Month: February 2020

Why borrow a bank statement with money?

by admin

Almost daily I am asked: “Why do I have to prove a bank statement for a whole month to get a loan?” Mrs. Demir yesterday: “I think it is a violation of my privacy.”

The same remark from Good Finance the day before: “I decide for myself what to do with my money.” All very logical reactions, but why does the bank want to see it all? And what do they do with that information?

Review of a Good Finance application

money

When assessing a Good Finance application, a bank makes an estimate of the risk. The biggest cost item of a bank is that they do not get their money back. If they are sure that they will get their money back, they will be able to offer the customer a lower interest rate.

The less risk the bank runs, the lower the interest for the customer. It is therefore in the interest of the customer to share as much information as possible with the bank.

Are payment problems to be expected?

money

With those eyes, the bank looks at the changes in the bank statement. It is therefore not important at which supermarket you go shopping, how often you go to Good Credits per month or which hobby you have.

Important are mutations that are an indication of (expected) payment problems. Payments to a bailiff, payment arrangements or more are in red than are permitted from these types of signals.

Provide a loan or not

Provide a loan or not

The bank does not want to and may not grant a loan to people who are or are likely to encounter payment problems. Logical, because that is not in the client’s interests. They also prevent being confronted with high (debit) costs. In addition, good customer benefits from a low-interest rate.

Unfortunately, but that is no different, that customer must make a lot of information available for this. Compare it with the Tax Authorities. You also have to demonstrate everything there while you have nothing to hide.

Loan application & privacy

cash

But what about your privacy? The bank is obliged to comply with the Personal Data Protection Act and the Code of Conduct for the Processing of Personal Data by Financial Institutions. This means that they may not use your data for any other purpose than to apply for your loan.

Honesty pays with borrowing money

cash

Viewed in this way, it is therefore only to your advantage to provide all the information requested. Nice to know that it pays to be honest!

A Quick Guide to Business Loans

by admin

There are many reasons to lend money to the company. In many cases, a bank loan is necessary to start the business at all. You then take out a start-up loan from your bank or lender, and use the money for inventory, inventory and other things needed to get the business started. In other cases, it is necessary during periods when the income does not cover the costs, or if you need to invest in an already ongoing business. For example, you may need new office supplies, computers or something else.

 

Ongoing credit that companies have available to offset periods

Ongoing credit

This can be, for example, seasonal activities where income varies considerably during the year. There it can be practical with a credit that covers the costs during the off-season and which is then repaid during the high season. In summary, the reasons can be many:

  • Do you have a start-up company and need money to cover the first expenses before the company makes a profit?
  • Has the business been rolling for a while but lack capital to pay invoices and salaries?
  • Need more money to grow the business or to offer a new product or service?

 

Different types of corporate loans

Different types of corporate loans

There are slightly different options when you need to lend money to the company. These are the most common.

Lend money to yourself

As an entrepreneur, you can invest in your own business by lending your private money to the company. You can even charge a reasonable interest rate on the amount. The advantage is that you only risk your own money, which can also be a disadvantage if the company cannot repay the debt. However, you avoid high interest costs and can determine the repayment rate yourself.

 

Corporate loans from bank or lender

This is the most common type of corporate loan. The loan differs from ordinary private loans in that they are adapted to the conditions of the companies. In most cases, in order to be granted a corporate loan, you need an already started business and you must be able to get up some declarations and budgets from the company. There are lenders and lenders who grant loans without this, but these are in principle to be regarded as private loans where you yourself go into the personal loan for the loan and the interest rates are also higher.

 

P2P Loans

P2P, which stands for Peer to Peer, is a form of loan where a private investor lends money to companies. This is an interesting form of borrowing that is becoming increasingly popular in Sweden, as the banks and their requirements for the loan are bypassed completely. Instead, you borrow money from an investor where the chances are high to good conditions. It is important to do this through a serious platform that makes sure everything is going right.

