Secured business loans – equipping your business blue print with concrete groundwork Written by Amanda Thompson
Somebody once said, ‘Business is not financial science; it's about trading, buying and selling. It's about creating a product or service so good that people will pay for it.’ So you are full of ideas and ready to take on world. No matter how striking your business idea is, it still needs a solid foundation to work on. Without a concrete financial plan your business plan might not be as feasible as it might seem on pages, realistically speaking. Secured business loans give you opportunity that you need to be financially independent. Being a homeowner will provide you with more to bank upon than you realize. A business loan by keeping your home as a warranty is just right way to get started. Getting a secured business loan is a guaranteed success, if you take care to do your homework. For Acquiring secured business loans a lot depends on loan claimant. You have to be very clear about how much money you need, why you need it and you must have a repayment plan. You should be able to convince your loan lender that you are very clear about your business and financial needs. This will go in your favour in assuring loan lender that you are a good credit risk. There is no doubt that there is a huge market for secured business loans but there are no takers for secured business loans applications whose amortization is not secure. Whether you are buying a business, paying off previous debts, looking for a cheaper rate of interest, expanding your business or starting a new business, business secured loans are ideal for your plans. A secured business loan is secured over your property. If you own a property in UK then why not make use of this dormant property in your own home. Secured business loans are straightforward, undemanding and fairly simple. The loan amount can range from anywhere between £ 50,000 and £ 1,000,000. You can choose to repay in any term that befits your financial terms. Repayment time period can be from 3 years to 25 years. However, as a homeowner you must be aware that non payment of your secured business loans will lead to annexation of your consequential property or home. Are you getting started on applying for secured business loans? Then pay a little more attention. A well written secured business loans application must include some occasional imperative information. The secured business loans application must have business name, name of principals, social security number for each principal and address. Make sure that secured business loans application includes objective of taking business loan. The loan applicant must know how he will utilize business loan. The amount required must be precise. Give an account of your business on your secured business loans request. This includes history and nature of your business, its age number of employees and also existing business possessions. Work with relevant agencies to present a complete picture of your business. Your secured business loans application won’t be complete without some details of your principals in your business including their education, background, skills and accomplishments. For securing a secured business loan, you must give financial statements for past three years. If you are launching a new business, then give projected balance sheets and income proofs.
| | See What Your Home is WorthWritten by Aditya Thakur
If you thought your home is worth nothing except for living purposes, then think again. It might be holding a treasure, still waiting to be explored. Wait before you deface it with a spade. What we mean is equity that your home has kept on amassing all through years. Home equity is actual worth of home in market. The equity in home normally ascends. It is primarily because of efforts put in by homeowner. The owner keeps on making new improvements to his home according to his requirements. He may add new storeys to his house, or may change flooring. These may, besides adding to value of house aesthetically, attract more tenants. There may also be a rise in home equity because of no efforts by homeowner. Real estate has become one of safest options to place ones bet on. This has given a boost to property prices, with prices jumping by 125% in some posh locations. Some localized circumstances like improvement in road infrastructure, launch of a shopping mall, etc. too can be behind this increase in home equity. Home equity will be of immense help to people who do not prefer to sell their home, but need resources to meet over some contingency. Resources are needed largely for spending on home improvements. However, loan amount can be used for other purposes too without any limitations. Homeowners are allowed to take loans against their home. These loans are called home equity loans because they take advantage of equity. Having a solid collateral base of home, lenders feel less exposed to risk. Lenders charge a lower APR on home equity loans. The home equity loans are thus cheaper than other loans. The equity is reduced by amount of loan taken against home. As balance on loan reduces with monthly repayments, equity in home increases. Except for reverse mortgages, all other loans and mortgages follow this principle.
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