longer amount of time, depending on your business viability and size. If you have a business or are looking to start a business, using a business loan for funding is an excellent way of giving your business the flexibility and cash flow that it needs to be successful.
About the Author
Peter Kenny is a writer for creditcards-gb.co.uk Please visit us at Debt Consolidation Loans and Secured Loan
Importance of a business loan
Business loans are extremely important; because they allow you to have the cash you need in your business whilst still paying for expenses. Although many businesses have enough money to pay for their equipment and expenses, many businesses are ruined by their lack of cash flow. If you spend all your money on expenses and something unexpected happens, you don’t have the capital to make changes. However, if you take out a loan, you still have your own capital left to deal with the unexpected, and your company will be better off for it. Although you are technically in debt, you are giving your business the ability to adapt and improve.
Getting a business loan
Getting a business loan is slightly more complicated than getting a personal loan, as it requires the construction of a business plan. Just as a personal loan looks at the risks of lending to you as a person, a business loan needs to assess whether or not your business is stable enough to loan money to. In order to get a business loan, there are a number of steps you need to take to be successful.
Write a good covering letter
It is important to get off on the right foot with potential lenders, so writing a good covering letter explaining your reasons for applying, as this will be the first impression of you and your company that the lender sees. A good covering letter will give a favourable impression and make them take you more seriously.
A good business plan is key
The biggest factor in securing a great deal on a business loan is to construct a solid and accurate business plan. If you can show the lender your company is sold and has definite financial plans for the next few years, then you are much more likely to get a business loan at favourable rates. If you keep the plan focussed and show your organisation’s ability to repay the loan, then you should get the terms you need.
What are the costs of a business loan?
The costs of a business loan can vary depending on what you are looking for, but they are generally charged at a higher rate of interest than personal loans. There is also the potential to borrow a larger amount of money over a longer amount of time, depending on your business viability and size. If you have a business or are looking to start a business, using a business loan for funding is an excellent way of giving your business the flexibility and cash flow that it needs to be successful.
About the Author
Peter Kenny is a writer for creditcards-gb.co.uk Please visit us at Debt Consolidation Loans and Secured Loan
Sunday, February 1, 2009
PROPERTY INVESTMENT IN TURKEY: LAND OWNERSHIP FOR REAL ESTATE DEVELOPMENT & MAKE MONEY WHILE YOU BUILD
The second is less financially straining: acquiring ownership of the land against units built. The second method is the most preferred by both investors and construction companies in Turkey as it does not require any initial funds against the ownership of the land. Any funds needed are for the construction expenses of the development on the land, subsequently alleviating the burden of fronting the purchase price of the land.
HOW DOES THIS WORK
A land owner offers his/her plot for property development instead of trying to sell it for cash to a construction company. This method also becomes more attractive for the land owner as he/she will receive units built on their plot, and when the land owner decides that he/she wants to sell the units that are left for them on the plot, will, in most cases, likely receive more money than if they were to sell the land for current market value. Or they simply put their share of the units built up for rent, creating a great source of positive cash flow.
A contract is drawn up between the construction company and the land owner.
Once both parties agree on the terms of the contract, a property development company takes up the offer to build on the land owner’s plot. A less than 50% share of constructed units eventually belongs to the land owner, and the remaining units belong to the construction company. Normally the construction company will sell the units that they acquire off this deal, to property buyers.
How is the ownership of the land/units built for the construction company get acquired?
At different stages during the construction of the properties, deeds are issued to the construction company by the land owner. Units are allowed to be sold to property buyers even before the construction company acquires the deeds for the units. The cost of the units built by the construction company for the land owner becomes the cost of the land for the units that the construction company eventually owns. It basically means that the ownership of land for the builder becomes payments in installments over a agreed period of time between the two parties. This method alleviates the burden of having to front the cash by the builder; for the land, before they begin building, and the funds by the builder are used to pay for all building materials, manpower, taxes, permits, etc.
NOUR’s OFFER:
KEY DETAILS
• Region: Kadriye (Belek), Antalya, Turkey
• Property type: Residential investment land for development
• Purchase method: land ownership in exchange for units built for land owner
• Advantage: No upfront funds required for purchase of land by builder
• Only units are built for landowner to acquire land/title deeds for the builder company’s ownership of land with units
• Percentage of ownership for builder ranges from 60% to 65%
KEY STRENGTHS
• Rapidly developing region
• Turkey’s Capital of Golf Tourism
• The first private university in the Mediterranean region, Antalya University is being constructed on an area of 110,000 m2 in the city’s Kadriye town, that began August 2008. The new university will include three faculties, four occupational high schools and a large campus area.
• The Antalya Chamber of Commerce and Industry has also started negotiations with the British Consulate for the city to host a proposed new British university.
