loans

3 Different Types of Business Loans Every Entrepreneur Needs to Know

Were you aware that there are several types of business loans?

A loan can be a powerful tool for any business that wants to get ahead. A loan is when you borrow something (money, in most cases) and return it over time. Many people take out loans daily, whether it’s for school or personal use, and businesses can also take out loans.

Understanding your business loan options will help you figure out which one to go for because each type of loan typically has a purpose. For example, student loans are designed for school. The same concept applies to certain business loans.

Read on to learn everything you need to know about business loans.

SBA Loan

An SBA loan is a loan that comes from the Small Business Administration. SBA loans are great for both startup businesses and preexisting businesses looking to purchase major assets. There are several different SBA loan types, such as microloans, SBA 7(a) and CDC/504 loans. 

What makes getting an SBA loan beneficial to the business is the ability to get low-interest rates and long repayment terms. When you’re approved, you can expect to repay the loan over several years. Depending on how much you borrow, you could end up paying over a couple of decades.

Term Loan

A term loan is one of the most common small business loan types because it can be used for anything. You don’t need to provide the lender with collateral, and you can borrow up to $500k. The only downside to getting a term loan is that their repayment period is typically between 5 years.

Typical business term loans can also come with high-interest rates depending on how much you’re borrowing and who it’s from. However, they’re much easier to get than most loans because you could get approved within a few days. Providing that you have good credit, you won’t need to offer collateral.

Line of Credit

Most people are familiar with lines of credit because they use credit cards. A business line of credit is essentially a credit card for businesses that can be acquired with low credit ratings. With business credit, you can continuously borrow money providing that you pay back your debt.

For example, you can borrow $5000, pay that, then borrow $5000 again. This revolving debt allows anyone to kickstart their business. The repayment terms are much shorter than most business loans, usually maxing out at 1 year, but the terms will vary depending on your revenue and credit.

Decide Which Types of Business Loans Would Benefit You

A business can benefit from a loan in a variety of ways, but you must examine the various types of business loans and determine which one you should get. Depending on your revenue and how much you need to borrow, there will be a loan that’s better than the rest.

Anyone that’s looking to borrow several hundred thousand should go for an SBA loan whereas anyone that wants to buy small things for the business can get a line of credit. If you want to borrow money for a variety of things, you could benefit from getting a term loan.

Browse our articles to learn more about business-related topics.

Bad Credit? No Problem! Common Questions Asked About Bad Credit Title Loans

Having a problem with your credit? Dealing with less than satisfactory credit is not something anyone wants to deal with, but it’s a reality that you unfortunately face. The problem is that many lending companies are not as forgiving of your credit.

When lenders consider giving money to clients, they first check out your credit score to see if you would be a good candidate. A bad credit score may make them consider looking the other way.

However, not all is lost just because of a low credit score. You can still get bad credit title loans if you’re ever in a situation where you need cash fast. Keep reading to find out how it works, and if it’s right for you.

What Are Bad Credit Title Loans?

As said earlier, getting a loan without stellar credit can be a challenge. However, you can still get the money you need by giving your title in exchange for a loan.

Here’s how it works. You would take the title of your car to a loan center that works with clients with bad credit. You would then give your title to a lending company, who in exchange would hand you the funds you need.

The process is specifically geared to help people just like you to get back on their feet when no one else is willing to help.

How Hard Is It to Get a Loan?

Getting a loan is actually quite simple!

With most bad credit title lending companies, you don’t have to jump through hoops just to get the funds you need. The actual application and transferring of the loan is a short process, and you can get your money on the same day.

You can even go online to start the process of getting a title loan, and the process is entirely streamlined and easy to do.

Will I Get My Title Back?

Absolutely! Your title is only held by the lending company until you finish repaying the loan. After you pay the loan off, you get the title to your car returned to you.

The title only does to main things for the company: it gives them an actual monetary value that they can give you in loan money, and it acts as collateral to protect their assets.

After you pay off the loan, they have no reason to hold on to your title any longer. It will be released immediately and returned to your hands in a few business days.

We Can Help You Budget

Now that you know how to get bad credit title loans for your needs, you may want to learn ways to save and budget the money you already have. We can help you do just that.

At Budget and the Bees, we love finding ways to make the most out of your dollar. We cover ways to advertise on a limit, how to pay off your debt quickly, how to organize and invest your funds, ways to travel smartly, and so much more.

