Understanding Unsecured Loans for Starting Small Businesses

Opening a business requires capital to pay for supplies, rent a building, turn on the utilities, and pay employee salaries. The traditional way to get funding for a business is to take out a loan with a bank but getting business loans can be difficult to do. Fortunately, there are unsecured loans that you can take out to get the capital you need for your business.

What Is an Unsecured Loan?

When you take out a loan through a traditional bank, it usually needs to be secured by collateral. Many people use their homes to take out second mortgages or loans to start a business. The main problem with securing a loan with a house is that if you default on the loan, you could lose your house and end up with no place to live.

An unsecured loan does not require collateral to get the money you need. They are not offered by most banks or other lending institutions. Instead, unsecured loans are usually offered by alternative lenders such as payday loan companies. People may take out unsecured loans for minor home repairs, car repairs, or personal loans to get by until their next pay day.

However, there are other lenders who offer unsecured loans for larger amounts that people can use to pay for university expenses, buy a car, or invest in their small businesses. Lenders offering higher loan amounts may require borrowers to have someone guarantee repayment of the loan, have good credit, and have a stable monthly income of $6,000 or more.

Loan Amounts

Some companies offering unsecured business loans may lend borrowers anywhere from $1,000 up to $250,000, depending on their needs. It is important to calculate how much you need and what you can afford to pay back before taking out an unsecured loan. While you may not lose anything of value if you default on the loan, your credit rating will suffer.

The loan terms vary widely for these loans as well but many companies offer short-term loans so the money you borrow may need to be repaid in as little as 12 months. Also, the interest rates are usually much higher on these types of loans than they are with traditional loans from a bank. Interest rates could start out low for people with good credit, starting as low as 1.80% and going up from there if your credit isn’t so great.

The main advantage to getting money from a non-traditional lender is the speed with which you could get the money. Many lenders accept online applications and you could get pre-approved for a loan in as little as five minutes. The money could be transferred into your bank account the following day as long as you provide the documentation they need and are solvent enough to repay the loan in a year.

It can take several days to weeks to get a loan through a bank so if you need money fast, then an unsecured loan may be the best option for you and your small business.


Eligibility for Mortgage Loans to Own a Property

What a mortgage loan actually is, a loan where assets (property) of the owner are used as collateral or hostage. The borrower or owner of the property signs an agreement with the lender (bank maybe) where the borrower gets the cash in advance then has to repay over the dedicated time limit as mentioned in the agreement until he repays the full amount back to the bank. People usually opt for such loan to buy house or property but don’t have enough money in hands to buy that property so they borrow money and also the property is used as a security itself by the bank. A timely bound period of repayment is settledbefore lending the money and some interest rate is chargeable over that period.

Eligibility Criterion

There is an eligibility criterion which must be fulfilled if you want to apply for a mortgage loan like income source details, income, Loan to Value Ratio, employment history, credit score. These factors are fully analyzed by the mortgage professionals for providing you loans which is best for you.

There are also predefined insurance terms and policies in case if the borrower fails to repay the mortgage amount. These policies will save the lender. A mortgage calculator with extra payment can be used to estimate the loan value and your eligibility. Since it is important to now the affordable amount to buy a property, you will be able to deduct your monthly payment for mortgage loan using the mortgage calculator with extra payment.

What is actually required to calculate your possible mortgage payment for a month are the price of your property or home, down payment you can pay, interest rate and percentage of down payment, Mortgage duration.

The mortgage calculator with extra payment is made available on It will check if you are eligible or not for the mortgage loan by calculating your monthly payable mortgage payments with inputs to be filled in that is home price, means the total cost of the property you are thinking to buy. The down payment is another input which will tell about the money you would pay partly of the total cost and rest of the payment will be made by mortgage for your home. A number of down payment requirements are there.

