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How Does Private Lending Work?

There are a number of reasons you may be looking to steer away from a traditional financial institution and looking at borrowing money from a non-traditional, private lender. Banks can be slow, and the process is often very detailed and time-consuming. All this, and there’s no guarantee that you will be lent the money at the end of it. Greater flexibility and quick turnaround times are sending more and more people to private lenders for their loan needs. So how does private lending work?

How Does Private Lending Work?

A private lender is a non-institutional, also known as a non-bank, individual or company that loans money. Generally, these loans are secured by an asset, such as a deed of trust for a house. The relationship between you and the lender is often a much more direct one than that with which you might have with a bank. You will deal with the lender on an individual level, and not through an institution. Private loans generally have shorter periods on them, and the money is usually borrowed for a specific purpose. This purpose could be for a business, personal use, investment, finance settlement and so on.

There are a number of reasons you might be looking into private lending:

  • Processing time: banks and traditional lenders have much stricter measures in place when it comes to taking out a loan. It can take time to fill out your application and have it approved.
  • Banks said ‘no’: you may have tried to take out a traditional loan with the bank and being knocked back in the process. For this reason, you may be looking at a private loan as an alternative.
  • Low credit score: one thing that can prevent you from taking out a traditional loan is a low credit score. If you have a poor credit history, it can be harder to take out a loan. This is because you are considered a risk. A private lender may be more willing to take a chance on you.
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Advantages of Private Lenders

Whether you are looking at taking out a loan for your business, for yourself, or looking at a new investment opportunity, there are a number of advantages that come with using a private lender:

  1. More personal: the private lender gets to know you and your needs and is likely to understand the struggles you are going through and be willing to help. You aren’t a number to them, but rather a person going through something they may have experienced in the past. Therefore, allowing them to empathise with your situation.
  2. More control: traditional lenders often have set ways loans are carried out and paid off with no room for negotiations. Private lenders are usually more open and flexible to changing the loan terms to suit your direct needs. This may involve monthly repayments instead of fortnightly, or a longer loan period to enable you to pay it back on time.
  3. Less rigid criteria: unlike a bank that looks into your credit score, borrowing history and financial situation to determine if you are worth the risk, a private lender is much more open to your situation. Even if your credit rating is low, they are more likely to offer you better terms than a bank would.
  4. Fast process: unlike traditional financial institutions, the application process for a private loan is often much shorter. In addition to this, the process often comes with more relaxed conditions. This means you can have the money in your hands as quickly as possible.
  5. More flexible: private lenders offer a wide range of loan products which aren’t commonly available in banks. These include bad credit loans, no credit check loans and cash advance loans.

Disadvantages of Private Lenders

Of course, private loans do also come with some disadvantages.

  1. More susceptible to a dip in the financial market: recessions and other major financial downfalls have forced some private lenders to withdraw from the market over the years. This is why it is important to look for well established private lenders. Make sure to look around for those who have been around for a long time. Also, try to determine whether they seem large enough to remain strong. The Australian Lending Centre has been around for 30 years and is one of Australia’s leading private lenders!
  2. Interest rates can be higher: while this is not always the case, interest rates from private lenders are generally higher than those of banks. However, these lower rates from banks don’t outweigh the fact that their application process can be complex, slow and often come with little reward.

Knowing the answer to how does private lending work may have you questioning whether it is a safe option.

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Is Private Lending Safe?

Private loans can carry a level of risk with them. However, it is important to note that both private lending and traditional lending are regulated thoroughly in Australia. It is just different government regulators that oversee them. Private lenders must abide by the Consumer Credit Code, which governs all credit transactions in Australia.

When you select a private lender, you can rest assured that both you and your finances are protected when entering a transaction. It’s normal to feel concerned or sceptical. After all, taking out a loan is a big deal which takes trust! But so long as you understand how does private lending work before entering an agreement, you will be in control.

Taking Out A Private Loan

Are you looking to reap the benefits that come with taking out a private loan? Speak to the team at Australian Lending Centre. We are Australia’s trusted private lender, offering fast and flexible applications, competitive rates and quick turnaround times. You can be told yes and have the money in your pocket as soon as possible. With over 30 years of specialist experience, our experienced team will assist you the entire way and tailor loans to suit you. Let’s talk through your options and find solutions to help you to reach a positive financial position.

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Emergency Business Loans – Risk vs Reward

As we find ourselves in the middle of a global health crisis brought on by COVID-19, there comes a point where protecting physical health comes at the expense of our financial health. Employees at risk of carrying the virus are being forced to stay home. Spending habits have completely changed. The stock market has crashed. The list goes on… But what does this mean for your business? Cashflow is likely to be stretched within any company at this time, particularly within business start-ups. If you don’t have much money in the reserves then how can you keep your business afloat if the worst does happen? Emergency Business Loans can provide a fast source of income for when things don’t go to plan. This sounds great, but what are the risks?

What Are Emergency Business Loans?

Emergency business loans can provide a fast source of income to give your business the cash injection it needs during tough times. They are usually granted quickly and you don’t always need a great credit score in order to be approved. But they do often come at a cost, including higher interest rates than a standard loan. Emergency loans come in many forms. These include unsecured personal loans, credit card cash advance loans, payday loans and even pawnshop loans.

Emergency personal loans

The great thing about emergency business loans is that they can be processed extremely fast. You can expect to receive an emergency business loan within days of approval. Depending upon your credit score, you might qualify for an unsecured personal loan. This means that the loan will not be secured against any assets, such as property or a motor vehicle. Personal loans usually have fixed interest rates and can be paid back over a set period of time. Before taking out an emergency personal loan, you should first ensure that you will have the funds available to pay it back, otherwise, you will wind up in a worst financial position than you started in, along with your credit history taking a battering.

Emergency cash advance loans

It is possible to use the remaining balance on a credit card to take out as a short-term loan. This will mean a higher interest rate than normal and this rate will also be relative to how much you take out. So be wary of how much you do borrow via a cash advance loan.

Emergency payday loans

Unless you’re expecting an influx in cash in the very near future but are in a desperate and immediate need for cash to tie you over, for the time being, a payday loan is a risky option. APR’s can be as high as 400% and need repaying in full, rather than in instalments. This should be a last resort option. It’s easy to become trapped in an endless cycle of re-borrowing in order to pay the last payday loan off.

Emergency pawn loan

Another last-ditch option here. You can have personal items valued by a pawnbroker, of which they will use as security in order to back the loan. And if you find yourself unable to repay the loan, your pawned item will be listed for sale.

Are There Alternatives to Emergency Business Loans?

Your personal credit score will not be affected by your business loans. Nonetheless, you still need to submit your personal credit rating. You also need to prove your revenue for a year or two. Banks have tightened their lending criteria in recent times and often require financial history or in-depth account records to assess the capacity of the business to handle their financial obligations. This means that applying for emergency business loans through a bank can be a tedious, time-consuming process. For this reason, if you need funds fast, then banks aren’t a great option.

Emergency business loans may come at a higher cost for borrowers with no proof of income and a poor credit rating. When this happens, it is advisable to search for other options. Here are two alternatives which could help you establish or maintain your business especially when there is an urgent need for funds:

Line of Credit

Do you have a business account with a bank, but don’t qualify for its traditional business loan? You can apply for a line of credit instead. A line of credit enables you to access extra money whenever you need it. This is because they don’t have a fixed term, unlike personal loans. So, you can use it without applying for another loan. You also only pay interest on the amount you have borrowed, not your entire credit limit. However, usually, interest rates are usually variable with lines of credit, meaning that they can fluctuate up or down. You also can’t expect a quick turnaround with a line of credit because it may take weeks before it gets approved. Yet, it can still be a very useful resource for future business emergencies.

Specialised Lenders

Specialised lenders like Australian Lending Centre cater to businesses that do not qualify for traditional emergency business loans. ALC understands that business must continue as usual despite any financial drawbacks.

Considerations Before Taking Out an Emergency Business Loan

If you want your business to keep operating, you need the right funding to pull you out of problematic financial situations. There are also some management decisions that require immediate cash to sustain growth and avoid serious fallbacks.

What are the things to keep in mind when applying for emergency business loans?

Determine the business’s needs and the amount you need to meet it

It is important to have a clear idea of what you really need before you sign the loan application form. It is very easy to lose track of what you intended to do from the start if you don’t have a clear understanding of your needs. Remember that the amount must not be greatly higher than your actual needs. When running a business, it’s important to remember that the costs must be lower than the profit. Otherwise, you will end up spending more than what you actually earned and your business will suffer.

Review your credit history

Have you missed or been late on some of your previous debt repayments? If so, why did it happen? Before you apply for an additional loan, make sure that you have a good budget in place to avoid repeating the same mistake.

Specialised lenders may offer bad credit business loans, meaning they can still approve your loan application despite negative credit history. But reviewing your credit file is good to practise. You may find that there are defaults or judgements which have been incorrectly listed. So, before you send your business loan application, make sure that your credit file is accurate and up to date. Companies such as Clean Credit are able to quickly and easily assess your credit file and repair it if required.

Study your financing options

Specialised lenders may offer better terms than traditional banks, especially if you don’t have a stellar credit rating. Review the company and its loan products, and compare them with other financing institutes. Check if the financing procedures are safe and secure and if you will be able to save more money in the process. It is also important to talk with the loan officer and ask about the details of the loan, including its comprehensive terms and conditions.

Always consider your business plan when applying for a loan – make sure that the amount you borrow and the financing agreement will support your plans. Use every cent you get to support your goals and to build a solid credit history so that you can quickly access business loans with better rates in the near future.

Emergency business loans from specialised lenders are usually approved between 24 hours and 7 days – so it is advised to create a budget before you send in your loan application. Not only will it ensure that you will use the money exactly as you planned, but it will also keep you from defaulting on your loan repayments.

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How to Deal With Rapid Business Growth

When your dreams come true, and your business is not only up and running, but thriving and growing, it is truly a joyous feeling. Although you may want to take some time to bask in the light of your successful accomplishments, rapid business growth is actually a time for you to take a step back, to regroup, and to refocus.

As counterintuitive as it may seem, business success and growth is optimal for analysis, because if you don’t address the success and growth, you run the risk of false complacency and mindless routine, both of which can quickly derail expansion and progress.

Therefore, after that well-deserved pat on the back, sit down and try to understand why your business is so successful. It may be a strange directive, but by acknowledging what you do well, you can also understand what needs improvement. Your business strengths can be honed even more or expanded to different areas of the company.

Rapid Business Growth Means Big Changes

By going through receipts, invoices, payslips, bills, product assessment and/or services provided, you will be able to ascertain if you are good at budgeting, finances, predicting trends or even data entry. All of these facets constitute a business, and if you can identify the positive factors, then you can see the negative ones as well. It is possible to turn the negatives into positives.