 

Summary

As always, you should carefully compare the options before you take out a loan, and this also applies to corporate loans. Start by reading our reviews on lenders offering business loans and clicking on the lenders you think are interesting.

Instant loan without Credit Bureau and serious

by admin

 

If a loan is required, the first course is the way to the house bank. They have been customers there for a long time and the bank knows the economic situation. But if something has changed in Credit Bureau since the last borrowing, no loan is granted. Before every loan, the bank carries out a Credit Bureau query.

If negative characteristics are noted in it, the credit risk is too high for the banks, the credit does not come about. The credit brokers have embraced this fact that unpopular bank customers do not receive credit under these conditions. They advertise the instant credit without Credit Bureau and serious, but sometimes with too much hot air. In other words, some promises are made that ignore reality.

In this way, an unemployed person with no income and with poor Credit Bureau and possibly still with ongoing bankruptcy proceedings can get a loan. Of course, this cannot be realized. Even if the customer finds a lender who does not ask Credit Bureau, the creditworthiness is still checked. An instant loan without Credit Bureau and serious is feasible.

The instant loan without Credit Bureau and serious

The instant loan without Credit Bureau and serious

The data that Credit Bureau stores are necessary for credit decisions. Banks use this data to check the creditworthiness of their customers. Negative features such as unpaid bills or a canceled loan are rejection criteria for a loan. If you still need credit, you can apply for an instant loan without Credit Bureau and serious. The instant loan is equivalent to an installment loan that has small monthly installments. However, the term instant loan is not to be used in this way.

It takes two to four working days for an instant credit application to be made online until the money is in the account. In order to receive the instant loan, an online loan application must be used, which is transmitted online directly to the selected credit intermediary. Based on the data entered, this credit broker will immediately check the request and send the customer a loan offer that is not yet binding. Only then is the credit contract sent to the customer, who must sign it and send it to the lender with the necessary credit documents. The PostID procedure is carried out at a post office to determine the customer’s identity.

The foreign loan

The foreign loan

Not every customer is predestined for a foreign loan. The Credit Bureau-free loans come mainly from Switzerland or Liechtenstein and are the business of credit brokers. Before you put your trust in a financial service provider, their business practices should be checked. You can carry out a credit comparison that shows the conditions and requirements for an instant loan without Credit Bureau and serious. If advance fees are listed in these conditions or if insurance contracts are made dependent on a loan commitment, then you should look for another intermediary. A reputable credit broker will only calculate his commission and expenses after the loan approval.

The conditions of the Credit Bureau-free loan include a regularly incoming and sufficiently high income that results from a self-employed activity. The income must be above the garnishment limit. There must also be an open-ended employment contract that has existed for at least one year. If you have no income or only show irregular income, you cannot take advantage of an instant loan without Credit Bureau and serious.

Poor liquidity can be improved with a Credit Bureau-free loan. The terms of these loans are significantly better than, for example, the overdraft facility at the house bank. Under certain circumstances, you can submit the loan application to a credit bank yourself. Since 2010, this has been Sigma Kredit AG from Liechtenstein, which grants these loans. Current conditions and interest rates can be found on this bank’s homepage. The procedure is the same as with a credit broker, only the commission is eliminated. But if there is an unfavorable situation, long-term financial service providers can make a comparison at domestic and foreign banks and find the right loan for their customers.

The outlook

The outlook

Those who opt for a foreign loan should be able to pay the installments in the long term without there being any payment problems. Since the approval of this form of credit is only subject to income, a garnishment of wages must be signed.

Foreign banks offer their customers not to pay off the loan in full. At the end of the term, the remaining amount can be paid in one amount or redeemed with a loan. Appropriate financing and debt rescheduling plans are worked out so that the customer can carry out his financial activities in the long term. For an instant loan without Credit Bureau and serious, a foreign loan can be the last option if you choose the credit broker carefully and pay attention to the conditions.