• These new projects will: increase high rental occupancy and investment demand for the Antalya / Kadriye regions
• high capital appreciation
• attract more visitors to the region
• increase the population, thus strengthening the regional economy
HYPOTHETICAL SCENARIO
Below is a simple hypothetical scenario that will allow you to see how this system works and what financial gains it can bring to your investment decision to acquire land for residential development in Turkey, using this method.
All legal procedures are applied through the assistance of a lawyer and finalized at the Notary Public office. Any contracts drawn up and signed in Turkey are only valid in the Turkish Judicial system, if they have been drawn up, authorized and signed at a Notary Public office in Turkey. Any contract signed without the official Notary Stamp places very little weight for applying the law, should it be necessary to go to court.
FACTS IN BRIEF
We once again emphasize that this is a hypothetical scenario and not based on a real story. However the facts used are based on realistic information. Accurate information, facts and procedures will be present upon a real situation and can vary from contract to contract.
• Landowner: Ali
• Construction company: XYZ Builders
• Land size: 5,000 m2
• Planning permission: 20/40 with 3 levels (ideal for an apartment project)
• Total apartment units to be built: 30
• Units in exchange for land/units: 40% for land owner (12 units)
• 60% for builder (18 units) Contract period: 1 year
• Builder to receive 18 title deeds: in 4 stages during the one year period or sooner. This is based on how soon the builder can build 12 units for the landowner. Once all units are built for the land owner, then the builder has the right to own all 18 units it’s entitled to. The builder will acquire the title deeds during each stage the construction reaches.
PROCEDURE IN BRIEF
• A contract is drawn up and once agreed by both parties it is signed at the Notary Public office nearby. Using solicitors is strongly advised.
• A project is drawn up by an architect of the builder’s choice.
• Once the project is approved by both parties, permits are applied for.
• Upon the approval of the building permits for the construction of the project, construction procedures begin.
• Based upon the facts, the builder has one year from the date of the approval of the building permits to complete the entire construction of the property development. Approval is obtained from the local municipality.
• During the construction, based upon the facts and contract, the time to build is split into 4 stages and at each completed stage land title deeds are issued to the builder for the units that have been agreed to be given to the construction company for ownership.
EXPENSES IN BRIEF
• Opening a company in Turkey
• Accountant fee and monthly fees thereafter
• Solicitor fees
• Surveyor’s fees
• Notary Public fee
• Miscellaneous costs
• Consider your flight and hotel expenses for periodic visits to view the project in progress
• Annual land taxes to be paid as you acquire the title deeds into your or your company’s name
• Fees to be paid at the title deeds office as you acquire the deeds into your or your company’s name
• As you sell your units to property buyers, the 50% land title fee/tax based on the value of the property shown on the title deed (this is split between you or your company and the property buyer 50/50)
• Builder’s quotation will include:
o Architect and engineer’s fee
o Building permit
o Municipality fees
o Construction permission costs (YAPI DENETIM)
o Material costs
o Labour costs (salary, contract, taxes)
o Taxes
NOUR cannot place amounts on these expenses as it is based on the value of construction, etc. However, NOUR is equipped to present a quotation once all details are more certain and based on real information. The above is simply a guideline as to what you can expect to pay for.
WHAT CAN NOUR DO FOR YOU/YOUR COMPANY?
• Provide a full detailed quotation based on the land chosen for development.
• Assist in negotiating the terms with the land owner.
• Full project development support from the first step all the way through to the total physical completion and documentational aspect of the project.
• Property valuation to establish sales prices of your properties that are constructed for the buyer’s market.
• Full marketing strategy and implementation using all of NOUR’s global resources to assist in selling your properties from your development to potentian local and foreign property investors.
• Full property management after the completion of the project.
• Full rental management to your client’s who purchase from your development.
• Before, during and after sales services to your client’s.
• Basically everything that needs to be done as if it were NOUR’s own property development in Turkey.
MAKING YOUR INVESTMENT MONEY WORK HARDER FOR YOU
While you have an “x” amount of funds to investment for this property development project, why not use the Turkish banking system and gain more by way of high interest on large sums of money? You won’t be spending it all in one shot. The funds you disburse will be in stages for the construction of your property development project. The banks in Turkey offer higher interest rates than pretty much most banks in Europe. So bank what you haven’t spent yet and profit more whilst you build! It’s certainly worth it…wouldn’t you say?
More information can be acquired from all major Turkish banks. Please contact NOUR and inquire about this information Today!
© Nour Group Turkey
Resource Box: http://www.nourgroupturkey.com
Tuesday, January 13, 2009
Do You Need A Refinance Car Loan?
When comparing car loans of different lenders, it can be difficult shopping. However, you will find out that refinance car loans are getting more and more competitive nowadays so spending a little time can save you money.
A slight change in the interest rate
offered by a refinance car loan can make a big difference. Looking for the best interest rate won't be frustrating after comparing various car loans.
Always keep in mind that refinance car loan packages consist of more than interest rates. When comparing rates of different lenders, make sure you compare also the associated points.
