Loans between individuals or commercial loans: what is the best option?

 

As a small business owner, you have several options when you need funds for your business. Traditional low-interest bank loans are often the first option for many entrepreneurs. However, not everyone is eligible for a bank loan. If this is your case, you can use an alternative online lender or a relatively new loan method: loans between individuals.

While loans between individuals have gained popularity in recent years, they are aimed primarily at those seeking personal loans. However, some private lenders also offer commercial loans. Some of the most popular companies in this category are Lending Club , Funding Circle and Prosper .

But, should you resort to loans between individuals? Or is it better to opt for another alternative? Before answering these questions, let’s understand how loans between individuals work.

What are loans between individuals?

money loan

A loan usually involves a financial institution such as a bank or a credit union that advances funds to a borrower. But in a loan between individuals, the relationship is established directly between the borrower and an individual. The service that facilitates loans between individuals (also known as P2P loans, from English Peer-to-Peer ) acts as an intermediary between both parties.

How does that facilitate the process? Why eliminate the financial institution from the equation? Doing this provides benefits for both the borrower and the lender. Without the intervention of a bank involved, borrowers can receive funds at a lower rate, while investors (people who are advancing cash) can obtain a higher return.

At least, that’s how it should work. But we must bear in mind that the loan service between individuals, acting as an intermediary charges a closing fee, which could be a significant amount. For example, Lending Club, a popular P2P lender, requires borrowers to pay a startup fee that ranges from 3.49% to 7.99%. With a loan of $ 30,000, the rate could be up to $ 2,400.

To understand this type of financing in detail, first read what loans between individuals are .

Advantages of loans between individuals

⇨ The whole process is done online. Usually, you don’t have to send any paper documents.

⇨ Funds may be available in a matter of days. You do not have to go through a long approval period.

⇨ Most P2P loans do not carry a penalty for prepayment.

⇨ You can usually use the funds in any way you like. Of course, the use is restricted for commercial purposes.

⇨ Borrowers rejected by banks may discover that they can obtain a P2P loan, being more flexible with their requirements.

Disadvantages of loans between individuals

⇨ If you have bad credit, you will have to pay a high interest rate.

⇨ The amount of a loan between individuals is quite limited.

⇨ Closing rates can increase the total cost of the loan.

⇨ Delaying your loan payments can hurt your credit score.

⇨ Some private loan service websites require you to pay various fees in addition to the interest you are already paying. You could be informed about these hidden rates only after taking the loan.

⇨ As a borrower, you could be subject to a scam. A fraudulent service company between individuals may ask you to pay the closing fee and then disappear.

So, is it a good idea to apply for a loan on a private loan service website? Or is a traditional loan for a small business still a better idea?

Loans between individuals and traditional commercial loans: comparison

Loans between individuals and traditional commercial loans: comparison

Compare the main characteristics of loans between individuals and traditional commercial loans offered by banks:

  Loans between individuals Traditional Commercial Loans
Interest rate If you have a good credit score, it is possible to get a good rate They are usually lower
Loan limit Most P2P loans are for small amounts. Banks have higher limits. If you are eligible, you could borrow everything you need
Speed ​​of approval You can receive the funds in a few days Normally long process. It may take weeks to receive the funds
Probability of obtaining a loan with bad credit it’s possible Quite unlikely
Use of funds Borrowers can decide how to use the funds The lender will specify how to use the funds

Here is another comparison of the two types of loan:

Loans between individuals and traditional commercial loans

One of the biggest disadvantages of a commercial loan is that the approval procedure can be cumbersome. You may have to submit several paper documents and wait weeks to get a response from the bank. If you need a quick response, a loan from Minekilos Financial, an alternative online lender, might be your best option.

In fact, Minekilos Financial has fewer loan requirements than other lenders .

Next, let’s compare loans between individuals with alternative loans for small businesses.

Loans between individuals and alternative commercial loans: comparison  

money cash

Alternative lenders can be a good option for many small business owners. Credit requirements are usually more flexible than those of a traditional bank. Alternative lenders also have another significant advantage: they can process a loan application very quickly.

