Simple Tips on Getting a Loan

Some time in your life, you will probably need to apply for a loan. However, like most things, there is a wrong way and a right way to go about it. Here are some key tips on getting the loan of your choice. 


When applying for a loan, you must prepare a written loan proposal. Make your best presentation in the initial loan proposal and application; you may not get a second opportunity.


Always begin your proposal with a cover letter or executive summary. You will need to include a variety of information. Clearly and briefly explain who you are, your business background, the nature of your business, the amount and purpose of your loan request, your requested terms of repayment, how the funds will benefit your business, and how you will repay the loan. Keep this cover page simple and direct.


Many different loan proposal formats are possible. You may want to contact your lender to determine which format is best for you. When writing your proposal, don't assume the reader is familiar with your industry or your individual business. Always include industry-specific details so your reader can understand how your particular business is run and what industry trends affect it.


Description of Business:


Provide a written description of your business, including the following information:


    * Type of organization
    * Brief history
    * Date of information
    * Location    
    * Product or service     
    * Competition
    * Proposed Future Operation    
    * Customers
    * Suppliers


Management Experience: Resumes of each owner and key management members.


Personal Financial Statements: SBA requires financial statements for all principal owners (20% or more) and guarantors. Financial statements should not be older than 90 days. Make certain that you attach a copy of last year's federal income tax return to the financial statement.


Loan Repayment: Provide a brief written statement indicating how the loan will be repaid, including repayment sources and time requirements. Cash-flow schedules, budgets, and other appropriate information should support this statement.


Existing Business: Provide financial statements for at least the last three years, plus a current dated statement (no older than 90 days) including balance sheets, profit & loss statements, and a reconciliation of net worth. Aging of accounts payable and accounts receivables should be included, as well as a schedule of term debt. Other balance sheet items of significant value contained in the most recent statement should be explained.


Proposed Business: Provide a pro-forma balance sheet reflecting sources and uses of both equity and borrowed funds.


Projections: Provide a projection of future operations for at least one year or until positive cash flow can be shown. Include earnings, expenses, and reasoning for these estimates. The projections should be in profit & loss format. Explain assumptions used if different from trend or industry standards and support your projected figures with clear, documentable explanations.


You will also need to submit other Items As They Apply:


Lease (copies of proposal)
Franchise Agreement
Purchase Agreement
Articles of Incorporation
Plans, Specifications
Copies of Licenses
Letters of Reference
Letters of Intent
Contracts
Partnership Agreement


Collateral: List real property and other assets to be held as collateral. Few financial institutions will provide non-collateral based loans. All loans should have at least two identifiable sources of repayment. The first source is ordinarily cash flow generated from profitable operations of the business. The second source is usually collateral pledged to secure the loan.


The 5 C's of Credit


Your bank is in business to make money. Consequently, when a bank lends money it wants to ensure that it will be paid back. The bank must consider the 5 "C's" of Credit each time it makes a loan. By knowing about the 5 C's of Credit, you have a much better chance of obtaining a loan. 


Capacity to repay is the most critical of the five factors. The prospective lender will want to know exactly how you intend to repay the loan. The lender will consider the cash flow from the business, the timing of the repayment, and the probability of successful repayment of the loan. Payment history on existing credit relationships - personal and commercial - is considered an indicator of future payment performance. Prospective lenders also will want to know about your contingent sources of repayment.


Capital is the money you personally have invested in the business and is an indication of how much you will lose should the business fail. Prospective lenders and investors will expect you to contribute your own assets and to undertake personal financial risk to establish the business before asking them to commit any funding. If you have a significant personal investment in the business you are more likely to do everything in your power to make the business successful.


Collateral or guarantees are additional forms of security you can provide the lender. If the business cannot repay its loan, the bank wants to know there is a second source of repayment. Assets such as equipment, buildings, accounts receivable, and in some cases, inventory, are considered possible sources of repayment if they are sold by the bank for cash. Both business and personal assets can be sources of collateral for a loan. A guarantee, on the other hand, is just that - someone else signs a guarantee document promising to repay the loan if you can't. Some lenders may require such a guarantee in addition to collateral as security for a loan.


Conditions focus on the intended purpose of the loan. Will the money be used for working capital, additional equipment, or inventory? The lender will also consider the local economic climate and conditions both within your industry and in other industries that could affect your business.


Character is the personal impression you make on the potential lender or investor. The lender decide subjectively whether or not you are sufficiently trustworthy to repay the loan or generate a return on funds invested in your company. Your educational background and experience in business and in your industry will be reviewed. The quality of your references and the background and experience of your employees will also be considered. 


Now that you know these simple tips on getting a loan, you should have a much better chance in obtaining the loan of your choice. The key to finance is to stay informed.

Fast Loans for Unemployed – Bringing Financial Relief Real Fast

A faster approval of loans has a special significance for the unemployed people. Having ended their only source of stable income, finance starts holding a place of prominence in their lives. Without a fast financial assistance in the form of loans for unemployed, they will only go deeper in their debts. Thus, a fast loan for unemployed is a necessity for the jobless individual as against a mere desire as in case of the regular loan borrowers.


The rapidity in approving loans for unemployed must not be seen in comparison with the other regular loans. This is because the case of the borrowers with unemployment is special. They do not have a stable financial income and this is often seen as a risky proposition by the moneylenders. Moneylenders would try to ensure through a series of screening tests whether the money would be safely recovered. The entire process of credit check may be time consuming. 


However, one is to ensure that the process is not unduly protracted. A survey of the time taken by loan providers for approving and sanctioning the amount will be advantageous in distinguishing between the justifiable and unjustifiable delay in the process. The time taken for approving the fast loans for unemployed differs between regions and counties. Thus, borrowers must try to get more specific data for a better understanding of the customs prevailing in a particular place. 


