Finance

Can You Get a Personal Loan With a Low Credit Score?

Angela Manning Finance , ,
Can You Get a Personal Loan With a Low Credit Score?

One of the main factors that make you eligible to get approval for a personal loan is your CIBIL score. Essentially your credit score, CIBIL (Credit Information Bureau (India) Limited) generates a summary of your credit profile in the form of a numeric value to inform lenders about your financial status. Lenders gauge your ability to repay loans based on how high/low this score is.

Credit Score and a Personal Loan

A personal loan can be taken by individuals to meet any purpose, from financing medical emergencies to vacations. This is a good way to access funds, and if you have a credit score that meets your lender’s requirements, you can avail a personal loan online instantly. Funds could be in your bank within a day. Typically, banks and other lenders have a threshold credit score or CIBIL score below which a loan may not be granted. This score falls in a range of 300-900, and 600 is acceptable. It’s a good idea to check your CIBIL score  at Finserv MARKETS before you apply.

Why is a Credit Score Important?

A credit score is important (and a high one, preferably) for the following reasons:

  • It lets lenders know about your credit history/creditworthiness.
  • It establishes your relationship with lenders, such as your bank, and helps you get financial benefits like quick loan approvals/flexible tenures.
  • It helps you get fast loans with funds transferred rapidly. Furthermore, you can get online approval.
  • It aids you in availing lower interest rates.

Can You Get a Loan With Low Scores?

If you do find out that you have a low credit score, your number one priority should be to find out how to improve CIBIL score. Nonetheless, with a low score, can you still get approval? The answer is ‘yes’, albeit with conditions. These constitute the following:

  • You may get approval for lower loan amounts
  • You may have to pay high interest rates
  • You may have to display additional proof of stability of an income source
  • You may have to show collateral (like gold, property, etc.) to avail the loan

Can You Improve Credit Scores?

It’s easy to find out how to improve your CIBIL score. Consider the following:

  • Debt Repayment – You should make sure any outstanding debt is paid off before you apply for further loans.
  • Use your Fixed Deposit – In case you hold a fixed deposit, you can get a credit card against it and this improves your credit score.
  • Joint Loan – Take a personal loan with a joint holder. If that holder has a high score, it will reflect on you and you may get loan approval.
  • Timely Payments – Make timely payments on credit card bills and any EMIs you may have availed of.

Planning Ahead

Living in uncertain times has become normal, and planning ahead helps. You may need a personal loan at any point in your life, and you can easily get one if you show creditworthiness that guarantees lenders of sound financial health. Go over to Finserv MARKETS to get the best view of loan products and how to get them easily.

The Easiest Way to go for Home Loan Balance Transfer

Angela Manning Finance , , ,
The Easiest Way to go for Home Loan Balance Transfer

Home loans are among the longest loans to serve. A portion of your income is consistently spent, over a long period, on the repayment of your home loan. The home loan interest rate, although presently low, amounts to a significant sum due to the long tenor. Besides, there is always another lender offering a better home loan deal with lower interest rates. Therefore, by opting for a home loan balance transfer, you can earn yourself a low-interest rate agreement for your prevailing home loan.

Eligibility for a home loan balance transfer

Before anything else, you must find out if you are eligible for the home loan balance transfer. To be eligible,

  • You should have a prevailing home loan from another bank or lender.
  • You should have completed paying at least 12 EMIs of your existing loan.
  • You should not have defaulted in paying any or a specific number of EMIs for your prevailing loan.
  • Also, if your property’s registration is not done, you are not eligible for the balance transfer.

While the exact specifications may vary, these are the common eligibility criteria sought by lenders when you apply for a home loan balance transfer.

