Category: Loan

Mistakes To Prevent When Getting A Bridging Loan In Manchester

linking loansIn buying new properties, individuals eye bridging loans as their first option. This is especially applicable if they don’t have the required cash yet. Most of the home buyers choose to avail this type of loan because of the fast processing time compared with other loans that need longer waiting time. The best thing about bridging finance is that you can also use it for business purposes.

Bridging Loan for Business

A business can take full advantage of a bridging loan to ensure smooth-sailing business operations for a definite period. A specific business can avail this type of loan depending on the overall value of the business’ office and premises. The sum that will be loaned can be used to tide the company over a specific time. Acquiring the appropriate bridging loan for your business lets, you enjoy the benefits and advantages.

For instance, it can cost more compared with other loans if you commit these common mistakes in applying for fast bridging loans.

Unable to Clarify the Details of the Interest Rates

One of the most significant deciding factors, whether you’ll pursue a loan or not, is the interest rate. It can also determine how expensive and costly a loan can be. To avoid having a problem, don’t sign up for a loan that incurs a higher interest rate. It will surely be a burden that is hard to handle.

It’s best if you will canvas first for the best terms and most affordable loan for your business. You might think that you know how to calculate your interest rates, but most often you don’t. Before signing a contract, make sure that you can compute and double check for the interest that it’ll incur over the months or years of loan payment. Remember, the interest rate varies, and it could depend on how an individual or business handle their finances. The interest rate can be compounded over time if payments are delayed. If you came across a bridging finance provider, talk with their professional bridging loan broker to know the available options for you.

Unaware of Hidden Charges

When dealing with bridge financing, you need to consider the origination fees. Most lenders charge borrowers with charge origination fees which are deductible to the original loan amount. The cost can have a significant impact on the interest rate you are paying, depending on the amount of money borrowed. The concept is similar to ATM fees that seem like a very minimal amount but can cost you big over the long run.

When borrowing bridging loan fast processing and releasing, be aware of all the accompanying fees along with the capital infusion. These fees can include the application fees, contract fees, processing fees, and other kinds of fees set by the lender. Carefully consider your options to avoid unsettled and delayed payments.

Opportunity Cost as Real Cost

Most banks take up to half a month to review a loan application either by an individual or commercial. After approval, there is still a waiting time for the actual release of the fund for the loan.

Treat time as money. Look for reputable lenders who can move and process your application at the speed of today’s business. Choose a lender who can streamline the application process so you can spend your time on other important things.

Intangible Costs for Short Term Loan

In bridging loans, your loan amount and payment terms matter. Some companies that are in need of working capital are availing smaller amounts and paying it within a short period.

In this kind of situation, the interest rate is not that significant since the amount borrowed is small and paid back quickly, such sort of financing would not provide the substantial amortization costs that are accrued on loans accrued in the more extended payment period.

You Are Not Aware That You are Financing

Most financing errors happen without you realizing it. You should know that the situation wherein you are financing, so you will not be caught off guard of all the incurring fees during the repayment due date. Being aware will also help in preventing misconceptions and misunderstandings regarding your loan terms. Or better yet, talk to the best bridging loan broker who can enlighten you regarding all the technicalities of bridging finance.

Financing is essential not only to individuals but companies as well. To get the best out of it, one should understand the factors and considerations before pursuing a loan. Avoid making mistakes when dealing with finances to ensure that you’ll get the value you deserve for your loan needs. Are you decided to file bridging finance? Check out a bridging loan in Manchester and explore the options made available to you.

Real Estate Investments in Australia – Private Equity in Commercial Property

property investmentsA portfolio solely consisting of shares, bonds and stock has the probability of generating low returns at higher risks. Commercial properties, however, have a potential to offer long-term returns as the market is more stable. Additionally, it diversifies your investment portfolio and opens up future possibilities of growth.

From a more professional aspect, commercial properties in Australia offer a better investment perspective. The cost of the building with minor customization work is initially higher but covers up the expenses through increasing returns. This is why you can observe an upward trend of people investing in commercial properties.

There are several ways one can invest in a commercial property including investing through Real Estate Investment Funds (REIT), which invests in public properties; or through private acquisition. Out of these options, private acquisition either through property syndicates or property trusts has seen prevalence in Australia. Choosing either one of the two is a matter of personal choice of the investor as both have different impacts on a portfolio.

But in the past few years, we have observed a huge growth in private equity as it gives investors more control. Besides that, people have realized that due to a growing need for commercial properties for rent, they have become a more viable investment option than residential properties. The points mentioned below are a few reasons why investors have been compelled to invest in commercial properties through private acquisitions:

High Returns

As mentioned previously, private acquisition in commercial properties yields higher returns on investment across the majority Australian cities. Since private investment gives investors the opportunity to do with their businesses as they please, most rent it out. This rent generates a higher returns than residential properties, making private acquisition of commercial properties a sound investment opportunity.

Portfolio Diversification

Putting all your money in just one industry or company might not be the most intelligent move, as it increases the risk of low returns. This means that if the industry or company fails, the stocks will lose their value and increase the chances of diminishing returns. Creating diversification in your portfolio by investing in commercial properties balances that risk. And since private equity eliminates the risk of a fluctuating stock market, it becomes an attractive alternative.