This is how both forms of financing compare:

  Loans between individuals Alternative Commercial Loans
Loan Amount The amount could be less than what you need The amount may be greater.
Interest rate If you have bad credit, you could pay a high interest rate Normally lower rates than in P2P loans
Required documents Minima. But you might have to present a business plan or justify why you need the funds. The lender will ask you for financial statements and bank statements
Time to get the funds It is possible to get quick approval Quick approval
Use of funds Borrowers can choose You must use the funds for your company
Probation process Online Online

Here is another comparison of the two types of loan:

Loans between individuals and alternative commercial loans

For most entrepreneurs, an alternative business loan is the best way to obtain funds for your company. Borrowing from a lender like Minekilos Financial can provide you with the cash you need in a very short time and with a very simple approval process. We invite you to invest a few minutes of your time to see in detail how the commercial loans of Minekilos Financial work .

Minekilos Financial: your best option

money loan

At Minekilos Financial, we will do our best to provide you with access to the capital you need for your small business. We are faithful to our motto: “We do not close the doors to any business”, and that is why our loans will offer you a series of advantages that you will not find in other lenders:

Our bilingual loan specialists will guide you at home step of the loan process

 

⇨ Like loans between individuals, our entire process is carried out online, in a totally safe and effective way. This gives you quick access to funds , which can be reduced up to two days. But unlike loans between individuals, we offer you many more advantages.

⇨ The amounts of our small business loans range between $ 5,000 and $ 400,000, an amount greater than you could possibly get with a loan between individuals, and are available at monthly interest rates between 1% and 2.5%.

⇨ You will only have to pay a closing fee. There is no other fee and your monthly payments will be fixed and will never change. There are also no penalties for prepayment if you decide to pay off your loan in advance.

⇨ Our requirements are very flexible. For example , you do not need a Social Security Number to apply for a loan. With your ITIN is enough.

⇨ Nor do we need you to present any type of guarantee to secure your loan.

⇨ You don’t need to have a minimum credit score (FICO), and you don’t need a credit history.

⇨ After nine months of making your payments on time, you can get a new loan for a larger amount and at a lower interest rate.

⇨ We provide customer service in English and Spanish.

⇨ Our commercial loan specialists will help you at every stage of the process and make sure you get the lowest possible interest rate.

⇨ We provide our members with access to a large number of educational resources that are updated periodically.

⇨ Our clients are happy to work with us because they receive individual attention and support from our dedicated team of professionals.

If you need funds for your company, apply for a commercial loan . You will know instantly if you prequalify and your application will not affect your credit score.

Moneyta Money Bank Login to Internet Bank, Branch and Contact

Previously we could have known this bank under the name of Firstlook Money Bank. The main focus of the institution is financial services such as providing loans to individuals, but also entrepreneurs. Furthermore, they are mortgages current accounts, credit cards and / or savings or investments. The company has more than 200 branches and 650 ATMs.

 

A quick loan for anything

A quick loan for anything

  • CZK 5,000 to CZK 800,000
  • maturity from 2 to 9 years
  • interest rate from 4.9% per year (APR from 5%)
  • free early repayment
  • the fee for providing a loan at a branch or by telephone is CZK 1,295

 

Merge loans

Merge loans

  • possibility to merge old loans, overdrafts or credit cards (up to 50% can be saved)
  • + extra money
  • the provision of a loan at a branch or by telephone is subject to a fee of CZK 1,795

 

New car loan

New car loan

  • financing up to 100% of the vehicle price
  • you set the amount of repayments yourself
  • all documentation can be handled directly at the seller
  • the first installment only after 30 days from the receipt of the car
  • the loan can also be used for a commercial vehicle up to 3.5 tons
  • maturity up to 84 months

 

Mortgage

Mortgage

  • interest rate from 2.7% (using savings)
  • up to 90% of the value of the property
  • up to 30% of the loan amount can be used for anything
  • refinancing existing mortgages

 

American mortgage

  • for property owners
  • up to 70% of its estimated price
  • interest rate from 3.99% pa
  • Free property estimation
  • free mortgage insurance against serious car accident
  • Mortgage processing fee of 2 900 CZK

 

Moneyta Internet Bank

Moneyta Internet Bank

Internet banking called Internet Bank is a great tool for managing all your finances. You can also shop online or save money for worse times.

