Post Tagged with: "Money"

A Guide to the Various Types of Auto Loans

Approved Car Loan ApplicationAbout 85% of new car purchases are financed through loans. Approximately half of the people who borrow money to buy a car get their loans from car dealerships while the rest get their financing from credit unions and banks.

There is an 80% chance that you will be borrowing cash for you to get the keys to your new ride. As such, it pays to understand the various types of loans as well as the best auto loan rate in Utah. That said, this article focuses on your auto loan options.

Unsecured vs. secured auto loans

With a secured loan, the car acts as the collateral to the loan. That means the financing company has the security interest indicated in vehicle title. So if you default payment, the financing institution will seize the vehicle.

Other financing institutions offer unsecured loans. This means the lending institution has no security control over the vehicle. Consequently, these loans are only offered to people with substantial assets and income, as well as those with high credit scores. Additionally, due to their high-risk nature, these loans come at a significantly high-interest rate in comparison to the secured loan.

Simple interest vs. pre-computed interest

Pre-computed interest is calculated based on the total amount of the interest rate over the period of the loan. The total figure is then divided by the number of months you will be paying the loan. That means your monthly payments will include the specific amount of interest regardless of the remaining loan balance.

Simple interest loan, on the other hand, calculates the interest rate based on the outstanding loan balance. That means, if you took a car loan for $10,000 and you now have an outstanding amount of $5,000, the interest will be calculated based on the $5,000 and not $10,000.

Regardless of the auto loan that you want, shopping around is worth your while. Picking a loan is not just another paperwork procedure in car purchasing process. The loan is a purchase by itself and is likely to cost you thousands of dollars.

April 7, 2018 at 1:00 amFinance

What You Need To Know Before Getting A Car Title Loan

Man handing over car keysAt some point in people’s lives, there may come a time when they would need to spend a certain amount of money, money which unfortunately they don’t have on hand. A medical emergency perhaps, or major house repairs that aren’t covered by their savings.

When this happens, one option for getting the money needed is to turn to cash loan service providers like Utah Money Center. In Salt Lake City, there are different kinds of loans available for those who need to borrow money fast. One of these is a car title loan, which is a small and short-term loan in which the title on a vehicle is used as collateral.

Here’s everything you need to know about a car title loan and when it’s ideal to apply for one.

How does it work?

Borrowers need to pledge their vehicle as loan collateral by giving the vehicle’s title to the lender until the loan is repaid in full. In order for you to borrow against your car, you need equity in it. In most cases, borrowers need to own the vehicle free and clear (with a clear title to show for it), but there are cases when lenders approve loan applications even if borrowers are still paying off a standard purchase loan.

How much can you borrow?

The loan amount is based on the car’s value or the equity in it. In general, the greater the car’s value, the bigger the amount that you can borrow. However, the full value of a car is rarely given because the higher the amount lent, the more difficult it will be for borrowers to pay it back. Lenders may give only the amount that they can get for the car if they have to repossess and sell (it if the borrower is unable to repay the loan).

What is the usual loan period?

Car title loans are often due for complete repayment within 30 days. In cases where borrowers are unable to repay within that period, they can extend repayment by rolling over the loan. This means they get a new 30-day loan, but they would have to pay new loan fees and additional interest.

What do you need to apply?

Applying for a car title loan requires you to complete a loan application, after which you will need to present your car, a photo ID, proof of insurance, and the clear title. You may also be required to provide duplicates of your car keys.

When applying for a car title loan, make sure you review the loan terms. Ask the lender to tell you the total cost of the loan as well as the annual percentage rate or APR. Lastly, borrow only what you can repay in full by the date the loan is due so that you avoid paying for a loan rollover or worse, losing your car.

February 9, 2018 at 7:53 amFinance

3 Biggest Benefits of an Accounts Receivable Loan

Approved Loan ApplicationEvery business needs to grow to succeed in today’s competitive field. To that end, many rely on financing options to expand. Traditional micro-business financing, however, has proven to be beyond the reach of small business owners. One popular option that these owners can turn to is accounts receivable financing.

At its core, it’s the selling of receivables at a lower price to a financing company, which then assumes the risks of these receivables. In turn, it issues your business the much-needed cash to help it grow. Here are the advantages of this type of loan:

No collateral needed

Unlike other loan types that require collateral to secure, this type of loan doesn’t need that. That is of a distinct advantage for small business owners who might not have enough in terms of possessions to put up as collateral. Plus, it’s also good that you don’t have that much in the way of risk—perfect for having a little bit of peace of mind while focusing on actually growing your business.

Ownership retention

One of the most attractive benefits of accounts receivable financing is that you don’t have to give up a portion of your business to secure your loan. One problem with other types of unsecured loans is that they might not ask for collateral but might request for a percentage of your company in return. It’s already assumed that the financing company will take on the risk of your receivables.

Quicker cash flows

Finally, this type of loan actually nets you soluble funds quicker. That’s because you essentially monetize your receivables without needing to move it yourself. That becomes the burden of the financing company. This ultimately means that cash flows in more quickly that you can readily use to grow your business in any way you deem necessary.

If you’re a business owner looking for an effective and easy way to gain cash, a loan from your accounts receivable is the way to go.

January 17, 2018 at 2:20 amFinance