Loans

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• Wedding Loans – Why & How to Get One
• Tiny House Loans – Why & How to Get One
• What is business invoice financing?
• What is business equipment financing?

Wedding Loans – Why & How to Get One Posted: 04 Jun 2021 07:25 AM PDT Summary A wedding loan is a type of personal loan that covers wedding expenses The pros of wedding loans include convenience, fast and easy application, lower interest rates, and potential credit improvement The cons wedding loans include interest, extra debt, and relationship stress Alternatives to a wedding loan include credit cards, home equity loans or lines of credit, and saving up Wedding loans don’t exist as a financial product. Instead, it is a personal loan that the borrower uses to cover wedding expenses. While they can be beneficial, they also have their disadvantages. Read more about the pros and cons below and see what alternatives you have. If you’re searching for wedding loans, compare rates from lenders in your area by entering your ZIP code above. Table of Contents What is a wedding loan? What are the pros and cons of a wedding loan? What are the alternatives to wedding loans? What is a wedding loan? A wedding loan is a type of personal loan that you can use to cover wedding expenses. According to a study done by The Knot, the average wedding cost in 2019 was $33,900. With wedding loans, you may have the option of financing at least part of your wedding and making payments instead of saving up all the money you’ll need before getting married. What are the pros and cons of a wedding loan? The pros of wedding loans are: Convenience – Wedding loans can be used to pay deposits for vendors, meaning you won’t have to save a large amount of money or delay your wedding because of a lack of funds. Relatively fast and easy to apply – After gathering your financial documents, some online lenders have applications that take only a few minutes to fill out. Approval can take less than a week, and funds are deposited into your bank account. Lower interest rates – Compared to other financial products, such as credit cards, personal loans can have lower interest rates for people with good credit. Potential credit improvement – If you make your payments on time, you may be able to use your loan to improve your credit. The cons of wedding loans are: Interest – When you use wedding financing, you’ll have to pay extra in terms of interest rather than the fixed price you’d have to pay when paying with cash. Extra debt – During qualification and underwriting, lenders will evaluate how much debt you can afford. If you already have other loans, you may not qualify for a personal loan, and if you get a personal loan, you may not be eligible for an auto loan or a mortgage. Relationship stress – With a wedding loan, you will be starting off your marriage with debt, which could cause stress on the relationship if you’re worried about how to eliminate wedding debt. Weddings loans can be beneficial for some people, but others may want to consider alternative financing options. What are the alternatives to wedding loans? Alternatives to wedding loans include credit cards, home equity lines of credit, and simply saving up. Credit cards may be a more expensive financing option since they may have high interest rates, but you may also qualify for a 0% promotional period. You may also be able to earn rewards, such as flights and hotels. However, you should try not to spend money that you don’t have. If you own a home and have significant equity in it, a home equity loan or home equity line of credit may be an option for wedding financing. However, if you default on the loan, the creditor could seize your home. One of your last options is to save up the money. While this means you may have to extend your engagement, it means there’s less chance of you going into debt for your special day. If you’ve decided that a wedding loan is right for you, enter your ZIP code below to compare rates from lenders near you. References: https://www.wedinsights.com/report/the-knot-real-weddings The post Wedding Loans – Why & How to Get One first appeared on Loans.org.

Tiny House Loans – Why & How to Get One Posted: 03 Jun 2021 12:59 PM PDT Summary Tiny house financing may be difficult to find, but it is possible Some lenders may provide mortgages, but these will likely be the most difficult to find Personal loans are an unsecured option, but interest rates may be higher than other products You may also be able to use a home equity loan, home equity line of credit, RV loan, or builder financing The tiny house movement is growing in popularity, influencing people to downsize their homes and live with less. While they may be cheaper than larger, traditional homes, tiny house financing can be a little more challenging to find. Read below to learn about some financing options, such as personal loans or mortgages. Before jumping into this review on tiny house loans, enter your ZIP code above to compare rates from lenders near you. How can I get tiny house financing? Tiny home financing may be a little harder to find than financing for a traditional home, but it is still possible. You may need to compare lenders and financial products to see who has a loan that would work for your needs. Finding a mortgage may be difficult to find due to minimum loan amounts, appraisal requirements, and property size requirements. However, you may be able to find a mortgage that would work. If you do, you may have higher interest rates and shorter terms since your loan will be smaller. Personal loans may be an option for those with good credit. However, interest rates are often higher, and terms are often shorter, meaning your monthly payments may not be affordable. However, they don’t require collateral, so your assets wouldn’t be at risk if you default on your loan. If you own a home already, you may be able to use a home equity loan or home equity line of credit to pay for your tiny house. However, this means that if you miss payments, your primary home could be seized by the creditor. The amount you’re allowed to borrow could also be limited. If you’re building your tiny home on wheels, you could consider using an RV loan to finance your purchase. This would allow you to have a longer loan term, but you would need your home certified as an RV, and your tiny home cannot be your primary residence. You may be able to find a lender that partners with a tiny house builder to offer financing. These loans are either unsecured or secured by the tiny house, and you may need to make a down payment. However, you may be able to get lower interest rates and longer loan terms. What else should I consider? According to HomeAdvisor, the average cost of a tiny home is $45,000. However, the price of a tiny house is not the only factor you’ll need to consider. While you will reduce some housing expenses, other housing expenses may increase. If you’re building on a foundation, you’ll need to purchase or lease land to build on. If you buy a pre-built tiny house, you may need to pay for transportation and setup. If your tiny house is on wheels, you’ll need to consider fuel and parking fees. You may also need or want to buy RV insurance, construction insurance, or homeowner’s insurance, as well as taxes or permit fees. Inside your home, you may need to pay a little more to get smaller appliances that will fit. You may also have additional laundry expenses and propane costs. You may also need to rent a storage unit for things that won’t fit in your tiny house. If you need help finding tiny house financing, enter your ZIP code into our free comparison tool below to find lenders near you. References: https://www.homeadvisor.com/cost/architects-and-engineers/build-a-tiny-house/ The post Tiny House Loans – Why & How to Get One first appeared on Loans.org.

