Borrowing Without a Collateral: 8 Things to Know About Unsecured Loans

Running any business has its ups and downs. You will encounter financial challenges every once in a while. Unpredictable emergencies that need to be addressed within the shortest time possible. Maybe you need to replace some equipment to allow smooth operation of the business. Or you could be having an unsettled loan that could make you lose your assets if not paid on time. What would you do? Simple, apply for unsecured loans and forget all these problems. Here’s all you need to know about these loans.

Borrowing Without a Collateral: 8 Things to Know About Unsecured Loans - loan image

  1. No Collateral Required

Unlike in secured loans where you need to pledge legal property or assets as collaterals, unsecured loans do not require any collateral. So you won’t have to worry about losing your legal property or assets should you default. So, in case you’re having a personal emergency or you need some funds to open or expand your small business, applying for this kind of loan will be much easier. Don’t allow yourself to suffer a financial hiccup just because you have no assets or property to pledge when you can apply for an unsecured loan today. You can check UnsecuredFinanceAustralia.com.au for details.

  1. Less Background Checks

In the case of secured loans, the lender must do thorough checks to determine your credibility which could even include your lifestyle audit. You will also be forced to secure the loan with a collateral, which you’ll risk losing in case you default. But with unsecured loans, your creditworthiness is all that matters to the lenders. And if it’s all good, then what are you waiting for? What if you have no credit score? Again don’t worry, unsecured loans will still be the best way to build your credit score which will increase your loan limits and loan periods. But you must ensure that you pay for the unsecured loan on time.

  1. Real-Time Loans

Perhaps the main reason that you will go for an unsecured loan is that you need some fast cash for your personal use or for the business. And if the loan is to take days for it to be processed, it would cause some inconveniences. You could lose your loyal customers or the good paying contract you might miss because you lack some equipment which is not a good thing. But this is not the case with unsecured loans. The loans are very convenient in that when you apply for the loan, it will be processed within the shortest time possible and you can comfortably sort the financial issue you were facing.

  1. Easy to Apply

Initially, you would be required to go to the lenders and fill multiple pages of papers when applying for the loan. You would then go home and wait for the lender to consider your application contact you if you’re successful. This means you’d go to the bank a couple of times and might not get the loan. But not anymore. The technology is advancing and the lenders are also going digital. A majority of the lenders nowadays have an online presence where you can apply for the loan. All you’ll need to do is to log on to their websites – which are easy to navigate – and you’ll find the online application form. You’ll then fill the form and upload your address proofs, national ID and other necessary details.

  1. Credit Is a Reusable Resource

When you apply for an unsecured business loan, you will be given a set limit by the lender and as long as you will pay for the balance, you can reuse the credit anytime you need to. Despite the fact that the lender will only give you smaller limits because of loan security as compared to secured loans, you can negotiate this limit provided you’ll be willing to meet the additional terms. One main advantage of this option is that it will eliminate the hang-ups usually experienced with cash advances and traditional loans. So you won’t have to stress yourself again about constantly re-applying for funding.

  1. Reasonable Loan Term

The length of the loan you will apply (if awarded) will be used to determine the amount you’ll be paying on a regular basis. If the loan life is longer, the repayments will be lower. Unsecured loans are known for their short-term characteristic. “Isn’t this a disadvantage?” Well, yes you may not be allowed to extend the loan duration to, say 10 years. But to your advantage, you’ll be out of the financial obligation within a very short time and relieve yourself the loan repayment pressure. But of course, this will be so only if you pay for the loan on time. Defaulting will attract more fees and this will mean you’ll have to pay way more and for a longer period also.

  1. Flexible Loans

The amount you’ll get in the case of unsecured loans is significantly less than that of secured loans. But this doesn’t mean you won’t get enough loan for your business or personal emergency. If you have a good credit score, then you will qualify for a much higher loan amount. And the more the amount you take, the lesser and more affordable are the rates charged. And this will be to your advantage, especially if you’re taking the loan to start or expand your small business. You will also appreciate the flexibility in the repayment of the loan.