You can find the complete list of branches and ATMs directly on the Moneyta Money Bank website in the contact section.

Mortgage interest forecast August

What does the mortgage interest rate do in August? We have listed the most important developments for our interest rate expectations, for example about Greece and inflation.

Relative tranquility

 Relative tranquility

The previous forecast (July) was dominated by the Greek crisis. The uncertainty was that investors would opt for the safe Euro countries due to the uncertainty. We see that capital market interest rates fell slightly as a result in July (more supply in the market). A departure from Greece from the Eurozone is (ultimately) averted. There is now relative calm on the financial markets .

Three factors

 Three factors

We see the following three factors that influence interest rate development :

  • Greece must now meet Europe’s requirements. This will continue to provide exciting moments in the coming period.
  • Low inflation also continues to affect the Eurozone. After a few months in which inflation rose, it remained the same in July.
  • In addition, the ECB’s buy- in program is in full swing.

Long-term mortgage interest rate forecast

 Long-term mortgage interest rate forecast

The above three developments have a depressing effect on the capital market interest rate. For our forecast, we combine this with the relative calm that the markets are currently in. We then come to the conclusion that the mortgage interest rates for the long fixed-rate periods in August remain at the current low level and may fall slightly .

Expect short fixed-interest periods

Expect short fixed-interest periods

We can be short about the short-term fixed-interest periods (up to 1 year). The ECB maintains its current interest rate policy, which keeps market interest rates low. The short mortgage interest rate therefore remains at the current low level .

Tip: register for the Interest Rate Flash and follow the mortgage interest closely . Here you will find more information about the interest rate expectation.

History mortgage interest forecast:

2016

  • Mortgage interest forecast January

2015

  • Mortgage interest forecast December
  • Mortgage interest forecast November
  • Mortgage interest forecast October
  • Mortgage interest forecast September
  • Mortgage interest forecast July
  • Mortgage interest forecast June

Virtual Credit Card: What is it and How Does it Work?

Rate this post Internet has become an indispensable part of our lives to the point that we do not take a step without resorting to this tool. Therefore, Mexican companies created a system to use the virtual credit card, which does not stop with the physical obstacles of the financial world.

 

What is a virtual credit card?

What is a virtual credit card?

A virtual credit card consists of an electronic payment method to buy online or by mobile phone. Depending on the bank you use this will indicate a series of steps to request your digital card.

Being virtual, it is only intended for online purchases. It will give you more confidence the fact that you should not share your personal data when shopping online.

These cards do not have the same conditions as conventional ones, that is, they do not have a magnetic strip. What they will have will be a card number, an expiration date and a control number . You may also be asked for security checks with the help of codes sent to your cell phone.

 

How does it work?

The virtual credit card will have the balance that you provide from your bank account. This is even an advantage because you set a line on what you are going to spend. Thanks to this reflexive and premeditated purchase system, you have more control over your purchases, reducing the possibility of borrowing.

 

Benefits of having a virtual credit card

Benefits of having a virtual credit card

Being completely digital, this card cannot be lost and you will never have to suffer the loss of the plastic. In addition, you will not have to worry about the security of your card, since it has all the protection mechanisms of a normal card.

Also take into account that being a card whose processing is free, you will not have maintenance costs or commissions for carrying out operations with it. What are you waiting for to obtain one?

 

What are the virtual credit cards in Mexico?

What are the virtual credit cards in Mexico?

Search in Mexico for the best alternative for you, so here are three options for you to be encouraged to get your own digital TDC:

  • Wisemoney Wallet: has an application to control your money. When you are backed by MasterCard you can choose to request a plastic and have it sent to your home, or use it in an intangible way.
  • The Mananga Rechargeable Panorte Card: Or through the MasterCard network and is issued by Banorte. To this card you can enter all the capital you plan to spend to use it through the network. A particular benefit is that you will get a $ 150 coupon for purchases on Amazon. eye! This is not a credit card, rather it is debit card
  • Wexi Credit Card : a card that can only be processed online and does not require you to present your credit history. It is backed by a Card and you can present it at any store in Mexico when the physical is sent to your home.

