How Do You Qualify for a Bridge Loan Quickly?

If you wish to buy a new property and if you do not have the necessary amount of money for down payment till your current house is being sold out, it is advisable that you should try to acquire a bridge loan as quickly as possible. Whether you wish to buy a new house or you want to purchase any other investment property, there is possibility that you should use this type of fund in order to meet your requirement in the best possible way. If you wish to buy a warehouse, and if you want to buy new office, it is advisable that you should make use of it as much as you can. This article will highlight on a few essential steps that you should follow in order to get bridge loan without any kind of difficulty.

Your first step is determining the appropriate amount of money that you may require for covering the time gap between the selling of your existing house and buying of the new house or other kind of property. The exact time period within which you have to pay back this type of fund is determined by the lending organization that you have approached.

The second step that you should follow is to find out a mortgage broker or even a banker who may help you in this matter in the best possible way. It is important that you should try to find a mortgage broker or banker who can provide high quality service and who may also charge a reasonable price rate.

Once you are able to find out one such person, your next step is to evaluate your asset in the best possible way. If you evaluate your asset effectively and if you can produce it as collateral, there is possibility that you may be qualified for this type of fund as quickly as possible. It is vital that you should be able to prove the fact that you have the capability to make payment on a monthly basis. It is offered on the basis of your asset that can be used as collateral and it is also provided on the basis of your ability to repay the bridge loan as well as your monthly expenses.

You should try to decrease your monthly expense as much as you can and you should do so before you actually apply for this type of fund. Before you want to accept this type of fund it is vital that you should try to find out its policies in details.

Once you are determined that you will take it up, the final step that you should follow is to apply for this type of fund successfully. If your existing property is not sold out, it is vital that you should be able to show that you have the competence to pay your mortgage payment in the best possible way.

If you wish to purchase a new house or a new property and if you do not wish to sell your current house, it is advisable that you should get hold of this type of fund without any kind of delay. If you are able to find out valuable property, it is advisable that you should get it in order to buy it as quickly as possible.

Finance Management of Small Business

Managing finances in a business is among the few important things that need to be considered when starting and carrying out a business. It is all about efficiently and effectively utilizing available funds in order to achieve the objectives of the business. Financial management is aimed at planning, observing, organizing and managing the monetary resources of a business.

Small business finance management strategies

Small business finance management is mostly concerned with procurement, allocation and control of financial resources so that a regular and adequate supply of funds is maintained to run a business. Once the funds are in hand, they should be utilized in maximum possible ways at low costs and should be invested intelligently in safe ventures. A few tips that can help you efficiently use your funds while running a small business are:
  • In the initial years of managing a small business, you need to estimate how much money you need for a decent living and pull out that money from your business income. Now invest the remaining money back into your business for its growth.

  • Early wins in the form of high profits may urge you to spend it on leisure holidaying or improve your housing status. You need to be firm and defend yourself against such ideas and wait till your business gets a little more established.

  • The main expense in a business is covering the payroll of your staff. It is advisable not to hire new employees unless you absolutely need them. When things get busy and a lot of work pressure builds up, you may get tempted to hire more people. Try and stretch the existing staff members to their full potential to get through the workload and hire only if necessary.

  • Try and save up money on applying for loans and procuring inventory. Taking up loans from banks is a common practice in the business world, but it carries an extra cost of its own in the form of interest you pay while returning. Reducing this extra cost can help you add up and save more money in the long run. This can be done by dividing the total money you need as loan and borrowing it in parts over a period of time. This reduces the overall amount of interest you pay back to the bank. Borrowing the entire amount at once will result in you paying interest for the money you are not going to use till later time.

  • Keep the money separate for paying the taxes and avoid mixing it with other funds. Paying taxes is of utmost importance and since that money is meant to be given away, it should not be kept or used for other purposes.

  • Bargain the terms of the agreement with the outside contractors and vendors like delivery services, electrician etc., such that you get a grace period in paying your bills. This grace period can be used to manage your funds and prioritize your other bills more efficiently.
Small business finance management can help you cleverly grow a successful business over time.

