Accessing $50,000+ in 0% or Low-Interest Funding: A Comprehensive Guide

Securing funding for personal or business needs can be challenging, especially with high-interest rates or poor credit. However, opportunities exist to access $50,000 or more at 0% or low-interest rates, even for those with bad credit or new businesses. This guide explores strategies such as EIN-based funding, LLC and corporate structures, credit repair coaching, startup credit building, unsecured lines of credit, and personal business loans.

1. Understanding 0% or Low-Interest Funding

Zero or low-interest funding provides capital without the burden of high repayment costs. These options are ideal for startups, small businesses, or individuals looking to expand, consolidate debt, or cover unexpected expenses. Common sources include:

- Promotional 0% APR credit cards – Short-term financing with no interest for 12-18 months. - Nonprofit and government grants – Free funding for qualifying businesses or individuals. - Private investor loans – Low-interest loans from angel investors or peer-to-peer lenders.

To qualify, applicants must demonstrate financial responsibility, a viable business plan, or collateral in some cases.

2. Using an EIN to Secure Business Funding

An Employer Identification Number (EIN) is a tax ID for businesses, allowing them to build credit separately from personal credit. Steps to leverage an EIN for funding:

1. Register an EIN – Obtain one for free from the IRS. 2. Establish business credit – Open accounts with vendors reporting to business credit bureaus (Dun & Bradstreet, Experian Business). 3. Apply for business credit cards or loans – Use the EIN to access financing without personal guarantees.

This method helps protect personal credit while securing capital for business growth.

3. Choosing the Right Business Structure: LLC, C-Corp, or S-Corp

The business entity type impacts funding eligibility and interest rates:

- LLC (Limited Liability Company) – Flexible structure with pass-through taxation; ideal for small businesses seeking unsecured loans. - C-Corporation – Best for raising capital through investors or stock sales; may qualify for larger loans. - S-Corporation – Combines LLC flexibility with corporate tax benefits; suitable for small to mid-sized businesses.

Each structure has unique advantages, so consult a legal or financial advisor to determine the best fit.

4. Bad Credit Repair Coaching for Funding Approval

Poor credit limits funding options, but credit repair coaching can help improve scores and approval odds. Key steps include:

- Reviewing credit reports – Dispute inaccuracies with credit bureaus. - Paying down high balances – Keep credit utilization below 30%. - Adding positive accounts – Become an authorized user or secure a secured credit card.

Credit repair specialists guide clients through these steps, often helping raise scores by 100+ points within months.

5. Startup Credit Building for Immediate Funding Access

New businesses without credit history can still secure funding by:

- Opening a business bank account – Establishes financial legitimacy. - Applying for a secured business credit card – Requires a deposit but reports to credit bureaus. - Working with net-30 vendors – Suppliers that extend credit and report payments.

Building business credit early ensures eligibility for larger loans and better terms in the future.

6. Unsecured Lines of Credit for Flexible Financing

Unsecured lines of credit provide revolving funds without collateral. Benefits include:

- No asset risk – Approval is based on creditworthiness, not collateral. - Flexible usage – Funds can be used for payroll, inventory, or emergencies. - Interest-only payments – Some lenders offer low introductory rates.

To qualify, businesses need strong revenue history or high personal credit scores (680+).

7. Personal and Business Loans with Competitive Rates

Traditional term loans or alternative lenders offer personal and business loans with competitive rates. Options include:

- SBA loans – Government-backed loans with rates as low as 6-8%. - Online lenders – Fast approval for borrowers with 600+ credit scores. - Credit union loans – Lower rates for members with established relationships.

Compare lenders to find the best APR and repayment terms.

8. Combining Strategies for Maximum Funding

Layering multiple funding methods increases capital access:

1. Use an EIN to establish business credit. 2. Repair personal credit for better approval odds. 3. Apply for unsecured credit lines and low-interest loans.

This approach ensures diversified funding streams while minimizing interest costs.

Final Thoughts

Accessing $50,000 or more at 0% or low interest requires strategic planning, whether through business credit building, credit repair, or leveraging the right loan products. By understanding these options and taking proactive steps, individuals and businesses can secure the funding they need without excessive financial strain. Research lenders, improve creditworthiness, and consult financial experts to maximize success in obtaining affordable capital.