What is business invoice financing? Posted: 03 Jun 2021 11:58 AM PDT Summary Business invoice financing creates cash flow to business when a customer finances an invoice You can get invoice financing loans with interest rates as low as 0.25% Check your business credit score to make sure you can meet the lender’s requirements Do you have a business with invoices that you finance for customers? Financing is a versatile option for customers who don’t pay their invoices in full. To prevent financed payments from affecting your business, you can use business loans known as business invoice financing to protect your business’s capital. So what is business invoice financing exactly and how does it work? Read on to learn more about business invoice financing and how you can use it to your advantage. Enter your ZIP code in the free comparison tool above to compare multiple loan companies. What is business invoice financing? Business invoice financing, or invoice financing, is when a business borrows money from a lender to keep a steady cash flow while a customer is paying an invoice from a company over time. For example, let’s say you sell a shipment of spark plugs to a customer. The customer doesn’t pay the invoice in full, but they make a down payment to start a series of payments that will last for at least a year. Financially, you may not be able to wait that long to get your money back. Invoice financing can provide a loan that gives you the money back right away while the customer is making payments. Types of Invoice Financing Invoice financing (receivable financing) is handled in various ways. Some companies don’t want to deal with managing invoices, so they send them to finance companies. Let’s go over five different types of invoice financing, so you’ll know your options in the future. Online Invoice Auctioning If you’re looking for a fast, cost-efficient way to borrowing money against an invoice, try auctioning your invoices online. Select the invoices you want, set them up to bid, and wait for lenders. The lender with the highest bid provides the business with an invoice financing loan. Your business will receive a lump sum payment while the customer pays the lender the amount due. Invoice Factoring A business that values the relationship with customers will use invoice factoring as a last resort. Invoice factoring can provide cash up to 90% of the invoice amount to the business, but the lender will hold onto ten percent of the total amount until the invoice is paid off. The lender (debt collector) manages the invoice for your business, which could be damaging to the relationship with the customer. Invoice Discounting This is much different than invoice factoring because the customer isn’t aware of it. When a customer finances a product, you can borrow the money against the invoice and finance it through a lender. Invoice discounting allows the business to control and manage the invoice account. In other words, the business receives the money from the customer, and the business pays the lender for the loan. Invoice discounting can be used as a pre-emptive measure to secure cash flow while a customer is making payments. You may have to charge additional fees to your customers to make profits. Selective Invoice Financing If you need invoice financing on several invoices, you’ll need selective invoice financing. It’s a large lump sum payment to your business, but it can affect your business relationship with some customers. The lender will manage the invoice for you. You can focus on providing revenue to critical parts of your business and payment to employees. Spot Factoring With spot factoring, you can target a specific invoice to finance. The lender will return the money to your business once the invoice is paid in full. Spot factoring is a one-time service where the business pays the lender for convenience and management over the invoice. Keep reading to learn more about the top invoice financing companies. What are the best invoice financing companies? Check out this list of invoice financing companies. The Best Finance Companies for Invoice Financing FINANCING COMPANY FUNDING AMOUNT FACTOR RATES SPEED HOW TO QUALIFY BEST FOR BlueVine Up to $5 million 0.25% to 1.7% per week Average of two to seven days 530 minimum credit score; three months in business; $120,000 annual revenue Fast and easy financing; startups or businesses with average credit AltLINE Up to $4 million; minimum of $15,000 per month 0.5% to 3% for the first 30 days; maximum of 5% As fast as two days 500 minimum credit score; ability to factor $15,000 worth of invoices per month Monthly contract financing; business owners with lower credit Porter Capital Up to $15 million Starts at 0.75% per month As fast as 24 hours Specifics not available Fast funding, flexible solutions including those that accommodate businesses with previous financing issues Payplant Up to $1 million Starts at 1.2% As fast as 24 hours Specifics not available Larger businesses who can access the most affordable rates Triumph Business Capital Up to $5 million Varies based on your invoice volume and contract length/type As fast as the same day, if invoices submitted by the cut-off time No current UCC filings; $50,000 income/month for non-transportation industries Financing for larger invoices; ability to upgrade to additional products Get Your Rates Quote Now #blank# #blank# #blank# #blank# #blank# Compare RatesStart Now → Porter Capital provides the highest funding amount, but AltLine has the lowest minimum credit score requirement. BlueVine has the lowest factor rate, but Porter Capital and Payplant have the fastest loan approval. According to CNBC, you should check your business credit score before making a final decision on business endeavors. These may be the best candidates for invoice financing, but other reliable finance companies can give you quality service. Find a financial advisor and develop a strategy. How do you apply for invoice financing? Each company has different requirements, as seen in the previous section. Look at the requirements the finance company needs and then apply. Most reliable companies have websites where you can start the application process online. Invoice financing for small businesses works the same as any other business loan. If your small business meets the requirements set out by the lender, then you qualify for invoice financing. Business Invoice Financing: What’s the bottom line? Invoice financing can save your business from losing money and needing to rely on high-interest personal loans. It’s a risky move because the general view of debt collectors and finance companies is negative in the eyes of some customers. Therefore, choose your invoice financing strategy carefully. Now that you know more about business invoice financing, use our free online comparison tool to compare the best companies in your local area. References: https://www.cnbc.com/select/free-business-credit-score/ The post What is business invoice financing? first appeared on Loans.org.

