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(37)Business Loans - A Source of Finance for your Business

         
Have you been planning to start a new business but lack of sufficient funds has been stopping you? You need not worry; Business Loans are here to help you realize your dreams.
Business Loans are the loans granted for the use of a business. Business Loan can be used to start a new business, expand the existing business, to buy a new machine or equipment or for any other business related activity.
Bu siness loans can be a secured or an unsecured one. Secured Business Loan is a loan that is provided in exchange of property, machines or plants that serves as collateral such as houses, cars, savings accounts or bonds. Secured Business Loan also provides finance for working capital, which can be used to purchase raw material, paying the labour charges etc. Unsecured Business Loan is granted without keeping a property as a security with the lender. Business Loans can be taken for short, intermediate or for a long term, it depends on you which one do you want to take and for what purpose. Short-term loans are given to businesses that need cash to start operating, this loan is granted for one or less than one year. Intermediate term loan helps businesses to buy equipments and cover initial large expenses, this is granted for a period of one to three years. Long-term loans are used to assist start-up businesses with initial costs and are granted for a period of three to seven years. Now you would say why only, Business Loan, when other loans are available in the market. Business Loans are tailored specially for people who want funds for their business. Business Loan provides the flexibility to preserve your cash and working capital. Business Loan also helps in managing cash effectively by offering flexible repayment options. Capital forms an integral part of every business. If you are planning to apply for the Business Loan you need to look into three key issues: -
* Cost - You need to check the cost and risk involved in taking a loan.

* Loan Size - You need to decide the amount of loan you want that would satisfy your need.
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* Payback Program - It is very important to decide at the time of taking a loan that how will you repay the loan amount and the monthly installments, otherwise it may create problems for you in future.

You can get a Business Loan from a bank or a financial institution. But shop around and search for as many lenders as you can, you can also look for online lenders. Collect quotes from various lenders and make a comparison among them to get the best deal. When applying for a loan you need to keep in mind that you must make a loan proposal. Lenders will grant you the loan only if they find your proposal worth because no lender will be interested in taking risk. While writing a loan proposal you should always give industry-specific details so that the lender is able to know in-depth about what business do you want to start or how your present business is run and what market trends affect it.
You should also give details about the existing or proposed business, collateral which you want to keep as a security with the lender, loan repayment plans, personal financial statement and projection of your future operations. The possibility of getting a loan will be higher if you have a good loan proposal and are able to convince the lender about your future business plans. You can get a secured business Loan if you have CCJs, arrears or bankruptcy. Your bad credit history cannot stop you from getting the cash you needed to invest in your business or to start up your own business.
Business Loan provides funds to businessmen who want to expand their business or people who want to start a business of their own. Success has no limits. Business loan provides you with the funds now it depends on you how use this money to climb the ladder of success.

About the author:

A loans borrower/user demands for timely, reliable, accessible, comprehensive, relevant and consistent loan service.Pamella scott is constantly trying to help you find such a loan service online.To find Secured loans,secured personal loans,secured debt consolidation loans in uk that best suits your need visit http://www.easyfinance4u.com< /a>
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Written by: Pamella Scott


(38)Business Start Up Loan - Script Your Own Success Story With the Right Finance Method


If you thought generating ideas for your business was a difficult task, then arranging necessary finance in the form of business start up loans would seem even more difficult. Many entrepreneurs succumb at this stage, only to lead their idea to dumps. Entrepreneurs, who withstand the challenges of the process, continue to shine in the world of business.

Capital has been rightly referred to as the lifeblood of any business. Business starved of capital during the initial stages of its formation, would be similar to malnourished children who were not fed properly during their childhood. The growth of the business will be stunted, often affecting negatively its productivity and efficiency.

Entrepreneurs no longer have to depend solely on their own resources for purposes of capital. Many loan providers are ready to finance promising business ventures. The loan is referred to as business start up loan. Amounts on business start up loan ranges from £30,000 to £250,000. Entrepreneurs can qualify for more loan amount, provided the business plan is very attractive. Loan proceeds will primarily be used for purchasing the necessary machine and equipments, paying for legal documentation, maintaining office and any other expenses that crop up during the initial formative period. Moreover, business start up loan contributes towards the working capital.

Borrowing through business start up loan is fraught with a number of challenges. The very first task in the process will be to generate faith in loan providers that the amount lent on account of business start up loan will be safely returned. Preconceived notions about new entrepreneurs make the task difficult. The negative notions are further strengthened through two factors:

* Firstly, borrowing entrepreneur has zero or very less credibility in the market at the particular point of time. Loan providers fear risking the loan amount on borrowers with low credibility.

* Secondly, the borrowing entrepreneur is still to form business or the business is still to show results. Lending at this stage, without having knowledge about how the business fares in the long run, is perilous for the loan provider.