Another source of feedback is customers:

  • Why are your customers so happy?
  • Why are they coming to your business rather than your competitor down the street?

Talking to customers individually or corresponding by email will help you see their perspective and will encourage customer loyalty. Without customers, there won’t be a business, so treat them well and listen to their comments, no matter how insignificant.

It also helps to have a business mentor. Depending upon how your business is funded, you might have private or angel investors who can bring a great deal of sound advice and experience to the proverbial table. See them not only as a cash resource but also as a font of knowledge.

  • How do they handle rapid business growth?
  • What are their suggestions?
  • How can they be of service to you during these exciting times?

Ask Your Closest Allies

Since we are focusing on the people who surround you, also turn your attention to your team. They can offer unique ideas and different perspectives as to the success of the company. By assessing their skills and their compatibility, you will be able to see if your team is a well-oiled machine that works together. This may be a reason for your success or it could use some more grease.

If you conclude that your team can handle the business growth, and continue to do so in the future, then this is definitely fortunate. However, don’t be afraid to add new talent to the team. Take a risk and hire people with more experience or more education, since they can bring entirely new working methods and ideas to the company.

Rapid business growth may spur you to hire new people, as mentioned above

However, before doing so, you might want to see if your team can do the work or to assign different chores to a range of staff. By shifting and sharing responsibilities among employees (and yourself), you create a different dynamic that might benefit you even more. The team could run more efficiently or people might discover hidden talents.

Adding More Employees May Help

If you still feel the need to hire new people, to keep costs low initially, you might contemplate using a temp service. In this way, you can see what roles need to be filled and how the group environment changes. After a certain amount of time, you will better understand your employment options, and you can always transition a temp to full time.

Freelance workers are an additional source of labor. By outsourcing data entry, accounts, or marketing, you can alleviate some of the work burden on staff, while again, keeping costs low, while you analyze your business.

Adapting to new trends and technology is key. As you well know, everything in the virtual digital world is constantly updating, becoming faster and better. Computers, programs, devices, and even wifi service are forever changing and while some of it may be blatant marketing, some products are worth researching.

Don’t Get Left Behind

Why be left in the dust due to a stubborn attachment to an old program or an antiquated banking system? Don’t be afraid to try new things that might actually make your business run smoother and ease your own stress levels.

Even though you must be doing something correct to achieve rapid business growth, studying emerging trends and adapting to them is an important strategy. Adjusting your business model and testing multiple ideas is a means of keeping your company fresh and innovative.

Businesses are often in constant flux, and flexibility regarding that constant flux is a very significant way to manage your rapid business growth.

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What Are The Benefits Of Using An Alternative Lender?

Following the GFC, banks became very cautious with how they lend their money. They didn’t lend to certain borrowers particularly those with bad credit or small businesses – in the fear that they would not be able to get their credit back. As a result, many businesses fell into bankruptcy because they had no one to turn to for financing.

If you’re looking to start a business, it can be even more challenging to secure financing from a bank. To get your business operational you may need some sort of finance. This is because you cannot start a company without the necessary capital to sustain it. When banks close the door your business dreams, just remember that it is not over yet. Aussies have one more form of financing that they can use – and that’s alternative lending. Slightly different from the traditional bank, alternative lenders have become quite an attractive choice for those that are in need of a loan.

What Is an Alternative Loan?

Alternative loans are the kind of businesses that aren’t provided by traditional lenders – for example, banks or credit unions. Examples of these kinds of loans are private loans, bad credit loans, wholesale funds, peer-to-peer loans, start-up loans, and so on.

Each of these loans has its own terms and conditions – which is why you must research accordingly. Depending on the lender, you might be asked for a higher interest rate, or given a smaller loan amount. But depending on your preferences, you will choose the one that is most suitable for you. Overall, alternative loans offer a second chance at finance.

Why choose an Alternative Lender?

There are various reasons why you might want to go for an alternative lender.

The Application Process Is Quick and Easy

Every alternative lender will have a straightforward loan application process. Technically speaking, all you have to do is provide some basic contact (or business) information, along with some financial data. A lender will need to quickly assess your financial situation to see whether they have the right loan product available.

Depending on the lender, you can expect to have your application completed in as little as 15 minutes, provided you are working with a tech-savvy lender. If you are borrowing online, it is even more convenient, as you will not have to get out of the comfort of your home in order to make the application.

Funds can be released quickly

It takes a few minutes to a few hours for your application to be approved – all depending on the time at which you make your request. The quicker that you work with the lenders, the faster you can get your funds. At the Australian Lending Centre, we offer an easy way to upload your documents. It takes a matter of minutes and can be done from your mobile. From the moment your application is approved (assuming it is), it can take as little as 24 hours for the money to appear in your account (depending on the lender)

Some lenders do so in 48 hours, but this is still the better alternative to traditional banks, for which you will likely have to wait entire weeks. This way, it will be much easier for you to start off with your projects right away.

You May Borrow with Bad Credit

If you have no credit or bad credit, there is a high chance that banks will not lend you money. They will see you as a red flag – and they will believe that you will not be able to make your payments on time. Unless your credit is above a certain number, there is a high chance that your request for a loan will be denied.

However, alternative lenders such as Bad Credit Loans generally have far fewer requirements. Whilst they still asses your finances, they will still lend to bad credit borrowers. Therefore, if you had trouble making timely payments before or had no luck with traditional lenders, then there is a high chance that you might be luckier with an alternative lender.

You May Use the Funds However You Want

Certain lenders expect that you use the funds that they give you in a particular way. For instance, if you are the owner of a construction company and opt for taking out a business loan, then you need to specify what you plan on doing with that money. As an example, you have to specify in the application that you need the loan to buy a bulldozer – and the lender will know that your profits will start growing with that purchase.

However, with alternative lenders, this will pose no problem. For all they care, you may use that money to buy a bulldozer, pay old Jim’s paycheck, or purchase a new fancy pen for the office. Obviously, you will use that money wisely – but what matters here is that the lender won’t set conditions on how to use that money.

Should I use an alternative lender?

Alternative lenders represent a very convenient solution when you are running low on money, but the banks won’t give you a loan. Alternative lenders offer people who have been refused in the past with a second chance at finance. All that you have to do now is find the right lender that will provide low-enough interest rates.

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Short Term Loans Facts You Probably Don’t Know

Short term loans are convenient and quick ways to get money in a frenzy. You don’t have to worry about a credit check because many lenders offer no credit or poor credit loans. If you have a stable income, you’re over 18 and you’re willing to pay off a loan in as short as two weeks’ time, you have a great chance of qualifying for a loan. A short term loan is also a very potent financial tool that can help you break the cycle of debt and say goodbye to high-interest credit card debts. Read our short term loans facts now and take advantage of this useful source of finance.

How does a short term loan work?

It takes only a few minutes to fill out the application form. In 15 minutes or less, you can get the result of pre-assessment. Lenders will ask basic questions with a soft enquiry such as your income and age and the amount you want to borrow. In most cases, when you apply for quick cash like 90-day loans, lenders will review the information you provided, ask for your income verification and send you a loan offer.

What loan amount should you take? 

Depending on your financial situation, a lender may offer a high loan amount. If you don’t need all of it; don’t take the full amount. Lenders often extend higher amounts of short term loan to earn more money in the form of interest. Stick to the original amount you intended to borrow—which must be limited to the amount of money you need to meet your current need so that you can easily pay it back as soon as you can.

alc simple application process

How long is the repayment period?

Short term loans can be as short as two weeks to three months, or up to 1 year. Often, borrowers pay back the money back in full within 90 days. If they receive their salary twice a month, they pay back a portion of the loan into bi-weekly payments. The lender can break it into 3 monthly payments, 6 monthly payments or more depending on your income. Australian Lending Centre offers flexible repayment terms.

What fees are included in the monthly repayments?

One of the more complicated short term loans facts concerns the fees. The repayment amount includes the interest rate and fees on top of the principal amount of the loan, divided into several payments. The repayment amount each period depends on the total cost of the loan including the amount you borrow.

It is important that you review the terms of the loan, especially the loan amounts, interests and any fees before you accept the offer. If there are any hidden fees or the interest rate is too high; consider declining the loan. It is important to enquire about the interest, and completely understand the loan agreement that you are entering before you sign.

Why do people prefer short term loans that regular loans?

Convenience is one of the top reasons why borrowers choose a short term loan over bank loans and other loan products. It has minimum documentary requirements and an easy income verification process. The review process is extremely quick. Short term loans are a convenient and easily accessible means of acquiring money fast.

Business loans typically require a business plan and extensive paperwork. With short term loans, you don’t have to show any proof or supporting paperwork as to where you are spending the money. Bad Credit Loans also offer Short Term Loans. If your credit history is bad due to a default, judgement or blackmarks you may still be eligible for a loan with no credit check. 

A short term loan is a reliable and flexible financial resource. In times of emergencies, a short term loan can prove to be your saving grace. Unlike traditional loans, you can access the money within 24 hours. Pay it off in just a few weeks or months. Short term loans don’t require collateral. If you have missed payments your assets are still safe.

How should I choose a lender?

There are multiple online lenders promising cheap interest rates, low fees and high amount of loan. But, don’t be fooled, some of them are either scams—asking for advanced payments before releasing the money, or those that charge hefty interests and fees, plus hidden costs that could probably put your deeper into debt.

Look for a credit provider with the following characteristics:

  1. It provides equal opportunity for affordable loans for people with good or bad credit. A stable lending company profits from offering quality products and reliable service, not because it squeezes money from its borrowers.
  2. The loan process is hassle-free. If you qualify, the lender would tell you right away and will make the money available in less than a week. It has a reliable screening system and credit evaluation criteria that allows it to screen creditworthy applicants as quickly as possible.
  3. It offers affordable interest rates, knowing that all borrowers—those with an excellent record or those with bad or no credit record at all must be given reasonably priced loan products to help them out in times of needs.

Now you know the short term loans facts, enquire with Australian Lending Centre to receive professional advice.

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The Rise Of Non-Bank Lenders

There was once a time where if you needed a loan, you only visited a bank.  Fortunately, times have changed.

Yes, you can still go to a bank but there are now alternative; more convenient options. Non-Bank Lenders offer legitimate and competitive loans that are fast and flexible. Battling against traditional banks, Non-Bank lenders have created a competitive environment for lending in Australia.

What is a non-bank lender?