  1. There are Associated Fees

The unsecured loan that you’ll be awarded will have different ranges of the fees associated with it. You should ensure that you’ve considered all the fees before deciding on the loan amount and loan term to go for. Common fees associated with the loans include early payment, withdrawal fees, servicing fee, insurance, establishment fee, and early exit fee. Establishment fee is charged to your account at the commencement of the loan when it is deposited into your account. Early repayment fee applies if you decide to pay off the loan sooner than the agreed time.

Conclusion

It is very important to understand the essential facts of unsecured loans before going for it. And lucky for you, all the information you need to know about unsecured loans have been clearly explained. And the fact that the loan does not require a collateral makes it the best option for you when you’re having a financial emergency, especially in your business. While most lenders can give you the loan even for recreation purposes, do not rush to taking the loan unless you need it to save your business. Or if have a clear and effective plan on how you’re going to pay back.

 

What should you teach your kids about money?

Kids may not understand the details about money. They may not know, for example, the cost of the lessons that they so love so much. They may not get that when you buy groceries, there are different items that cost different amounts—even types of cereal for example.

But that’s perfectly natural: Kids haven’t yet had the life experience that it takes in order to accumulate those pieces of knowledge that guide you every day. But just because they haven’t gained those experiences doesn’t mean that you can’t impart age-appropriate wisdom to them. How you do it, though, is another question.

For example, you’d be wrong to assume that kids don’t know when there’s bad news or when there are financial pressures that are impacting daily life. What you need to do is figure out how to explain things to them in terms they can understand. What else can you do to teach your kids about money? This graphic explains it.

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6 Smart Ways To Invest For Your Children’s Future

Regardless of how untroubled about future some people are, it all changes once they become parents. The moment the baby arrives everything changes, especially our nonchalance toward money and savings. Only, this time is not just about rainy days that may come, but also the bright, shiny days when our kids are no longer drooling toddlers, but almost adults with their big dreams and life goals that they plan to achieve. Aside from unconditional love and proper upbringing, it is the parent’s main responsibility to make sure that their kids will have a good starting point in life once they leave the nest.  Saving money and investing in their future is a long-term project, so read on to find out more about it.

investing for your children's future - family finance image

 

Take care of yourself first

Although this may seem absurd, rest assured that it is one clever way to ensure a brighter future for your kids. Before starting to make plans about investments and children’s saving accounts, make sure to start saving for your retirement.  In addition to that, consider getting a term life insurance, as it doesn’t cost a fortune, yet it does leave you at ease. Also, filing a will is a smart move, even if it seems too early. All of these measures are nothing else but caring for your little ones as you wish to release them of responsibility to financially take care of you in your old age.

Saving accounts

Saving money this way is traditional and perhaps the safest way to put away some serious money for your kids. Even though interest rates are low and taxed as income, keep in mind that bank saving accounts, unlike some of the investments, are completely risk-free. There is plenty of ways to set up a children saving account as well as saving options for children. For instance, in the UK, you can set up a saving account on behalf of children, and when they turn seven, they can start managing their account. Great lesson in money handling as well as adopting saving habits.

Investing in steady growth

Considering low rates, having a saving account may not be the best opportunity out there. There are plenty of financial products and saving plans that will allow you to achieve your goals with much higher interest and substantial return over time. It is a combination of investment strategies and savings that fits your planning horizon and risk tolerance. For instance, couples in Singapore save money for children’s future by investing in unit trusts and education endowments, which are quite flexible and risk managed option, as well as great opportunities for long-term growth. However, these types of investments do require a reliable financial advisor.

A specific education savings plan

Having a well-educated kid costs arm and leg, so start putting money aside timely. There are saving plans that ensure that all the money, including interest, is directed to cover qualified education expenses. These are tax efficient and relatively safe saving plans that hold parents as account owners and children as beneficiaries. In Canada, this is RESP (Registered Education Savings Plan) and in the US is 529 plan (or College plan). Still, aside from the investment risk, there is a possibility that your child will not wish to go to college. In that case, you can change the beneficiary and still spend money on education. Spending money on unqualified expenses will result in penalties.

