Unlock the Secrets to Business Loans

Unlock the Secrets to Business Loans
Every business owner has been down this path before.
Clueless about why their bankers have rejected their loan
application. No reasons were given or they were not
specific in their explanation.

Understand the mentality of your banker

You have been with your local bank since the start of your
business and you have been happy with them until the recent
rejection of your business loan. You wonder whether they
have detected that times are less than rosy for you right
now. When you probed for answers your banker said that he
doesn't know the exact reason but it could be due to a
variety of reasons. What your banker is not telling you is
that he has all the information of your business and he has
run the ratios and looked at your credit history and finds
it lacking. But he can't tell you about it so he hems and
haws and offers you a different type of bank product. Like
a whole lot of use that would make to you right now.

Consider looking for another bank, one that does not know
that much about you as they would have lesser information
to run the ratios. That increases the probability of your
loan being approved.

Understand the risk profile of your industry

Bankers are conservative people. That's because they are
dealing with other people's money. They have to ensure that
they are not lending funds to people who are not involved
in vices like terrorism, drug trafficking, money laundering
and the list goes on. The same goes for certain high risk
countries which your company may be dealing with. These are
like red flashing lights to reject your loan without even
looking at your application.

Be honest about your business and personal liabilities

Nobody likes to be honest especially when it comes to
revealing the truth about the amount of liabilities they
have. It is an issue of ego and most people would
conveniently miss out a few details about their personal
loans or the amounts. If you would like to have your loan
approved, help yourself by helping your banker by telling
the truth. The fact is that all these missing details would
surface later on in the credit bureau report. The report
has an extensive list of details on the credit facilities
that you have with the banks in the country and some of
which could be detrimental to your loan application.

Prepare for the interviews

Whether the interview is going to take place over the phone
or in your banker's office, be prepared for it. Being
prepared means having a brief description of your company's
history, principal activities and most importantly what you
intend to use the funds for. Suit up if you are meeting the
banker as you need to portray the aura of success and
confidence. After all you could be walking away with a
large sum with no collateral save for your personal
guarantee.

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Joyce Leong is a consultant who helps companies with their
business financing needs. For Joyce's free Business Tips
newsletter, please visit http://www.businessfinancingpro.com

Save Your Credit With Debt Consolidation

Save Your Credit With Debt Consolidation
A lot of people are having debt problems these days, and
the problem does not just affect lower income people. In
some areas, home foreclosures are occurring at an
unprecedented rate, and people who have always had
excellent credit now find themselves unable to keep up the
payments on all the debt they have incurred.

Although debt problems are complex and can take many
different forms, many people find themselves in trouble
from irresponsible use of credit cards. Lenders bombard
consumers on a daily basis, whether on tv, through the
mail, or by email with "special offers" for people opening
a new account. Then, they offer incentive programs to
reward those who spend a certain amount of money with their
credit card or line of credit.

Some debt problems are simply unavoidable. Cars break
down, major appliances fail, and home repairs must be done.
Debt, especially with higher interest credit cards, can
add up quickly. If your debt grows to the point that you
can only afford to make the minimum monthly payments, you
will almost certainly find yourself in financial trouble.
Before late payments cause you to fear answering your
phone, you should explore debt consolidation.

Debt consolidation involves paying off multiple debts and
consolidating them into one larger loan. Ideally you will
want to get a lower interest rate on the consolidation loan
than on your current debt, but even if you cannot, the
payoff time on the debt consolidation loan will normally be
longer than the time left on your current debts, so you
will still be able to lower your monthly payments
considerably.

The good news is that even with poor credit you may still
qualify for a debt consolidation loan. You will pay a
higher interest rate than would someone with immaculate
credit, but if you are consolidating high interest debts,
the interest rate on your new loan will probably be lower
anyway.

If you happen to own a home, you have another form of debt
consolidation available to you. Leveraging the equity in
your home is excellent way to consolidate your debts and
get a lower interest rate if your credit is less than
perfect. You can choose to refinance your mortgage or
apply for a home equity loan. The catch is that if you
fail to make timely payments on your loan you will be at
risk of losing your home to foreclosure.

An alternative to a debt consolidation loan is to contact
your individual creditors and explain that you are having
difficulty making your payments. More often than not they
will be willing to work with you and help work out a
payment plan that you can afford. Lenders would prefer to
accommodate customers who are sincerely interested in
repaying their debt, than having to resort to costly
collection fees and possible legal action.

If contacting your creditors is disagreeable to you, many
reputable credit counseling firms will be glad to take over
this task for a fee. They are professionals who deal with
creditors every day, and they are often capable of getting
the interest rate reduced, or the interest on the debt
completely eliminated. Be sure to check the company's
reliability report with the Better Business Bureau.

It is better to deal with debt problems in the early
stages, before your credit has been damaged, or worse, you
face bankruptcy. Debt consolidation is a practical way to
simplify debt repayment, save money, and prevent financial
disaster.

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Gregg Pennington writes articles on a number of topics
including loans, debt and credit. For more information
about debt help and credit repair visit:

http://www.onlinemoneysources.net/debt-and-credit.html