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  • Everything You Need to Know About Unsecured Loans

    Everything You Need to Know About Unsecured Loans

    The finance industry is seeing rapid change. Part of the reason for this is that the interest rates in the developed world are at historic lows. Another reason is that internet is faster than ever. Further, the concept of machine learning and artificial intelligence has become more popular. For example, technology has made it possible for companies to lend money to individuals by analyzing their mobile activity. In this article, we will look at the ever-expanding concept of unsecured loans and how they are changing the world.

    What is an Unsecured Loan?

    There are two main types of loans. The best-known type of loans is known as secured loans. These are loans that are backed by assets such as real estate and vehicles. These loans are known for their long duration of payments and low interest rates. Lenders usually have more flexibility on these loans because failure to pay would lead to forfeiture. Examples of secured loans are mortgage and auto loans.

    Unsecured loans on the other hand are based on trust. These are loans that don’t have any security behind them. These loans are based on information that is provided by the credit bureaus. These are companies that compile a person’s transactions such as deposits and borrowings. A person with a good track record is given loan compared to a person with a bad credit score. Unsecured loans have become very popular because of technology. Companies like Tunaiku and Lending Club are good examples of those that offer unsecured loans.

    How to Take an Unsecured Loan

    The first thing to consider when looking for an unsecured loan is to ask yourself whether you need a loan. This is an important question because many people have taken loans that they don’t need. Therefore, as yourself whether you need a loan. Second, ask yourself about the type of loan that you need. In general, unsecured loans are usually smaller than secured loans. They also come with relatively high interest rates. This is because they are based on trust and there is very little a lender can do if you fail to pay back the money.

    Second, you need to consider where you will borrow the money. There are several places where you can get this type of loan. First, you can visit your local bank for such a loan. Many banks are known to offer these loans. This is because they have a good data about you and your transactions. Second, you can visit a local credit union or a cooperative society. These are companies that offer relatively better rates than banks and other commercial companies. Third, you can use an online bank. These are companies that are offering friction less banking solutions online.

    Finally, you can use the various online loan companies like Tunaiku, Prosper, and Lending Club. It is recommended that you do a lot of research about these companies before you take a loan. This research will help you get a company with quality reviews. It will also help you get a company that has lower interest rates.

    Tips to Increase Your Limit

    As you will realize, you will start getting unsecured loans in small tranches. The reason for this is obvious. A company offering unsecured loans wants to give you a small loan and then increase the amount as you prove your authenticity. This is because they want to see whether you will pay back the money on time. Therefore, we recommend that you pay back the money on time. Another way to increase your limit and get better terms is to use a single company. This will help you build your relationship with them. Finally, you should always pay your other loans on time. This is because the company will look at your credit rating and see whether you have a lot of outstanding loans.

    In conclusion

    Unsecured loans are important because they help you when you need them the most. They are easy to find and they offer better terms when you build your relationship with them. Using these tips will help you get better terms.

  • Five Tips for Financing Investment Property

    Five Tips for Financing Investment Property

    Real estate investments have the potential to provide a steady income for investors—presuming they can get their hands on the financing required to get in the game. There are many financing options available, and the primary differences boil down to how much the loan is going to cost the investor. The higher the cost of the loan, the lower the long-term income potential of the investment. If you want to maximize the profitability of your venture, getting the best mortgage is critical. Here’s what you need to know to get the best loan possible.

    1. Tidy Up Your Credit

    A credit score in the mid 600s may be enough to qualify for a basic investment loan, but the terms will not be on the investor’s side. With low credit scores come high down payments and high interest rates, neither of which will help your profitability. The higher your credit score, the better the terms of the loan—and a score over 740 will typically qualify borrowers for the best terms available from most lenders.

    2. Organize Your Financial Documentation

    Most lenders want to see that you have either the income or the available cash to cover your existing obligations and the new loan you’re trying to secure. You’ll be allowed to count a certain portion of the investment property’s income in your application, but having the right documentation to show the rest of your income and cash reserves will speed up the process. Gather your tax returns from the last two years, including W-2s, 1099s, and other income statements, along with bank statements, recent pay stubs, and anything else relating to your current income—especially if you have new sources of income that are not on previous tax returns.

    3. Reduce Current Debts

    Most lenders consider your debt-to-income ratio to make sure you’re not using all your current income to pay obligations and have nothing to spend on food and the electric bill. If you’re unable to boost your income levels, paying down debts is the way to go. For borrowers who already meet the minimum requirements for a lender, reducing that ratio can help you get better terms for your loan.

