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Short Term Loans Business Consolidation Loans Business Loans Self Employed Short Term Business Loans

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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Personal Loans

How Interest Works on Personal Loans

In the past, most people would stay away from personal loans. Nonetheless, this has changed considering that you might get more convenient terms on a personal loan than on a credit card. In some cases, it might even help you enhance your credit score. That’s because personal loans are fixed-rate loans, whilst a credit card is conveyed as a revolving line of credit. Thereupon, from a credit score viewpoint, getting a personal loan might be more convenient. Nevertheless, it goes without saying that personal loans aren’t made equal. Each offer has a specific interest rate and fees attached to it. That’s why it is mandatory for borrowers to comprehend their features before shopping for one. We explain further below how interest works on personal loans.

Types of Personal Loans

When you’re shopping for personal loans, one of your priorities should be to assess the interest rate. Evidently, the interest rate might be convenient or the other way around. This will usually be dictated by a number of factors.

Secured Loans

First and foremost, you may choose between secured and unsecured personal loans. Now, if you wish to purchase a car or a large asset, a secured personal loan might work better for you. That’s because you may add the asset as security for the loan. In the event in which you default on the loan, then, the lender is entitled to repossess the collateral in order to sell it and use the money to recover the unpaid debt.

In this case, you might ask why someone would choose a secured loan over an unsecured loan. For one thing, secured loans are less risky for lenders. This safety net allows lenders to provide a better deal in the form of lower interest rates.

Unsecured Loans

On the flip side, if you are in need of some extra cash for an upcoming holiday, renovation, or debt consolidation, an unsecured personal loan might be a preferable choice. This type of financing doesn’t require collateral – making unsecured loans more flexible than a secured personal loan. The risk to the lender is significant and higher interest rates reflect this.

Types of Interest Rates

There are two types of interest rates – namely variable and fixed.

Variable Interest Rate Personal Loans

Variable-rate personal loans feature a rate that is likely to change during the lifespan of the loan. As a result, the amount of money you must repay on a monthly basis will fluctuate depending on the interest rate. This could be inconvenient for some borrowers, especially those that budget their finances in advance.

In plain English, if your interest rate diminishes, the monthly payment will be reduced. In the meantime, if the interest rate increases, this will increase the monthly payment as well. As a rule of thumb, variable interest rate personal loans tend to be more flexible and advantageous, providing a range of benefits and features.

Fix Interest Rate Personal Loans

Fixed-rate interest loans charge the same amount of money for the duration of the personal loan, so you don’t have to worry about interest rate fluctuations. The disadvantage to this that if the average market interest rate were to drop, there would be no benefit to you.

How Is the Interest Rate Calculated?

The type of loan you pick, as well as the type of interest rate,  will influence the amount of money you end up paying over the course of time. Still, aside from that, we’d like to briefly explain the elements that matter most when the interest rate is calculated.

How Your Credit Score Affects Interest

To start with, your credit score is the factor that matters most in the equation. Still, the exact rate you’re likely to get will depend on the lender. For one thing, how much you borrow and how often are factors that are widely considered by lenders. At the same time, your overall creditworthiness and reliability as a borrower are just as critical.

At the same time, if you decide to place collateral, you’re likely to benefit from a more convenient offer. Of course, the duration of the loan matters just as well. A loan with extensive repayment terms includes a higher risk of default; therefore, the amount of interest rate you’ll end up paying will be higher than in the case of a loan with shorter terms.

In summary

Bear in mind that the way in which lenders make a profit is by charging interest rates. On the other side, consumers want to get the best bang for their buck, and this makes sense – for both sides. A common-sense approach would be to do your part and research. After determining what lenders expect of you, try to enhance your credit rating and consider placing collateral if that can help you to get more beneficial loan terms. Get in touch with us for excellent loan offers for every budget!

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Car Finance Tips

How to Get A Classic Car Loan on a Budget

Collecting classic cars is one of the costliest hobbies around and it is a little trick to get a classical car loan. The price tag on such a baby is sure to cause a panic attack in many people. People found ways of getting a classic car loan despite having a normal budget that in certain circumstances would destroy their dreams of being at the wheel of a vintage beast. If you’re aiming at getting a classic loan but your budget is nothing out of the ordinary, you might find this guide very handy. Let’s take a look at the steps you have to take in order to get classic car loans on a tight budget.

Classic car loan Guidelines 

Consider private lenders 

Credit unions and banks are not a good source of car loans, especially when you juggle with a couple of loans already. And even if they offer you the car loan you require, it will probably have a huge interest rate and it will be secured on your house. Private lenders, on the other hand, have a wide variety of car loans that come with affordable interest rates. What’s more, many of them are willing to tailor repayment plans for their clients.

You can find a private lender pretty easily. Just surf the Internet for a while and you’ll definitely find one. Stay away from lenders who ask for deposits or any other sort of down payment.