The time period in which you will be making payments of your mortgage loans is mortgage term. A long period means small monthly payments but more interest rate. The interest rate will be provided by the mortgage professional or the mortgage lenders and varies according to the provider. And at last with the inputs you have given, you will be shown your expected monthly payable amount depending upon the information or the input you provide


Avoid Falling In The Trap Of An Aggregator For Loans

Taking a loan from a direct lender is always rewarding as you can save money on the rate of interest as well as the commission payable to a third party. However, you should know here that there are some aggregators that collect your information including the financial details online and sell those to a third party. In such a case, you get exposed to the risk of identity theft. On top of it, your mailbox gets flooded with spam mails. All those put together connotes that you must carefully choose the direct lender loans in your niche market. Extra care must be taken to check all necessary information online such as the disclaimer of a site before divulging the crucial information about your personal and financial standing.

However, direct lenders are often considered angels as they help you overcome crises from time to time. Despite taking all precautions, you are not immune from the ups and downs of life. In fact, the richest man in the world too has had a fair share of ups and downs in life. Look at Bill Gates. Gates too had a modest beginning before tasting success in Microsoft. Likewise, you will find many examples where people have struggled their way out. The direct lender loans can truly help you become a winner like Bill Gates provided you are adept at managing your finances. All that you need here is a flawless planning on your income and expenditure where loans from the direct lenders give a feeling of security.

Why take loans from a direct lender?

  • Fast approval: Time is crucial everywhere and you understand this better when you are in a financial mess. Having said this, we mean, there are awkward situations in life where only money can help you get out of it. In other words, money at your disposal is all that becomes important for you at times. That’s where direct lender loans come to your rescue.
  • Free application processing: When applying for a personal loan, financial institutions like banks ask you to go through a time-consuming process such as the filling up of a cumbersome loan application form and then submit the same in person to a branch. That isn’t enough. You have to submit a list of documents as well pertaining to your address, income tax, social security number etc. to name a few. On top of it, they will charge a fee for processing your loan application without any assurance of its approval. However, a direct lender neither charges you a penny to process a loan application nor it asks you to follow a time consuming cumbersome process. Go online and apply. That’s it.
  • No fee for early repayment: Direct lenders do not charge you extra in the case you want to repay before the loan tenure. Besides, you can set your instalment amount as per your convenience.

Likewise, you will find many advantages of direct lender loans bespoke to your needs in life. Such a lender can be a true friend to you when you need money badly to meet some exigencies like paying the hospitalisation bill.

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You Are Getting Older So What Kind of Life Insurance Do You Buy

Life insurance is considered a necessity in our world today but the kind of life insurance you choose is up for debate today even more than it was in the days of our fathers and mothers. In those days they searched for just enough to “bury” them. In later years it became the “investment” approach to life insurance. Any good life insurance agent will tell you “life insurance” is not the best way to save for the future. It is a stop gap measure.

Life insurance is designed to do two things. First, it must be enough to take care of your burial and funeral expenses after you are gone so your heirs don’t get stuck with the bill. This is the same line of thinking our forefathers used. However, it now has gone past that.

The other part of life insurance is the reason to have plenty of it if you are in the under 60 age bracket. You want to leave something for your spouse, or in some cases your children, to live on after you are gone. Noble idea to say the least. As one comedian put it he didn’t like life insurance because he didn’t want anyone to be happy when he died. Well as funny as that is, we always want to leave something for our loved ones.

The problem is we are living longer. Medical science and the drug makers have seen to it we now live well into our 90’s if we’ve lived any kind of clean life. Our 80’s are certainly doable for non-smokers and people without a family history of heart disease. So where does this leave us when it comes to life insurance.

First of all if you make it to your 90’s chances are you are not going to have insurance anymore. You’ve long passed the age of being eligible for some companies and the other companies aren’t about to let you off on the “the cheap.” It will cost you more than the average person can afford to keep it up. So that is a dead issue, no pun intended.