The Benefits of Spare Time Money

When you're a child, you have a lot of free time on your hands. With that free time, you may have found yourself looking into a variety of endeavors. For some, it's a matter of starting a lemonade stand. That little window of commerce can allow you to taste the first idea of spare time money. You have spare time, you want to sell lemonade, you get paid a little bit to do so. That's something well worth exploring on a lot of levels. But as adults, many don't have the same kind of spare time. With the internet, however, you could transform things, and find yourself pushing several key benefits.

An Easier Path Than Slaving For The Wage

One of the most unique things about the notion of making money in your spare time is simple, it's easy. This can be deceptive, but it's true. The reality of online money making opportunities is easier than ever before. Whether you choose an MLM business, affiliate marketing, PPC options, blogging, writing, or just about anything you can come up with in regards to internet marketing, you can make money. Sometimes these endeavors can cause you to cash in upwards of six figures. Imagine pulling over six figures in your spare time, wouldn't that be grand? It's not an impossible task, and it all starts with your spare time.

Freedom To Spend Time With Family

For those that are looking at spending more time with their loved ones, making money online is the key. Spare time becomes freedom when you are making money instead of worrying about whether or not you can pay the rent. There's a weight lifted, and it's a wonderful thing. It all starts with finding a niche and focusing on building your financial parameters around it. It may seem like an extreme thing at first, but it's not. It can take you no less than around 1 hour a day to start building an opportunity. When that starts to pay off, you will be given more freedom, more spare time, and in the process, more money.

No Huge Investment

There have been millions of failed businesses across the centuries. The problem with starting a business from scratch is that you will have to put up a lot of money to do so. The average small business loan is around $50,000. That's quite a hefty sum that one must pay back, even if the business fails. When you turn the tables, and you look towards making money online, you don't have to worry about that. Instead, you will invest time, and learn the ropes of making moves on the web. Those moves will help you gain focus, and end up paying off dividends, all without having to take out a loan or try to mortgage your house to bank on yourself. It's within that realm that you will see your spare time money grow into a full time income. Not sure how this all works or whether you can make it? Well, start your quest via, and see how just an hour a day could change the future for you.

Planning a Big Investment? Here's Why You Should Trust a Hard Money Lender

So you've found the perfect investment and you're ready to make a purchase. The problem is that you don't have the cash on hand. You could go to a second-rate financier who only wants to earn money off the interest of your loan. But there's a better alternative: hard money lenders. Their collateral-based loaning program and low rates always make them a better option, and here's why.

No Credit Discrimination

Most loan rates are based off the applicant's credit score. That means if you've made a few mistakes or haven't built the proper history, you'll be paying more over time. There's no way to avoid a multi-month or even multi-year loan term with most big investments. Inevitably, you'll be paying interest in some form or another. And that's not to mention all the additional fees that are affixed to the process.

A hard money lender isn't interested in your credit rating. They base their decision off the collateral offered and the project you are trying to fund. If you have a great idea, their team of investors will recognize this potential and seek a way to help you succeed. They aren't concerned with shutting down your ability to borrow, but more with the way in which you plan on successfully investing their funds.

Incredibly Low Fees

A hard money lender is well aware of the inordinate fees you will pay at a typical bank or other institution. That's why they not only offer competitive rates that are based off of a flat percentage, but they also eliminate a great deal of the "hidden" fees you would pay elsewhere. They aren't interested in taking your money or crippling your ability to succeed. In fact, they aim to do quite the opposite.

Let's say you're a property developer and you're ready to expand into an area of your city that you feel has untapped potential. You've done your research and you have a solid business proposal for an entire complex that would create jobs and businesses in the area. Your dedication and efforts to contribute to the economy already give you an edge, but your solid idea will win you a loan amount that correlates to your needs. Not only are these private companies much more interested in your business success, but they will also give you honest criticism if they feel your plan has potential holes or failings. Even the process of discussing funding with a hard money lender could be exactly what you need to get your project off the ground.

Collateral Determines Loan Amount

Your collateral is a big part of the way a hard money lender will address your needs as a borrower. If you have high-value real estate in your portfolio, you have a great opportunity to borrow an amount that correlates to its value. Even high-value property like precious metals, minerals, or even cars and collector's items will all be considered as a solid support for your request.