Ready to get started? Check out our site to learn all about what we have to offer you. We’re sure you’re going to love what you see here!

The Benefits of Applying for No Credit Check Personal Loans Online

Did you know that the average American has about $38,000 in personal debt? 

That’s a $1,000 increase compared to the previous year, and it doesn’t even include home mortgages. Also, fewer people carry no debt anymore, a drop from 27% to 23%.

If you also experience problems with your finances, you might want to consider no credit check personal loans online. It’s the type of loan that’s becoming more popular than traditional loans. The main reason is due to its speed, convenience, and higher rates of approval.

Are you ready to learn how no credit check personal loans can benefit you? Read on and find out more.

The Benefits of No Credit Check Personal Loans Online

A common misconception is that only banks can become a trusted source of loans. But the good news is that over the years, a lot of people now put their trust in online loans. There are a lot of reasons to trust no credit check personal loans online, and here are some:

1. Convenience

This reason is one of the major benefits you can get when you try to get online personal loans. Unlike bank loans, you can apply for a personal loan from the comfort of your own home. These loan websites will let you fill in online forms that get your loans approved faster than any bank.

The best part is that all your dealings with the lender will happen in an online landscape. That means it’s much more convenient if you have a tight schedule. It’s also the best solution when you’re not the type of person that would want some extra trips to the bank.

The reason for this convenience is that online lenders aim to disrupt traditional banking. It’s due to the fact that most big banks won’t give quick access to capital when needed. They also have no streamlined processes that they can do from anywhere.

2. Lower Rates

Direct payday lenders won’t need any form of physical offices. That means their operating costs go down and they can offer lower rates and fees. Without any need for physical locations, they can also offer fixed interest rates.

You won’t have to worry about any fluctuations in the interest rates through your loan’s life cycle. It’s a beneficial option when you’re doing what you could to consolidate your loans. Paying off your student loans first using the money from this online source helps you pay less interest over time.

There are a lot of online loan providers out there that report to the credit bureaus. Loaning and paying on time using these lenders will help you improve your credit score. It’s a natural and legitimate way of raising your credit score instead of using credit repair companies.

But you need to remember that it will take some time. To make the most out of it, you need to pay all your bills on time each month.

3. Easier Access

It’s an accepted fact that banks are pick when they’re trying to lend money to people. They’re only likely to pick people with good credit scores and financial standings. In contrast, online loan services aren’t as meticulous with their set of requirements.

You’re more likely going to get an approval when you apply for online loans. In some cases, you won’t even need to have a good credit score since they won’t check. For example, some peer-to-peer lending sites will pitch out loans to individual investors.

If you’re lucky enough to get someone who’s willing to take your debt, you can get approval. It doesn’t matter whether you have a low credit score. This will help you get financing when you need it the most.

4. Partial Loans

Banks will always ask you to get approval for an entire loan. Depending on the type of online loan you’re getting, you might get the loan even in partiality. For example, a lot of peer-to-peer online lending services enable you to take the money even when only about 60-70% of it got funded by investors.

A peer-to-peer online lending platform has individual investors that will bid on the part of your loan. In some cases, they might even end up funding the full amount. Regardless, if you try this kind of service, portions of your loan get funded by any number of people.

This will give you some sort of peace of mind. After all, even when you don’t get approved for the entire loan, you still have a chance of getting a partial amount. This is necessary when you need to at least pay a certain portion of your debt each month.

5. Different Criteria

Bank lenders, regardless of whether it’s brick-and-mortar or online, will need you to have a good credit score. If you have bad credit, you won’t have any means of getting an unsecured personal loan from them. This isn’t the case with a lot of online lenders, especially those who don’t check your credit.

Some online lenders won’t take your credit history into account since they’ll look at other factors. They’ll check financial health markers like your employment history and monthly earnings. Traditional banks will do the same, but they’re more likely to loan to people with excellent credit scores either way.

6. More Features

Online lenders have stiff competition for the best customers. That’s why you’ll often see a lot of them offering different perks to their potential customers. For example, some lenders will have some sort of unemployment protection that puts your loan on hold if you lose your job due to unfavorable circumstances.

Try No Credit Check Personal Loans Online Today!

There are a lot of no credit check personal loans online but it’s important to do your research first before you try them out. There are unscrupulous lenders out there—stay vigilant and pick reputable lenders to ensure you get the most out of your loan.

