Tag Archives: unsecured

Commercial business loans: easy finance for brisk business

May 20, 2019   Auto Loans

A great deal of transactions in business is solely based on the availability of business. Whether you are starting a new business or want to expand the existing one, everything revolves around the availability of finance. It is only systematic investment of capital that you can make certain profits. What if you do not have the finances? However, these are trivial matters that can be sorted out with the help of commercial business loans.

These loans are meant to provide monetary assistance, which will eventually help you to tackle all your business needs. You can use the loans to serve large, medium or small business needs. You can use it to cover expenses on needs like purchasing and installing machinery and tools, procuring raw materials, transportation of goods, paying wages to the employees, advertising and marketing, paying away old debts and so on.

Like any regular loans, these loans can be sourced in secured and unsecured form. Secured form of the loans can be availed only by pledging collateral and owing to the presence of collateral; you get to derive a bigger amount at comparatively low rates. The loan amount is made available for a period of 5-30 years and through the loans, you are free to borrow any amount in the range of £50,000-£ 300,000.

Unsecured form of the business offers a limited amount in the range of £5000-£25,000. There is no need of pledging collateral to derive these loans. The repayment term is short and usually spans over a period of 5-10 years. Even though the approval comes instantly, you have to pay a slightly high rate of interest due to its unsecured nature.

Prior to the availing of the loans, you have to prepare a detailed report concerning these loans. It is important to provide details such as amount required, feasibility of your business, gross annual income, credit references, financial statements etc. The more the plan is simple; it gets easier for the lender to approve these loans.

Commercial business loans, as of now are also available online. To avail the loans, you just need to fill a simple application form with the relevant details. On further comparing and contrasting the quotes, you will be able to get a better loan deal.

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Guaranteed Unsecured Loans, A Good Idea?

May 17, 2019   Loan Tips

Guaranteed unsecured loans are meant to speed up the process of finding approval for people with a bad credit history, but are they a good idea?

The first thing you need to understand is that lenders offer you interest rates based on the level of risk the lender feels they are taking.

The conditions of these offers are already a higher risk, without the added promise of approval for all. See, a secured deal gives the lender some form of collateral in the case that you fail to make your payments, and because the lender has this assurance they offer you, the customer, a lower interest rate. But, because we don’t have any kind of collateral, your interest rate goes up.

Then you add into the equation your bad credit history, which means the lender is taking a much greater risk that they will not be repaid. This will raise your rates a great deal more.

And then on top of all that when you add in the promise of approval for everyone for guaranteed unsecured loans. This means that people with worse financial histories than what you have are approved, and the interest rates offered typically reflect that risk the lender is taking.

Of course, if you have terrible credit and no time to try and seek out approval and receive multiple rejections, then this price may still be worth it for you. If you do manage the payments well and make them on time each month this will even help you build up your credit history for the future.

However, if you have the time, you can still try and apply at more traditional lenders. If you have a job that you’ve had for a while and have lived in the same area for a good period of time these things will help establish you as a stable customer. It will also help if you can explain why you’ve had financial problems in the past, such as medical bills, divorce, or other experiences, and some things you’ve done to help rebuild your credit since then.

If you can find a more traditional offer you will still have high interest rates, but lower than what you’ll find with guaranteed unsecured loans.

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