Need a Small Business Loan? Here Are 4 Tips For Success

June 15, 2013 By

If you are sick of working in a job you hate, and for a boss you dislike, then starting a small business can seem like an attractive idea.

Unfortunately, the majority of business ideas need funding to get off the ground, which means if you don’t have much money stashed away you could soon be saying goodbye to any dreams of being your own boss.

Not all is lost however. Luckily, there are now many different lenders who offer small business loans which means you could soon have enough money to make all of your dreams a reality.

4 Tips for success when applying for a small business loan:

What do you bring to the table?

While small business loan lenders can usually supply the majority of funding, they also like to see that you are investing some of your own money.

With this in mind, if you don’t have any money in savings, it can be a good idea to approach family and friends to see if they are interested in lending you money or investing in the business.

Work out how much you need to borrow

It’s very important to have a specific number in mind when approaching lenders. Not only that, but you will also need a detailed breakdown to support that number in order to have the best chance possible of being accepted.

For example, is there any specialized equipment that you need to buy? Stock? Employee costs? Marketing costs? These are factors which need to be taken into consideration.

Do your research

Not all small business loan lenders are created equal, which is why you need to do your research in order to give yourself the best possible chance of success.

Obviously, your first port of call should be banks and mainstream lenders, but it’s also worth looking into online lenders, especially if you are not having much luck with your applications.

Have a business plan

The number one reason why people are rejected for a small business loan is because they don’t have a business plan.

At the end of the day, just about every lender will want to see how your business intends to make money, so they can judge the likelihood of getting their money back in a timely manner.

Not only do you need to show realistic numbers and targets that can be achieved in your plan, but it also helps to clearly identify the target market for your product or service.

Filed Under: Business

Top tips on Funding your Childs University Education

June 11, 2013 By

Introduction

The birth of your child is arguably the most significant moment of your life. With so many additional expenses attached to having children, the last thing on your mind is saving for further education (something that essentially may not happen for another 20+ years). Despite this, the sooner you can save the better; meaning if you can kick off some form of savings account as soon as they are born – you’ll be helping yourself in the long run.

Talk to the Experts

There are a whole range of savings and investment accounts available these days meaning it can be tough to know which one is best for you. In order to get the most suitable plan talk to a financial planner; these will help to find you a plan based on your financial situation.

Set a Goal

Your next step is to set a goal for the amount you want to save. University education is not cheap, annual tuition fees recently increased to £9000 per year, so this gives you a good starting block to build upon. By setting a realistic but ambitious goal you should never be short of motivation.

It can be tough to know exactly how much you need to save, especially with the cost of university rising at a rate that is much higher than inflation. Currently, experts are saying that in order to see your child completely through university you would have to save £60,000, however realistically anything will help. A great benchmark would be to cover the first year’s tuition fees.

Do the Maths

Your next job is to do the maths. Take your target amount and an estimate of the amount of time you have to save (e.g. 18 years). Divide your target amount by the time you have to save to give yourself a fixed monthly amount, for example:

  • Target Amount: £15,000
  • Time to Save: 18 years
  • 15,000 / 18 = £833 (Annual saving)
  • 833 / 12 = £69 (Monthly saving)

This basically means every month you should aim to deposit £69 into a savings account, any more than this is a bonus.

Currently savings rates are very low however it is certainly worth taking into account the interest that you will accrue on a yearly basis as a result of your savings. On the basis that you were able to save £833 every month, and you had a savings account offering 2%, you’d accrue around £4,000 in interest over the course of the 18 years.

Make Friends/ Family Aware

Now that you have set up a savings account and you’re making regular contributions you now make friends and family aware of it. You can then encourage them to make contributions rather than spending large amounts on toys or clothes at Christmas or Birthdays.

Providing you make regular contributions whenever you can and occasionally receive contributions from friends or family, you’ll soon find that you’ve built a solid foundation for your child’s all-important university education.

This article has been written by Jason Scott on behalf of UK Credit Limited. For more top money saving tips visit their website and follow them on Twitter @UKCreditLoans

Filed Under: General, Personal Finance

AVOID These 5 Common Mistakes When Choosing a Bad Credit Loan

June 11, 2013 By

It seems that bad credit loans are all the rage these days. Recent newspaper reports are suggesting that at least half of Americans have taken out one of these loans in the past few years, and experts are predicting that this trend is set to increase.

Unfortunately, not everybody has a good experience when getting a bad credit loan. For some people, they find that their situation only gets worse, as they spiral uncontrollably into huge debt.

If you want to avoid this happening to you, then please be aware of the 5 common mistakes that people make when choosing a bad credit loan.

Not paying attention to the interest rates

It’s a common known fact that bad credit loans come with some of the highest interest rates you can find. This sky high interest can make paying back the loan difficult, which is why you need to be aware of it BEFORE agreeing to the loan.

