thewebnewyork.com http://www.thewebnewyork.com My WordPress Blog Tue, 02 Apr 2019 14:42:41 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.1 How Not to Fall Victim to Expensive Cash Loans? http://www.thewebnewyork.com/how-not-to-fall-victim-to-expensive-cash-loans/ http://www.thewebnewyork.com/how-not-to-fall-victim-to-expensive-cash-loans/#respond Tue, 02 Apr 2019 14:42:41 +0000 http://www.thewebnewyork.com/how-not-to-fall-victim-to-expensive-cash-loans/

It takes a mother of inventions – that’s what we say when we can not deal with something, and come up with a clever way to solve the problem. By analogy, one can say that a cash loan, a mother’s financial need. As soon as we find ourselves in a material hole, we know exactly where it pays to look for a cash loan that will meet our financial needs. Remember, however, that very often we are under very high pressure, which means that we do not have time to browse each offer separately. And unfortunately this approach can lead us into a very expensive loan.

Do you really need a loan?

Do you really need a loan?

Such a question should be asked by everyone before finally sending a request to the bank. Unfortunately, it is not so easy. Because the cash loan intended for any purpose, by one group of people is actually taken more by force, but by the second group, out of pure luxury. After all, not everyone who decides on a cash loan has to be distinguished by financial problems.

Wealthy people, who have no headaches to save, decide to use an internet loan in order to realize their dreams much faster. However, here too there is always the risk of converting your financial capabilities. The general advice for these two groups of customers will be to avoid living beyond the state.

Only a cheap loan

Only a cheap loan

When the answers to all your questions are positive, then you need to find a convenient loan, which certainly will not cost us assets. Unfortunately, despite appearances, this is not a simple task. Above all, there are really many offers at the moment. Not forgetting that it is not easy to compare all cash loans. This is because in one bank we have compulsory insurance, and again not in another. A similar situation will apply to the conditions for lowering the commission. Not every bank gives such an option, and sometimes even conditions created by them, are not very profitable.

It will be a great idea to check the financial comparison website, which cash loans you can count at all, and what real interest rate each of them stands out.

]]>
http://www.thewebnewyork.com/how-not-to-fall-victim-to-expensive-cash-loans/feed/ 0
Always Negotiate the Loan Terms with the Bank http://www.thewebnewyork.com/always-negotiate-the-loan-terms-with-the-bank/ http://www.thewebnewyork.com/always-negotiate-the-loan-terms-with-the-bank/#respond Tue, 02 Apr 2019 14:03:39 +0000 http://www.thewebnewyork.com/always-negotiate-the-loan-terms-with-the-bank/

Going to the bank for a cash loan, we expect a ready offer, which we agree to or will not. If it is not very attractive to us, thank you and we are starting to look for a more advantageous option in a competitive facility. However, if it goes on like this, unfortunately we will start to spend a lot of time going to the banks with the likelihood that we will eventually settle nothing. Few come to mind to try to negotiate loan terms.

It’s worth starting from the beginning

It

Probably this rule seems quite funny. But really, if we decide on a cash loan, first we should find out what conditions all banks offer. It may turn out that we had no idea how the actual interest rate is calculated. It is known that the usual interest rate will be 5 to 10% percent. But by the way, we should not forget about adding commission or insurance. The best reflection of all offers can be found in the financial comparison engine.

What do we expect from the loan?

What do we expect from the loan?

Do not forget about our expectations for a loan? One person will want to make the loan cheap. Another person will again want to make sure that the insurance is not obligatory under any circumstances. Such expectations can really be very much. Each client can suggest what will be the most advantageous for him at the moment.

We should also remember that at present there is a very large variety of cash loans. Among them, we will exchange, among others, cash loans granted online, or within 15 minutes. Do not forget about financial products without security, or those provided directly in the branch, immediately giving cash to the client.

