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Improve Your Chances Of Getting A Business Loan

Is your money shrinking and you feel like you need a business loan? Too many people feel the pressure of throwing together a loan package quickly. These are three identifiable and proven ways to improve your chances of getting a business loan.

Apply for a business Loan with your Business Name Instead of Your Given Name: For instance, use your business loan, “Sarah’s Block Company” versus your given name – “Sara Smart.” The reason you need to apply for a business loan in your business name is because it is a business loan – Not a personal loan. The banks and loan institutions are more than happy to help your business with a business loan, but they shy away from making a business loan to a person. Having a business that is a corporation or LLC improves your rate of success – For example, an S-Corp, C-Corp, or LLC.

Sole Proprietors have difficulty as business owners getting a business loan because they lack the same credibility of being identified as a ‘business’ that goes with a business formed as a corporation – A business that is complete with By-Laws, tax ID number and business bank account. A business portrays the ‘image’ of success better than a person does. It’s because of that, that lending institutions work better for those business people. As a sole proprietor, a person ‘appears’ to be acting in their own interests as an individual-instead of a business. Loans to sole proprietors are rated on the personal credit history and not a separate business history for the credit reporting agencies. That doesn’t look good to loaning institutions.

Even Corporations can mix up personal and business debt. It’s an easy trap to get caught in. Let’s say that you own a construction company and you get a construction loan to develop a piece of property, but use that money to make repairs on your personal home. Although there are multiple ways to justify this, the financial company won’t see it that way. Neither will the IRS agent at tax time. And there is a double penalty for doing this too – If you are audited and have mixed your expenses the IRS may choose to ‘dis-allow’ ALL your business expenses. You can see quickly that this could become the stuff people describe as, “the stuff that hits the fan.”

There are countless examples of mixing business with personal expenses – let’s say you get a business loan for a business computer, but you have some extra cash from the loan. You may think to yourself that you could get that new computer for the kids with the extra money – Bad choice.

On the other side of a business loan is a credit card in your business name. If you practice the same behavior with the credit card that you do the business loan, you will experience the same results.

The second thing to happen from this is that now you are taking a chance on damaging your personal credit score. This lower credit score affects all things with the passing of time. When you truly need the business loan – at a later date – You may not qualify.

Credit scores are a fickle bunch. They depend and rely heavily on past performance, previous and current balances and how close to your credit card limit your balance is (for example, do you have a credit limit of $500, and have charged $480 on that credit card? Consistently? This means that you are ‘always’ in debt at over 90 percent of your credit card limit).

At that rate, with a few of those over 50% of your total “AVAILABLE” balance listed on your credit history, your business loan approval rating goes down to about a zero. Available balance means the total balance you are listed as having access to – For instance, your balance is $250.00, but you have an available balance of $500.00, so (in theory) you could charge up to $500.00.

Don’t do it – Never charge your credit card balance over half of the total balance available to you. Even $1.00 will make a difference on your credit score (a negative one).

Another thing you might not know about credit scores is this: If you want to get the best deal on a car or any other item and you use a ‘credit broker,’ to help you. The job of a credit broker is to take your personal and business Identification and go shopping with your credit for the bet deal they can get you. As your credit is ‘hit ‘ with each inquiry from the individual ‘dealers,’ your credit score goes down an average of 2-4 points per inquiry, per credit bureau. That means if you went car shopping and your credit broker found 40 different credit buying ‘deals’ for you, your total credit score would be reduced approximately 80-160 total points per credit reporting agency. If you were marginal good credit before – Now your credit stinks. Plus, as your credit scores spirals down, the interest rate you qualify for goes up – Whoa! It’s a game for them. It stinks for you.

The ultimate outcome from all of this is that now you are ready to get a business loan. As the owner – or principal of your business, your banker needs your personal credit score to judge whether you are a good credit risk for your business loan. To complete that business loan with any success, your score must be a good one. This is a great thing to remember when you are beginning in business. It’s how you protect yourself that counts.

Get more than one business loan application from more than one lending institution – Not just one. Imagine that this is your business: You are a corporation with a clean credit record. You are new to business and have not yet applied for a loan in your business name, so you have no business history in debt repayment to reference for a business bank loan. Your company is expanding and you need to take it to the next level. You need a couple of additional employees and some specialized tools to manufacture and produce your product for the additional customers you have added to your lists.

