Monthly Archive: November 2019

Loose private loans early

A private loan is, as you can read in other articles here on the site a loan that you take where there is no security. The possible loan amount that you can apply for extends up to USD 350,000.

It is a bit different how much the different lenders individually offer their customers to borrow, but up to this sum there are also several options.

The loan has an interest rate

That is constantly variable and it is something that is positive for you who are thinking about solving your private loan early. Because it is true that fixed-rate loans cannot be settled prematurely without having to pay something called interest-rate compensation. Since a private loan that said was not tied, this is no obstacle and thus you can redeem the loan at any time without costing anything extra.

The fact that the loan has no collateral is also positive when it comes to redeeming the loan. This simply means that there is no requirement that you solve it if you sell a certain thing.

For example, you cannot sell a house and use money to pay off other loans if you have a mortgage. The money isf going first to repay the mortgage and then the surplus can be used for other loans. When it comes to private loans, you never have to think this way. If there is money, you can redeem the loan.

Pay the most expensive first

This is a classic tip for those looking to settle loans early. If you have several loans, it is important to settle the most expensive ones first as this will save the most money. Sometimes it is not possible to solve the most expensive but if possible go this route. When it comes to private loans, the small loans are usually the ones that cost the most and thus most important to solve.

Also, remember that there is nothing that says you have to repay the entire loan at the same time, but you can make a down payment if you wish. Therefore, it is normally better, for example, to repay a small sum on an expensive loan than it is to settle the entire debt on a loan with a low interest rate.

How to settle a private loan early

What you should do if you want to pay off the loan before it is normally planned is to simply contact those you borrowed the money from.

They will then give you instructions on exactly how to get rid of the loan. Usually, it is quite simple as you just have to make a payment to them correctly according to their way of working.

Easy business loans -Need more money then Request an easy business loan

Need more money then Request an easy business loan

If you decide to look for an easy business loan and give the necessary impulse to your company to make it grow, it will be good if you will request it from Green Touch

Although there is an offer of specific loans for small and medium businesses, it is smaller in proportion to the credits of the large and corporate companies segment. The main obstacles for SMEs are the lack of financial analysis, good credit history and strategic plans that accredit real viability so that they can be creditors of the financing.

When we analyze the aspects that limit a business to obtain financing, the main recommendations to consider are the following:

 

Calculate the payment capacity of your business

Calculate the payment capacity of your business

The ability to pay business is the amount of money from sales and income, and you can spend to pay debts without jeopardizing the financial health of the entire company. By obtaining the actual calculation of what your business can afford to settle the credit, you can have a more solid basis to make the right decision on a final offer including the amount and term. It is very easy to perform the operation to know the payment capacity with which you account, you only have to make a total sum of the income you get and subtract it from the total of what you spend on the savings and expenses of your company.

 

Review and improve the credit bureau of the legal representative

Review and improve the credit bureau of the legal representative

Another aspect that impacts the credit response for your business is the credit bureau of the owner, the legal representative or the person who processes the credit. Through credit history, financial institutions know your payment behavior and the level of debt you have, thus analyzing the risk of lending. The best way to fix your history is to settle outstanding balances and pay on time. You can support a payment plan in which values ​​your outstanding balances according to the interest they generate and prioritize the payments to amortize your debts. As well as having only the necessary financing and limiting the use you make of them.

 

Define how you will use the credit

One of the most important aspects of making a decision about applying for a loan and which most of the small and medium enterprises face is a strategic plan that guides the good use of this one. Experts from the “Center for Competitiveness of Mexico”, emphasize that SMEs need to consolidate with a better administration and set goals to achieve a good operation. Identify a purpose that will benefit your company and set very specific goals, such as expanding, opening new business opportunities, etc. Also with this analysis, you can help to define what amount you need to ask.

 

Find and compare the credit options that exist

Find and compare the credit options that exist

Once you have the clearest picture, start by researching the financial institutions that you can approach to apply for your business credit. Compare what they can offer you and under what conditions. That is, the respective amount, the interest rates, the CAT and the term in which you must liquidate the entire financing. The recommendation for this aspect is that you choose the offer that suits both the ability to pay the business, in addition to the needs for which you are requesting.

This text is a collaboration of Harrison, an online platform created to provide financing to small and medium businesses in Mexico.