Things To Know When Applying For Small Business Loans In The UK

maxresdefaultBeing an entrepreneur is only 1% idea, most of what it takes is guts, hard work, precision and the drive to succeed, and of course, money. Loads of it. The odd thing is, many entrepreneurs are broke and need that money. That’s where small business loans come in. A small business loan is the boost you need to grow your business from the idea in your mind or on your books to the thriving business that smiles at the bank. Many small business owners often find it difficult to access loans in the UK because they do not know what to look out for when applying. This post talks about the things to know when applying for small business loans in the UK.

If you look like you need it, you won’t get it

Dressing like a slob to an interview is a sure way not to get the job. The same principle applies to getting a small business loan from the bank; if you dress like you need money, you most likely would not get it. You have to approach the process like you are applying for a job, get a good application, solid collateral and give a good presentation. No bank will reject you after all that.

Ask only for what you need

It is tempting to demand outrageous figures because, it’s not your money. Realize that the more you demand for, the more likely you are to get rejected. Find out exactly what your business needs and with facts, figures and charts to back it up, ask the bank for that exact figure.

Bad credit means rejection

If you have a history of bad credit, UK banks will not want to give you loans. Find a way to settle your bad credit before applying for a loan at most UK banks because chances are you will be rejected. However, if there is nothing you can do about the bad credit, you should know that several online sources often give loans out to individuals with bad credit and poor collateral. It is not always advisable to deal with them, but in a pinch, they could prove to be your last resource.

Face rejection squarely and move on

Finally, if you do get rejected by a bank loan official in the UK for any reason at all, it is not a time for you to be dejected or feel unsatisfied about yourself. Rather, look inwards and examine the loan application interview. Try and determine what went wrong in the interview, go back to your drawing board and try to refine it. Once you have done so, apply again. This time around you will be successful.

Without small business loans in the UK, numerous entrepreneurs and SMEs would be unable to survive. The government needs these small businesses to drive the economy and while they are poised to encourage banks to give loans to SMEs, understand that the loan process is not a charity or grant, and you will have to repay it. Don’t bite what you cannot chew.

4 Biggest Problems You Can Encounter If You Have A Bad Credit:

Bad credit is always a problem, especially when you need a loan. Most of the people are not aware of the effects that it can make on everything that is related to you and therefore, they are trapped into many biggest problems they don’t find the solution for. Therefore, it is best to know what bad credit is and how it affects everything. Here we are discussing the four most important problems that you can encounter with a very bad credit score. Therefore, let’s have a look at these problems and try to avoid the bad credit as much as you can.

  • You Will Not Be Able To Buy A Cell Phone: the major necessity in today’s world is the cell phone. Nothing is possible without it. But what if you are not able to buy a cell phone? Yes! This can happen to you when your credit card score is low. All the mobile companies now check these credit scores too. With a bad credit score, you can’t buy a phone on a contract basis rather you have to pay monthly for your phone, which is very much expensive that will cost you twice than your phone original price.
  • No Employment: this problem is emerging now with the passage of time. Most of the companies, especially the finance industries hire their employees after checking their credit history and obviously the ones with the best credit history are always considered first. Moreover, if you are already doing a good job, then the bad credit scores such as a high amount of debt and many other bills to be paid, can stake your job. You can be fired from your job with such negative actions. Your credit report is the most important thing to be kept clear.
  • You Can’t Start Your Own Business: this business starting directly links to the credit scores. Because to start any business, you need money or loan and these loans are not provided to anyone with the bad history. Even if you are getting the loans for people with bad credit, you will face some difficulties with it too. Because the lender will either charge you with more interest rates or you have to give something like your vehicle or your home against the money that you will receive the loans for the bad credit.
  • You Can’t Purchase Your Own Car: everyone knows that if you want to purchase a car, you must have a good credit score to show the bank that you are able to pay all the monthly payments for the car you are going to buy. And therefore, if you have bad credit score, you will not be able to buy your own car. But if you want to skip these credit checks and some companies are offering no credit check for the car, then you have to bear some other harsh consequences that are obviously the high-interest rates just like the lenders of the loans for the bad credit in the UK charge.