Steps to follow for Home Loan Balance Transfer

  1. Visit the website of the lender where you wish to transfer your home loan.
  2. Go through all the terms and conditions and know their interest rate and processing fee.
  3. Once you are contented with their proposition, apply for the balance transfer.
  4. To apply, you have to fill in your personal details, financial details, employment details, current property details, tenure of your current loan, and existing bank’s name.
  5. Once you complete filling in the above-mentioned details, you can view your loan offer.
  6. Upload all the necessary documents and pay all the required fees.
  7. Upon completion of your application, wait for their approval.

But before you apply for the balance transfer from one lender to another, remember to do the following important tasks:

  • Get all the important documents from your current lender, which are necessary for the balance transfer.
  • Get a consent letter from the prevailing lender with the remaining loan amount.
  • These documents are necessary to be submitted to the new lender where you wish to transfer the home loan balance.
  • A home loan EMI calculatorcan help in your decision-making. So, use it to calculate the monthly installment and make a wise decision regarding your home loan balance transfer.

Conclusion

While transferring your home loan, do note that the cost of the transfer shouldn’t be too high. Charges by both the existing and the new lender may eat away some of the cost-benefit you hope to achieve. With that cost kept in mind and under control, you stand to save a lot of money in the long run through a home loan balance transfer.

Five Great Advantages for Investing In the Stock Market

Angela Manning Finance , , , ,
Five Great Advantages for Investing In the Stock Market

Whether you are saving for retirement, purchasing real estate, beginning a family, or just to have a secure nest egg, choosing stocks to invest in is a profit-bearing investment.

The reason people take the risk to invest in stocks is that this system yields the highest return for your money. Also, the longer you invest in stocks, the better your money will perform for you.

The more you learn your way around the stock market the higher your money will be for whatever your financial goals are in life. Owning stocks will help you build on your savings. Investing in stocks also helps to protect your money from taxes, inflation, and other financial losses. You might notice some Amazon insider trading going on. See what the insiders at Amazon are doing and ask yourself if you should be doing it too.

Investing in other forms of financial ventures may require a larger stock market investment than you can afford right now. For this reason, the best return for your money is stock investments. Yes, investing in stocks can be risky but any success in the market will depend on you.

The more you know about stocks, the better your returns. There are many benefits to invest in the stock market. Let’s look at five great arguments in favor of investing in the stock market:

1. Stocks Are Easy to Buy and Sell

The market makes it easy to buy shares in businesses. You can buy them through brokers, through a company’s 401(k) and IRAs, or daily in the market on your own. When you have established an account, you can start buying stocks. There are varying stocks you can buy for just a few dollars and you will be guaranteed a good financial return.

Buy low and sell high. Buying low means watching the stocks as your company investment does not look good, then purchasing shares hoping that it will go up. Selling high is watching the market to see if your stock purchase is increasing. Then at a high, investors can sell their shares for a nice financial reward. A recent example of this strategy was the amazing return of the GameStop stock.

2. Diversification

Putting money into different types of investment products, a stock market investment is one of the benefits of diversifying your portfolio. That is why diversification in the stock market is better for investor portfolios.

Having a combination of small, mid, and large-cap stocks will help you weather losses. Small and mid-cap stocks give you a better chance to grow your investment. Large-cap stocks are a stable investment with good profitability.

3. Dividend Income

Dividend income can be obtained through some stocks. No, not every stock provides dividends, which is why you must do your research. However, those stocks with dividend options provide an annual payment to investors.

Why choose stocks with dividends? Because if the stock loses value, it still generates income for investors. Added profits are yours if you sell the stock. Dividend income helps individuals who are planning for a rainy day. You can also take the extra money to reinvest in the stock market.

4. Invest in Stocks for Tax-Free Profits

There several types of tax-free accounts offered by the U.S. Government whereby you don’t need to pay taxes on your investment. The strategy of not paying taxes on investment gains begins by selling an investment stock with a tax-bearing long-term capital gain in the year that you are due an income. Your gains are not taxed. To be tax-free it is best to invest in stock investments like mutual funds or investment exchange-traded funds (ETFs).

