What You Need To Know About Electronic Payment System

During this highly technological age, cash is trying hard to compete with electronic money, since nowadays a lot of people choose to use their virtual wallets. Here, you will read about the pros and cons of using an electronic payment system.

It is plain to see that electronic payment systems have more advantages than traditional banking services. Let’s see:

  • Saves on time

Money transfer from one virtual account to another may only take a few minutes, whereas a wire or postal transfer may take a number of days. Besides, you have to spend some time to go to the bank or post office and wait in line.

  • Controls expenses

Even if a person is willing to control his disbursements, it can take a lot of patience to jot down all the expenses, and this takes up a huge part of the total amount. On the other hand, the virtual account comprises the history of all the transactions, including the store name and amount spent. Best of all, you can check it whenever and wherever you like. In this case, an electronic payment system works to your advantage.

  • Reduced loss and theft risks

You will not make the mistake of losing or leaving your virtual wallet behind, and it can never be taken by robbers.

  • User- friendly

All services aim to reach out to a greater number of audiences and so, their interface should be easy for users to understand. Moreover, users can always ask help from the support team since they work 24/7. You can receive an answer by means of the forums as well.

  • Convenient to use

As long as you have access to the Internet, you can carry out transfers anytime, anywhere.

After discussing the advantages that come with using an electronic payment system, it is essential to talk about its disadvantages as well:

  • Restrictions

In every payment system, there is a limit with regard to the number of transactions you can do per day and the maximum amount you can withdraw.

  • Risk of Getting Hacked

Risks can be reduced when you follow the security regulations. This is comparable to the risk of being robbed. The situation can get worse when the processing company’s system breaks down, since this may lead to the leaking of confidential information on the online cards, as well as its owners. Though some electronic payment systems do not launch plastic cards, they can however be involved in Identity theft scandals.

  • The problem of money transfer from one payment system to another

Most of the time, electronic payment systems do not cooperate with one another. If that is the case, you can use e-currency exchange services. However, it can consume a lot of time when you do not have a service you can trust for this purpose.

  • Lack of Anonymity

Since the database of the payment system stores all your transactions – like the name of recipient, amount and time – the intelligence agency can access all your information. Decide on whether that is good or bad.

  • The Need for Internet Access

When you have no Internet connection, you cannot transact on your online account.

 

Tips To Face When Hard Money Loans Are Utilized

Owners of commercial properties have capital needs for varied purposes such as purchase and renovations. In a perfect world the owners of the property would seek out conventional lenders such as banks and credit unions since they would most likely offer the lowest cost of money. Sometimes traditional financing is not available to the borrower or perhaps the borrower does not want to tie up personal funds to finance the project at hand.

In today’s more complex borrowing world traditional lenders cannot fulfill all of the needs of commercial borrowers. Often these borrowers look to Private Lenders to move their projects along. On the surface one may question why a borrower would be willing to pay much higher interest rates to Private Lenders (Hard Money Lenders) and may instead elect not to pursue their project until traditional financing could be found.

Hard Money Loans are typically short in duration and come with higher interest rates and fees when compared to traditional financing. For borrowers the analysis is about their end goal and the planned realization of profit from the completion of the project. Hard Money Loans play an increasingly important part in the commercial real estate world. Here are some instances where Hard Money Loans may make sense for borrowers.

Capital Improvements

If a capital improvement, repairs, or renovations are needed to the property which if completed would enhance the value of the property from both a valuation and/or rental income standpoint – a borrower may look to the shorter duration – higher interest loans as a wise move to achieve the enhancements to their properties. Often in these situation once the work is complete and the increased value and/or rental income is realized the borrowers can look for more traditional financing and pay off the Hard Money Lender and replace the loan with lower cost financing. Or they may look to sell the property and take the profit and move onto their next project.

Development

If a borrower is the owner of a piece of raw land and wishes to proceed with a “ground-up” development – Hard Money Loans may be a source of financing that they cannot find in the traditional marketplace. Lenders will look at a host of variables when assessing the credit worthiness of the project including the borrower’s development experience, collateral, timeline, borrower’s equity in the project, project presentation, and the financial reserves of the borrower. Weakness in one or a combination of these factors may cause a traditional lender to decline the project financing.

