Guarantor Loans: Can You Be Guaranteed A Safe Loan?

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StrategyDriven Managing Your Finances Article |Guarantor Loans|Guarantor Loans: Can You Be Guaranteed A Safe Loan?When struggling with your finances, it can seem like an impossible task to get hold of the finances that you need when faced with a financial emergency. However, this is not the case. To help you get started on finding a safe loan, we will be providing you with some insight into the several different loan options that are available to you even with poor credit.

Understanding Your Credit Score

Before applying for a loan of any kind, you must understand your credit score and the impact that it can have on your loan application. By following the Fico scale used by the three main reporting bodies, you can determine whether the line of credit that you currently have is a positive one or not. From there, you can begin to assess the loan types that are available to you.

Understanding Secured And Unsecured Loans

When looking at the different loans available, you should first consider the differences in both secured and unsecured loans. A secured loan requires valuables such as a car or a home to be put up as security to act as security should you be unable to meet these repayments. The most common forms of secured loans are home mortgages.

An unsecured loan is a loan amount you can borrow directly from a lender without any need for security. The most common form of an unsecured loan is a payday or short-term loan. These are short loans that can be paid off either by next payday or in general to make it stand out. In the long run.

What Are Guarantor Loans?

A guarantor loan is a loan that is used by those suffering from poor credit and provides an extra level of protection as a result. These guarantor loans are different from payday loans as there is an extra level of protection. With guarantor loans, you have someone else sign for the loan along with you to make sure that all repayments are met should the original borrower be unable to pay back the loan amount. This is commonly used by those that have an extremely poor line of credit as it provides additional protection to the lender should they default on payments.

How Can They Provide You With Secure Finance Options?

When struggling with poor credit, you want to make sure that your lender is as secure as possible. For this to be achieved, it is important to look at the FCA registry and ensure that they are a part of this. If they have been registered with the FCA, you are then protected under regulation and can make sure you are getting the funds you need from a reliable source at this time.

With this in mind, there are several ways that you can guarantee a safe loan with an affordable APR that will have a minimal effect on your credit score when paid back in full. Where will you be starting when finding your chosen lender.

Are You Eligible for a Bad Credit Car Loan?

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StrategyDriven Managing Your Finances Article |Car Loan|Are You Eligible for a Bad Credit Car Loan?When looking to finance a car, it can be a challenging time, especially if you are struggling financially. However, it is possible to get the bad credit car loan you need to drive your perfect car, at a cost that benefits you. In this article, we will be providing you with information on how to know if you are eligible for a bad credit car loan.

Check Your Credit Score

Ensuring your credit score is as stable as possible can aid you in being approved for the credit you need. Often, the greater your credit score is, the better your chances will be of being approved for a loan or car finance. Check your credit report for abnormalities and contact the credit reference agency if any of the information they have on your report is incorrect. Something as seemingly small as the wrong address can negatively impact your credit score. Taking the time to better your credit score can make it easier to drive the car you want in no time.

Look Around for The Best Loan Provider

In addition to checking your credit score, it is important to look at the best loan provider for you. By going either to the dealership or directly to a finance company, you can get the loan types that you need for the car that you want. By getting a quote from multiple suppliers, you can compare deals and find the one that works best for your needs and budget.

Look Into the Car You Want

The type of car that you want can also have a huge impact on your eligibility, particularly if you have poor credit. By choosing the car that you want beforehand and ensuring you know a general estimate of their worth, you can assess how this will fit into your budget. The type of car you choose will impact the monthly repayment amount depending on the loan term and loan provider that you eventually opt for, therefore taking the time to do your research could save you money in the long term.

Improve Your Finances as Much as Possible

To improve your eligibility, you should try to improve your finances as much as possible. By taking the time to pay off your debt and making sure that all the correct information is on your credit report, you can have a better understanding of your eligibility for your chosen loan type. Although it can take time to slowly improve your credit score, this will benefit you in the long term when looking to finance a car.

Whether you are looking to finance a new car or you are looking to finance a slightly older vehicle, there are several poor credit car loans for you to choose from for your dream car.

How To Save Money In Your Business

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StrategyDriven Managing Your Finances Article |Save Money In Business|How To Save Money In Your BusinessIt’s crucial to save as much money in your business as you can when you’re a startup. However, it’s just as important to continue to save money even when you are more established. By cutting costs where you can – without cutting corners, of course – you can have a more streamlined business that can cope with anything the world throws at it. Any sudden downturn won’t impact a business that spends as little as possible half as much as it would impact a business that has many different expenses.

It’s easy to over-spend in business, especially when things are going well. However, it’s not a good idea; it’s far better to save and have money put aside for emergencies. Here are some ways to save money in business that will help you greatly.

Buy The Best You Can Afford

Surely saving money isn’t about buying expensive items? Isn’t that the opposite of what we’re meant to be telling you? Well, partly. Of course, we’re not advocating you go and buy many luxury items, spending all the money you have in your business, and then having financial issues later on. However, we are suggesting that, when it comes to elements that are needed for your business, such as tools, machinery, and other equipment, you don’t buy cheap. Always stick to your budget but buy the best you can with the money you have.

This is, strange as it might seem, is a money-saving tip.

Imagine if you bought a lot of cheap equipment, even if you could buy better. The likelihood is that this equipment would start to break down and need to be replaced, or it would have to be serviced more often than something newer that was in better repair. In the end, if you buy cheap at the start, you will probably spend more on that item through repairs and eventually replacement than you would have if you’d pushed your budget a little higher to begin with.

Outsource What You Can

Again, it might seem as though we are telling you to spend money, and again we are, but – again – there is a reason behind this.

