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Saturday, January 3, 2009

Successful Small Business Loan Tips in This Bad Economy

By Peter Zirch

At this very moment, there is a serious downturn in the overall economy. The effects on business are reverberating not only across the United States but around the world. As a business entrepreneur, what you need to know is how to get business financing despite the dire circumstances you hear about daily in the media.

Business owners in this bad economy have the simple desire to simply stay afloat as the economic downturn worsens by doing one thing. Hard work. Sometimes, however, growing a business takes more than just working harder than the guy down the street. It takes getting more money to grow your enterprise through business financing.

Even in this recession, it is possible to obtain personal and business financing for business owners in need. With the current economic black cloud hovering over the nation, this is no small feat.

Contrary to what most people think, the financing opportunities are out there and depending on your circumstances, it can be a lot faster and easier to get than you might think. When you work with a business financing company, it is vital to have someone who has numerous connections to obtaining the capital that you need in an expedient manner. Be sure to ask for business references, check out their BBB record, and get to know them. You want to be treated like a valuable client, not just a number in line for a business loan.

About Us: Our business financing consulting service will help you find and secure the right type of small business financing for your working capital, business start up, or business expansion needs. Our team of professionals will work closely with you to determine your unique financial situation in order to create the right path to financing for you and your business.

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Finding Bad Credit Student Loans

By Dave Davidson

For people that are trying to further their education by going to college, the cost of tuition can be pretty overwhelming. In order to achieve your educational goals, it may be necessary to find some assistance. What should you do if you're a person that has bad credit?

People often wonder if they will need to establish a better credit history before they apply for student loans. The answer is almost always no. There are some great federal programs that are available to individuals that have both good and bad credit.

Most student loan programs offered by the federal government are based on need. The government backs these loans and that makes them available for people, even if their credit is poor. As long as you have financial need, you can probably qualify for Stafford loans and you credit history isn't considered when you apply for Stafford loans.

If you are a person that has a lot of need for financial assistance, you may be able to qualify for Pell grants and/or Perkins loans. These types of financial assistance are available for people that have bad credit and need to pay for education. Credit actually isn't part of the process of applying for these loans so go ahead no matter what type of credit you have.

With Pell grants, you aren't asked to repay any of the money that you receive. Eligibility for these grants is based solely on the need of the individual. Usually people try to get Pell grants first, and then take out loans as it's necessary.

If you aren't able to qualify for the federal subsidized loan programs, there are still some options out there for you. Take a look at unsubsidized Stafford loans, because they are probably still available to you, even if you have bad credit.

With this type of loan, the government doesn't pay the interest for you, so you will have to start making payments right after you take out the loan. However, interest rates are quite low on these loans so most people can handle the payments without too much trouble.

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401K IRA

By Raul Dutton

It is vital that we plan for our future retirement. No one wants to work until they die or be forced to rely on their loved ones to support them financially.

There are lots of different retirement plans that people use to avoid that. The two we will descuss now are IRA and 401K.

IRA 401K A 401k is a retirement fund usually managed by a person's employer. The employer will usually offer to match dollar for dollar the contributions of an employee up to a certain amount or up to a certain number of years. There are several reasons for this.

The employer has to have so many dollars on hand for everything in each employee's benefit package. So by offering to match your contributions, they are encouraging you to invest in the 401k fund, and they thus get more on hand dollars to invest and to claim.

Another reason is that they can use the funds to invest and actually make money from your contributions, thus allowing them to pay you back at time of retirement with the earnings from your own contributed dollars.

An IRA is also called an Individual Retirement Account. They help ease the strain on Social Security by allowing benefints and incentive to the account holder for investing in their own retirement instead of relying solely on their 401K offered by their employer. Because if the employer goes down the 401K is litterally worthless.

Many differnt IRA's exist to suit different people's needs. Research them and talk to a financial advisor to find which one is right for you.

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Is throwing money at the mortgage market the solution?

By Chris Clare

With the credit crunch wreaking havoc on the global economy certain governments throughout the world have stepped in with bail out plans involving the injection of money into their individual banking systems. The reason behind this is to stave off the bad or `toxic? debt which they see as crippling to their countries' economies due to unstable institutions and negligible public borrowing.