Try investing in commodities

Investing in commodities is a smart way to make money for the future, but not every commodity can stand the test of time and fluctuation on the market. Instead of investing your money in energy or agriculture, stick to the rarest and most valuable commodity of all – diamonds. It is not for the rich people only, since you probably have one already, on your engagement ring. Safe investing in diamonds involves learning the basics on how to properly diversify your investment portfolio. Also, monitoring the diamond market can be of great use, since lately, there is a big demand for naturally colored diamonds.  Look for rare pieces and rest assured that their value will increase over time.

More ways to save money

Find the way to create passive income, or in other words, way to make money while you do other things. For example, if you have additional space, rent it out via AirBnB. Also, keep in mind that all of your current possessions are frozen money at the moment, so sell things that you don’t need and earn. You can sell outgrown clothes and old toys, cribs, strollers, sports gear, etc.

Conclusion

The world is an expensive place and future is costly. Still, with some planning and logic, it is possible to ensure a good life for your little ones.

How To Celebrate Your Birthday For Free!

Think back to your last birthday: What did you do? Did you throw a party? Go out to dinner with friends? Treat yourself to a mini shopping spree or buy that big-ticket item you’d been eyeing? Now think: How much money did you spend?

Your birthday is a day to feel pampered and special—but it can also be a day that gets expensive, fast. If you’re looking for a way to celebrate big without spending bit, look no further than birthday freebies.

From restaurants and retailers to movie theaters and arcades, there’s no shortage of ways to have fun and save money on your birthday. In fact, so many places offer free birthday stuff that you can celebrate all day—from a special breakfast in the morning to birthday cake at night—without spending a dime.

To help get you started, Wikibuy created an infographic showing you all the ways to have a free birthday. Check out the full visual below, and get to celebrating.

Free birthday stuff

 

Your Complete Guide To Buying A Motability Vehicle

There are lots of different innovations that have been designed in order to help individuals with physical disabilities have a much more comfortable life. One of these is the Motability vehicle. There are many different types of Motability vehicles available at present to try and help individuals take more control of their ability to get to different places. This ranges from those that have been designed to take passengers who are in wheelchairs to cars that have been constructed in order to allow people with certain disabilities to drive. So, how do you choose the right Motability car?

Your Complete Guide To Buying A Motability Vehicle - car dashboard image

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Steps to take first

If you are looking to drive a Motability vehicle it is imperative that you have a driving license which is up-to-date. If you are yet to inform the DVLA (Driver and Vehicle Licensing Agency) about your disability you need to make sure you do so. They must be aware of any type of condition that can impact your ability to drive. This does not mean you won’t be able to drive at all of course. There are many instances whereby adapted controls and changes like this are all that is required, which is where your Motability car comes into play.

Financial aid available to you

The next thing you need to do is look for financial aid via the UK Motability scheme. What is available to you all depends on your disability and other personal factors. There are many different opportunities at your disposal. These schemes will present that with the chance to use grants and subsidies in order to purchase or lease a car which is suited to your physical condition. You will typically need to have one of the following in order to benefit from the Motability scheme; war pensioners’ mobility supplement, armed forces independence payment, PIP (personal independence payment) enhanced mobility component and/or DLA (disability living allowance) high rate mobility component. If you are applicable, you can benefit from the likes of a new or used car on hire purchase from between two to five years or even a brand new car on a three-year contract hire lease. There are also nearly new vehicles too, like nearly new Vauxhall cars and Ford cars that have been adapted to help those with disabilities, so you have plenty of options available.

Choosing the right Motability car for you

Once you have done this, you will then be in the position to select the right Motability vehicle for you. There are so many different factors that come into play. Make sure you read reviews that have been left by others who have used the vehicle. This is the best way to get an honest assessment of what it is actually like and whether it is worth acquiring. In addition to this, you also need to think about how you are going to get in and out of the vehicle and how many passengers are likely to travel inside. Furthermore, don’t forget to think about your typical surroundings either, such as what the parking is like at your home. This will impact aspects such as vehicle access.

The important thing to recognise from this blog post is that there is a wealth of opportunities for those who are physically disabled when it comes to Motability vehicles and, therefore, it is worth investigating whether there is something for you.