How to choose the best loan personal providers

Personal loan in Singapore is a popular option and mostly availed in the event of a personal emergency. Currently you can find several lender companies who are operating in the market to facilitate the individuals when they need money for their emergencies. Although all of them announce highly attractive offers for the clients, however it is very important to review certain attributes of the lender firms so as to find out that it will not create a greater trouble in future.

To choose a good lender for personal loan, following points should be kept in mind:

Loan procedure

The best loan providers in the market do not complicate the process; they provide loans through simplest procedures.   Myloan.sg is one of such financial institutions which offer the simplest procedure, without any complications.

APR for the loan amount

APR is the Annual Percentage Rate, which is set against the loan amount, which is an important indicator for finding out the best lender services for personal loan. If you avail personal loan at a higher APR, it may become difficult to repay such a high amount for a certain time. That is why it is important to look for a company which may lend you the money at a lower rate. Myloan offers personal loan at only 7.20% which is a notably affordable rate and is a very low price being paid to resolve a great problem on time.

Loan processing speed

Loan processing speed is an important factor to decide about the loan service. Usually most of the personal loans are availed for some emergency needs. If the loan processing speed is not at a satisfactory level of speed, the amount will be useless if it could not help at the time when it was required. Myloan completes the entire process within minutes which ensures its worth as the best service.

Service charges

Before availing a personal loan, you need to check if there are no hidden charges and everything is clear and transparent. The lender must state about the service charges and other percentage rates which should be agreed upon, when the loan is approved. If the company is credible, it would not apply any hidden charges. For example   Myloan has applied an APR of 7.20%, no matter which lender has been linked with the borrower. The company has a standard policy which has to be followed by all the lenders on the list.

Flexibility options

A person might need an amount depending on the need and also the installment to be paid which depends upon the No. of months covering the loan period. the borrower must have an option for the amount as well as for the months to choose between and decide upon the final payable amount and the installment amount. It should not be a one sided decision, decided by the lender and been imposed upon the borrower.   Myloan.sg offers great flexibility in amount from $1,000 to $100,000 and period from 1-7 years, which allows the clients to develop a customized plan as it suits them.

Logbook Loans Hull

The logbook loan may actually easy to get, since it is important to secure a loan in which you can get related the car logbook. The logbook loan is actually growing and becoming famous. It is collecting a good feedback among those with bad credit, since the logbook loans do not ask for a credit check to those who are interested. There are number of people with poor credit history, this is because they cannot get the loan elsewhere. If you are in need of money, they can actually get the help coming from the logbook loans, which is also safe and secure. This is one of the best solutions for those who would like to get a loan. It is truly good news to someone who do not possess a good credit history, since now you can also take the personal loan with a minimum interest rate. You must know that the interest rate with the logbook loans are quite low since the lender will keep the logbook to serve as a security as per the secured loan rules over. The rate of the interest they will arrange for the amount you will loan is quite low.

A logbook has an important information about the vehicle you own and just about you, especially if you are the owner of the vehicle. It is essential to know more about the logbook loans hull. The logbook is composed of the information about the engine number of the car, VIN number, model number of the car, chassis number, color of the car, model number and other important information. The logbook loans is typically given to those who are in need of money and those who have a car under his/her name. The money lender will keep the logbook which you will give him/her as a collateral for the money you would want to borrow. You need to surrender the legal ownership to the lender, since you will apply for the loan along with the car. But you will be able to use the car even without the logbook as you used it in the past, since the lender will not handle the car other than the logbook only.