Low Risk

Private acquisitions, unlike publically traded REITs, are significantly correlated to the stock market. This means that if various economic factors change and fluctuate, it impacts the risks too. REITs have proven to be a volatile market with fluctuating return rates and indexes. Having private equity in a commercial property doesn’t involve this risk and increases the chances of high returns.

Active Ownership

While investing in public commercial properties might give you the chance to earn in returns, it limits how much active ownership you have in the business. On the other hand, private acquisition in commercial properties made through Stamford Capital Property Investment will give you the opportunity to hold a controlling stake in the business. You can do with the property as you wish to increase its value and maximize the returns.

From this, we learned that private acquisition in commercial properties have seen a prevalence in Australia as it gives investors a chance to add value to businesses and build a more sustainable portfolio.

Why you should Fintechs instead of Private Banks for your credit requirements

banking servicePrivate Banks have always been the leaders as far as offering credit products are concerned. This has however, changed in recent times, thanks to the emergence of Fintech companies. Popular surveys have indicated that Fintechs command a larger market share in the lending space, and this has occurred due to a lot of reasons. While we look at these reasons, we’ll go on to determine why Fintechs are a better option than traditional lenders for instant personal loans.

Turnaround time for loans from Fintechs vs turnaround times of banks

The equation is quite simple and straightforward actually. While traditional lenders take at least 7-8 business days to complete the processing and subsequent disbursal of your loan amount, Fintech companies boast ridiculously low turnaround times of 24-48 hours.

Eligibility Parameters – Fintechs vs Traditional Lenders

Traditional lenders generally have stringent eligibility parameters as far as the credit score, income and other parameters are concerned. For starters, applicants need to have a minimum credit score of 750 to qualify for a personal loan with a traditional lender. However, most Fintechs allow individuals with low credit scores to apply for loan, with the more popular ones such as Fintechs requiring scores of as low as 575 to become eligible. As far as the income parameter is concerned, top private banks require applicants to have minimum monthly income levels of at least Rs. 30,000 to qualify, while on the other hand, Fintechs allow for income levels starting at Rs. 20,000 per month.

Processing of application – Fintechs vs Traditional lenders

Fintechs are literally the reason why instant personal loans have evolved. Unlike traditional banks that haven’t shifted completely to paperless and digital processing, Fintechs have made the transition to a digital and paperless application, thereby saving a lot of time and resources. Moreover, applicants can get instant approval when the apply for a loan based on their credit assessment – which is performed by a credit assessment algorithm – allowing them to choose a different lender if they face rejection.

How To Qualify for a Personal Loan in Singapore

personal loan needsPersonal loans are beneficial, especially when you encounter an emergency. You do not have to worry about where to get enough funds to support your needs because there are several licensed money lenders in Singapore you can approach. However, qualifying for the loan may be challenging if you do not have the requirements.

Approach A Licensed Money Lender

Your qualification requirements for your loan may vary depending, on the type of lender you approach. Look around for various moneylender in Singapore and check out their requirements. From the very beginning, you can already determine whether you think you qualify for the loan. Here are some common personal conditions you should prepare for:

  • A government issued ID such as your passport or driver’s license;
  • Recent pay slip;
  • Latest Income Tax Return;
  • Utility Bills; and
  • Credit Card Statements

These documents are pretty accessible for anyone who wants to apply for the loan, primarily when you are employed. Moreover, the records are essential for any moneylender in determining your identity and ability to pay.

Prepare Your Financial Statements and Credit Card Scores

Some personal loans do not require you to give collateral, which should make borrowing money more accessible for anyone. But if there is one thing everyone should be prepared for instead, it is their financial and credit score ratings. These ratings are determinative in your ability to pay and serves as an indicator and basis for your lender’s.

As much as possible, you want to show your lenders that you have a good credit card score and your financial statements are looking great. Even if you are not planning on applying for a personal loan shortly, it still pays to be responsible and have proper credit. You can do this through the following examples:

  • Never delay your credit card payment;
  • Manage your expenses wisely;
  • Do not borrow too much money from a moneylender in Singapore.

Deal with Your Existing Debts First

If you have any existing debt or even a long-standing debt, you want to make sure you settle those first. It is vital that you do this, or else it will appear like you have a bad credit score which leaves a significant dent in your capacity to apply for a loan. Regardless of whether you got your previous loan from a licensed money lender in Singapore, you want to make sure you start with a clean slate with your moneylender.

This step is crucial, especially if you have a bad credit score. There are many ways for you to deal with your existing debts, and here are some easy techniques which you can observe:

  • Pay-off any current or long-standing deficit, by creating a strict payment schedule.
  • Check with your moneylender if they can reduce the interest rate you have to pay;
  • Negotiate whether they can extend the payment schedule so it would not be hard for you.

Make an Estimate of the Amount You Need to Loan

If you are lucky enough, you might be able to secure a big personal loan from your moneylender. But you want to make sure that you try applying for an amount which you need, because you may have to pay off the loan if you overestimate the amount. Before you contract the credit, identify the amount that you need and set a minimum and maximum limit.

