An individual spends his entire life toiling hard to have a roof on his head, his own home. Your home has an imprint of your personality. Even if you had one earlier and now that you have found more apt home, then you should never postpone the deal. There you will be spending rest of your life with your loved ones. You may be suffering from dearth of funds and to manage finances must have put some old property at sale. But, you are not sure about how long will it take to finalise the deal. In all such hassle, you are afraid that you might miss the wonderful house that you have just discovered. In such hard times, bridging loans come as a life savior.

Bridging loans are configured to build the gap between the purchase of new property and sale proceedings of the existing one. It provides you financial aid at the most critical point, when you most need it. Bridging loans are short term in nature and comprise of higher rate of interest. Yet, proper search is certainly going to cater you with the required deal.

Being secured in nature, bridging loans put all the more responsibility on the borrower regarding the repayment of the loan amount. Any slackness in the repayment of the loan amount can become a reason for seize of your collateral. Therefore, extra cautiousness is necessary.

In order to acquire the new property, bridging loans can offer you with £25000 to £500000, as per your requirement. For bridging loans, your old property that you have put on sale serves up as guarantee in lieu of which the loan amount will be issued to you. These are interest only loans, which imply you are supposed to pay the interest only till the proceedings of your old property takes place. After that only you have to repay the principal amount.

With business growth on the rise, small businesses might find it difficult to stay competitive in this growing market. It is reported that only 44 percent of all new businesses will survive through their fourth year. With costs rising, some find it hard to keep up with the larger firms. Cash flow has become the most critical component in the survival of any small business. Access to the cash they need is becoming more difficult for these struggling business owners. SBA and commercial lines of credit are becoming more and more difficult to obtain due to tighter credit policies and collateral requirements.

Why is this important? Small businesses employ over half of all private sector employees. They also make up 60% to 80% of all new jobs within the year. Employment rates are dramatically affected if we cannot sustain the growth and livelihood of these small businesses.

Financial institutions are rallying to give aid. They have developed a financing program that can boost the cash flow of these small businesses we rely on. With an unsecured small business loan, or otherwise know as “bad credit business loan”, those who would not qualify for a loan can get the financial assistance they need.

This method is called merchant cash advance. Money is advanced to the small business based good faith and future credit card sales. The lender will review the historical merchant summaries and approve an advance of 1.0 to 2.0 times the monthly credit card sales. They can usually loan up to $250,000. Unlike bank loans, there are no monthly payments. A percentage from all future credit card sales will go towards the balance of the cash advance. This percentage pull will pursue until the loan is paid in full. With this cash advance, businesses won’t find themselves strapped for loan payments during those slow sales times.

Merchant cash advance is a perfect method for those who worry about monthly cash flow problems because there are no monthly loan payments, no up front fee, and no closing costs. Also, this cash advance won’t show up on as a debit loan or credit card that could hinder future loans and no collateral is needed.

Unlike other programs financial institutions offer, the merchant cash advance is fairly easy to obtain. MerchantFirst Capital Solutions is one such financial institution that offers this cash advance. They guarantee the lowest rates and 48 hour approval. It is as easy as visiting their website at www.merchantfirstcapitalsolutions.com and submitting a name and business situation. Their site is easy to navigate and will provide all information needed, even for those who may be hesitant from previous rejections. A loan expert is available to discuss all business options. With knowledge and experience, they will only select the financing option that makes sense to the borrower.

MerchantFirst Capital Solutions is one financial institution that is in the business of boosting small businesses. They are willing to invest in good faith to keep small businesses growing with unsecured working capital. The days of business loan long waits, high fees, and little chances of approval are now over...

Unsecured loans have the fastest approval rate on the loan industry. There are even unsecured loans that can be approved within less than 24 Hs. Some loans require credit checks but others don’t. And even those who do, are processed really fast as opposed to all the bureaucratic and time-consuming paperwork that is required for secured loans’ approval.

Credit Check and No Credit Check Unsecured Loans

There are both unsecured loans with credit verifications and those that require no credit checks at all. The lack of collateral implies that the risk involved for the lender in the financial transaction is high and thus, a low credit score can be an obstacle for approval. That’s the reason why credit verifications are important on most unsecured loans. However, the process is very quick and simple which stands out against the verification process of secured loans that takes some time because the property’s documentation has to be checked also.

24 Hs. Loans are unsecured loans that require no credit check at all and are processed within a day. The only requirements for approval are proof of a steady job or other income and a bank account where the money is deposited after loan approval. However, these are short term loans that have to be repaid within a month or two at most.

Regular unsecured personal loans have also short approval processes. Though they are not as fast as 24 Hs. loans, they are still processed in just a couple of days so you won’t need to wait as much as with secured loans. The longer approval process is due to the higher loan amounts that regular unsecured loans feature as opposed to 24 Hs. loans which only offer small loan amounts that never exceed the couple of thousands.