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Commercial Construction Loan Financing

Many brokers will encounter clients who require construction loan financing, some more than others. Commercial construction loan financing is usually required by developers and investors who purchase land that they would like to develop or are purchasing fully developed land in the form of a single or several ready to build lots. Land with an existing home or structure on it is most often referred to as "infill construction". In the event that a builder is simply improving an existing structure including for example a top up (second storey) or remodelling, we refer to this type of construction as a renovation. All of these examples most often require construction funding and apply to either residential or commercial real estate.

There are several different types of construction loans. When a builder or developer acquires land for development they will seek out a land loan often combined with a facility for land development. The land loan serves to close the land purchase while the development loan serves to fund the planning and development of the land so as to improve it for greater use such as residential or commercial zoning from agricultural for example. Following the acquisition and initial development a developer or builder will require financing to service the land which includes the installation of sewer, water and hydro and will require a land servicing loan. The next round of financing is usually to a builder unless the builder and the developer are one and the same. The builder will require a construction loan to build either a residential or commercial building.

Here are some quick tips you may want to keep in mind if you are representing a client who requires development or construction loan financing.

Lenders who offer construction loan financing will always hold back 10% from every advance in accordance with the Construction Liens Act save and except an advance on land. Borrowers need to be made aware of this for budgeting purposes at the outset to ensure that there is no confusion in the future.

It is important that your client has a good budget that includes a detailed breakdown of hard and soft costs and includes the interest reserve in the soft costs.

Be prepared to use a quantity surveyor whose job will be to approve the budget on behalf of the lenders and provide reports on progress of construction to the lender that certifies every advance in accordance with the budget. For smaller residential construction loans some lenders will use an appraiser to report on progress.

In almost all cases, lenders will lend construction loans on a "cost to complete" basis. This means that the funding program will be advanced in progress draws and will also be subject to 10% holdbacks in accordance with the Construction Liens Act as previously mentioned. This ensures that there is always enough money in the remaining budget to complete the project.

The presence of a first mortgage that was obtained for construction purposes can create a challenge if your client plans to obtain second mortgage financing as the second mortgage lender would be required to postpone every advance under the first mortgage or construction loan that has priority on title.

Offering commercial construction loans can be very lucrative for a mortgage broker or agent. An opportunity to arrange this financing is an excellent opportunity to learn about how you can diversify the range of products you are able to offer to your clients. Either co-brokering the deal through an experienced broker who specializes in construction financing or working with a construction loan financing lender who is willing to educate you and walk you through a project is a great way to gain experience and to be able to offer this type of financing to your clients.

David Mandel is the Principal Broker and Founder of First Equity Financial Group that specializes in first and second residential mortgages as well as construction loan and commercial financing. To contact Dave call 888-455-5774 or visit www.firstequity.ca.

Why Startups Need Crowd funding?

As a business owner, capital is one of the most important requirements. Getting capital to start a business can be a very daunting task. Though there are many options to get the cash. Most of them req...

As a business owner, capital is one of the most important requirements. Getting capital to start a business can be a very daunting task. Though there are many options to get the cash. Most of them require some guarantee in return. Crowd funding is one of the best ways to get capital. Crowd funding in simple terms is a means that allows people to get Online fundraising for their projects by use of the internet. This is among the many reasons why each and every business needs crowd funding in the first place. Some of the other reasons include;

Feedback- Crowd funding exposes the business to the entire world. Once there is visibility, you are guaranteed some form of feedback. The feedback is most often very insightful. You will get wonderful ideas on how you can better yourself.

Exposure- This is one of the best ways to let the whole world know about the project. You will have a higher chance of getting partners and investors that will scale you to higher levels. It is a great way to sell ideas. You can decide to sell your ideas instead of going ahead with it.

Acquisition of customers- Since the business will be exposed to the entire world, you will have more customers. It is a good way of creating visibility for the business.

Testing- It is a good way of testing out the business. You will get to know how your market will be before you go full scale. Most people who have used this means to determine the validity of the business have never been let down. The business market place is a very tricky place that you need to go with all knowledge of what to expect. This is a good way of getting to know that.

