How to get a loan for small businesses

 

Whether you are planning an expansion, improving your existing small business or just starting a business, a small business loan can give you the necessary financial support. Not all businesses can get small business loans, so you have to be very careful when applying for one. Making sure that everything is as it should be and placing your company in the best possible way will improve your chances of obtaining the loan.

steps

steps

1) Get a copy of your credit report to make sure it is correct – you can even get a copy of all the credit reports from the companies in your country. Most financial institutions go to your credit report while reviewing your loan application.

2) Ask the financial institution through which you want to get the small business loan for a full list of the documents needed to apply for the loan. Also ask the additional information that the borrower requests for your loan application. Each institution has different requirements for small business loan applications.

3) Collect the financial documents and the information you need.

  • Borrowers can ask for a business plan, business history information on leased properties, the number of owners who have invested in a small business, personal financial statements of the owners, flow projections of the home and CVs of the business owners.
  • Other information that may apply includes the three-year financial statements, accounts receivable and payable and the calendar of debt.
  • If you are going to open a business, you may need to provide the projected balance sheet of the opening day.

4) Write out a loan that contains the exact purpose of the loan and the exact amount you need to borrow. Again, every institution has its own requirements, but a few extra requirements can include brief biographies of all individuals in administrative posts, a discussion of the techniques of marketing your company and the market position and legal structure of your company.

5) Establish a meeting with a small business consultant at your financial institution and bring together all the information and documents you require. At the meeting, review the documents with the consultant to ensure they are in order. Although it is an optional step, it can be a good idea if you have never applied for a loan.

6) Submit the application and all supporting documents to the correct person or address.

7) Waiting for the news from the financial institution.

8) If a borrower rejects your application and you are in the US, ask him if he can offer you a loan under the Small Business Management Guarantee Program. With this program, the SBA guarantees the loans that the financial institution could not grant. If the financial institution can do so, give permission to send a loan request to the SBA, which will fully review your application. If you qualify, the SBA will contact the borrower. Then you get a loan from your financial institution.

9) If the borrower rejects your application and you are located outside the US, ask your financial institution what options you have available.

Mortgage loan: when it is convenient

 

When it is necessary to purchase a property on which a mortgage is already levied, one of the possible solutions for the clients of the credit institutions is to carry out an assumption of the mortgage already in place, which involves having to take over the obligations assumed by the contractor originally from the financing. But when should the mortgage be accepted ? Let’s try to understand more closely how this option works by briefly explaining the basic mechanism of this type of loan, which basically represents a contract between the original borrower of the loan and the person interested in buying the house for sale.

Types of take-over

Generally, cumulative mortgages are accepted in Italy : in this case, the mortgage-backed mortgage is linked to the adhesion of credit institutions that do not completely free the original borrower from their obligations. According to this method of acceptance, therefore, those responsible for the mortgage debt are both the original contractor and the successor, and if the latter fails to pay the installments, the responsibility for the repayment falls on the original contractor.

Banks prefer this method because they feel more protected, but it is not the only type of takeover: in fact, in the case of the loan agreement, the renunciation of any responsibility on the part of the original contractor was expressly requested, in this case the accollo is classified as a liberating type, so any reimbursement and burden is borne by the successor.

Advantages

The mortgage is governed by Article 1273 of the Civil Code, does not provide for disbursements of money to start the practice, allowing the successor to save some costs of igniting the mortgage such as notary costs, also if the accollato is a company such as the construction company, the amount that the borrower will have to repay will not be as full as in the case of a private individual, but may be at most 80 percent of the residual debt . The mechanism formally takes the lead at the time of the deed; however, it should be stressed that banks may also not agree to the takeover, in the event that the successor is deemed unfit because it does not meet the requisites required from the point of view of the credit capacity.

When it’s convenient

Now we come to the nodal point: when should it take a mortgage to take over? In fact there are some aspects to which attention must be paid before requesting this option from a bank. First of all, it is necessary to make sure that the accolade is in order with the payments , since otherwise the substitute would find himself against his will to suffer the consequences of his position as a bad payer, as if he were the debtor himself.