Hire a broker for your classic car loan

One that specialises in car financing, to be more precise; if you can’t seem to find a good deal, no matter how hard you try, such a broker can do some research and get back to you with one.

Moreover, a car broker can easily save you some funding, as well as the hassle of doing all the research on your own. Brokers collaborate with a lot of lenders. Sometimes you don’t even have to pay the broker because he works on a commission. In other words, if he gets you the dream-deal, he’ll get a certain sum of money from the lender he hooked you up with. This is how you save money by hiring a car financing broker.

Leasing

Tons of classic car enthusiasts choose to lease vehicles and then purchase them. This works perfectly for those people who can’t afford to buy a classic car with a down payment or can’t find a lender that’s willing to hand them some dough. After leasing, you can purchase that vehicle outright and you’ll know for sure how efficient the car is and whether or not it’s as worth it as you thought it would be initially. This is the best alternative to car loans you have (and the safest, to be completely honest with you).

A HELOC 

A Home Equity Line of Credit could actually provide you with enough funds to purchase the classic car you’ve been dreaming about for so long. Of course, you have to own quite a large, modern house that has a lot of equity in it. As you might know, a HELOC is a loan that’s secured on your house, which serves as collateral. If you fail to repay the loan, the lender can place a lien on it and sell it. The HELOC, therefore, should be your last resort. The Home Equity Line of Credit usually serves other purposes, but it’s totally possible to get a car with the money that comes from it.

Secured or unsecured

You’ll have to determine if you want an unsecured loan or a secured one. Under a secured one, you’ll get more money and lower interest rates. Under unsecured car loans, you’ll get a more limited amount of money and higher interest rates. But then again, an unsecured loan doesn’t pose a threat to your assets. If you fail to repay it, the worst thing the lender can do is to sue you. Keep in mind that he can get the right to place a lien on your assets even in this circumstance.

Extra caution is therefore advised. You certainly don’t want to be living in a Cadillac, as cosy as it might be. Think twice or even thrice about this issue and make a decision you won’t live to regret after a while.

Concluding Remarks 

Classic car loans are a great way of finding the car you want to get but can’t afford to purchase outright. Australian Lending Centre can provide some really valuable advice when it comes to taking advantageous car loans, as well as the financial products themselves. Make an enquiry on the website and you’ll most definitely find a car loan that suits all your needs and comes with an affordable interest rate and a good repayment plan. We hope you’ll get to be at the wheel of that shiny, vintage car you’ve been dreaming about for years on end.

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Financial Planning

How To Create A Retirement Spending Plan

Learn how debtor finance can help you find retirement money and build its sources. A strong retirement spending plan can help you to enjoy the life you have worked so hard to build.

If you want to create a retirement spending plan, make sure that your expenses are lower than your income. But, if you have troubles in making ends meet, how will you do it? Good thing debtor refinance can help.

Retirement is something that you buy, that’s a fact, whether you agree with it or not. It’s a plan on how you plan to spend your retirement income. But how do you intend to spend money that does not exist?

Here are simple yet effective tricks to create a retirement spending plan when you have limited resources:

Add up your income

Everything that adds up to your wealth is considered an asset, including consistent income, but not those earnings that are not definite. For example, while you can expect tips as a waiter on a daily basis, you cannot count on them so instead of writing down the total tips you received in a month, just get the average tips. Here are common sources of income that you can include in the list:

  • average tips
  • alimony payments
  • bonuses
  • investment income
  • wages

Track down your expenses

Okay, you probably heard about budgeting a lot, and maybe you’re already fed up with the tips that budgeting is crucial to retirement savings. But, it’s a hard reality that we can’t do anything about.Include everything you spend for. When you add up monthly expenses make sure to include your average food bills, transportation, clothing, entertainment and utility bills. It is also important to take in your credit card payments, loan repayments and if you have a mortgage and auto loan payments, write them down.

Calculate the average expenses you incur each month

Even those things that you seldom buy, such as:

Household items, minor house repairs and clothes

For example, if you buy clothes every three months, get the average cost of the clothes and allot them in your monthly budget.

Don’t forget the add-ons

If you’re paying for self-employment taxes, business taxes and insurance, put them in the expenses list. You can also collect receipts, get a copy of your credit report and track how you spend your cash and borrowed money each month.

Review your debt and credit card statements

If possible, make it a habit to review your debit card records as well as your checking accounts. A lot of people have been surprised how much their money ‘vanishes’ each month, but they’re more stunned by how they spend it.

‘Pay’ your savings account

You only have two options, consider your savings as a top expense you can’t live without, or a debt that you have to pay for a very high interest. You’ll thank yourself later, especially when you’re too old to work.

Here are some barriers to creating a retirement spending plan:

Retirement is not something that people really look forward to

A lot of people have troubles saving for their retirement income. It’s because many people are not really looking forward to old age – the days and years where they will no longer feel in control of their finances. Who is excited to stay in a retirement home? But, if you change your perspective and consider retirement as a adventure, a new beginning that can give your life a new meaning, then it will be an exciting event that you will work hard for.