When comparing lenders, compare also the loan related fees since the other fees are usually independent of the lender.
Furthermore, when comparing refinance car loans of different lenders, you need to investigate and compare all loan features thoroughly. Pay special attention to the presence of prepayment penalties and the availability and terms of conversion options.
Finally, for each refinance car loan you are comparing, find out the lock-in period, during which the interest rate and points quoted to you will be guaranteed. There are lock-in periods that range from 30, 45 to 60 days. Some lenders offer a lock-in for only a short period of time, say 15 days.
When the lock-in period is longer, the price of the refinance car loan is higher. The lock-in period should be long enough to allow for settlement before the lock-in period expires.
You can take advantage of lower rates by refinancing your car loan. Refinancing a car loan could put some extra cash in your pocket as well. If you financed a car within the last 18 months, you may be able to beat your former rate through a refinance car loan.
Back then, you could have been so caught up in the excitement of buying a new car that you forgot to focus on the financing deal and instead, focused on its colour and leather seats.
Think of it this way, if you apply for a refinance car loan, you've got nothing to lose but only savings to gain. Here are some easy tips to help you decide to get a refinance car loan or not:
First, ask yourself, what are you trying to accomplish by refinancing your debt? Are you looking for means to pay as little interest as possible? Would you rather have a different type of financing?
Second, think of your credit situation as a real scenario. Will your credit qualifications allow you to get the best refinancing deal? Try to get a copy of your credit report before applying for a refinance car loan.
Third, have a second look at the loan you're already signed. Try to determine how the rate on your current loan is calculated. With a simple-interest loan, interest is charged daily based on the balance due.
If there is no prepayment penalty on your current car loan and you plan to keep the car for several years, then it makes sense to go after a lower interest rate.
Fourth, compare your current loan terms with the refinance car loan terms to determine whether or not you will have any real savings.
It's important that you decide ahead of time what you will do with any newfound monthly savings you would have from a refinance car loan.
If you continue to send in the same amount as your original loan payment, you'll double or perhaps triple the benefits of a refinance car loan because you are reducing the principle much more quickly.
If you send only the required amount, you'll be paying less monthly but you won't be speeding up your debt reduction by paying off the principal sooner.
About the Author
A slight change in the interest rate
offered by a refinance car loan can make a big difference. Looking for the best interest rate won't be frustrating after comparing various car loans.
Always keep in mind that refinance car loan packages consist of more than interest rates. When comparing rates of different lenders, make sure you compare also the associated points.
When comparing lenders, compare also the loan related fees since the other fees are usually independent of the lender.
Furthermore, when comparing refinance car loans of different lenders, you need to investigate and compare all loan features thoroughly. Pay special attention to the presence of prepayment penalties and the availability and terms of conversion options.
Finally, for each refinance car loan you are comparing, find out the lock-in period, during which the interest rate and points quoted to you will be guaranteed. There are lock-in periods that range from 30, 45 to 60 days. Some lenders offer a lock-in for only a short period of time, say 15 days.
When the lock-in period is longer, the price of the refinance car loan is higher. The lock-in period should be long enough to allow for settlement before the lock-in period expires.
You can take advantage of lower rates by refinancing your car loan. Refinancing a car loan could put some extra cash in your pocket as well. If you financed a car within the last 18 months, you may be able to beat your former rate through a refinance car loan.
Back then, you could have been so caught up in the excitement of buying a new car that you forgot to focus on the financing deal and instead, focused on its colour and leather seats.
Think of it this way, if you apply for a refinance car loan, you've got nothing to lose but only savings to gain. Here are some easy tips to help you decide to get a refinance car loan or not:
First, ask yourself, what are you trying to accomplish by refinancing your debt? Are you looking for means to pay as little interest as possible? Would you rather have a different type of financing?
Second, think of your credit situation as a real scenario. Will your credit qualifications allow you to get the best refinancing deal? Try to get a copy of your credit report before applying for a refinance car loan.
Third, have a second look at the loan you're already signed. Try to determine how the rate on your current loan is calculated. With a simple-interest loan, interest is charged daily based on the balance due.
If there is no prepayment penalty on your current car loan and you plan to keep the car for several years, then it makes sense to go after a lower interest rate.
Fourth, compare your current loan terms with the refinance car loan terms to determine whether or not you will have any real savings.
It's important that you decide ahead of time what you will do with any newfound monthly savings you would have from a refinance car loan.
If you continue to send in the same amount as your original loan payment, you'll double or perhaps triple the benefits of a refinance car loan because you are reducing the principle much more quickly.
If you send only the required amount, you'll be paying less monthly but you won't be speeding up your debt reduction by paying off the principal sooner.
About the Author
Uchenna Ani-Okoye is an internet marketing advisor and co founder of Free Affiliate Programs
For more information and resource links on car loans visit: Cheap High Risk Auto Insurance
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