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Rebuilding Your Credit After Bankruptcy

The Steps You Should Take to Rebuild Credit After Bankruptcy

You may have recently gone through the bankruptcy process to put an end to the vicious debt cycle you were dealing with, but you’re now stuck dealing with a low credit score. Although it may not be ideal to have a low credit score, there are different steps you can take to improve your score over time. It may be a process, but taking the right steps now could help you increase your credit score a little bit each month, ultimately leading to a major improvement in just one year. Many people worry about the negative impact bankruptcy will have on their credit score, but it’s something you can change if you’re both patient and persistent. High street lenders are unlikely to lend to someone that has just been discharged from a bankruptcy but there companies around that specialise in providing loans to people with very poor credit scores, so this could be an option if you do need to borrow.


Obtain a Secured Credit Card

Start the process of building your credit off on the right foot by applying for a secured credit card. These credit cards are often offered to those with bad credit. Instead of just receiving a set amount of credit on the card, you’d need to pay a fee to receive a small amount of money on that secured credit card. You’re essentially paying a fee in the beginning as a safety precaution. The payment you make is commonly referred to as a security sum.


making small purchases

You can focus on building your credit by paying for small purchases with your secured credit card and then you can start paying off the amount you’ve spent in a timely manner. If you continue to follow through with this process, you should start to see your credit score increasing, even if it’s only increasing by a small amount over the span of several months. The great thing about the secured credit card is that you can get the security sum back if you decide you’d like to close the account at any point.


Apply For a New Bank Account

When you’ve got bad credit, some banks aren’t willing to work with you. They may not allow you to create an account with them, which is frustrating. However, because the banking industry is quite competitive, it’s possible that at least one of the different banking agencies would allow you to create a personal account where you can start saving funds.


Apply For a Loan With a Co-Signer

Obtaining a loan isn’t always easy when you don’t have the best credit. However, applying for a small loan with a co-signer who does have good credit could help to improve your chances of getting approved for the loan. You might not need a loan for anything specific, but taking one out and then paying it back within a short amount of time could help you bring up your credit score over time. The best thing to do is to make sure you’re not trying to take out a loan for too much money because you don’t want to end up falling behind again, getting into new debt, and then causing any trouble for the co-signer.

The reason many lenders are willing to provide a loan to someone with bad credit if they get a co-signer is that they’ll expect the co-signer to pay back what was borrowed if the person with bad credit doesn’t pay the money back to them. As long as you understand the terms and conditions that come along with the loan and you have a co-signer who is willing to help you out, you may be able to work on improving your credit score by taking out small loans from time to time.


Apply For Small Loans From Personal Lenders

If you don’t have someone who can co-sign for a loan, try applying for small loans from personal lenders. You may attempt to borrow a small amount of money that you’ll pay back as soon as you get paid by your employer. If the transaction goes over smoothly and everything gets paid back on time, you’ll have another good mark added to your credit report.

If you can’t find a local lender to provide you with a small-term loan, consider looking online. It may be possible for you to obtain a loan online where you’ll receive a deposit of the funds into your bank account in just a few business days.

It takes time to improve your credit score after going through the bankruptcy process. You may have decided to file for bankruptcy because you were dealing with too much debt and couldn’t find a way to get out of it. It was the right solution for you, but now you may be concerned about your credit score. It isn’t always easy to have access to different things or to even get bills in your name when your credit score is low.

If you’d like to have a better credit score, you can take the right steps now to get a higher score over time. Some of the different things you can do would include applying for secured credit cards, applying for bank accounts, applying for loans with a co-signer, and even applying for small-term loans where you’ll pay back what you’ve borrowed rather quickly.


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A Guide To Business Finance

Whether you are starting up your business or expanding it you will need finance in order to do so. This is especially relevant to new businesses that are just starting up. There are numerous avenues that you can approach in order to gain this start up finance and there are many different forms of it open to you; choosing the right finance that will benefit your business most is the important thing. There is a saying that states ‘it takes money to make money,’ this applies so much to new business ventures. For your business to become a success you will need a large amount of money to start off with that can be used to get your business set up. This money will be used to buy equipment, pay the rent on your business property, employ your staff and ensure that you have enough stock to get your business going as well as being used to pay the first few months of all your bills.

