Money, Manpower and Materials- these three are the pre requisite criteria for a business. As fuel is necessary to drive a car, same these 3M’s play the leading role for sustaining a business. And, because of that, business loans have become quite popular in lending market. At the same time, it is also true that among the numerous applications, only few are benefited to avail business loans. In that case, the presence of a security can give you extra privilege to avail a business loan. Even more, if you have bad debt, then the existence of security will ensure you to get a business loan without any hassle.
A business loan can be secured when it is offered against a security. As security covers the risk of lending money, thus generally lenders do not take time to provide these loans. One can use both his personal and business property as security. Bad debt secured business loans are offered with a package ranged from £50,000 to £1,000,000. And the repayment period varies in accordance with loan amount. Generally the repayment period is decided anything between 3 to 25 years.
Bad Debt Secured Loan, a customized facility for bad debtors that helps them to fund their business. Here bad debt borrowers mean those credit score is 580 or below it. They could be CCJ’s, IVA’s, defaults, arrears, bankruptcy etc. Since, the existence of security covers the risk of lending money, thus lenders do not hesitate to provide bad debt secured business loans. But obviously, due to bad debt, bad debt secured business loans are available at higher interest rate.
A bad debt borrower can obtain secured business loans either with flexible repayment option or with fixed rate option. Fixed rate loan option indicates that a borrower has to pay a fixed monthly installment every month. On the other hand, with flexible loan option borrowers can pay off the loan amount according to their convenience. In such cases, borrowers can get the facility like overpayment, underpayment, payment holiday etc.
Here, the borrower needs to know that he will have to fill up some documents while applying for a secured business loan. These are like:
• A vivid profile of his business where the nature of his business, annual sales, duration of the business will be described.
• If it is new business, then it is required to present the business plan and how the business would be capable enough to repay the loan amount.
• A loan request also will be attached along with the loan application that will specify what kind of secured business loan is required, the amount and obviously the purpose.
• Submission of other financial statements like tax returns, balance sheet, profit and loss statement is also mandatory.
Bad debt secured business loans work well to gear up a business perfectly. If you are a bad debtor then stop repenting for that and start funding your business with bad debt secured business loans.
Secured Business Loans Are For All… Including Bad Debtors…
Secured Loans For New Businesses
In today's fast paced and ever changing society, we can no longer be sure of having a job for life. If you lose your job over the age of forty, you are less likely to find further employment as soon as you might want and you don't have the money to start up that business you've always dreamed of owning.
Large numbers of homeowners in this situation will take out a secured loan, using their home as collateral, or insurance against non-payment of the debt. Essentially, this means that until you pay off the loan, the bank, or whoever the lender is, owns your house. If you go for a secured loan, you are more likely to get the money than if you simply approach a prospective lender with a business plan, no matter how good it might be.
If you decide that setting up a business with the help of a secured loan is the route for you, make sure that you arm yourself with as much information as possible before you settle on a loan and sign on the dotted line. This may seem tedious but this is the roof over your head that you are using, so it makes sense to try to do your best to safeguard it.
Check out different banks and loan companies. Perhaps you might even try one or two of the online lenders to see what they have to offer. Pay careful attention to the following:
- Loan repayment terms
- APR or annual percentage rates – this affects how much interest you pay the lender.
- Credit agreement. Read the small print and consider having it looked over by a legal professional before you sign.
Never, ever take the first loan that you are offered until you have done your research and made some comparisons of terms and repayment and APR rates. When you are dealing with large amounts of money, it is always a good idea to be in possession of as much information as possible, that way you make an informed decision.
More people are taking out secured loans with online lenders because they often have lower rates of interest because their operating costs are less. They may also be able to do a comparison for you and give you a best case scenario for your particular needs. This does take some of the strain out of the process and gives you the opportunity to use that time to concentrate on how you are going to run your business.
Why Should We Take Secured Business Loans
Secured business loans are loans which are offered to people who are a little short on money to either start their business or to increase the size or the capacity in which the business is operating in.