5. Stocks Help to Beat Inflation

Rising prices mean more profit for companies, which in turn boosts share prices. Investors understand that stocks rise faster than the losses that inflation creates. Investing in stocks helps to protect your money from the downward spiral of the effects of inflation but stocks continue to guarantee you good returns.

Rising prices mean more profit for businesses, which boosts share prices. Granted that some stocks are better than others which is why investors must research the right company to invest in.

6. Borrowing Power

Investors with diversified stocks can use their investments to borrow money to pay off debts. You can borrow at lower rates than anywhere else. Yes, you will need to pay interest but the terms are user-friendly and more flexible. Investing in stocks helps to build up wealth, allowing you to take loans against a stock. You can access from 50% to 95% of your stock value.

5 Golden Rules for Beginner Investors in the Stock Market

Angela Manning Finance , , ,
5 Golden Rules for Beginner Investors in the Stock Market

With the high rise in inflation rates, your salary may not suffice all your needs. You can invest your money in real estate, mutual funds, fixed deposit schemes, and many others for good returns. The most attractive and appealing area of investment currently is the stock market investment.

It is a place filled with opportunities and massive potential profits. However, it is a risky investment, even for financial experts. Your success in this market mainly relies on the strategies you use. Read on for five golden rules you can adopt to smoothen your new stock market experience:

1. Avoid Tips and Rumors

When you are involved in the stock market, you are bound to come across market tips and rumors from many sources. Your colleagues and friends may also provide you with buying and selling tips. Some of these may help you, but the majority are just rumors. You may also apply the appropriate tips at the wrong time since the market is continually changing. The following are the common stock market rumors you are likely to encounter:

  • Sale of Unit: It is a rumor that an organization sells its stake and leaves its shareholders with a high share value
  • Corporate Governance: The news that a promoter is involved in the mismanagement of company funds lowers stock prices
  • Plans for Raising Funds: Any news about a company raising funds pushes the prices up
  • Other rumors you may encounter are pledging and delisting of shares. You can always monitor the prices by looking at the stock analyst ratings. This way, you can make better, informed choices

2. Invest Only What You Are Willing to Lose

As mentioned earlier, stock market investment is a risky venture. Therefore, it is normal to be overly cautious when starting. You should avoid using up all your savings since you are not safe from losing everything. Before you decide to invest in the stock market, consider the financial hardships you may go through if you lost your entire stock.

A big mistake that you should avoid making is using a loan as an investment. With the risks that are involved, you may find it challenging to pay back the money. Small investments are cheaper and allow you to be more flexible. If you are a small business owner, you can protect your business by investing some of your profits in the stock market.

3. Monitor Your Investments

Unlike fixed deposits, you cannot invest in the stock market once and forget about it. It is volatile, and the prices frequently change along with the organization. Below are five ways to keep track of your stocks:

  • Keep up with the market trends by checking in to financial news sites
  • Set up a free portfolio tracker with sites like Google Finance and Yahoo Finance
  • If your portfolio tracker offers automatic alerts, sign up to receive emails or text messages about changes in your stocks
  • Read the annual report, which is an appreciable research tool for stock investors
  • If you are involved in individual stocks, check-in with each of the company’s quarterly earnings calls

4. Invest in Companies You Know and Understand

With the risk involved in stock investment, you should have enough information about the company you want to invest in. If you are passionate about cars and often purchase automotive magazines, you can choose a company from the automotive industry. When deciding on where to invest, you can consider the following about your options:

  • Financial health as shown by annual and quarterly financial reports
  • Nurture
  • An organized and easy to understand the business model
  • Willingness to pay dividends

5. Diversify

It is one of the oldest strategies you can use in stock market investment. Investing in a single company is too risky, just like you should never put all your eggs in one basket. There comes a time when a company does not perform well hence decreasing the value of your investment.

