Starting my new business was a difficult task, from payroll to inventory; much money was needed to survive and to help me thrive against my competition. Currently, there are many ways to secure funding for a new venture like mine as well as to gain money needed to expand or grow an existing company. Once you secure the capital to start or grow your business, you can execute your business plan in a manner that increases your overall wealth and stance in your industry or business community.

Business Funding Options For New Businesses and Start Ups

When considering places to tap for financing, banks and lending networks like Lending Club come to mind. Although there are many loans available for startups and existing businesses, they require good credit and much paperwork to obtain. Many also require that you pledge collateral (and many times, something of great value) in order to acquire financing with secured bank loans.

Unfortunately, many businesses aren’t able to meet several of these financing requirements, so they must turn to alternate forms of funding. Some entrepreneurs decide to take on credit card debt to operate their ventures. But a merchant cash advance is what I’ve used as a great option for my funding needs as these advances are easy to get and can be obtained by any business looking for capital that expects credit card sales. I paid my advance company back through revenue my business earned via credit card purchases. From my experience, I believe that retail and food businesses can obtain quick funding rather easily. The amounts I paid back were variable based on my sales for the month, so flexibility is one great advantage to a merchant cash advance.

Besides bank loans and merchant cash advances, there are also government programs that can help small business owners find sources of funding and can sometimes provide capital to businesses in some cases. Government grants are also available and these grants are free money to help fund business ventures. They are difficult to come by, but information can be found online about the government grants that are available for your situation.

While there were many options for funding my new business, each had its advantages and disadvantages. Depending on your credit and level of collateral, you can find the right loan to satisfy your capital needs to expand or start a new business in your town. With thorough research, you can assure your company’s well-being and overall prosperity.

 
This guest post is brought to you by Business Loan Option.

Business Funding Options For New Businesses and Start Ups is a post from: Banker, Saver

It’s very easy to get overwhelmed with debt these days. Credit cards. Personal loans. Mortgage refinancing. Store financing. The opportunities for getting credit are seemingly endless!

And once the debt starts building up, it’s hard to stop. High interest rates can cause your debt to multiply faster than you can make payments. So, how do you know when it’s time to get help, and take action — so you don’t end up way over your head in credit card debt?

Your Credit Card Debt: 5 Warning Signs It’s Out of Control

Here are 5 warning signs that your credit card debt is out of control:

1) You need to keep getting more credit cards to make ends meet. If you reach this point, realize that you’re spending money that you don’t have. So you need to find a way to make more money. And you need to find ways to cut your expenses. And if this doesn’t get you back on track, then it’s time to get help.

2) Your interest rates are mostly (or all) over 20%. This is a sure sign that you’ve missed some payments. With interest rates this high, there’s no way you’ll ever make any real progress in paying off your bills. So call your creditors, and ask them to lower your interest rates. If they won’t, then focus on making your payments on time for 3-6 months, and ask again. Note that lower personal loan rates do exist, and may be something to look into if you are ever considering debt consolidation as an option out of your predicament.

3) You are losing hope and don’t know what to do. Struggling with debt is stressful and discouraging. You need to do everything in your power to make a commitment to getting out of debt, and start taking action. Letting the problem linger will only make you more miserable. No matter how bad your situation looks, it won’t get better if you don’t try to make it better.

4) You don’t know how much you owe. Be honest, if you don’t know how much you owe, how can you ever hope to get out of debt? You don’t need to know the amount to the last penny, but you should know at least a “ballpark” estimate. Knowing won’t make life easier, but not knowing is like hiding from the truth. And you can’t deal with the truth if you don’t know what it is.

5) The creditors are calling you regularly. Nobody likes to get these calls. But the absolute worst thing you can do is ignore them. If you can pay anything, no matter how small, answer the phone and tell the creditor how much you can afford. If they can’t help you, or you truly can’t afford to pay anything, then you need professional help.

 
Kris Bickell is the owner of www.Debt-Tips.com. If you’re having trouble paying your bills, find out if credit card debt negotiation is the right debt reduction strategy for your situation.

Your Credit Card Debt: 5 Warning Signs It’s Out of Control is a post from: Banker, Saver

What’s A Home Equity Loan?

A home equity loan is a loan where you, as the home owner and borrower, use the equity in your home as collateral for the loan. If you take out a home equity loan, it will create a lien against your property and in effect, reduce the actual equity you have in it. Such a loan is often referred to as a second mortgage, because it’s secured against the value of the property, just like a traditional mortgage.

Often, home owners will take out home equity loans for large home repairs or to pay bills. As with any loan, careful consideration must be given before taking out a loan against your home. Make no mistake, the security for a home equity loan is your house. When it’s used as collateral, and if you are unable to make the payments, the lender will take possession of your most precious asset to satisfy the loan. I think it’s quite a risky set up, so think hard before pursuing something like this!

Home Equity Loan vs Home Equity Line of Credit (HELOC)

If you are considering a home equity loan, you may be weighing the options between a loan or a line of credit. Depending on the lender, the details will be different. Be cautious of whom you are borrowing the money from and carefully peruse the details of any loan, but be especially careful of any loan that takes your home as collateral.

