Category: Loan & Finance

How Equipment Repair Loans can Benefit Dealers

Companies or industries that deal with heavy equipment, usually machinery or vehicles like trucks or trailers, often suffer in terms of repair costs due to the damages inflicted upon the equipment from over usage or poor maintenance. Repairs can be very costly and the company may not be able to cover them, especially if they are new and/or small in the industry. Even long-time dealers may find themselves in this situation if they hit a low in terms of economic conditions. Thus, at times like these, dealers should consider taking an equipment repair loan, which could prove to be quite a convenient option.

Truck repair loans are given by certain agencies, available both online and offline and they give these loans depending upon the worth of credit available and at how much the equipment is valued. Once these factors are determined, the dealer will have to submit necessary documents, as required by the agency. These documents should include all relevant details regarding the business, its economic conditions and also the relationship it shares with its regular customers. The sooner the dealer submits these documents, the easier it will be for the agency to approve the loan.

Taking an equipment repair loan can benefit the dealer and his business. Listed below are a few of those benefits:

  • Equipment repair loans come with all facilities that will provide full coverage for the entirety of the repair costs. Often dealers use their credit cards to pay for repairs, but this may not be wise if there is no cash set aside for repairs exclusively because it might lead to further debts in the future. Rather, equipment repair loans act as a convenient means to an end – allowing you to repair your equipment at favorable rates. In addition the dealer can spend a portion of the loan on household or personal purposes if needed.
  • There is a wide range of options available to choose from when a dealer takes an equipment repair loan. These options include credit cards that are issued exclusively to be used for repair costs, readily accessible cash or even lines of credit. A line of credit helps the dealer to reach an understanding with the agency and decide upon a fixed amount. This is the maximum limit and the dealer can withdraw any amount of money he needs for the repairs without crossing the limit, during a particular period of time. During this period, the dealer will have to keep making the minimum payments. All these options are flexible and the dealer will be able to decide which will accommodate the repair costs most conveniently.
  • The process of applying for and taking out an equipment repair loan is not at all long drawn, rather it is very easy and methodical. The process is one that will allow the equipment to be fixed and repaired in the least amount of time as possible and the dealer will thus be able to use his equipment very quickly.
  • More often than not, regular customers will ask for options that will require a longer repayment period. But as a dealer with certain conditions on credit, they might not always be able to offer this possibility. Thus, equipment repair loans can be used as a financing alternative that will take care of the customers’ repair invoice. The agency will provide that amount within days, allowing him to offer his customers longer repayment periods.
  • Allowing equipment repair loans to finance customer repair invoices help the dealers keep small amounts of cash that can be used to fund the total repair bill for their equipment along with incremental revenue. And the dealers do not lose out on the good business rapport with their regular clients.

Contented by: Trufco.com

How to get a Startup/Small Business Loan if You Have a Bad Credit Rating

Having a bad credit will limit you from a world of opportunities. You build a bad credit record whenever you fail to repay a previous loan, or if there is considerable delay in between your payments. These mistakes add up and minimize your chances of obtaining loans in the future. A good record, however, will increase your chances of getting loan. Nobody wants to trust a defaulter with their money, and an individual with Bad Credit Loan is the epitome of a defaulter.

In this article, we will be discussing the ways in which you can land a loan, in spite of having a bad credit record. Although there are ways of getting loans, it is advised that you work on improving your score. Now let’s take a look at the alternatives:

Friends and Family

The first place you can turn in for a loan is your friends and family. It has been found that the funding behind most startup comes from a combination of resources from the family and friends. Other lenders may deny your loan due to your bad credit record. However, that’s not the case with the people that know and trust you. If they think that this venture will end up in a success, they will support you financially. While this is the safest and easy way to acquire a loan, it carries a lot of risks, because failing to repay the debt might strain the relationship between you two.

Personal Loans

There are lenders who offer personal loans in spite of you having a bad credit score. However, since there is a high risk in your case, the interest rates levied are usually quite high. You will get the loan, but the high interest rates might prove to be a bit troubling. Before signing the deal, make sure you read the terms and conditions carefully. Double check their conditions and recheck the interest rates.

Crowdfunding

Crowdfunding is becoming very famous nowadays with the help of a lot of web portals offering such services. If people think that there is potential in your product, chances are, they will fund it. This particular method includes you to create a campaign and your success depends on its presentation. You will need to make an appealing presentation of your product that will make people love and invest in your idea. Web sites such as Kickstarter, FundRazr, and Indiegogo are some of the websites that help you present your ideas to the crowd and collect the capital you need from them to make it happen.

Selling Shares

Another way to get loans is by selling shares of your company. The lender will give you the money you require to start your business in exchange for shares in your company. Note that agreeing to these terms will enable the party to take an active decision in the growth of your business since they own some of the shares.

Hence, there are many ways you can land a loan for your startup, you will just have to look in the right place and determine the appropriate option for you.