A secured business loan is a good option for people who have decided to go ahead with meeting their business needs. The first thing that a borrower must consider before going in for a secured business loan is that he should have a security ready with him. It is a prime clause for taking a secured business loan. A security can be any worthwhile asset that a borrower may possess it can be his home, his car or the business premises in which the main business operations of the business take place.
It is easy to understand why the experts always seem to advice going in for secured business loans as suppose to the other forms of business loans, with the range of benefits it is not difficult to fathom. A businessman can avail the following benefits by going in for secured business loans.
• Secured business loans come at an interest rate which is lower than what may be offered when an unsecured business loan is taken.
• With the secured business loans the borrower can choose his terms i.e. the monthly installments and the period of repayment which help in the long term use of the loan.
• With secured business loans we can choose between the whole range of amount available for the loan which can help in using of the loan better.
The only disappointing thing about the secured loans is that not everyone can afford them and can avail these loans as not everyone is capable of providing a security. However, those who can take full benefits of the loan if they utilize their loans properly.
A borrower can make the following uses of secured business loans.
• To start a new business
• For buying new assets, machines or premises for a business
• Short term business loans for people running business on credit transactions.
• To increase the current business capacity or to launch a new business area.
Reason may be any one thing is for sure that business loans will always be there to help you.
Applying for secured business loans is easy all you need to do is estimate your requirement and then find a lender who will provide you with these loans. Secured business loan usually gets approved in a week or two. So people who want to apply for the loan need to do it with due care and all the details at their disposal.
Secured Business Loans – Source of funds to Establish Your Own Business
The term business seems so simple. But, do you know how much efforts are required to start and establish a business. A well-established business showcases the hardship, dedication and capital investment made by an entrepreneur. Are you one of them who want to rule the world and are tired of the orders of your boss? If yes, then it’s great; most of us want the same. But, whenever you evaluate the investment needed, it made you back out from the business plan. No need to despair any long; now you can borrow a secured business loan to secure your business dream.
Business loan come in two main forms - secured business loan and unsecured business loan. Now, you would think why I suggested you secured loan despite of other loan alternatives available. There is a strong reason behind it, I am here to suggest you the best option and that’s what I did. A secured business loan requires a borrower to put collateral against the loan borrowed. Collateral, which a borrower needs to keep, can be in the form of a house, car, savings account or any other property owned by the borrower.
A secured business loan is a package of everything perfect. It offers a loan for a longer term, which can be extended up to 30 years in some cases. A borrower can borrow a secured business loan for a larger amount which can range between £25,000 to £10 million depending on the loan term and credit rating.
A borrower can enjoy the benefit of flexible repayment options offered by secured loan. One can choose a fixed rate loan or a flexible rate loan. A fixed rate loan implies that a borrower has to pay fixed monthly installment. People who are sure that they will be able to pay fixed monthly installment each month, can opt for this option. Flexible loans requires a borrower to pay monthly loan as per their convenience. Borrowers can make overpayment, underpayment and can enjoy payment holiday too.
If you want to start a new business, then you need to present a business plan. Your business plan will help in determining your possibility of getting the loan. Thus, a business plan is needed to be planned thoroughly. Don’t keep any secret; disclose every minute detail to the lender. An ideal business plan contains each and every detail of the business - product, identifying competitors existing in the market; your business strategy, your future plans, financial forecasts and what are the risks involved in the business.
Entrepreneurs who have an established business may need to submit few documents such as a copy of business tax returns, balance sheet, profit and loss statement and other financial statements. These statements will work as evidence that the borrower is making profits or losses and whether the profits are large enough to cover the monthly payments or not. You need to make a business profile giving description of the annual sales, length of time in business and ownership whether a business is in the form of proprietorship, partnership or a private limited company.
Traditional lenders such as banks and financial institutions can be approached for borrowing a secured business loan. It won’t be wrong if I state that twenty first century is an era of technology. Every one wants to become computer savvy. An important contribution of the rapid mounting technology is the invention of internet. Internet has broadened the growth scope of the finance market with the entry of online lenders. Online lenders offer fast online loan with ease. A borrower can access online lenders by browsing loan providing websites. Online lenders give the convenience of borrowing loan. Online application form are available at most of the websites, a borrower needs to fill it. Online lenders approach the loan applicants with the most appropriate loan option.