Why stop here? If you’re in need of more guides, read more of our posts and discover more financial tips and tricks.

Can You Get Big Loans with a Bad Credit Score? Yes, It’s Possible. Here’s How

Bad credit is a serious problem for a lot of Americans. In fact, approximately 25 percent of all Americans (that’s 43.4 million people) have a credit score that is 599 or lower.

If you’re part of this group, you know that getting approved for credit cards and loans (especially big loans) can be quite challenging.

It’s important to know, though, that it’s not impossible for you to get the money you need, even with a low credit score.

Read on for some tips that will help you get big loans if your credit score is subpar.

Learn Your Credit Score

The first step to take if you want to apply for a loan is to check your credit score. A lot of people have no idea what their credit score is or if it’s accurate.

Start by checking your credit report and finding out your score. Then, look more closely at your report to see if there are any errors that are bringing your score down. If you notice any errors, work on getting them corrected as soon as possible.

Evaluating your report will also give you insight into the issues that have caused you to have a lower score. Is it a lot of late payments or missed payments, for example? 

Work with a Credit Union

Once you know where you stand with your credit score, you can do some more research and find out which lenders are most likely to work with you.

As a general rule, credit unions are often more forgiving than banks and are more willing to work with people whose credit is less-than-stellar.

Reach out to a local credit union and find out what kind of loans you qualify for. You might be surprised at what’s available.

Apply for a Secured Loan

If your credit score is low, you might still be able to qualify for a secured loan.

Secured loans require you to offer up an asset like your car or your house as collateral in exchange for funding. Lenders are more likely to approve your application if they know that the loan is secured against something for value.

Make sure you have a plan to pay back this loan, though. Otherwise, you’ll end up losing your belongings if you can’t meet your payments on time.

Find a Co-Signer

Having someone with a high credit score co-sign your loan is a good way to access financing when your own credit isn’t up to par.

A co-signer is someone who agrees to take over your loan if you default. It’s a big responsibility, so it can be hard to find someone who’s willing to do it.

If you can, though, it’ll help you build your credit while also giving you access to the money you need.

Consider Personal Installment Lenders

A personal installment lender takes a lot of factors into account (not just your credit score) when determining whether or not they’ll provide you with the money you need.

Look into working with one if you’ve been turned down by other lenders and need money to cover a large emergency expense.

Work with an Online Lender

Online lenders are another good option to consider if you find yourself getting turned down by traditional lenders.

According to Bonsai Finance, online banks often offer better loan terms and interest rates than traditional lenders. They’re often more flexible as well and have options for people in all financial situations, including those with bad credit.

Before you agree to work with an online lender or give them your personal information, be sure to do some research to make sure they’re credible and don’t have any complaints against them.

Get Multiple Quotes

No matter what kind of lender you’re considering using, it’s smart to get multiple quotes before you agree to work with one over another. 

Doing some research upfront will help you ensure you’re getting the best rates, loan terms, and fees possible. 

Beware of Predatory Lenders

When your credit score is low and it’s harder for you to get lenders to approve your loan applications, you’re a prime target for predatory lenders.

Be wary of loan offers with terms that seem too good to be true. There’s a good chance they are.

Many predatory lenders offer loans that seem great on paper but are actually full of fine print that can cost you a lot of money in interest and fees later on.

Always read through loan agreements carefully before you agree to work with a particular lender.

Improve Your Credit Score

All of these strategies are useful when it comes to trying to get a loan with a bad credit score. While you’re working on choosing the best loan situation for your needs, though, it’s important to also work on improving your credit score.

Set up automatic payments to avoid late penalties, and make sure you’re keeping your credit utilization as low as possible.

You might even want to delay applying for a loan for a just a few months until you can raise your score. Even raising it by a small amount can help to increase your chances of approval and allow you to enjoy better terms and interest rates.

Get Big Loans Today

As you can see, it’s totally possible to get big loans when you have a low credit score. The key is to make sure you’re implementing the tips listed in this post. 

It might take a bit of trial and error for you to get your loan application approved, especially if you want a loan with great terms and interest rates.

If you know all your options and take the right steps when applying for these loans, though, you’ll be much more likely to get approved and get your hands on the money you need.

Do you want to learn more about how to qualify for loans and manage your money?

If so, we’ve got plenty of helpful resources available to you. Check them out today by visiting the Money Management section of our website.