Whole Life isn’t efficient certainly and Term Insurance only covers you for a short time. You are hoping to live well past that short time and if you take a Term policy you have to either renew it or drop it at the end of the term. Renewing it will be very costly since the new rate will be much higher than the old one. Dropping it leaves you without insurance and means you’ve just waited your premiums for 10 or 15 years and you are still healthy.

Wow not too much choice there. The option may be to make sure you buy a policy which not only allows you conversion privileges (change from 10 to15 years and renew) or a policy you can sell.

There are companies which do buy insurance policies and they may pay you what you already spent in one lump sum, they may pay you less than you paid out in premiums or in some cases they may pay you more. This all depends on your health and your age.

For instance, if you are in really bad shape, and obviously you don’t have many years to live for whatever reason and your policy is worth $250,000 you will probably be able to get a nice lump sum back by selling it. If you’ve paid in, let’s say for grins, $50,000, you can probably easily get a $50,000 payment from a buyer, or even more. The reason? When you die and they convert it to a policy they can pay premiums on, they are going to get the $250,000!

If by chance you are in very good health and the Term policy is running out, they are not going to be nearly as interested in buying it because of the money they will have to pay out to keep it going until you do die. It is simple math.

Either way it is an option you should consider when you go shopping for insurance.


Money Saving Tips Using Your Health Insurance

The year is about to end and you may be worried about where you will source for funds to finance your costly health insurance coverage. You may be thinking of cutting down on costs, but you do not have precise ways that will help you achieve this without exposing you to potentially high-cost out-of-pocket expenses.

Insurance expenses to cover medical and healthcare have become unbearable for most people because of increasing premiums, many people transiting to old age, ever rising cost of providing medication to the insured population, and inflationary economies. Below are five money-saving tips that will reduce your insurance costs and allow you access to high quality health coverage plans for you and your family.

Tip 1: Raising Out-of-pocket Expenses

When you increase your out-of-pocket expenses, you will be raising your deductibles to influence the monthly premiums that you will pay toward your coverage. Many insurance providers have designed various insurance plans that allow policy holders to navigate the ever-rising cost of coverage by choosing to lower their monthly premiums. If you are comfortable paying more from your pocket to cater for your medical costs, you will be able to find an affordable health insurance plan. While many countries and states have passed health protection Acts that allow their populations to access healthcare, it is still unclear how insurance costs will reduce since other factors continue to impact the overall cost of access to quality healthcare.

By increasing your annual deductibles, you are simply reducing the coverage that can be paid by your insurance carrier. Your out-of-pocket payments can cater for prescription medication. If you do not foresee a major spending toward prescription medications in the coming year, you should choose that has a larger deductible.

Tip 2: Take Advantage of Open Enrollment

Many insurance companies especially established ones provide their clients with open enrollment plans that allow them to transfer from one insurance plan to another without putting many conditions on the pre-qualifications that are usually in place during normal enrollment days. Most insurance companies require people with chronic conditions and other conditions limited access to a particular insurance coverage plans and such people can benefit from open periods organized by their insurance companies. Usually, open enrolment is a period that last for one month within which you can change your plan and enjoy the benefits of the new plan. Be keen to mark on your calendar your company’s open enrollment days to allow you access most suited plans for you or your family.

Tip 3: Switch to Tour Spouse’s Insurance Coverage

There are situations when both spouses are eligible for insurance benefits provided by their employers. You can check your company’s health insurance coverage options when your provider starts its open enrollment to determine the best option for both of you. If your employer deducts more money toward medical insurance contributions than your spouse’s employer, you can save a considerable amount by switching his or her coverage and terminating your own plan. This means that you can be able to save the extra money if you crunch the numbers the right way to know the less costly option.

Tip 4: Switching to Smaller Doctor/Medical Networks

Most, if not all insurance companies work with more than one network of doctors from which you are allowed to choose. By changing from one network to the next, you will not be changing the type of benefits, but you will be changing the provider of healthcare. If the insurance company has smaller networks than those you are dealing with, you should consider changing since you could lower your premiums by about 10% every month.