Most often, however, we pay attention to the final price. A cash loan is a financial product whose real interest rate will range from 5 to 40%. Thus, we see very large differences between offers. There are also short-term loans with an initial interest rate of 0% on the market. If we have a problem with calculating the installment and all costs of the loan, a good idea will be, for example, using a financial calculator. Usually we can find it on the bank’s website where we want to take out a loan.

]]>
http://www.thewebnewyork.com/always-negotiate-the-loan-terms-with-the-bank/feed/ 0
Loan Period Loan Agreement Loan | Distribution of Loans http://www.thewebnewyork.com/loan-period-loan-agreement-loan-distribution-of-loans/ http://www.thewebnewyork.com/loan-period-loan-agreement-loan-distribution-of-loans/#respond Thu, 21 Mar 2019 14:05:18 +0000 http://www.thewebnewyork.com/loan-period-loan-agreement-loan-distribution-of-loans/

 

Loan agreement

When concluding a loan agreement, the bank undertakes to make available to the borrower a certain amount of cash for a specified period ( loan period ). The borrower allocates funds from the loan to the purpose specified in the contract. The only exception is when we take out a cash loan for any purpose. In this case, as the name suggests, we can spend money on whatever we want. In addition, the borrower undertakes to return the borrowed amount of cash in the dates and amount specified in the contract and to cover the remaining costs of the loan. The bank is the dominant party in this relationship and has the right to control the spending and timely repayment throughout the entire loan period.

Loan period

The term of the loan is the time for which the loan agreement applies. In the simplest terms, the term of the loan is the time for which the loan was granted to us by the bank. The beginning of the crediting period is the time when the bank transfers us funds from the loan to us. The end of the loan period is the day on which we pay off the last installment of the loan, and thus we will repay the loan in its entirety. The loan period is determined in the contract.

Distribution of loans based on the loan period

  • short-term loan – usually the loan period is maximum 1 year,
  • medium-term loan – usually granted for a period from 1 to 3 years, the maximum loan period is 5 years,
  • long-term loan – the loan period is in this case over 3 years or over 5 years.

Shortened loan period

The loan period may be shortened. This is the case when we repay the entire amount due before the deadline set in the loan agreement.

Extended loan period

We can meet an extended lending period when, during one loan agreement, we decide to increase the loan capital, and thus its cost. Then, as a rule, to keep the amount of installments in the current amount, we extend the loan period.

The loan period may also be extended if we use loan insurance and postpone the repayment date. Due to the fact that we do not have to pay back the loan for a specific period, we extend the repayment period.

]]>
http://www.thewebnewyork.com/loan-period-loan-agreement-loan-distribution-of-loans/feed/ 0
Business Loans: How does it work? http://www.thewebnewyork.com/business-loans-how-does-it-work/ http://www.thewebnewyork.com/business-loans-how-does-it-work/#respond Mon, 28 Jan 2019 08:22:12 +0000 http://www.thewebnewyork.com/business-loans-how-does-it-work/

 

 

 

The company needs to constantly finance various investments: a business fund when creating or expanding the business, a buy-back of corporate shares, professional equipment, vehicles intended for the operation of the business. …

 

The Characteristics of a Business Loan

 

 

 

Among all the financing offers offered by the network of traditional banks, loan institutions and other specialized institutions, various modes of professional loan are possible.

In order to consider the best financing solution, some essential information is to be collected:

  • the global effective interest rate (APR) which includes all bank charges
  • personal security: bail
  • real securities: pledges on movable assets such as pledges or mortgages the contribution in own funds the market conditions:

In some cases, a medium or long-term bank loan may be attractive with a fixed rate, revisable or revisable cap (guaranteed ceiling rate)

In terms of granting loan to companies, each bank and specialized financial institution has its own offers (interest rate, repayment period …).

Business loan, also known as professional loan, is mainly intended for artisans, tradesmen, VSEs and the liberal professions, but all professional structures can use it.

