Benefits of Borrowing from Non-Bank Lenders

Ever since the great recession occurred, banks have been a little hesitant to extend loans. As a result, non-bank lenders have risen to fill the void left by traditional lending institutions. Banks introduced more stringent measures like credit scores, which you must meet before qualifying for a loan. Many people who qualified before were now left out.

Today non-bank lenders enjoy a bigger share of the loan market. A lot of consumers have switched to them because of their less strict qualifications when compared to banks. Non-bank lenders like A1 Credit can quickly help you with your financial emergency within a very short time.

Below are the top benefits of borrowing from non-bank lenders:

Easier to Qualify for Loans

Banks have to weigh on so many things before they advance loans to their customers. Banks often perceive people with a low or average credit score as being risky borrowers. On top of that, if your business has not been existent for long or you need a lower loan amount, it becomes quite difficult to secure a loan from banks. On the other hand, qualifying for a loan in a non-bank lending institution is much easier. Decisions to award loans are based on merit and need instead of specific requirements that must be met.

Quick Access to Funds

Applying for loans in traditional lending institutions takes too much time. They have to evaluate too many aspects before deciding to grant you a loan, and even if the decision is made, it takes too long before you get the money in your account.

During emergencies and there is quick need for cash, banks are not the ideal option. Instead, you can opt for non-bank lenders where you get your quick loan approved and get cash as early as within an hour after application and up to one day.

Simple Application Process

Applying for a bank loan requires you to produce a lot of supporting documents that have to be reviewed before your loan is approved. You have to complete many forms, produce documents to show your income, and have your credit score checked.

On the other hand, you can qualify for a loan at a non-bank lending institution even after being rejected by banks. Even if you have an average credit score considered too risky by banks, you have a great chance of getting a loan at a non-bank lending institution.…

2018-08-132020-07-16 Robert Briseno

What to Know About Public Service Loan Forgiveness

The PSLF, “meaning Public Service Loan Forgiveness”, has been around for some time though the current US President Trump wishes to do away with it. However, some people argue that scrubbing off this program will do more harm to workers who are eligible for the PSLF. The program intends to give individual assistance to workers who were once students and were given the loans to boost their education. The loan is given to the individuals who are working with nonprofit making organizations.

The main purpose of the loan is to eliminate the remaining balance an individual has. If you have questions concerning the PSLF, then you are at the right place.

You must have a qualifying employer

For you to qualify for the Public Service Loan Forgiveness Program, you will need to have qualifying employment. This means that you will need to have an employer who qualifies you to have the benefits of this program. Your current job title does not determine whether you will qualify for loan forgiveness. The two categories of employers who can make you qualify for loan forgiveness are the nonprofit making employer or the government. Government jobs will entail state, local and federal government jobs. Similarly, it may include tribal organizations.

You need to have a full-time job

Secondly, for you to qualify for Public Service Loan Forgiveness, you need to be employed as a full-time worker. It will all depend on the meaning or definition of a full-time job for your employer. Seemingly, you will have to be working for 30 hours in a week for you to qualify for loan forgiveness. If the nonprofit making organization you work in has any religious activity like worship services, the time will not be included in the full-time hours. On the other hand, if you work part-time in a few jobs then you will also qualify for the PSLF program. All you will require is a minimum of 30 hours a week and from a qualified employer.

You must have the right loan type

If your loan is under the direct loans, then you will be eligible to get into Public Service Loan Forgiveness Program. However, you will need to understand the kind of loans that will not qualify under this category. On the other hand, to qualify for a PSLF loan, you will need to make 120 payments which can translated to 120 months.…

2018-02-212020-09-24 Robert Briseno

The Best Ways to use a Loan

Meeting the minimum qualification to apply a loan takes a lot of efforts. Using the loan is harder. The question of what to do with the loan to avoid misappropriation. Economists say that the more an organization or an individual has more disposable income, the more the organization or the individual tends to pay more tax and increase his expenditure. Disposable income refers to the amount of money that is available to a persona, and the same person is willing to use the money.

Purchase of equipment

An organization can use the amount of money borrowed to buy initial equipment to start a business or increase the amount of equipment held by the organization. The equipment of an organization indirectly influences the level of output in the organization. One can use a loan to install management information systems. These are systems that help the manager control, organize and supervise in the most effective ways. The systems help an organization maximize its output. One can also buy current assets to the company. Current assets increase the working capital of the organization. Organizations with more working capital are more productive than those with lower working capital. The best way to achieve a competitive advantage is to increase the organization’s equipment.

Meeting current expenditure

Current expenditures are expenses incurred on a regular basis. They are expenditures that the company has to meet on a day to day basis. A company can use the amount borrowed to meet expenditure. Such spending can increase the company’s liquidity. Liquidity is the ability of the business to turn current assets into cash and the ability of the organization to pay its creditors in time. When a company is faced with the challenge of not meeting payment deadline to creditors, a loan to crater for the expenditure is more advisable than a company running into defaults. This will improve the ability of a company continuing its operations as a going concern. Going concern is the ability of the company to continue its operation in the foreseeable future. It is the assertion that the company will continue operating and making a profit in future if the current prevailing conditions are kept constant.

Investing in long-term assets

A company can take up a loan and invest in long-term assets. They are assets that the company will recoup her investment in the future. They are classified as fixed assets in the book of accounts. Some assets, example land, are the ideal investment to invest in. They appreciate and increase in value. In the long run, the organization will have assets and add value. Expenses incurred in buying fixed assets are not taxed. The company will enjoy tax benefits. Investing in current assets is not advisable as the investment attract more tax liability to the organization. Other invests that the company can invest in include share and bonds.…