Cashflow Blog

By Sean Horton

When it comes to taking out commercial finance then a finance broker has many advantages over going it alone. When considering a loan then a lot of thought has to be given to it and you have to understand the technical jargon that comes with the finance. Not only can a broker get you the best deal but they are also able to give you information and advice on the different aspects of the loan.

One of the first things a finance broker can go through with you is the type of loan you are wishing to take. The choices are a fixed rate of interest, a variable, a repayment or interest only loan. There are both advantages and disadvantages to all and you have to decide which is suitable for your needs. Of course these are only just a few of the factors that have to be taken into account when looking for finance.

A fixed rate loan will come with a slightly higher rate of interest but this rate will of course remain fixed for a period of time. This is excellent when it comes to sorting your monthly budget. However, when the fixed period has ended then it will go over to a variable rate and the repayments can shoot up drastically. A loan of this type will usually incur early redemption fees which mean that if you pay off the loan early it will cost you a lump sum of money. However if you choose to go with a finance broker they will search out lenders who offer this type of loan without the fees.

The variable rate loan will be based on the Bank of England base rate and as such when this changes so will the rate of interest attached to your loan. If the interest rate is low then this is to your advantage, however if it shoots up then so do your repayments. The variable rate will only really work out for you if the Bank of England base rates are low. There are good and points to both and the broker will be able to give you all the advice needed to determine which way to go.

A finance broker can also help when it comes to deciding whether to take out a repayment loan or an interest only loan. If you choose to take out an interest only then you will only pay back the interest that has incurred on the loan. However at the end of the period of the loan you will be left with the lump sum which you originally borrowed, which will have to be repaid in full. Lenders will usually ask for proof that you have the means of repaying this amount before they will ok the loan. The repayment loan will take the monthly repayments you make and take off a little of both the interest and the capitol. This means that at the end of the period of the loan you will have paid in full the amount you borrowed. The rate of interest you pay will normally be higher than that of the interest only loan.

Sean Horton is a Director of Enhanced Wealth, a [http://www.enhancedwealth.co.uk/commercial/index.htm]uk commercial mortgage broker and IFA specialising in mortgage advice and the associated areas of income protection, mortgage protection, and mortgage life cover.

 

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A Finance Broker Can Help Save You Money When Considering A Commercial Loan

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Credit card debt is by far one of the biggest financial concerns today. How do you know when your debt is out of control? Do you avoid phone calls from your credit card company? Do you not even bother to open the credit card statements? Do you completely ignore going online and checking your credit balance? Are you shocked when you see that you are being charged interest on your interest-and you come to the realization that you will have your credit card paid off in 2000 and forever?
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Ovation Credit

By Lara Sawyer

Running a business is not an easy task and the need of financing is a must. However, a business owner wants a cheap source of financing and not rates that eat up all revenue. Unsecured lines of credit are either too expensive or not available for small businesses. Thus, if the business does not have sufficient assets the owner may have to use his own personal assets. Fortunately there is another solution to secure a loan for your business: the use of the business’ income.

Your business may produce money but it probably does not do so at the rate you want and with the exact timing you need. That is why all businesses need some sort of financial source and secured ones provide a cheap source of funds. There are loans and lines of credit provided both by financial institutions and banks that can be secured with the company’s income in different ways and that can provide all the financing your business needs.

Bank Or Financial Institution Line Of Credit

Your current bank or any financial institution can provide you with a line of credit or a loan based on your business’ profits. Of course the loan or line of credit can be either secured or unsecured but secured lines of credit can provide better terms. Therefore, it is a good idea to discuss with your account manager the best options available to you as a business owner to obtain financing through secured loans or lines of credit.

Your bank or financial institution can require assets to guarantee a loan or line of credit. Just like with home loans or home equity loans, if the company or business owns an immovable property, it can be used to secure a loan. However, if your business’ accounts are managed by the bank or financial institution and payments are processed by them too, you can obtain financing securing it with that income.

Credit Card Purchases As Collateral

Some financial institutions that handle credit card payments will offer to provide you with financing securing the loan or line of credit with the revenues generated by your sales. The most common scenario is a line of credit associated with the account where the money from the sales made with credit cards is deposited. Thus, you can withdraw money even when there is not enough cash on your account and when the sales made with credit card are processed the amount owed is deducted from the income as a percentage that has to be agreed beforehand.

This system provides you with all the financing that you need while at the same time it provides security to the lenders who know that as soon as you receive money from your sales, they will be the first ones to collect even before the money is actually deposited into your account. Such low risk implies that the lender can provide very advantageous terms on your line of credit and it is an excellent way to obtain cheap financing for your business.

Lara Sawyer is the author of this article. She works successfully as a financial advisor with years of expertise on [http://www.fastguaranteedloans.com/unsecured-personal-loans-bad-credit-people-welcome.html]Unsecured Personal Loans. Lara publishes informative articles about home loans, credit cards, auto loans, bad credit loans, business loans and others at http://www.fastguaranteedloans.com

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Securing Your Business Loan With Your Business Income

It was good to see Thomas Hoenig, President of the Federal reserve Bank of Kansas City, in our state of Colorado. He went on a folksy tour of small businesses and ended up at the Rocky Mountain Chocolate Factory in Durango on Tuesday.
Rocky Mountain Chocolates makes great candy and Bryan Merryman, the CFO of the company told Hoenig:

“Commodities across the board have pressured us”. “There are a lot of pressures in our system that we haven’t seen before”.

It’s reassuring to see that the feds have recently discovered that they need to start raising interest rates. I hope Hoenig went to the grocery store and gas station with Merryman just to confirm his suspicions

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Is Inflation a Problem?

Good News-for all of you who have been wondering about the Yellowstone Club, the Playground Spat Is Resolved according to the Wall Street Journal. Edra Blixseth, who started the club with her husband, Tim, was granted ownership of the club in the couples divorce decree !!
Membership at Yellowstone costs an initial $250,000 was $18,000 in annual dues and millions of dollars to buy or build a home there.

Members such as Bill Gates and Dan (potatoe) Quayle can now rest easier this evening
Edra, email me if you need me to see if the club is now up to your standards!

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The Yellowstone Club-It’s Safe to Return