17
Apr

What You Need To Know About Probate Loans

download (31)Although you will be impressed and relieved to learn that you inherited some money, the reality might be that the inheritance distribution process takes too long. In California, especially, the probate process tends to take a considerably lengthy period of time. If you need money urgently, therefore, one option open to you would be to get probate loans.

How Inheritance Funding Works

Essentially, companies that offer inheritance loans will purchase set dollar amounts from your inheritance, thereby allowing you to get the cash you need immediately. After you receive reimbursement from the estate and the entire probate process is complete, you can start paying off the loan. If you have been listed as an heir to an estate you should check with a reputable probate lawyer to find out whether probate funding services are viable options for you, and if you qualify for a probate loan.

Benefits of Probate Loans

Receiving a cash advance/loan for your inheritance comes with a number of advantages including, but not limited to:

1. Immediate Payment

Where it might take up to 2 years before your inheritance comes through, probate lenders will usually grant your inheritance loan in the shortest time possible. The lender will provide you with a lump sum payment after your loan request has been approved.

2. Un disruptive Process

Probate loans are totally straightforward. Hence, you can be sure that the inheritance funding you receive will neither be prolonged nor disrupted the probate distributions.

3. Secluded Advantage

Other heirs listed in the will in question will not be affected by the probate loan you receive.

4. Zero Risk

Most professional probate funding companies carry a zero risk policy. Therefore, in case your inheritance loan turns out to be greater than the actual amount your inheritance entitles you to, you can be sure that the lender will cover the balance. Therefore, you won’t have to worry about paying back the cash difference.

Spending Options for Probate Loans

So, what will you be able to do with the probate loan you receive?

You are free to use the money as you see fit. Most people who take out these loans are typically relieved on account of the fact that these inheritance advances grant them the financial reprieve they have been waiting for. Further, when a loved one passes on, you might not be prepared to cover the debt accrued by the deceased. Therefore, you can be sure that the assistance you receive through probate loans will enable you to cover such costs as attorney fees, funeral expenses, and much more.

 

12
Apr

Why Borrowers Use Hard Money Loans

download (30)Bad credit record

The easiest way to explain is bad credit record. If a borrower has damaged credit record it is very difficult to get loans through institutional or conventional lenders. Banks hardly look at the debtor and qualify them before looking at the collateral. However, hard money lenders are opposite. They always care about the property and make sure they are in a very strong position and less about the borrowers. Fret financial will make loans to borrowers with bad credit, but it is very rare.

Documentation of income

This is really a very popular reason for borrowing hard loans. Just like bad credit, it is also very difficult to get financing if you unable to prove your income. A borrower may have faced losses from investments several years ago and they are still writing off on recent tax returns. Hard lenders care very little about income and understand that self-employed debtors often have more income than they can show. Hard money financiers want to see solid deals and money in the bank. After having the conformation that the loan payments will be made based on the money the borrower currently has, lenders will do the deal.

Timing

This is one of the very popular reasons people work with hard lenders. Deals can get done very fast. In fact, sometimes they can get done within days. This timing option makes the offers stronger for the buyer. Having quick access to money, buyers get the confidence to go out and make a lot of low offers.

Comfort of doing business

Basically, traditional financing is much difficult to get even if you do qualify. The underwriters are always looking for reasons to refuse loans so they take a long time and collect a lot of papers. Hard money lenders look at the same documents but it is easier to work with them and they don’t try to kill the deal. Customer service is also better because you are dealing with individuals that understand the business.

Less money out of pocket

Hard money financiers generally will loan a much larger part of the purchase and repairs. Traditional lenders will want to see a big amount of down payments and They will rarely finance any of the repairs. If a borrower gets into a deal with a smaller amount of their cash, he able to do more deals and his ROI (Returns on Investment) will be much higher.

12
Apr

Peer Loans: How to Borrow the Money You Need at a Rate You Can Afford

download (27)The gradual growth of peer lending, also known as peer-to-peer or P2P lending, has created a new investment opportunity for investors seeking funds at a lower rate of interest.

P2P lending is the financial lending institute that lends money to individuals or businesses through online services that connect investors and borrowers. With peer lending’s transformed banking system investments are more rewarding with affordable credit. They provide services with a lower cost than other traditional bank lending programs and forward it to the borrowers in the form of lower and decent interest rates.