Formation of partnership- This is a very good way of finding prospective partners for the business. When you expose the business to the world, people will most likely show interest.

Accelerated growth- Crowd funding is a very good way of speeding up the business growth. This is because not only will the customers be aware of what you have to offer but you may even get the best partners. Once you are aware of what the customers want, you will know what is most likely to move fast. This will help the business scale the heights of success in no time.

Fresh ideas- from this, you can get some of the best ideas to improve the business. There are people out there with some of the fresh ideas. You can use this as a means to interact with them and better your business.

There are some of the many reasons why Crowd funding is the best way to go. The only thing you have to do is make sure to go to the right place for crowd funding. This is most definitely the best place for you to get these services from. We will help you scale to heights of success when you let us handle your Crowd Funding needs.

Starting a Small Business With No Startup Capital

Business start up costs are one of the hurdles facing any would be entrepreneur. In this article I show you how to set up a business with practically no start up costs and no capital.

Your business start up costs will be minimal to non existent if you follow the following steps and thread in the footsteps of those entrepreneurs who relied on nothing else but their wit and hard work.

You can easily start your own business by setting up an online business. The easiest way to do this is through affiliate marketing which basically involves getting paid a commission for selling other peoples products.

To find a program that you would be interested in being involved in, perhaps an area that you have expertise or experience in, simply type in ‘affiliate golf’ in the Google search engine and it will throw up all types of affiliate programs related to golf. Obviously you can do this for any area of interest.

You promote your affiliate offers on your blog or website and generate traffic through article marketing. If you don’t want to spend the $50 or so required to set up your own piece of internet real estate you can still get started by setting up a free blog at Wordpress.com, Blogger.com, Squidoo or Hubpages.

Your own hard work and ingenuity will be all the capital you will need..but you will need to spend time promoting your blog and generating traffic but with a lot of information for free on the internet you can get started very quickly and soon scale up to multiple blogs for different markets.

The only constraint on your success is your own commitment to your business and ensuring that you churn out informative interesting content in your articles which must be focused around keywords or keyphrases for which you can be competitive.

In summaryFind Article, a little imagination and energy will allow you to start your own home business with little or no capital. It will however require that you invest your time in building your business because when starting any business you do have to invest either time or capital in building anything of value.

Bad Credit Loans For Entrepreneurs

Those who have gone through difficult financial situations due to loosing their job and as a result have bad credit, can find it really difficult to obtain financing. Many would like to start their own business to generate income but their credit score prevents them from obtaining finance. Fortunately, there are bad credit loans for entrepreneurs that can provide the funds necessary for financing the set up of a business project regardless of the applicant’s credit.

These loans are of course not accessible to everyone. There are some requirements that need to be met but with the proper aid almost anyone can get these loans for entrepreneurs with bad credit. Though having sufficient equity can make things a lot easier, there are also bad credit unsecured loans for entrepreneurs. Those loans that are subsidized by the government can be approved easily if you can present a feasible business project that raises interest of the agency subsidizing the funds. But if you do not qualify for such funding, you can still obtain funds with the aid of a co-signer. Let’s analyze the different possibilities:

Bad Credit Loans For Entrepreneurs Based On Equity

Entrepreneurs loans based on equity are loans that bypass bad credit restrictions by using the equity available on a property to secure the loan. These loans provide high loan amounts that can easily be used for starting a business but there are also lines of credit based on equity that provide a lot more flexibility in terms of repayment.

Also, these loans have very advantageous terms offering more money than regular loans, cheaper financing (bottom low interest rates), and longer repayment programs if you need them. The only drawback is that by applying and getting approved you are risking your property if you fail to make your loan payments on time. The chances of repossession to occur are higher and thus, these loans should be always paid on time.

Availability of Subsidized Loans for Entrepreneurs

Both the government and some non profit institutions are interested in promoting certain business fields. If you are planning to work on one of those fields, you may be eligible for subsidized loans which offer financing at a very interesting interest rate that can be easily as low as half of the regular rate for business loans and also very flexible repayment schedules so the repayment of the loan can be extended over longer periods of time with resulting lower payments.

