Personal loans
Personal loans resolve life’s little crises and allow for life’s sweet indulgences
It seems like time and money are mutually exclusive: You never have both at the same time. Stay at home moms enjoy being able to take care of their families and homes, and being able to respond to emergencies. However, without a full-time salary, vacations, home repairs, new furniture and summer camps may have become out of reach. When the refrigerator dies, what may have once been an inconvenience, can become a crisis.
That’s where personal loans come in. No other loan affords borrowers the flexibility like that of personal loans. Unlike most loans, personal loans can be used for anything from urgent needs to desperately needed vacations.
In the past, many people felt comfortable pulling out a credit card to meet their financial needs. But in the new economy, many credit card issuers have raised interest rates and lowered credit limits. Today, consumers are working hard to pay off their credit card debts and are applying a new restraint on credit card spending. Personal loans, however, are less expensive than high-interest credit cards, and, with a good or excellent credit score, the interest rate can be as low as 6.99%.
The convenience of personal loans makes them an attractive option. Personal loans can be obtained online and deposited into the borrower’s bank account in as little as 24 hours. When the family car breaks down, the roof leaks or the washing machine dies, convenience and a rapid turnaround are a necessity.
The flexibility of personal loans allows for home improvements like landscaping projects, refurbished bathrooms or professional painting – the investments real estate agents encourage homeowner to make for maximum return.
When all the appliances are functional and the house is all spruced up, personal loans can be used for a much-deserved vacation. Using personal loans for travel allows time to plan the ideal trip and take advantage of the best bargains. Studies show that children who travel get better grades and have a better grasp of geography and foreign languages.
Alternatively, personal loans also provide the option of sending the kids off to summer camp while their parents enjoy a relaxing, romantic getaway of their own.
In short, personal loans save money, save grief and allow for the sort of things we all need and deserve.
Unsecured Business Loan
Sometimes the hardest part of acquiring business loans is knowing what to ask for. If you are relatively new to the business world, every financial decision you make is one you are making for the first time … every one of them can make you or break you. If you are preparing to apply for a bank loan, you need to decide whether you want a secured or an unsecured business loan, and then determine which you and your business will qualify for.
If you’ve been advised to apply for a secured rather than an unsecured business loan, you will have to consider what you will use as collateral. Typical security includes personal residences, personal financial assets, business real estate, equipment, inventory and accounts receivable. If the idea of putting your family’s home or your spouse’s retirement assets on the line makes you queasy, you won’t like hearing that the bank will only give you credit for 50% to 75% of the value of your inventory, equipment or accounts receivable, but that is the standard practice.
If you don’t have the stomach—or the assets—for a secured loan, you will have to consider an unsecured business loan. Be warned: finding a lender willing to take the risk might be challenging, and the interest rate will be higher, but an unsecured business loan makes sense for many business owners.
An unsecured business loan allows you to retain control of your personal and business assets, but your personal and business financials will have to meet a higher standard to qualify for an unsecured business loan. Your business will have to have a record of several years of positive cash flow and responsible financial management. Exactly how high a lender’s requirements are will be determined largely by the amount of the loan requested. An unsecured business loan for more than $100,000 probably is not an option for a business in its first or second year of operation.
After you have obtained an unsecured business loan, you will likely have to comply with regularly scheduled financial reporting.