Requirements For Approval

Besides credit verifications which may or may not be needed depending on the type of loan you apply to, there are also income requirements that you’ll need to meet. Basically, the lender will want to know that you can meet your obligations without having to make sacrifices in order to do so. As unexpected expenses always take place, the loan’s monthly payments must not exceed your ability to repay the loan and face your regular expenses. Moreover, there must be room for other non-budgeted expenses too, just in case.

Thus, most lenders require that the loan’s installments don’t exceed 40% of your available income at the time of applying for the loan. This is especially true for unsecured loans since the risk of default is higher due to the harsher loan terms. Besides, since the lender doesn’t have the additional guarantee that collateral provides, it must be extra careful to avoid loosing his investment.

It is important to know how these variables interact in order to make an informed decision when it comes to selecting a personal loan with a fixed or variable rate. Fixed rates remain the same over the whole life of the loan but tend to be higher than variable rates when both compared at any given time. Variable rates on the other side change according to market variations and though the rates are initially lower than fixed rate loans if both loans are taken at the same time, these market variations can increase the rate to higher rates and turn the loan significantly more onerous.

Short Term, Long Term

Depending on the length of the loan a fixed rate or a variable rate will be advisable. Short term loans are not as risky as long term loans if you decide to go for a variable interest rate. However, short term loans are not so easy to afford even though the variable rate implies less interests. Thus, you will need to ponder these two variables to see if you can take advantage of a short term loan with a variable interest rate.

Long term loans are more risky because market variations tend to occur sooner or later and though the rates may decrease, they may also increase significantly. Therefore, on long term loans, a fixed interest rate is advisable as it will protect you from market variations and inflation too.

Inflation Expectations

The inflation expectations are another important issue. Inflation is an increase of the overall level of prices due to a depreciation of the value of currency. Since the monetary note is worth less, more money is needed to purchase goods which implies price raises. Unless salaries increase too, the purchase power of salary decreases worsening people’s ability to purchase goods, repay debt, and save.

When it comes to debt, taking fixed rate loans protects you from inflation because the monthly payments remain the same over the whole life of the loan. Whereas, on variable rate loans, the interest rate would rise to compensate for inflation. Thus, if economy experts are predicting high inflation figures over the next years, you need to consider applying for a fixed rate loan rather than a variable rate loan even if the interest rate is higher.

Conclusion

For those who are adventurous and like to save as much money as possible even by taking risks, variable rates are undoubtedly the way to go. They provide lower monthly payments and an overall lower amount of interests over the whole life of the loan.

However, for those who have a more conservative nature and prefer to avoid risks, fixed interest rate personal loans are a wiser choice. These loans can provide the funds needed at a slightly higher cost but also protect customers from market variations and inflation which can be disastrous for those that count only with a fixed income.

The Starting Point

The cornerstone is as usual a mortgage loan, which is what we use for purchasing property. We must start with the equity of a home or any other real estate. This will need to be harnessed for the purchase of land and the further construction of a house. What I am suggesting from these humble lines is that the plans and layout of the building should be in such a way that construction can be resumed upwards and strong enough to support more stories on top.

The Whole Plan

Have a building designed for three or four stories, according to the local regulations and then execute the construction in stages, one story at a time. Each story should have not less than two units, as in the case of a duplex, so as to obtain the best produce out of the rent of each unit. If possible, four units will be a little smaller, of course, but certainly more productive.

The equity contained in your home or the estate you use to back up the mortgage should be enough to build the first story. Once this is complete, you can either rent it or wait until you are ready for the next story. Each story you add to the previous structure will add equity which you are accumulating and conveniently using to build the next stage.

The Design

This will be all of a challenge for the designer, since it will be necessary to continue construction while there are people living in the part already finished. Of course, this has a cost, but the final product will be surprising.

The Loan

Since this situation is uncommon in the private world, you will need to communicate your plans to the lender or broker you will be working with. He will surely be able to work out an interesting plan and moreover, good conditions for the mortgage, since it is a long-run plan. Together you will make a good partnership, no doubt.

The Final Product

The culmination of the task will be something like an apartment building, which is totally yours with a little imagination, a bit of effort, patience and making good use of the equity in your home, which few people even think of and if they did, it is unlikely that they could have the nerve to carry it out.

A Far-Fetched Idea

Yes, it may be, you’re quite right. But isn’t life made up of a good balance between pioneers and users? A good friend of mine always says: In this life, you are one of two things. Either you’re a pioneer or a user. If you are a pioneer, everybody else uses your invention.

So why not do extraordinary things that ordinary people can use? In turn, you will be performing something extraordinary, using only something quite ordinary, namely, cash that you will borrow from a reliable broker.