Hard Money Lenders will consider the same factors but often weigh them different in making their final determination. Conventional lenders will often put caps on the construction loans that they make as a percentage of the total development costs. In contrast, Hard Money Lenders may lend up to 100% (or more) of the construction costs if the analysis of the project warrants such. In other words – where conventional lenders are limited in the scope of the loans they are willing to make – Hard Money Lenders with experience in development may weigh the attractiveness of the overall project in their determination and ultimate decision.

Purchase of a Property

When borrowers are interested in purchasing a property often the timing of the purchase is critical. Hard Money Lenders service this market and provide an effective tool in the purchase process. Attractive real estate opportunities and strategic property purchases are often time sensitive. Traditional lenders are typically not able to provide financing quickly and thereby are often not a good alternative in these types of real estate deals. Hard Money Lenders are nimbler and able to evaluate, approve, and close loans quicker than traditional lenders.

Undervalue/Underperforming Properties

Undervalued properties or properties that are performing below market efficiency are good candidates for Hard Money Lenders. Traditional Lenders shy away from these loans due to the underwriting guidelines related to income statements and current expenses. In contrast Hard Money Lenders focus primarily on the value of the underlying property. With a properly constructed loan a real estate investor can obtain the required financing to provide time to improve the property, fill vacancies, increase rental income, and get expenses in line. Once the property is stabilized the investor can seek traditional financing to lower interest costs going forward.

Loan Underwriting

It is understood the credit worthiness of the borrower is a primary focus in the underwriting of a traditional real estate loan. Conventional lenders are also restricted by regulatory guidelines which limit how creative they can be in the loan approval process. Factors such as late payments, tax liens, mechanic liens, bankruptcies, foreclosures, and high debt levels all play a part in the underwriting of a loan.

Hard Money Lenders set their own standards concerning the level of risk they are willing to accept. These lenders can establish asset based loans whereby the cornerstone of the loan is the property itself.

Current restrictions in the traditional financing marketplace for those real estate investors that own more than 10 single family rental residences make it difficult to borrower additional funds. Hard Money Lenders are not as concerned about the number of properties that an investor owns rather they analyze the property itself and its attractiveness as an investment.

In closing, Hard Money Lenders can be looked at negatively because they charge higher interest rates to their borrowers. However, Hard Money plays a necessary role in the real estate investment marketplace as they fill a need that is created by the lack of traditional financing sources. Often the higher costs of the loan is well worth the purpose it serves. This provides investors the opportunity to participate in these loans and earn attractive yields with the security of a first position lien status.

 

Steps To Loan Are Equally Important

Today, you will find a range of bank loans and finances to choose from. However, there are a couple of loans that are yet to be heard of, but are important and can lend immense value to your overall portfolio. So now is the time to read about such exotic loan types that are not so much popular; but when it comes to significance, their importance is undeniable.

Portfolio loans

Portfolio loans are actually designed to get the loan applications of borrowers approved whenever they fail to complete the eligibility criteria for any other, more normal financing product. Such mortgage loans are largely funded by credit unions, small-sized banks, and other mid-sized commercial mortgage lenders. The reason why this loan type is found in credit unions and local banks is because they are way more home grown than any of the common mega lenders. Further, these lenders want to play a part in writing the growth story of their local economy. Now, let us read up on the factors why such loan types can be considered while you purchase your next residential or commercial real estate.

Why portfolio loans must be included in your investment portfolio?

The key reason why a portfolio loan must be opted is whenever you face recent credit issues. Many a time, a portfolio loan is opted whenever borrowers have wrecked their respective credit histories; perhaps their credit was destroyed because of either a nasty divorce or a business deal gone bad. This will, indeed, have a massive impact on the borrower’s capacity to earn for at least the next 12 months. And many times, this phenomenon forces foreclosure or possibly bankruptcy. So, in short, this loan type is needed whenever the borrower is going through a rough patch.

Blanket loans

Put simply, a blanket loan is a type of mortgage financing that will make the transactional phase becomes easier and quicker. Here, just a single mortgage will cover or secure more than a single parcel of property. They are, by and large, commonly used by commercial land developers and investors; however, in a couple of cases, they may even be used for residential transactions-in this case, the loan will act as a bridge between the new and the old mortgage.