The borrowing entrepreneur is thrown into a dilemmatic situation wherein they cannot prove their worth till they start business. They cannot start business until they get the necessary finance. And they cannot get the necessary finance till they are able to prove their worth.

However, not all loan providers look at new venturists with suspicion. New venturists are considered a unique group of people who have a unique set of characteristics. A sound and foolproof business plan works well for new entrepreneurs. Bankers study the plan well and then decide if it will be viable to lend.

Guaranteeing payback through collateral is another important method of getting good deals in business start up loans. These are referred to as secured business start up loans. As a part of this method, the borrower will have to offer lien on certain asset/assets to the loan provider. This process is also referred to as hypothecation. Though the asset will continue to be in possession of the borrower, loan provider has every right to claim the asset in case of non-payment of loan.

Loan terms for business start up loan ranges from 5 to 25 years. Given the unique income structure of businesses and self-employed individuals, wherein income is not guaranteed, flexible repayment schedule will be especially helpful. Under a flexible repayment schedule, the borrower gets to repay in the manner that he chooses. Monthly repayments can be increased, reduced and discontinued altogether depending on the entrepreneurs finances. The arrangement will have to be accepted by the loan provider. Sometimes, regular payments for a certain period may be the prerequisite for flexible repayment schedule.

Business start up loans may exceed personal loans in terms of interest rate. The typical APR on a business start up loan will be anywhere between 7-13%. Online comparison and searching loan providers will ease the process, besides improving the quality of deals. Rates may go upwards depending on the presence and value of collateral and the credit status of the borrower.

Business loans will not suit borrowers who want full control over their business. Some loan providers would like to dictate terms and thus curb the control of the entrepreneur over his business. The borrowing decision must be made only after an impartial and impatient study of the pros and cons of the method.


About the author:

Michael T. Brian is the author of this article. He is Masters in Business Administration and expert in finance. He writes about various finance related topics. If you are interested in Michael's financial advice, you can visit www.find-business-loans.co.uk.

Written by: Michael T.Brian


(39)Buying A Car - What Is The Best Finance?.


Your car is one of the most expensive purchases you will ever make. Probably the only thing you will buy that costs more than your car is your house. You wouldn't just accept the first mortgage you came across, and likewise you shouldn't just accept the first vehicle financing option that comes your way. You will have a lot of options in how to finance your car.

You can buy the car outright. If you would like to opt for this, you will need to borrow the cash in the form of a bank loan.

This should generally be medium term, over period of about two to five years. It is generally not advised that you secure borrowing over your home but this may be necessary in order to get the loan or in order to get a better rate. Shop around for the best rate, from banks, other lenders and also on the internet. Rates will vary widely so it is a good idea to shop around as much as possible.

Leasing

If buying the car outright in this manner is not an option, you may wish to consider leasing the car. Leasing will never make you the owner of the car. You pay a monthly fee, every month for the period of the lease, and at the end of this period, you give back the car and walk away. Leases have a number of advantages over buying the vehicle. The payments are generally lower as you are not paying for the entire value, just for the price of leasing it.

You also don't have to worry about selling the car when the leasing period is over, as the dealer owns it. Leases may also include a buying option at the end of the period, which will allow you to buy the car if you want to. The one thing to be careful about when leasing is that there may be heavy penalties for early termination.

Some Advantages

The other popular type of vehicle financing is dealership financing. With this option, the car dealer arranges the car financing. They will sometimes offer very attractive rates as they want to encourage people to buy the cars, however, sometimes their rates are extremely bad and you will want to be familiar with what's available from alternative sources before opting for dealership financing. Some advantages of dealership financing will include convenience, multiple options, and special offers on selected models.


About the author:

Joseph Kenny is the webmaster of the loan information sites http://www.selectloans.co.uk / and also http://www.ukpersona lloanstore.co.uk. Select Loans have information and links to certain suppliers in the car loans section of the site.

Written by: Joseph Kenny


(40)Buying a Spanish Property - How Do You Finance It?


Once you have decided on the home you wish to buy you need to know how to finance it. There are several ways in which you can do this. If you are lucky enough to have the cash in the bank then you don't need to worry about the actual financing of it - however take a look at the section on exchanging your money as this could save you a lot of money. If you don't have the finances readily available how do you finance the property?

The main ways are * Arranging a Spanish Mortgage * Arranging a mortgage with a UK lender * Re-mortgaging your existing property * Builders finance

Arranging a Spanish Mortgage Most Spanish banks will lend to foreigners providing they can prove an ability to repay. Prior to applying you will need a bank account and, although banks don't insist you have an account with them- they would obviously prefer it if you did.