Making application to the fast loans for unemployed through the online route will generally be beneficial to borrowers who want a faster approval. As against the mode of application where borrowers can apply only during the office timings of the loan provider, an online website is available for application at all times of the day. Online application to loans for unemployed saves the time involved in documentation. The loan providers can instantly transfer the details of the borrower after checking the reliability of the borrower.


Borrowers with home or other sufficient collateral to back the fast loans for unemployed will have little difficulty in qualifying for the loans. The lack of stable financial income is made good through the presence of collateral. It is not the collateral that is used up in the process. It is the inherent equity in the collateral that gets consumed. For instance, when the loan for unemployed is secured against home, it is the home equity that is used. Home equity is the value that a home can fetch if it is sold in the market at a particular point of time. Fast loans for unemployed taken against ones home is known as home equity loan.


Home equity loans are the cheapest source of finance available to the unemployed. Loan providers understand that at no instance will a borrower intentionally endanger the ownership of his/ her home. By being irregular on loans for unemployed taken against home, one is actually endangering his/ her home. This assures the safety of the amount lent. Rate of interest being dependant of the risk involved in a particular case will be lower in home equity loans for unemployed.


Depending on the period that a person perceives that the period of unemployment will last, the manner of consumption of the home equity loan for unemployed is to be decided. If the joblessness is seasonal or may not last long, the borrower will use the proceeds at once. However, if there is no fixed time period within which the borrower hopes to regain employment, it will be advisable to use the money with caution. Loan providers agree to provide money either through fixed instalments or as a line of credit. The latter is known as a home equity line of credit or HELOC. The biggest advantage of HELOC is that borrowers are charged interest only on the amount drawn and not on the entire sum sanctioned as loans for unemployed.


Do the unemployed people without home have no respite? It isn’t so. Nowadays, loan providers do not intend to leave any group untouched from their services. Customer groups that wouldn’t have thought of qualifying for the loans too get finance at slightly different terms if they make an exhaustive search. The same applies to fast loans for unemployed for tenants. Fast loans for unemployed tenants are generally unsecured and thus carry a higher rate of interest. An unsecured fast loan for unemployed tenant would thus be expensive. An exhaustive search process will ensure that tenants are not overcharged on fast loans for unemployed for tenants because of their homelessness. It is necessary to unearth fast loans for unemployed tenants from the large number of loan providers and an exhaustive search process will certainly go a long way in this venture.


The unemployed people use the unemployment dole that they receive from the state for making the repayments. The unemployment allowance will also be used for disbursing the other expenses that crop up. Loans for unemployed of greater amount will leave very little of the unemployment allowance for other expenses that too are important. Thus, borrowers must decide the fast loans for unemployed with proper care because any erroneous decision at this stage only creates more problems for the unemployed individual.

Easy Cash Loans To Meet Immediate Cash Need In The Most Convenient Way

A financial crunch can happen to anyone at anytime in life. A few years back, I was stuck in the same situation, I needed cash instantly but I didn’t know what to do. It was the toughest period of my life. I was wandering here and there from one lender to another; just to get the money I needed.  Filling long loan application forms, submitting it and then waiting for lender’s reply or decision became a common practice. The waiting period was getting longer and longer, I couldn’t see any hope until a friend of mine introduced “easy cash loans” to me. Thanks to easy cash loan it saved my life and credit rating too.   


Easy cash loans are popularly known as cash advance loans. It can be used to meet urgent financial contingencies such as medical bill, telephone bill, car repairs or to meet any urgent expenses. It solely depends on the borrower what does he plan to do with the loan money.


The loan is tailored to meet short-term cash need. Usually lenders offer an easy cash loan ranging from £50 to  £1000. Some lenders may lend you cash loan up to £1500. Loan term of a payday loan vary from 7-14 days, coinciding with the applicants next payday. You can also extend the loan term by using the rolling over option, which involves extending the loan term to the next payday.


A borrower needs to put a signed post-dated cheque as a security against the loan. The best thing about cash loans are that they offer the ease of getting a fast loan arranged without a credit check and that too in the most convenient way.


Easy cash loans as the name imply aim to arrange instant cash for the borrowers and that too in the most convenient manner. A few years back only traditional lenders existed in the finance market who offered loan at high rate of interest and the whole loan process used to be very lengthy. A lot of inconvenience was involved that kept most of the people away from borrowing money.


With the passage of time, everything has changed. Invention of Internet has given a new dimension to the finance market. No more waiting, you can get the decision regarding your loan application within few hours. And the loan amount will be deposited to your account directly. The loan process is easy and short; you just need to fill up a small loan application form with some personal and financial information. Online lenders will offer you the deals they will find appropriate for you.


Easy checklist to determine your eligibility for an Easy Cash Loan: -


 You currently have a job or regular source of income
 You are 18 years of age or older and a UK citizen 
 You must have had a valid UK bank account for more than 3 months

Cash loans are usually offered at high rate of interest but a little bit of search may help you in getting a loan deal at a lower rate of interest. If you wish to grab the best loan option, then make a thorough search. Collect loan quotes from all the lenders; you get the loan quote form for free or for nominal fees. Your next task is to compare the loan quotes, decide the points on which you will be making comparison it could be the loan amount, interest rate, loan term or any other feature you want to consider. Evaluate the costs and benefits of all the alternatives. Invaluable time, efforts and money invested in right manner will help you get the best cash loan.


It is always easy to run away from troubles but facing the financial problems boldly is a gentleman’s act. A financial contingency can be easily met with an easy cash loan and can help you in avoiding late payments penalties and negative marks on your credit rating.