Borrow money cheaply

Borrow money cheaply? It seems so simple, but there are a number of things you could consider. For example, when borrowing money cheaply, you should look at more than just the interest rate. To make borrowing money cheap, you have to go through a number of steps and invest some time yourself. We will tell you below the correct sequence for taking out a cheap loan. Borrowing money cheaply is very different from borrowing money within 10 minutes. Often borrowing money cheaply is time intensive, but it can also save you a lot of money. The difference can amount to thousands of dollars during the term of your loan. So take your time to read the page at your leisure, and then take out your affordable and responsible loan. The question, of course, is how do you choose itcheapest revolving credit ? Or the cheapest personal loan ?

Step-by-step plan for borrowing money cheaply

Step-by-step plan for borrowing money cheaply

First of all, it is important to compare various comparison websites. You will see that there are quite a few differences among the different comparison websites.
Compare them calmly and take the time to request a quote from various providers.

These parties currently use an interest rate of 4.2%. At the time of writing, this is the lowest interest rate in the market. After you have requested multiple offers, you can compare them. You should not only make comparisons on the interest, but you can also do on the monthly term, term and the total costs. The latter is also an important aspect. If you compare on the basis of the total costs, you can quickly see which provider is the most advantageous over the entire term.

Conditions for borrowing money cheaply

Conditions for borrowing money cheaply

If you have figured out what the cheapest provider is for you, you could of course always look at the possibilities with the loan. How easy is it to make withdrawals? Is there an “online banking” environment? How are the experiences of other consumers? Is there a history of interest rate hikes on revolving credit? These are all matters that you can check before you start working with a provider.

The difference between corporate loans with or without collateral

 

There are many ways to get financing for your business. Corporate loans should be used to drive your business forward and, for example, be used for a variety of purposes such as equipment, inventory and unexpected expenses. There are different types of corporate loans when it comes to the type of collateral the lenders need. Here we will take a closer look at the differences between unsecured and secured corporate loans.

Corporate loans with collateral

Corporate loans with collateral

A secured loan is one of the most popular types of corporate financing. Basically, it gives the lender a security if your company would find it difficult to make a full repayment within the loan term. For example, the security may be: machines or individual property. Because the risk is lower for lenders, it allows them to lower interest rates and fees. It gives you an opportunity to be awarded higher amounts and make a greater investment in your business. However, the loan’s interest rate, period and maturity will depend on the owners’ personal credit risk, hence, how high the collateral the owners provide. The main condition for obtaining a secured corporate loan is to have something that can be used as collateral. This means that the owner already has an asset. A classic loan that is not commercially secure is, for example,

Benefits of a secured corporate loan

  • Lower risk for lenders that usually results in higher loan amounts,
  • Lower risk also includes a fixed monthly interest rate and a longer repayment period,
  • If a company has a problematic loan history, it can be a good way to get a loan as the lenders regard the assets as collateral.

Disadvantages of a secured business loan

  • If your business is relatively new and without assets, a loan with certainly can be difficult to get,
  • If you are unable to repay, you risk losing access to the lender

Business loans without collateral

Corporate loans with collateral

For an unsecured corporate loan, the lender usually does not have the same level of collateral to get the money back, which means that the risk to them is much higher.

Unsecured lenders usually reduce this risk by lending smaller amounts on shorter periods and higher interest rates. The lender instead bases the loan amount on the company’s turnover and calculates the company’s future success based on its past earnings. This type of corporate loan can be very lucrative for seasonal companies, for example in the tourism industry where revenues are very high for a certain period.

Benefits of an unsecured corporate loan

  • Having unsecured assets means the company can sell them as they please without the lender’s permission
  • For unsecured loans, the initial costs are usually lower due to the lack of legal costs such as valuation.
  • An unsecured loan is a good alternative for a relatively new company that has no assets to offer as collateral and needs more flexibility in the repayment period.

Disadvantages of an unsecured corporate loan

  • Unsecured corporate loans pose a higher risk to the lender. They usually offset the risk with a higher interest rate,
  • Many lenders will offer a lower loan amount for a company that cannot offer assets as collateral.
  • If your company’s negotiating power is low, it may be more difficult to obtain financing in the form of a secured loan.

How to get a small Social Institute loan with Ex Government Agency and multi-year 2017

Government Agency financing for public employees and pensioners

Government Agency financing for public employees and pensioners

Life holds many small and large contingencies that often require an economic commitment. From this point of view, public employees and pensioners have one more opportunity than the other workers: the Small Social Institute loan ex Government Agency. What is it about? What are the advantages offered to customers? How to request it.

