Posts Tagged ‘Loans’

Online Unsecured Personal Loans

Wednesday, February 11th, 2009

An unsecured loan is a loan that does not ask for any collateral as a security for the funds borrowed. By and large, the interest rates on these loans are far higher than the corresponding secured loans due to their high-risk profile. An online unsecured personal loan is one of the unsecured loans whose interest rate is very steep. Before applying for one, read on to find out all about this type of loan and decide if you need one.

An online unsecured personal loan is also called as a Payday loan or a Cash Advance loan. These names imply that this is a short-term loan that you can use to meet your financial requirements till you get your paycheck.

These are the distinguishing factors of an Online Unsecured Personal Loan:

Loan amounts range from $100 – $5000.

Loan duration is very short, generally 7, 14, or 30 days.

Very high interest rates, starting from $10 to $30 for each $100 borrowed.

Prompt approval time, normally within an hour.

Loan amounts are transferred into your checking account.

Loan funds are withdrawn from your checking account..

Some lenders offer 4 term extensions.

You should opt for an online unsecured personal loan only if you have no other means of finance. If you sum up all the fees levied on this loan, you may be charged as much as $300 on a $1000 loan borrowed for a week. Some states consider these offers as illegal and the state attorney generals are closely monitoring them.

However if you opt to go for an online unsecured personal loan, implies there are no other sources of funding available to you. This happens if:

You have just filed for bankruptcy and need cash urgently.

Your credit rating is in a deplorable state that nobody is willing to loan you even a small amount.

You have exhausted all the normal sources, your credit card has reached its limit and the cash advance limit is exhausted.

But remember, caution is the watchword when it comes to applying for these loans. Ensure that when the loan period is over, you will already have funds in your account or else your situation could worsen.

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Small Business Loans

Wednesday, February 11th, 2009

If you need money to start a small business, this article covers some essential facts about this type of loan.

As the government grants are very few, quite restrictive and quite difficult to get, the only likely solution is to go for a loan to get the money to start your business. But for that you need to give some security.

What Do You offer?

To get credit, you must provide a security. This can be done by offering your property or car as collateral to the loan, till you have completed paying it. So effectively, this is similar to any other loan. This fact by itself will make a huge difference to the amount you get and the repayment conditions. So it is important to write down a detailed plan of all your business requirements to commence operations. Know the following: your projected expenses, fixed cost, profit, target market, inventory, cash flow and an estimate of your business growth in the initial 5 years.

Your Internal Look will mirror your external look

Get your business plan together, photocopy them, and keep them properly in a nice folder to show it to the banker or the lender when you actually begin looking for the loan. Since you have taken the trouble of preparing a business plan, you will feel great and present your positive image to your lenders, who are the short-term partners in your business.

Be Ready

The last thing you should do is visit a lender without taking anything and ask for a loan. They’ll ask you many questions, which you can answer if you carry a well-formulated business plan. Don’t start the negotiations till you know the answers to all the questions that you’ll be asked or at the minimal, as many as you can. If you are looking out for a loan, then find out the current rates, the requirements and any little trap that that can help you in securing a good deal.

The Little Millionaire

It is great to take cues from the rich, even if it is just to get ready for the next step of the process and being able to create and fulfill your dream. This will give an impetus to your small business and before you know it, it may something much bigger than what you had intended.

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