In order to know which kind of fields are included in these programs, you need to search the internet for lenders offering this loan type along with instructions on how to obtain the subsidy for any particular agency or non-profit institution. Having bad credit will not be such a big issue if you can qualify for one of these loans.

Regular Business Entrepreneur Loans for Those With Bad Credit

Common business loans are also available to get the finance you need to start your business. However, the credit requirements for approval may prevent someone with bad credit from obtaining finance. To solve this issue and obtain your business loan or entrepreneur loan even with bad credit, you can apply with the aid of a co-signer that features a good credit score. That way, your credit report will not weight that much when it comes to making a decision.

How Banks Assess Your Risk Level

While the media talks about the lack of credit that’s available for small businesses it is important to realize that banks and lenders do want to make loans. They are in the business to lend money because that’s how they make money. The risk involved is minimized depending on factors related to the company’s sales revenues, credit standing, years in business, etc. However, due to the recent economic downturn, certain risks that banks and lenders were once willing to accept are no longer acceptable. This doesn’t necessarily mean that there is no money to lend it simply means that the standards have changed.

Less risk means lower rates and returns for the banks, but in this economy it is all about minimizing risk and exposure. Banks and lenders are more focused on lending to creditworthy businesses at a lower rate, rather than a riskier business at a higher rate, simply because of the state of the economy. The lending parameters of major banks are driven more by economic climate than anything else. For example, if the economy was booming than banks would be willing to take on much more riskier loans simply because the economy is in a healthy state. So what can you do to be considered as a low risk so your business can qualify for a loan or line of credit? Each of these areas plays an important role for lenders when determining your risk level: Capacity – This is an evaluation of your ability to repay a loan or line of credit.

This includes cash flow, payment history, and additional cash sources. The best way to show your capacity is with favorable business credit scores, a solid bank rating (minimum of a low 5), a well designed business plan and/or prior year(s) financials that show you can produce enough cash to repay the loan. Capital – Typically, a company's owner must have his own funds invested and at risk in the company before a financial institution will be willing to risk their own investment. How much skin you have in the game is very important and can make the difference between an approval and denial. Collateral – Commercial real estate, heavy machinery, business equipment, inventory, stocks and bonds, and other expensive business assets that can be sold if a business fails to repay the loan are considered collateral.

Conditions– Be prepared to prove that the conditions are right for your business. Make sure there is market potential, an industry, positioning, competitiveness, and experience to back up your plan. Character –Lenders have to believe that a business owner is a reliable individual who can be depended on to repay the loan. Some areas they look into include personal credit ratings, education, and work experience. When applying for financing, don't forget the importance of personal relationships. Apply for a loan or a line of credit at a bank where you already have a positive business relationship. Also, make an attempt to meet with the person who will be evaluating your application, such as a bank's lending officer, rather than the teller who handles your day-to-day banking transactions. The less risk you pose to a bank or lender the greater the chance you have for securing the financing you need at the best interest rates possible.

Secondary Public Offering - Raise Working Capital!

Secondary public offering is an excellent method for a company to raise additional working capital.

Secondary public offering financial moves are an excellent way to generate quick capital for a business. This is the sale of all or most of the securities by the top stock holders of a particular company. The proceeds from the sales benefit the company. Often times the company itself owns most of its own stock.

A secondary public offering falls under the SEC guidelines, so it is recommended that they should be conducted through a registered broker dealer or an investment bank. This will help your business avoid any liability.

There are two main types of secondary public offerings they include an issuer offering (the company selling its additional shares) and an offer for sale by another investor (private shareholder). The first option, issuer offering, is the best method for raising capital.

Besides a secondary public offering a more common approach to raising capital is through a standard business loan. Not all businesses have shares available for sale so more traditional financing options may be a better option for you. Make sure you are working towards establishing business credit scores as these will be looked at by lenders to determine the creditworthiness of your business. These can be established by taking out small lines of credit and loans from places that report your payment history to the Small Business Financial Exchange.

How To Get Business Lines Of Credit

How Many Lines of Credit Should My Business Have?