    4. Document the Property’s Cash Flow

    Most lenders are primarily concerned with your ability to repay a loan. Some lean heavily on your personal ability to pay, as demonstrated by your past (i.e., your credit score) and your current income levels. Others, called asset-based lenders, will be satisfied with a property that can demonstrate a high debt service coverage ratio, or the ratio of the projected income of the property to the total amount of the mortgage payments, taxes, and insurance. In essence, the more income that remains once the debts have been paid, the higher the score; the higher the score, the better the terms of the loan.

    5. Cast a Wide Net

    From an outside perspective, it may seem like most lenders are the same and that loans do not vary considerably from one lender to the next. The truth is that there can be significant differences from lender to lender. First, the fees associated with the mortgage will vary, and even a fraction of a percent difference in interest rates will have a major impact on the long-term cost of your loan. Borrowers should take the time to apply to several lenders and include conventional lenders as well as asset-based lenders so they can compare and contrast their options.

    Protecting Your Investment

    Once you’ve done the hard work of finding the best loan for your investment property, the next step is to maximize the profits from that investment. Many first-time investors are overwhelmed with the day-to-day operation of rental properties, especially if there are multiple units and many tenants to juggle. It can be easy to make costly mistakes in the initial months, especially if your property has vacancies, and you don’t have the marketing skills to attract tenants or the screening skills to choose the right one. New investors may find that working with an experienced property management company will help ensure the venture gets off to the best possible start to provide long-term income and security.

  • Picking a Business Loan Broker? How to Find the Best

    Picking a Business Loan Broker? How to Find the Best

    Are you questioning yourself regarding how to pick a business loan broker? Well, bear in mind that brokers are aware of the market very well and they know how to save clients from being exploited. There are few things which you need to keep in mind for making the best decision, some of the questions regarding picking a business loan broker are mentioned below.

    Questioning about lenders from a business loan broker

    You need to ask about the number of lenders the loan has to be given to from a business loan broker. There are chances that the business loan broker already has a perfect fit for your loan in their mind. But you can not completely settle for this choice as well and weigh your options wisely. There is a probability that a lender the broker is referring to offers the lowest possible interest rates. So, you need to be wary of such possibilities. You need to realize that a broker’s fees differ and it is not the same for all lenders.

    Question the drawbacks from a business loan broker

    There are certainly good aspects of a loan and certain drawbacks. The point is that you need to know both. You need to understand your situation and condition you are in. For instance, if you will be requiring some funding right away then the best approach is to effort for a short term loan. But you need to bear in mind that in that case, you will have to pay a higher interest rate and that too for a long time. You need to question a business loan broker regarding one’s effort in channeling the clients through the paperwork process. A loan involves a great deal of paperwork and it is extremely vital to catch the details from the narrow lens. If the broker is only highlighting the positive aspects of the loan then you need to question. You should identify whether the broker is offering a generic solution which even google can give or there is more value to it. You need to have a sharp eye for such judgments during the meeting with brokers. Comprehend the answers of the brokers and ensure that one is providing you honest, intelligible answers.

    Ask for the thinking time

    You also need to take the decision wisely before deciding in rush. Time is exceedingly vital and you can not undermine its importance. You already know that the procedure of loan is in itself a very big commitment. If a borrower feels pressure while signing the contract then this won’t be the best option to avail at all. There can be a possibility that the broker you are going for is fully reliable. But even in that case, you need to take some time out for thinking over the deal and discuss it with other entrepreneur friends. If a business loan broker is not willing to give you enough time then that is a red signal and the best approach here would be to consult any other.

  • How To Write an Employment Offer Letter?

    How To Write an Employment Offer Letter?

    If you are wondering how to write an employment letter then this article has got you covered. There are few things in mind which you need to stick to. For instance, you need to pay importance to job details which include the benefits, salary, work schedule and all other vital steps. The guide outlined below will help you out in getting the idea clear.

    Telling the news over phone call

    If you have finalized the candidate then before documenting and delivering the offer letter you need to extend the offer over the person. The news of getting a job is not only exciting for the applicant but also the company thus you need to create a personal connection. Once you establish the connection you need then have to outline the official letter which will include more details then they have previously received.

    Pay attention to the subject line

    You need to make use of a catchy subject line which is under fifty characters. You need to be clear about the position you will be offering. You have to include phrases like the company’s job offer. A warmer and joyful tone will help in this regard, just be to the point and clear.

    Attach helpful documents like letters of credit

    Next, you need to attach vital documents. You must keep the aim of the offer letter in mind for carving out the best offer. If you will be sending an email offer letter then a good plus point is the attachment of documents like letters of credit. If you are wondering what sort of documents can be attached then you can attach the company’s policies, compensation plans, letters of credit and benefits. But you want to limit the number of documents here as you don’t want to overwhelm the candidate. Just attach the relevant information which will help them to identify their role.

