June 2015


Taking a Payday Loan – What You Should Know

Taking any type of loan is a pretty big step. While the initial injection of funds will make your life easy, you will have to pay back the loan with interest. Obviously, if you are borrowing money from friends or a relative, they will not charge any interest. However, asking for money from friends and family doesn’t look good. Not only does it reveal to them that you are suffering from financial troubles, but it can also lead to fallouts in case you do not make the payments on time. Moreover, you will probably have to pay back the whole amount in one go if you borrow from a family or friend.

This is difficult for most people. That is why the most popular options for borrowing money are banks and other lending institutions. However, taking a loan from a bank is not easy at all. Ever since the market crash of 2008, many banks have set up very stringent rules. In order to secure a loan, you must meet the bank’s eligibility criteria. Most banks require you to have a steady job with a decent amount of income. Moreover, you will also have to furnish a detailed list of your assets. Banks want to be sure that their money will be returned to them on time. Your credit history and your credit score will both be scrutinized.

For the average person who just needs a few hundred pounds to make it to the end of the month, taking a loan from a bank is out of the question. The processing time for an average bank loan is usually two weeks. By this time, the average worker will receive their next salary.

Taking a Payday Loan

What Is a Payday Loan?

Most people with an average find it difficult to make it to the end of the month on their salary. The inflation in UK has become difficult for the average worker. While prices have risen, their wages have remained the same. As a result, the end of the month is a particularly difficult time. Obviously, you can’t ask for money from your friends or family on a regular basis.

Instead, a better option is to apply for a payday loan. A payday advance is a significantly better choice for people who just want a few hundred pounds to bridge the gap between the end of the month and their next payday. These loans are not given out by banks and other lending institutions. Instead, they are given out by separately registered payday companies.

In the UK, there are many different companies that offer payday advance. Take a stroll through your neighbourhood market and you are likely to find a payday lender. Most lenders usually set up their offices in shops. Some also give payday loans over the internet, making the whole lending process extremely easy. However, before you apply for a payday advance, you should know the basic features. Here’s a brief list:

They Are Given in Relatively Small Denominations

Whereas banks are willing to offer loans as high as hundreds of thousands of pounds (depending upon your income potential), most payday companies do not offer loans exceeding a thouqqqsand pounds. You can easily apply for a loan of around a hundred pounds or so too. Most people don’t need a lot of money to make it through until the end of the month. Two to three hundred pounds are more than enough to get through a week or so. That is why payday companies structure their products accordingly.

Quick Application Processing

The biggest reason why so many people apply for payday advances is that the processing times are very low. Whereas banks take more than two weeks to process a loan application, payday companies process them in a single business day. For people who need a quick injection of cash, this is a much better option.

Lenient Requirements

The eligibility criteria set by payday companies is significantly more lenient when compared with the eligibility criteria set by banks. You don’t need to have a very high credit score, nor do you need to have a flawless credit history. Your income isn’t an issue either. Since the loan amount itself is so small, payday companies only need assurance that you will pay back the loan on time.

Repayment Procedure

Bank loans must be paid back in instalments. Each loan instalment contains a certain amount of the principal and a small part of the interest charged on top. Depending upon the repayment structure, the total number of instalments may vary. However, paying back a payday advance is very different. When you apply for a payday advance, you will also need to furnish a post-dated cheque. The cheque will be dated for your next payday. The company will deposit the cheque on that particular day. Hence, the amount will be automatically deducted from your bank account on your next payday.

However, not all companies follow this policy. Some companies give the loan without demanding any post-dated cheque. These companies hire recovery agents in case you do not make the repayment on time. You don’t want people coming to your house or office and asking for money. Moreover, delaying the payment will also have a negative impact on your credit score.

Taking a payday advance can make your life very easy. If you have to spend more than you earn, you will be left penniless before your next payday. A payday advance can help you get through those days. Nowadays, you can also send in an application online. Just email all relevant documents to the company. Once the application is approved, the amount will be credited to your bank account in one business day.

An important thing that you should know about payday advances is the fact that the interest rate is much higher. Since the company gives you more benefits, they also charge a much higher interest rate. You shouldn’t expect the company to charge interest based on the current market rates.

Invoice Finance Keeps Businesses in Australia Afloat

Invoice financing is really a simple concept when you are using it for a business enterprise. If you want to maximise your working capital while boosting your flow of cash, you need to release cash from accounts receivable.

Invoice Finance

Free Up Your Flow of Cash Instantly

That is why programmes, such as Bibby invoice finance, are always popular amount start-ups as well as seasoned business professionals. You simply cannot operate today in Australia or other parts of the world without freeing up your flow of cash.

Receive the Funding You Need – Quickly and Conveniently

An invoice finance or invoice discounting is similar to a loan as it acts similarly to an advance. Using this approach enables you to inject working capital into a business very fast as you can obtain an advance of up to 80% of what is owed by your clients and customers within a 24-hour period.