A question many new business owners as is how many business credit cards, vendor accounts and other forms of credit should my business have. The answer depends a lot on the needs of the business, but from the standpoint of good business fundability there is a definitive answer. Banks have a minimum that they look for when considering any business for a traditional loan. They want to see at least 3 vendor accounts and 4 to 5 credit card accounts in the business' name.

What's in a Name on a Credit Card?

A bank may use your personal credit to provide backing for a business loan if you chose to go that route. It is not advisable to use your personal credit, however, even if it is in good shape. There's too much at risk. Even if your business continues to do well and you can make all the loan payments on time you still lower your own personal available credit. If you need something important for yourself or your family you may not be able to get a loan because you have too much personal debt from a business loan.

In order to establish business fundability you need to have credit accounts in the name of your business, not your own name.

The Difference Between Vendor Accounts and Credit Cards

There may not seem to be much difference on the surface. Both vendor accounts and credit card accounts give you a stipulated amount of credit to spend. You can use them to get supplies for your business, and also build your company's credit score. Both report to the various business credit reporting agencies. Vendor accounts are different from credit cards, because they can only be used at the particular store/company. A credit card can be used at any location that accepts that form of credit.

Credit cards are more powerful in general, and often offer perks on top of the ability to buy items or services. They are also more difficult to obtain, though, and like a bank loan will usually require the business to already have a decent credit score. That's one reason vendor accounts are so helpful in building corporate credit and improving business fundability.

Small Business Loans - Initiates a Good Start For Your Business

To be a successful entrepreneur, it is a must to have the requisite support of money. It is not a matter of concern what is the size and nature of business you are dealing. Finance plays a very important role as it assists you to accomplish your goals. Whenever starting a new business or refinancing the existing one, it is the flow of finance which determines the success of business. In this regard, you can consider small business loans which provide the necessary monetary assistance. These loans are very easily accessible and can be used for a number of purposes.

With these loans, you have the finances which enable you to take care of the various demands. You can utilize the amount for installing machinery and tools, purchasing raw materials, arranging transportation of finished products, paying wages and salary, purchasing plot, clearing unpaid debts and so on.

These loans can be availed in two forms of secured and unsecured. Secured form of the loans offers a bigger amount at comparatively low interest rate. But to avail this loan option, you have to pledge one of your valuable assets as collateral. It is the equity value present in the collateral which helps you access a bigger amount

On the other hand, unsecured form of the loans can be obtained without pledging any collateral. This loan option is totally risk free and is beneficial to meet small needs. The amount offered is limited and is offered with a high rate of interest. Those with imperfect credit history such as CCJs, IVA, arrears, defaults, non repayment etc can also avail these loans. However the interest rates levied will be slightly higher.

Before availing the loans, you must prepare a loan proposal which clearly outlines where and how the amount will be utilized and repaid. A good business plan will help you obtain the loans instantly. You should also provide the business related documents with the loan proposal.

Small business loans are offered by most of the lenders based in the financial market. However to get the best deals, you should prefer applying online. By collating and comparing the rate quotes of various lenders, you can select a suitable deal. Thus with these loans, you are not required to worry about arranging finances to take care of your business needs

Beginning Steps of Business Credit Building

Building credit for your business can be daunting if you are unfamiliar with the process. The absolute first thing you'll have to do is have a business. A corporation or LLC should be fine to start building business credit. The state where you incorporate is not very important for the credit side of things.

Once your business is setup you will need to make sure it is listed in 411. When you submit applications for credit many companies will search for your business in a 411 listing to verify the phone number on your application. Some companies use Google Voice and submit the number to several 411 services themselves.

Business credit bureaus collect information and report it to businesses that subscribe to their service. There are 3 major business credit bureaus: Experian, Equifax, and Dun & Bradstreet. Some creditors report to Experian only, some report to D&B only, but the ones that help you the most will report to Equifax, Experian, AND D&B, giving you a tradelines on all the major business credit bureaus.

Net 30 accounts mean you have 30 days to pay the invoice after purchase. A few of the net30 credit companies might require you to place 1-2 orders where you pay-in-full upfront before they will give you net30 billing. Net30 creditors include phone companies, gas cards, and office supply stores.