Small loans 2017

First of all a formal clarification. The current small Social Institute loan was once disbursed by Government Agency, but this social security institution has been canceled and its functions have been transferred to Social Institute. Hence the name Small loan Social Institute ex Government Agency.

It is a product that allows to obtain a liquidity useful to face emergencies of public employees and pensioners enrolled in the unitary management of credit and social benefits. The repayment processes are structured in 12, 24, 36 or 48 installments.

Amounts and rate

The sums vary from a minimum of one to a maximum of eight net salaries of the applicant ‘s salary or pension. As far as interest rates are concerned, the application of a nominal annual interest rate corresponding to 4.25% is arranged.

Administrative expenses, equal to 0.50%, and a premium for the Social Institute Risk Fund, which varies according to the values ​​reported in the Social Institute regulation, are added to the Tan.

Presentation of the application

Presentation of the application

Application procedures change based on the status of the applicant. If this is a member of the service activity, the applications must be submitted to the Administration of belonging, this, in turn, will take care of sending them electronically.

If, on the other hand, the applicant is retired, the applications must be sent directly electronically using the service made available by Social Institute on the official portal. On the same portal it is also possible to download the request form (in Pdf format).

Being a non-finalized financing, beyond the status of the client, this will not have to provide any expense documentation or even produce reasons or medical certificate.

How the Government Agency 2017 multi-year loan works

How the Government Agency 2017 multi-year loan works

We remind you that Social Institute financing is not limited to the small Social Institute loan ex Government Agency. For more demanding needs, in economic terms, we have multi-year solutions, which consist of direct multi-year loans and guaranteed multi-year loans.

Direct loans make it possible to obtain liquidity in the face of documented personal and/or family needs, provided they are part of the requests set out in the Social Institute Regulation. The beneficiaries are always public employees and pensioners registered in the unitary management of credit and social benefits.

The repayment plan is of two types: five-year (60 monthly installments) or ten-year (120 monthly installments). The installment cannot exceed one fifth of salary or pension. The amounts that can be financed instead vary according to the reason for which the loan is requested, as established by the Social Institute Loan Regulation.

An annual nominal interest rate of 3.50% is applied to the gross amount of the loan . As for the small Social Institute loan ex Government Agency, administration costs are also provided (0.50%) and a premium for the payment of the Social Institute Risk Fund. The repayment of the installments takes place in the second month following that of the concession.

Secured financing

The multi-year secured loans are instead disbursed by banks and financial institutions affiliated with Social Institute, therefore we cannot determine the interest rates set by the lending institutions.

However, on the basis of the agreement signed with the Social Security Institute, banks and financial institutions that provide guaranteed multi-year loans are obliged to apply favorable interest rates to loans.

It is also necessary to specify that for the Social Institute to give its consent for the disbursement of the loan, the credit institution must indicate the APR applied. Rate which must be compared with the average rates indicated in the decree published, on a quarterly basis, by the Ministry of Economy in the Official Journal.

As the name suggests, the Social Institute guaranteed multi-year loans also enjoy a guarantee from the social security institution which undertakes to cover the financing in cases of reduction of salary, termination of service and death of the beneficiary.

How to calculate loans

How to calculate loans

Those who wish to calculate the installment of a loan ex Government Agency can use the special online simulator on the Social Institute.it website. However, this is a service that only concerns loans granted directly by Social Institute, i.e. the multi-year loan and the small Social Institute loan ex Government Agency.

To access the web application it is necessary to connect to the official Social Institute website and select “Services and Services” and from here choose the “Public Employee Management: simulation calculation of small loans and multi-year loans” service.

At this point, the user must choose one of the three calculation methods made available by the institution (loan simulation; loan simulation for ideal installment; loan simulation for specific amount) and enter the required data in the appropriate form.

Real Estate Credit: Best Bank enters the dance

Until now, there were 3 online banks offering mortgage loans. We will now have to rely on Best Bank : the creation of Crédit Agricole is finally marketing a mortgage loan offer. Initially expected in 2016, this offer finally arrives in April 2017, a month after a similar innovation from Cream Bank , and while rumors are running about the imminent arrival of Monabanq in the mortgage segment.