It is nice to know that people with a bad credit to enjoy a logbook loan, since it will not check the credit of the borrower and the primary concern of the lender will be if the person who will apply for the loan is the rightful owner of the car. If you have the car under your name, you will be qualified, but that must be more than 8 years old and you should be a permanent resident of the UK, then you will be legible to get the personal loan by submitting the car logbook as the security to your money lender. You can actually get the logbook loans coming from different places and that includes the websites of the loan lenders. You can also apply through the internet if you will qualify for the criteria cited. If you will apply for the loan online, you just need to fill out a form and then be verified by the lender, through it you will know if you are qualified or not.

Why should you get a Bad Credit Loan?

The bad credit loan is made especially for people who have bad credit ratings. So if you are one of them, you need this kind of loan. This kind of loan is made because there are a growing number of people who need financial help through the form of a loan. Since they are not able to get the loan with some lending companies because of their bad credit rating history, this bad credit loan is for them. However, not all people are eligible to get this kind of loan, although you can try processing your application online. Through this loan company websites, you can process your application faster and easier and you will also get results immediately. Some even get their money in just as fast as 24 hours.

Bad credit loans may be a good choice for you, especially if you need a higher amount of money that some high street lenders will not be able to give you. Usually, with bad credit loans, they offer higher sum amounts compared to other kinds of loans. However, although it is easy for you to apply and get accepted, you need to prove that you will be able to deal with your repayments successful because if not, you might risk losing your properties and you can also get a worse credit rating which will affect your future credit application. Usually, bad credit loans offer to let people borrow £1,500 and above. This will be a great help for those people who need this amount of money, and are not able to get one with other lending companies.

Bad Credit Loan is also a good first step to be able to improve your bad credit rating history. This is because when you are able to pay your repayments as early as possible or on time, you will be given lower interest rates and then you can pay for it more conveniently. Once you have been approved of your application with bad credit loan, you need to do well in your repayments. This will greatly affect not only your rating but also your properties, if you are in a secured loan. It is important also to check your credit rating performance to know if it continues to improve with each monthly repayment you do.

When you do well in your rating, it will reflect a positive value on it so it will get your credit rating back on its right track. There are many kinds of bad credit loan, so you need to choose wisely which one of them will be the perfect kind of loan intended for you. There are the guarantor loans, logbook loan, to name a few, which are unsecured and secured loans, respectively. You can have a double purpose when getting a loan which is to be able to borrow money, and also improve your credit rating performance so you need to do it wisely. Check CreditPoor for details to know more about bad credit loans available for you.

How can a guarantor loan help you in time of emergency?

In a perfect world, everyone would definitely try to meet the demands of a lender while applying for a mortgage; but in reality what happens is, due to extreme financial stress, a lot of people are not able to meet up the repayment. And also in certain situations, different applicants have a minor blemish within the credit records which prevent them from attaining a loan. Now the fact with the guarantor loans is you shall be able to attain the loans irrespective of your bad credit, if you are able to find a guarantor. Then the lenders, instead of barring them from getting credit, offer the responsibility to the guarantor for the debt if the borrower is not able to meet the demands.

This does not necessarily mean the total credit responsibility is provided to the guarantor. This will show in the credit records of only the borrower, while the guarantor will help the borrower with the remaining amount to be repaid after the stipulated period of time. At guarantorlender.com, we understand your emergency at different situations, and thus our customer care executives are present throughout the day and night to offer you a complete list of different lenders who are willing to offer you loans. All you need to do is use the guarantor calculator, where you will need to give us the details of how much amount you need and the time period you need the amount for. After you fill up the boxes, you need to click on “get results”. This will show you the number of available lenders who can help you in your emergency.

When it comes to help our customers, we believe in an open policy. Our company does not charge any hidden fees; you only need to make the payment for the list of lenders or make purchase of the guarantor calculator application for availing the list. There are certain misconceptions regarding a guarantor along with a co-signer. Now, you need to know that a guarantor is not same as the co-signer. The guarantor does not have the duties and rights of the co-signer. The co-signer has the duty of signing all the documents associated with the loan, on the contrary, the guarantor works only behind the scenes.