Your business will need 4-5 tradelines reporting in your credit file to start applying for the next level of non-PG credit - retail revolving credit accounts. Wait a month or two after paying before you can expect the net30′s to report. Even if you get in on net30 terms pay before the due date. This will be a positive factor for your business.

Some net30 accounts are easier than others but once you get that first one reporting things should fall in line. If you need business cell phones this can be an easy way of getting net30 tradelines reporting. The higher the balance of your net30 order the better. When ordering you can ask if there a minimum dollar amount before they will report to credit bureaus. Your high balance is usually reported and creditors like to see high paid balances if they are going to offer you a high credit limit.

Now you need to spend some time building your credit file and get those net30 accounts reporting. It may take a few months to get but once that happens a lot of the hard work is over.

Letter Of Credit Financing

The example involves a grain trader in Minnesota, who buys a shipment of grain from a producer and who plans to then resell the same grain to a buyer in the Middle East.

The example involves a grain trader in Minnesota, who buys a shipment of grain from a producer and who plans to then resell the same grain to a buyer in the Middle East. Using what is called the "warehouse receipts financing" method, the Minnesota trader acquires the grain and "deposits" it in a recognized public warehouse and, in return, receives a warehouse receipt, identifying - among other things - the type of grain, its quality, the quantity, and the date it was received into the warehouse.

The trader takes this warehouse receipt to his/her bank as evidence of his ownership and assuming everything is in order, the bank will then extend a loan to the trader a loan based on the estimated market value of the grain, less some percentage amount (sometimes called a “haircut”). The trader then contacts the buyer in the Middle East, who agrees to buy the goods in the public warehouse from the seller in Minnesota.

The L/C mechanism in this case is as follows:-1. The sales contract between the Minnesota seller and the Middle East buyer is agreed and both sides agree to do business on an L/C basis.

2. The buyer requests his/her bank to issue an L/C. This bank is the issuing bank. The L/C specifies that the seller must present certain documents to the bank before receiving payment and in this case the primary documentary requirement is the warehouse receipt.

3. The issuing bank notifies the seller through the correspondent bank (notifying bank ) by SWIFT and then sends the original L/C to the seller.

4. The seller presents his bank with a bill of exchange (draft) based on the conditions of the L/C together with the warehouse receipt and he/she applies for negotiation.

5. The seller’s bank checks the conditions of L/C and the warehouse receipt document. If the conditions of the L/C are found to be consistent with the documents, the seller’s bank pays the seller. However, the seller has to be very careful as the bank is not able to honour the bill of exchange if there is any discrepancy between the conditions of the L/C and the documents provided by the seller. If a discrepancy occurs, the seller has to inform the buyer and have him request the issuing bank for an amendment to the L/C accordingly.

The rules for letter of credit transactions are comprehensively dealt with under the International Chamber of Commerce (ICC) rules called “UCP 600”, which were updated this year.

Getting More Working Capital for Your Business

Lanette Tucker has been with Paragon Financial for 2 years and knows all things factoring.   Paragon Financial was founded in 1994 with the initiative to afford growing businesses an alternative to conventional bank financing. When banks either couldn't grant funds or bestowed too little, Paragon could promptly offer them a steady stream of cash through the factoring of their account receivables.

A common scenario today in business is having a low credit line from your bank.  Lets say you have a $50,000 dollar line of credit with your bank.  You have a long-standing, excellent relationship with your bank but in today's economy it is simply just not enough.   Your credit line is maxed out and the true need of your business is financing of $200,000 or $300,000 dollars to keep your business growing.  What can you do in this situation?  Your business has good credit, the orders are coming in and you are growing at a steady pace.  The only way to take your business to the next level is to secure that much larger line of credit.  What is the solution?

Your business can leverage against your receivables through invoice factoring or purchase order financing through a factoring company.  An experienced factor can work directly with your bank on a subordination agreement allowing you to leverage receivables financing to get the working capital you need to grow your business.

