Author: Gary

I’ve spent the past 10 years reading any personal finance book that I could find, looking to gather as many strategies as possible. Once e collected enough tips, tricks and budgeting methods, I started experimenting with them. Some proved to be useless, and others were quite dangerous. However, I was also left with several strategies that were remarkably efficient and could be implemented with very little effort. I’ve also taken it upon myself to share these so that others might benefit from my experience. These will help anyone, regardless of income level, age or location. I hope to give people enough financial insight to live comfortably for the rest of their lives.
Loans

3 Essential Methods That Companies Can Use to Get Ready for a Loan

               

It is common practice for the majority of small businesses and start-ups to apply for a loan as soon as possible. The extra financing is usually used to give the company a boost by purchasing real estate, equipment, or paying for services and advertising. Regardless of the reason, the ability to get a loan without too much hustle is extremely important for a small business that wants to stay ahead of the competition. This having been said, lenders tend to be very cautious when it comes to deciding if a small company should get a loan or not. In most cases, this is a result of the short financial history of the company. If a business has not had time to prove that it is financially stable and that it will continue to have profit in the future, then it might be difficult to borrow money.

Luckily, there are a few strategies that have been proven to work, even if a business is only a couple of months old. However, it requires discipline and careful planning. Here is what you need to know:

  1. Keep Your Financial Records as Clean as Possible (This Includes Your Financial File, Not Just the Company One)

Preparation is extremely important when it comes to ensuring that you can get a small loan, and this requires business owners to keep 4 company aspects in mind:

  • Time in Business – This refers to the amount of time that the company has functioned. Lenders are regularly much more trusting of companies that have been in business for at least one fiscal year because this gives them time to prove that it can consistently make a profit;
  • Cash Flow – Cash flow refers to the amount of money that enters and leaves the company’s bank accounts. At this point, it is important to mention that business owners must make sure that every last penny is accounted for and properly marked in the company’s financial records;
  • Credit Rating – Each credit reference agency has a slightly different way of calculating this value and it is important to check with all of them to determine how likely it is for a company to get a loan;
  • Collateral –Almost all businesses are required to offer collateral to borrow money. Whether a company applies for a line of credit or a regular loan, it will have to secure it against its property or the property of the owner;
  • Have all the Documentation in Order before You Apply for the Loan

The lenders will request that you present bank statements from the last 6 months, proof of profit from the last 2 years, tax refunds that you might have collected, as well as information regarding all the current debt, leases, and credit adjustments that the company has received in the past. Send an email to the bank inquiring what documents are needed for the specific type of financing that you need. Once you have the list, gather all the documents and go over them in order to ensure that no mistakes slip by.

  • Target the Correct Type of Financing for Your Company

Look at the current deals that the lender is offering and determine which one caters to the needs of your company. This also implies taking into account that some types of business-oriented loans may have restrictions that your company cannot get past. Furthermore, certain forms of financing, such as lines of credit may only be available to companies that have gone through at least one full fiscal year.

Loans

5 Issues That Cause Small Businesses’ Loan Request to Be Rejected

                

Starting a business and keeping it on track can be extremely difficult in the first few years, especially if the financial climate is less than favourable. Whether you need the money to pay unexpected expenses such as repairing a piece of equipment, or you are looking for financing to upgrade your existing ones, loans are the best choice. Furthermore, most banks, as well as a large number of private lenders try to make it as easy as possible for small businesses to secure the financing that they need. However, this does not mean that everyone who applies for a loan will automatically receive one. Banks still hand-pick the borrowers that fit their requirements best.

This may mean that if you apply for a loan and the financial status of the business is not appropriate, your request will be rejected without any explanation. If this happens, there are 5 reasons that you need to take into consideration. Here is what you need to know:

  1. Bad Credit

This is the most often encountered issue. If a business has not yet ended its first fiscal year, the lender may not have enough information to assess the risk of approving the loan request. This would normally be made clear right from the start when the borrower sent the application. However, in certain situations, the lender may look at the credit file of the owner in order to make a decision. If the owner has bad credit (or the business, for that matter), the loan request may be rejected without any clear explanation.

  • Not Enough Cash Flow

Businesses that have humble beginnings may not have enough cash flow to have their loan request approved. This, however, can be circumvented by requesting a different type of loan. In most cases, if the lender refuses the loan, for this reason, he might agree to a smaller one, or one that has different terms and conditions.