Why should you opt for a blanket loan?

Blanket loans will easily eliminate any need for refinancing whenever the old home is sold. During such a period, whenever the portion that covers the old home is paid, the blanket loan will simply become a standardized mortgage that covers the new home or homes.

Cross-collateral loans

A cross-collateral mortgage is a loan that will use multiple (or at least two) properties as the collateral before the amount is lent to the borrower. This mortgage will be cross-collateralized against a range of properties and will provide additional security, which, finally, compels lenders to offer the loan. By and large, this loan form is offered by private banks as well as portfolio lenders.

Why cross-collateral loans are preferred?

There are two key benefits: The first one is that this loan is beneficial for lenders as they will get additional security. The second benefit is for the lender; now, as the lender brings an additional value (in the form of multiple properties) to the table, the borrower will have a lower LTV – and a lower LTV implies a lower price charged on the loan.

So here are the top three of the most unconventional residential and commercial real estate financing options that must be chosen by investors who want to bring diversity into their portfolios.

 

What You Need To Know About Lenders Mortgage Insurance

LMI is an insurance policy that protects the bank/lender where you have your home loan. Should you default on your mortgage the bank will repossess your home and sell it as quickly as possible, usually at a discounted price. These funds are used to repay your debit however if there is a shortfall the LMI will cover the bank/lender.

For example, if you purchase a property for $650 000.00 and take out a 90% loan you will be charged LMI on this loan, making the total loan amount approximately $597 000.00. Hypothetically two years on you still owe $590 000.00, the property has gone down in price and you have defaulted on your loan. In this case the property will be sold as quickly as possible for as much as the bank can get, perhaps $500 000.00 meaning the bank is set to lose $90 000.00. This is where the LMI policy you paid for will repay the remaining debit so the bank/lender has no loss.

This is all hypothetical of course however that is what most insurance policies are based around, a cover just in case the worst happens even though we all hope it never does.

Depending on how much deposit you have managed to save you may need to pay LMI on your loan. If you have saved up a 20% deposit plus stamp duty, or you have a property with available security to the same value then you won’t need any LMI as you are borrowing 80% or less of the value of the property.

Anything over 80% will incur an LMI charge and unfortunately the cost depends on the amount you are borrowing and the value of the property. There are calculators available or you can contact your Lender for an estimate.

Rest assure, LMI seems like a bad thing but without it so many people would be unable to get into the property market and whilst it is an added expense, the fee is charged to your loan after funding so it’s not more cash you need to come up with.

LMI is a great help to anyone who hasn’t saved the 20% deposit to get into their home however there is another option worth considering and that is using a security guarantor. This is when a guarantor can use cash or property as security to avoid paying any LMI.

 

Tips To Examine The Loans

There are or have been instances where your loan portfolio has been criticized mildly or severely by bank or credit union regulators and all your efforts in turning around quality of the loan portfolio seem to be futile. This can be frustrating especially if you spent a lot of money on hiring ‘experienced’ staff and retraining them. If you are at this stage, and you don’t want to be fired or have your institution shut doors, what you need to bear in mind is that there is still a way out of the predicament. You can still cleanup your loan portfolio and lay the foundation for better quality loans. One thing that you can do is to get the services of a professional loan underwriting and review services provider. The services of the professional will come at a fee, but the fee that you will pay will be nothing compared to the overall benefits that you will reap. But before you dive into hiring a professional, conduct some initial assessment of the professional first. Here are some of the things you ought to consider, on how you can find the best loan underwriting professional for your needs.