7 Reasons to Get Homeowner’s Insurance

If you are like most homeowners, you will want to make sure that you protect the investment that you have made into your home. The best way to do this is by getting homeowner’s insurance. If you have a mortgage, most lenders will require insurance but there are a number of other reasons you should purchase it, too. You can never be sure what will happen when you are a home owner and because of that, you need to be prepared. Here are seven good reasons to get homeowner’s insurance:

1 – It Can Protect You From Lawsuits

You might not know this, but you could be held liable if someone is injured on your property. For instance, if you hire an uninsured plumber and they slip and break their arm in your home, you could be responsible for it. With homeowner’s insurance, you are protected.
2 – It Can Protect You From Natural Disasters

Fire, wind, snow and rain can wreck havoc on your home. Almost all homeowner’s insurance policies will cover the damage caused by these disasters. If your area is prone to floods, you will need to get a separate policy. If you home has experienced damage from natural disaster such as a siding damage or a roof cave-in, your insurance company may be able to work with companies like Century Roof Limited in helping you repair your damaged home.
3 – It Can Protect Your Belongings

Homeowner’s insurance will also serve to protect your belongings. If something in your home gets damaged, like a laptop or television, you can get it replaced through your policy. It can also protect your furniture like a couch or a bed. Some policies can also protect perishable items like food. For example, if your home loses electricity for long periods of time, your insurance policy may be able to cover any food that you may have been keeping in your refrigerator. In other words, you may be able to receive money for any food that may have gone bad during natural disasters or damage to your home.
4 – It Can Protect Your Equity

The equity in your home is the part that is over the mortgage value. Essentially, the part you own versus what the bank owns. With homeowner’s insurance, you are guaranteed you will not have to build up that equity again should something devastating happen.
5 – It Can Protect From Theft

No one wants to think that they will be a victim of theft, but it can certainly happen and is more common than you might think. Fortunately, homeowner’s insurance will help in this situation, too helping to compensate for any damage or missing items that may have been a result of a theft in your home.
6 – It Can Give You a Place to Live

Many homeowner’s insurance policies will cover interim housing. You might need to use this feature of your policy if you need to get out of your home for some reason. This could happen if you need service like mold remediation or if your home is destroyed and needs to be built again.
7 – It Can Give You Peace of Mind

A homeowner’s insurance policy will serve as peace of mind for you and this might be the best benefit of them all. If something happens to your home, and you are covered, there is no need to worry about financial ruin.


Insurance Guru: What to Know Before You Commit

Are you one of those people who despises looking around for a new insurance policy? If so, you’re not alone. It’s actually fairly common for people to settle on insurance they keep year after year, despite not being sure whether or not they’re getting the best deal.

It doesn’t need to be this way. Regardless of whether you’re looking for car, home or life insurance, you can become an insurance guru with all of the knowledge necessary to make a wise choice. To help you better understand, we’ll focus on car insurance for the remainder of this post. Here are four things you need to know before committing to a car insurance policy:

  • state requirements
  • coverage amounts
  • annual deductibles
  • payment options

State Requirements

Insurance is something that’s regulated at the state level. This means car insurance requirements vary from one state to the next. You need to know what your state requires before you can determine whether or not minimum coverage is sufficient.
Liability insurance is the starting point in every state where car insurance is required by law. Liability insurance pays for the damage and personal injuries you cause to other drivers as a result of your actions. It does not cover to repair or replace your car. If you want coverage for your own vehicle, you can purchase it by way of collision and comprehensive insurance.
According to Taylor and Blair ICBC lawyers in Vancouver, some states also require personal injury protection (PIP) and uninsured/underinsured motorist (UM) coverage. You need to know whether these are required in your state. If they aren’t, yet an insurance quote includes them, you’ll have the option of dropping them from your policy.

