Loans Credit and Finance Articles

Title: Help! What does My Credit Score Mean? Credit Scores Explained Author: Gloria Smith Article: Credit scores play a vital role in a person's financial life. They can make or break your chance of obtaining a mortgage loan, a credit card and other types of loans. For home buyers, a credit score is important in the home buying process as well as in determining the lender's interest rate. A credit score is a three-digit number calculated based on a statistical analysis of a person's credit files. Lending institutions including banks normally use this in determining if a person is worthy to avail of a loan or any other form of credit at a specific interest rate and credit limit. The number helps lenders identify the level of risk they may be taking if they loan an amount to an borrower. In other words, a credit score is proof of his creditworthiness or his ability to pay debts on time. Credit information Basically, a credit score is based on credit report information provided by three major credit bureaus or credit reference agencies - Transunion, Equifax and Experian. A credit report contains information on your payment history, how much open credit you have or the amounts you owe, the length of your credit history, types of credit used and new credit, all of which affect a person's creditworthiness. Apart from those information mentioned, lenders normally consider other factors such as income, employment history and the credit type a borrower is seeking. Most lenders and banks use the FICO method in calculating an individual's credit score. Many mortgage lenders also use this to find out the possibility that the borrower may default on his financial obligations to the lender. FICO refers to the Fair and Isaac Company, an independent firm responsible for developing the method of credit scoring. The FICO credit score ranges from 300 to 850. Not only banks and lending institutions use credit scoring as mobile phone companies, insurance firms, employers and government departments also apply the same techniques. A good score The higher the number, the better is your credit score. This means that the lender believes you can be a good borrower with less risk. Additionally, as your score increases, you will more likely be offered a lower interest rate. Borrowers with a credit score of more than 700 are offered more financing options and better interest rates. A 2003 report in the U.S. revealed that 29 percent of the American population have credit scores ranging from 750 to 799, 20 percent in the 700-749 range, 16 percent in the 650-699 range and 11 percent in the 600-649 range. Another 11 percent have scores of more than 800. Getting your score Previously, only lenders and other businesses that used the FICO could access your credit score. However in 2001, the federal government finally decided to give consumers access to their scores after being pressured by the U.S. Congress, credit industry and consumer groups. Today, anybody using credit can obtain their credit score from the three big credit agencies, at Fair Isaac and Company's website and several other websites. Borrowers can also ask their lenders for access to their scores when applying for a loan. About the author: Read our Free Report - 5 Steps to Better Credit Card Management, and get Tips on Credit Card Consolidation Title: Car Finance for Bad Credit - Learn The Facts Before Applying Author: ashish arora Article: Finding yourself with bad credit and in need of a car can be a trying situation that you might not know how to deal with immediately. Luckily, even if you have bad credit because of unforeseen financial situations, or had to declare bankruptcy, there are several things you can do to increase your chances of securing favourable financing. Past car options for individuals in the UK with poor credit were extremely limited to a single company, Yes Car Credit. Yes Car Credit had a notorious reputation for providing people with less than favourable cars at extremely higher than average costs and interest. But, with no other options for financing when you had bad credit, the company was still able to operate because there was no competition. Unfortunately, several other companies using the same tactics have popped up in the last several years. While the lenders do offer financing to those with less than perfect credit, it is not always beneficial for you to jump at their offers or even accept the first one to come your way. Instead, take into consideration the following before you make any final decisions and sign a loan: Is the Financing I Have Secured the Best Possible Deal After All? When you begin looking for car financing and you have bad credit, the first thing you are going to notice is that your interest rate and payments will be much higher than someone with good credit. Lenders charge a higher interest rate because you are considered a riskier borrower, and even though many borrowers are willing to pay higher interest rates just to be able to buy a car, there are limits that no one should go over. Before signing off on any loans, determine exactly how much of a monthly payment you can handle and if the higher rate is worth the value of the car. You can improve the loan quotes that you receive by working to improve your credit and lenders should take these changes to your credit score into consideration. Gather quotes from several financial institutions and lenders to make sure that you get a good idea of what is being offered to you. Speak directly with lenders at every opportunity, even if you get loan quotes off the internet. By letting the lender know your financial situation and reasons behind your past credit history, they may come back with a better offer that you would otherwise not have received. Remember, all the quotes you receive are just quotes, and rates and terms are open to negotiation. Therefore, make sure everything that requires documentation or updating is on hand and available to show to possible lenders. Make sure that you are getting the best car for you at the best loan deal and that you understand all the terms and conditions of your