  • Not Enough Time in Business

Lenders need to analyse the financial history of a business in order to calculate its credit rating and decide if they are to approve or reject the credit request. In most cases, getting a loan requires at least one full fiscal year to have passed, however, larger forms of funding such as a line of credit may require several more. In some cases, this can be circumvented by offering a valuable property as collateral; however, this is not always possible.

  • Not Enough Collateral

Generally speaking, business loans require appropriate collateral. If the lender concludes that a business does not have a property that is valuable enough to serve as collateral, he may reject the loan request.

  • Lack of Preparation

There is more to getting a business loan than simply filling out a loan request form. Lenders regularly require businesses to submit additional documents such as written business plans, financial statements, projections, bank statements and personal and business credit reports. If any of these are not in order, the loan request may be rejected.

Of all these documents, the most important ones are the business plan and the projections. Lenders need to see that the loan request comes from a business that has a clear financial objective and that the owner knows how to use the financing to increase profits. Make sure to include as much documentation as possible, as part of your loan request. If you are currently developing a new product or service, mention it and explain how it will benefit from the loan. Also, specify how the product will help the business earn money.

Make Money

The Easiest Way for Young Entrepreneurs to Start Making Money in Record Time

              

The current economic instability has left many with reduced incomes and has even led to individuals losing their jobs. The effects of this phenomenon have also had severe repercussions for entrepreneurs, most of which find it now more difficult than ever to make money. However, there are still several methods that an individual can use to start earning in less than one week. These revolve around markets and industries that were unaffected by the Covid-19 pandemic. Most of these methods can be used by regular individuals; however, they are much more profitable if businesses are built around them. It is also worth mentioning that they do not require entrepreneurs to invest a lot of time in them and can also be used as a source of passive income.

  1. Invest in Stocks

One of the easiest ways to earn a passive income is by investing money in stocks. This can be done by going to a broker or through an online platform. For most intents and purposes, online investment platforms are more useful because they feature intuitive user interfaces and great tutorials. Online platforms also give individuals the option to mirror the investment decisions made by other users. In other words, beginners who do not have any experience when it comes to investing in stocks can find a user that has a good track record and follow his investments.

  • Invest in a Local Business

Investing in a local business is a good way to make money while also helping the community. The best course of action here is to first find a business that is still in its starting phase and to offer to invest money. Local stores are usually great options because some owners will agree to give you a share of the profit, depending on how much money you offer them.

  • Sell or Rent Out Assets

If you have any digital or physical assets left from previous jobs, it may be possible to sell or rent them out. This includes digital assets such as WordPress templates, banners, logos that can be reused, domains, websites, and others. When it comes to the latter two, renting is the best option as it will ensure that you have a stable source of income that you do not have to actively work for.

  • Offer Personal Loans

There are several platforms that allow users to offer personal loans, such as P2P lending platforms. These make the connection between lenders and borrowers; however, they do not play in active role in the loan agreement. P2P platforms ensure that all parties involved follow the terms that they have agreed to.

Another great option is to join a local credit union. The income earned from these may be lower, but you will also help the community by lending money through them.

  • Offer Property for Rent

If you have a piece of land, a building or anything in between, it may be a good idea to put it up for rent. It is a common practice to offer unused properties for rent, and then use the money earned to purchase a new one. This would allow individuals to start a real estate business with very few financial resources.

All 5 of these methods are great for anyone who is looking to increase his monthly income, but they are also great starting points for small-businesses. Keep in mind that all of them require that you have access to the funds required to make investments. They may not be appropriate for individuals who are going to tough times, financially, but these strategies are the best ways for entrepreneurs to make money as fast as possible.

Online Lending

How to Make Sure That You Are Not Scammed by Online Lending Services?

The world of online lending platforms has given many individuals a better, easier way to borrow money. From a functional point of view, they offer a large number of advantages when compared to traditional lenders. They not only make it easier to borrow money but also enable individuals who have a poor credit rating to get loans that would otherwise be unavailable to them. However, this accessibility comes at a price, namely higher interest rates. This having been said, this is not the only thing that can make online lending services dangerous.

