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Tag: Business loan

  • How to Improve Your Chances of Getting a Business Loan

    How to Improve Your Chances of Getting a Business Loan

    Whether you’re a manufacturer of copper pipes or a logistics provider, having enough capital is key to any company’s growth. For entrepreneurs, expansion typically means having to get a business loan. This is easier said than done. Give the number of entrepreneurs out there with dreams of making their idea the next big thing, banks are cautious when they give small business loans. So, if you don’t present your case right, you may get turned down for a loan. A little planning can go a long way in increasing your chances of getting the loan you need. Here are a few tips that could help.

    Apply at the Right Time

    Hope for the best, prepare for the worst- it’s every successful entrepreneurs mantra. If you think you might need a business loan in the future, apply for one when your business is doing well. It is easier to get a loan when the numbers are up rather than when you’re having a difficult time. Bear in mind that in most cases a business loan for new business takes up to 60 days for approval. So, apply for a loan long before you think you will actually need the money.

    Present an Enticing Business Plan

    No one will give you a loan if you cannot make them believe that you will be successful and they will get the money back in time. An idea isn’t enough, you need to have a clear plan of how you will bring that idea to life. Thus, when you apply for small business loans, you need a business plan. This should include an executive summary that lays out what your company is about, what it does and why it is a profitable investment. Then you need to talk about your business model, the market opportunity and what sets the company apart from the competition. To complete the plan you need to include all your financials- balance sheets, profit/loss statements, cash flow statements, etc. The way you present your plan may also influence the business loans interest rate.

    Be Truthful with Documentation

    There are a number of documents required to get loans for small business ventures. If the company has not had a chance to make a profit yet or is going through a rough time, it may be tempting to gloss over some of the ugly bits and varnish the trust. However, this can be very harmful to your application. The banks will check every point on your documents and if even one were found to be untrue, they would lose faith on the entire application. Be honest and transparent about everything. If your numbers are not complimentary, it is better to give a reasoning for them rather than give wrong numbers.

    Fix your Credit Score

    When applying for small business financing the lending agency will check both the company and your personal credit scores. Thus, before submitting the application, make sure you correct and mistakes in your credit score. There is no hard and fast rule on the minimum credit score required but you should know where you stand. If you have a low credit rating speak to the people concerned to try fixing it. Most credit bureaus take around 1 month to fix errors so don’t wait till the last minute to start this process. If the score is error free, you can improve it by paying outstanding credit bills and clearing old debts.

    Memorize Figures

    Despite having all the relevant figures in your business plan and application, you should be able to give out the key figures too. If the bank manager has questions about the company’s profits, turnover, cash flow, etc., he will be more likely to approve of the application if you know the numbers rather than if you have to check the documents. Be confident and concise with your answers.

    Stay Persistent

    Banks are not the only source to be considered for small business finance India has many banks so if one bank turns down your application, apply at another. Keep in mind that all banks offer a different business loan interest rate in India. Small banks are more likely to approve business loans for entrepreneurs as compared to large banks. If all else fails, consider crowdfunding or holding closed door fundraisers. Whatever you do, don’t give up!

  • 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.

  • The Pros and Cons of Taking a Business Loan

    The Pros and Cons of Taking a Business Loan

    The occurrence of overdue loans may be the result’s overestimation of his financial stability and solvency when deciding whether to receive a loan. There comes the work of the Distressed Loan Advisors.

    No matter for what reason a delay arises; the Bank is not concerned, which should be considered fair. If a delay arises for a borrower, negative consequences will arise in the procedure of charging penalties, issuing payment requirements for invoices, direct debiting money from accounts, etc.

    But, having violated obligations under a bank loan agreement, the borrower does not become powerless, and the Bank does not gain absolute power over the borrower and its assets. Moreover, changes in legislation in the last few years are aimed at improving the situation and protecting the rights of borrowers. The work of the Distressed Loan Advisors comes there.