loan before you move ahead. Getting reliable and fair car financing is possible with bad credit if you go about the right way to get it. Prepare yourself and educate yourself on all terms and conditions of a loan so that you are better able to negotiate and get the best possible financing. About the author: Usedcarfinancequote aim to provide a fast online service for those looking for car finance. Especially those people seeking car finance for bad credit which allows them a large range of vehicles and flexible payment options. Title: Car Financing Bad Credit - Interesting Information For The Car Buyer Author: Abhinav Sidana Article: Having a bad credit rating does not mean you can't get car financing. Bad credit can sometimes feel like the world is against you and it can be difficult to get the car of your dreams if you suffer from a bad credit history. Not all financial companies require extensive credit history checks so don't throw in the towel just yet. There are a variety of financial companies out there who will cater for people with a bad credit rating or no credit rating at all. These companies will have special deals, offers and loans to supply you with the car financing you need. It's never been easier to get your hands on a loan for a car. You can apply online, by phone or in person with a specific financial company or you can search online and have a look at a variety of quotes and deals from financial companies using a dedicated price comparison site. Don't feel let down by your bad credit, regardless of your history, these companies will be able to help you to gain control of your credit rating and get the car you need. Find out what they can do for you and how their deals will benefit you. You are a potential customer just like anyone else, so don't be afraid to do some research and hunt around for the best quote you can get. There are many car financing companies out there and this means a competitive market for everyone including those people with bad credit. For specialist companies, the loan you can get is based upon your current ability to pay the loan back which is judged on your current income. This means your credit rating is not a hindrance when obtaining a loan from a car financing company for bad credit. Make sure you can afford your loan payments, do not be tempted to go for larger loans just because they are available to you. Choose a low cost affordable loan even if it means you don't get your perfect car straight away. Making sure you can pay off your loan will ensure you improve your bad credit for future car financing. Remember, your loan is secured on your car so if the worst happens and you cannot afford to pay the loan anymore the car will be repossessed. This means you will be out of pocket, without a car and have a worse credit rating than before. Obtaining an affordable loan may mean you don't get the best car, or the newest car straight away but you can use this to build up your credit rating for future purchases. You should also bear in mind that there are many other sums to take into account such as car insurance, road tax and other expenses. Remember not to get pressured into your car financing loan and do some research on the types of loans you can get and how much the car you want is really going to cost you. About the author: Usedcarfinancequote aim to provide a fast online service for those looking for car finance. Especially those people seeking car financing bad credit which allows them a large range of vehicles and flexible payment options.

Title: Applying for Bad Credit Mortgage Loans Author: Joe Boyd Article: A lot of people who happen to have bad credit make the mistaken assumption that their less than spotless credit history will keep them from being able to buy their own home. They think that no mortgage provider could possibly ever trust them with a mortgage. While things once were indeed this way, the rules have changed a bit in recent years. Instead of just passing by people with bad credit, banks and mortgage lenders have instead developed bad credit mortgage loans - ideal for those who have had some credit problems yet still want to pursue the dream of home ownership. These loans have been a wonderful thing for many families who though that they would never be granted the opportunity to buy a home of their own. You can find yourself having bad credit for a variety of different reasons. You might have overspent with that first credit card back in college, been faced with unexpected medical bills or any number of other difficulties which put you into this situation. No matter how you got bad credit, bad credit mortgage loans can help you to buy a home. However, there are some important differences between a traditional mortgage loan and a bad credit mortgage loan. The biggest difference between a regular mortgage loan and bad credit mortgage loans is the interest rate. People with good credit can get interest rates between five and seven percent. People with bad credit may see interest rates much higher than that. This is the bank's way of ensuring that you are worth the risk. But some banks' interest rates are much higher than others. Because of this, you should put in a bit of effort to find the best loan with the lowest rates. This can take some time, but it will be well worth it as you will save a lot more money in the end. The down payment percentage is something else to keep in mind which may differ here. Normally, the down payment percentage is around 5%; but is often higher in the case of bad credit mortgage loans - keep this in mind as you shop around for a mortgage. The monthly mortgage payments can be rather high with these loans. You can reduce this by choosing a 30 year mortgage rather than a15 year one. For example, if you buy a home which costs $150,000, you will pay about $800 per month on a 15 year mortgage, as opposed to a little over $400 on a 30 year mortgage. This amount, it should be noted, does not include interest. About the author: Please stop by my Credit site where you will find info about Bad Credit Mortgage Loan and Debt Consolidation Government Loan Title: Tips for 100% Real