Securing Home Owner Loans

25. April 2012 · Comments Off · Categories: Asset Based Lending · Tags: , , ,

Despite just how cold and bitter the financial world feels right now, there remains hope on the horizon for home owners and property investors. If you’re in a position to repay a mid-term loan, and your prospective new home needs an overhaul (or you’re a real estate investor), there are plenty of companies out there that are more than willing to meet your needs.

Rehab hard money lenders are doing big business, more so because they’re providing a bridge between those that need money and those that can’t get it via more conventional money lenders. Banks and big financial institutions are tough nuts to crack, and none of them seem to care that we (the men on the street) weren’t the cause of the 2008 crash – they were.

Still, if you’re looking to secure Chicago hard money loans, there are plenty of lenders dotted around the state that are willing to take up the slack left by the banks. Generally most of them lend to both commercial and residential applicants, and providing you’ve got a mid-range credit score, you should find that your bases are covered by the loan offer.

You’re also more likely to secure a rehab loan on medium to large properties as it’s worth bearing in mind that these companies base some of their evaluation (part of that being the risk that you present with) on an increase in the properties value post rehab-works. Another aspect to bear in mind is the fact that it’s more likely that you’ll secure funding as a non-occupier. Generally this is the norm rather than the exception.

As there are more than a few companies out there, make sure you do your homework first. Don’t, whatever you do, jump on the nearest, the easiest to apply to and so on. Look at their background, who they deal with, how they deal and what rates they offer. See if their open to negotiation (many are) and who they’re affiliated with. Treat your application much as you would any other form of borrowing, be sensible and make the right choice.

Using Gold As Loan Collateral

20. March 2012 · Comments Off · Categories: Asset Based Lending · Tags: ,

If you are in need of cash, say, for a new business venture or for urgent personal expenditures, you can use gold assets, such as bullions or jewelry. Many people today put their money in gold in order to create more diverse portfolios because the price of gold moves opposite to that of stocks in the global market. This is the general picture and having around 10% to 15% of your investments in gold or other varieties of precious metals, like silver, palladium or platinum is recommended by financial experts.

One form of gold that you can use as collateral is the bullion. Various types exist, like the more recognized bullions, such as the American Gold Eagle and the Krugerrands, as well as newer editions, like the 2012 Chinese Pandas and Australian Kangaroos. Take note that bullions are different from the coins that were or are used in circulation.

Those used as currency are known as numismatic coins and are normally collected for their gold content and other critical attributes including age, minting, and rarity. But for the bullion coins, their value is only based on the gold that they contain. The quality of the gold must be high, with fineness of about .9999, meaning that the coin contains 99.99% gold.

Carat wise, this is equivalent to 24 carats. Examples of coins that are 99.99% pure are the 2012 releases mentioned earlier, as well as other recent coins like the Lunar Rabbit (2011) and the Lunar Dragon (2012). Established coins, like the Krugerrands, have fineness of about 91.6, which is equal to 22 carats. This is almost similar to the fineness of the American Gold Eagle. You can check United’s Rare Coins to see the selection of bullion coins on hand, as well as their varying fineness and features.

Using gold in order to loan from banks is actually very helpful in improving the value of gold in the world financial market. By having this as collateral, you take your gold away from the scene, so to speak. So, you aid in increasing the demand for this precious metal. With increased demand and less supply, the price of gold will be sure to increase too.

All in all, gold is definitely an asset that you can use in order to loan money from huge banks. Some financial institutions even accept numismatic coins in exchange for loans because these collections are normally backed by gold. To learn more about coins, bullions and other precious metal options that you can utilize when borrowing money, see tips and advice on reliable sites, like United Rare Coins & Precious Metals.

Save Business Expenses with Free Checking

14. March 2012 · Comments Off · Categories: Business Capital · Tags: , ,

They say that nothing in life is free. And, for the most part, that is true. However, there is one free service that seems to be taking hold in the banking industry; free checking accounts. Of course, there are certain criteria that must be followed for most of these accounts such as having a minimum monthly balance.

While a lot of people have switched to online banking and pay their bills directly from their bank account, there are still some stallwarts who insist on still using paper checks to pay their bills. And, there are also those who don’t have access to a computer and want to continue to do things as they always have done them.

Many institutions that you would not associate with banking now offer bank account. That includes supermarkets who not only provide a debit card, but also provide free checking accounts and points back on any purchase you make on that debit card.

There are many banks who also offer free business banking accounts. The minimum monthly balance accepted is slightly higher than expected for individuals. Most banks seem to expect that the client keep a minimum of $3000 in their account every month before offering them free services such as checking. That is not a lot of money to most businesses.

Like with individuals, most businesses now do their banking online. However, not all of their suppliers have come that far and many employees do still expect to receive a pay check rather than have direct deposit. While it is not a huge financial outlay, having a free checking account which comes with free checks will ensure that prices are not raised because of business expenses and that employees may even get a raise because of it.

Banks want your business so they will try and offer services that draw you into their bank, free checking is just one of those perks they offer.

 

 

Quick Payday Loans for Emergency Cash

09. March 2012 · Comments Off · Categories: Business Debt · Tags: , , ,

Cash

Eventually there comes a time when you will need money but payday is far away. Getting a typical loan takes up to a few weeks or even up to month. People who are desperate try to find quick payday loans so they can use the money for their immediate needs. These instant loans can help get you through your time of need. However, it is also important that you know what you’re getting yourself into. These loans are often small and have to be paid back when you get your paycheck; so it’s best if you think about it carefully.