Many people think outsourcing is expensive, especially if they could do the work themselves. Yet you must take into account what doing the work yourself would entail. By working on something that someone else could do, you are using up your precious time, time that should be being used to run the business. When you outsource, you can pick the things you’re good at and leave the rest to someone else, ensuring the high quality of the business you’re running.

You can outsource your accounts, your IT management, your marketing, and any other things that don’t appeal or that you don’t have the skills for.

Work From Home

One of the easiest and most popular ways to save money in business is to have everyone work from home rather than have a central office. If you and anyone else who works for you can work from home, you won’t have business premises to maintain. You won’t have to pay rent, nor will you need to spend money on energy bills.

On top of this, studies have shown that people are more productive when they work from home. If you are more productive, more work will get done, and not only will you save money, you’ll make money too.

Tips for Managing Small Business Finances

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StrategyDriven Managing Your Finances Article |Small Business Finances|Tips for Managing Small Business FinancesManaging small business finances can be a challenge, especially when you have lots of other things to deal with. However, the way you manage your finances will have a big impact on your overall business success and profits. Luckily, you can easily learn the basic skills needed to effectively run business accounts. Here are some tips to help you manage your small business finances.

Create a cash flow budget

One of the most crucial steps for managing small business finances is to create a cash flow budget. A cash flow budget will give you an overview of your company’s finances and help you make well-informed spending decisions. It will also enable you to make accurate financial forecasts. According to Liquid Capital Corp, you should use a budgeting tool or software to create your cash flow budget. Your budget must include all of your cash inflows i.e. money from sales and your cash outflows i.e. fixed and variable expenses. This will allow you to calculate your monthly cash balance i.e. profit. Make sure that you aren’t in a cash flow deficit at the end of the month. If your outflows are higher than your inflows then you should try to lower overhead expenses by cutting unnecessary costs. For instance, switch to a cheaper energy provider to save money on your energy bills.

Invest in growth

When you run a small business, it can be tempting to take all of the profit out of your company. However, this approach is unlikely to benefit your business in the long-run. Investing money back into your company will help your business grow and achieve its strategic goals and objectives. That said, you must make smart investment decisions that will give you a good return. For example, you may invest in improving a product or service to boost sales and increase cash flow. Many small business owners also invest in a larger commercial property so they can expand their operations.

Additionally, you have the possibility to apply for a loan to cover business expenses and support growth. According to experts at diversefunding.com.au: “A property loan can be used to buy inventory, expand your business, or simply need extra cash flow.” Research different funding options and choose the best one for your business.

Plan for the future

Another essential part of good financial management is to plan for the future. You should start building up an emergency fund that can be used to cover unexpected costs. You may have to pay for repairs to business equipment or cover staff absence. Planning for these situations and having an emergency fund will eliminate the risk of your business running into financial difficulties in the future.

Final words

Managing finances can be difficult for any small business owner, particularly if you don’t have a lot of experience managing business finances. Adopting bad financial habits can harm your business and cause serious issues later down the line. With that in mind, you must make finances a priority and learn to manage your accounts efficiently. Use the above tips to help you manage your small business finances and maximize profits.

5 Tips to Manage Your Finances Before a Recession

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StrategyDriven Managing Your Finance Article |Recession|5 Tips to Manage Your Finances Before a RecessionIn the global economy, there are always highs and lows. And when a country or the world is hit with a recession, it can be tough to survive. We can often tell when a recession is about to hit. However, we sometimes ignore the signs and then repent later. Ideally, your safeguarding should start the moment you get the hint that a recession is about to hit.
Here are five tactics to make your finances recession-proof:

1. Switch to a Frugal Lifestyle

We tend to spend more when we have more. But this lifestyle inflation is very dangerous in the long run, especially when the economy is hit with a recession. And developing a frugal lifestyle requires practice; it does not happen overnight. So, don’t wait for the next recession to occur. Instead, modify your lifestyle changes from today itself.
Observe your spending habits for a month. Identify the must-haves and the good-to-haves, and see where you can cut down your expenses. See the products which have cheaper alternatives, and see what you can replace. Gradually, you will become thrifty with your spending habits, and this habit shall be beneficial when the recession hits the economy.

2. Build an Emergency Fund

Savings is an integral part of personal finance management. No matter what, it is a necessity that you save a certain portion of your income every month and add it to your contingency fund. You may be tempted to use this fund during demanding times, but discipline yourself not to touch this fund unless there’s an actual emergency. Instead of using this fund for your regular expenses, you can opt for a credit line that offers flexible repayment options or a short term personal loan, depending on your requirements.

3. Pay Down Your Debt

The higher your debts, the more loss you will suffer during a recession. So before the recession hits, identify all your debts and try to consolidate them to pay them back. Most often, you may not have the liquidity or cash flows for repaying all the debt separately. Then you can choose a personal line of credit or a personal loan to help you get rid of your debt. This will help you save money in the long run with lower rates of interest too.

4. Hone New Skills

Instead of getting upset in a crisis, we should upgrade ourselves. If you see a recession coming up, diversify your knowledge base, and learn new skills that will help you earn income if you lose a job or if your business suffers losses. Several online learning platforms help learn new skills and add to your knowledge base.

5. Hedge Your Income Sources

When you have multiple income sources in a recession, it helps hedge your earnings and diversifies your risk of losses from a particular source of income. Be tactful while choosing multiple sources of income. You can study the recession-proof sectors, like education, medical, etc. and see how you can leverage these sectors based ontheir skills. You can even pull off some extra hours before a recession to make extra income in additional sectors. That way, your finances will remain secure due to risk diversification when a recession hits.

About the Author

StrategyDriven Expert Contributor | Lily TranLily Tran is a content writer, working for MoneyTap, who writes about all things Finance. Her passion for credit, debt, loan & investment drives her to help readers get an insight about everyday finance.