Estate Investment Loans Author: Jim Bruce Article: As a real estate investor you are probably aware that one of your goals is to acquire properties with as little cash out of your pocket as possible. In fact, this is exactly what is touted by every real estate guru. They tell you that you should be able to finance your investments with no money down. Using other people's money to finance investment loans is how real estate empires have been built for years. It's truly all about leverage. It's the old "borrow your way to riches" scheme. I'm sure you get the idea. But, for lenders, the less money you have invested in a property, the riskier the loan. This is clearly a double-edged sword. The smart investor realizes that 100% financing does not mean "no money down". This is especially true since the mortgage meltdown of 2007. Nowadays you have to be even more creative since the max loan to value ratio (LTV) on most conventional loans is 90%. But there are ways to limit the amount of cash you have to bring to closing, such as asking for the seller to carry back a 2nd mortgage or asking the seller for concessions of 2-3% to cover the closing costs. There are many conventional loan programs that will allow you to do this. Just make sure you know the rule about your specific loan program before you write the offer to ensure you are maximizing the seller contributions on your deal. And remember, this is a percent of the purchase price, not the loan amount. But be careful because you don't want to get so much that the lender starts to question the value of the property. If seller concessions go beyond program limits, a lender might think that the house is over priced. Imagine making an offer on a duplex that is listed for $180,000. The property has been on the market for some time and you think that the seller will happily offer some "concessions" or "seller contributions" just to get the deal done. You know that your broker will charge 1% origination ($1800) on this deal if you offer full asking price. Figure your maximum offer and ask the seller to also kick in $1800 in closing costs. The seller doesn't actually give you $1800, it just gets deducted from his proceeds at the closing. And, if you need to do some rehab on the property, the most popular way of limiting the cash you put into the loan is to partner with your contractor. You can ask him to do the work in exchange for a percentage of the profits when you sell or ask him to defer his fee until you sell the property. However you decide to cap your costs is up to you. You may have to give up some profits but it's like they say, "you can't be broke and greedy". In other words, if you are asking for the world with your investments, be prepared to pay for it. Deals like this may be difficult, but they're not impossible. Find out more about how to finance your real estate investments by going to Mortgage Secrets for Real Estate Investors. About the author: Jim writes on realtor marketing, buying and selling properties, and real estate investing at: RealtorMarketingInfo.com. Title: Important Things To Think About Before Deciding To Refinance Author: Johnny P Kevan Article: Deciding to refinance a home loan is an important decision that can have many long ranging financial consequences. It is important to review all options and all possible complications when deciding whether to refinance a home loan or not because this is the only way that the person can make an informed decision about refinancing their home loan and learn which kind of loan product is best for their needs. There are several important things to think about when deciding to refinance to determine whether refinancing is the best move or whether it would be best to wait for a more attractive situation. 1. Are Mortgage Rates Rising? The decision of whether to refinance your home loan in an environment where the interest rates are predicted to rise will depend on what type of loan product you currently have. If you have a fixed rate mortgage, then it may be better to stay in the loan that you are currently in because the payments will be cheaper over the long run. If you have an adjustable rate mortgage, or ARM, then it will probably be best to refinance the loan into a lower fixed rate before your mortgage payments rise. 2. Are You Planning On Staying In The Home For A While? One of the biggest mistakes that many people make when decided to refinance their home is refinancing into a new loan when they intend on moving from the home in a few years. If you sell the home before the prepayment penalty period of the refinanced home loan is up, you may find yourself owing thousands of dollars in fees to the mortgage company for getting out of the mortgage loan early and may find that this does not leave you with enough money to place a down payment on a new home. Only refinance the home loan if you intend on staying in the home for at least 5 years or more. 3. Why Are You Refinancing The Home? There are some reasons that should never be used for refinancing a home because they will often cause more problems than they solve. A home should never be refinanced so that the homeowner can take an expensive vacation or to pay off credit card debt from wasteful spending. The money obtained from refinancing the home loan should be used to invest in the future of the family by remodeling the home, paying for a college education, or saved for retirement needs in an interest bearing account. Knowing the answers to these questions can help you determine whether the time is right to refinance your home or if you should wait for a better time to take out a new home loan. If the wrong decision is made, it could end up costing you thousands of dollars in fees and interest payments so it is very important to gauge financial conditions and determine whether refinancing your home would be in your best interest. About the author: Johnny Kevan is a jack of all trades - master of many. Jumping from job to job and hobby to hobby has given me a broad range of expertise. Writing was always my favorite hobby and job, so now I write full time. Get more information regarding refinancing.