  • The background and the quality of the past work of the professional loan underwriter.
  • The commitment of the professional in following internal loan policies, the examiner’s guidelines and industry practices.
  • The breath of industry research data maintained by the professional loan underwriter.
  • The length and appropriateness of experience of the firm in the banking industry.
  • The loan underwriting techniques and discipline used by the professional.
  • The benefits that you will get from a professional as opposed to an in-house credit or loan officer

Some of the benefits that come with the service are as follows:

  • Good preparedness for examiners, thus avoiding criticism
  • Early problem recognition and opportunity for remedial action, thus avoiding revenue losses.
  • Excellent foundation for prudent loan underwriting
  • High return on low investment

When regulators review individual loans, they evaluate People, Purpose, Protection, Payment, Problem and Prospects. Accordingly, a competent professional loan reviewer should do the same by assessing individual loans, including repayment risks, analyzing financial statements for risk and debt service capacity, evaluating risk grades and their accuracy, reviewing collateral/security perfection and calculating Loan to Value ratios, analyzing guarantors’ credit history and Personal Financial Statements, comparing actual financial performance with projections, identifying lapses in documentation, reviewing compliance with lending procedures and policies and recommending practices and procedures to address findings.

 

Tips For Small Business Funding

When a small business needs funding, where does it turn? There are plenty of ways for a small business to gain funding, each with their own unique advantages. While one may be good for a particular business, another may be more suitable to the next business. It all depends on the preferences of the small business and whether or not it will get approved. For small business owners looking to move up in the world, check out this list of sources to gain capital fast.

  1. Banks

This is probably the first thing anyone thinks of when it comes to loans. After all, lending money to clients and collecting the interest is one of the ways banks make their profits. It’s usually pretty easy to get approved with a good credit score. However, as it was just stated, banks make money off interest. Therefore, the interest rates on traditional bank loans tend to be a little higher than from other sources, although it varies with the market rate and the credit rating of the applicant.

  1. Merchant Cash Advance

Although similar to a bank loan, a merchant cash advance is usually safer and generates less interest. First of all, getting approved with a company like Water Street Capital is a much easier process than via a bank. As long as business grosses an average of $10,000 a month it can start applying confidently for up to $500,000! The application can be submitted online and usually takes about 3 business days to receive the money, however, the business can use the money for an array of different needs such and advertising, payroll, expansions, upgrades and more!

The way the client pays back the loan is also fundamentally different and makes this option one of the best for small businesses. The business agrees with the lender to repay the loan with a small percentage of their sales every month (like taxes). The amount is automatically taken out every month and varies with the success of the business. If it has a slow month, it pays less and if it finds itself enjoy more profits, it will pay off the debt faster!

  1. Crowdfunding

While it can’t really be labeled a “reliable” source, crowdfunding has skyrocketed in popularity in the past few years with sites such as Indiegogo and GoFundMe. It can be a great way to gain investors for a small business looking to expand. If the product is popular enough or unique enough, it will surely gain backers. However, it can’t always be counted on to come through. If the business doesn’t receive enough investments to reach its minimum goal, it receives nothing. It’s not the source to turn to for large financial requests, but it has proven to be effective in the past, sometimes with businesses even generating millions of dollars!

 

When You Had Bad Credit Loans

When you fail to meet the financial objectives, it then compels you to look for a loan option. There are plenty of loan alternatives available, which are crafted to fulfill different aspirations of people from diverse backgrounds. Naturally there are some specific criteria that are laid down, when it comes to getting the loans. One such condition is to have a good credit score. This in turn increases the chances of derive the funds with utmost ease. At the same time, people with bad credit history will have a difficult time in borrowing the money, as the lenders will never accept their application. This puts them in a desperate situation. However, with the changing scenario, it is possible for these borrowers to acquire the much desired financial relief. With viable alternatives in the form of loans for bad credit, they will indeed get a chance to recover their lost credibility. Besides, the loans are approved without any guarantor, which to an extent help them source the funds with relative ease.

Beneficial Loans with Easy Approval

Under the current setup, resolving financial issues with an abysmal credit score is always a problem. So when you do seek the option of bad credit loans, it does help to bring about a huge transformation in to your situation. One of the most unique features of the loans is its easy approval. Discounting your past credit history, the lenders will make sure to release the funds in quick time. This also can be attributed to the online application process. Online application being devoid of any paperwork results in instant processing. All that you have to do is to fill the necessary details in the application form, based on the lenders’ website. Having endorsed your loan application, the Lenders will make sure to disburse the cash inside the same day. The amount released is deposited in to your bank account.