While it may be confused with debtor finance and factoring, an invoice discounting is not the same. This type of programme involves funding only and is appropriate for companies who have good control of their credit.

The Initial Step – What Happens

Step one of invoice discounting involves invoicing you clients. Within 24-hours the invoice finance company advances up to 85% of the invoicing value. In return, the remaining 15% of the total amounts invoiced as well as a small fee is returned when customers pay off their invoices.

A Boost to Working Capital

Businesses like invoice finance programmes as they give a company the capability of accessing cash fast – cash that is normally tied up in accounts receivable, all which provides a boost to the working capital you can use.

What You Can Do

With this type of invoice financing and discounting, you can choose to do one of several things in order to grow your company. You have the latitude to raise money for sales growth, become involved in acquisitions and mergers or use the extra capital for succession plans, management buyouts and other creative funding options.

What is ideal about the programme is that a company does not require a real estate investment in order to proceed. Every company that uses this kind of advance minimises its risk and fully utilizes its security for specific reasons and purposes.

You Can’t Help but Feel Positive

The funding limits also grow in line with the sales in order to back up a company as it prospers and grows. Such an advance gives you the benefit of taking advantage of certain business opportunities whenever they surface or arise. When you have this kind of opportunity, you can’t help but feel positive about your future.

See How You Can Benefit Today

You can pay back the amount when invoices are paid and use the lion’s share to make even more money. This kind of “loan” is the type of financing businesses will enjoy in the future. You don’t need to be approved. You only need to show that you have the invoicing and billing available to succeed. You can use this kind of financial programme in connection with such programmes as asset finance, bad debt protection and export remedies. Don’t procrastinate. See how this programme can benefit your company.

Six Must Know Tips When Buying Your First Home

If you’ve found the area that you’d like to live in, you’re probably thinking about settling down and purchasing a home there. This can be a stressful time, though. Finding a reasonably priced home that you like is one thing, but then you need have a down payment ready, as well as secure good financing.

The few tips below are going to help you make sure you’re ready to purchase.

buying home

Check Your Credit

It’s unfortunate but true that many people don’t have great credit. Emergencies, loss of employment, and unexpected medical bills can all ruin credit in a matter of weeks. Even if you don’t think you have credit issues, it would probably be best to check.

There could be mistakes on your credit from institutions you’ve already paid.

It’s usually best for those looking to purchase a home to have most of their credit line still available. In effect, it could be difficult to get a loan if all of your accounts are at their limits, even if you’re paying on time.

Get Your Papers Together

When you do find a bank that can offer you a loan at an attractive interest rate, you want to make sure that you’re ready to go.

Banks seem to be adding on requirements in terms of what documents they will need to see before they finalize the loan arrangement.

Be sure to gather copies of your recent pay stubs, your tax documents for the last couple of years, as well as statements from any retirement plans you may have open.

Have Your Down Payment Ready

Before you start looking for a home, you should have your down payment available. Don’t start saving at the same time you start looking for a home. Generally speaking, the larger the down payment you have, the easier it will be to get good financing. If at all possible, you’ll want to have ten to twenty percent of the price of the home available for a down payment. This proves to banks that you are ready to make a large purchase.

In addition to helping you attain financing, a down payment also reduces the value of your loan, which in turn reduces the amount you end up paying them in interest.

Hire a Broker

Many first time home buyers are not aware just how much easier the home buying process can be with a broker. Mortgage brokers in Brisbane work for you. Their job is to help you be sure that you get the best financing possible. They’ll be familiar with the banks that can help you with your loan based on your credit, and can thus save you quite a bit of time.

These brokers work for you, and generally make their money from the bank that ends up taking the loan. They may not even charge you any fees.

Hire a Real Estate Agent

These agents can also be a great help to you in the process. They are generally much more aware of trends in the industry, and can help you to find the home you want. Hiring a real estate agent could save you a lot of time.

The Advantages of Borrowing Money from a Reputable Payday Loan Business

There are many reasons you may need money before your next payday arrives. Your car could require emergency repairs that you may not have enough money to pay for or you may need to pay an unexpected bill. Whatever you need the money for, taking out a payday loan is a good way to get cash when you need it.

Payday Loan Business

The Advantages of Payday Loans

There are many advantages to taking out a payday loan. The application process is easy and the decision is usually fast regarding your application. In addition, you can take out small amounts of cash and not have to be responsible for monthly payments.

Easy Application Process

When you go to a bank or a similar lending institution for a loan, you have to fill out a lengthy credit application. They will want information about your employment, your income, your past credit history and, sometimes, they will want you to list people who will confirm some of the information on your application.

When you take out a payday loan, you usually just need to supply where you are employed, confirm that you have a bank account and the date of your next payday. A payday loan isn’t credit, so you don’t have to go through a lengthy process to take out the cash you need.

In many cases, you don’t even have to go to the business to apply for the money you need. You can often apply and complete the loan process online. Many payday loan businesses offer online applications and they will transfer the funds directly to your bank account if the loan is approved.