So the big question is will injecting this money actually get the banks lending again and if they do, will it have any effect on us, the general public. In answering this question and dealing with the issues here I can only comment on our particular situation here in the United Kingdom. Whilst it may be similar in other parts of the world I cannot comment due to the fact that I am unfamiliar as to how their market works, so what may have an effect here may not be the case anywhere else.

To most people the credit crunch is all about banks not having the money to lend. So it is fair to assume that if you give the banks the money that will solve the problem. Sorry this is not the case in fact this is actually far from the case. Banks not having the money to lend is only one aspect of the problem. Most banks are "once bitten twice shy" to coin a phrase. They have lent badly and are now paying the price, it is this issue that will be with us way beyond any bailout plan has been agreed and distributed.

One of the principal areas to focus on when assessing the reasons for our present financial crisis is the area of house prices. As everyone knows they have taken a big tumble and there would seem to be no respite in the immediate future. Lenders are now facing a situation in which they have to implement more rigorous procedures and one of the targets is that of loan to value, or LTV, which is the amount that they are willing to loan dependent on the value of the property. They were lending from 95%LTV up to a staggering 125%LTV.

While the market is buoyant most annalists will agree this type of lending is OK. Think about it if you lend on a 100,000 house 125% which results in a loan of 125,000 and the house price rises over the next three years at a rate of 10% per annum, which was not unheard of. Then your LTV in three years time would only be 93% this is alright from a lending point of view and what would be considered an acceptable risk.

The problem now is that rather than rising by 10% per annum the housing prices are in fact dropping by that much, and they are set to drop even more. If you consider that drop, if a lender was to give 85,000 on a 100,000 property which continued to drop in value, in 3 years the LTV could rise to 118%, which in these turbulent times is simply not acceptable. This is why lenders are now slow to lend out quantities much over 85%.

So what does this mean to the bailout and the future of the market? Well in my opinion, and I may be right or wrong only time will tell, I think that the bailout will have little effect. Yes the lenders are under a commitment to lend at the levels of 2007 during 2009, but if you understand what has been said in my previous paragraphs they cant lend at the high loan to values. Most of the urgent cases for lending are the people coming out of rates that have been arrange in the last five years, these people are going to be pushing the LTVs due to the current house price falls.

In addition you will also have to factor in the situation that a lot of people over the last five years have obtained self certification mortgages. Most of these mortgages are now not available due to the fact that they represent too much of a risk for the lenders, and if they are available they will be at much reduced LTVs, so what are these people going to do?

So whilst I do welcome the money that is being injected into the finance market I sadly think that whilst property continues to fall and lenders fail to have the pre 2008 appetite for lending it is more than likely just going to be stockpiled. This will have a domino effect as house prices will continue to fall because of the lack of lending at the right LTV with the right lending criteria which again will make lenders even less willing to lend. I have to say this is quite a quandary and I honestly don't see how it can be stopped until someone has the bravery to just lend knowing the calculated risk it represents I think it is fondly known as taking a punt!.

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Credit Repair Help - It's Not As Hard As You Think!

By Mark Alison

It's really hard to go and live in this world with bad credit. People everywhere are in debt and in need of help. What are you supposed to do when you want to make that big purchase and the loan gets denied?

It's not that hard to get your credit repaired. All it takes is a little time and a little effort on your part. You must be diligent with your spending and take a few simple steps. Repairing your credit will not happen overnight.

The next time you order your fancy coffee at the drive through, think about this, How much a month do you spend on just coffee? A typical fancy coffee costs about $3-$4. if you have 4 a week, that's $12-$16 a week or $48-$64 a month! The key to credit resolution is budget. Cut back on frivolous purchases and put the money towards paying your debt off. It's hard but necessary.

First, get a credit report. The three major credit agencies are Equifax, Experian, and Trans Union. This will help to see what you owe and who you owe it to. There are plenty of online website that can help you with this.

