The post How to Get a Business Loan in 6 steps appeared first on articleocity.
]]>There are different types of small business loans available. It depends on the borrower’s needs and the specific terms of the loan on deciding which loan to apply for. Following are some of the business loans along with their features:
This grants loans to qualified small businesses. It is known as the Paycheck Protection Program. It was started on 11th January 2021. The critical elements of this loan are:
The PPP loans can be used for expenses, such as Payroll costs, Utility expenses, paying rent, etc.
The SBA offers a disaster loan for those businesses that have suffered from a declared disaster, such as the COVID-19 pandemic. The Covid-19 Economic Injury Disaster Loan (EIDL) has proved to be very helpful for the affected businesses. SBA loans are available to any business located in any state of the USA. This loan can be used for working capital or ordinary operating expenses etc. The rate of Interest for SBA loans is generally 3.75%.
Under a small business line of credit, a business owner can access funds from a lender as needed. There is a cap on the number of funds accessible. But a line of credit is necessary to manage the cash flow of the company and unexpected expenses. There is a specific fee for setting up a line of credit. But the borrower doesn’t get charged till he draws down the funds.
While visiting or meeting a lender, the lender would ask why you require a business loan. The answer to the question can fall between two categories.
Lenders need cash flow to support the repayment of their loans. So companies or businesses cannot get business loans in the first year of starting the business or the company. Relying on personal loans or credit cards can be a good option while starting a business.
Considering a government-backed SBA loan or traditional term loan can be a good option for this need because it offers higher borrowing limits for the borrower. An SBA loan can reach up to $5.5 million. Many lenders are also seen to be offering specific financial products.
Answer the following questions to see if you meet the eligibility requirements for a small-business loan: What is your credit rating?
Each of the three major credit bureaus, Equifax, Experian, and TransUnion, will provide you with your credit report for free. Several credit card companies and personal finance websites, including NerdWallet, will also provide you with your credit score.
Lenders also review the assets in the business, such as cash and accounts receivable, to make sure that there is a good base of support for loan repayment.
To make sure that the proposed business loan makes sense for the business, proper analysis of the features is very important. Following are some of the key terms to review:
Before Applying for a Business Loan, the borrower must arrange the required documents for applying for the loan. Depending on the type of lender, you are required to submit a combination of the following documents:
The last step after determining after arranging the required documents is to search if there are any other available lender options similar to the one chosen with better facility and terms and conditions such as lower ROI, etc. After selecting the right kind of financial lender, the borrower can now proceed to the lender with the necessary documents and finally apply for the business loan.
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]]>The post How to Invest your money Safely and earn easy Returns appeared first on articleocity.
]]>Appreciation refers to an increase in the value of that asset over time. When an individual purchases something as an investment, the intent is not to consume the commodity but rather to use it in the future to generate wealth.
However, it is a fact that investments that yield high returns with low risk do not exist, completely a myth. In reality, the risk is directly proportional to returns,e the more risk you take, the higher will be the returns and vice versa. Therefore, while choosing the avenue you want to invest in, you have to match your risk profile with the risks associated with the product. Some investments carry high risk but have the potential to generate higher inflation-adjusted returns than other assets. They are:
Investment in real estate is still the most formidable alternative available to investors. With rising bank scams and unstable stock market prices, real estate is the favorite sector of investors with guaranteed returns and high growth potential. It provides you with both short and long-term benefits. Buying a property is a permanent investment for your retirement and also for your future generations. It is an immovable asset that cannot be lost, stolen, or damaged.
The best thing about gold is that it is a physical asset with zero counterparty risk, unlike stocks and bonds that require a company or government to pay you. This is exactly why gold was used as a currency before paper money was invented.
Gold tends to hold its value over time, another way of saying it’s a hedge against inflation. The price goes up because the dollar’s value is slowly going down, and that has a theory behind it. While gold has retained its purchasing power over the last 100 years, the dollar has not fared as well.
Organizations need capital for their daily operations as well as future expansions and growth. When you purchase a bond, the company is borrowing capital from you. The firm will reimburse your principal deposit on the maturity period as mentioned in the agreement, and until then, you will receive interest on the amount. Corporate bonds are an excellent choice for investors looking for a fixed but higher income from a safer option; it is a safer vehicle when compared to debt funds as it ensures capital protection. This can be an added benefit if you remain invested for up to three years and also, it can also prove to be more tax-efficient if you fall in the highest income tax slab.
A government or savings bond is a bond issued by a national government usually denominated in the country’s currency. Savings Bonds are one of the most preferred investment options for people looking for a fixed income. These bonds are convenient to invest in and offer good interest rates for the amount invested.
