No Shortage Of Lending Solutions
While an “angel” investor may come along and buy you out of debt, or the barest possibility of crowd-sourced financing could pull your debt from its position crushing your shoulders, this is unlikely. The reality is, when you need money, your most likely option is going to be a lending agency of some variety.
There are good lenders and bad lenders, and it’s very hard to tell the difference between the two. Bad lenders are going to do their dead-level best to appear as though they are “good” lenders. It’s easy to see why: if the bad guys looked like the bad guys, who would knowingly work with such a group?
With this in mind, there are a number of things to consider before you get in touch with any agency. Remember: it is to their profit that they manage to acquire as many clients as possible. So whoever you talk to will have the veneer and tactics of a salesperson. It’s better to know what you’re looking for and have an agency in mind before contact.
Some Tips Going In
Look for low APR (Annual Percentage Rate) on loans. The lower the interest, the better. Acquiring a fixed-interest rate is definitely to be recommended, but this will depend on your credit. Bad credit will result in a variable interest rate. Still, most rates will be at a certain level of increase which remains constant for a fixed period of time.
Be careful to know the distinction. A sales lender will say: “Well yes the rate is fixed—for one year.” That’s not what the advice blogs mean by “fixed-rate interest”. They mean interest that remans static throughout the length of the term. The longer your loan takes to pay off, the more the lender makes. Increasing interest compounds this.
Remember also that a loan is not “free money”. It’s an advance against potential earnings. While it is always advisable to live within or below your means, going the loan route can allow you to expand business or personal financial stability into arenas that wouldn’t be possible before: you can capitalize on otherwise unavailable opportunities.
This is especially true in small business. Until you’ve built up a financial cushion that can float you for several months—but more realistically, about a year—you’re going to be in the need of a regular credit line to maintain operations. This means having a working relationship with a lender. So look online for reviews, and see what’s available.
Using Available Professional Assistance
There are authorities specifically providing lender reviews like PersonalLoan.co, who offer those that need resources the ability to: “Find…personal loan services…[as well as] compare on discount rates, fees, ratings, features, services, mobile capability, accepted cards, and more.”
Services of this kind don’t just show you the lenders requisite to your needs, be they personal or business-related, they also compare competitive lenders to help you get the best possible deal. That said, if you curtail expenses as much as possible regardless of the lending solutions you come up with, you’ll have less trouble paying lenders back.
If you’re smart about it, through things like diminishing the level of employee turnover, sustainable energy, cloud computing, internal and external apps, SEO, owning office space rather than renting, and effective outsourcing, you can really diminish recurring overhead costs.
Curtailing expenses during your regular operation cycle provides necessary capital for remunerate of creditors in a timely manner, making it so even low-end lenders have the loan paid back before the initial interest period can elapse. If you’re strategic about it, you’ll be able to get better, more trustworthy loans.