He/she offers the lender with a back up of money or any other support in case the borrower is not able to provide the complete repayment to the lender. If the original borrower makes a default, the guarantor does not have any claim on the property. While the co-signer will have a complete claim and retain the property after repaying the amount. In case you did not know, the guarantor loans do have a low rate of interest if borrowed online and in some situations our lenders are considerable enough to extend the time period to offer a little more help to you in completing the loan if you could not make it exactly within the stipulated period.

Guidance on IVA’s

A flexible and contractual arrangement like that of an individual is usually referred to as IVA. It may be separately or in combination based on income, payments of a third party or capital.

While dealing with all this, if the debtor is still left with enough money even after some mandatory expenses, he is the one to arrange IVA (Individual Voluntary arrangement). Debtors who are facing very little serious issues may plan to full fill debt management but after taking a separate advice.

Company Voluntary arrangement is usually referred as an analogous for planning for a business.

The Roles of Insolvency Practitioner:-

An IVA can only be administrated by a licensed insolvency practitioner. The role of insolvency practitioner changes at each level of IVA process.

Adviser:-

An adviser should not be insolvency practitioner, but it often happens. The adviser has to tell and deliver all the best solutions available to the debtor. In this case, you should firstly deal with the priority debts such as remortgage, build up all debts in the form of a loan, managing debt, bankruptcy, a Bank Relief Order and IVA. The adviser should also keep an eye on the situations facing by debtors, like what the debtor own and owe, his total income and expenses in the household. Keeping in mind all these things Adviser advises the best solution. Against his debt advice, he takes a charge fee. He also does all this on a charity basis.

Nominee:-

If an IVA is considered correct, then the insolvency practitioner will become the nominee and plays all his/her roles. There is a huge misconception that the nominee also works as an adviser on drafting a suggestion to creditors. This fact is totally wrong, but the real fact is it is the adviser’s task and he/she may not belong to the firm of a nominee. The nominee’s work is to re-examine the proposal and gives a report on it.

Usually, the proposal is the specific document which is adjusted on the basis of every debtor’s specific circumstances. There are some unique terms which are included in every proposal:

The 1st thing is Interpretation of the debtor’s income and the 2nd one is expenditures of the debtor. Now after this the remaining amount from all the expenditures left is paid to the IVA, usually monthly. The time duration of IVA has no limit, but it has generally the length of five years. Payment to IVA enhances with the increment in disposable income uniformly.

Chairman:-

Chairman works as a negotiator between the debtor and creditors. He requests the debtor and creditor to confirm the proposal. All this is done by the meeting calls by the chairman. At the meeting, creditor often demands the innovation in the proposal. Some common and notable innovations in the proposal are to put some allegations to the debtors such as: Debtor should restricted to get loan, the proprietor cancels the IVA if the debtor crashes to pay 3 or more payments, in this regard petitions and cases will be file against debtor. If earning of debtor increases the number of payments will also enhance with the same ratio. The Creditor also particularly discusses the least return such as 40 pence from a single pound.

Supervisor:-

The insolvency practitioner works as a supervisor and also named The Supervisor, with a condition of approving IVA. Supervisor monitors that if the debtor is following the terms and conditions described in the proposal. He listens to the creditor’s issues and claims, makes payment to the creditor and also assures creditor that all things are going with the accordance of terms & conditions of the proposal. Another important duty of supervisor is to report annually, to court, to debtors and creditors. The debtor should obey the acceptable demands of the supervisor and to provide bank statements, wage slips, accounts details etc. periodically.

What is an Individual Voluntary Arrangement Scheme?

Screen Shot 2015-06-12 at 21.41.41An Individual Voluntary Agreement (almost always referred to as an IVA) is a contract, or a formal and legally binding contract, between you and your creditors in which you pay back what you are obligated to pay over an agreed upon amount of time.

This, of course, is what your original contracts or agreements were when you first signed up for the loans, credit cards and store credits, but obviously things have changed for you since the time you obtained those forms of credit. You are now inundated with debt and find it extremely difficult to pay back according to those contracts or agreements.