Title: Starting your Business up with the right Finance Author: Carolyn Clayton Article: When it comes to business finance the saying 'it takes money to make money' fits right in; you need business finance in order to get your business started, for it to operate, expand and grow. There are a range of options open to you when it comes to gaining the right business finance for your company but you need to choose the one that is right for your business. To do this you should look at all of the advantages and disadvantages of each of the financing options that are open to you. Some examples of these financing options are as follows: Short term sources of finance: * Bank overdraft * Trade Credit * Leasing * Bank loans * Credit cards Long term sources of finance: * Bank loans * Share capital * Debentures * Asset sales * Venture capital * Government, local authority or EU grants Every business, especially at the start-up stage will need some form of finance. There is a lot that needs to be spent before your business even starts to make money. Below are just a few examples of some of aspects that you will need to spend money on when it comes to your business start-up: * Purchase capital items (fixed assets) e.g., plant, equipment, land or buildings, motor vehicles; * Increase holdings of trading stock and supplies; * Fund research and development; * Expand distribution or develop new markets. On top of this you will have the property costs, including bills and your staff wages to cover. Once your business starts to make money these aspects will be covered by the profit that your business is making but until then you will have to rely on the money that you will have gained for your start-up costs. When you are in the process of gaining your business finance it is important that you have an accurate idea of your financial needs. In order to do this you need to calculate the amount you need to cover your initial start-up costs as well as this you have to take into account you're running costs and expenses. This is due to the fact that for a while you will be running your business without it making a profit but you still need to pay all of your bills as well as to keep trading. I would suggest that you have enough funds to cover at least six months of your business running. One way in which you are able to secure the business finance that you need is through your business plan. Good planning will make it easier to raise the money that you need, which is why your business plan is important. Your plan will detail and outline what the money is needed for, exactly where the money is going to be spent and how this will benefit your business as well as demonstrating how the money will be repaid. Your business plan could make or break whether you receive the finance that you need. If you are looking for business finance at the moment make sure that you approach the avenue that is most suited to you and that you have took into account the advantages and disadvantages of the finance you are after. Helen is the web master of Angel Start-Ups, specialists in all aspects of Business Finance. About the author: Helen is the web master of Angel Start-Ups, who are experts in all aspects of Business Finance, which includes Business Grants. Title: Types of Business Finance - Grant Finance Author: Helen Cox Article: Whether your business is small and new or large and established you will need adequate finance for the majority of projects, purchases and expansions you're your business makes. Obtaining the necessary cash to get your business off the ground can be a challenge and few new companies are able to finance themselves on cashflow alone and therefore need to consider gaining finance from other external sources. There are many of these external sources who will be willing to provide you with this start up finance, a few examples of these are stated below: * Bank loans * Business angels * Venture capitalists * Overdrafts * Credit cards * Friends and family These are just a few examples of some of the places that business start-up finance is available from; however there is another source of business finance available that many people often seem to forget, this is grant finance. Business Grants can however take several months to process so you should always add extra time to your planning so that you get a decision on your grant application before the project is due to start. A lot of start up companies and small businesses are often put off the idea of applying for a business grant to help them with their finances and because of this many of these businesses are missing out on a great opportunity to gain extra cash for there business; cash that doesn't need to be paid back. Few, if any new companies can finance themselves on cashflow alone and therefore need to consider raising finance from other external sources. If your business needs extra cashflow for a specific project or purpose then a business grant could be exactly what you need. This is because business grants are only awarded for specific aspects. So what exactly is a business grant? A business grant is when an organisation or authority gives a sum of money to your business to help you succeed in a particular project these business grants are mainly awarded by the Government at both a local and national level as well as by smaller bodies such as The Princes Trust or The Arts Council. When you are applying for a business grant there are certain things that you should keep in mind such as a detailed description of the project, an explanation of the potential benefits of the project, a detailed work plan, details of your own experience and if possible a business plan. All of these will help you with your application process and help you to get closer to that business grant that you want. If you are successful in your grant application the money that you receive is none repayable and you won't have to pay any interest for it either; however you will need to carry out a significant amount of hard work if you want to stand a chance of obtaining a grant. These grants are also limited so the competition that you will face for them