The next step is contacting the creditors. I know this is something that is somewhat dreadful, but it must be done. You need to enter payment arrangements and schedule promise to pays with your lenders. This is the first step in the right direction. Any promise to pay or payment arrangement should be in writing. Sometimes, if you offer to pay off the full amount, they will let you pay off the amount at a discount.

Now you need to pay off your credit card debts. Cut up the cards and start paying them off. Close all the accounts you have except your three oldest ones. Credit scores are based on history of accounts. Even if these lines of credit are opened, you don't need to use them unless it's an emergency.

It seems simple, but pay the bills on time. This will be the best thing for your credit. The collections and creditors are willing to work with you and understand the situations you may be in. Any payment for the month is good, if you cant afford your full payment, you can still give them a good faith payment of as much as you can afford. This will at least show you attempting to work with the creditors.

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Disclaiming Spouse Works for Reverse Mortgage - But Be Informed

By Ignego Vanrock

Mortgage companies factor the amount of available funds, for a borrower to receive, based upon current interest rates, home value, and age of borrower. Older reverse mortgage borrowers receive more money their younger counterparts.

If two borrowers are on the mortgage (i.e. married couple) the reverse mortgage lender uses the age of the younger of the two borrowers as the determining age factor.

Since one of the ways a reverse mortgage ends is when the last person on the mortgage passes on reverse mortgage lenders must play the percentages to reduce their chances of the loan amount inflating above and eliminating the equity in the home.

With that in mind the lender must give the younger borrowers a lower loan to value ratio than the older ones. The young ones will be in the home longer, and the lender must account for the power of compounding interest working against the security for their investment.

That being said borrowers may realize a dilemma if one spouse is quite a bit older than the other. If the couple needs a sizable sum of money out of the mortgage, the age of the younger borrower can dismantle this plan.

Many couples find a way around this problem by choosing to disclaim the younger borrower from the loan. By doing so, they can get the cash their after.

Theyve accomplished the goal! Yeah!

There are, however, ramifications to this maneuver. The biggest one centers around the little known fact that sometimes we, as mere mortals, occasionally die.

The bank will at some point discover the eldest borrowers death and will demand payment. The younger spouse then has about twelve months to return the due amount.

People with tons of money in the bank and investments dont normally get reverse mortgages. With that in mind the spouse will 95 times out of 100 be forced to sell the home to pay the lender.

Houses are more than just buildings, and that is especially true for seniors. A house is a memory-filled home. If disclaiming a spouse to get a reverse mortgage is on the table, be positive the loan merits the probability of losing the home and its memories in the end.

Disclaiming the spouse should be done on a need basis and both spouses should understand and accept the future consequences.

The Price of Free Reverse Mortgage Info

By Revmorti Vanrock

If you are reading this now, you probably have already heard about how reverse mortgages can help people ages sixty-two and up take care of needed expenses.

What you may have heard is that equity in the home can become spendable money, but the how of it isn't quite clear. So you Google reverse mortgages to see what comes up.

You are pleased to see so many informational websites offering free guides and informational booklets on the reverse mortgage. Its like a bonanza for people just like you who just want some basic information.

You notice you can fill out a form and a report will be sent to your home. Great! Thats what you want, so you fill out the form and wait.

What you may not know is these websites are not non-profits. These are lead generating websites designed to capture your information and hopefully make a profit.

The website owners make money in one of two ways. One, they could be lenders themselves and are looking for more customers. With your information they can contact you and attempt to get your business.

The second way is by selling leads. This is a major occurrence in the reverse mortgage trade. Some websites which appear to be the most educational websites are also major money makers.

These folks get your information and immediately sell it to a reverse mortgage company for them to contact you.

You fill out the form, wait for the info, and little do you know, youll be receiving a phone call from a local reverse mortgage lender. He or she will remind you that you filled out the form and of their affiliation with that website.

Prepare for more than one phone call if you have entered an information request on several websites. You will be contacted from several companies.

And by the way, it is a very competitive business so you can expect multiple calls from each of these folks attempting to garner your business.

Getting free information online regarding the reverse mortgage doesnt mean you don't pay! You pay in the form of your time as the calls come in.

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Can A Car Be Secure?

