BORROWING money to start a small business can be very difficult if you don’t know the right people or entities to approach. Looking for funds for small businesses can be a little tricky considering that the amount of money required is neither big or small making it hard for the borrower to look for the right lender. If this is the case the amount that you can get from a PAYDAY LOAN lender will surely not be enough while big financial institution may not cater to the amount being borrowed.
Finding the Right MONEY LENDER
Except for the big banks there other small local banks that caters to a loan applicant who would want to start a small business enterprise. You would only have to know where to look for them. Small banks are a better choice to file a loan application with considering that they have lower interest rates compared to other types lending institutions. Also this type of lending institutions requires very little documentation from its applicant making it easy for the borrower to get his loan. Another source of loan can be your own CREDIT card. Credit cards usually allow its holder to withdraw money for as much as what the card limit it. If the limit of the card is quite sizable, then it can be used to fund a small business entity. There is also what is known today as alternative lending institutions. This is basically new in the financial market but they are quite popular among small businessmen. Alternative lenders main attraction is to provide businessmen loans which can be availed of faster than what an average bank can offer. Aside from this their loans are very flexible making it easy for the recipient to manage his business financial obligations. Another characteristic of alternative lenders is that they can easily be found online. There are quite many of them right now and they can offer instant cash loan that would be hard to resist. Although they require a higher interest compared to the conventional local banks, they are a lot more approachable and can guarantee the release of funds at a much shorter time.
Most people think that just because they are earning way above the average income, there is really no sense of worrying that they will fall into some kind of financial crisis. On the contrary, people who earn over the average statistical income are more prone to fall into some kind of a financial dilemma. It is because that they fees that the more money they make the less money problem they will have and this kind of thinking would usually lead them to overspend. If your monthly earning is more than enough, it would be best that you live within or more ideally below what you earn. Leaving within and/or below your means is a very ideal financial situation because it allows you to prioritize your expense. Prioritizing your expenses will most likely bring you towards building enough funds for the security and comfort of your family.
Stay on a Budget and Make do With What You Have
Staying on a pre-determined expense budget and living with what you have is the first rule in preparing for a bright financial future. Always make sure that you stay within the budget when purchasing groceries and other necessities. Avoid frequently using your CREDIT card and instead use cash to for most of your purchases. Very little liabilities on the credit card will allow you to zero them out thus making you credit card debt free. Living and making do with what you have is also a plus in preparing for you and your family’s financial future. For instance, instead of getting a new car every three years, you can probably make the upgrade every five years. These are simple things that you can do to guarantee a good financial future.
Living within and below what you earn will guarantee a surplus amount from your income. A sizable amount of this surplus should always go to saving. Cliché as it may seem, having a sizable amount of savings will ensure that you will not be caught flat-footed in the event that an unexpected expense arises. Also this will prevent you from BORROWING money from a MONEY LENDER who may just take advantage of your financial situation.
Many people today are filing for bankruptcy caused by not seeing the early signs of becoming overcome by debt. It is much later that they realize they can no longer pay off their liabilities thus falling into a financial crisis. The only way to secure a stable financial future is to take charge and be efficient in controlling finances. If you have been complacent before relative to handling your finances, it is about time to take a closer look of your money situation. If you fall into a debt trap, remember that there is no easy solution to remedy these financial woes.
Find a Way to Become Debt Free
Taking control and efficiently managing your finances means that you should be debt free or at least be able to manage your debt in the most efficient manner. Remember that there is no easy way to get rid of your liabilities but it is not impossible. There is always way to fix your liabilities as long as you are willing to work on it. For instance, getting rid of your CREDIT card and finding a way to immediately pay the liabilities it incurred is a very good start. Controlling the use of credit card is a major way to incur surplus on your monthly income.
Financial Control and Organization is a must
Not balancing the ratio of your income and expenses is a sure way for you to fall into a financial disaster. Keep your finances organized by making sure that the ratio between your income and expenses is always feasible. Make sure that you keep track of your monthly expenditure and that they will not exceed of the amount of money that you make. Always make it a point to balance your checkbook to be sure they are not overdrawn. These are simple organizational financial skills and should not be too difficult for you to do.
People never seem to get the idea of what overspending is. To fully control and manage your finances, avoid overspending. All one has to do is always plan ahead on what to purchase. Make sure that all purchases are necessary and within the budget and always think twice before making large purchases.
We all know that we live in a cash free world and that most purchases are usually paid with CREDIT cards. This is healthy sign for the economy but for people who are complacent when it comes to managing their finances, this is a big problem. People today use plastic as though they have all the money in the world. The wake-up call is when they realize that they can no longer pay the liabilities caused by the credit card. Even intelligent people seem to see credit cards as a free access to buy anything until they finally receive bill. The person finds himself up to his neck in debt and if no financial solution is at hand, the last recourse is to file for bankruptcy. Credit cards are perhaps the major cause why most people end up neck deep in debt or worst bankrupt.
Control the use of Plastics
People would say this is easier said than done. But if you are really bent on staying debt free, you should realize that the only way to do this is to control the use of your Credit cards. Like any addictive substance, one can easily wean himself away from using plastic. If you have several credit cards, your first step is to cut up all your cards and leave just one for your personal use. Leave a card that that has the least credit limit. This way, you will be forced to only use the card only to purchase necessary items. This will also make you start analyzing your current financial situation and start to balance your income against your expenses.
Set up a Credit Card Repayment Plan
Controlling the use of the credit card, will allow you to set up an efficient way to pay up whatever is left of your credit liabilities. To do this you will have to learn how to manage your income against your expenses. This may be hard at first but you will soon find a way to efficiently handle your monthly income against your expenses allowing you to pay off most if not all of your liabilities caused by using plastics.
Hard money lenders are new breed of lending entities. They are a far cry from the conventional banking and other financial institutions that offers loans to individuals and businessmen. Hard money lenders are mostly a group of investors or a single individual whose business is to lend money to prospective borrower with the condition that he (the borrower) covers the loan with a high valued property. A conventional MONEY LENDER such as a bank would usually be interested in the borrower’s CREDIT score including his capacity to pay the loan. Conventional lender is also more interested in the credit history of the loan applicant. Also the approval for a loan by a traditional lending institution is usually a very slow process.
How Hard Money Lenders Differ
BORROWING money from a hard money lender on the other hand is totally different. Instead of taking into consideration the credit score, history and capacity to pay by a loan applicant, their major concern in approving the loan is based solely on the value of the collateral that the borrower will offer to secure the loan. The money provided by hard money lenders are referred to as hard money. This is because the condition provided in the loan is very strict and hardly flexible. Aside from this the loan provided by hard money lenders will only be worth about 70% of the value of the property that is securing the loan. The main agenda of hard money lenders is not to be sure of whether the loan can be repaid or not but more on whether the value of the collateral left by the borrower would prove to be profitable for them.
The Advantages of Using Hard Money
There are mainly two major reasons why some borrower would prefer to borrow from hard money lenders. Since hard money lenders are not a financial institution and covered by strict corporate laws, they can release the required loan at a much faster time. The other reason is that as long as the borrower can secure the loan at high value property with the help of the moneylender review , negotiating for the loan can also be quite profitable for the loan applicant.