    Offer letter in attachment

    Next, there is a possibility that you choose the pdf type of offer letter. In that case, it is best to write an email message which is brief so the candidate could feel connected. You want to establish the celebratory and enthusiastic ground for the candidate who has yet to read the offer letter. There are different templates available online which will give you an exact idea of what this paragraph is referring to. Just have a welcoming tone and you are good to go.

    Attaching Offer letter in the email body

    The next possibility is that you have the offer letter in the body of the email, the other documents like letters of credit still has to be attached. In that case, the candidate will be able to see the full offer letter in the email without the need of downloading it. Here comes the most important point which can pop up into your head and that is the need for job details, the details about benefits and compensation. You need to be very precise in mentioning the contact details. Don’t forget to give them a deadline which is the time to accept or decline the job offer.

  • 7 Real-World Scenarios Where Printed Checks Are Still Beneficial

    7 Real-World Scenarios Where Printed Checks Are Still Beneficial

    When it comes to paying bills and settling accounts due for your business, you’re probably using digital methods to manage and transfer your money. It’s not difficult to understand why you and many other business owners prefer using e-banking over traditional banking: it’s easier, more convenient, and there is increased security compared to using paper checks.
    However, this does not mean that you should rule out using old-fashioned checks entirely. In fact, there are still times when you will benefit more from using paper checks compared to digital payment methods. Thus, you can still use checks, but make sure that you use secure window envelopes for checks when sending them through the mail.

    1. Avoid Extra Charges
    If you are paying utility bills or federal licensing fees, using a paper check can help you avoid extra charges that come with credit card processing. Keep in mind that many companies, especially government offices and utility companies, use third-party services to process credit card statements, and they pass on these fees to their clients. Every time you use a credit card or online payment, you will pay these fees.

    2. No Power? No Problem!
    When you’re paying through electronic means, it obviously means that if there is a power outage or problem with the Internet connection in the area, you won’t be able to pay! If the power outage is severe, even ATMs in the area might be affected, so you won’t be able to get cash easily either.
    Using printed checks help you avoid these problems and still make your payments without any problem. Since processing and filing your check won’t need any electricity, there won’t be any problem with accepting your payment. However, make sure that you still record the process with your mobile phone so that you have proof that you paid your bills during the power outage.

    3. Some Businesses Still Go Old-School
    Even in today’s digital age of electronic payments, there are businesses that actually prefer using old-fashioned checks! Many government offices, large companies, and even landlords will require that you use a printed check over digital payment methods. Of course, you shouldn’t discount retail business owners who won’t accept credit cards because they don’t want to bother with having to make their business compatible with electronic payment methods.

    4. Avoid Minimum Purchase Requirements
    Many small and medium-sized businesses will require a minimum purchase amount for any transaction to offset the costs of using credit cards or electronic payments. Keep in mind that credit card companies and banks will charge a fee for their electronic services, and these fees can have a huge effect on a company’s bottom line if they accept small value transactions. If you don’t use paper checks and you don’t have cash on you, you’ll be forced to add more items to your purchase to meet the minimum purchase requirement.

    5. A Strong Paper Trail is Always a Good Idea
    If you want traceability and transparency for easier accounting purposes, using paper checks will give you the most control when managing and organizing your cash flow. Each step of the processing, filing, and cashing out the check is recorded on paper, and you will be able to ask for a copy for your business records. This way, you will have a strong position to start from if there are any disputes over your payments.

    6. Recipients Have More Control on How to Manage the Incoming Funds
    While this particular benefit is more for the good of your recipient than your own, having this option will actually be attractive for your recipient. Unlike using digital payments where the money will only be directed to a particular account, your recipient will be able to dictate how and when to cash in your payment. They will also be able to choose where they will deposit the payment.

    7. A Younger Demographic Doesn’t Always Mean a Preference to Technology
    Surprisingly, a large percentage of the younger generation actually still strongly prefers traditional banking methods over digital methods when it comes to accepting payments! There are many possible reasons for this, ranging from the higher number of banks using traditional payments (particularly in rural areas) to the fact that many banks arbitrarily change their policies concerning digital payments compared to traditional banking methods. In terms of stability and transparency, banks are more prone to suddenly changing their digital banking policies. Compare that to the process of accepting, processing, and cashing out paper checks which has not changed much through the decades, and you will understand why the idea of a digital bank is not as attractive to the younger generation as it could be.