There is one more area lenders focus on; this is credit status of the borrower. Higher the credit score, more is the possibility of getting a secured business loan at better rates, and that too for a longer term. Poor credit score cannot stop you from getting a secured business loan. You just need to have collateral to put as a security to borrow the loan.
Though, there are various benefits attached with a secured business loan. However, as a coin has two sides same is the case with a secured business loan there is risk involved regarding the repossession of the collateral kept as a security if one fails to repay the loan. There is risk involved in every deal, running a business also involves risk but a wise man knows how to manage the situation and accept the challenge. If you want to make a mark for yourself in the business world then you would definitely accept this challenge and will bear the risk to prove your capability and entrepreneur skills.
Secured business loans: before you take that big business leap
Business loans form a significant part of lending industry. With so many people applying for business loans, you must be wondering how many of them actually get them. The increase in amount of business loan every year shows the swelling in approval rate of business loans. So, what are your chances of getting business loans? I say, attach a security to business loans and your chances are bright. Secured business loans are loans for specific purpose namely business. There is no better terminology for business loans with opportunity.
Before you apply for secured business loans check out you borrowing capacity. Every business is different which means there will be no universal method to know the cost and therefore budgeting is important. This enables you to deduce whether you can afford secured business loan or not.
Tuck in those documents! Generally a secured business loan borrower would require few of the documents for approval. First and foremost is the business profile – discussing the nature of business, annual sales, length and time of business ownership. In case of new business you would require to project the loan plan and how the business would be successful enough to pay back the loan. For secured business loans the loan application will also include a loan request. This will include the type of secured business loan required, the amount and the purpose (how the funds will be used).
Secured business loans is secured details about collateral will be integral. The collateral and its details, equity available, equity in the business, borrowed funds and existing cash should be included in details of collateral. Along with collateral you would be required to provide financial statements for yourself and your business. Be ready with personal and business financial statement for three years and current financials statements. With secured business loans you will be asked for owners, partners, officers, stockholders with more than 20% of etc.
A lender looking at your secured business loan application will search for repayment. A borrower can provide a brief repayment statement which includes sources, cash inflow and other information to support it. With secured business loan you are providing collateral which will mean an additional form of security for the lender. This the lender will certainly like! He will have additional repayment to fall back on when you don’t have required funds to payback the loan. Both personal and business assets can act as collateral for secured business loans. If the business loan borrower does not have collateral he should have co-signer who should have collateral to pledge. In a secured business loans application, collateral will be the second most identifiable source of loan repayment after business cash inflow.
A lender will inquire whether your personal or business credit is good or not. Get your latest credit report and make sure it carries accurate information. As you have applied for secured option it means that you would have better choices. However, credit score will modify the interest rates you get for secured business loans. With bad credit score you will be paying higher interest rates as compared to ones with perfect credit.
While preparing to get money it is important to see your financing options. There is both a financial and emotional component while borrowing secured business loans; your property is at stake. Make sure you are ready for it. Then do some market research. Take it as a test where you have to get the best grade. You would probably not start a business without researching the market; make sure you follow this rule while settling on secured business loan. Yet do remember that time is money. And don’t waste too much time in settling on the option.
Every big business starts out small. Secured business loans are in fact the first thing that comes to the mind and provide fundamental opportunity when one is raising money for business and can provide to those who are to those who are looking for funds for business purposes. Secured business loans are what you need when you are looking for business loans with security.
Commercial Secured Loans – Ideal finance for your business
A perfect combination of discipline, hard work and proper training can take your business to new heights helping you in accomplishing the desired success. Discipline is needed in every area in an organisation ranging from managing the employees, maintaining the environment of the organization, coordinating the work in the organisation or the finance.