Where in the world will you go to ask for that money? You have no loan history.

Don’t let a lack of business loan history stop you. Go ahead and figure out what you need to move forward and ask for several small business loans instead of one large business loan. Your chances of business loan approval are dramatically increased by using this method and you will gain experience with creating a loan history easier for about the same cost as one large loan for everything.

You may be better off to apply for an unsecured line of credit that could be based on your stated income versus a full-blown loan application process. Sometimes that’s key to whether or not you get the money you need and the approval you want. Not only are these lines of credit easier to get, because they offer fewer restrictions, but they will give you a business history to reference the next time you need to expand and grow your business.

Personal Loans For Instant Personal Use

Debts are inevitable especially if we need more than we are making everyday right? But this will not happen if you manage your finances well. If you are in this dilemma, there are always ways you can consider to help and assist you and make it through. Don’t lose hope because there are many wonderful things in the world and exhausting yourself is not the way to do it. Though financial difficulties can become a burden sometimes, just remember that it is a way to save something and put things in perspective.

The good news is that there are loans if you really need the money. Loans are considered debts from financial institutions. Financial institutions lend you money for whatever it may serve you best. In return, you submit your collateral as your pledge to pay. The good thing about loans is that you are allowed to pay it at a given duration provided you pay on time together with the interest. You see, both parties benefit from these transactions. This is one of the reasons why loans are very popular these days. So, if you are really suffering from any financial difficulties and you need help, you should not worry. There is no reason for you to perceive this situation as a dead end.

In finding a solution, you can always start with, identifying the loan you are going to apply for. There are two types of loans which includes secured loans and unsecured loans.

Secured and Unsecured Loans

Secured loans – upon application, you should first submit any of your property for pledge or promise purposes; some loans under this include mortgage loans, auto loans subsidized loans.

Unsecured loans – include credit cards, personal loans, corporate bonds and many others.

Now that you know the types of loans, the next thing to do is to look for tips that can help you get through this crisis in your life. In this case, if you consider personal loans for personal reasons, you should follow some tips and guidelines to keep you on the road. To get you settled, you should first ask for the requirements involving such because it will go through a process based on the company regulations. So, the least you can do is to submit the requirements and wait for the approval especially if you really need the money. You can start by compiling the following documents:

1. Identification cards (any form of ID testifying of your existence and identity)

2. Employment information (including payrolls)

3. Tax information (make sure you are paying your taxes for higher chances of loan approval)

4. Bank statements and other proof of billing.

There are really times that we have to deal with certain unwanted situations. But then, we don’t have enough money to do that. The truth is that there is no reason to give up for there are various measures that can help you during these difficult times. Remember that it is normal for you to encounter problems in your life.

Want Unsecured Debt? Loan Solution!

Generally debt certainly asked guarantee. But now there are products Loan (KTA). As the name implies, these loans do not require collateral or collateral. So if you borrow money in the bank is usually a home warranty certificate, decree, or other reg. But for this KTA product does not require any of that.

Another term unsecured loan is a personal loan. The loan amount that can be raised to USD 200 million. For flowers vary from 1 percent to 2.3 percent per month. Ease, given flowers are flat (fixed).

These credits can be filed by civil servants, employees, entrepreneurs, and others. Unsecured loan can be used for home renovation, additional capital, education fees, wedding expenses, medical expenses or other needs.

Loans without collateral it has some advantages. Here are some advantages of this KTA.

-Without a guarantee.

-The process is quick.
Approximately 7 to 14 working days.

-Terms relatively easy.
Usually only need copy of ID card, tax ID, paycheck and savings accounts three months. Some banks only require identification card and credit card.

To select a suitable unsecured loan, follow some of these tips.

1. Choose the lowest rate. You compare some unsecured loan product that you seek. And select the low interest rates offered. The lower the interest rate, the better for you.

2. Choose a trusted bank. Choose a reputable bank and operates long. This is to ensure that your credit will not have problems later on.

3. Learn the cost. Ask clearly and in detail what fees are attached to products such loans without collateral. Costs typically appear as administrative costs or fees.

Product unsecured loan, which is having second thoughts Loan Mandiri. This product is issued by Bank Mandiri. Special, in addition to certainly without collateral, this product also has a credit limit up to USD 200 million and the insurance.