    The Bank is entitled to:
    • To charge a penalty on overdue amounts of debt in the amounts provided by the bank loan agreement.In respect of individuals, the size of penalties may not exceed 0.5% of the amount of overdue payment within 90 calendar days of delay and 0.03% of the amount of overdue payment after 90 calendar days of delay. In this case, the total amount of the accrued penalty shall not exceed 10% of the amount of the loan issued for each year of the bank loan agreement.In respect of legal entities, the limit of the penalty amount is not fixed by law.
    • Require early repayment of the loan subject and the remuneration due in cases providing by the legislation. With regard to the occurrence of overdue loans, such a right with the Bank arises when there is a delay of more than 40 consecutive calendar days.
    • To foreclose on the pledged property in a compulsory pre-trial procedure, if such procedure is only if the terms of the pledge agreement.
    • To impose a penalty in an indisputable (without acceptance) order on the money held in the accounts, if such a right is stipulated in the bank loan agreement.It is not allowed to foreclose on benefits and social payments paid from the state budget, housing payments, money placed on accounts in housing savings banks in the procedure of housing construction savings, money allocated as an educational savings deposit.The amount of non-withdrawal of money from the accounts of individuals is limited by law 50% of the amount on the account and of each amount that will be transferred to the account in the future.
    • To recover arrears in a judicial procedure and to foreclose on the collateral property (if the loan is collateral).
    Assign the rights under a bank loan agreement to a collection agency, a special organization to improve the quality of the loan portfolio or a third party or to transfer to them the authority to collect the debt. This right arises for the Bank only after 90 calendar days for a loan issued to a distinct and after 180 calendar days for a mortgage loan issued to an individual. The suggestions would get from Distressed Loan Advisors.
    At the same time, in exercising their rights to collect overdue debts, the banks bear the associated duties, which many do not know about.

    The bank must:
    1. If a loan arises, but no later than 30 days from the date of its existence, notify the borrower in the manner and within the time period stipulated by the bank loan agreement about the need to make payments under the bank loan agreement indicating the amount of overdue debt and the consequences of non-fulfillment of its obligations.
    2. Consider the proposals of an individual on the settlement of overdue debts and give a written reasoned response within 15 calendar days.This legal provision carries an unobvious, but very significant plus for the borrower, since the legislative provisions of the Bank’s obligation to send a written review can be corresponded with the provisions of the Civil Procedure Code. In the event of a late response by the Bank or ignoring the borrower’s application by the Bank, violation of a direct statutory duty may serve as a basis for returning the claim or awarding court costs in favor , regardless of the outcome of the proceedings.
    3. To send the incoming money to pay off the debt on the loan of an individual in the following order:
    4. Up to 180 consecutive calendar days overdue: overdue principal, interest overdue, penalty, principal, remuneration, collection costs (receivables)
    5. After 180 consecutive calendar days overdue: overdue principal, interest overdue, principal, interest, interest, collection costs (receivables)

    The bank is prohibited:
    To demand payment of the remuneration accrued during the period when the debt was in operation at the collection agency, and also charge a penalty (penalty, penalty) for the late repayment of the principal debt and remuneration during the specified period.
    To capitalize overdue remuneration, penalties (fines, penalties) to the amount of the principal debt when changing the conditions for the execution of a mortgage housing loan agreement issued to an individual, or issuing a new loan in order to pay off an individual mortgage housing loan.

    Conclusion:
    So, the duties of the banks were also expanded as a result of legislative changes, and also for the banks, additional bans were imposed on the use of tools for restructuring and charging fees and penalties in respect of certain groups of borrowers. Knowing the above limitations can be very useful for borrowers, both when assessing the Bank’s ability to settle overdue debts at the pre-trial stage, and at subsequent stages of relationship development.

  • What’s the Best Provider of Small Business Loans?

    What’s the Best Provider of Small Business Loans?

    Do you have a small business, but plan to make it bigger and better? Do you lack the funds to make that big step that will make you even more successful?

    A lot of people have a vision, but often need help to start off, which is why they turn to loan providers. In a lot of cases, those include banks and different financial institutions. Their offers often sound good at first glance. However, after a short while, you start noticing that the process of getting a loan is long, complicated, and includes a ton of paperwork. Not to mention that banks often have very strict criteria, and can even reject your application for the smallest detail that is not to their liking.