The requirements are similar to the UK. Banks will lend upto 70% of the property value to foreigners (80% in some cases though this is now harder with a tightening market). However, this depends on the bank, the director and the property. It is easier to get a high mortgage on a new or nearly new property than it is to get a small mortgage on a ruined Finca needing a lot of work - banks don't appreciate the potential value of the property - only the current value.

The bank will require proof of income and in some cases your outgoings. Therefore you will need your pay slips for the previous 3 months and proof of outgoings. If self-employed you'll need to show accounts for the previous 2-3 years.

Most banks insist on life insurance and most mortgages are repaid over 10-15 years but they can extend to 30 years in exceptional circumstances, however most banks will insist on repayment before the age of 70. It is also possible you may need a guarantor - I for example had to guarantee my parents mortgage as they are both retired (although their pensions were more than I earned).

Spanish banks charge from 0.5% - 3% of the mortgage value for taking a mortgage with them (it isn't enough that you're paying interest as well). It's possible to reduce this if you persist - so ask your bank - you may get a discount on this fee. (If you don't speak Spanish ask your agent to do so- but beware he may be getting a commission from the bank and may be reluctant to.)

You will need to think about the monthly cost when transferring money to Spain for the mortgage. If you have bought to let then the rental should cover the monthly repayments. If not then you may be as well looking into transferring money through a specialist- such as http://www.currencyuk.co.uk - who have provided our clients with excellent service in the past.

Currency fluctuations and transfer fees can cost you a fortune and your bank is not the best to deal with - they have little experience in the currency market. For example a friend bought a house here and her Euros cost her £500 more (on £14,000) by using her bank than if she has used a currency broker.

Obviously it's your money but a broker is able to buy currency at a commercial rate as they deal in currency every day. They can even secure a fixed exchange rate for up to 12 months - so you know in advance the cost of buying your home. If you are using this sort of service for your monthly mortgage payments, you may be better transferring 6 months at a time because they generally don't deal in amounts less than £5,000.

The process of applying for a Spanish Mortgage.

Applying for a Spanish mortgage is usually a case of visiting the bank and speaking to the director. They will fill in the forms for you so you just need to sign. Once he has established your credentials he will give you a preliminary yes or no. Once a yes is given it is dependent upon a satisfactory survey. Although the final decision is taken by the banks head office, seldom the decision given by the director overturned.

Arranging a UK Mortgage

There are many UK lenders who will lend against a Spanish property but these are more expensive than a Spanish Mortgage. However, it is always wise to check every avenue before committing yourself.

The approval process is similar to getting a buy to let mortgage in the UK in that you would have to prove around about 125% of the potential mortgage payments in rental income.

The amount you can borrow for a property in Spain also depends on the property valuation. Obviously, the higher the valuation, the more you can borrow. For UK mortgages (or offshore mortgages) the Loan to Value is generally a lot lower than getting a mortgage in Spain.

So what are the advantages of a UK based mortgage? Firstly you will be no language problems. Secondly the repayments will be in Sterling so there will be no exchange rate concerns if the rate fluctuates wildly - you will always know what you will be paying.

However, if you are buying a property to rent then it may be advisable to have a Spanish mortgage - especially if the rental income will be paid in Euros. However the final decision to go for a Spanish Mortgage or UK one lies with you.

Re-mortgaging your existing property

The easiest way of raising finance for your property in Spain is to re-mortgage your existing property. This obviously depends on the equity you have in your existing home and your income in respect of the amount you would like to borrow. However the bank already knows you so the process is more straightforward, the amount you can borrow is not dependent on the value of the property you are buying therefore your dream Finca is more realistic) and the process takes less time than obtaining a UK Mortgage.

Builders finance

Many developers of properties can now offer upto 80% mortgages for non residents. This is achievable because of the value new properties generally represent when buying off Plan. However for off plan investments it is very difficult to get a mortgage until the certificate of habitation is issued.

Documentation required

Whatever type of mortgage you decide on there are certain documents you will need. The documentation required will vary from bank to bank. As a guideline it is a good idea to prepare much of these as soon as possible.

If you are employed you will need:

* Last 3 salary slips. * Last income tax declaration (P60 in the UK) or evidence of latest annual tax assessment * Letter from your employer confirming date of employment and proof of income.

If you are self-employed you need

* Latest income tax declaration * Copies of the accounts for the last 2 / 3 years * Company report, confirming personal drawings

Other documents you will need:

A Spanish bank account

NIE number from the local police station

The nota simple from the property registry

Offer letter of sales/purchase contract

Copy of passport / residence permit /NIE

Copies of last 6 months bank statements

Bank reference letter.

About the author:

Vince Barnes - www.SpanishProperty-Direct.co.uk - information about the buying process in Spain. up to date with news affecting the Spanish Property Market. New Book - "The Insiders Secret Guide To Buying A Property In Spain" - at www.spanishproperty-direct.co.uk/book.htm.

Written by: Vince Barnes


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