 

 

The Different Types of Business Loan

 

 

 

 

Many financing solutions are available to businesses. it is possible to classify them according to their duration or the goods to be financed:

 

Cash Loan

 

 

 

 

 

The cash facility : granted by the bank for a few days of overdraft (payment of wages, VAT etc …)
The bank overdraft : permanent cash facility for a commission and negotiated with the banker. To use when cash is well controlled.

 

Loans by Signature

 

 

 

The Deposits :

 

All companies receiving VAT can use it. For cash requirements , the bank may, in certain cases, be a guarantor to the tax authorities, which allows a delay of 4 months in VAT refunds. The bank is also surety in other situations (certain customs duties or registration fees when buying buildings for example). Other types of deposits exist: reimbursement of down payments in the event of customer deposits paid, guarantees of retention of security in the building sector, financial guarantees of real estate agents, legal advice …

 

The documentary loan:

 

The bank undertakes to guarantee the importer the payment of the goods for export in exchange for documents certifying the shipment and the quality of the goods. The disadvantage is that the company pays a commission even in case of non-use.

 

The pre-financing loan to finance the operating cycle:

 

Advances on goods (loan on pledged stock, mobilization of claims born abroad …). This type of loan can reach 100% of the overdraft, lasts the time of the overdraft and its cost is linked to the money market rate.

 

The Loan Mobilization of the Receivables

 

 

 

 

The discount:

The company transfers its bills of exchange to the banker (bills of exchange, promissory notes, etc.), which pays him an amount deducted from the outstanding agios. The discount remains a binding procedure since the debtor customer must sign the bill of exchange. In the event of a payment incident by the debtor, the bank may turn against the company.

Sale Dailly:

The bank and the company sign an agreement and the latter gives the banker a statement of assignment of the receivables and the double of the invoices concerned.

Factoring or Factoring:

Financing technique exercised by a factor (financial company) within the framework of a convention. The factor buys the receivables from the company that wants cash on payment of a commission and the constitution of a deposit. The financial company is responsible for the recovery of trade receivables and can guarantee the company coverage up to 100% of the amount of its claims via loan insurance. This financing solution remains more expensive than a conventional loan, a large flow of receivables to be recovered is desirable.

 

Medium and Long Term Loan

 

 

 

 

With a duration of 2 to 7 years. medium-term loan concerns medium-term investments (industrial and agricultural equipment, etc.) and requires a contribution. In general, the amount of loan granted is between 50% to 75% of the amount of the investment.

Long-term loan is for a period of 7 to 20 years and is often financed by a specialized financial institution that finances loan by mobilizing the resources of bonds. This is the ideal loan for financing professional real estate.

 

 

Leasing or Leasing

 

 

 

 

 

The lease of furniture :

The company chooses a piece of equipment and has it financed by a bank or a specialized loan institution that owns it. The latter pays the suppliers and leases the property to the company that pays rent.

Several options are available at the end of the contract: either acquire the equipment at a residual value by lifting the purchase option, or return the equipment or continue to rent the property by paying reduced monthly payments.

This financing technique is ideal when hardware obsolescence is fast (IT, office automation, etc.), and rents paid by the company do not appear on the balance sheet. They are recognized in operating expenses. Learn more about car leasing

Real estate leasing :

Financing solution that allows a company to rent the premises it occupies for professional use. It has the possibility to purchase it at the end of the contract.

The lease-back :

Technical refinancing of invoices of equipment already paid. The bank or specialized loan institution pays the company the amount of the invoices paid at a refinancing rate and a commission.

 

Other Types of Loan

 

Supplier loan: loan granted by the supplier under a commercial contract by negotiating payment terms (30, 60, 90 days …)

The tax loan: reimbursement by the tax authorities of the VAT paid but not paid according to a scale. A company in difficulty of cash can make the request.

The campaign loan: is for companies that have a seasonal activity. It makes it possible to sustainably finance operating needs not covered because of fluctuating cash flow.

 

 

]]>
http://www.thewebnewyork.com/business-loans-how-does-it-work/feed/ 0