In other words, an IVA is an option (and there are others) that is a recognized, formal and legal solution to your debts. It is something that is approved by the court and your creditors must adhere to it. Of course, this means that you also have to follow the letter of the contract. If you do not, or cannot, then your insolvency practitioner will inform you of the ramifications of it.

The IVA is created by an insolvency practitioner because an IVA is a form of insolvency, although it is different from bankruptcy. The insolvency practitioner (IP) is a lawyer or accountant, and will charge a fee for creating and administrating the IVA. Common fees are about £5,000. This may seem to be a great amount–and it is–but if you owe £15,000 then the amount of interest (or, more accurately finance charges) that you will pay on that amount over five years (the typical period of time for an IVA) will be far more than that fee. In other words, it is far better to pay £5,000 than it is to pay £8,000.

Your IP should be able to calculate how much money you can save in terms of costs (fees versus finance charges). Even in the unlikely event that you save little or nothing with an IVA, then an IVA could still be worthwhile as you will no longer receive harassing phone calls and letters from your creditors, and an IVA is almost always a far superior alternative to insolvency than is bankruptcy.

The IP will work with you in creating a mutually agreeable repayment plan for the IVA. This plan is then put forward to your creditors. Once they agree to the plan then it becomes a contract or binding agreement, and you will agree to repay a set amount each month. Historically, the term of the IVA was 3-4 years; now, the typical term is 5 years.

The payments that you make will be to the IP, not to the creditors; who will then allocate the money to your creditors. In other words, your IP is an intermediary and once the agreement is in place, you will no longer received calls, letters, emails or messages from your creditors.

The IP may retain a portion of your monthly payment for his or her fees. If so then that ought to be disclosed to you at the beginning. Ask for that information, and ask for any other costs and fees of the IVA, as well as the benefits (financial and otherwise) and drawbacks to the IVA. If you owe a relatively small amount (such as £3,000) then the above-mentioned fee of £5,000 ought to be lower, but it may still be high in relation to what you owe.

It is extremely important to remember that an IVA is simply one option, and that your IP can offer other choices. In this sense, think of your IP as you do of your doctor. If you are involved in an accident then surgery is most likely your best option, but you still need to find out and weigh the other options that you may have.

Again, you will pay to the IP a set amount each month for a set amount of time, who will then distribute the relevant amounts amongst your creditors. If the agreement is for you to pay £200 each month for 5 years then you will have paid a total of £12,000. If you had owed £15,000 then that means £3,000 (possibly more, depending upon whether or not your IP retains a portion each month for various costs and fees) will have been written off and which you do not have to pay back.

You creditors are aware of this, and it is usually to their benefit to accept this. This can be better understood by reversing the situation. If someone else owed you £15,000 then you may not be completely happy if that person paid back just £12,000 but you will still be happier than if that person did not pay you back at all. Your creditors feel the same way. Your IP will advise you if and how much this can be realized in your situation.

Again, an IVA is one option for insolvency, and it is usually the best option for those who are faced with overwhelming debt. However, it is not an option for some people. Not everyone can qualify for and obtain an IVA. There are some criteria for an IVA. The debts themselves need to qualify. In the agreement, you can almost always include credit card, personal (unsecured or signature) loans, store cards as well as tax debts, electricity and gas debts, and council tax arrears. However, mortgage loans, secured loans, jointly-held obligations and rent are generally not accepted in an IVA.  You cannot include student loans, child support arrears, maintenance arrears which have been court-ordered, and magistrates’ court fines.

The amount of debt ought to be at least £10,000 and include at least three obligations from at least two creditors. You personally need to show that you have at least £100 in spare income each month, and have a regular and predictable source of income or revenue. If you have assets, such as a home, then you may be requested to refinance or remortgage any loan and/or take out some equity from your home. Your IP will inform you how and what to do in your situation, and provide you an IVA debt helpline number in case things change once again for you.

We hope that this information has proven useful and helpful to you. To derive more use and help, contact us at IVA Pros.