Non-bank lenders are a lender or financial institution who do not hold an Australian Banking License. Strictly speaking, they are not a bank, building society or a credit union. Non-bank lenders typically source their funds from wholesale funds either in Australia or overseas markets. They lend out these funds, with a margin. Depending on the size of the lender, they may offer mortgage, personal loans, commercial or business loans.

One of the key difference between traditional banks and non-bank lenders is that Non-bank lenders are not authorised to accept deposits from customers. Banks, building societies and credit unions are considered as authorised deposit institutions (ADI’s). They are regulated by APRA (Australia’s Prudential Regulatory Authority) and ASIC (Australian Securities Investments Commission). Non-bank lenders cannot accept deposits from consumers. They are regulated by ASIC.

The history of non-bank lenders

The history of non bank lenders

Australia has a sophisticated, highly regulated and competitive financial system. There was once a time where if you wanted a loan, your only option was to visit your big bank. The process was long and draining.  If you’re your income was low, you were more than likely denied for a home loan.

After the first half of the 1980s, deregulation began to slowly make its way into the market.  In the 1990s, a number of non- bank lender such as Australian Lending Centre began to enter the market. These alternative forms of lending offered Australians with lower interest rates than the big banks.

Following the Global Financial Crisis, Non-Bank Lenders were forced to source alternative forms of funding. As the markets became dry, non-bank lenders even turned to the big banks for funding.

The past few years have seen a proliferation in Non-bank lenders. In 2018, Non-bank lenders reached an all-time high of 11 percent of the market. As banks move towards more responsible lending, they are tightening their lending practices. So if you are sick of getting rejected for a loan, there are alternative options out there. Consumers are becoming more wary of this and have been exploring non-bank lending options.

The Advantages and Disadvantages of using non-bank lenders

Advantages and disadvantages of non- bank lenders

Is it safe to use a non-bank lender?

Absolutely. Non-bank lenders are safe to use. It is important to do your research beforehand. Alternative lending has evolved over the past decade. Make sure to find a lender that is not connected with bank failures. Find a reputable and well-established lender that offers a personalised loan for your financial situation.

What happens if a small lender collapses?

  • If the lender is a small agency, they may be acquired by a larger well-established lending agency
  • A larger financial institution may buy out the smaller lender
  • The government may step in and provide financial assistance. This will come through the Guarantee scheme for large deposits and wholesale funding.

Choosing the right lender

Alternative lenders such as Australian Lending Centre have helped thousands of Australians, find the ideal loan. We have a committed team of experts that specialise in providing you with the right loan. Our goal is to help you stay on track.

To learn more about the Australian Lending Centre, click here.

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Business Loan Despite Bankruptcy

Bankruptcy is a highly dreaded word in the realm of financing and getting a business loan despite bankruptcy is a bit difficult. Even though it is dreaded, many people end up in a situation in which filing for bankruptcy is the only solution they have. Nonetheless, considering that you’ve done that in the past, a looming question is can I apply for business loans regardless of that? As you might expect, the answer to this question isn’t a fixed one – there are many factors that should be considered, which we’ll outline in the present article.

Bankruptcy Can Be a Fresh Start

Irrespective of the negative connotations associated with bankruptcy, you should note that this isn’t the end of the road – or at least it shouldn’t be this way. Even though it isn’t an easy thing to do, the most challenging process follows after filing for bankruptcy. This refers to aiming at rebuilding your finances and credit.

Generally speaking, a bankruptcy statement will remain on your credit for a few years’ time. Therefore, if you apply for business loans afterward, your capability of getting financing won’t be affected in any way. On the other side, if the bankruptcy statement still is still present on your credit report, which will, inevitably, impair your creditworthiness and reliability as a borrower.

Can I Apply for a business loan despite bankruptcy?

Yes. But bear in mind that your options will be limited. Generally speaking, the longer you wait after you have filed for bankruptcy, the more likely you are to get convenient loan terms and interest rates. At the same time, there are some lenders that are more open to working with you, as opposed to traditional banks whose lending criteria are rather stringent.

Nevertheless, the downside is that the interest rates and additional fees will be significantly higher than they normally should. Therefore, before you apply for business loans, make sure that you can afford to make repayments. If you can’t, this will imminently worsen your financial situation. Evidently, applying for a loan when you’re struggling financially is a decision that requires a lot of consideration and in-depth thought.

The Differences Between Personal and Business Bankruptcy

Considering that you own a business which has established credit, you might have the option of applying for business loans. In this scenario, your firm’s credit rating will be taken into account. In other words, your personal bankruptcy file won’t affect your ability to get business loans in any way.

Your personal credit score is a major constituent for most lenders. That is to say, your credit rating and personal finances are of major significance, even though this is to your disadvantage. Hence, depending on the state of your finances, you might be unable to get financing. Or, your only option could be getting business loans with unfavourable terms and interest rates.

What Steps Can You Take?

Separate Business and Personal Finances

Before anything else, you should strive to distinguish between your personal and business finances. The thing is that, if your business is new, this might not be a possibility. But, if you’re an established business owner, you should definitely separate your personal finances from your firm’s finances. Otherwise, you are inevitably taking unnecessary risks.

Apply for Secured Business Loans

If you really need a form of financing, your only option could be using your valuable assets as collateral for new loans. By adding collateral, you are instantly minimising the lender’s risk when they borrow you the money. This could increase the likelihood of having your application approved.

Be Patient

If you need a business loan despite bankruptcy, avoid requesting a $500,000 loan immediately afterwards. On the contrary, take up smaller amounts of money instead, and focus on making the repayments – this will allow you to rebuild your credit and prove that you’re trying to get back on your feet.

Explain The Circumstances of Your Bankruptcy

Talking openly about the circumstances that led to your current financial situation can be helpful when you apply for a business loan despite bankruptcy. There are situations in which unexpected circumstances can cause unwanted complications. We’re referring to health problems, divorces, or natural disasters – these could seriously mess up your financial life without any fault of your own. Therefore, by being upfront and transparent, you can increase your chances of getting financing for your business.

At the end of the day, it is mandatory to comprehend that each lender has different criteria that ought to be taken into account. Do your research beforehand, so that you don’t end up sending numerous applications all around without any results. Australian Lending Centre can help you – make sure you visit our website to find out more about our loan offers.

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Loans from Private Lenders With Bad Credit

Just a couple of years ago, having a bad credit score was an end-of-times scenario, although now you can get loans from private lenders. It simply meant that the unfortunate owner of said credit was unable to get another loan for years or for the rest of their life. Luckily, we’re past that now. The evolution of banking and lending has enabled a new wave of borrowing.

If you’ve ever had a low credit rating, applying for a loan with a private lender was most probably the first solution to get you out of your predicament that you thought of. If you’re reading this because you’re aiming for a loan, but your credit score leaves a great deal to be desired, we’ll teach you how to get the money you need.

Private Lenders & Bad Credit Loans 

Shop Around for loans from private lenders

You should not settle for the first lender you find during your search because you will be missing out on more advantageous offers for sure. Compare a few offers and dissect them. If you can’t do this on your own, we recommend you hire a financial advisor that specialises in Loans for People with Bad Credit.

Make Your Case 

Even if private lenders give people with bad credit a chance, they’ll have to know what happened. Also, people who tend to put the blame on their banks but seem to be completely oblivious that it’s their fault will make private lenders a lot more reluctant to help them out. Unlike a bank, a lender won’t show you the door as fast as he sees your credit score. Plus, he’ll listen to your story. Perhaps you had a medical emergency and you couldn’t keep up with the monthly payments and your credit score dropped – in this case, a private lender will know that you’re not a bad payer.

Consider a P2P Platform 

P2P stands for “Peer-2-Peer”. This is basically a way of lending that pairs up people and private lenders. Let’s assume that your credit score is in a certain figure and your financial needs, too, are in a certain amount. When you go to a P2P platform (a fancier term for a P2P website, really), the professionals there will consult the lenders they collaborate with and will get back to you with the best deal, i.e. the one that’s in line with your requirements.

Opt for Secured loans from private lenders 

As risky as it is, you should be willing to take this step. The thing is, you can definitely get a loan with bad credit, but the lender won’t be very keen on giving you a low interest rate.

A secured loan is attached to assets, such as your house or car. If you fail to pay, the lender can place a lien on the asset that the loan is secured to. On the bright side, if you make your payments appropriately and things don’t go awry, you’ll get a much lower rate than you would with an unsecured loan. And what’s more, it will be in a much larger amount.

Avoid loans from private lenders that Are Too Eager to Help

Private lenders will always ask for proof that one’s income is sufficient to allow him to borrow money and live however decently for the rest of the month. If a lender doesn’t ask you for this kind of proof, an alarm should go off in your mind. Serious lenders that are actually genuine and work in accordance with the law, will never give you money unless your income allows it.

You might think “Oh boy! I’m the luckiest guy alive!” but you really aren’t. You might end up in even more debt and wreck your credit score to such an extent that it will be impossible for you to ever borrow money again.

Concluding Remarks 

Private lenders are evidently of great help to people who can’t get loans from traditional lenders like banks and credit unions. Even though it’s fairly easy to get a loan from an online lender, you shouldn’t lose your wits. Approach things with a clear mind and a thorough understanding of how loans work in general.

If you’re having trouble with finding a lender you can place your trust into, please visit Australian Lending Centre and make an inquiry concerning the type of loan you’d like to apply for. You can rest assured that you’ll get what you’re looking for plus some valuable, professional advice on how to improve your credit score.

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Questions for People Applying For Business Loans

Are you applying for a loan so you can start your own business? Here are five questions about business loans to help you make the right decision.

Am I a manager or an entrepreneur?

Entrepreneurs and business managers face almost the same stress when it comes to operating a business. But the two are on opposite sides of the spectrum. They’re different. What is the difference? A manager operates an already-established business. They may not be the people who started it and founded it, but they are the ones who own it at the moment. A manager also has to make sure that the challenges the business faces are handled properly. He also has to hire and retain hard-working employees, know the niche their business in focusing on, and be able to improve whatever needs improvement.

Entrepreneurs Are The Innovators

An entrepreneur, on the other hand, is the one who creates the business. He looks for opportunities that are what the market needs, and converts them into a business plan. A real entrepreneur has the eye to identify opportunities needed in the market and also has the ability to turn those opportunities into businesses.

Managers Are Effective With Day To Day Operations

If you think you can be an effective manager but you don’t have the enthusiasm to start everything from scrap, you might consider franchising. It doesn’t involve the stress of putting up a new business altogether and you have tried and tested marketing methods and business plan to help you get started. But, if you think you have the heart of an entrepreneur, go for it! Get the business loan you need to kick start your business and you will surely beat the odds and succeed in your business.

What is my business model?