In conclusion…

If you hire a virtual credit card you will learn to manage your money in a healthy and premeditated way. Say goodbye to debts and give yourself the opportunity to use the new alternatives that banks give you to make better use of your money.

Mortgage – How Do You Compare And Find The Best Mortgage?

A mortgage is a loan used by a buyer to acquire a home. A mortgage is usually issued for the purchase of a home, but it can also be obtained for home renovation or investment.

A mortgage is essentially a mortgage. The lender grants the loan and uses the apartment as collateral for the loan. The lender thus reserves the right to housing if, for any reason, the debtor fails to fulfill its obligations.

In Finland, mortgages are mainly granted by large commercial banks. Banks provide mortgages to individuals or companies looking to buy an apartment or property.

The characteristics of a home loan, such as loan size, loan length, interest rate, loan repayment method and other characteristics may vary considerably.

Why apply for a mortgage?

Why apply for a mortgage?

For many people, buying a home is not only a dream, but also the biggest and most important purchase decision. Renting a home is a very typical form of living before buying a first home. So why is a mortgage worthwhile?

When you rent, you pay for the apartment to the owner. If, on the other hand, you take out a mortgage and buy your own home, you repay the loan and raise capital for yourself.

In many cases, the monthly cost of housing can also be lower than the rent. If the repayment of the mortgage and the housing fee charged by the housing association are less than the rent, buying a home is an economically viable decision.

Since borrowing is one of the biggest decisions in life, you should plan carefully. There are many different, many aspects of home loans that you should be aware of.

Conditions for a mortgage loan

Conditions for a mortgage loan

In principle, most retail customers can get a home loan as long as the income level is high enough and there is no major disruption in credit information. Banks pay attention to how well the borrower has handled their finances in the past.

Banks are most sympathetic to customers who have a stable and ongoing employment relationship. However, this is not always a prerequisite for a loan if the assets and solvency are otherwise demonstrable.

Because the bank always makes a loan decision on a case-by-case basis, it is a good idea to prepare your loan negotiations carefully. Often the lender wants detailed information about the applicant’s finances.

Applying for a mortgage in practice

Applying for a mortgage in practice

It is a good idea to reserve information on your income, assets and liabilities for the conference. Your bank will also check your credit information, so if you have any notes, you should be prepared to find out. Often, small debts that are a few years old are not a barrier to getting a loan.

Whenever you apply for a mortgage, the financier wants to know the applicant’s current obligations. So, when you collect information on your existing loans, it is easier for your bank to make a valuation.

The bank is also interested in the applicant’s funds. For example, if you own a portion of a property, summer home or plot of land, this can have a positive effect on your loan application. Equity holdings and securities holdings are also worth exploring.

Loan Negotiation Checklist, What to Include?

  1. Your latest pay slip, at least three months
  2. Information on holdings: real estate, stocks, savings, etc.
  3. Estimate of monthly expenditure
  4. Proof of current loans

You must go through the loan negotiations before making a home offer. This allows the bank to make a loan commitment, a decision about how much they are willing to finance your purchase. The loan promise does not obligate you to take out a loan yet.

In general, the bank requires about 10-20% self-financing. So if you want to buy a home that costs € 200,000, you should have at least € 20,000 in cash or assets. Often banks have a handy mortgage calculator that makes it easy to rotate numbers. If the amount in question is not yet in your account, your bank may require you to save some time.

Mortgage interest rate

Mortgage interest rate

Like other loans, the mortgage is also paid interest. The interest rate is determined by the lender and tied to the loan amount. Mortgages granted in Finland and elsewhere in Europe are tied to a general interest rate, such as Good Finance. Good Finance is the common reference rate for the euro countries, on the basis of which banks lend money to each other.

The mortgage borrower becomes familiar with the Good Finance interest rate and is usually used as a reference rate when borrowing. Often a loan is linked to a 12-month Good Finance, but one, three or six month interest rates can also be used, which means that the interest rate of the loan is reviewed more frequently.

In addition to the Good Finance rate, the bank adds its own margin to the interest rate. This varies from customer to customer. Banks determine the level of risk for each customer and each item, and charge a loan margin based on these.

So the mortgage rate always depends on your personal situation and your finances. When considering a mortgage, it is advisable to calculate the costs accurately, for example, using a loan calculator.