Some institutions have more elaborate requests as your loan amount exceeds 100,000. Your assets and holdings in the form of stocks and bonds, as well as your business itself, might be used as collateral. Just keep in mind that if you're borrowing the money for the right reasons, these institutions want you to succeed. There's no reason to fear you'll lose any of your collateral.

What Is Business Debt and How Can You Utilize It?

It is a tool that every business can utilize to start a business, operate and expand a business. Many businesses do not understand how to use this tool to their benefit. All they know is that they need money to do what they want to do. Your first question should be? How am I going to finance this?

Let's start with short term vs. long term debt: short term is paid back immediately or within a year; long term is paid back longer than a year: usually term loans. Debt can be secured or unsecured; unsecured is preferable; some types of security liens can be receivables, inventory, equipment, etc.

Bank business lines of credit usually require that the line be paid down at least once a year. That is a good thing. The line can be secured or unsecured; a probable requirement is the owners guarantee for payment. Banks have also been known to call the line; that means they don't think the business is in a good place, and they want their money. If a line is not paid down and the owner chooses to just pay interest, the cost of whatever they used it for skyrockets.

Since short term is paid back within a year, it should be used to pay for current assets such as inventory, smooth out the business cycle, etc. With the availability of credit card debt, a business can find itself carrying debt (paying high interest rates) used to buy inventory that should be long gone for years.

When should long term debt be used? Many businesses try to finance what should be long term initiatives through operating revenue. Not a good idea. Why because they need operating revenue for payroll, rent, short term debt, etc. Buying a piece of equipment can be a long term endeavor, leasehold improvements, expanding the business such as adding locations. Analyzing the life of what the business is buying will help determine whether it should be short term or long term. A single computer is probably no longer considered to have a long life and would be considered for short term debt; however, replacing a multitude of computers should be considered a long term purchase. Financing a buildout and/or adding a location (in my opinion) should not be financed short term.

To me the beauty of a term loan is your paying interest and principle; there is an end in sight for the debt. Credit card debt is just a vicious cycle when used improperly.

Plan for the Future and Do Not Depend On Your Job Alone

Today having an 8 am to 5 pm make us job feels like we are held hostage with uncertainty hanging over one's head. The decline in the economy of some countries, the bad decisions made by Governments, the changes in the world of business and more, are making the prospect of a full-time employment not so encouraging. Gone are the days when one could expect to work at a job until they reach retirement and settle down to enjoy their small pensions.

The image of the man getting out of bed in the early mornings, and head to the bathroom for a quick shower, then put on is work clothes and after breakfast he hurry's to catch the subway or drive his car some miles away to work, is not such a good prospect at this time. We are like birds that are about to fall into a net and taken to be butchered.

Today, many retired persons are looking for a job or possibly wishing for one, now. The merger pensions, that many collect is not enough to cover their daily living cost such as their medical bills. Many persons worked at a job for a numbers of years, and the day they finally retired, they were expecting to settle down and enjoy their golden years. They wanted to enjoy a late sleep, a nice walk in the neighborhood or attend to their gardens, enjoy watching the sunset in the evening plus other leisure activities. However, this laid back and taking it easy approach has come to an end for many.

Every day we hear news of job redundancy or a lay off taking place in some corner of the world or in our cities. We can imagine the disappointments, the sounds of sadness and the screaming of "what am I going to do now"? There may also be the cry of "my babies, how will I provide for them now"? Other comments such as; "I just took out a mortgage, now how will I pay for it".

It is time for us to wake up to the reality that no job is safe, nor should we take a gamble with your future and family. If you are presently employed and the job is your only source of income, then my friend you could be in for a rude awakening sometime in the near future.

In some countries of the world today, the Government employs the bulk of the citizens and the rest are self-employed or either employed by the private sectors. Today, many Governments are having an issue balancing their budgets, include those in the Private Sectors and so if there is a demand for pay increases by the workforces, and it cannot be met due to a variety of reasons. Then their only option is to slash their workforce. Those who are self-employed are relaxed and go about their daily lives with the knowledge that they are in control of their paychecks.