This is one of the questions about business loans with high importance. Are you putting up a home-based business, an online business or a traditional brick and mortar business that requires a good location?

Create a Business Budget

Create a business budget before you fill-up the application loan. It is important to include the annual budget for the upcoming year, based on the current year’s expenses. When making a budget, don’t forget to review you’re the actual expenses versus the budgeted amounts for the past two years of operation to get a good idea of your average income and expenses.

No Guarantees on Sales Forecasts

While it is important to make a sales forecast, bear in mind that you cannot guarantee the exact sales volume. So, when coming up with a budget consider your past expenses and profits as well as your realistic sales forecast.

Business Expenses

Create a ledger are of your business expenses based on your business model. For example, list fixed expenses such as:

  • administrative expenses
  • marketing expenses
  • payroll
  • rent or mortgage
  • utilities

These amounts are fairly consistent each month regardless of your sales volume. Don’t forget to include the list of variable expenses —or those that fluctuate each month. These include raw materials, inventory and manpower.

Is Self-Employment good for me?

Self-employment is starting your own business- with your own finances, own plan, own budgeting, own everything. Now it also has its own pros and cons like everything else. Being able to own a business may sound quite great at first. But sometimes, it gets tiring when you’re the only one working. Independence is a good thing. You wouldn’t have to rely on anyone else, which minimises the possibility of small quarrels between co-owners.

Are You After Fame or Freedom?

If ever your business becomes known, you’ll be known as the person who single-handedly founded your company. This is actually a great advantage. Imagine, being the only one who founded a huge business? That’s a big deal. To other people, owning a business means being able to control whatever happens in their lives. That’s what we all want right? Freedom to do what we want, say what we want to say.

Being Independent

The search for independence has struck many – this is the reason why the majority now wants to start their own business, for them to have more control over their lives. However, drawbacks exist- such as payoffs.

Loans Give Your Freedom To Chase Goals

When you have access to business loans, regardless of your credit score, you will have the freedom to set your goals.  It is also a good motivator to track spending—knowing that when you do, you’ll be an inch closer to the accomplishment of your goals. Finally, it is a good source of emergency funds. You can cover up to 3 months of working expenses in case you hit an unexpected situation.

Finances are the biggest sources of conflict

Financial issues are one of the commons sources of business conflicts-either with business partners, with suppliers or clients. That’s why it is important to have easy access to business loans to ensure that your business will go on as usual despite financial crises. But, you have to be careful with whom you borrow money from—a good lender would want its clients to move ahead in life. They will not charge hefty interests and unreasonable fees for a small amount, Look for a reputable lender that allows you to grow your business while you can comfortably repay your loan.

It’s common to have questions about business loans. After all, it’s a big decision which does come with risk. However, business loans can also bring great reward. Australian Lending Centre can provide the financial assistance that you need to push your business forwards.

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Developing Budgeting Techniques for your No Credit Check Loans

The aim of this article is to give you all the tools and techniques to improve and develop your budgeting techniques so you can fully enjoy the benefits of no credit check loans.

Do you have any concrete plan for your loan the moment you acquire it?

A financial plan will allow you to do the following:

  • Build your brand without fear of not being able to support the marketing campaigns
  • Boost your sales and income
  • Reach your target market
  • Get referrals from satisfied customers

Here is a step by step guide on how to create a budget for your no credit check loans:

Understand the real meaning of budget

A budget is a piece of paper, document or app that records the following:

  • actual income
  • projected income
  • expenditures over a period of time

When budgeting for no credit check loans, you should consider the following before making a decision about spending.

What is important to me?

Are you willing to trade off a comfortable retirement for a holiday in the Caribbean? Do you want to eat at nice restaurants and charge them on credit cards, copping interest in the process? Would you prefer to pay for your children’s education instead of purchasing an extravagant model of car?

Each of us has our own priorities. Someone else’s priorities may seem to be trivial to you. A simple event can be other person’s bucket list experience. Your choices depend upon what is significant for you. Sadly, a lot of people get into debt for things that do not really matter to them in the grand scheme of things.

How do I want to live?

Nobody wants to live below the poverty line and not everyone is comfortable with debt. But, when a crisis occurs, such as family breakdown, health issues or unexpected changes, you may be forced to go into debt — which may be too great for you to handle. Thinking about creating a debt management strategy, could help you handle debts and free up a little income to meet your daily expenditure.

How can I accomplish my financial goals?

Visualise your future

Imagine what it would be like to build your brand with the income that you have and the revenue that you can get if you manage your business well. The challenge is to bridge the gap between your present situation and your vision.

You can ask yourself, ‘If I want to be that person, what can I do right now to get there?” The answer may be uncomfortable for you at first, but when you see that you are getting through with it with flying colours, you will be encouraged to continue until you succeed.

Set realistic and achievable financial goals

What are your long-term and short-term goals?

Do you wish to save $50,000 for a down payment to your dream house? Do you want to be totally free from debt in 5 years’ time? Or, do you want to save $500,000 to put up a new business outlet? Your goals should be specific. Put a deadline for each of them and review or adjust those goals until you accomplish them. For example, if you want to have a comfortable retirement, define ‘comfortable’. When do you want to retire? How much money do you want to receive each month? Where do you want to live?

Set short-term goals or those that you can accomplish in less than a year. Perhaps you want to pay off your $100 credit card debt in 6 months or save $2000 for a nice pair of shoes for Christmas.

Make a plan on how to accomplish your goals

Here are three factors to consider when creating a strategy:

  • Income: How much does your business make? Look into your net profit to have an idea of how much you can afford to save on a daily basis.
  • Consider your fixed and variable expenses, and your cash flow projections. The problem arises when there is nothing left for you to save.
  • Does your business maintain an emergency fund to cover unexpected expenses? If not, you may have to resort to financing to access quick cash and avoid possible business disruptions. If you have goals, it is important to start filling up your savings account as soon as you can.

Allocate the proceeds of your no credit check loans to meet your financial goals

If you have long-term goals, you can use the proceeds of your loan to boost your capital and eventually increase sales and income. It can also help you meet short-term goals, such as paying suppliers, buying new equipment and other urgent expenses. Budgeting for no credit check loans is crucial.

Sometimes, you have to make tough decisions to ensure that your projected income would exceed your projected expenses. You can either get a loan to raise your capital and eventually increase your income, or you can use it to consolidate your other debts and eventually save money in interests and fees.

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How to Obtain a Huge Private Funding

Are you looking for ways to get private funding for your research or business venture? Here are ways to start, nurture and grow relationships with private funding resources.

Know what your donors need

A private foundation can give away billions of pesos in a snap if it meets their interests, regardless of your needs and wants. The secret is in finding the right match. Your need must match your donor’s needs. That is why it is important to conduct as research on the mission and vision of a company, its patterns of giving, legal and geographic limitations and most of all, its interests.

Significant research may be needed to understand what private investor look for in a proposal. This will; help you evaluate the different approaches you may have.

Your presentation must match their business goals and the company’s passion. You also need to be able to assess how much impact your project could do to the company’s image.

You need to be aware of the different programs of the investor, and the roles they play in maintaining the company’s reputation. For example, it makes sense to apply for private funding for your recycled materials business from a company with advocacy on solid waste management.

Prepare an impressive proposal 

Write down the needs statement that lays down the problems. What problem does your project intend to address? Offer concrete proof of the program’s needs, such as statistics and results of the most recent research or government data. There’s nothing wrong in arming you proposal with factual documentation.

Describe the solution and show that you are qualified to do it. Make sure that your proposal best represents the program you are proposing to your private funder. Don’t give any allowance for spelling errors, or other ‘grey’ areas that would leave a bad impression. The proposal must be accurate and specific. The paper must be crunchy clean. Be specific when it comes to asking for money. Make it persuasive, convincing and indicate a solid promise that you can deliver exactly what you promise. On top of it all, present a concrete plan. One that you can substantiate with figures or at least reliable proof that it is something ‘doable’.

Let the funder know who you are and what you represent

Trust is one of the most important issues in getting a private fund. Give your funder a concise overview of the whole organization or company you represent. Make a good introduction about your organization, your objectives and strategies, as well as your methods of addressing your problems. If you can give them a background of your agency or organization, some endorsements from other agencies and the qualifications you may have that show them why you qualify to handle such project—give it to them. It pays to let the funder know that you exerted efforts in letting them know you, before they part with their money. It is not enough that you let them know what you intend to do with the money. The most important question is, ‘why do you need funding?”

On another note, it is important to convince the investors that you have a good idea of what you do and you know exactly what you are doing. BY presenting a good business plan, you are demonstrating that you can use the financing really well and that you will have enough money to repay them in return.

Create a realistic budget

Write down the realistic estimate of the costs you may incur in conducting the project. It is costly to implement and operate a project—so brace yourself for expenses such as rent, salaries, supplies and other daily operational expenses on top of the required capital to get started with your project. Make a clear outline with a breakdown of expenses—such as how you plan to allocate the money you receive from the private funding resource and other sources to support your project.

If you’re looking for private funding, but you’re not sure how you can get approved—you might want to try applying for alternative funding options.  Second mortgage, business loans and other small business loan products available at Australian Lending Centre are practical alternatives to intricate private funding options. 

A solid budget is indispensable in managing your working capital.

You may be able to reduce the costs of your daily operations as well as meeting financing needs and debt relief. It is also important to implement cost-cutting measures such as limiting the credit to your old customers and chasing up overdue debts. Using a point of sale system to track the cash coming in and going out on a daily basis could also improve your cash flow.  If you have many collectibles, it may be time to reduce the collection period by at least 7 days. It could at least increase your cash flow at times when suppliers are most likely to collect payments from you.

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How to Get an Affordable Second Mortgage

By getting an affordable second mortgage on your property, you are not only increasing your borrowing power — but you can use the extra money for your other needs. If you planning to increase your overall borrowings, but you have an existing mortgage, the easiest approach is to refinance it for a higher amount. One of the most important considerations in getting a second mortgage is reducing your balances by up to 50 per cent! You may ask, “How is it even possible?”

The truth is that a lot of people incur interests due to unpaid mortgages which build up over the years. In doing so, they are not only reducing their home equity, but they are also putting their homes at risk of foreclosure. So, if you can successfully negotiate your balance reductions and avoid foreclosure of your property at the same time, grab that chance. It does not only help you save money and at the same time avoid legal actions that may damage your credit status.

Here are tips to help you get the most practical and most affordable second mortgage possible:

Research is key to an affordable second mortgage

You can search for public forums and blogs that talk about the best second mortgage options available for someone with the same situation as yours. It will help you filter debt settlement companies that are willing to work on your case for a fee. By doing your research, you will understand the importance of negotiating for balance reduction, the expenses you have to pay in the process and the available options for you in your area. Just make sure that you know how to filter objective from subjective advice. Otherwise, you may immediately take up an expensive service when there are less expensive ways of solving your mortgage problems.