 Two of the main reasons why many new businesses fail to get anywhere beyond the starting point are due to inadequate business capital and poor management skills, which is why raising money is so important in the early start-up stages of business. Some ways in which people choose to fund their business idea is by using savings, but realistically not many of us have that sort of cash tucked away, which is why we require outside help. You could opt to borrow money from friends or family if they have the financial resources to help you or you could take out a credit card for the specific use of funding your business. All of the financial options that are open to you can be split into two sections, either debt finance or equity finance. Debt finance is classified as being money that is borrowed from varies different aspects. This is finance that is required to be paid back. Some examples of debt finance include: Bank loans, Credit cards, Overdrafts, Leasing, Asset financing.

All of these are the borrowing of money in one form or another and they will require monthly repayments that will have added interest. Most people however use their bank as the first call of gaining start up finance regardless of the fact they are going to end up paying more money back. Some of the advantages of equity finance include your investor being committed to your business and intended projects, they can bring valuable skills, contracts and experience to your business and they can assist you with strategy and decision making as well as often being prepared to follow up funding as your business grows.

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All You Need To Know About Business Finance

If you are an entrepreneur, then you know that there is always a need for small business finance to keep things going. Being able to get the money that is needed for your business means that you need to make several financial and non-financial considerations. Firstly, before you search for funding for your business, it is important to know what type of financing required. Would the business need debt financing (a loan for running your business) or equity financing (money that is taken from savings or investors)?

Small business finance through debt financing means taking loans from credit unions, banks and other traditional financial institutions. Among the loans that are available are short-term loans which must be repaid, with interest, within a specific period of time. Such loans may be termed as demand loans as the lender can call in the loan for repayment any time. Small business finance longer debt loans are normally used for financing assets like renovations or investments in equipment.

There are many businesses that make use of lines of credit as a source of small business finance. They make arrangements with lending institutions for a set amount of available credit that they can draw upon when need arises. Lines of credit allows businesses to use the cash when they need it and they only need to pay back the amount that has been used and interest is paid on the outstanding balance of the line of credit. Numerous lending institutions offer credit cards as a means of small business financing. These cards are used by establishments to finance their operating expenses. But, credit cards can be expensive because of the interest rates. The cards are ideal for use if the balance is paid in full monthly.

Small business finance through equity is normally used in a limited manner. Informal source of equity funding includes friends and family; while the formal sources include venture capitalists. Venture capitalists generally have a considerable pool of resources that allow them to finance ventures and participate in some of the more crucial decisions in the business. However, these capitalists conduct studies before making the decision to provide funding. There is also some equity small business finance that are received from people who are called as “angel investors“. These are normally people who have deep pockets and are willing to provide funding.

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Tips For Finding Right Equipment Finance for Your Business

The right equipment can help your business in becoming more productive and profitable. So, if you want to drive your business forward and you don’t have the available cash flow to invest in equipment, you can obtain finance for it. Business equipment finance can be used for purchasing new and used equipment or vehicles. It will help you in conserving your working capital for other purposes like inventory or operating expenses. Business equipment finance is ideal for established businesses who want to finance the purchase of: Cars, utilities and light commercial vehicles, Trucks and buses, Forklifts, Computing and office equipment, Printing, medical and manufacturing equipment, or Industrial plant equipment.  Choosing the Right Business Equipment Finance Arrangement, lenders/credit providers offer many types of business equipment finance options. You have to choose the right one in order to run your business smoothly. Here is a list of different types of vehicle and equipment finance arrangements available in the market:

Finance Lease, this financing arrangement allows you to use the equipment or vehicles and also lets you enjoy the benefits of ownership. The lender/credit provider retains actual ownership of the goods. Commercial Hire Purchase, in this financing arrangement, the lender/credit provider owns the equipment or vehicles during the hiring period (usually two to five years). And, when you pay the final instalment, ownership is automatically transferred to you.

Chattel Mortgage, it is an effective way to finance goods for business use. Under this loan agreement, you will borrow funds to purchase equipment or vehicles (chattel) and you will also take its ownership at the time of purchase. Against these benefits, you will provide the security for the loan to the lender/credit provider by way of a mortgage over the equipment or vehicles. Equipment Rental, it is an agreement between the lender/credit provider and you whereby the lender/credit provider buys the equipment or vehicles on behalf of you and rents it back to you over a fixed period (two to five years).

Seeking the Right Advice for obtaining the Right Business Equipment Finance. It is vital for your business that you have the right finance structure in place. If you choose the wrong loan package, you may end up hurting the financial stability of your business. To avoid such mistakes, you must consult an expert commercial finance broker. He/she has a thorough knowledge of the credit policies and standard requirements for business equipment finance. So, he/she will be able to provide you the right financial advice. You should also seek help of your accountant in understanding the treatment of depreciation and any tax advantages that may be available to you. So, this is how you can obtain the much-needed equipment finance for your business.

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