What should the ordinary citizens do to prevent this unfortunate incident from happening to them? Simply start their own business and earn their own income. When a person works for the Government or the Private Sectors, they are in control of our activities include our paycheck. Therefore, our jobs should never be our security because it could be gone at any moment and often without our consent.

If you are working at the moment, then there is no need to quit your job, however, it depends on the factors. In order to build a secure future for ourselves, we need to take charge of our life and control the source of our income. We should never allow a job to become our single source, so let us be smart and build an extra source of income. Let your present job be one source and build the other source so that there will be no need for you to worry.

The formula to start a business, consist of an Idea, a business plan and a boat full of money. However, this boat load of money concept is not correct but it depends on the type of business. We do not really need to make a visit to the bank and get a million dollar loan because there are many ways that one can earn an extra income for a small investment capital or almost nothing.

Here is a list of business that anyone can start with almost nothing.

• Blogging - The only things you will need are a domain, a hosting account a niche target, a computer with internet connection and a skill for crafting words.

• Delivery Service - Clean driving record, organization skill, knowledge of defense driving and a reliable vehicle.

• Day Care - Sufficient space and surrounding for kids to run and play, love for kids and just the offer to watch and entertain them.

• Freelancing - Virtual Assistant, Writer, Bookkeeping and Accounting, Graphic and Web design.

• Tutorial Classes - Help struggling students with a certain subject

• Drop Shipping - Act as a middle man and connect supplier and customers with product.

There are a lot more ways and there is no need for you to be highly experienced or have special knowledge. While this is correct, you only need to start learning new skills or learn as you go along.

I wish you prosperity and success in your life and new undertakings. Cheers!

How to Choose Between Banks

When you open an account at one of the banks in your area, or any bank for that matter, you are forming a long-term relationship. It is not often that people change their minds about their financial institution once they open an account. As long as you are receiving the services that you desire, you are prone to stick with that financial institution. If you choose to do business with a certain bank, make sure that you are happy with the customer service. Ask about fees associated with various accounts. Depending on your needs, you may need a checking account, savings account, or both. Find out how lost credit cards, overdrafts, and debit card purchases are handled.

Create a List

Create a list of things that you want from one of the reputable banks in your area. Then you can decide on a financial institution based on your banking needs.

Services Offered

Most banks offer a wide range of services. Services can include retirement savings, investment options, and online bill payment.

Other services offered generally include:

- Online Banking
- Mobile Banking
- Text/Web/Apps
- External Funds Transfer
- ATM/Debit Cards
- Telephone
- Wire Transfers
- Electronic Statements
- Cash Management
- Merchant Credit Card

These days, you will usually have access to funds at your local branch, online, and through ATM withdrawals. Most banks also offer loan services for mortgages and secured credit.

Doing Business Online

Online banking has made it possible for customers to check their balances and receive monthly statements. Most banks offer free online services, and you can feel secure doing business over the Internet. You can access your funds 24 hours a day, seven days a week. You will have access to your existing E-statements. You can transfer money between each of your accounts, make your loan payments, and see an overview of your transactions.

Mobile Capabilities

When you are traveling, what better way to complete transactions at your financial institution than by mobile banking. As long as you have a smart phone or other mobile device, you can conduct business transactions. You can even receive your account balances via text messaging. It is a quick way to check on your account without a physical visit to the bank.

Mobile connection allows you to receive current and available balances, review previous transactions, and see existing balances on all of your accounts. All you have to do is text a brief command from your mobile phone, and the information will be quickly delivered to your device.

Cash Management

Business owners can manage their money through cash management services offered by many banks. As a business owner, you will have control over your daily finances, be allowed to create multiple account users, and also have the ability to initiate ACH deposits.

When selecting a financial establishment, choose wisely by considering what important banking features and amenities you can and can't live without.

What To Consider Before Taking A Loan

Almost everyone requires a loan at some or the other point in their life. Whether it is to buy a house or vehicle, start a small business, or for education, loans make it easier to get things when cash is short.

However, if you seeking a business loan, then the process won't be that easy as there is an element of risk involved. So, it is very important that before you apply for a loan you understand how the bank will evaluate your loan application. There are various factors through which the bank will analyse the borrower. Given below are some of the factors that the bank will review and, if you satisfy the criteria, will increase your chances of bagging a loan.