Weigh the Pros and Cons of Second Mortgages

In reality, it only makes sense to get a second mortgage when you don’t have ready access to funds but want to pay for your mortgages and other high-interest debts. It is also a practical and low-cost alternative for those who want to start a business. Some people who are in serious debt also use second mortgages to consolidate debts. Before applying for an additional mortgage, ask yourself if it is possible to meet your financial need without getting another debt. Or, if the proceeds of the extra money you will get are worth the interests you have to pay for a long period of time.

Choose the right lender

Some mortgage applications take a lot of time. If you don’t want a very time-consuming process, like those in banks which discourage low-income applicants with low credit scores to apply by implementing very difficult qualifying criteria, go for alternative lenders like Australian Lending Centre. The company implements fast approval process because it often handles second mortgage applications and there are no errors and delays involved because the staffs are skilled and experienced in this type of loan. The fees are affordable and manageable as well.

After that, use the proceeds of your second mortgage top pay for your urgent needs. That means you need to learn to prioritise your needs-and spend only on those that would improve your financial situation. For example, if you still have a car which is up and running and you have a huge debt to pay, perhaps it would be wiser to pay off those debts before you buy your dream car.

Thoughts for Consideration on an affordable second mortgage

It is not easy to bring yourself to do all those things mentioned above. Almost everyone knows how difficult it is to get an affordable second mortgage especially if you have a poor credit rating. On top of it all, you may have developed financial habits that diminish your income and your financial strength. But, over time, with practice, you can break habits that you may have been practising for many years.

The pull to take advantage of a second mortgage that offers ‘high equity’ at the expense of high interest may lurk everywhere you turn. There are many loan sharks offering ‘quick approval’ second mortgage online. The ads may show people enjoying a dream vacation, staying in a lavish home or probably spending for a grand wedding despite their bad credit. But the truth is that, when you have a bad credit—you should be careful with whatever money that comes your way.

Remember that getting into debt is a financial decision with a huge emotional impact. There could be many personal and emotional hurdles that can get in the way of making the best financial decision. That’s why it is important to educate yourself about mortgages and how you can use them wisely to avoid self-blame and guilt when things don’t go as planned.

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Top Methods of Getting Personal Loans from Private Lenders

Every individual or family may need personal loans from time to time. It may be for various reasons: the car broke down, the house needs some renovations, or their daughter is planning to get married in Spring. Regardless of the reason, money is needed as fast as possible.

The problem is that options such as credit card debt or bank loans aren’t always available. Once more, reasons may vary. It may be because you built up too much bad credit or you have no collateral to attach to the loan.

In these cases, a personal loan from a private lender may look like a very good option. They are fast, easy to access, and may overall improve your financial situation. And this article will tell you the top methods of getting a personal loan from a private lender.

#1: Figure Out If a Private Personal Loan is Your Best Option

Before going for personal loans, you need to learn the difference between public lenders and private ones. For one, private lenders aren’t banks, credit unions or financial institutions. They are simply individuals (or companies) with no attachments to a certain institution that lends money to other people. Those who receive a loan from a private lender usually have a certain relationship based on trust.

A personal loan taken from a private lender is different from other types of private loans, in the sense that you don’t need to specify why you need a loan. On the other hand, public lenders will categorise the loan based on your needs: student loans, car loans, mortgage loans, etc.

Keep in mind that personal loans are very different from payday loans. A payday loan will have to be paid very fast – usually within the first two weeks – and they carry a very high interest rate. A private personal loan will have a longer time frame and a lower interest rate – but will still be higher than the one offered by a bank.

There are also risks to personal loans from private lenders, such as shorter payback periods or costly fees. Most will require collateral to secure the loan. If by any chance, you find yourself unable to pay the loan, the lender will be entitled to sell that property to get his money back.

#2: Consider the Alternatives

The most important part of getting a personal loan from a private lender is knowing that there are other options aside from them. If the return of your purchase makes your loan worthwhile, then getting personal loans from a private lender might not be such a bad idea.

Still, before going for a personal loan, you may want to check whether you can use cash to fund that purchase or not (or at least some of it). This may reduce the costs in interest, resulting in a much smaller loan.

You may also want to evaluate all your alternatives. Consider opening a line of credit, or getting a public student loan. If the interest rate is more beneficial for you, there’s no reason for you to take out personal loans. Only do so once you’ve burned out all the other options and know for sure this is your best opportunity.

#3: Access Your Options for Personal Loans

When opting for personal loans from a private lender, you need to do your research on the options that they provide. You may want to focus on lenders that are accredited or have been approved by the government.

You can go for individual lenders or companies. Browse through your options, and see which one is a better way to start. After learning of all the options, you may settle on the one you believe is more convenient for you.

You should also try contacting your family, friends, or business acquaintances. They may be able to offer you a personal loan quickly, with a smaller interest rate. Still, you may want to make sure that there is also a written agreement next to your verbal one. And you should keep in mind that failure to repay this loan can result in damaging your relationship with your lender.

Once you have explored all of your options, collect all the documentation that you need. You need to appear as creditworthy as you can. Show your income sources, your savings, or any physical assets that you use to secure your debt.

Final Thoughts

Personal loans from private lenders can be tricky to deal with – but they are also convenient if bank loans are not an option for you. All you need to do is research your options and come up with a convenient provider. Contact us for a free assessment that has no effect on your credit file and get one step closer to a suitable personal loan.

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Small Business Financing: Should You Consider Private Lenders?

I think we can all agree that in recent years, small business financing with private lenders has picked up a lot of ground against their more well-established peers, like banks and other institutions. This is because they are a lot handier than the latter.

Moreover, one might not need to provide as much documentation to them. But anyway, the question is: should you consider private lenders as a source of financing for your small business?

You be the judge after we outline some of the pros and the cons.

Why Private Lenders Are a Great Alternative

  • If you’ve ever needed financing before and sought it from some alternative lenders, you were probably taken aback by the fact that most of them wanted some control over your business in order to provide the financing.

There are very few business owners ready to put up with that. Lenders that are not affiliated with any bank won’t need to become members of your business. The process, however, is still the same. Lenders will weigh in the decision for some time, in order to see whether or not your business is worthy of financing or not.

  • Private lenders provide better repayment plans. You’ll discover that these lenders are actually interested in giving you the best possible terms. They’ll tailor a repayment plan that works for both you and them. So, apart from the funding you need, you’ll also be given fantastic terms and possibly counselling.
  • They aren’t afraid of taking risks. In fact, this is what being a private lender is about. A lender can do as much diligence as he pleases, but he still cannot be 100% sure that his investment is profitable. Banks – and you probably know this by now – are not very keen on taking risks. A private lender thrives on that.
  • They actually take a look at your business plan. If the investment is still seen as a risk, a bank representative will pack your plan up and show you the door. A private lender, will give you some advice on how you can better it.

Disadvantages Working with Private Lenders

To be fair, these “disadvantages” are the consequence of people badmouthing the private lending domain. For some reason, many think that this isn’t legal and that all private lenders are dabbed in loansharking.

This couldn’t be farther from the truth. Even though working with a private lender is highly advisable if you have a small business, this partnership can come as a package deal with some downsides, too.

For small business financing, these disadvantages are:

  • Higher interest rates (not always, but generally)
  • You may not get some of the tax deductions you’d get from “conventional” lenders

One thing is sure: getting loans from a private lender is so much easier than getting them from banks. This is the main reason why many business owners today choose to go with lenders in the private sector.

The process is simpler and the requirements are not as draconian as they are with the banks. All in all, it makes more financial sense to borrow money from someone who is actually trying to help you by creating repayment plans to fit your schedule and sales-cycle.

The “Third Party Circle” of Private Lenders for small business financing

The Third Party Circle of Private Lenders is comprised of lenders you have no affiliation to because you don’t even know them, to begin with. The First and Second Circles are comprised of your family and friends and their friends.

Yes, your family can be taken as a private lender. You’ll still get the money, and it will be easier to pay it back knowing that they won’t change terms or anything.

The lenders in the Third Party Circle are investors you can find on the market. All you have to do is look for them. You can do this on the Internet. Most business owners decide to borrow money from lenders in the TPC.

Small business financing last thoughts

Taking a loan for your small business from a private lender is highly advisable. As you’ve seen, there are many perks waiting for you. In case you feel like you don’t know enough yet about this topic, please contact us on 1300 138 188 for a free consultation today.

You’ll be in good hands, as our team of professionals will pick up your enquiry and will provide you with valuable free consultation. With all this being said, we hope you make the right choice.

A private lender should be, without a doubt, your go-to source of financing for your business, no matter if it’s small or already a titan on the market.

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Types Of Business Bad Credit Loans

If you have bad credit, you might feel discouraged, especially if you want to start a business. Whether you intend to establish a start-up or you need financing to keep your business running, you should know that there are some alternatives you should consider if you’re struggling with bad credit. Fortunately, there are several different types of bad credit business loans you can get to help finance your business.

The good thing is that, in spite of your bad credit, the door to obtaining financing isn’t completely closed. The bad thing, however, is that the choices are far from being ideal, and are rather limited.

Banks and lenders will base their decision of offering you financing depending on the credit risk of your company. Here’s what you should know about getting business bad credit loans.

Credit Card Financing and Home Equity Lines of Credit

If your credit isn’t the best, the odds are that you’ll encounter difficulties in qualifying for a traditional bank loan. In this scenario, the best thing you could do is wait and aim at rebuilding your credit score.

Still, one of the things you could do is getting a home equity loan – in the event in which you already own a house. Nevertheless, if your firm is a risky start-up venture, you should think twice before placing your home on the line. On the other hand, if your company is a stable, mature business, a home equity loan could be exactly what you need to get things going.

Furthermore, you could also have the possibility of getting a business credit card. In this scenario, you might have a low line of credit and a high-interest rate, which isn’t quite advantageous.


Still, if an entrepreneur wishes to rebuild credit and enhance his/her score, using a business credit card in this respect can be an excellent strategy. By proving that you can re-establish good payment habits, you increase your reliability.

Alternative Sources of Financing

Fortunately, Australian entrepreneurs may choose from a broad range of funding options for small businesses. However, it’s best to analyse your options in detail and establish the trustworthiness of the lender before you go for it.

For example, is an authoritative, top lender that specialises in offering bad credit business loans to Australians. We deliver an extensive array of financial services. We also advise you to discuss your options with a financial advisor, as your priority should be to make decisions that will help your business thrive, not the other way around.