From the terms and conditions to how the lender informs the borrowers of various extra charges that may need to be paid, numerous services and applications of this type have been reported to make their users pay more than they bargained for. While most of these companies are regulated by the authorities, some aspects of their business cannot be controlled and may harm the clients. Here is what you need to know:

  1. Always Read Reviews before Using a Service

Regardless of whether you want to borrow money using a smartphone app or a web-based service, you should always look for reviews before submitting an application or creating a user account. Keep in mind that the testimonials that are present on the lender’s website may be selected to advertise the services of the company. The platform or app is not necessarily safe to use if the testimonials say so. The best course of action here is to go to a third-party review website such as TrustPilot and to look for public reviews for the lending service. These review websites usually offer both ratings as well as reviews, making it easy to determine if the lending service that you want to use is safe or not.

  • Understand What Fees You Have to Pay

It is a common practice for online lenders to only present the fees that borrowers have to pay under normal conditions and for the usage of their services alone. There is a chance that the agreement also contains additional charges that must be paid in special scenarios. Some lenders offer different interest rates based on the region of the borrower, while others introduce an additional fee if the borrower needs the money transferred in certain types of bank accounts. Generally speaking, always make sure that you read the full agreement before moving forward.

  • Double-check all Data

Make sure to double-check all the data that you submit as part of your loan request and also pay attention to the loan confirmation.

  • Keep an Eye on Your Bank Account

Some online lenders have been known to stealthily charge their clients various fees over the course of the loan. This is not a common practice, but it is a possibility. Furthermore, in some cases, your bank may not notify you of every payment that is made from your account. Keep your eye on your bank account statement and always signal the bank if you feel that you have been charged by something that you should have not have. The bank will be able to block all payment requests that come from a scam lending service.

  • Security Considerations

Lastly, make sure that the website that you have to submit your financial and personal data is safe. You can do this by making sure that its address starts with HTTPS, which means that it is a secure connection. In addition to this, be wary of lenders that request that you pay an upfront application fee or any sort of down-payment before your application is approved.

Credit Cards

The Best Ways to Use Credit during the Holidays

The winter holidays are always extremely busy, for sellers and customers alike. Most retailers offer large discounts during this period, in an attempt to determine as many people as possible to spend money on their products. However, this leads to individuals’ spending money that they already have in their accounts, as well as whatever they can borrow. In many cases, shoppers end up going into debt or reducing their credit rating, which has a considerable impact on how they manage their finances afterwards.

This having been said, there are ways to properly use the credit that is available to an individual to pay for all the winter holiday expenses, various creature comforts, and also have something left. However, this requires careful planning and a bit of discipline. Here is what you need to know:

  1. Decide on What Type of Credit You Want to Use

The first thing that you should do is decide on the type of credit that you will use during the holiday season. Ideally, you should look for a very flexible type of credit such as a line of credit or an online lending service that offers microloans. However, it is also possible to use credit cards, but you have to keep in mind that they have high interest rates and using them too often will lower your credit rating.

  • Make a List of the Essential Monthly Expenses

The best way to make sure that you do not get into trouble, financially, is to make a list of all your monthly expenses, add everything up and deduct it from your budget. You should never touch this money, regardless of what offers or discounts, you come across. If possible, try to pay these expenses as quickly as possible so that you do not have to deal with the temptation of spending the money on other things.

  • Consolidate Your Debt before the Holiday Season Starts

It is common practice for many individuals to take out loans or use other forms of credit during the holiday season. While this is not necessarily a bad thing, having an unfavourable financial file may prevent some people from accessing various forms of credit. If you have already taken out one or more loans and/or have to repay money to the bank, consider consolidating your debt to give your credit rating a boost. This will ensure that you can get a personal loan faster and that the interest rate for it will be lower.

  • Use Alternatives to Credit Cards

You should only use your credit cards for small purchases or emergencies, even during the holiday season. However, if you find great deals on products that you want and do not have the cash to pay for it, consider using an alternate source of credit. There are several types of microloan online platforms and P2P lending services that offer great deals during this period. The main advantage of using them is the fact that they do not perform credit score checks and borrowing money will not affect your credit rating.

  • Keep Your Credit Rating from Going Down

When it comes to the holiday season, most people tend to use up all of their credit to pay for products and services, without thinking of what they will do afterwards. This can cause irreparable damage to their credit rating and have a serious impact on their long-term financial status.

Try to not spend more than what you can repay in the following months and always make sure that you keep up with the monthly repayments. Some credit forms, such as credit cards should be paid faster than others to keep them from lowering your credit score.