type of loan

Hard Cash Loans and No Credit Check Loans

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Sometimes, when you are in need of money, but cannot afford to wait for your next several paychecks, you start thinking about getting a loan. If you play it smart, a loan can be very beneficial, especially when you are in a bad situation which requires you to pay a big lump sum as college debt, a debt to a friend or medical bills.

However, do not think that the only situation where you should consider is when you are in “trouble”. A lot of people consider getting one when they want to buy their own house or maybe a car and sometimes even business owners who want to buy their own office. This shows you just how helpful it can get when you need it.

Unfortunately, at the times when you need cash the most, you won’t get approved and you will have to resort to some kind of alternative. And that alternative is called hard cash and no credit check loans. So, how do they work?

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What is hard money and how does it work?

Most companies will require you to provide them with proof that you will be able to repay them in the future. The best way to find reliable proof is by checking your credit score and your recent profits and income to ensure whether you will be able to pay the money you have borrowed. So, if you have a good credit score which is obtained by paying all your debts on time or by having a history of paying loans on time then you will probably be approved for one.

But, if you do not have a high enough credit score, this is the moment when problems start appearing. A lender will consider your request, but they will go through a much longer process which is already a problem. What’s the point of waiting for weeks and weeks when you need the cash tomorrow? Not only will you have to wait a long time, but there is also the chance that you won’t get approved at all.

So, what’s so different about hard money lenders? Well, the main difference is that they simply do not care about your score, your income or whether you will be able to repay in the end. The amount they lend to you will be completely dependent on a thing called collateral. Collateral is basically the worth of some kind of physical property you are willing to offer the bank or lenders. Depending on the value of the collateral, they will provide you with a certain amount of cash. So, if you do not repay them in time then they will sell the collateral to get their money back.

Keep in mind, this type of borrowing does not last more than five or six years. Even if it did, you should repay them before that because the interest rate can be quite high the longer you keep it.

Why should you use it?

Now you understand what it is and how it works, but you are still unsure why you should use it, right? Well, here are some benefits of using hard money loans to help you decide.

  • Much faster approvals

We believe that the best benefit of this type of loan is the much faster approval. Lenders can provide you with an approval in just a few days, but only if you provide them with all the documents they require from you. Once they analyze whether the collateral you have offered has enough value, they will tell you the amount of money they are willing to lend to you. Once they finish the approval process, you can get paid in a day or two which is at least ten times faster than normal loans which can take several months.

  • Repaying on your terms

When you borrow cash from a private company, you will have a lot more freedom when it comes to repaying them back. You can customize the terms or the repayment plan, you won’t have to depend on a bank to plan how you need to pay back the money. You can easily come to a much more favorable agreement.

What are no credit check loans?

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We went through the process and benefits of borrowing from private companies that will provide you with hard money, but what does a no credit check loan mean? Check out https://slickcashloan.com/, if you want to know more about no credit check loans.

Well, to put it simply, they are provided by lenders who do not do any credit check on you and will lend you the money you require, but you will have to repay it in a couple of weeks, and in extreme situations in a month or two. These are usually considered by people who are planning to pay it back with their next paycheck.

Why should you consider using this alternative?

Here are some benefits of a no credit check loan.

  • They are fast

Just like borrowing hard cash, getting a no credit check lend is also incredibility fast and sometimes even faster. Unlike regular borrows, the process can take under 24 hours which is great for those who are looking to get fast cash. It is fast because the lenders have no need to do research on your credit card score, on your income to come to a conclusion whether they should approve your request or not.

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  • Anyone can apply

Another great benefit is that simply anyone can apply. Whether you are bringing in a hundred thousand dollars every year or if you are below ten thousand, they do not care and you can easily apply. All you will need to do is fulfill their online form or fill the form in person.

  • Higher chances of approval

You will not have to worry about wasting time looking for a lend since no credit check loans have a very high approval rate which means the chance of you getting a loan are very high.

 

 

Ready for a Home Loan? Make Sure You Understand These Fundamentals

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Buying a home is often advantageous financial move, compared to renting. You’ll have more flexibility to maintain your own dwelling, and as you make payments on your mortgage, you’ll gradually establish equity—meaning a portion of your money will be contributed to your financial stake in the home. However, too many new homeowners get a loan and purchase a house before they’re fully familiar with the homebuying process. Home loans are straightforward on the surface, but there are many variables and components you need to consider if you’re going to manage your loan successfully. 

Source:thebalance.com

What Is a Mortgage?

Let’s start with a high-level overview of what a mortgage is. A mortgage is a specific type of loan offered by a bank or lending institution to help you purchase a house. You’ll generally offer a “down payment” on your home, a percentage of the total sale price, as a way to limit the financial risk taken by the bank and as a way to establish equity in your home. This is variable, but the minimum in many areas is 5 percent, with many experts recommending as much as 20 percent. 

You’ll borrow the rest of the money to finance the home purchase, with your home serving as collateral. You’ll be required to pay this loan back in installments meant to pay down your principal (the amount you borrowed) and your accumulating interest payments. If you ever fail to make these payments, the bank may foreclose on your home, selling it to repay what you owe. If you decide to sell your house, you’ll use the proceeds to pay off the remaining principal; you’ll be able to keep whatever remains from the transaction. 

In many cases, your mortgage will also include an escrow account, meant to cover home-related expenses like your property taxes and home insurance. You’ll pay a small amount of these annual and semiannual expenses each month, along with your principal and interest payments, to make things simpler for both you and your bank. 