Before You Apply For A Loan...

The first factor that all the banks will look into is the ability of the borrower to repay the loan. So, banks will take into account the sources of repayment. If you are taking a loan for a business then the bank will take into account the cash flow that the enterprise can generate. The banks will also take into account another source such as collateral.

The bank will also go through the borrowers past financial record. If the business has been profitable and it can cover the debt then the bank will approve the loan. In case the business has not enjoyed success in the past as the borrower needs the funds to grow, then the bank will ask for a detailed explanation on how the loan can be repaid.

Good business credit is essential as no bank will bet their resources on defaulters. Sometimes, banks will also analyse the personal credit of the borrower. That is why before applying for a loan make sure that your credit record is good.

Your credit report will carry your credit ratings which you will have to submit to the bank. The bank will evaluate and depending on it you will receive the loan. However, different banks evaluate the credit report differently. If one bank rejects your loan application you may find another bank that would evaluate the report differently.

Your credit ratings will be a combination of a number and letter. The most important is the number; the letter denotes the type of credit. If you are rated '1' then you have the perfect score. This means that you have paid all your bills in time. If you are rated '2' or '3' then it means that you have paid your bills two to three months late. A '9' rating will mean you have defaulted on the bills and it will become very difficult to obtain a loan. It is always better if you take the help of an accountant to interpret your credit report.

The bank will also check if you have a second source of repayment. This is known as collateral, which are basically all those assets that can be sold to pay back the loan. It is the collateral which secures the loan and most loan programs require some sort of collateral. If the borrower doesn't have any collateral then he/she can use a co-signer who can pledge the collateral or the loan may not be granted.

Different Types Of Loans

Loan contracts come in various forms and terms. It will actually range from a simple promissory note between friends and family members to more complex loans such as auto, payday, mortgage, and student loans. Regardless of its type, each loan will be governed by policies and guidelines to protect clients from unfavourable practices such as excessive interest rates. Moreover, loan length as well as default terms must be clearly detailed in order to avoid any confusion or perhaps possible legal action.

In case you are in need of money for a very important item or perhaps to help make your life more manageable, it is a must that you are familiar with all the kinds of loans that may be accessible to you along the different terms you can expect.

Different Loan Types

There are different types of loans which have a certain intended use. They can vary by length of time, by when payments are due, by how interest rates are calculated, and by a number of other factors.

Mortgages - These are distributed by banks in order to allow consumers to buy homes they cannot pay for upfront. This will be tied to your home. This further means that when you fail to pay it, your property will be foreclosed. As opposed to any other loan types, this has the lowest interest rate.

Student - These are offered to college students along with their families in order to help cover the cost of higher education. Generally, there are 2 main types of student loans - those funded by the government and those by private lenders. Experts say that the first option is better since it comes with much lower interest rates and better repayment terms.

Personal - These can be used for any personal expenses. This option does not have a specific purpose. It is for this reason that many are attracted to apply for such. Terms of this loan type will greatly depend on your credit history.

Small Business - This is often granted to entrepreneurs or to aspiring businessmen to help them set up or expand their ventures. Small business loan options will greatly depend on the needs of your enterprise.

Auto or Car - This is quite similar with mortgages since it is tied to your property. They will help you afford a certain car; however, you will risk losing the car when you miss payments. Auto or vehicle loans might be offered by a bank or by the car dealership directly. Though those offered through dealership are somewhat convenient, be aware that they usually cost more.

Did the Bank Bailout Help Small Businesses?

Just as owning a home was assumed to be a positive financial strategy for individuals, small companies owning commercial real estate was typically seen as a routine and constructive piece of their commercial financing during the period leading up to the most recent financial crisis. Both of these assumptions start to fall apart very quickly when it is difficult or impossible to obtain the underlying real estate loans from banks. Real estate continues to be a major component of the overall economy, and ongoing difficulties involving either obtaining or refinancing commercial mortgage loans presents severe problems for both societal economics in general and small business economics in particular.

Did the Bank Bailout Help Small Businesses?