It is safer for you to have a combined investment of small, mid, and large-cap stocks. Small and mid-caps have higher chances of growing your investment and returns, but there are risks involved. Large-cap stocks are mainly stable with good returns. Beginners should always start with small and mid-cap stocks depending on how much they intend to invest.

The five rules above are a big step towards stock market investment for beginners. Investors who stay focused and avoid rumors experience massive opportunities from this market.

Do You Need Commercial Insurance?

Angela Manning Business, Finance , ,
Do You Need Commercial Insurance?

It’s not always clear whether a business needs commercial insurance. However, without the right insurance, a business can suffer. This is because there might be times when you need to make a claim. For example, if your premises are flooded, vandalized, or your business is interrupted.

This article will help you to understand whether you need to take out commercial insurance and what the insurance could cover.

Owning Real Estate

If your business owns real estate or any property it can be beneficial to you if you have commercial insurance. This is because the insurance could offer your property in addition to your business equipment or products some protection.

You need to make sure that all of your property is protected. It does not matter how large or small the property is or how old it is. You need to make sure that you have the required insurance.

In addition to this, some mortgage providers also insist that you have this type of insurance. Some mortgage providers will not offer you a mortgage if you do not have commercial insurance. This is because you will be deemed too much of a risk.

If You Are Concerned About Liability

If you operate a business that can be prone to liability lawsuits, having commercial insurance can help to protect you. This is because some insurance policies come with separate liability insurance. This means you will have a bit more protection if you are involved in an industry that sees a lot of lawsuits.

Please note, not all insurance providers will offer you this option. This is why it makes sense for you to look for a provider that does. Knowing that you’re protected can ensure you can get on with the day-to-day running of your business. There is a real potential for you to lose thousands of dollars if a lawsuit does not run in your favor. This is why it makes sense for you to have insurance that pays out.

Business Interruption

If there is a chance that your business could be interrupted, you should take out commercial insurance. This is because there is always the potential for you to lose a lot of money. Let’s imagine that your business is flooded and you have to close it for the time being. Not only will you lose money but you will have to pay for all of the repairs.

Some insurance providers also offer business interruption insurance. This will ensure that you continue to receive a sum of money that should cover your business costs.

If you would like to run your business correctly, you need to make sure you have the right insurance. Please think about your real estate, whether you could be held liable by customers, or if you are covered if your business is interrupted. This will ensure you don’t have to pay to get yourself out of a mess. It will also keep you on the right side of mortgage companies and even the law.

What To Do If You’ve Had a Workplace Accident

Angela Manning Finance ,
What To Do If You’ve Had a Workplace Accident

Every year, workers all across America have an accident in the workplace. While some of the accidents only result in minor injuries, others can potentially result in life-changing injuries. However, it’s not always clear what you should do if you’ve been involved in a workplace accident. The good news is this article can help you.

Deal With Your Injuries First

One of the first things you need to do is get your injuries treated. You should do this before you do anything else. Once you have received the appropriate care on the day of your accident make sure that you get a copy of your medical notes. This is to ensure that you have evidence of your medical treatment.

Report The Accident

Once you have received medical treatment the next step is for you to report the accident. Report it to your employer within 24-48 hours if it’s possible. This will ensure your employer has a record of your accident.

Take Photographs

If you need to, take photographs of your injuries, and the area where you had the accident. Also, consider getting video evidence if you can. If you are unable to take photographs ask someone you trust to do this. This is so you can show the evidence to an injury lawyer.

If your injury is not too bad, you might be able to take photographs of your injuries before you receive medical treatment. However, this is only suitable if you are not bleeding or your injuries are not very serious.

Make a Note of Your Symptoms

Once you have received medical treatment you need to make a note of your symptoms. This is so you can show your lawyer and the court that you’re still suffering. Make a note every day and describe how bad your symptoms are. You don’t have to go into a lot of detail  you can simply write down your pain level out of 10. in addition to this, you will need to mention where the pain, for example, is and how it’s limiting you.