 

A quality online mortgage offer

mortgage loan

On a technical level, Best Bank mortgage is like the rest of the products: very well designed. The APR amounts to 1.53% (including insurance and guarantees) for a standard loan of 300,000 dollars over 15 years, when the French average is 1.45%. Best Bank is therefore in the reasonable range, even low for this kind of loan. The minimum amount is $ 80,000, and the loans are repayable over a period ranging from 7 to 25 years. No personal contribution is required, and the repurchase of credit is possible without compensation to be paid, under conditions. In addition, it is possible to take out this type of credit for any type of housing: new, old, main, secondary, rental,… there are no restrictions.

Another very positive point: Best Bank offers great flexibility. It is thus possible to adjust upwards or downwards the amount of his mentalities up to 30%, within the limit of an extension of the repayment period for 24 months maximum. This possibility is a huge chance to face financial imponderables.

 

Enter a very competitive market

market loan

This launch is no small task, in the midst of a very competitive market. Especially since the use of borrowing is down among the French, following the economic crises of 2008 and 2011: 25% of households are currently taking out a loan, compared to more than 50% in 2008. Between Cream Bank which offers a rate of 1.10 % for a loan of $ 200,000 over 15 years, Flagline Direct Credit which displays an APR of 1.59% for a loan of $ 200,000 over 10 years, Lite Lending Credit which offers an APR to 1.88% for 150,000 $ over 15 years,… the offer is overwhelming.

The French like to be interested above all in the financial aspect, but it is essential to take into account the advantages that frame each offer. Options, promotions, quality of the interface, care given to customer relations, availability of reception agents and bank contacts,… each offer must be studied through a prism: that of the main concerns of a potential client. The simplest is sometimes to turn to an efficient comparator, which has the advantage of synthesizing all the information available in one place.

Debt exchange – what is it? Internet debt exchange

Every entrepreneur has happened or will cooperate with a contractor who does not pay on time. The issue of debt enforcement can be dealt with in a classic way, i.e. with a bailiff. On the other hand, the debt exchange is a faster option to recover money. What is the online debt exchange?

Learn a quick way to recover money from an unreliable contractor. What is the debt exchange and is it profitable?

What is the debt exchange?

What is the debt exchange?

The online debt exchange is a special platform (register) on which the creditor can place an offer of sale of his debt, and private persons or companies interested in purchasing such debt can buy it back from the creditor.

The legal basis for the operation of the debt exchange is the provisions (Article 509 et seq. Of the Civil Code), which allow the transfer of a claim to a third party by means of assignment (assignment). Under the law, the debtor does not have to agree to transfer the claim.

However, he should be informed about it so that he knows who he must pay the debt to. The assignment cannot be made if the parties to the commitment expressly state this in the contract. If your debtor is an entrepreneur and you would like to sell the debt on the debt exchange, you do not need to have a final court judgment or order for payment.

It is enough to prove that you owe your debt. You can prove this with e.g. an invoice, a work contract, a mandate contract, a loan contract, an order for payment, a court order, a lease contract or promissory note.

Who uses the online debt exchange?

Who uses the online debt exchange?

The debt exchange brings together several groups of entities. The first of them are creditors issuing ads about the desire to sell debts. They are both natural persons as well as entrepreneurs and legal persons. On the other side of the transaction, the most frequent debt collectors are debt collection companies that professionally deal with debt collection.

Other entrepreneurs also use debt exchange. Imagine that you are an entrepreneur who, running a business, concludes numerous service contracts with other entities.

Perhaps browsing the list of debtors placed on the debt exchange, you found your current contractor there, which you were about to pay for the service rendered. You can now buy his debt from the debt exchange and pay him for the service not with money but with the purchased debt. It will be a so-called deduction.

The debt exchange is also an excellent information base on future contractors with whom you would like to cooperate – you can easily check if they are financially fit. These registers are used by, among other banks and lessors to evaluate the reliability of natural and legal persons who are potential customers.

Why is it sometimes worth selling debt?

Why is it sometimes worth selling debt?

An increasing number of creditors are deciding to sell their debt claims. Why? The answer is simple: because of time and money.

The debt sale price achieved on the debt exchange is usually lower than its nominal value. In return, the creditor receives the money properly, without waiting for the dubious finale of the usually lengthy enforcement proceedings conducted by the bailiff.

Quick recovery of even the frozen part in the form of cash debt will certainly help you maintain financial liquidity, and at the same time will save many stress-related to contact with the debtor. Individually attempted debt recovery is very engaging.