Maintaining discipline in the field of finance is the primary function of every businessman. It is truly said that money moves the world around. And the same applies to the world of business. Every business needs adequate finance for its smoother running and managing it is a tough task. Need for funds may arise anytime in a business, in such circumstances, commercial secured loans can be the best source of finance for the UK businessmen.
Commercial secured loans as the name indicate are tailored for businessmen who need funds for commercial purpose. These loans are very flexible and come in variety of structure to meet the diverse needs of the UK businesses.
An important feature of commercial secured loans is that the borrower needs to put a security against the loan. Any of these - commercial property, equipments, invoices or order books can work as collateral against the loan.
Big as well as small business projects can be financed with commercial secured loan. These loans are multi-purpose loan and can be put to diverse uses namely the purchase of business premises, expansion, residential and commercial investment or property development and for many other commercial purposes.
Commercial secured loans provide affordable and effective solution to access the required capital. Loan terms attached with commercial secured loans are usually longer ranging from 10 to 30 years. Borrowers with commercial secured loans get an opportunity to withdraw an amount ranging from £75,000 to £15 million depending on your business trading history, borrower’s Credit rating, industry type and the collateral kept as a security against the loan. Some lenders can also provide you the loan of even a higher amount if they find your financial status worth.
The loan market at present is swamped with large number of lenders competing to grab more and more customers. You can make use of this opportunity and can seize the best loan deal. Many banks, financial institutions and online lenders can offer you commercial secured loans. But, in case you are looking forward to get the best deal in the most convenient way online lenders are the best option.
Online loans offer complete ease and comfort in getting a loan arranged. You just need to fill in a small application form online and the lenders will contact you as soon as they find appropriate loan deal that matches your individual circumstances to the best. You can search online commercial secured loan providers through various search engines namely google, yahoo or any other. Browse through the lending websites, you will definitely find the loan deals amazing. Don’t choose any loan deal you are offered blindly, collect loan quotes from all the lenders and compare among them. Thorough research will help you get the best loan deals that attach best loan terms with it.
Shortage of funds in a business can be easily met with commercial secured loans. Stay focused on your goals, try to keep track of your funds, the opportunities are just as great today as they ever were you just need to work a little harder.
Finance New Project Through Secured Business Loans
Business persons always require funds either to start new venture or expand the established one. Own sources are often not enough for the funds, hence loan taking becomes inevitable. Secured business loans meet every monetary requirement of business people and that too at lower interest rate. Lenders provide secured business loans for variety of business purposes ranging from starting a new business or adding more projects to business and paying towards various expenses.
Secured business loans are offered by lenders on condition of borrower offering collateral in order to secure the loan. Any property like home, valuable papers, jewelry, vehicle etc is enough to provide for collateral. Once the loan is secured, business persons are able to take any loan amount ranging from ₤50000 to ₤1000000 as secured business loans. If higher loan is the need then lender goes for evaluating equity in the collateral. So, for taking greater loan place high equity collateral like home with lender.
With collateral in place, lenders give secured business loans at lower interest rate. Once business persons start comparing different loan packages of the loan providers, the interest rate on secured business loans comes down further. This way business community can reduce the cost of loan and save lots of money.
For business people another advantage of opting for secured business loans is that they have a vast choice of duration to return back the loan. Keeping their repaying capacity in mind, business persons can choose any term from 5 to 25 years for clearing secured business loan. While deciding on the repayment term, remember that higher the term, lower will be the amount towards monthly installments.
Another big advantage of going for secured business loans is that even business persons with bad credit can easily take the loan. Lenders do not care much about credit record of the business people because lenders always have the option of repossessing the collateral in case the loan is not paid back. Still, good credit score enables in taking the loan at better terms and conditions including reduced interest rate.
For availing secured business loans at reduced interest rate and at low cost, prefer applying online. Numbers of lenders have showcased the loan products online. Their terms and conditions vary from each other. There is growing competition in secured business loan market. Business people can take advantage by applying online.
Secured business loans are of great help in establishing a new business and expand the business. Take the loan after giving thought to aspects of taking the loan at lower interest rate and low cost.