Secured Loans- My home made me a successful businessman

Right from my schooldays, I wanted to be a business tycoon. Owning a big departmental store and earning big money was what I always used to dream of. Nobody in my family was a businessman. All my relatives were either doctors, engineers, accountants or other professionals, but being an entrepreneur was what nobody even thought of.

I had decided no matter what others say or do, I'll have my own business and, somehow, convinced my parents for the same. Afterwards, my planning began. I looked for a reasonably spacious store in London's Church Street market, hunted for suppliers of all household items and also laid out plans for hiring some helpers. But, to execute my plans, I needed massive investment. The cost of my dream store was £200,000. To think of getting that hefty an amount from my or my parents' savings was expecting a bit too much, I guess.

Secured loans, I realised, would provide me the money I wanted. I decided to pledge my home as collateral. I knew that I have good enough equity in my house and so, I applied for secured loans online. Not to my surprise, I got many lucrative deals on the secured loans. I compared all the loans and took the help of a financial consultancy in doing so.

Finally, I decided in favour of a secured loan amounting to £187,000 @ 6.2% for 10 years on capped rate of interest and flexible repayment options. I enjoyed the benefits of 6 month deferred payments, and started paying when my business got somewhat set. The lender also didn't charge me for accelerated repayments. So, all in all, I got a wonderful secured loan. Now, as I wished, I am a proud owner of a successful business. Secured loans can really help you materialise your dreams into reality

Unsecured loans versus credit cards

At a time when people are finding it hard to honour their repayment commitments, wouldn’t it be wise if they start looking for some cheap source of finance. I think that the recent rise in interest rate has made the matter worse for the borrowers.

Still, we find that many people stick to their age old habit of transaction through credit cards. It is well established that most credit card companies charge an exorbitant rate of interest. That’s why sometimes I wonder if some people have so much money to waste.
In the recent past, the UK economy has seen a huge rise in the number of county court judgements, highlighting the level of bad debt prevalent in the society.

Unsecured loans are far better than credit cards or store cards since they involve less interest rate. If you think that credit cards are better just because they do not involve any annual fee or offer you Zero per cent schemes, think again. According to RK Hammer, a bank-card advisory firm in the UK, credit card companies took in $13 billion in fees last year, not counting $12 billion in late fees. So, even if your credit card issuer doesn't levy an annual fee, the sponsor has surely loaded it with some other convenient ways so that extra amount could be charged from you.

In comparison to credit card bills, cheap unsecured loans are much better. You can get unsecured loans at a rate that usually varies from 7 to 40 per cent APR.

All about secured homeowner loans

Let me give you wisdom on the fastest rising loan product in the UK financial market these days. Secured homeowner loans are a rage in the UK. The reasons, I guess, are obvious. Secured homeowner loans give the borrower a lot of benefits to choose from: a big borrowable amount (£250,000) and a long repayment term... 25 years.
These attributes facilitate better management of finances, apart from allowing the borrower to fund various monetary requirements.

Over the past year, there has been a tremendous increase in the number of collateral repossessions. This, I think, brought to light one thing, and it is something that secured loan borrowers have to be very wary of. The coruscating bevy of attributes that secured loans have comes with one deadly package – repossession.

I advise that people who borrow secured homeowner loans do so not out of greed, but through certain prudence and knowledge of what they are getting into. There is that small matter of a house to lose, and borrowers who feel they are incapable of keeping up with the repayments shouldn’t take the loan based on the hope that sunny days are around the corner.

Small business loans

Business owners need loans to operate their business. While successful businesses can do without financial help, smaller ventures seemingly need help at one time or the other. The principal requirements for procuring a small business loan are personal credit history, business plan, education, experience, and the potential of the business the owner is starting or expanding.

Before granting small business loans, lenders want to make certain of the repayment of the loan. While loan and risk doubtless go hand in hand, lenders look at alleviating the risk factor as much as possible. Businesses with real potential are preferred, and lenders offer small business loans to businesses having sound personal and business backgrounds.

One of the foremost requirements lenders want from business owners is the state of their personal and business credit.

A business owner who has invested a reasonable amount of his money in his venture has greater possibility of his loan getting approved. While the required investments may vary, it should be at least a fifth of the amount required for the business venture.