By Susan Tanner

Security is a major concern with the current ecomonic problems in the United States. Job security is of utmost importance to many people right now. But what about security for the vehicle that takes you to and from that all-important job? Car insurance provides a measure of security for your transportation.

With so many car insurance companies out there, you may ask which one offers the best plan or value for your car. This is the main reason why it pays to get several quotes from different companies on the cost of insuring your car. Compare the rates and then decide which one is best for you.

A low price should not be the only deciding factor in buying insurance. There are a number of items that need to be considered before making your choice. Consider the number of drivers to be insured. What about the drivers' ages? Are there any features on the car that will provide a discount? Will the insurence cover the loan on the car? What coverages and limits of liability should a person have? What are the state-specific requirements for auto insurance?

If the insurance company is covering only one driver, a middle-aged person, any insurance company will have numerous rates for that. But what if there is an 18 year-old wanting to drive the car? Multiple drivers with different ages can be more costly. Exploring multiple quotes is essential here. What do the different companies have as far as rates for a teen-ager? It is necessary to cover all possible drivers, which can make the rates higher with some companies.

Vehicles with multiple air bags, anti-theft devices, and electronic stability systems are usually able to be insured at a discounted rate. The cars of today are made standard with seat belts. Nevertheless, check with your insurance company to see if they will offer a discount because your car is equipped with them. Insurance companies usually offer a discount with the standard and optional features of a modern car although it varies.

If the car is one that is being bought by a loan, rather than a car that is leased, special attention needs to be focused on the area of accidents. In the event of the car being totalled in an accident, the insurance company needs to cover the remaining amount of the loan. Not all companies will do this, so multiple quote are imperative.

As a possible customer, compare the various coverages available to you by the insurance carrier along with the limits of liability. You want to be sure that the cost of the coverage is one fits your budget. As mentioned, your state may have specific minimum requirements for insuring a vehicle; so donat overlook this either.

In short, do your homework. Multiple car insurance quotes will help you get the insurance you need at a price you can afford. Check each company's quote carefully. Compare each quote line item by line item. If it is Allstate that has the best coverage and price, go for it. But until you compare, don't go anywhere. Uninsured is a poor choice when there are so many companies to choose from. Insurance equals automotive security during a time of economic insecurity.

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Credit Cards For People With Bad Credit

By Gray Rollins

If you have had credit trouble or other financial difficulties in the past, it can be difficult, if not impossible to be approved for a credit card. This is a very heavy hardship, since a credit card is needed to do many things now.

If you want to buy plane tickets, rent a car or reserve a hotel room, you need a credit card; any kind of online shopping also requires a credit card. It's increasingly difficult to do a lot of things without one, in fact. There are a lot of economic activities which are simply not open to you unless you happen to have a credit card - it can be incredibly frustrating!

However, there is some good news. Even if you have bad credit, it is still possible to get a credit card; there are a couple of options available to you no matter what kind of credit history you may have. These credit cards come with some conditions and charges not associated with traditional credit cards, but they can help you to participate more fully in the economy and can also help you to rebuild your credit.

If your credit history is less than perfect, then there are cards available from some credit card companies which work like traditional credit cards, but have higher interest rates and annual fees than an ordinary card. These extra costs can be well worth it when trying to reestablish a good credit history and have the conveniences offered by having a credit card.

Another option for people with bad credit who want to get a credit card is a secured credit card. You will have to put down a deposit in order to secure the card (this is usually a few hundred dollars) and these cards will also usually have a low limit on spending, but they can help to build your credit rating and can be used just like a traditional credit card.

Yet another kind of credit card for those with bad credit is prepaid credit cards. A prepaid credit card is used just like a traditional credit card, with the difference that they are tied to an account which you must deposit money into before using the card. These are nice since it is impossible to spend more than you have put into the account - so you can't get yourself into debt.

Prepaid credit cards let you buy online, rent cars and do all of the other things which a credit card is necessary for.

When you find yourself with bad credit, it can be a difficult situation. Don't despair though - these credit cards for bad credit can help you to reestablish your good credit and demonstrate your trustworthiness to lenders again. Just remember to use them with care!

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