Not comparing bad credit lenders

In order to get the best interest rates possible on a bad credit loan, it’s highly advisable to spend some time comparing lenders before coming to a decision. You can visit the lender websites yourself to see what is on offer, or you could make good use of a comparison website to save yourself a bit of time.

Not reading the small print

Are you in a hurry for a loan? If so, then you shouldn’t be too quick to pull the trigger, as it’s always a good idea to read the small print before signing on the dotted line. The small print will have details of the kind of charges you can expect to face when you miss a payment deadline.

Not paying back the money on time

When taking out a bad credit loan, the worst thing you can do is to not pay the money back on time. This often leads to extra charges and a higher interest rate, which can make paying back the loan an almost impossible task. If you think that you might not be able to make the payment in time, then contact the lender to work out an alternative payment structure.

Not looking at other options

While bad credit loans are certainly helpful, they may not be your best option to get the money you need. For example, have you considered contacting your bank for an extension on an overdraft? This would work out a lot cheaper, as you wouldn’t be subjected to huge interest rates.

Filed Under: General, Loans, Personal Finance

How to Claim PPI Without Any Stress or Hassle!

June 10, 2013 By

Are you looking to Claim PPI from a bank, credit card company or mortgage company? If so, then you are not alone, as millions of people have been ripped off during the last ten years.

The main problem that many people face with claiming PPI is that it can be a long drawn out process. These financial institutions are notorious for avoiding their responsibilities, and they will play every trick in the book to delay paying you the money that you deserve.

Fortunately, it doesn’t have to be this way. If you do things the “smart” way, then you can claim every last penny that is owed to you, without any stress or hassle.

Enter PPI claim companies

Maybe you have heard about these PPI claim companies that offer to do everything for you? It might all sound too good to be true, but in reality these are highly legitimate companies that have very well trained staff waiting to take on your case.

At the end of the day, do you really want to be spending hours of your time going back and forth by letter with a bank? Getting more and more frustrated when everything that you try just doesn’t work?

Stop hitting your head against a brick wall. Instead, simply hand everything over to experts who know what they are doing, so you can get on with your life and just get a check in the mail when a settlement has been reached.

Beware of these PPI claim companies!

While the majority of PPI claim companies are totally legitimate and there to help you, there are a few that you need to be aware of.

Companies that ask for money upfront should be avoided at all costs. Ultimately, legitimate companies work on a “no win no fee” basis, which means if they don’t win your case then no money ever changes hands.

Any company asking for payment or fees upfront is almost certainly a scam, and it is highly likely that you will never hear from them again once they have your money.

Getting your settlement

Once you successfully claim PPI and get a settlement then you can start putting that money to good use. Maybe you will put it into a high interest savings account? Or perhaps you could do with a new car?

Whatever you do with the money is totally up to you. You might even feel like treating yourself to a nice holiday in the sun, so you can get some much needed rest and relaxation.

Filed Under: Insurance, Money Saving Tips, Personal Finance

Is That Loan Really Necessary?

June 6, 2013 By

Many people are struggling these days just to make end meets. The economy has been in a downward spiral almost five years now, the jobs position is precarious for many, and there seems to be little sign of light on the horizon.

The fallout from the credit crisis has left many people all around the country with very real worries about whether they will be able to pay their bills each month or in some cases put food on the table for their families. As a result the financial services landscape has changed dramatically and one of the most obvious of these changes can be seen in the barrage of TV adverts for loans from payday loan lenders.

These loans are the subject of huge controversy – some of the criticism of these products is undoubtedly merited, while some may simply be part of a knee-jerk reaction. Their main selling point is the speed and simplicity of application although there are signs that this may be about to change. If you are giving some thought to applying for a payday loan here are a few pointers to consider before making a final decision:

Short term use only

The main problem for people who apply for payday loans is that they fail for one reason or another to pay the loan back when it’s due. This can have crippling financial repercussions. The interest rates are extremely high on payday loans so they should only be used for short periods. If you do not pay them back on your next payday you will be faced with continuing interest charges as well as rollover fees as well.

Is it really urgent

When all is said and done, there are severalother ways to raise funds relatively quickly. You could apply for a personal loan or overdraft your bank, use your credit card or even look for a loan from your local credit agency. All of these options will be considerably less expensive than a payday loan. So, if things are not very urgent and you can afford to wait for a few days, why not exhaust these options first before considering a payday advance? And if you find yourself really in a fix you could even think about pawning some goods to get access to cash in a hurry.

Do not borrow too much

When it comes to payday advances, you can usually borrow anything from £50-£1000. If you have never taken out a payday loan before it makes sense to borrow the lowest amount that will allow you to get by. That way your interest charges will be kept to a minimum and if you end up struggling to repay the loan on the due date, the implications are likely to be less serious than if you had borrowed more.

Filed Under: Budgetting, Loans, Money Saving Tips, Personal Finance
« Older Posts