The minimum investment for Savings Bond is RS 1000, which can be gradually increased in multiples of 1000. There is no maximum limit of investment. Investors can invest any amount in the Savings Bonds without any issues.
High-yield savings accounts are types of accounts that can be found at both online and brick-and-mortar institutions. Typically, these financial tools pay a higher interest rate than traditional savings accounts and almost always offer better returns than checking accounts.
The interest rates on high yield savings accounts can be 20-25 times higher than what traditional savings accounts offer to investors. Electronic transfers are easy to set up between a high-yield savings account and your checking account, even if you hold them at distinct banks.
As you consider various high yield savings account options, weigh factors such as initial deposit requirements, interest rates, minimum balance requirements, and any possible account fees. Just be sure to think through how one or more high-yield accounts can best serve your situation and your financial goals!
Most investors want their money to double or make immensely high returns within a short time, not realizing the risks involved. Most importantly, if we do not have a calculated risk implemented, it is very difficult to beat inflation, let alone building wealth. With financial expertise where your objectives, appetite for risk, and savings are channelized, choosing the right mix of investments is always advised for Invest Your Money.
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]]>The post How to rebuild your Credit after Bankruptcy? appeared first on articleocity.
]]>If you are in the middle of something regarding your Bankruptcy, then you have come to the right place. If you are coming out of Bankruptcy, we all know that it is pretty challenging to figure out the ways. But now you don’t have to worry anymore. Several methods will allow you to avail yourself of better credit scores even after Bankruptcy.
There is no hidden fact that everything has its ways to rebuild and create again. If you are willing to know how you can build your credit again, then make sure to follow the following steps. Mainly it depends on a lot, including your financial situation, your current credit score, and your goals as well. But there are several other steps that you need to consider to see effective results.
Make sure to follow some general steps before proceeding with the actual steps to rebuild the credit and shape your financial issues. It is crucial to ensure that everything is accurate.
It is crucial to take proper insight or a history report of your credit and its score. Monitoring will help you to know what and how much you need to rebuild your credit. It is highly recommended to monitor the credit more closely to avail the better finances again. Though it is somehow critical to monitor the credit after the Bankruptcy, you can also start tracking the progress insight to see how your effort is going on and how positive the effect is showing on your credit. This will also help to notice any incorrect information or things that require immediate changes. Now you don’t have to score low just because of random errors.
It is crucial to consider a secure credit card. Most people think that it can take more time to get a credit card after Bankruptcy. If you have more similar negative thoughts, you need to seek information as much as possible to proceed early and succeed early. If you have a poor credit score, you can use strategies to make it a good score. If you are still worried about your credit card, you can take help from the attorney before applying for the card. Make sure to know all the limitations and eligibility to ensure to get a secured credit card.
Mainly the secured credit card requires a deposit to ensure the security of the original lime of the credit. Make sure to deposit to access the security system tightly. If we talk about the deposit amount, it is typically the amount of the deposit minus any fees.
You need to make a small purchase and pay the account on time if every month to use the secured credit card.
If you have faced Bankruptcy or other issues related to your credit card, then make sure not to repeat the same past mistakes. Make sure to know every detailed information before applying for the new credit card. Make sure to seek every information to avoid the repetition of the mistakes again. Most people think that filing for Bankruptcy is equal to a clean financial state, but that is not the actual case. You need to learn from your mistakes. Make sure to take an honest look at your spending habits and your budgets as well. Make sure to exercise more to have proper self-control.
Mainly the filing for Bankruptcy comes with the serious credit score sting, and while Bankruptcy is the last resort Financial move which mainly comes with a potential light at the end of the tunnel. Make sure to focus on keeping the current accounts and make sure to not take any more debt which you can’t afford. Avoid taking debt till you have good credit again.
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]]>The post 6 important Personal Loan Requirements to know Before Applying appeared first on articleocity.
]]>Personal loans vary based on various lenders. Having proper knowledge about the criteria and other requirements can help an individual streamline their application process and may improve the chances of getting the loan granted in their name. But, there are a few considerations that every financial organization looks for before lending a personal loan to someone.
Following are some of the common aspects or requirements that a financial institution emphasizes before providing a personal loan to a customer:
A credit score or the CIBIL score of a customer represents their creditworthiness based on the history of credit repayment. It’s a three-digit number. A credit score of a customer generally ranges from 300 to 850. The credit bureau organization gives the score based on their payment history of previously taken loans, amount of personal debt, and the length of credit history of the individual.
Many financial institutions require a customer to have a minimum credit score of 700 to qualify for the criteria for getting a loan. A lower credit score of an individual refers to lousy debt management by an individual. A lower credit score may also lead to charging a higher Rate of Interest(ROI) from the customer by the lender. At the same time, some money-lender financial institutions may offer personal loans without looking at the customer’s credit history or credit score.