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Types of Home Loan Rates

One of the most important elements of your mortgage is the interest rate. The interest rate is the percentage of the principal you’ll owe as interest each year, and will vary depending on market conditions and your credit score. For example, if you borrow $100,000 to buy your home and you have a 4 percent interest rate, you’ll pay $4,000 in interest each year as you pay back the loan. 

However, according to Loans.com.au, there are different types of interest rates available to homebuyers. A fixed rate is an interest rate that’s guaranteed to remain the same for the duration of your loan; if it starts as 5 percent, it will remain 5 percent indefinitely. A variable interest rate is subject to changes; it may start at 5 percent and drop to 4 percent, or rise to 6 percent, depending on market conditions. It’s also possible to have a loan with a split interest rate, which will be fixed for a set period and variable for another set period. 

Generally, homebuyers are recommended to take the fixed rate when possible. A variable rate may be lower to start, but could increase over time. More importantly, it’s reliably consistent, so your payments won’t change much over time. 

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The Role of Credit

You also need to fully understand the role of credit as it pertains to your home loan availability. Your credit score is a number that reflects your financial reliability. The higher it is, the better your chances of securing a mortgage, and the more favorable that mortgage will be. If your credit score is “good” or “excellent,” you shouldn’t have an issue getting a mortgage, assuming you can afford it. If your credit score is “fair” or “poor,” you may have a more difficult time finding a lender. You may also be forced to take a higher interest rate, or pay for private mortgage insurance (PMI). 

Lenders will also look at factors like other assets you have; if you have a robust investment account, for example, it can make you look more reliable as a lender. They will also check your income and job history to make sure you have a reliable performance as an employee, and enough money to cover the cost of the mortgage. 

Other Factors

This guide covers the basics of how home mortgages work, and the most important elements to understand. However, mortgages are complex financial instruments, and you should do more research before moving forward with a home purchase. Your loan originator, the person responsible for helping you find and set up a loan with a bank, can help you with further questions. 

7 Highly Effective Tips to Grow Your Contractor Business

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Without freelance contractors, homes and offices would definitely fall apart. Since freelance contractors are an absolute necessity, they’re considered to be key contributors to our economy. If you’re planning to set up your own contractor business, you’ll need to learn how to build one that’s going to last. If you already own one, arm yourself with the right information about things like contractor financing, and more. Check out these helpful tips that can help you grow your contractor business given by SMB Compass:

1. Establish a system that uses the industry’s best practices

Contractors usually encounter problems when they try to improve their efficiency and grow their business. One of these problems includes agreeing on the industry’s best practices. Most contractor businesses are not so keen on changing the system they’ve already set in place. They don’t like to change it because it works and they’re familiar with it.  

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However, having a system that operates with the best industry practices is a must. You can use a system that can handle scheduling, bookkeeping, invoicing, task management, and training. Be sure that it can provide your employees with step-by-step instructions for specific tasks. Establishing an effective system allows you to maintain your level of success and prepare your business for future growth.

2. Conduct a comprehensive assessment or your internal organization

It’s extremely important to assess if your contracting business is financially stable or otherwise. You’ll also need to know if you’re getting repeat sales or customer referrals. Determine your employee turnover rate and try to find out how your customers rate your business. 

You can find the answers you need when you review your books, talk to your employees, and check out what your customers are saying about you online. Before you think about growing your contracting business, areas that need to be improved must be promptly addressed.

After you assess the internal state of things, create key performance indicators (KPIs) and an action-based plan. These points can help you assess employee morale, productivity, and overall company growth. If you want a long-term business, you need to create contract management goals and objectives(you can find more info on contractnow.com). You may opt to get a team on board to keep track of this, or simply get a management software. Remember that conducting a comprehensive assessment is not just to put out fires, but also to develop a sustainable system that improves overall operations.

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3. Be available to your customers

Be sure that you make yourself available to your prospective customers during normal business hours. This is absolutely necessary if you want to avoid losing your customers to your competitors. When you’re out of the office, it’s best to send business calls to your smartphone so that you can promptly address their questions or concerns. 

Also, clearly state your business hours and physical location on your website, social media channels, and business cards. During off-hours, set up social media messages and automated email with a message that informs your customer to expect a response within 24 hours. 

4. Join industry associations

When you join industry associations, you’ll have opportunities to foster good business relationships and cultivate important business skills. You’ll also get recommendations and insights that are relevant to your contractor business.

5. Up your marketing game

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Build a stronger digital presence by interacting with your target audience through your website, social media, email, and blog posts. Also, make sure that your address, phone number, and business hours are accurate, updated, and easily searchable online. 

It’s also important to network in your community offline. You can do this by advertising your business in the local newspaper and attending the Chamber of Commerce meetings.

6. Find someone to mentor you

You’ll need a more mature and experienced person to stimulate your personal and professional growth. This trusted advisor can offer you guidance as you attempt to solve certain problems. A mentor can also connect you to people who are willing to invest in your company, to a talent that can help fuel your business, and to your target audience. This mentor could be a retired contractor, a family member, or somebody that you need to hire.

7. Keep an eye on your finances

Aside from paying attention to your overhead expenses, you’ll need to consider any additional costs before you decide to accept a job. It’s also important to factor in the costs that are involved in a certain project before you give your customer a ballpark estimate when you send out bids. 

Creating a budget is also a must when it comes to handling your overhead. By doing so, you’ll be able to monitor the money that’s coming in and going out. When the money that’s going out exceeds the amount that’s coming in, you’ll need to decide if you should raise your rates or cut your expenses. 

Source:bankrate.com

8. Attract funding

If you don’t have enough financial pull that could support your business’ expansion, you’ll need to look into contractor financing options. Make sure that you keep your financial records detailed and organized. Research on the best type of loan based on your current business needs.