Helps to Enhance the Credit Score

With the option of bad credit loans, you end up securing the funds that in turn will help to satiate the various needs and demands. What you don’t really know is that you can utilise the loans to enhance the credit score. As the approved sum is relatively small, you will find it easy to pay off the borrowed amount within the clearly defined time period. In case, you fail to meet the deadline and continue to delay in making the repayments, then the situation may dramatically get bad. Apart from losing the financial credibility, the lenders will not offer any leniency. This is precisely why it becomes necessary to abide by the agreed terms and conditions. At the moment, you must give more importance to improve the credit score. At least, this way you will get a chance to recover from the financial redundancy.

Loans for Bad Credit with No Guarantor

Going by your credit history, it is clearly evident that no one in particular from your friends and family would prefer to act as a guarantor. In these circumstances, when you are struggling financially, the best you can do is to attain the option of no guarantor loans. These loans perfectly complement your existing scenario, as you stand to obtain the monetary help, without having to provide any human guarantor. In a way, you are now capable of making gradual recovery, without having to face any restriction as such. Of course you have to be mindful of the high interest rates. This was expected from the lenders as they are making it a point to offer you the funds, despite the poor credit score with no assurance in the form of guarantor. Naturally to secure the loans in this fashion, you have to make certain compromises.

It is not just about the high rates of interest that you have to consider. In fact for your own good, you must spend some time to check out the repayment schedule as well. There are plenty of lenders that you will come across. Some of them are genuine, while other may want to exploit your helplessness. This is why you must make it a point to source the bad credit loans with no guarantor from the legitimate lenders.

Given the dire circumstances, the loans for bad credit with no guarantor does ensure easy cash approval, which then helps you to get back on track.

 

Tricks To Get Perfect Loan

Sometimes accidents happen and things break down and we all need help financially. If your current gas boiler stops working then a new gas boiler installed can cost a good couple of week’s salary and if the television is knocked over whilst the cat chases the dog around the TV room, then how do we find the money to get replacements?

Not all of us our lucky enough to have money in the bank, we live in a society where saving our hard earn money can be tricky, we all have mortgages, rents and utility bills to pay. If we do not have siblings or parents to go to when we find ourself in that tight spot what can we turn to? Loans are a good option and can give you the finance you need fairly instantly.

The first thing to do is go online and visit a loans company. During the process of applying for credit the company will run your details though a program to achieve a Credit score, any bumps they find in the road in terms of poor score rating could hamper your chances of getting the money you require.

Why have I got a poor rating? There are many reasons why you might fall under the group of poor. The main reason is probably a late card payment, or even missing the payment altogether. Closely followed by an existing debt that you may have on credit cards, store cards or other cards. These will all show up in the overall score to ascertain if you can have the money.

Companies are fully aware that although some of us have a poor rating there are those that are trying to start again and look to the future. When you apply you have to give your personal information, bearing in mind that this information is important for the company to run the checks and will only be held by the company.

With this information they will look at any problems you may have had and also compare your current circumstances. For instance in the past you might have been on a lower paid wage and since then you have had a promotion and now earn twice as much as before. This will all be taken into account when running the scores.

A company that offer matching services, even though a poor credit score came up through the check, could still be able to offer you a variety of loans. They will pass your applications on to many different lenders to make sure that a deal can be found.

Choosing to go through a company like this will only show up as one application, not as lots of different ones which is a good thing for you and your rating.

Personal loans are known as unsecured, there is no collateral held against them but because of this they offer a higher percentage rate of payback. Credit scores can affect the percentage of the agreement given. The better the score, the lower the percentage rate.

We all want a quick decision when we apply for loans, but how quickly can I receive the money? If all of the relevant paper is filled in correctly, then you can have the money as quickly as the following business day. Which is good, as some emergency cannot wait for a week whilst a decision is made.

So if you need financial help, do not be put off that you might think you may have a poor credit history, approach a company that match loans and see how they can help you.

What Do You Need To Know About Loan Online

Many are aware of the stories floating around about others being taken advantage of by online lenders. Contracts that aren’t legit and schemes that basically set consumers up to fail. While these things do happen, there are also truly fair online personal loans when obtained from the right sources. Becoming in a debt owing cycle does happen though, but with a little bit of research this nightmare can be avoided.