How high the buyer offers for your debt depends on several factors. The most important of these is the probability of the debtor’s solvency. The buyer will also check whether the debt is undisputed, whether there are other creditors who have already begun enforcement, whether the debtor has recognized the debt in writing and for how long the debt is due, and hence whether it is time-barred.

What other benefits does the online debt market have?

In addition to the basic function of presenting offers and communicating with the buyer the debt with the buyer, the debt exchange has one more important function. Some debtors are motivated by the fact that their data, as a debtor, will be made public on the debt exchange.

It happens that earlier requests for payment are ineffective, and the effect is only achieved by informing about the intention to publish the debtor’s data on the Internet and issue the debt for sale. This is due to the fact that debtors want the information adversely affecting their image not to appear at all or to disappear as soon as possible.

Account and debit card for free

Sean Cole checked and compared the offers of the largest Polish banks, offering their clients strictly Internet accounts (referred to by the banks themselves). In our analysis, we checked what is free and what we will, unfortunately, pay for.

There are two winners in the ranking of online accounts – which one to choose?

cash

Invariably for months, Honest bank and Good Finance Bank have remained the leaders of rankings (published by opinion-forming websites).

The reasons are simple – in both of them we will not pay for most standard account operations, and what’s more, we will pay free (or for a small fee – USD 5 monthly – in the case of Good Credit) cash from all ATMs in the country.

At Good Finance Bank – also from foreign ATMs, the largest global banks. These are currently the two most frequently chosen accounts by Internet users.

In the case of Good Finance, after one (!) Non-cash transaction, the monthly fee for the debit card is lifted.

At mBank, we will not pay for a debit card – regardless of the number and value of completed transactions.

Scandinavia on the offensive

Another online account for which our fees for using the account will not be high is Honest Bank. The distinguishing feature of this account is not only the low fee for the debit card (fixed and certain USD 1.50 per month), but also highly valued customer service together with a modern electronic banking system.

Like Good Finance and Good Finance – setting up, conducting, internet transfers – are free. Plus, free cash withdrawals from all ATMs in the country.

GFI – a new, dangerous competitor?

money

The latest decision of GFI to provide all ATMs in the country for free, with free account maintenance and the abolition of the card fee (if we perform non-cash transactions for a minimum amount of USD 100 in a given month), this account can now compete for first place on the podium with the best.

Why is it worth having a cheap card?

money

Debit card is a basic element of our account. So what if there are no running fees or transfers, if you want to have a free account, you have to cancel your debit card? Less, if after one transaction the card fee is removed from us.

But if we pay e.g. USD 5 month after month, then after a year it is 60 USD.

For comparison – a similar cost is eight months of keeping an account with the assistance package, in which we have medical assistance, a specialist – an electrician, a locksmith, a car mechanic … So much more. So let’s consider an account with a cheap or free debit card.

** Assumptions: in a month: 10 external transfers are made. (USD 200 each), 5 non-cash transactions in the total amount of USD 500, 2 withdrawals from own ATMs of USD 500 each and 1 of foreign – USD 500, monthly salary USD 4,000 is transferred to the account.

How we chose the banks to compare: only online accounts are included in the ranking (the ranking did not include classic accounts with the option of accessing the account via the Internet).

1) if the required number of non-cash transactions is settled, the fee is not charged

2) if the required number of non-cash transactions is settled, a lower fee is charged

3) if the appropriate amount of funds is transferred, the fee is not collected

4) if the appropriate amount of funds is transferred, a lower fee is charged

5) two withdrawals per month are free, the rest according to the amount given

6) one withdrawal per month is free, the rest according to the given amount

7) if the balance is a minimum of USD 100, the fee is not charged 8) for withdrawals over USD 400 no fee is charged * with a monthly fee of USD 5, all ATMs are free.

Guide to the offer direct Social Institute loan at special conditions

What are subsidized Social Institute loans 2018

What are subsidized Social Institute loans 2018

Social Institute, a social security institution that deals with both members of the public sector and those operating in the private sector, provides subsidized loans to its members. Products that are called direct loans, because they are granted directly by the institution. Therefore, when we talk about direct Social Institute loans, we refer to these products.

Direct Social Institute loans should not be confused with subsidized Social Institute loans, loans on assignment of one-fifth paid by banks and financial institutions affiliated with Social Institute. Direct loans do not in any way provide for the intervention of credit institutions. The capital is granted by Social Institute and repaid to the same body.