is intense. About the author: Helen is the web master of Angel Start-ups, experts in all aspects of Business Finance and Business Grants. Title: Business Finance - Gaining a Business Grant Author: Helen Cox Article: Every new business needs finance when they are first starting up. You will need to buy equipment and your workplace will need to be set up as well as all of your marketing costs being sorted out but it doesn't just stop here; when you are officially set up and your business starts making money you will need to cover all of your businesses bills and your staffs wages. When it comes to finance needed to establish your business there are a number of options available to you. One of these options is grant finance. So what exactly is this grant finance? Grant finance is some of the money that is given to individuals or businesses for a specific project or purpose. Grant finance however only covers part of the cost involved in your business project but the money that is given to you doesn't need to be paid back. Grants are given to businesses to help with specific aspects of business development and they are available from a wide range of sources such as the Government, European Union and regional development agencies. These business grants are only given to businesses for a specific reason and there are a number of factors that may affect whether you are able to gain a grant such as your business activity or your specific business industry sector, some are also linked to certain geographical areas, which are in need of economic regeneration. Business grants are notoriously hard to gain and there are only a certain amount that are available to businesses every year so the competition for these business grants is strong, which is why if you are hoping to gain one you need to clearly outline what the grant will be used for and how it will benefit your business as well as how it will benefit your local community. You will also need to clearly show that the specific project you want the money for hasn't already started to take place and that you are able to put the rest of the money needed for your specific project to the grant money because, as mentioned earlier, a business grant only covers part of the money needed for a specific project. A business grant will cover between 15% to 50% of the total costs involved in your business project so you will need to get hold of the rest of the money. If you gain a business grant when you don't have the other half of the money available or you have already started the business project then you will be made to pay the grant back in full as you are breaking the terms of your business grant. If you are hoping to make an application for a business grant then you need to make sure that you check what grants are available. Also there are a few factors that could affect you gaining a business grant such as the size of your business. Some grant providers will only give you access to a grant if your business is a small to medium business, ideally with less than 250 employees. As well as the size of your business you also have to think about your industry sector. This is because funding can often be limited and subject to restrictions in certain sectors, which are defined by the European Commission. Other restrictions include the location of your business and the purpose of your grant. If you are going to apply for a business grant it is advised that you make your application well in advance of when your grant is needed as the applications can often take a while to process. About the author: Helen is the web master of Angel Start-ups, experts in all aspects of Grant Finance.

Title: The Pros and Cons of Corporate Bank Loans Author: William Lee Article: The first thing that comes into a prospective business owner's mind when sourcing for money to start up their business is to go to the bank. It's convenient, safe and regulated, why would you go anywhere else? But people must keep in mind that for most things in life, there are its pros and cons. Before you jump on the corporate banking business loan bandwagon, take a while to consider your options and make an informed decision. The Advantages Convenience and multiple loan options - Besides a standard business loan, banks can provide a selection of loan choices for you to consider. Even non-commercial loans that are able to be used for business purposes including personal and home-equity. What's more is that there's probably a commercial bank no more than 10 minutes from your house. The bank has little to no control over how you spend the money - If the bank reviews your business plan and approves the loan to you, the money is essentially yours to do with as you wish. Since you are already in agreement with the bank on the interest rate for them to earn from you, they have little to no say what you do with the money. If you decide to use it all to travel the world instead of starting a business, well that's your choice (although not a very good one). This is a non profit sharing arrangement - Unlike business partners, venture capitalist funds or any other sources of capital, the bank is not entitled to any of your profits. Besides repayment of the loan plus interest, you do not need to split your profits between any other investors. Interest rates may be low - The interest rates the bank can offer may be lower than other sources of financing such as credit cards and finance companies. Although not as low as borrowing from friends and family of course. Commercial loans payments are often tax-deductible - You will need to check with your local tax department, but you may be able to get tax deductions related to the interest payments you are making on your business loan. The Disadvantages It may be hard to get a loan - Banks will probably require you to show them your business plan and convince them that your business has a chance of making a profit. If they don't believe in your product/ service they could easily refuse you the loan. This is to ensure that when they loan out money, they are sure to get it back. Also, standard business loans are often limited to pre-existing