GETTING A MORTGAGE: WITH A POOR CREDIT RATING

As seen in the statistical tabulation, mortgages are one of the most critical elements of the financial crisis. A poor credit rating may often be a major problem in acquiring a mortgage, but there is good news; lenders are prepared to help those whose applications may be refused elsewhere. This was often the case between 2007 and 2008, when a similar financial crisis emerged due to poor credit. The main lesson to be taken from this is that obtaining a mortgage can be substantially more difficult for people with credit issues. The particular criteria of the lender often supports the credit crunch, thus making it very difficult for borrowers to maintain a good credit score.

Mortgage applicants with poor credits or low credits may not be viewed as positive members by the lenders. Lenders require the assurance of transparency on behalf of the borrowers that they can properly manage their credit. This is necessary so that keeping the track record of debt is well conducted and up to date. It is also important to keep in mind that despite a large deposit or a handsome salary, a bad credit rating may result in the refusal of a mortgage application.

How?

So now the question arises: how can a person with a poor credit rating be approved for a mortgage? Banks and building societies are very cautious about whom they are lending to. Therefore, these institutions tediously review the applicant’s financial history. This is to verify whether the potential mortgage applicant has defaulted any debt on any payments in the past. Lenders determine whether they will offer a mortgage based on 3 factors highlighted below:

  • the credit report of the person
  • if any court judgment is present
  • any kind of bankruptcy proceedings

If any of the above factors applies to any of the applications, the chances of being eligible for the mortgage deal slowly tend to decline. Or in may be that the applicant has to pay a higher rate of interest, regardless of their financial situation.

Maintenance Check of Credit History

 

Before applying for a mortgage, one should thoroughly review the credit report or credit history. This is especially important in cases whereby chances of refusal seem high. Before approving the mortgage, lenders will review the pay slips of the employee or typically the past three years of the applicant’s account (if the person is self-employed – they will generally ask for bank statements). It is critical that the applicant review a variety of potentially simple oversights, such as not being registered on the electoral roll or failing to cancel credit card accounts no longer in use, as both may have potentially negative impacts on their credit rating.

What is Bad Credit Mortgage?

 

Basically, bad credit mortgages do not exist. They are nearly the same as standard mortgages and are nothing more than mortgages that a lender will offer to people who may fail credit checks with other lenders.

They are also known as “Subprime” mortgages, or adverse mortgages. They are in place to help people with generally poor credit histories and assist them in climbing the property ladder. However, interest rates and charges on subprime mortgages are higher as people with poor credit ratings are deemed to be at a higher risk. However, once the applicant has spent some time paying off their bad credit, the mortgage on time will recover the poor credit ratings, which should allow the credit-y be able to move to a standard mortgage slab with a lower credit interest.

Can We Get A Bad Credit Mortgage?

 

Typically we find that the interest rates on poor credit mortgages are higher than standard mortgages. Therefore, a larger deposit is required for lowering the interest rate as there are options available. Generally, they don’t accept applications from persons made bankrupt in the last six years, unless the credit file of the referred is cleared without any discrepancies.

Obtaining a Mortgage with Bad Credit: How Does it Work?

 

A bad credit mortgage is similar to a standard mortgage. The main differences occur in terms of rates and interests. Several types of bad credit mortgages are available; such as fixed, variable and discounted rates. However, that doesn’t mean that they will have better rates than the standard mortgage. In fact, the opposite is likely to occur in most cases.

The main factor behind this is that the mortgage provider has less reason to loan a person a larger amount of money at a lower rate of interest rate if the credit rate is poor. The risk on their side is mitigated by the higher interest rate and larger deposit that occurs during payment. Applicants will probably need a deposit of at least 15% or more of the value of the property. If they can get to about the 30% mark or higher, they will have a significantly higher chance of having their credit approved.

How to Remortgage with Bad Credit?

 

Remortgaging with bad credit might not necessarily be something of worth, but sticking to the current lender is always preferable. Sometimes the credit score of the person is dampened due to mortgages already in place. This results in the worst rate of mortgaging. One can exit the process of re-mortgaging, whereby money is eaten up by the booking fees and, eventually, one can save less at low rates.

Finding Bad Credit Auto Loans in Canada

Finding bad credit auto loans in Canada is not as difficult as it sounds. All you need to do is follow a few steps and abide by a few rules before making an arrangement for acquiring the loan. Before you apply for a loan you need to have a good idea about your credit score and the way you use your credit card in various scenarios. Getting a credit score and credit report from some of the main agencies is one of the best ways to begin. However, simply receiving the report is not enough; one must properly analyse the report and take notes of negative points and question them. This is a very good habit to get into since negative marks affect your credit scores incredibly because removing negative credit report information can improve your credit score.

Now, the question arises as to “where will YOU find a bad-credit auto loan in Canada?”