First, what is bank subordination?   A subordination is when a 2nd lender, in this case the factor, asks the 1st lender, the bank, if they will allow the business to take on an additional lender.   Bank subordination agreements are commonly done when leveraging accounts receivable and purchase orders. The accounts receivable or PO's are assets that are used to secure a working capital line of credit.   One of the most common ways lenders will work with each other is through subordination.  Allowing the business to take on both a traditional line of credit and a factoring line of credit

A factoring company can work with your bank and create a bank subordination agreement where their $50,000 dollars is covered by other assets and then a factor can fund against your accounts receivable or purchase orders up to 95%.  This allows the business to take on larger jobs, fund payroll each week and pay for other expenses.  The key is working with a factoring company that has existing relationships with banks and has the experience necessary to compete the transaction. 

Factors are often able to finance your business when a bank will turn you down.   Your bank needs to keep the depository relationship.  Factors do not concern themselves with this because they are not a bank.  Factors simply buy your existing accounts receivables or purchase orders in order for that business to obtain immediate cash payment of the accounts.  They just want to get your the critical cash your company needs to grow your business.

High Risk Borrowers Resort to Unsecured Loans

High risk borrowers can make use of funds for meeting important financial obligations such as consolidating debts, financing education, home renovation, buying car, or even for business expansion. Loans can had up to $25,000.

If you have a less than sterling credit history, you can still land a large unsecured loan. Because of these financially turbulent times, many people have had to take some bad hits on their credit records, often due to a period of unemployment or a financial investment gone awry because of restricted markets.

Arrears, late payments, missed payments, defaults, and even bankruptcies cloud the credit records of some of these folks, making them high risk borrowers. Many people have had these financial pangs and tend to be rejected by many lenders when they attempt to secure a high risk unsecured loan.

Online Lenders Ready for High Risk Unsecured Loans

Traditional brick and mortar lenders such as banks and credit unions have tightened their credit requirements since the housing bust and even good credit borrowers can have a tough time wresting an unsecured loan from them. So, a good place to start your search would be to go online. Private lending companies have stepped in to fill the gap left by the traditional lenders and many of them have set up shop online. As with any online transaction, check the security of the sites and the reputation of the lenders.

In fact, the market for high risk unsecured loans is so great that the many lenders offering such loans have to face some tough competition. You will be able to shop around for lenders with the lowest interest rates and the most comfortable repayment terms. You will even find brokers who will take your general information and provide you with a list of lenders who will probably lend to you based on the information given. Compare quotes and terms to find the most suitable deal.

Facts on High Risk Unsecured Loans

Since no collateral is required for these loans, and since the borrower already has a poor history regarding repayment, the lenders have to adjust their rates to cover the risk. Secured loans offer collateral which the lender can seize should the borrower default. Thus those loans tend to have lower interest rate because of the security offered to the lender. With the high risk of unsecured loans, you will find interest rates to be considerably higher than what the loan market usually offers.

Online application for high risk borrowers in need of unsecured loans is wonderfully easy and quick. You will need to offer documentation regarding your identification, your job history and present salary, proof of residency, and access to an active bank account (usually a checking account with direct deposit), and of course, your social security number. Often approvals are made in a matter of minutes and funds can be in a bank account within 24 hours, sometimes sooner.

Using Your High Risk Unsecured Loan

Hopefully you will have done your budget homework and requested just the amount you need with payments that are comfortable. These loans can range from $1,000 to $25,000, depending on your salary and your financial situation. The terms of repayment can range from 1-10 years. Remember that the longer the time and the lower the payments, the more interest you will be paying. Since you are a high risk borrower, repaying such a loan can improve your credit history to a great degree. Timely and regular payments will also make it easier for you to get such a loan in the future should you need it.

Unsecured Credit Line for Businesses

Starting up a business is a bit of challenge in financing. Sometimes emergency cash is not enough, that's why business owners must consider acquiring an unsecured line of credit.

Financing the business is one of the toughest challenges a business owner must face.  Whether you are running a new business, a start-up one, or even an established company, there will always be the need for financing.

Indeed, the need for cash will always arise and at times, the business owner will be confronted with this challenge when it is least expected.  For this reason, business owners are advised to seek an unsecured line of credit with a trusted lending company, to make sure that there is a reliable financial resource that they can turn to at any time.