businesses that have a financial history of success. Application for a loan can be lengthy - Bank loans may require more information and a longer review process compared to other types of sources. Collateral is usually required - A commercial institute usually requires collateral on the business loan, although this would probably not be required from other types of lenders. This may be quite risky if the collateral that you have to put up is your house or other family possessions. You may not get all you ask for - Unlike a housing loan, which barely needs any persuasion to qualify for, you may not be able to get 80-100% funding for your business. The return on housing loans is so much better for banks that for a business loan, unless it's quite small, you may only receive 75% of what you ask for. This varies from bank to bank. So weigh your options before taking a corporate loan from a financial institution such as a bank, it may actually be better for you to find other sources of funding. Friends and family are always a good place to start. Just consider the pros and cons as laid out above and it will help you to come to an informed decision. About the author: William Lee gives business advice and tips to those who wish to know how to start a business, but just never knew where to look. From his blog you can follow the link to The Business Suit, an online forum for like minded business people. This article is copyrighted, all rights reserved, and it may be used only if kept entirely intact with the author's name and URL. http://xanydude.blogspot.com Title: Finance Loans and Credit Rating Author: Ronald Firquain Article: Dealers typically sell your contract to an assignee, such as a bank, loan company or credit union. Compare current rates being offered by contacting various banks, credit unions or other lenders. Errors or accurate negative information can impact your ability to get credit or your rate. Determine how much you can afford to spend on a monthly payment. Negotiate your loan or lease arrangements and terms. Compare annual percentage rates and financing terms from multiple sources such as a bank and credit union. Be aware that your credit history may affect the rate you are able to negotiate. A longer term contract may mean smaller monthly payments than a shorter term contract, but will result in more money paid over time on your contract. Examples of less favorable terms include higher charges or less money than you requested. The law protects you when you deal with any creditor who regularly extends credit, including banks and small loan companies, retail and department stores, credit card companies, and credit unions. Regulated by the Swiss Federal Department of Finance, it has been providing unbeatable 24 hour online currency trading execution since 2002.Financial consultants will help you properly handle your finances. If you find your in a poor state consider getting the advice of a financial consultant. Be it any personal requirement or any professional financial need, with these loans you can arrange a meeting all these requirements. Numerous financial institutions and banks offer secured loans for homeowners. By attending one of his Wealth Builders Program, one can have a better plan and picture for his life. Whatever method you choose, it is always good to pay the loan off very quickly because the charges can add up over time. People can also pay off the loan fee and a portion of the principle before it is due. Yahoo Finance contains the most updated information on the net. If you want to start investing and want to learn the basics about planning and stock market, the category of Investment References and Guides on Yahoo Finance directory can be a great help to you. Most banks can offer a wide variety of loan packages designed to expansion of an already existing small business. An example of this would be the expansion of small business with a proven track record. We never know from day to day how our finances will be affected. Any of these situations could easily bring your life to a standstill and it can only get worse if you do not have the necessary finances to pay for such needs. Be disciplined about your finances and focus on paying of the smallest debts. Home equity lines of credit that used to help expenses are now in big danger. Specialized web sites offer the possibility of getting online undergraduate degrees such as bachelor of business, administration, management, human resources, criminal justice, finance or international relations. While this asset can in theory be anything you own, in practice the only thing of value that most people can secure their loan against is their home. Without close monitoring of budgets , the firm may find it experiencing cash flow problems. However, there should be sincerity on the part of the company or else trust will be destroyed and that would really hurt. Take control of your finances as much as possible. By the time the child comes of age or first gets involved, they might find that they have years and years of identity reclamation ahead of them. All of the costs, whether closing costs or interest, are financed. Now all of the properties on one large loan and have their personal credit clean to obtain the best available financing for future purchases. The International finance Group, a member of the World Bank Group has become a partner with an investment of 160 million, raising the total capital to 660 million. If you are planning on buying a new car, be aware that the financing obtained by the dealer, even if the dealer contacts financial institutions on your behalf will not be the best bargain you can get. When home buyers are looking for a new mortgage, or going to refinance an existing one, they typically pay close attention to the interest rate associated with it. If you have a modular home that you want to refinance, talk to several mortgage companies in your area. What you need to do to refinance depends on the type of loan you already have on your home. About the author: Ronald Firquain is a writer, marketer, entrepreneur, webmaster and has 18 years of computer knowledge. finance tips