Supplier and Vendor Financing

Many companies establish relationships with vendors and suppliers when it comes to purchasing goods and services for their business’ operation. If your suppliers decide to extend credit to you and assess that you’ve made the repayments on time, you could enhance your credit score and your business’ financial position.

Private Investors, Family, and Friends

At one point or another, most entrepreneurs have sought financial help from relatives, friends or private investors. Choosing this option is recommended especially if the business bad credit loans you have been offered have high-interest rates. In comparison to a bank that is interested in your credit score, your family and friends will lend you money based on your character and reliability.

If anything, you could also try to convince your acquaintances to invest in your business, which is another decent strategy if you have bad credit.


The only disadvantage to borrowing money from relatives and friends is that your payment record won’t be reported on your credit score.

What Should You Do to Recover Your Credit?

If time doesn’t put pressure on you to look for bad credit business loans, you can aim at rebuilding your credit. For starters, it’s fundamental to comprehend the way in which your business’ credit works. Your credit score monitors each late payment you made, and each loan you have taken out. Apart from that, in the position of an entrepreneur, you are the credit representative of your firm.

On that note, your personal credit score is also an important consideration for lenders and banks alike. The first thing you should do is order a free credit report and make sure that it doesn’t contain any errors. If your time is limited, you could ask for the guidance of a professional credit repair company. If not, you can attempt to do it yourself, but it can be a lengthy process.

Although the road to rebuilding your credit is long, it isn’t impossible. The key is to stay committed to your goal and start with small, basic steps such as striving to make timely payments each month.


It’s logical to take into account all these options and the potential side effects associated with bad credit loans for business. The reasons behind your bad credit are, without a doubt, understandable, as each company faces numerous financial challenges.

Now you are aware of the different types of bad credit business loans, the rest is up to you. Whether you choose to get bad credit business loans or not, your focus should be building your credit, which would open up numerous opportunities for your firm.

Business Loans

Business Loans: How to Get One without Collateral

Business loans enable entrepreneurs to cope with their financial obligations. This makes them indispensable. Notwithstanding, in many circumstances, lenders might require business owners to place a property as collateral. Regrettably, not everyone is in the position to do so.

The good news is that entrepreneurs could still apply for a business loan without the need to place their assets as security. However, you’ll have to meet some conditions. In this article, we plan on answering the following question: how to get business loans without collateral? Keep on reading to find out!

Check Cash Flow Projections

Unless you have a robust record of revenue generation and an excellent credit score, you are prone to be charged a rather high-interest rate on your business loan. So, entrepreneurs should note that the annual rate on your loan could vary from 10 percent to thrice as much, depending on your credit worthiness and the type of loan.

That being said, before you take on a loan and sign the papers for it, you should assess your company’s cash flow projections.


This way, you can be sure that your business will generate enough funds so that you can make repayments. It’s worth noting that if you fail to pay back the loan, this will negatively impact your credit score, making it more challenging to obtain financing.

Don’t Overlook Your Credit

As you might expect, your credit score plays a primary role in the loan approval process. To be honest, it is the element that will either weigh the balance in your favour or the other way around. Cleaning up your credit might be a good idea before applying for the loan, especially if you’re asking how to get business loans without collateral.

The safest and quickest way to increase your credit score is by reducing your credit utilisation ratio, as that makes a significant percentage of the score.

The ratio illustrates the amount of debt that your business carries in connection to your available credit. To be more precise, if your total debt surpasses 25 percent of your current available credit, it will negatively affect your score. It would be best if you could pay down as much debt as possible to enhance your ratio and maximise your chances of getting good conditions on your loan.


Of course, it’s also recommended to be mindful of potential reporting errors that might be present on your report. You could attempt to do that yourself or choose the assistance of a professional company. Opening new accounts could also harm your score, so make sure you postpone that, as well.

Construct a Solid Business Plan

Also on the topic of getting business loans without collateral, it’s important to note that you should convince the lender that your company is worth it. Assembling a compelling business plan is just as significant as having clean credit. This is the aspect that will either convince the lender of your business’ worthiness or not.

Your business plan should outline the objectives of your company, the way in which you plan on generating more revenue, the strategies you plan to embrace, cash flow projections, comprehensive financial statements and, of course, the primary purpose of the loan.

While there might be some lenders that don’t require such a business plan, proving that you have a strong record of revenue generation for at least one year is recommended. In plain English, you have to demonstrate that your company is a good risk.

Research Lenders

If you want to know how to get business loans without collateral, you must do your research. Fortunately, Aussies have plenty of options to choose from.


Nevertheless, you should analyse each alternative closely to ensure that you’re making the right decision for your firm’s success. Evidently, lenders have distinct requirements for qualifications, and you should have a look at those as well, to determine which one meets your needs best.

In the end, any business, irrespective of its size and stage, should have access to unsecured financing via alternative lending sources. One reliable source would be

Finding a legit lender can be a challenge, particularly when the future of your company is at stake. If you want, you can address your concerns to one of the representatives of the company. He/she will give you some advice and tell you which path to take.

Final Remarks

On a final note, make sure you prepare for the application process like a pro. The better prepared you are, the higher the chances to obtain great terms for your business. We hope that our post on how to get business loans without collateral has helped you. As usual, if you have any comments on the topic, please leave them in the comment section below. Until next time!

Bad Credit Loans Business Loans Debt Consolidation Debt Management

Should I Get Cash Now With Bad Credit?

Over the years of advising young entrepreneurs in debt, I realised that there is one thing that is stopping them from achieving their financial goals – debt mismanagement. A lot of people think that for you to build your business you need to get more debts, despite having bad credit. Others also believe that getting into debt puts their business at risk of going bankrupt. So, how would you know if it is wise to get cash now with bad credit or not?

Here is a fact. Debt is simply a tool to build your business or to ruin it. More debts won’t make you bankrupt. Not knowing how to handle your debts would.

The scary truth of having bad credit is that it reveals your inability to handle your financial obligations. If you are having problems with debt management, more debts will only amplify your problem. But, does it mean that we shouldn’t get a loan now with bad credit? The answer is a very loud–NO. Getting a cash loan can be your only way out – but you have to learn first on how to manage your debt wisely.

Basics of debt management

Depending on where you are currently in debt, here are some tips to leverage cash with a bad credit loan.

Acknowledge your debt problem

It is impossible to create a solution for a nonexistent problem. If you don’t see a bad credit score as an issue, then you may not be so adept in finding ways to address it.

Trace the causes of your bad credit score

Request for a copy of your credit score to check which of your existing debts were left unpaid, delinquent and if there are debts which do not belong to you.

Create a budget

Before you decide on the loan amount, calculate the actual amount of money you need not only to settle your outstanding debts but to meet your existing needs as well. If you will use all of your money to pay your bills without allotting something for a new source of income-how can you pay the loan back? Downsizing and making other lifestyle changes may not be enough. It is also important to increase your cash flow either through creating a passive income or investing in a business.

How will the cash loan impact your current financial state? Do you have a stable stream of income or is it at high risk as well? Understanding the potential risks facing your wallet on a short and long-term basis is important in determining the amount of loan you need to improve your finances. Once you’ve mapped out the threats to your financial stability, that’s the time you can create a concrete debt management plan.

Create self-satisfying goals

Money is not a very attractive goal. But, it is surely a powerful and persuasive tool to reach your goals in life. If you will only work to pay down debts, you may not be too eager to invest and improve your way to get there. However, if you get cash now with bad credit not only to meet your needs but to reward yourself with a financially stable life, you’ll surely smile on your way to financial freedom.

Learn more about cash now with bad credit by keeping in touch with the friendly staff at Australian Lending Centre.

Business Loans

Plan Your Business Loan With A Business Loan Calculator

Are you looking to take out a business loan? Do you want to have a ballpark of our debt service coverage? If so, using a business loan calculator can you help plan for the future of your business.

Business loans can be used to expand your trade to a new location, upgrade your facilities, or invest in other assets to increase the overall returns of your business. That’s why it is important to know the benefits and risks of taking out your loans. Would it be good for your business or are the risks not worth it?

Business loan calculator can help you if you want answers to the following questions:

  1. Which of my loan options is more suitable for my financial needs?
  2. How much will I pay for my business loan? It is important to understand the financial commitment of borrowing money before you sign the loan contract. Otherwise, you may be taking out an amount you can afford to pay for.
  3. What are my options? A loan calculator can help you compare your business loan options. If you can’t afford the payment terms, then you can think of other ways to make ends meet.
  4. Is my loan decision correct? It can educate you about the basics of a business loan, from monthly repayments to the total interest payable.

Australian Lending Centre has 4 types of loan calculators:

  • Loan comparison calculator: You can use the loan comparison calculator to compute the repayments you may have to make between two different types of loans. You can see how much you will be able to save if you choose one over the other.
  • Loan repayment calculator: How much will you repay every month?
  • Budget planner calculator: It helps you work on your budget.
  • Extra repayment calculator: It can show you how much you can save by making extra payments to your loans.

Second, while the calculation may not be accurate having a ballpark of your future financial obligations can help you plan your repayment and assess your capacity to do so.

For example, the budget calculator can help you come up with a workable budget to save more money, pay off more debts and invest more on assets to increase your returns on investments.

Businesses, even with the same size may not get the same amount of loan. One of the reasons for the discrepancy of the amount of loan is credit score. Lenders are not so excited to work with people who show signs of financial struggle because of the risk of not being paid back.

Third, it can help you decide if you need such lending product to build your business. If the interest rates and the lending structure do not match your capacity to pay; and other terms would be putting burden on your business, than liberate it, you can move on to another option.

Australian Lending Centre offers quick and easy-approval business loans to help you fund your business. Use our business loan calculators to help you make then right decision.

Call us and we will do our best to assist you!

Business Loans

How To Use Your Business Loans Wisely

Borrowing money is not bad if you use it wisely to earn more. The keyword is “leverage”. It is using the borrowed money to buy an asset or increase your capital. But, leveraging is not for the faint-hearted. You have to make it work not only magnify the gains but to cover the losses as well. Learn how to use your business loans wisely in this article.

Business loans for people with bad credit could mean high-interest rates because of the risks that lenders take. But, taking out business loans can help you position yourself and your business in the best possible light to generate higher ROI.

1. Make a solid business plan.

Lenders are more likely to grant your loan application if you have a good business plan. Aside from that, a business can’t prosper without it.

In order to use your business loans wisely, it is important to have a solid business plan in place first. Almost all entrepreneurs are optimistic and enthusiastic about building their company. But a lot of them plunge into the competitive world of business without a concrete plan. That’s why operating the business becomes hard and time-consuming because of the absence of a solid plan in place to grow the business.