How to qualify for the loan

Borrowing money through peer lending requires that you fill out an application online. They also need soft inquiries on your credit report, but this will not have any negative impact on your credit score. After getting an approval your interest rate will be chosen, depending on amount of the loan, loan term, credit score, credit usage and history.

How it Benefits the borrowers

Easy Application: Applications to get a loan through peer lending is quite smooth and easy, just get access to a computer, fill out the paperwork and you may get approval within minutes. Next is to wait for your loan to be funded. It doesn’t matter what your credit score is or the risk of the business, it is just the way P2P lending companies operate.

Interest rate: This is the biggest benefit that gets investors drawn to peer-to-peer lending: they offer a lower interest rate, better than banks interest. Based on the term selected for each individual client, the interest rate can go as low as 7% for their best clients. Borrowers that have been approved will be offered different loan return times ranging from one, two, three or five years.

Fast Funding: Funding of a loan is pretty fast, it can take a week to three weeks depending on the amount of the loan. A small loan amount can be funded in less than a week. Amount of funds that can be loaned out has even risen over the time peer lending has started. A substantial amount of loans can now be borrowed to fund your investments ranging from $1000 to $300,000.

How it Benefits the Lenders

Higher interest return: Depending on the loan type and the term you choose for your client, return rate can be as high as 10% to 13% which is certainly very attractive.

Lender chooses: peer-to-peer lending provides the lender the choice of stating his conditions to the borrowers. Lenders can provide the interest rates as a function of the risk associated with the loans, other terms include the credit score, identification verification, etcetera. Lenders have the chance to select the borrowers that match the provided preferences.

Peer-to-peer lending has really proved to be of great benefit to both the lender and the borrower. Also peer lending has gained popularity in some countries over the decade. With the frowned upon conditions of the traditional lending institute, peer loans have been a bail-out fund for so many people.

2
Apr

Online Loans: Now Easier to Procure

download (29)The limitless world of the World Wide Web(WWW) today offers every service imaginable. From buying clothes online to buying cars and property online, the internet hasn’t really left anything out of its ambit, not even loan and insurance services. Yes, it is the 21st century and with the help of internet it is possible for you to obtain a loan sitting in the comfort of your home.

Common knowledge says that the information boom has facilitated convergence of interest rates the world over- or so it appears. While on the surface, the interest rates offered for diverse loans by numerous banks look homogenous; but in reality they are often very disparate! The interest you earn on your deposits with banks or the interest rates applicable on various kinds of loans are different in different banks. Imagine the arduous task of going a bank one at a time before you finalize on from where to borrow credit. It is very likely that you will be rendered confused and unable to grab the best deal.

To overcome these complexities, online portals like Bank Bazaar, Fundera etc have been formed. So what do these online loan marketplaces do? They enable prospective borrowers to shop for loans just like they buy their other things online! They empower you, the borrower, to apply to multiple banks with the click of a button, making the entire process effortless and hassle free.

The loan intermediaries discussed above cater to salaried people and established businesses having a steady income stream and those able to furnish proofs. But what about borrowers who aren’t served by such banks? What about those business startups who have a somewhat faulty credit history and moderate repayment capacity but show a promising future? Or SMEs which lack collateral and are thus unable to convince banks to lend to them?

This is where the Non Banking Finance Companies (NBFCs) come into the picture, making the financial markets more inclusive and tolerant. NBFCs do not hold banking licenses and do not provide checking facilities. Nonetheless, they are indispensable to credit markets as they are instrumental for bridging the credit unavailability void created by traditional lenders. NBFCs are known to assume greater risk and are often more flexible to the needs of their clients.

But approaching every individual non finance company is as strenuous and back-breaking as visiting each bank one by one. This is where online platforms for obtaining a loan step in- making the entire loan obtaining procedure smooth and straightforward. So all you have to do is register your business and financial requirement with the online platforms- choose a list of lenders you want to provide your information to- receive multiple loan offers from chosen lenders & finally grab the best deal.

So why depend on these online loan intermediaries to do your job? The answer is intuitive- they save you a lot of inconvenience and make obtaining funds for your business a struggle-free affair. What’s more, they free up a lot of your valuable time, thus allowing you to focus on building and expanding your business.