There are some general differences between home equity loans and home equity lines of credit:

• A closed-end home equity loan may be right for you if you need the money all at once. If you need to replace the roof, build a garage or consolidate other debt, then a loan with a one time disbursement may be the answer. The interest rate may be fixed, as are the monthly payments: this may afford you the simplest way to manage your budget.
• A home equity line of credit (also referred to as an open end home equity loan) may be the solution if you need money disbursed at various intervals. This could be the case if you are renovating your house over the period of a year or more, and you are paying different contractors or home improvement stores as you need supplies. Perhaps you are using your home equity line of credit to help a child attend college. Tuition, rent, books and monthly expenses will differ from month to month so a HELOC may be the best fit for you. The HELOC operates similarly to other lines of credit: the interest rate will likely be variable. Your payments may be interest only and will of course, depend on the amount of money you’ve borrowed.

The Scoop On Home Equity Loan Rates and Fees

There will undoubtedly be numerous fees attached to any home equity loan. Make sure that you have comparison shopped between lenders and that you have checked into the fees and rates you are being charged, for they vary from lender to lender. Some fees and rates you will want to check into:

• Annual Percentage Rate: the cost of credit expressed as a yearly rate, including interest and other credit costs.
• Will the interest rate change? What are the terms: is it fixed or variable?
• Application or loan processing fee.
• Appraisal fee.
• Surveyor and conveyor fees or valuation fees.
• Document preparation or loan processing fees: are you entitled to refunds of your application fees if you don’t receive the loan?
• Broker fees: how is the broker to be paid?
• Is there a balloon payment? This is a large payment due at the end of the term.
• Are you allowed to make additional payments, and are there penalties for early payoff?
• Have you been quoted on insurance? Is it necessary or optional?
• What are the total closing costs of the loan?

Most loans will have fees attached to them, but when your home is being used as collateral, there are additional fees and charges. So read the details, ask lots of questions and evaluate potential lenders to ensure that you are not paying more than necessary in fees.

Home Equity Loan Basics: Should You Borrow Against Your House? is a post from: Banker, Saver

I don’t know about you, but vehicle maintenance, unreliable vehicles and I do not get along. Repeat: we do not get along. Last year my husband and I started looking around for a new, (whoops, when I say new I mean newer, not new) vehicle. I’ve got a used car three years in my possession with way too many miles per year and I’m starting to think it’s time to be looking around for a replacement.

But with the way gas prices were behaving in 2008 and with me stuck with an SUV gas guzzler, it wasn’t a good time to talk trade. So, another year has passed and now the car is starting to show its age: engine lights are coming on; the electric door locks have quit, leaving me unable to lock my vehicle; the seat is cracking. Is anything made to last more than 4 years in this country anymore?

So, time to start looking at options. The biggest job may not be searching for the vehicle, but reviewing all the financing options. The vehicle shopping is more fun, mind you, but let’s talk about the financing part. I strongly believe that it’s important to decide how much you can afford and how you’re paying for a vehicle before actually shopping for one. Nothing is worse than picking out a vehicle only to find out that it is not within your ability to pay. It is great to be able to drive a vehicle that is paid for, but if you are like me and 70 percent of Americans, you will likely finance your next vehicle purchase.

Dealing With Dealer Financing

Dealer financing is often the most convenient source of financing. As with most things, convenience comes at a higher cost. Interest rates are typically higher than your bank or credit union and can also have higher search, registration and document fees attached. You should be aware that the dealer actually sells your loan to another lender. This could be to the bank or credit union that you typically deal with. Hence, it’s no surprise that dealers generate a lot of income from dealer financing.

Do your homework before entering the dealership by getting a pre-approved loan from your financial institution. You can accept these offers to try and reduce the dealer’s interest rate and make the various lenders compete for your business. Then, take the best deal available.

Financing Options Comparisons

Financing with your bank or other financial institution. Since there are many programs available, it is difficult to wade through all the options that may be thrown at you when shopping for financing. Your financial institution is going to have some cut and dried options: in particular, the interest rate, document preparation and registration fees.

Financing with dealers. The dealers, however, may have a plethora of options. Cash back and zero percent deals that are offered may still cost you more over the term of your loan than a low interest rate from your traditional financial institution. Make sure you look at the total cost of credit over the term of the loan — not per month — to ensure that you are paying the least amount over the course of the loan.

Having your financing previously arranged can sometimes get a few dollars knocked off the price as well. When they ask, “Will you be using our dealer financing, today?” I get great satisfaction from the look on the finance guy’s face when I say, “Thanks, but no, I’ll write a check for that.”

Financing with a home equity loan or using collateral. There is a third option of a home equity loan to help you purchase a vehicle. With this option, if you have enough paid-up equity in your home, you may qualify to borrow against it for a vehicle. The interest rate will be lower than for other types of consumer loans. But exercise extreme caution going this route because a home equity loan means your home is now the security for your vehicle. Any default on payments means your home is at risk. There are many fees attached to home equity loans (or lines of credit) and you must do your homework to ensure this is the route you wish to take. Lenders may give you this option without explaining all the implications attached to it. Traditionally, home equity loans are used for repairs, maintenance, etc. on the home involved. In today’s economic environment, it seems that every lender out there is giving home equity as an option for financing almost anything. Do your due diligence before trading the security of having your home for the satisfaction of a luxury purchase.

In this day and age, a vehicle has become a big expenditure and should be researched and financed carefully. Do your homework and sleep well knowing that you got a great deal!

Compare Auto Loan Financing Options Before Buying A Car is a post from: Banker, Saver