Title: How To Find Financing For Your Small Business Franchise Author: Candice Clem Article: If you are considering or have already decided to start a small business franchise, you may be wondering what the next steps are to get your small business up and running. While there are quite a few things needed for your small business such as a good business strategy, well thought-out business plan and possibly a team of partners and employees, the biggest obstacle you'll most likely face will be financing. There are quite a few ways to finance a small business including small business loans, groups of investors or even financing directly through the franchisor, and while each option will get you to the same end result of opening your small business franchise, it's important to weigh the pros and cons of each form of financing. With that said, let's take a more in depth look at a few of the most popular ways to find financing for your small business franchise. Assuming you don't have hundreds of thousands of dollars tucked away somewhere that you're going to use to start your franchise, a small business loan is going to be the most common form of financing for your franchise. The good news about getting a loan from a bank is that most banks and lenders will be more willing to award loans to small business franchises than to other types of small businesses simply because facts show that small business franchises are more likely to succeed. While there are no guarantees in any business, statistics have shown that over the course of ten years, non-franchise small business opportunities see a paltry success rate of less than 20% while small business franchises succeed 92% of the time. Banks and lenders are all about numbers and statistics, so seeing success rates like these will not only help you get a loan even if you have been turned down for a traditional small business loan, but you may also be able to negotiate a lower interest rate or a higher initial amount on your loan if it's for a well established franchise. A great alternative to getting a small business loan from a bank or lender is to put together a team of investors to raise the initial capital needed to start your small business franchise. This could be just one person or a team of ten or twenty people, but either way you'll need to be aware of a few of the pros and cons of having investors. Depending on how you structure your business proposal, your investors will get a percentage of the profits that the business makes and potentially a percentage of the gross income whether your company makes money or not. Essentially, your investors can be thought of as partners or shareholders. In the typical investor situation, your investors will take a high percentage of the profits until they recoup their investment and then will continue to earn money (although it will be a smaller percentage) indefinitely, assuming the business continues to make money. An example of this model working well would be if you and a few friends or relatives went in on the business together and plan to all contribute time and money to the business. If you are the type of person that wants total control of the business and you don't like the idea of sharing your profits with your investors, then the investor model probably won't work well for you. If you do choose to go with a group of investors, make sure that you carefully construct your business proposal so that it protects you and your business financially. You want your investors to be able to make money off of the business, but you don't want the business to suffer financially or have cash-flow problems because you've agreed to pay your investors a set amount each month despite the success or lack thereof of the business. Finally, a third option that is becoming more and more prevalent with small business franchises is direct financing from the franchisor. Not all franchisors offer this type of financing, but many larger franchisors are beginning to see the benefit it brings to them and to their franchisees. The basic protocol here is that the franchisor would evaluate the franchisee's (that's you) credit and consider a few other factors and then make the decision to finance. From there, you would receive the money to cover the franchise fee and all of your startup costs plus you would have the option to negotiate more money to cover the first few months operating expenses. This benefits the franchisor because it allows them to sell franchises to more people and they not only make money from the franchise fee, but they will also make money from the interest paid by the franchisee each month. The benefit it provides for the franchisee is that this is often one of the easiest ways to get financing for your franchise and the franchise will also be able to give you a much more accurate financial picture than the bank would be able to give of what's required to own and operate their specific franchise. Bear in mind that interest rates will vary depending on the franchisor, so while in many cases it will make sense to go with direct financing, with certain franchisors, you'll spend more money in the long run than you would with a bank loan by financing with the franchisor directly. Hopefully you've gotten a good idea of the financing options available for small business franchises, but if you still have questions, or if you'd like to get some more in depth information, consider a call to FranChoice. FranChoice is a consulting company designed to take even the greenest of entrepreneurs, show them which franchise will work best for them and teach them all the intricate details of franchising. FranChoice not only helps prospective franchisors figure out the details, but also has it's own group of consulting franchises, so whether you need some info on franchising or if you'd like to start your own FranChoice consulting franchise and help others get franchise info, FranChoice could be a great choice for you and your new small business franchise. About the author: Find more information about small businesses at SmallBusinessSale.com

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