2010 April 20 | Access 2 Knowledge

Borrowing money comes with different terms and different business loan rates that affect how much the loan actually costs you upon repayment. Your own financial condition and assets will also determine what rates are available to you. If you have a poor credit history, odds are your rates will always be higher than someone who has an FICO score over 700 will. That’s why it pays to shop around and do your research ahead of time.

Get Your Documentation Together

If you want the best business loan rates, you have to be prepared to argue that your case that you are not a business risk. That means pulling your credit history ahead of time and fixing any discrepancies. Dispute any inconsistencies and try to address a bad history before a lender decides to take a peek at it first. This way, if you know what’s already on there, you can make notes for lenders on the file if something appears bad, but is being disputed as valid or has been settled and just needs to be cleared off your history.

Make sure your financial records are in order. As a business, you may be asked to show your numbers to prove the health of your business via financial statements. You may be asked to show them your bank accounts or proof of collateral. When you’re trying to get a good rate, you’ll have to show that you have a strong financial standing and good future prospects too.

Understand the Terms of the Loan

Based on your financial history, you’ll know whether you even have a shot at a great business rate or if a potential lender is going to view you as a credit risk. Either way, there are loans available for a variety of situations, but the rates and terms will differ. Typically, the longer the repayment period, the lower the monthly payment, but also the higher the total amounts you pay. Add to that a high interest rate and a long term, and you can easily end up paying twice what you owe by the end of the loan period. Be sure to understand how much the loan actually costs when you are done and whether you can handle the debt load so that you don’t default before you finally pay it off.

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Finance | admin April 20, 2010 |
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We have all heard and probably used the auction site eBay. Today there is a new wave of auction sites that are making a big entrance called penny auction sites.  These new Internet Auction sites sell items where the bid price is set a penny and goes up from there. You join for free and maybe get a few free bids and then the game starts. What is alluring from a simple onlookers stand point is that you have an $800 item selling for $4.53. That sounds amazing and why can’t I win that. Here is how this auction works. Unlike sites like eBay where you bid on an item and you don’t win you are out nothing. IN these penny auctions once you bid the money is now put towards the item. So you can bid 4-5 units that may cost you .50 each but if someone outbids you that money is gone. The psychological aspect is quite interesting because the dollar is so low that you feel risking a few dollars to win a $800 item cannot be that bad. They are fun watch and if you step into the game make sure that you set yourself a limit or you could end paying a lot for nothing. This post was done in part as a review of internetauction.co.uk. They have just come online with a great domain name and will be compiling stories from across the industry on various auction types available.

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Blogging, Education | admin |
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Snagging a Rate That Saves You Money

A new type of auction

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