Here are some risks of not having a business plan:

  • Not anticipating your startup cost can totally drain your capital before you open your business
  • Quality of products or services may be compromised
  • You may go bankrupt for lack of manpower and funds for operational expenses because you have drained up your capital too early

2. Prepare your business and financial statements.

Show projected and current revenues. Lenders approve a business that has a great chance of recovering from losses. It can also serve as your basis when making an action plan in order to meet your business goals.

While you cannot totally predict annual revenues, creating high-quality revenue projections and budgets can help you maximize the odds of being in the right ballpark compared with the actual results.

Here are some factors to consider in making projections and budgets:

  • Total number of potential customers
  • Productivity variables of your team
  • Sales channel productivity variables
  • Buyer behaviour variables

3. Drum up your business by getting out there and connecting with your target market.

Leverage borrowed money by investing in the following:

  • Right people: Put together a team of reliable individuals, with the same passion as yours to help you run your business. Remember that the people you hire can have an enormous impact on your business. You can also leverage your customers by asking for reviews, referrals and by simply doing excellent service so they will spread the word.
  • Topnotch equipment: You don’t want to spend your revenues on repair, do you?
  • Marketing strategy: Use modern technology, social media and other digital marketing strategies to boost your marketing efforts.

4. Deal with alternative lenders like Australian Lending Centre who specialise in bad credit business loans.

You can benefit from the easy and quick business loans application process despite your bad credit score. Enjoy the best interest rates, favourable payment terms and stress-free application process.

Call us now!

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Choosing the Right Start Up Business For You

The majority of people eagerly dream of the day they will finally open their own business. Regardless of the domain a person chooses for his/her business, there’s a question that applies to every company that shouldn’t be overlooked – what will differentiate my business from the competition?

Discovering the right business niche that fits your skills and experience might be difficult, but that doesn’t necessarily mean you have to reinvent the wheel. The fact is that, if you wish to be successful, you need to take the concept that already exists, and simply apply your own set of changes that will single you out from the abundance of businesses. If you accomplish this, your success is 100 percent guaranteed. Here are some basic tips that will come in handy when choosing the right start-up business.

Starting Your Own Business

Do your research

It is needless to say that the very first step you need to take before designing your own business is doing some in-depth research, especially if you wish to create a niche business. In this case, you should offer something that doesn’t already exist. Don’t overlook this aspect. Take your time and comprehend the place in which your business is centred in the marketplace. When doing your research, you shouldn’t focus only on your local competition, but also on the international one. And if there is any, how is it successful? Would the same principle apply in Australia as well?

Consider customer trends

Customer trends are continually changing, and the good news is that you can use that to your advantage. For instance, recently, given the increase of cooking shows, customers convey this particular domain differently. Consequently, regular consumers have become amateur food critics, and also, a myriad of dining restaurants and cafes have been opened. Given the growing popularity of this trend, a lot of people have taken advantage of it. Thus, pay attention to the audience you want to target and find the gap in the market that you wish your business to fill.

Understand your customer

Regardless of the business you want to launch, understanding the client is crucial. Thus, you ought to concentrate on comprehending customer behaviour and never underestimate the importance of the feedback they offer you. Every business owner ought to have a flexible approach. Things change in time, so will your business. Every customer review or feedback should be taken into consideration, as it will aid you to build a stronger link with your targeted audience, which should be one of your main concerns.

When starting your own business, there is a myriad of aspects you should take into account, besides the ones mentioned above. It will all come in the right place, the moment you find the right business, and provide a unique product or service, in your own way. This will ensure your success.

Next Step

Once you have completed the steps above, the next is to find financing for your business. This can be difficult depending on your current financial situation. If you are looking for a Start Up Business Loan, contact the friendly team at Australian Lending Centre today!

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How to Resign Without Burning Bridges

With the holiday season just around the corner, a lot of people might find themselves asking the following question – am I happy with the way my life is at the moment? Does my job fulfil my expectations and does it truly satisfy me? You alone know the answer to this question.

So, if you think that it’s time to move on to the next step in your life, resign and start fresh with a new, more fulfilling job. It is best that you hand in your resignation without burning bridges, if you know what I mean. Thus, here are a couple of tips you should take into account.

Put your resignation in writing

As eager as you might be to tell your boss in the face that you’re leaving the job, you will be required to put your resignation in writing as well. Thus, it’s a positive idea to write it in advance, as you’ll certainly need it. Keep it short and avoid negative phrases or bragging about your plans. It is best to leave things in order and in good condition, remember that.

Discuss your notice period

After you resign, the majority of workplaces will ask you to keep working for at least two more weeks. This amount of time normally offers your employer enough time to find another person to replace you. Of course, you can discuss whatever suits you best in this condition, and settle a date that is beneficial to both your boss and yourself. You need to take into consideration what your contract states concerning this aspect as well.

Complete remaining projects

Even after you resign, it’s important to continue working, not get lazy and just finish your remaining projects. You might be tempted to be unenthusiastic about completing projects and slightly lazy as soon as you hand in your resignation, but remember, the way in which you act in the final weeks at your job will only mirror your character. And, you do want to leave a positive impression behind, don’t you?

Leave things in order for the next person

Make sure you leave everything in order for the next person coming in your place. Think about it, when you rent a new apartment, would you like to come to a messy place or a tidy setting? The same principle applies here. Even if you resign, you need to consider building a positive professional reputation and don’t overlook leaving all the necessary information concerning important accounts or projects.

Business Loans

Applying for Business Loans in Australia

Whether you own a start up business, a small business or a large business, there will come a time when you will need some financial assistance for one reason or another. Most business owners go to major banks and other local banks to apply for business loans but it could be a long journey from application to approval.

Since it is a business applying for the loan, the application process is a little more complicated than if it were an individual applying for a personal loan or a debt consolidation loan. You need to prepare all the required documents to complete the application and on top of that, you will have to submit additional information about your business during the processing stage. So if you are a business owner thinking about applying for a business loan, here are some of the things you will need to prepare before you do so.

Applying for Business Loans

Before you even go to a bank or an alternative lender, make sure you actually need the financial assistance. You and your business need to be in the best position to apply for the business loan. In order to do that, extensive research needs to be conducted, especially if you own a business that’s niche. You need to map out your business plan and prepare all your documents in proper detail to motivate your lender to trust you and lend you the business loan.

If you’re thinking about applying for business loans, you must know how much you want to borrow. If you still don’t, you need to figure out the exact amount that you need. You also need to figure out how you will be repaying that loan. How will you keep up the repayments? How long do you want to stretch out the repayment plan? Should you choose a fixed interest rate or a variable rate?

Whatever you decide, it needs to be cost efficient and doable. There’s no point going into debt if you don’t have the means and capacity to repay it. Some loan terms can be flexible while others aren’t at all. So it’s important to shop around and compare your lenders according to what they offer. Some loans may be approved right away but you will have to pay back a portion of the entire loan plus interest at regular intervals.

And before you sign any agreements regarding the business loan, you will need to provide some form of security as collateral for the loan. You may be able to secure your loan with a residential, a commercial or even a rural property, or you can secure it with your business assets.

Make sure you have documentation about your income, your net profit, the expenditures and future projections: these are the typically required documentation you will need to provide. It’s always best to be prepared with everything than to come short when you start the application process. There are also many types of business loans in the market.

It all depends on how you want to use your business loan. Some business owners only need financing to expand their existing business; some need it to start up their business; some need it to help with their working capital; some need it to buy equipment or to pay wages and so on.

So before you apply for business loans, the best ways to prepare for it is to find out how much you actually need, work out how you can repay it, and also speak to a qualified consultant to ask for advice because they will be able to tell you what you need to do.

The consultants at Australian Lending Centre have qualified experience in lending to businesses of different sizes. If you need more information about business loans or if you need any professional advice, click on the Apply Now button and one of our friendly team members will get back to you shortly. We help business owners across Australia with their financing, whether your business is in Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra or any regional area. Contact us today!

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What’s the deal with a bad credit loan? Bad credit loans aren’t so bad

A bad credit loan sounds like the type of thing you see written in bright font in a pop-up ad. As someone who needs a bit of help with their debt, you probably want to click on them. But loans for people with poor credit sound too good to be true, don’t they? Well they are definitely real. Having bad credit doesn’t disqualify you from ever obtaining finance. There are a whole heap of different loan types available to those of us who have poor credit. So what’s the deal with a bad credit loan?

The bad credit loan

The term ‘bad credit loan’ refers to the loans that are made for people with poor credit ratings. The kind of people who have tried to get finance through a major lender, like a bank, but have been rejected. The repayments on bad credit loans are often higher. Whatever type of loan you need, having bad credit won’t hold you back.

Personal loans are one you will have no trouble getting as someone with a bad credit rating. It’s not important what you need finance for, as long as you meet the requirements. So if you require help with some bills or large-ish payments that need covering sooner rather than later, go for a personal loan. It might even be beneficial to use a bad credit personal loan to pay off another debt that has a higher interest rate.

There are options for businesses as well. Even if your company has experienced a few cash flow hiccups, you’ll find a provider for credit that looks past your history. With a provider that understands what your business goals are, you’ll be getting finance for future projects before you know it.

Have you heard of low doc loans? If you need money urgently, so urgently that there isn’t time to collect the proper documentation the bank will ask you for, go to a private lender. This is another type of loan available to you with your rough credit history. It appeals to the sense of urgency that comes along with money issues.

Even if it’s a small loan that you need, it’s within your grasp. Small amounts are, logically, the easiest to repay. They shouldn’t be difficult to obtain, but banks will do that. Rather than be put through the whole application process only to be rejected for not having a perfect credit rating, go through a company that specialises in bad credit loans.

It doesn’t really matter how you got into debt, or what the offences are on your credit report. There are plenty of solutions to your financial needs and they’re available to you. So what if the bank doesn’t want a bar of you! Unfortunately, the global financial crisis made banks a little tighter with their money and who they’ll give it to.

Australian Lending Centre is different. If you’d like to find out how we can help you, spend thirty seconds filling in our enquiry form and we’ll get back to you shortly.

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International Money Transfers – Non Banks Offering Better Deals

International money transfers are essential type of service that people use to pay, receive and transfer cash in different parts of the world. It is a method usually administered by major banks, financial institutions and identified as one of the safest ways to transfer money. This procedure involves transferring or wiring money from one bank to another.

Everybody recognizes the convenience that it brings and this is the reason why most people prefer this type of service rather than handling the money physically. It is quite impossible if you work abroad and you need to send money to your loved ones back home. As you make international money transfers, you are also paying extra fees. Major banks take advantage of this situation and the electronic wiring fees may cause a little trouble on both the receiver and senders’ end. The actual amount of cash sent may not be the same because of the transfer fees.