Browse these suggestions to help get online personal loans for people with bad credit from good lenders and not those that are out to take advantage:

Check the reviews –
Online search engines are a great place to begin the search for reputable companies to get a loan from. First, check by name. If there are companies that one has heard of that’s a great place to start. Both happy and unhappy customers will express how they feel about doing business with them.

There really is no reason for a consumer to lie about service. They are likely blatantly honest. If there is any doubt, there are reviews on several websites.

Third party companies –
Big name lenders are always an option, but be wary. Sometimes they use their name and marketing allowance to draw in borrowers. One can save themselves some money by searching for third-party companies to secure online loans for people with bad credit. There are many companies that work with their own group of lenders that match with borrowers, which is a nice option.

Check for companies that are verified to give safe loans online. Expect that they decline any lenders they feel are bad giving the borrower piece of mind and saving them a lot of time.

Encryption is a Must

Be very wary of any online site that isn’t protected by software that is encrypted. Whether one knows about this or not, they need to realize that sites that are not safe could be hacked into and their personal information to include bank accounts, address, phone number and more could be stolen. This opens up a whole world of hurt for them so let this be a “must have” before applying for online loans for people with bad credit.

It’s easy to tell because sites that are encrypted will display that on the site, it sets them apart from the rest of the online lenders.

Do Some Personal Research
Before securing an online loan for people with bad credit, it’s important to determine what can easily be repaid. There are many online calculators that can help figure it out using debt to credit ratio vs. income and more. The good news is that a safe lender will only lend what a borrower can afford, and they will work with them on that to be sure they only make a smart decision.

Be Wary at All Times
If the lender refuses to answer questions clearly, or if the entire offer seems just too good then it likely is not. If the borrower feels unsure at all they should step away from the online loans for people with bad credit and explore other options. Things to ask about include:

· APR

· Consequences

· When the loan maturity date is

· Late fees

The borrower should ask many questions, and perhaps even make a list to be sure they haven’t forgotten anything. Building good credit is the goal so no one wants a loan that will put them farther in the hole. Thankfully there are many safe online loans for people with bad credit, no credit and more. No matter their credit score, every borrower deserves the best customer care possible.

 

How To Learn After Got Bankruptcy

Even if you know that bankruptcy is the right choice, it can be discouraging to think about the long-term consequences you’ll need to face after your case is resolved. Most people look back on their bankruptcy as something they never want to do again, but a situation they learned from. After dealing with your debt in this way, you’ll no doubt gain wisdom that will help you in the future or even help your loved ones avoid the struggles you’ve gone through.

Budgeting

Budgeting will be a part of your bankruptcy case and will become second nature after your debts are taken care of. A Bankruptcy Attorney can help as they discuss your case they can see how to best help your situation, you’ll leave with a comprehensive list of tasks and documents to complete. The next step before filing your case, you’ll need to take an online Credit Counseling Course. This class will not only help you decide if bankruptcy is the right choice for you, but a large focus of this class is also on budgeting. A second, post-filing class is also required, which will help you fine tune your budget further.

One of the most important things you can do to stick to your budget and plan for your financial future is to be aware of where your money is going. It’s up to you to not only create your budget, but to use the discipline required to stick to your budget. It’s OK to make changes as your priorities change, as long as you keep in mind that you only have so much money to work with. This might mean sacrificing in one area to save up for something you really want in another.

Saving

When you first file bankruptcy, you won’t have access to credit for a while, which can be a challenge. That’s why it’s so important to focus on building up your savings account. This way, you’ll have some money set aside for emergencies, rather than inadvertently getting into debt again. If you end up in a situation where you owe on a medical bill, for example, work with the creditor to establish a payment plan, rather than relying on credit cards.

Once you have some money in place to take care of emergencies, you can take charge of your finances further by saving up for important purchases or expenses. You’ll have the freedom to dream and plan without the worries of debt, even if the dreams need to be delayed a bit. With a goal in mind, it may be easier to say no to small impulse purchases.

Future Planning

Being in debt can reduce your freedom to live the life you really want to. Instead of deciding where your money goes and how it’s spent, you’re tied to debt payments. Bankruptcy can put an end to this stress and give you a new start. The lessons of rebuilding your credit and living on a budget will benefit you for the rest of your life.