Many lending companies in the market offer various types of business financing, including an unsecured line of credit.  Some lenders require the business to be at least two years in existence to be given this type of financing.  Another important factor is credit history. Good personal and business credit standing are important in order to qualify for an unsecured line of credit.

An unsecured credit line can be used to cover for various expenses such as purchasing additional equipment, stocks or raw materials, improving the office space, and other unexpected expenses.  Once approved for a business line of credit, the business owner can make cash advances at any time without the need to go through the whole process of reapplication.  There is no need to wait for months for the approval of your loan application. 

Business Credit Cards – Unsecured Credit Line for Businesses

Small business credit cards are a great example of an unsecured credit line for business.  Unlike business loans, it is much easier to get approved for a small business credit card even for those with no business credit.  In fact, small business credit cards are the exact tools you need to start building corporate credit.

In the absence of business credit, the personal credit history of the business owner will be closely evaluated.  Of course, the higher your credit score is, the more you are likely to get approved for an unsecured small business credit card with good rates.

On the other hand, for those with bad credit rating, secured small business credit cards can be used to rebuild bad credit.  To get a secured credit card for business, you only need to submit a security cash deposit to your account.  Generally, the value of your security cash deposit will also determine the amount of your credit line.

Another essential factor to consider is to find a business credit card that will report your payments to major business credit trackers like Dun & Bradstreet- the leading business credit tracker in the country.  This way, you can build up your business credit as you pay your bills using your small business credit card.

By obtaining an unsecured business line of credit, the business owner is given the flexibility to manage debts and repayment in an efficient way.  However, it is important to remember that managing a revolving credit can also be a challenge that can make or break your business credit standing.

Personal Loans Financing

Many consulters suggest that one should resort to personal loans for financing trips or vacations instead of other financial products like credit cards. Such suggestion is undoubtedly well founded but...

Many consulters suggest that one should resort to personal loans for financing trips or vacations instead of other financial products like credit cards. Such suggestion is undoubtedly well founded but not everybody knows the reasons that justify the advice. The costs of financing should be measured both by comparing the overall amounts spent on interests but also by how the monthly payments affect the borrower’s budget.

Personal loans present significant advantages when compared to credit cards for financing trips. However, there are many considerations to be taken into account, especially when there are certain promotions by credit card companies that can offer more benefits than paying the whole trip in cash and in advance. Therefore, there is no general answer to the question: should I pay with credit card or take a personal loan? It will all depend on the particular case.

The Interest Rate Issue

Personal loans tend to charge lower interest rates than those charged by financing unpaid credit card balances. While credit cards can charge up to 20% APR or even more, personal unsecured loans rarely exceed 10% or 12% APR. Thus, financing your trip by taking a personal loan will end up being significantly cheaper unless you repay your credit card balance within a short period of time.

Moreover, personal loans come either with a variable interest rate or a fixed interest rate. By requesting a variable interest rate personal loan you can get significantly lower rates. However, you need to bear in mind that variable rates can increase suddenly due to market variations and you might end up paying more than what you would have paid if you selected a fixed interest rate personal loan.

The Monthly Payment Issue

The advantage of personal loans when it comes to monthly payments is that the installments are fixed which is perfect for those with little discipline that always feel tempted to pay only the minimum payments on their credit cards and keep spending without control. This way you will know exactly how much you owe every month and you will be able to repay your debt sooner. Obviously, some will prefer the flexibility that credit cards provide. It all depends on how much self-control you have.

But, besides the discipline issue, fixed personal loan monthly payments are a lot easier to budget and since as explained above, the interest rate is lower, smart borrowers will prefer it over credit card financing. The monthly payments can be easily included in the budget and calculated as an additional expense letting the applicant to make the necessary previsions to afford the payments without hassles.

Credit Card Offers From Time To Time

Often, agencies agree with credit card issuers and present offers for credit card holders that excel the advantages that can be obtained by financing with a personal loan. In such cases, after you have considered the offer carefully and watched for any hidden cost that agencies like to conceal on the fine print of the contracts, you can assuredly choose credit card financing over taking a personal loan. Other than that, it is always advisable to use a personal loan unless you can not afford the monthly payments or you do not meet the requirements for approval.