The answer is simple. There are quite a few agencies which provide the same. Some of them include:

  • Lending Cooperatives: There are many lending cooperatives which provide auto loans at very low rates. These lenders are generally available locally and deal with smaller areas. In order to acquire the loan all you need to do is have a few known people in the company, some insiders, some sources or simply a guarantor or reference in the company. This may also cost you a few extra bucks which might seem harsh, initially, but when you calculate your long-term expenses you’ll realize that all that effort was worth it. In the long run it will save you quite a lot of money.
  • National Lending Organizations: You can also depend on national lending agencies instead of the local ones as they provide higher amounts of money with higher risk factors. However, they are not capable of providing smaller rates if you had a bad credit report.
  • Local Dealers: There are certain local dealers who concentrate on profit alone and don’t care if you have a bad or good credit history. They will tend to offer higher rates of APR which might be an issue if you are planning to look for cheaper rates. They will also provide some add on services and may make up charges; these may include warranties, service plans and maintenance programs. Some people might be using these facilities but for others it might just be a waste of time.
  • Bad Credit Lenders: These are people who are ready to lend you against your bad credit habits. For this, you should do is stick to the well-known sites to make sure you have a lower chance of being cheated out of your money. Random sites might just be frauds and you might end up losing everything.

To find the best loans in the poorest credit you need to do quite a lot of research and analyse the data before deciding where to go. Furthermore so as to take care of your credit score and the expenses you make on your credit card, you need to be a little more conscious and have a complete idea about your habits in turn trying to curb them and make as less negative credit points as possible.

Never forget that the chances are high that you will be stuck with the company that provides your Bad Credit Auto Loan for five or six years, so you can surely spend a few hours doing the research on the company.

10 things to know about truck repair financing

Trucks must be regularly maintained in order to prevent the eventual break down. It is therefore inevitable to make some regular repairs. The average cost of a truck repair is nearly $5000 dollars. This important capital represents a serious challenge for a businessman unable to meet the cost of repairs by himself. It is necessary to get the truck on the road as quickly as possible to profit from its use again. Luckily, truck repair financing solutions are available.

The truck repair financing can be broken down into 10 steps:

  • A commercial truck repair financing program is found by the businessman.
  • The loan is generally based on loan-to-value or remaining truck value (in the range of 25% to 50% of the original value of truck).
  • The auction value, low market value and trade value of the truck can be used in determining the loan value.
  • A few days are required for the completion of the
  • Different teams or centres offer different interest rates and easy approvals of the loan by considering the cost associated with the truck repair.
  • The loan given for truck repairing is based on the equity and therefore serves as a great option to those who have poor credit score.
  • If a traditional bank is consulted, a good credit score is usually needed in order to obtain the necessary funds to repair the truck. Commercial financial centres therefore represent an interesting option for those with bad credit.
  • Though a bank can provide more money and better terms than any truck repair financing program, there can be some problems with the transaction process with banks that can’t happen with the smaller-sized truck repair financing
  • Before taking a loan, there is a rigorous process through which all the terms are reviewed. Contracts are to be read carefully.
  • Any equipment-leasing company can consider truck repair financing.

There are several reasons why truck financing can be useful:

  • A new vehicle is to be purchased: A high quality truck is needed to run a successful business of transportation. A few new trucks are required and the actual trucks are deteriorating or their number doesn’t suffice the needs of theGetting a new truck is a costly investment so truck financing is a good option to consider
  • A vehicle needs to be repaired: One can find it more economical to repair an existing vehicle than to buy a new one. It is all about what will better serve the needs of the company. However, having a truck down might represent a loss of revenue.
  • Investing in equipment: Aside from trucks, a lot of equipmentis required to carry on a successful transportation company. A moving company should have towing equipment along with the additional storages. A transportation loan can help cover the costs of the extra tools required (depending on the specific services of the business).
  • Hiring more drivers: More drivers can be required in order to meet the needs of the business. During busy times, the part time drivers can be called and payments should be done on time. A business loan can be required in order to maintain a smooth business operation.
  • Investing in marketing : In a transportation business plan, some money should be allocated to This marketing should be done strategically in order to inform customers about your business. These marketing expenses can be considered with the help of a business loan.
  • Providing new services: The transportation industry is known to be very versatile. Extra services can be offered by a company in order to make more profit. Therefore investments should be done for the future benefits and a business loan can help finance this.
  • Extra cash is necessary: If the sales get a boost up in a particular season, then investments should be done in truck repairmen along with other maintenance expenses during the off-season.
  • Weather related expenses: In the trucking business, payments need to be made for the additional equipment that will protect the truck against harsh environmental conditions. Durable tires are necessary during the winter season. Several precautions are to be taken to protect the truck from the roads variable conditions. A business loan can help cover such costs.
  • Purchasing of branding materials: The business can stand out by investing in branding The company’s logo should be featured on the truck as well as on bumper stickers, business cards, pens and other business items. This can increase the notoriety of the business and attract more customers.
  • Investing in new technologies: New technologies are available to the trucking industry. Application of GPS tracking of the trucks can be beneficial to the business as well as the customers. Investing in technology can improve a company’s performance and profitability, and a business loan can help in accomplishing this.

There are a lot of reasons for repairing a truck. With the help of different truck repair financing programs it is possible to pay the cost of truck repairing and return your focus to the success of your company.

Contented by: Trufco.com.