Instant payday loans can be your emergency lifeline for when your car is broken down on the side of the highway or for when you have unexpected medical emergencies that aren’t covered by insurance. You shouldn’t use this to purchase a brand new TV, to go shopping or on anything that is not important and time sensitive as the interest rates are often much to high. This loan is good for emergencies and when you need cash badly. You have to make sure that you understand the loan and terms. So, always read the fine print and make sure you know the details. Use the money wisely and try to do some research online as well.

Exploring the Two Major Asset Finance Models

05. March 2012 · Comments Off · Categories: Asset Based Lending · Tags:

We venture to explore the two major asset finance models.

As it turns out, the first asset finance model is the one where the asset being financed serves as the collateral in the financing deal. If, for instance, you are buying a 7 passenger SUV, you can have a lender give you the money you need to buy the vehicle, after agreeing that you are to repay that debt over time, and that the lender is to repossess the SUV in case you are unable to repay. In that case, you’d effectively have made the SUV being purchased the collateral in the deal. Actually, conversations with vehicle dealers reveal that majority of passenger vehicles are in fact acquired through these types of ‘convenient’ financing deals: where the vehicle serves as the collateral. Other types of vehicles, besides the 7 passenger cars we are using as examples are also commonly bought in this way.

The second asset finance model is the one where some other asset has to serve as collateral in the financing deal (as opposed to the one that is being financed). If, for instance, your credit rating is very low, and you want to acquire a vehicle, you may find it hard to get a financier willing to lend you money to buy the vehicle with the vehicle to be bought serving as the collateral. Rather, lenders are likely to demand that you give some other collateral, before being lent such money. In doing this, the lenders would only be trying to minimize their exposure to risk. You come to realize that the arrangement where the asset being financed serves as the collateral in the financing deal is not one that is open to all people. Rather, it is only folks with good credit ratings (who are presumably very creditworthy) who get such highly preferential asset financing deals.

Opening A Business In A Highly Indebted Poor Country (HIPC)

25. February 2012 · Comments Off · Categories: Business Organization · Tags: ,

As we are constantly reminded by Jubilee campaigning groups, there are close to 40 highly indebted poor countries worldwide.  Here’s a recent article by Jubilee South on Nicaragua for example.  The HIPC initiative by the World Bank was launched to help provide debt relief to these poor counties.

Only counties that had complied with IMF requirements in the past were eligible to join and a further raft of conditions were included as part of the relief program.  Much of these were focused on maintaining macroeconomic stability, trade liberalization policies and curbing inflation – both factors that contribute to a better business environment overall.

Unfortunately however, many countries were also required to cut public spending which had negative impacts down the line.  For example the numbers of doctors and teachers were reduced in many counties on the back of these cuts.  The privatization requirement (for example for water supply, electricity provision and other basic infrastructure services) often resulted in higher prices.  In many countries service standards improved (but not in all).

When it comes to opening a business in a HIPC country there are both advantages and disadvantages.  On the one hand the reduction of an “unsustainable debt burden” is very positive for the country and it’s ability to raise money.  Also careful micro-economic management should be welcomed.  But some business may also be disadvantaged by the program.  Water and electricity costs often rise following privatization and it may be hard to compete with increased imports from other countries coming on the back of more liberalized trade pathways.

Owners with businesses selling quality products that are competitive with the outside world and with enough margin to cover any increased costs of sale would likely support the HIPC program.  A good standing with the IMF also bodes well for the relationships with other finance and reconstruction organizations.

Risky Business: Financing Your Start-Up With Credit Credits

15. February 2012 · Comments Off · Categories: Financial Restructuring

Credit cards have generally taken a bit of a PR beating over the last several years, and for some outstanding reasons. Interest rates tend to run from very high to rates that a few years back would have embarrassed Vinnie, the loan shark. No, it’s still true that your best bet for financing your new business is to grab the traditional multiple brief cases full of files and head to your local bank for a business loan. However, there is no getting around the fact that loans remain difficult to get even for people with very good credit.

You may need to be both very creative and a bit lucky to finance your business. Such options as crowd sourcing and other innovations have become more popular lately for a reason. Even so, there may be a point where credit cards are simply the only alternative for some quick emergency funding. Think of your cards as fire extinguishers and never as water fountains. It might be somewhat safer in terms of protecting your personal finances if the cards are in the name of your business but, for that very reason, they tend to come with higher interest rates.

If you end up partially subsidizing your business via plastic because of a sudden emergency, your best recourse is simply good old fashioned common sense. Obviously, considering the interest rates, you want to pay off these debts as quickly as humanly possible. Even more obvious, if you can’t pay your credit card debts all at once, you need to be absolutely certain to make your minimum payments on time.

In case you somehow haven’t heard it by now, credit card companies have an extremely nasty habit of radically raising your interest rates if you are late on even one payment. We’re talking briefcases full of cash here. That is, of course, on top of a late fee. If this happens for some reason, be sure to call up the company as soon as possible and, of course, send in the minimum immediately. Sometimes the fees, at least, will be waved. It never hurts to ask nicely but it’s much better to not let this happen in the first place.

Leather Briefcase

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