Take Action

If you haven’t done so already, take action. Hire a lawyer to represent you if you wish to make a claim. This will ensure that you’re much more likely to receive the compensation you’re entitled to. It will also tell your employer that you’re serious and this could cause them to make the workplace safer.

Document Your Losses

How much time have you had off work? How much money have you lost because you’ve not been working? How much have you spent traveling to your medical appointments? Document all of your losses so your injury lawyer can show the court. These notes will ensure you’re much more likely to receive compensation. Don’t forget to add any future losses if you need on-going treatment or you’re not going back to work any time soon. All of this will also help the court to take your injury case much more seriously.

5 Types of Dressers and When to Buy Them

Angela Manning Finance , ,
5 Types of Dressers and When to Buy Them

The most common time for someone to purchase a new dresser is either when they move into a new bedroom or when they’re replacing old furniture. But the best part about replacing any item in your home (especially those that you use every day) is that it gives you a chance to rethink what you prefer and assess what direction you want your interior design to go.

When you order your dresser to be custom made, you’ll have even more options. Any of the following examples would look exquisite with a reclaimed wood furniture with vintage look as designed by an expert solid wood furniture crafting company. And, of course, it helps enormously to gain a better sense of what options are available and what benefits belong to each choice.

1) The Classic Tallboy (or Highboy)

There’s really no bad time to buy a tallboy dresser. That’s because they can fit well into almost any type of space. Where these items really come in handy, however, is when you have tall ceilings and little floor space to spare. This is a favourite among city dwellers, who live in small condos and apartments.

2) Lowboy or Commode

You might think that the lowboy is the exact opposite of the tallboy, but it’s really just height that provides the comparison. While both styles are often exceptionally ornate, the lowboy usually accommodates a detachable mirror and even a sitting area.

A lowboy is more like a chest of drawers combined with a dressing table. The lowboy contains small drawers that are sometimes used to house toiletries and often houses a decadent countertop, made of an elegant material like marble. In France, they are called a commode and through much of modern history were a status symbol.

3) Cabinets

Tallboys and lowboys do share the similarity that they both follow the “chest with drawers” model of design, albeit in varying shapes. A cabinet, however, is different from the chest with drawers model since it can accommodate a larger variety of shapes and designs. This means that cabinets often include a combination of drawers and wardrobe-style doors. If you’re looking for variety, then a cabinet may be right for you.

4) Wardrobe

The wardrobe is usually a tall style of dresser that includes two doors in front. Like the tallboy, This design maximizes your ability to store clothing while taking up as little precious floor space as possible. A wardrobe, however, will furnish your room with a more formal look and can work well with shelves, drawers, or even a space to hang clothing.

5) Classic Variations

The difference between each of these pieces can often be subtle. When you look over the history of furniture, it gets much more complicated than the basic items listed here because different locations and time periods apply different names and specific functions to slight variations. Some of these different possibilities include:

  • Lingerie Chest
  • Gentlemen’s Chest
  • Bachelor’s Dresser

No matter what item you settle upon for your home, however, the most important decision you can make it to ensure that your furniture is handcrafted out of solid hard wood. Look into a fine solid wood manufacturer today for more information on the many options available to you.

Life insurance: Does my age matter?

Angela Manning Finance , ,
Life insurance: Does my age matter?

Life insurance, one of the great gambles in life is whether or not to have it. When you think about the needs for life insurance at different stages of your life, it is easy to see why some would want to go without it, or be afraid they cannot get a policy.

Life insurance policies are based on many factors the biggest is age. Age plays a role in getting life insurance and there comes a time when you can no longer get an insurance policy.

Most insurance companies cut off policy’s at between 75 and 80 years of age. After age 50 it is still possible to buy a policy but the premiums are usually higher. The older we get, the more our bodies fail us, as a result many insurance companies ask for physicals or medical history. Insurers are in the business of insuring healthy people. They don’t want to risk having to pay out a $1,000,000.00 policy on a man or woman who could die at any time soon. That is the reason your premiums are so high after 50. The insurance company wants max out their profit on you and hope you don’t die before the policy term is up.