Beneficiaries and conditions of subsidized loans

Beneficiaries and conditions of subsidized loans

But who are these loans aimed at? Only those who fall into one of the following categories can apply for a direct Social Institute loan:

  • employees of Poste Italiane SpA and associated companies;
  • teachers and school directors registered ex ENAM:
  • civil servants referring to former Government Agency Management;
  • public pensioners referring to the Ex Government Agency Management.

These are loans that have passed under the competence of Social Institute with the merger of the various reference bodies. Over the years, Social Institute has absorbed ENAM, the IPOP and the Government Agency. Direct loans are therefore products dedicated to subjects who in the past referred to these entities, represented today by special offices of Social Institute.

Social Institute ex Government Agency direct loans consist of two products: small loans and multi-year loans. The durations are respectively 12, 24, 36 or 48 months for small loans and 5 or 10 years for multi-year ones. In terms of rates, the small direct Social Institute loan Government Agency provides a Tan of 4.25%. For multi-year loans, on the other hand, we have a Tan of 3.5%.

Turning to the Social Institute ex Ipost loans, dedicated to postal employees, we have an offer that follows the former Government Agency one. Again there are small loans and multi-year loans. Loan durations are the same as in the previous offer, while interest rates change. For small loans we have a Taeg of 5%, for multiannual ones the Taeg is fixed at 3.5%.

We conclude our study on the direct Social Institute loan offer by talking about ex ENAM loans. In this case we have only one product: the small loans Management Magistral Assistance. The amortization plan extends for 24 months and the interest rate (Tan) stands at 1.5%.

Compare business loans to find the best terms

Just as with all types of products and services, it is wise to take time to compare business loans before making a decision about which one you want to proceed with. This way, you can get the loan with the best terms based on the conditions of your company.

Many business owners usually settle for comparing the cost of the loan from a couple of lenders. Unfortunately, this can easily lead to problems at a later stage when the self-employed person does not have control over what the repayment terms look like and if these were really the most advantageous based on the company’s situation for example.

Differences in the application process of the loan

Differences in the application process of the loan

We help companies find out the difference between loans and find the most advantageous solution for their company’s situation. In the text below, we go through a number of aspects to consider when comparing corporate loans and about which we also advise our clients.

What many often overlook is that the application process looks different among different lenders. Some differentiate themselves through a smooth application process that takes place online with quick answers, while other more traditional lenders may work more offline.

In other words, one should also compare the application process to corporate loans, since the difference in time spent can be significant and hence also a difference in costs and liquidity. Other aspects to consider have to do with the complexity of the application.

Time aspects – How long does it take?

Time aspects - How long does it take?

The time aspects that one should compare when applying for corporate loans have primarily to do with the time it takes until a decision is made and the time it takes until the loan is paid to one’s company.

One rule of thumb is that the larger the loan your company seeks, the longer it will take for the lender to make a decision on it. This has to do with the fact that lenders often have standardized decision models on smaller corporate loans, while larger loans have to go through a credit committee (ie a committee that makes decisions internally on loans paid to specific companies).

Despite this rule of thumb, you also see big differences between different lenders. Some make a decision right when your application is submitted, while others may take a couple of weeks before a decision is made. Here, one should take into account when the company needs access to the capital and among which lenders this is possible.

Another aspect to keep in mind when applying for corporate loans is how quickly the loan is paid off after a decision is made. Just as in the decision-making process, it differs between lenders when they pay off the loan. However, the difference is often smaller (1-7 days), which is why it plays a bigger role for companies that want to improve their liquidity with the loan.

Complexity – How complicated is the application?

money

When applying for and comparing corporate loans, you should also take into account the complexity of an application. This is especially important for small and medium-sized companies, as they often have a shortage of time as self-employed and simply cannot afford to enter into a process that means that they spend less time on actual business.

One can compare the complexity of applying for a corporate loan by looking at the amount of documents a lender may require to make a decision. Most lenders ask for access to the company’s latest financial statements.

Some ask that they also have access to a budget for the coming year and how this will be affected if the loan is granted. Other types of documents that may be required have to do with order intake, invoicing, and payment habits among customers.

A further aspect to make sure is whether the lenders want to meet during a meeting to review the loan application and what the company should use the loan for or if the entire process is done online. Obviously, applications made entirely online require less time by the self-employed person.

How we work with our customers

We help our clients take in offers of corporate loans from several lenders at the same time and summarize them in a clear comparison. In the decision-making process, we are there to support and answer any questions that may arise about the loan terms and which offer is best for the specific company.

We have helped a number of companies through successful applications for corporate loans and are passionate about finding the best solution for each company.