    Despite some pretty good perks, the complications that come along with this process can often discourage business owners. This is why so many great ideas never see their realization, while the existing business risk shutting down.

    Introducing Camino Financial

    Camino Financial is a company that has a goal of catalyzing economic growth in communities with low-to-moderate income. They do so by helping small businesses, and empowering them in order to create additional job opportunities and allow these small firms to grow and develop.

    The company thrives in finding a proper business loan for small businesses that need that little extra money in order for their business to reach its full potential. This is the company that understands your struggle and wishes to help you overcome the difficulties of a though period. They will help you learn about your funding options, and select a small business loan that will help you put your firm back on the map.

    Camino Financial allows you to get a small business loan through a quick and easy online process that is perfectly safe and reliable. Getting a loan has never been simpler, and you can get the necessary funds in less than 10 days after signing the loan contract. Best of all, you need no collateral in order to be accepted, and the entire process is done with almost no paperwork involved at all.

    All that really stands between you and your small business loan are your basic financial records and accepting the company’s terms.

    The company’s criteria are far more flexible than those of any traditional bank. Additionally, the terms we mentioned previously are primarily based on your own business’ cash flow, credit score, and the plans for the provided funds. As you can see, the requirements are truly minimal, and this is why Camino Financial is the best firm for getting small business loans.

    How to get a small business loan in only a few steps

    Getting funds in traditional banks is, as we mentioned earlier, a long and troublesome process. With Camino Financial, this process is narrowed down to only a handful of steps.

    The first thing that you need to do is make sure that you meet the necessary requirements. These include some very basic things. The first requirement is that your company needs to be properly registered, and you need to provide proof that your firm is operating for a minimum of 9 months. The second requirement includes your company’s income. To properly qualify for a loan, your business needs to earn at least $30,000 on a yearly basis. Alternatively, it must make $2,500 or more per month.

    The third and final requirement is that you need to be free of past due payments or other debt obligations that are still active. As you can see, the requirements are nothing special, and if you meet all three of them, that is all that you need to apply for a loan. All you need to do in order to get your funding is to follow these steps:

    Step 1: Apply online, and receive the company’s terms

    Applying for a loan with Camino Financial is as easy as it can get. You can do the entire thing online, via mobile-friendly loan application. The process only takes around five to ten minutes, and it requires absolutely no documentation. Simply submit your application without the fear of it impacting your credit score.

    Step 2: Study the terms and authorize the bank activity download

    This step is as simple as the previous one. You will receive pre-approved loan terms within a single business day, and a business loan specialist will soon contact you. Carefully review the terms and make sure that you understand them. After that, all you need to do is authorize the company to download the activity of your bank account in the previous six months.

    That way, the firm can verify your own business’ income, and confirm that you meet the necessary requirements. In case there is something that the company deems unclear, you may be asked to provide additional documentation, so keep that in mind as well.

    Step 3: Sign the contract and get your small business loan

    You are almost done with the entire process, and it only took a day or so by now. All that is left for you to do is to wait for one to eight more business days for your loan application to be properly reviewed. After that, if everything is in order, you will receive official approval. Finally, you will have to sign a mobile-friendly contract regarding the loan, which will arrive via email.

    That’s it! Nothing more is required, and your bank account will receive the funds in a matter of two business days. As you can see, the entire process can be done in no more than 10 days, which is a deal that you likely won’t get from any other bank or financial institution. All that the process takes is about an hour of your time in total.

    Ali Raza

    Ali writes for Camino Financial, an online lender focused on business loans. He is a freelance journalist, with experience in web journalism and marketing. He holds a Master degree in Finance and enjoys writing about cybersecurity, cryptocurrencies, and technology.

  • Some Guidelines About Business Loan

    Some Guidelines About Business Loan

    In this dynamic world, now business is growing rapidly. That is why business loan is very important in every business and it plays a vital role. We know very well that finance or funding is required in every business so that the business is started according to its vision and ambition. So some points are there that people must know before taking any business loan.