As to the other end of the generational spectrum the young should be insured from day one. Life insurance policies are based on age the younger you are, the cheaper the policy. Experts suggest that one should purchase a policy before 35 years of age and warn that waiting too long could have harsh economic ramifications. The average funeral costs between $7 and $10 thousand dollars and if you don’t have insurance, the Social Security Administration will give you $250 to help with funeral expenses (obviously that has not moved with inflation). Most 0-35 policies are relatively in expensive and most go without it due to several factors such as debt or being in good health.

It is still possible to get life insurance after age 70 but it will require a lot of work and the help of a skilled agent. Some of the options for people in the 70+ community are as follows.

Guaranteed Universal Life Insurance

Guaranteed United Life Insurance policies are a combo of term life and permanent life insurance. In essence this is insurance that lasts for as long as you live and even offers a death benefit. If you want to avoid a medical checkup, you can still buy such policies but the death benefits get capped in return.

Term life policies

Term life is a great idea for those who have no family and no outstanding debts it is a cost effective option for the elderly as it helps avoid unwanted or unneeded coverage.

Whole life policies

Whole life policies are a good option to purchase at a young age. If you feel you no longer need it when you get to your early 60’s you can always cash it in for a lump sum payment to help with your retirement.

Life insurance is possible to purchase at any age, but the price and paperwork increases as one ages. It is of little regard as to what age you purchase the insurance because it does not stop the premiums from climbing. When it comes to buying life insurance age should not be the only factor involved. One needs to think about the reasons they want insurance and assess the profitability of the money invested in the policy. Remember unless you are very lucky and have a whole life insurance policy you will never see a penny of what you paid into the policy if an emergency should arise.

Learning How to Appreciate the US Dollar on the World Exchange Market

Angela Manning Finance , , ,
Learning How to Appreciate the US Dollar on the World Exchange Market

When Visiting Another Country

If we remain at home and do not travel abroad, we can appreciate what it is like in other countries by looking at the pictures that our friends bring back from their visits to other countries. Not everyone can be a world traveler, but some have the resources to travel and share their experiences. This is the case with a travel journalist who spends their whole life traveling from country to country and taking pictures for others who may be interested in visiting.

Travel Journalist

Of course, tourism loves a travel journalist because people get a chance to see what the country is like before they visit, and this attracts visitors to the country. At some point, the tourist does travel outside the United States or other departure cities and travel to their destinations outside of their native countries. When they go to another country, they will need to exchange their currency with the currency of the country they are traveling in. Foreign exchanges are suitable for businesses who can receive their currency at the point of sale, and tourists can exchange foreign currency on their exit.

Use of Foreign Currencies

When we travel to another country, we are in the habit of using another country’s currency. If we go to Japan, we use the yen, but if we travel to Germany, we use the euro. Again if we travel to Iraq, we will receive dinar value for our US dollars. Many currencies are traded throughout the world. The value of these other currencies change to more or less equal to the US dollar, dependant upon the political and economic factors of the country.

Foreign Currencies Change in Value

While we may not notice the fluctuation in the value of the Chinese yen or the German marc, when we are in those countries, every country’s currency is in constant fluctuation. When we land in a country for vacation, we will trade our US dollars for the currency of that country we are vacationing. When we leave the country, we will again trade our British pound for the US dollar, which may have changed during our stay. Our British pound may have become less valuable to us during our vacation and, therefore, when we receive, we receive fewer US dollars. That is what is called the foreign exchange rate.