One of the primary arguments made in favor of bailing out banks in 2008 was that it would permit the restoration of "normal financing" to businesses of all sizes everywhere. Seven years later most small businesses are still waiting for bailout funding to "trickle down" to them. Working capital loans and commercial mortgages are missing in action for many commercial borrowers.

Real estate has regularly been in economic news for both good reasons and bad reasons during the past several decades. Starting around 2005, concerns began appearing about the financial health of both real estate and the overall economy. What we did not know at the time was that banks began making speculative investments in financial derivatives tied to real property at about the same time. Some of these investment practices produced massive losses that precipitated the public banking crisis emerging in 2007 and resulting in a widespread bank bailout program in 2008. Even the few instances in which these derivatives produced profits for the banks proved to be controversial because the profitable investing was frequently at the expense of banking customers.

Zombie Banks and Troubled Banks

Here are two of the real estate and banking problems that are still very actively impairing the small business economy:
  • Zombie Banks are still operating - a Zombie Bank is one with a negative net worth (liabilities exceeding assets).
  • The FDIC (Federal Deposit Insurance Corporation) Troubled Banks List still has more than 200 banking institutions on the list.
It is worth noting that the FDIC does not publicize the problem bank list or name specific banks on the list - probably fearing a "run on the banks" if they did so. The recent "bank holiday" in Greece illustrates how quickly bank depositors can lose confidence in banking institutions. But the FDIC does release the number of banks on their troubled bank list on a quarterly basis. For example, the March 2015 total of problem banks as defined by the FDIC was 253. In comparison, the total was more than 850 banks at the peak of the recent financial crisis - but there were less than 50 troubled banks before the 2008 bank bailouts.

What to Do When Banks Say No

Small business owners must draw their own conclusions about the current financial health of banks, but it seems unlikely that a "Troubled Bank" will be able to make a "normal" level of small business loans. If banks are still saying "No" to routine commercial financing for creditworthy small businesses, what is the recommended response? Small business owners should actively review alternatives that include non-bank financing, reducing business debt and increasing sales with cost-effective solutions such as business proposal writing. At some point the practical need to fire their bank and banker will by necessity become one of the realistic actions by a commercial borrower in need of business financing but unable to obtain it from their current banking institution. In such a scenario, "You're fired" can quickly become another example of life imitating art.

How Do You Get Small Business Administration Loans Quickly?

The Small Business Administration or SBA has introduced different types of loans to provide financial support to the small businesses and to help them to operate their companies in the best possible way. It is important to remember that this organization sets proper guidelines for this type of fund that is then made by lender, community development agencies and its other partners. This organization offers the guarantee that this type of fund will be repaid within the scheduled period of time and this kind of guarantee from this organization eliminates all sorts of fear about loss of money from the mind of their lending partners. It is not available to a small business if the latter can access other types of financing options. This article will highlight on a few essential tips that you should consider in order to obtain loans that are offered by the Small Business Administration as quickly as possible.

The first step is to check the total amount of money that you are able to use as capital in order to run your business in a successful way. If you have capital reserve that is at least one fifth of the total amount of money required to complete a particular project, there is possibility that you will get this type of fund without any kind of difficulty.

The second step is to prepare a comprehensive business plan in the best possible way. If you wish to get this type of loan, it is advisable that you should be able to prove that you have prepared an effective business plan. If your business plan is approved, it is advisable that you should be able to explain the ways you want to spend the entire amount of money.

You should be able to prepare financial statements that include a balance sheet, tax form, income statements, cash flow statements and other relevant documents. If you are able to show all your relevant financial statements, there is possibility that you will easily get this type of fund.

The next step is to check your own credit report as well as that of your own business partners. If you wish to get this type of fund, it is advisable that you should maintain good credit records. If you do not have good credit scores, there is possibility that you will not get it within a short period of time.

It is vital that you should be able to prepare a long list of valuable assets that you possess for your business requirement. It is vital that you should be able to display a proof of your collateral in order to get this type of fund within a short period of time.

It is important to remember that this type of lender can even consider your character as much as he can before he approves your loan application. On your part, all you have to do is to prove yourself as a proficient businessman who does not run away from duties and responsibilities at any point of time. There is possibility that your potential lender may even ask for names of referees so that he can call them up to check your background and to assess your trustworthiness in the best possible way.
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