What is business equipment financing? Posted: 29 May 2021 11:23 AM PDT Summary Business equipment financing allows you to make monthly payments on expensive equipment Under the right lender, you can secure an eight percent interest rate Before getting a business equipment loan, use an equipment loans calculator to estimate your monthly rates Do you have an auto repair shop that needs new equipment? Or maybe you have an office that needs several desktop computers. You can get business loans called business equipment financing to help pay for expensive equipment. What is business equipment financing and how does it work? Our guide explains everything you need to know about business equipment financing and how it works. Continue reading to learn how business equipment financing can work for your business. Enter your ZIP code in the free online quote tool to compare multiple companies near you. What is business equipment financing? Business equipment financing is a loan for essential equipment at your business. Most businesses get equipment financing to cover significant purchases that have expensive costs. Business Equipment Financing Pros & Cons Business Equipment Financing Pros Business Equipment Financing Cons Business equipment financing has a low-interest rate You may have to sell or dispose of outdated equipment you financed You own the equipment once the loan has been paid. You can even lease your business equipment through your previous lender Some initial down payments are expensive The interest you've paid on your business equipment financing loan can be used as a deductible Get Your Rates Quote Now #blank# Compare RatesStart Now → Usually, business equipment financing loans match the price of the equipment. Also, the loan should come with a term limit, such as ten years. Paying on the principal of the loan can shorten the term. Business equipment loans are usually used for business auto loans and semi-trucks. However, food trucks can use business equipment financing for refrigerating units and other essential equipment. How does business equipment financing work? Equipment financing provides a loan specifically for businesses that need costly but essential equipment to make a business more efficient. Finance companies, banks, and other lenders may require collateral as security for the loan. If you fail to make timely payments, the lender can seize business assets or personal assets that you’ve put up as collateral. Some loans won’t cover the entire cost of business equipment. That’s because your business line of credit or overall financial profile hasn’t accumulated enough credibility. How do I get business equipment financing with bad credit? Getting business equipment financing with bad credit is challenging. Lenders may give you the minimum loan amount at a very high interest rate. Interest rates for business equipment financing are between eight and 30%. With bad credit, you could have an interest rate close to 30%. Before you request a business equipment financing loan, use an equipment loans calculator to get an estimate of how much you’ll pay per month. Where can you get business equipment financing? Business equipment financing is usually available through banks. However, there are other financial companies you can choose from. Here’s a list of equipment financing companies. Balboa Capital CIT Bank Crest Capital Currency National Funding US Business Funding These six companies are listed as the best equipment finance companies currently operating. They don’t have prepayment penalties, but most of them have an origination fee or documentation fee. National Funding doesn’t have a listed interest rate, but business owners with a FICO score of 575 or higher may qualify for a loan up to $150,000. How can I apply for business equipment financing? To apply for a business equipment financing loan, you’ll need: Credit Score Equipment Cost Estimate Up to Three Months of Business Financial Statements The Time You’ve Been in the Business Personal Information Business Tax Return Each loan company carries different requirements, but you should have the items listed above. Are personal loans and business equipment leasing options better than business equipment financing? Personal loans are often used for business, but it’s better to use a business line of credit or a business loan like business equipment financing. Personal loans typically have higher interest rates. If you don’t want to deal with finance companies, you can lease equipment through business equipment leasing. Instead of making monthly payments to own the equipment, you make payments to use the equipment. With business equipment leasing, you can return the equipment once it becomes outdated and upgrade to an updated version. Business Equipment Financing: What’s the bottom line? Use business equipment financing to your advantage to avoid large upfront costs that you may not be able to afford all at once. Business equipment financing has lower interest rates than personal loans, and it’s a great way to improve your business line of credit. Now that you know more about business equipment financing, you’re ready to shop around. Enter your ZIP code in the free comparison tool below to compare multiple companies. References: https://www.myfico.com/credit-education/credit-scores The post What is business equipment financing? first appeared on Loans.org.

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