US Dollar and the Strength of Other Currencies

The US dollar is seen as probably the most robust dollar in foreign exchanges along with the British pound. A few reasons why there is strength in the US dollar is because of the strong economy and its GDP or Gross Domestic Product. Along with a stable democratic government and a capitalistic economy, it gives the US dollar a leading edge over other countries. Some countries may have a different form of government which causes it to be unstable, or they are at a time of unrest and political war within the state. When a country fails to produce products on a world market and few products are being traded with other countries, this will affect that countries value of its currency. The US dollar has a stable government and banking system, especially the Federal Reserve Bank which keeps the US dollar active in both economic growth or economic slumps in the economy.

Iraqi Dinar Against the US Dollar

Presently, the Iraqi dinar (IQD) is trading about 1166 to a US Dollar, which, according to foreign exchanges, is the lowest it has ever been. The IQD has a high value if it could get itself out of the slump that it fell into after the Iraqi War. The strong possibility of a revaluation of the IQD is reliable, but presently its major commodity is oil and oil is not trading well on the world market.

Oil Prices Could Change

Oil is selling at a lower price because there is a great emphasis on finding other kinds of natural fuels. Another problem with the revaluation of the IQD at present is the political unrest the country is experiencing. Finally, the IQD is not traded on some foreign exchanges because of its meager value, even though they trade almost all other foreign currencies. The potential for a revaluation of the IQD is still being held steady for the future. The reason for this revaluation is because of the possibility that oil prices will increase. If oil prices move from their present value to $100 per barrel, then Iraq would be very wealthy. Iraq has a reserve of 143 billion barrels of oil, and they are the fourth largest exporter of oil in the world. At present, this is outside of the hands of the local Iraqi government, and only the future will tell whether the IQD will receive a greater revaluation on the world foreign exchange.

Business Line of Credit: How it Works

Angela Manning Business, Finance , ,
Business Line of Credit: How it Works

A business line of credit is a facility where you can borrow money up to a certain limit from a financial institution. You then pay interest only on the amount actually borrowed. You can then draw and spend money as you wish as long as you don’t go over the credit limit. It works in a similar way to a credit card. It allows you to draw against a predetermined credit limit that can be used as you need it, as opposed to receiving a full-term loan at one time.

How It Works

Since it is a revolving line, you can draw against as necessary. It is mostly used for short-term capital for funding unexpected expenses or improving cash flow. A business line of credit also helps you borrow money again after repaying a draw, thus allowing you to fund your cash flow needs. It is a great way to access cash that you can put into your business at a moment’s notice. When you pay down your business line of credit, you increase the amount available to you in the future unlike a working term capital loan. Drawing funds from an already established credit line is usually the fastest way for your business to access capital funds for quick payments or unexpected events.

Purpose

Unlike term loans which are used for a specific purpose and are lump sums of money on which you pay interest until the entire amount is settled, credit lines allow you access the funds as many times as you need. They are preferable for short-term funding needs. A business line of credit gives you more flexibility and could save you money if you have a constant financing need. Besides, an open line of credit account is a great way to build your business creditworthiness and the products are essentially the best solutions for short-term needs.

Sources and Funding

A business line of credit can be obtained from conventional lenders such as banks, credit unions or online lenders. It is important to understand your goals for the line of credit you go for. When determining what type of line of credit is best for you, consider the following: the amount you require, how soon you need the funds, if you’ve met the minimum qualifications required and if the costs will fit your budget. Normally banks will have higher qualifications requirements and some form of collateral will be needed, as opposed to online lenders who are more flexible and will approve companies once they have been in business for more than a year. Once you’ve established these, find out what to use the business line of credit for as illustrated wholesale trade lines.

Use

A business lines of credit is not intended for big capital purchases but rather for short-term working capital, unexpected costs, unique purchasing opportunities or offering credit to your customers. If not for these uses, then you will be costing your business a lot of unnecessary money.

Conclusion

A business line of credit can be an affordable solution for emergency funding or short-term working capital. To get the best rates and terms, plan your application well, provided you are using national banks or online lenders.