If the accollato was a construction company, the latter could also ask for the reimbursement of part of the expenses incurred to light the loan itself, and in this case it would significantly reduce the savings on expenses and financial charges, which actually represents one of the strengths of the convenience of the take-off. In this case, therefore, it is necessary to be aware of the type of loan stipulated by the manufacturer, and of the type of expenses to be met, including commissions, rates and all other charges, asking for a quote to assess whether the takeover results be really cheaper than taking out a completely new mortgage.

The last aspect to which attention must be paid with regard to the convenience of the takeover are the conditions applied by the credit institution , which could for various reasons not be able or willing to apply the original conditions of the loan to the borrower, requesting otherwise similar to those of a mortgage contract concluded from scratch.

Seniors and the financing of their retirement: is the senior loan a solution?

What is the purpose of the senior loan?

Whether in well-being, tourism, sports, fields of activity and markets have adapted to the evolution of society. Today, there are many products that adapt to this age group and allow seniors to flourish during their retirement. But, well known, the problem of seniors correlates with that of small pensions. While many activities, care, are now within their reach, but many are those who can not afford excesses.

The senior loan, a new windfall for seniors

The senior loan, a new windfall for seniors

Indeed, seniors have great difficulty in obtaining financing because of the problems of insurance-borrower. That’s why banks and insurance companies have developed many products that adapt to this new clientele, such as senior loans. In addition to cultural activities, it is becoming more difficult for seniors to borrow.

The senior loan is therefore a boon for seniors. It allows them to finance their projects, reorganize their existing loans or simply have cash. There are also bonded mortgages. This allows you to obtain capital (within the limit of the value of the property and the level of indebtedness) and use it to buy back credits, carry out development work, make a donation, invest in a new property, obtain a capital, helping children, or preparing his estate. Generally subscription is from age 60 and rates are fixed.

Many banks have adapted their offers for this age group.
Some even target this promising new clientele with senior-specific loan formulas.

On the net you will find banks that offer senior loans.
Take the time to compare offers, do not rush on the first offer.
To choose a loan is to ensure a quiet and pleasant retirement.

Mortgage loans: mortgage loan guide

 

The mortgage loan , also known under the name of mortgage credit , is a personal financing solution that requires the subscription of a mortgage as collateral on a real estate property, in order to obtain a certain capital. Technically, the type of mortgage loan is included in the category of personal loans to the private sector, and does not present substantial differences regarding the criteria for the payment of capital, the total repayment plan or the calculation of the monthly payment: to constitute differences compared to traditional types of loans it is precisely the request to subscribe a mortgage on the property held, on which the loan has been repaid in the event of insolvency on the part of the debtor.

Let’s try to see in more detail everything you need to know about mortgage loans, the various types, the necessary documentation to be presented and the convenience or not for the applicant.

Types of mortgage loans

Types of mortgage loans

Financing companies and lenders propose different solutions that fall under the type of mortgage loan, but which can be summarized in three categories :

  • Life loan
  • Home mortgage
  • Mutual liquidity

At first glance, the mortgage loan is very similar to the traditional home loan, through the provision of a capital after signing the mortgage on the property borrowed, which is usually twice the percentage of the real value of the house: the difference is constituted from the value of the property to be mortgaged . Technicians sent by the creditor make an estimate on the property to establish its effective market value and the corresponding amount for the loan, which must always be proportionate to the salary of the applicant. Generally the maximum transferable sum is one third of the sum received each month.

The three types of mortgage loans present slight differences in repayment characteristics and plans: the home loan can also be granted to bad payers , while the mutual liquidity provides for a maximum amount equal to the value of the property burdened by a mortgage. The latter is suitable for those who want to obtain a loan to open an activity in the absence of guarantees, while the life annuity loan is suitable especially for those over 65 who need a sum to meet urgent and unforeseen expenses. The amortization plans see customizable installments for the home loan, while for the life loan in general, the repayment period varies from 5 to 25 years. Finally, the mutual liquidity allows to obtain up to 75 thousand euros based on the value of the mortgaged property.

 

Documentation

The mortgage applicant must be the owner of a real estate , on which the mortgage can be signed as a guarantee for the creditor body, and the debtor remains the owner of the asset except in the event of insolvency, as regulated by articles 208 and following of the Civil Code . The applicant must go to the credit institution bringing with him copies of these documents :

  • Certificate of ownership of the real estate
  • Work contract
  • Valid ID and tax code

Technically, the signing of a mortgage is also possible for other goods of material properties, such as motor vehicles, or future assets deriving from an inheritance, but its most widespread application is linked precisely to the house. In the legal language the mortgage is indeed a

real right of guarantee, established in favor of a creditor, on assets or rights related to real estate or registered furniture owned by the debtor, or a third party that guarantees it, in order to ensure, in the event of insolvency, with forced sale of the same ones the fulfillment of an obligation.