One of the things you need to keep in mind when making a list is also your ability to pay. It isn’t just the responsibility of various money lender in Singapore to check your requirements because you also have to be aware of it.

  • Determine whether you can pay the amount you set;
  • Identify the necessity of contracting the loan;

Personal loans are easy to get, especially if you have all the requirements. But you should also remember that you also have the responsibility to check whether you think you qualify for the loan. As much as possible, you want to make sure you keep all your financial scores are excellent so you can increase the likelihood of your credit being approved.

Making Passive Income From Running a Blog

earning from blogsA blog is a collection of written entries that are posted on a website. There are a variety of ways to keep a blog. Some use the medium like a personal diary to talk about their daily activities while others present information like a newspaper. The point of blogging is creating content for visitors to read.

Typically, blogging is a hobby, but it can also be used to make money.

Making Income from Blogging

The amount of money an individual can make from blogging varies widely. Many barely make enough money to cover the basic expenses of running the website, while others make $1 million or more. While there are no guarantees, there are numerous benefits to having a passive income stream.

The main factor to success is the amount of traffic coming into the website. If a person makes one to 10 cents per page view, it can add up to an extra $500 to $5,000 every 30 days. Results from a survey conducted by the Problogger site indicated that 10 percent of those with income blogs made no money at all, 53 percent made less than $100 monthly, 13 percent brought in $1,000, and four percent made five figures or more. This adds up to serious money.

Income Sources

Individuals can make a passive income directly by blogging and also by taking advantage of opportunities that come their way through the website. The following describes several approaches to setting up a steady money stream.

• Advertising. This is the most common method of making money from blogging. Display ads are used in the sidebar or as a banner at the top of the page to quickly catch the eyes of visitors. They can also be placed in emails and newsletters. Direct ads are paid for by companies that are seeking prominent placement on busy websites. Contextual ads are provided by a management company such as Adsense or Mediavine and are based on a cost-per-impression or a cost-per-click model.

• Brand partnerships. Bloggers with a large following are considered to be influencers, which companies and brands can associate with to their benefit. This association consists of mentions and referrals in blog posts along with clothing, gadgets and other promotional items.

• Sponsored posts. Also known as content marketing, this is a method of creating and sharing blog posts, videos and social media messages in order to improve a company’s influence and Google ranking. The businesses will often pay well to have their content posted on influential blogs. This can range from $50 to several thousand dollars.

• Affiliate marketing. This marketing approach involves the blogger recommending certain services and products on their site in exchange for a commission. Companies and brands know that popular bloggers have a loyal audience that trusts what they say and will check out products based on that alone. This costs the readers nothing and can be very lucrative for the business and the blogger.

• Selling products. One of the most straightforward ways to making money from a blog is through the sale of products. This can be for physical items such as clothing, books and jewelry or digital items like courses, premium content and memberships.

• Selling services. Being a blogger increases a person’s visibility and helps them to become an expert in their field or interest. This can lead to offering paid services like making speeches, being a coach or performing another skilled service. Being good at something will also encourage other people to make an investment in the blogger and the services being offered.

How to Start a Blog

Those with little to no experience running a blog should start with a hosted service like Blogger. Aside from being free, it also features beautiful templates and the ability to connect a custom domain. Setting up a self-hosted WordPress site is also an option. This requires buying hosting and a domain name, both of which are low cost to start out.

Making a Blog Successful

This is the hard part. A person cannot just put up random content on a blog and expect to be an overnight sensation, bringing in large amounts of money. It takes time and dedication to build readership, gain trust and to fully understand how to run a blog like a business. The following tips will help:

• Find a niche. Focusing on a specific passion will bring in the right audience and make it easier to target advertising later on. It is best to choose something that already has a strong interest to avoid getting lost in the crowd.

• Be consistent. Posting fresh content on a consistent basis will keep the readership and show that the blogger is dedicated to what they are doing. In addition, keeping content up to date improves the Google ranking for the blog.

• Promote content. A blogger can be the most amazing and interesting writer in the world, but it is a wasted effort if no one knows about the site. Networking with other bloggers and using social media to promote posts will quickly get the word out.

Is Blogging Worth the Effort?

The majority of blogs die before they are one year old. This happens mainly because the person did not want to put in the effort to build up readership and work toward passive income. Having a successful blog that makes money is hard work in the beginning that pays off well later on. It also depends on what the person is looking to get out of the experience. Whether it is to supplement an existing income or act as a standalone business, having a plan before starting out will help the blogger push past early discouragement and understand that it is all part of a process.

Another consideration is the relationships, both personal and professional, that are built through blogging. Someone with a family will gain the flexibility to spend more time with their spouse and children. These factors do not have a monetary value.

In today’s digital economy, a passive-income blog fits right in to most lifestyles and can provide a better quality of life for both the blogger and everyone around them.

Kelsey is the editor at LuxAuthority and is trying to balance both her budget and her credit card balance. She likes to live lavish and treat herself when the opportunity allows it. She loves the newest tech, old cars and the smell of rich mahogany and leather bound books as well!