Fast Decisions

Although you can apply for a traditional loan from a bank or another lending institution in order to get the money you need, it often takes a few days before a decision is made on your application. The lending institution will also base their decision on why you need the money. If they don’t believe it is a good investment for them to lend you the funds, your application will be rejected.

With a payday loan, the decision is made in just a few minutes. They will confirm your information and you will usually supply a bank account number for the funds to be withdrawn from for the amount of the loan. Once that is done, the payday loan business will supply you with the cash you need. They don’t care what you do with the money as long as you can pay it back on time.

Small Loan Amounts

If you only need a small amount of money, taking out a payday loan is a better option than applying for a loan with a bank or another lending institution. You can borrow loan amounts as small as £50. Most lending institutions will not consider such small loan amounts. Since they make their money back from interest payments, they want their customers to take out significantly larger loans and make repayments every month.

Doing Business with Reputable Businesses

When you decide to take out a payday loan, you need to make sure you are doing business with a reputable company. While some companies provide loans responsibly, others do not. If you do end up getting a loan from a disreputable payday loan establishment, you could end up repaying too much for the loan or pay fees that you shouldn’t.

Finders Fees

Many payday loan services that match lenders with customers will not charge a fee for their service. You should be suspicious of any service that does ask for a fee to find a payday loan company willing to lend you money. A company’s services are usually paid by the lender, not the customer. If you are charged a fee to match up your payday loan application with a lender, then that could be one sign the company you’re working with is less than honest.

Information Upfront

Everything you need to know about your payday loan should be explained before you borrow money. A reputable company will explain everything about the loan process to you before you apply for a payday loan. This information will either be available on their website or they should go over it when you go to their location to take out a loan.

Disreputable payday loan businesses will often neglect to explain the entire process to you or there may be information they purposely hide. This information could be about the fees they charge or their interest rates. The interest rates can vary between payday loan businesses and some payday loan companies will take advantage of people needing emergency cash and charge extremely high-interest rates.

Legally Compliant

Due to some payday loan companies taking advantage of people in dire situations, the government does have rules to which these businesses must adhere. A legitimate payday loan business will not only be upfront about their process, but their loan process will also comply with the government’s rules and regulations.

A less reputable business will try to work around these regulations or ignore them altogether. Their sole goal is to make money and they will do whatever it takes to turn a profit. Unfortunately, that may include breaking the law.

Do Your Research

Before you decide to take out a payday loan when you need emergency cash, get to know some of the regulations that these businesses must follow. Even if you just know the basics, you will be able to easily tell when a payday loan company is doing business less than honestly. It will give you the information you need to avoid being overcharged for loan services and interest.

A reputable company will not try to force you to take out money that you don’t need. Payday loan companies specialize in short-term loans in small amounts, so if someone tries to push a larger loan onto you, consider going to another company. If you work with an honest company, taking out a payday loan is a good way to get money when you need it fast.

Applying For A Car Loan – What You Need To Know

Getting a car of one’s dream is a milestone everyone looks to achieve. Cars are a necessity, more than just a need. They make one’s life easier by shrinking the distances and reducing the travelling time. Although a car is a necessity and any four wheels can fulfill it, everyone thrives for a perfect, most comfortable and beautiful car. As our wishes tend to increase when we select a car for ourselves, funds usually seem short and this is where car finance can help.

Like all other sectors, technological advancement has made the process of car finance easier as well. You can now get your car financed online over the internet. The following tips will help you through the process of online car loan if you do not have an experience of using the facility before;

Applying For A Car Loan

  1. Online car loans are usually cheaper as compared to one applied otherwise. As the competition in the online market is increasing day by day, the online dealers offer cheaper rates to attract more and more borrowers.
  2. You have the choice of browsing through the websites of all the companies and chose the best car and best deal available.
  3. A comparative analysis for different cars and loan rates can be easily done. You can ask a number of companies to submit their quotes for as many cars as you want.
  4. Before you start browsing and inquiring for the loan rates, make sure you know your credit score. The credit score is the only factor that can get you cheaper loan. If you have managed to maintain a credit score of above 625, dealers will not hesitate to extend loans to you and the interest rate will be relatively cheaper.
  5. In case you do not have any credit history, it will be equally bad as having a low credit score. The situation can also lead to expensive loan installments as the risk for the lender is on the higher end.
  6. Online application does not mean that you do not have to submit your documents. After submitting the online forms, start collecting your documents such as job appointment letter, salary slips, papers of any property if you own etc. These documents strengthen or weaken your case.
  7. Be very careful while selecting a right car that meets all of your requirements. You can get both used and new cars. Make sure you do not select a very old car as it may increase your maintenance charges.
  8. Online loans can also be used for improving one’s credit score. You can secure a car loan and pay back within the stipulated time, this will eventually help you improve your credit score for applying more loans in future at cheaper rate.

Documentation requirements for getting an online car loan may not differ much from the others but it does give you an access to cheaper loan. You can sit at home and compare between different makes and quotes. Take your time and select the right deal.