Convenience

Convenience

Who should take on a mortgage loan ? The fears and risks associated with this type of operation have been the subject of numerous television broadcasts, not so much for the traditional mortgage, which remains the preferred way to buy a house, where the mortgage is directly subscribed to the building borrowed until the end of payment of the entire value, when the recipient of the loan becomes the owner of the asset.

On the other hand, mortgage loans require a mortgage on a property that is not burdened by a similar loan: those who have an urgent need for cash can obtain up to 50 thousand euros , and if they have lost their jobs and want to open a activity, mutual liquidity can be a risky solution but sometimes necessary to start again.

In any case, the advice is to read the mortgage loan agreement in detail , before signing it, to ascertain the sustainability of the repayment plan and the monthly installments. The foreclosure of the house by the collection company in the event of arrearage is not possible only if it is used for business use, the debtor resides there and is the only house he owns: otherwise Equitalia can act if the credit claimed exceeds 120 thousand euros.

Calculate Loan Without Collateral

Our calculator

Our calculator

family Calculator is Easy to Calculate Loan to See Interest and Total Cost of Loan of Selected Period.

Using the calculator is very easy:

  • Choose a slider for the interest rate offered by the lender,
  • Choose a repayment deadline;
  • Choose a loan amount;
  • Choose the type of repayment plan: If you want an equal share of the loan principal or mobile phone with bulk sized payments.

The loan calculator then shows exactly how much you have to pay back in a month, and what the loan balance is at a given time.

When choosing a suitable loan offer, our calculator will definitely help. So you can accurately calculate the cost of the loan and can plan your budget breakdown.

Sometimes it is hard to imagine what a loan repayment is actually, because only “10%” does not give much information and so much you can’t borrow even to guess how expensive you really are.

With our visual I give a loan without an unsecured calculator, you can get a clear picture of the actual expected cost down and can plan your cash flows.

PS: If you want to calculate Interest Amounts, we are also a special interest calculator.

How to choose the best loan?

How to choose the best loan?

The goal of family is to help explain the bond issue, and we have several different tables that rank Estonian loan companies. Since loan companies are ranked according to their cost, you can get credit comparison tables very quickly to find the most appropriate solution.

Every situation is different in terms of credit reasonable, but you should always compare the options, otherwise you might end up with too expensive credit runs out! Avoid comparing it with loan terms companies.

Loans total cost

Loans total cost

Keep in mind that only annual interest on the loan is not a sign of associated spending.

The annual percentage rate of charge refers to the actual cost of the loan – it covers the entire repayment period, the interest rate loan and other additional costs.

Below we give you some tips to determine the total cost of the loan and find the best loan offer.

Lowest Rate = Most Affordable Loan?

The lowest interest rate does not necessarily mean that it is the most favorable loan offer.

Compare April lenders – the smaller the part, the better the loan. (For example, an annual loan rate of 15% and an effective rate of 58% more than a loan rate of 20%, but an effective rate of 56%).

contract management

Some lenders charge a monthly fee for contract management.

In general, this amount remains within the range, although a few euros, but in the long run the loan may be appropriate, so a small fee to accumulate quite hefty. Not all lenders ask, but it is wise to choose a loan provider who does not want a monthly management fee.

Shipping cost bills

Although it is no longer, some lenders send invoices by mail rather than electronically.

It is usually possible to apply for an electronically sent, which does not involve any additional costs, but if the loan provider has a habit of sending bills by mail, and you do not ask the opposite, it can give long-term credit periods tens of euros extra.

Loan award fee

Many loan providers tend to ask for a loan.

Unsecured loans generally do not have such fees, as well as the amounts are small, but the real estate loan contract fee can add up to hundreds of euros, notary fees, on-site valuation fees, insurance and other expenses that can be quite high on prepayment costs.

Calculate the cost of a loan, remember that all the extra costs that different lenders have. All these factors can make a seemingly favorable loan offering quite expensive, so it should be considered in advance.