    In every business, people should know their basic needs and the funds they required, so that the business can be started without any problem. They must have a clear idea why they are asking for business loan according to their requirement. So the future of the business will be grand success.

    People must assess their business very carefully before taking any business loan. They should take help from financial advisors or any financial institutes. There are so many institutes are there, those are proving necessary advice for  businesses according to the requirement.  So that people will not face any problem in the future business.

    In every businesses, people must review about their credit history, after that people should think about the business loan. As all financial institutes conduct  internal survey after that the business loan can be sanction with the prior approval from concern loan officer. So people should be aware about their credit report from different agencies. If existing business is there, they must asses about their credit score. If credit score is good then 100% chances is there to get the business loan.

    If your credit score is good for the subject business. People should look the options about the financial institutes because many times some small financial institutes offer a high margin of business loan but big financial institutes never offer such a high margin of loan as per the required business. People must discuss about the criteria, amount, objectives as per the financial procedure to the concern loan officer after that people can select a right one according to the requirement of business.

    Another important factor is business plan. It is very important before projecting any business loan. People should have a good business plan because  it is reviewed by the financial institutes according to the credit score. You should have a solid business plan detailed about your past business, evaluation of business and assets and about your concern business project and your business growth over the financial years.

    These are some factors people must go through before thinking any business loan so that people will not face any problem in getting business loan from any financial institutes. As we know that finance is very important in every business. Therefore “Where there is money, there is positive thinking, where there is no money, there is always negative thinking”.

  • What You Need to Know Before Applying for a Loan

    What You Need to Know Before Applying for a Loan

    Applying for a loan is probably everyone’s first thought when they lack money. However, while applying for one may be easy, getting the approval for a loan takes certain conditions. This is especially true in the recent years, since the global economic crisis has affected almost every country in the world. Nevertheless, getting a loan from the bank may be the only option for some people, so it’s important they know the basics before they decide to apply for the loan.

    Credit Card as an Alternative

    A personal loan is not the only form of credit. You can also consider getting a credit card, instead of applying for a loan. This is the cheap alternative, since it offers a 0 percent introductory offer on purchases. However, this can be a tricky payment method for those who enjoy shopping and don’t think much about the debt they’re making. Additionally, a long term loan is better option if you won’t be able to pay the credit card debt in time.

    Interest Rate and APR

    Interest rate and annual percentage rate can vary a lot, depending on your lender and your credit profile. If you have a good credit rating, a credit union or a bank you turned to for a loan will provide you with a very low interest. If, on the other hand, you ask a conventional finance company for a loan and your credit rating is poor, the interest rate will be higher than the one on the credit card. However, a huge advantage of conventional personal loan is that it’s not revolving credit, but installment based. This means that if you get an installment loan, the loan will reduce as you pay off each month.

    Good Credit Score

    When you decide to apply for a loan, the lender will most likely base their decision on your credit rating. It’s imperative that the credit score is flawless, and that you’re not already in debt to some other lender, or you’ll get a bad deal. What’s more, in some cases your load will be denied. If you ever get into trouble with credit rating, companies like Clean Credit can help you get a clean slate and have a piece of mind when it comes to your money.

    Early Repayment

    Even though you’re applying for a long term loan so that you can pay it off gradually, it’s possible that you’ll want to repay it earlier. However, this action will cost you, believe it or not. Many lenders will put a clause that says how much more money you’ll have to return in order to fully pay off the loan ahead time. Therefore, read the contract carefully, before you decide to take this step.

    Payment Protection Insurance

    If you’re unable to meet the repayments every month, payment protection insurance will be there to cover them. You might have a family emergency, like unemployment, sickness or an accident and so you won’t be able to repay the loan for that month. Therefore, search for the best deal and make sure you pay the loan regularly, one way, or the other. However, PPI isn’t mandatory, so if you don’t think you need to have one, don’t apply for it.

    If you ever decide to apply for a loan, make sure you check the previous information in order to get the best possible deal. It’s important that you have a good credit rating, so that you can get a loan, and repay it on time. Make sure you are familiar with the basics of applying for a credit, so that you don’t end up with a too high repayment amount. Knowledge is power, so use it to your advantage.