With a retirement spending plan here’s never ‘enough’ money to save

You have goals and you really want to put away the money for them. But, you have lots of expenses, despite a stiff budget. If that’s the case, why don’t you set up an automatic savings plan? This way, your money will be automatically withdrawn from your checking account and deposited in your retirement plan, savings account or investment accounts. While you can deposit the retirement savings yourself, automation will ensure that you won’t miss doing so. If possible, put all your bonuses, raises and tips to your savings accounts. Make it a habit to reduce your expenses and set aside money for the future.

You can also revisit your retirement spending plan once and a while to adjust to income changes and other conditions that may require additional expenses such as: illness, job loss and other money-related concerns.

Take advantage of the power of compounding interest

If you want to make your small investments large enough to cover your retirement expenses, it’s time to consider investments with compounding interest.

Any amount of money you put into real estate, bonds, stocks, cash savings, or a mixture of these financial portfolio, will work for you, given enough time. The interest on the money you invested and the accumulated interests will eventually increase the size of your savings account. The longer you invest, the bigger the pool of money for your retirement.

Do you need help in obtaining debtor finance so you can save for retirement? Talk to our trustworthy loan experts at Australian Lending Centre. Enquire now!

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Debt Management

Debt Agreements FAQ

What are the basic facts about the debt agreement that every borrower need to know? A debt agreement is one of the ways for the creditor to recoup some of their losses when the debtor is not able to pay them back in full and when it is difficult to collect on the debtor’s outstanding loan. The creditor and the debtor put new payment terms in writing, to allow the debtors to at least make partial repayments. Read our debt agreements FAQ and learn more about debt agreements.

When do I have to enter into a debt settlement agreement?

It is applicable when you owe a lender an amount of money and you are not able to pay it back in full. You need to document the new terms of the loan whenever you and your creditor agree to settle the debt.

Why do creditors settle for debt agreement?

By entering into an agreement, the creditors no longer have to waste time chasing you down. Instead, both of you reach an agreement on how much you can pay them.

What are the contents of a debt settlement?

The agreement contains the following:

  • How you will make payment
  • A statement that in case you fail to make timely payment, the total amount you owe becomes due.
  • The date by which payment should be made
  • The new debt settlement amount you agree to pay
  • The original amount you owed
  • You can also add other terms such as liability clauses and other things both of you would like to include.

Why do banks frown upon applications from borrowers in debt agreements?

The major banks may not approve a loan from someone who is under a debt agreement because they are very cautious when lending money to someone who has a bad credit history. They don’t want to put the company at risk in approving a loan for a borrower who cannot make timely payments.

Can I refinance a loan when I am still bound by a debt agreement?

Specialist non bank lenders like Australian Lending Centre allow borrowers like you who are still in a debt agreement to refinance your current mortgage so you can pay your agreement in full. If you have been in agreement for a year, but you made updated repayments, you might be able to borrow up to 70-80% of the value of your property. However, it is important to arrange for a pre-qualifying assessment to ensure that you have a realistic calculation of your home equity.

What are the benefits of entering into a debt agreement/settlement?

If you have limited financial resources and your situation does not allow you to pay back your debts in full, you can enter into this agreement. By doing so, you can avoid going bankrupt—which would have a terrible impact on your credit rating. It also helps you overcome difficult financial situations, by giving you some extra money to settle your debts and to pay for your immediate needs.

Other benefits of debt agreements include freezing the interest accruing on your debt, and paying a single monthly repayment instead of dealing with multiple repayments.  If you have debt agreement administrator, he or she handles all the communication with your creditors, not you. That means lesser pressure on your part. Debt Agreements are appropriate for applicants who are at the verge of bankruptcy. It can help you avoid the major consequences like having a bad credit score that could result in countless rejections of credit applications. Bankruptcy must always be the last option. So, one of the effective alternatives a struggling borrower should consider is a debt agreement.

Is there an alternative to debt settlement?

If you don’t want your future creditors to know that you are struggling financially, to the extent that you entered into an agreement to repay your debts, try debt consolidation. It can help you negotiate payment arrangement with your creditors and it is definitely a practical alternative to bankruptcy.

Final thoughts

A debt agreement is a contract driven by the desire of both parties to settle the debts. The lender wants to get back the money while the debtor wants to pay it off.

Take a good look at the content of the debt agreement. It controls and directs the borrower on how to pay back the loan and how much to pay. But, if you don’t want to have a record of debt agreement on your credit file, you can simply take out a second mortgage or a personal loan, or any other affordable loan product to pay off the debts.

What is important is that you would satisfy the full amount of your loan, and at the same time enjoy an affordable and convenient repayment for the new loan.

When you have finally settled your debts, try to practice good financial habits. Pay your debts on time, spend less and try to grow your money either through investments or additional source of income. This way, you wouldn’t have to face the same dilemma of signing debt agreements anymore.