Lenders impose income requirements to ensure that the loan borrower has the means to repay the loan they would have applied for. Since collateral doesn’t back personal loans, a person needs to look at their financial repayment capacity before applying for a loan.
Minimum income requirements vary for different financial institutions. The income requirements also vary based on the borrower’s location. The financial institution that lends a loan may ask for evidence of their income. The evidence may include salary slips of the company or organization the borrower is working currently, bank statement of their salary account, income tax return filing statement, etc.
The debt-to-income ratio of an individual refers to all the monthly debt payments divided by the gross monthly income of that person. It is one of the ways lenders use to measure the ability of a borrower to manage their monthly payments in order to repay the money that would be borrowed as a loan.
Lenders use the Debt-To-Income ratio to predict the ability of the prospective borrower to make payments on the current and the new debt.
Liabilities are an essential aspect of a personal loan. The current liabilities can create problems in getting approval for a personal loan from the credit manager of the financial institution. If the borrower already has enormous credit card bills or home or any other loan EMI’s or any other debts pending, it may create problems for the borrower to get the loan approved. The borrower may already have enough EMIs to be paid every month, which may not leave enough money to pay for any other loan in the future.
The company or the organization an individual is working for can be another deciding factor for the lender when approving the loan. Certain Financial Institutions have listing categories for private limited companies and government institutions. It may also range from Category A to category E, based on which the lender decides the ROI to be fixed for the loan, etc.
For example, suppose the prospective borrower currently ranks as category A for that financial institution. In that case, the borrower may expect to get the approval of the loan quickly with a minimum ROI.
You purposely need a loan to achieve objectives such as buying a car and financing a wedding, right? You can calculate the exact amount you need to borrow based on the costs and expenses associated with your needs. If the amount you require is uncertain, A Flexi personal loan is a good option.
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]]>The post How to Protect yourself from the “Dirty Dozen” tax scams? appeared first on articleocity.
]]>These tax scams made the Dirty dozen with the filing season, which includes several things like identity theft and others.
If we talk about the internal revenue service, which was announced on July 16th in the year of 2020 and its annual ‘Dirty dozen list of tax scams, the year 2020 mainly focused on scams that mainly target the taxpayers. Dirty dozen also focused on emphasizing the aggressive and evolved schemes related to the coronavirus tax relief, which also includes Economic impact payments, which are also called any tax stimulus payments. We all know that it is crucial to pay all the taxes.
Several lists will allow you to be more aware of the scam and taxpayer system.
If you want to protect your money, then make sure to avoid phishing. Several people want to scam you in the name of taxpayers and provide different types of soft phishing like link phishing, voice phishing, message phishing, and many others. Every taxpayer must be alert to the potential fake emails or texts or even website links that are willing to steal your personal information. Do not open the phishing link or give your numbers, OTP, emails, or passwords.
No company or tax system asks to give the emails I’d or password. If someone texts you or mail you to open links, make sure to avoid opening the link. Always avoid giving any personal information.
The IRS will never initiate contact with the taxpayers with the help of email about the taxes, refund, or another economic impact. Don does not click on links that claim to be from the IRS.
Most scam artists frequently exploit natural disasters and other conditions like the current coronavirus outbreak by setting up fake charities. Several people ask for charities in the name of poor people. Make are to cross-check the charity before giving any amount. Ill-minded people have the intention to steal your money in trying to help in times of need. There are several fraud schemes. Taxpayers need to be wary of the charities in their name, like national organizations. If the charity is legitimate, it will offer their employer identification number as requested, and it can be used to verify their legitimacy.
IRS impersonation scams come in several firms. There is an artist who scams taxpayers by making threat calls. Threatening phone calls are the most common way to steal your money, and it is the form of a criminal claiming to be the IRS. The scammer mainly attempts to instill fear in people to get their money.
It is crucial to know that the IRS team will never make a kind of threat call. They will never threaten taxpayers or surprise him or her With the demand for immediate payment. Most of the fake calls are in the form of robocalls.
Several people are willing to steal your money. It is essential to be aware of everything that relates to the tax. Mainly the tax scams are only rising during the tax season or even during the pandemic: May, the artists who scam people in the name of tax. Mainly the scammers are using the pandemic as their opportunity to steal now you and in for action from the honest and unaware taxpayers. According to IRS commissioner Chunk Rettig, it was found that scam artists know how to scam people. To overcome these scam issues, they have implemented the Dirty Dozen list to help create more awareness about the common scams so that people can avoid and save their money.
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