Banks that offer international money transfers generally charge 2% – 3% for exchange rates which is quite huge and unbearable for senders. This becomes a problem if you are sending money to a foreign country. Foreign currency has different cash value. The exchange rate may affect the amount of money you are going to transfer and may be lesser than the expected value because of the transfer and conversion rate.

Other financial institutions that carry the same service may charge only 1% which is much lower compared to the fees charged by major banks. This is the reason why some people avoid bank transfers; it is quite understandable that some cannot afford to pay the fees and can cause them to lose a significant amount of money. Some find themselves in debt because of the unbelievably high rates charged by major banks. Sending money overseas becomes expensive which should not be. If your bank is charging fees that are too high, then it’s time to seek for other options. Other financial institutions carry the same service that charge lower fees.

International Money Transfers

Consumers can go online to check the foreign currency exchange rates. It will give them a better view, and to control the timing of money transfer. However, it may not be applicable to small amounts. Transferring money in minimum amount can be free of charge. The minimum is not constant and varies from one service provider to another depending on their scheme or bracket. Before you make a transfer, it is best to make a comparison to get the best deal.

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Being Productive – Why Night Owls do it Best

In the past, night owls were often considered poor employees because their late night lifestyles led to poor productivity in the office during normal office hours. These days, there is another school of thought teaching us that night owls can be the preferred employee for many different reasons. Now that so much work is done on the Internet, and often not from an office at all but at home, employers are beginning to seek out those employees who can be productive on another schedule. There are also several other reasons why night owls are more productive.

Night Owls Are More Productive

Having a burst of energy late at night is an asset for many people. People who stay up later and prefer to do the bulk of their work at the end of their day can utilize that unique trait. While others in business have the bulk of their work done just after waking up, night owls are more productive at the end of their day. Having a workforce with a good balance of high productivity in the morning and then later in the day can be highly beneficial for business owners.

Many successful people are actually night owls. Research shows that highly successful people tend to have unusual sleeping patterns so it is no wonder that people who stay up late are able to focus their energy differently. Barrack Obama has said that he is a night owl and he is not alone.

There is a growing amount of research that is beginning to show that night owls are statistically more intelligent. This will have to be studied more before it can be known as a rule but a study conducted by the London School of Economics and Political Science showed correlations between those who are night owls and those who have higher IQs.

At night there tends to be less distractions and this, or possibly a genetic disposition allows night owls to have better concentration for longer hours. Night owls can be more productive for longer periods of time.

People who have their productive burst later in the day are still able to adjust their sleep schedule and remain productive. Having a person who is considered a night owl on a daytime schedule can still benefit a work environment because that burst of productivity late in the day can be utilized to clear up loose ends at the end of the day.

As the 9 to 5 work day is slowly being phased out of the common work environment, employers should take a new look at those employees that have been categorized as night owls. Being productive outside of normal business hours can put you and your business at an advantage.

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Debt Help In The Farming Industry

Farmers often go into debt to help keep their farms running. Like many other businesses, the farming industry depends on the availability of funds to borrow to get them through tough times and also help them grow when times are good. Just like everyone else, farmers can fall on hard times and have trouble paying their debt. In this case they will have to seek debt help in some form.

Understanding debt obligations and what debt can do for the farming industry is crucial to its business outlook in the medium and long term. An important point to know is how debt and equity differ from each other. Debt has lots of demands that come with it while investor equity is less likely to cause a business financial strain.

When farmers do decide to take on debt it should be used to increase productivity. If the debt payments cannot be made out of profit from the debt then the payments will have to come from other profits. Since profits from farming vary significantly it can make it hard to predict when the payments for debt will come directly. The debt might be investing into something that takes a season or even years to create a return.

It is important to make sure that there will be cash flow to make debt repayments. If a farm was to take on too much debt too early and the cash flow gets tight then it might make it hard to make debt repayments and it could actually ruin the business.

Farmers also need to factor in that the prices for the goods they need fluctuate quite a bit as well. A sharp price increase in something vital for a farm can cause cash flow problems that can put a farmer’s finances in the red.

Debt Help In The Farming Industry

Once anyone is behind on payments it can be hard to get debt help. Not only farmers but any business can struggle to get an outside investor to step in and save their business when their books are out of order. They might have to start selling assets to get their books in order before they can get debt help. A farm is run basically like any other business and the farming industry uses loans to help grow and expand. Knowing how to use debt help responsibly is as important as any other factor in the farming industry.

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Tackling Bad Credit and Common Financial Problems in Small Business

There are lots of things that can lead to bad credit for small businesses but some things are more likely than most to cause problems for SMEs. All businesses are susceptible to cash flow problems and the trouble can be hiding in a number of places.

Preventing Bad Credit in Small Business

It might sound simple but one of the biggest issues might be payment. Have a look at those customers or clients that owe you money and focus on getting those debts collected. On the other side of the coin, have a look at how you are paying your suppliers back and check that you are maximising your window to pay them. In some cases you might be able to get an extension with no extra cost. Check your stock to make sure that you are not overloaded on merchandise. Turning over stock should be any business’ goal no matter what their size. Managing your business’ cash flow poorly might be one of the biggest causes of bad credit.

Rising costs affect everyone but it can be especially devastating to small businesses. The most obvious solution to rising costs is to shop around for better prices. Have a look at all of your expenses and talk to your suppliers about getting discounts for paying early or rebates for buying in bulk. Do not hesitate to call up your bank and ask for a review on your loans before bad credit builds up. You might be able to negotiate a better rate on your debt since interest rates have been falling lately.

Changes in taxation laws and business regulation can have dramatic impact on your business. Staying up to date through newsletters from your local business networks can keep you on top of the latest changes. The fluctuating Australian dollar can have certain effects on your profits if you export or import a product or service. Determining how a rising or falling Australian dollar would change your bottom line can give you a different perspective for the future. Interest rates have been falling lately but that will not continue forever. If you have bad credit then now might be a great time to negotiate your debt with your lenders or possibly reach out to a lender for a bad credit loan. When interest rates begin to rise you will thank yourself for planning ahead and making good financial management decisions.

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Small Business Loans for SMEs – Don’t make these mistakes with banks

Having a relationship with a bank is almost as important as any other business relationship in the life of a small business. To ensure that your relationship with your bank stays in a good place it is best to avoid the most common mistakes when dealing with banks and getting small business loans.

Small Business Loans

Sometimes SMEs focused too much on the price of loans in the form of interest instead of the conditions and covenants which can end up causing the biggest problems. Always make sure to leave yourself some headroom or spare capacity when dealing with small business loans from a bank or another lender. Do not wait too long to deal with potential problems. Let your lender know as soon as you can if you are going to be running into trouble so that they can work with you to find a solution.

Do not fail to realize that your bank or lending partner can be the most important relationship you have. It might even be more important than your biggest client or most valued employee. On the other side you should never overestimate your relationship with your lender since they probably do not look at your relationship in the same way. Make sure to read the fine print when getting small business loans because the devil is in the details. If you do not understand the fine print then request that it be made available in simpler terms so that there is no confusion.

Never overestimate your goals with your lender since they will be expecting you to meet those goals and anything short of those goals will be perceived as weakness or default. Shop around for other banks and lenders because no one should have all of their eggs in one basket. Reach out to another type of lender besides a bank and see what they have to offer. Big banks do not always have the best lending solutions for small business loans. Looking around for other small business loan options will give you alternatives so that you do not make the most basic mistakes. Having other types of lenders will give you a safety net in times when a bank will not be able to provide the funds you need. Banking relationships can be very important to SMEs so the more relationships you have the better chance you will have for success.

Business Loans Low Doc Loans

Banks Shying From Commercial Lending

Throughout Australia, commercial lending from traditional financial institutions continues to shrink, despite a strong economy. According to Industry Super Australia, commercial lending has plummeted, over the past two and a half decades. Instead of being focused on capital formation and long-term economic growth, banks seem to be shifting their attention toward home purchases and refinance deals.

Navigating the Commercial Lending Market

Not surprisingly, this has created widespread frustration throughout commercial loan applicants, and businesses are wondering what they can do to get the capital they desperately need for expansion and growth. There are three C’s that the traditional commercial lenders look at Character, Collateral, and Capacity.

Commercial Lending Checking Character

In order to navigate the shrinking commercial lending market, companies must be aware of what traditional lenders are looking for in new business loan applications.

First, banks will assess a business’s character – that is, the company’s credit history. Lenders want to be sure that a business has a long-standing history of repaying debts, profitable operation, as well as healthy past relationships with other lenders and vendors. If a business has been plagued with bad credit, a traditional business loan may not be quickly available through a bank.

Commercial Lenders Evaluate Collateral

Lenders will also review a company’s ability to provide collateral for a new business loan. Business assets are used to back a loan, either in full or in part, in order to greatly reduce the risk for the bank. Pledging assets for a business loan may be a viable option for some, but it may create a situation where borrowing more capital at a later time could be a difficult task. For those companies without collateral to offer up to a bank, traditional lending may not be an option.

Ability to Payback – Capacity

The last aspect of a business loan application that banks will review is the company’s capacity, or its ability to pay back debt obligations from company earnings. Numerous financial documents are required to prove the financial stability of any business, and this creates a complicated scenario for companies that require an influx of capital in a short period of time. If these documents are not in order at the time of application, banks are much less likely to start a business relationship with the applying company.

Non-Bank Lenders to the Rescue

As the cost of capital formation continues to increase, it is important for businesses to be aware of and understand options both with the bank and with alternative lenders. For companies with bad credit, little to no collateral, or those who find it difficult to produce the financial documentation some banks require, seeking capital from a source other than a traditional bank may be the only option.

Fortunately, low doc loans exist that simplify the application process for business owners, and some alternative lenders can work with companies with bad credit or otherwise insufficient collateral to offer. In order to make the best decision for you business, it is important to understand the three C’s in lending as well as the full array of options available to your company.

Don’t meet the three C’s? Check out Australian Lending Centre’s business loans!

Business Loans Tax Debt Loans & Relief

Tax strategies for investment property and business expenses

Tax strategies for investment property and business expenses

The tax season is undoubtedly a stressful time for most of us. That is why we always hear advices from the experts to start planning ahead of the taxation deadlines to avoid any hassle. Early preparations can also help assure that we take possible advantages of all possible tax deductions that we can avail of.

Are you aware that there are possible tax deductions from investments in properties? Of course, it is a common knowledge that those deductions abound for business owners as well. Here are simple tips that can be of guidance for all us prior to the tax season for the next year and for the coming years to come.