Coverage Amounts

The different components of your car insurance policy cover different scenarios at various levels. Again, liability insurance is a great example. A policy with liability coverage of 15/30/10 would cover you according to the following formula:

  • $15,000 per accident for personal injury or death of a single victim
  • $30,000 per accident for personal injuries or deaths of multiple victims
  • $10,000 per accident for property damage

Knowing your coverage amounts is critical to making sure you are covered sufficiently. This includes what you pay for PIP and UM coverage. Should you ever be involved in an accident caused by another driver, insufficient insurance coverage may require you to hire a personal injury attorney in order to recover enough money to pay your medical bills.

Annual Deductibles

The area of deductibles is one many drivers find confusing. Simply put, a deductible is an amount of money you agree to pay toward the costs of resolving an accident claim. A policy with a $5,000 collision deductible would require you to pay the first $5,000 toward the repair or replacement of your vehicle and your insurance company would pay the balance.
Agreeing to higher deductibles allows you to get away with a less costly annual premium. The opposite is also true. Lower deductibles result in higher premiums.

Payment Options

Lastly, the payment options offered by your insurance company will partly determine how much you pay in total for your car insurance. You’ll get the best price if you can pay in full at the time of purchase. If you choose monthly or quarterly installments, you will also be paying a finance charge along with various administrative fees.

Buying car insurance isn’t so confusing when you know how the system works. Keep in mind that the principles covered here also apply to other types of insurance as well. So do your homework and become an insurance guru before you commit to your next insurance policy. It is the best way to make sure you’re getting the most attractive deal without sacrificing coverage.


LIFE INSURANCE Top 4 Reasons Why Personal Accident Insurance is a Wise Idea

Most of us know about the importance of insurance policies that deal with life insurance or health insurance. These are the big ones that everyone is advised to look into in order to protect themselves against hospitalisation and medical expenses or buffer the risk of death and liabilities arising due to it. But there is one sort of coverage that is often overlooked – namely ‘personal accident insurance’.

A usually inexpensive sort of coverage, personal accident insurance is offered by most leading insurance companies, Dubai insurance firms and the like.

Personal accident insurance and schemes in general are aimed to cover the policy holder from injuries, disability or death due to accidental reasons. Minor and major personal accidents are included in the coverage and it is a good policy to consider to complete you insurance portfolio. In many cases personal accident insurance premium is generally much cheaper than other forms like life insurance, so it is an affordable addition to keep yourself covered.

Let us take a look at some of the top reasons to consider personal accident insurance for yourself and / or your family members today –

1.Well firstly, accidents happen; major or minor, life is unpredictable enough and unforeseen accidents add to the mix! It could be injuries you sustain when you fall of your bike or injuring your foot during a vigorous kick boxing class. It could be more major like injuries sustained when playing a sport or indulging in a physical activity that leaves you bed-ridden or a tragic disability due to a mishap. Personal accident insurance helps you financially through a temporary or permanent disability and provides a little support in the days after an accident. This becomes so important when you are injured and bed ridden with your pay cheque slowly getting docked or if a disability prevents you from going back to the profession you are in currently. Some policies also offer options for temporary disabilities and cover against loss of your earnings.
2.Secondly, personal accident insurance is a good way to fill a hole when the accident in question is a little murky in the sense that you cannot ascertain who or if anyone was truly at fault for e.g. When you are walking through a building renovation site and some debris falls on you and injures you. You cannot always ascertain who was at fault here. Sometimes it is more clear cut like a car accident caused by rash driving on one driver’s part, but when it is not so clear cut your personal accident insurance cover will help tide you over financially.
3.Thirdly, as mentioned earlier most insurance companies offer very affordable personal accident schemes that are not a big additional drain on the pocket. The slight increase with the premium payment may be well worth the peace of mind and cover it affords you. You can also find family schemes for personal accident insurance or packages that bundle it with other covers, offering a more attractive rate and further discounts.
Policy holders like yourself opt for life insurance, home insurance and health insurance etc. to help protect themselves and their families, so why not look at something that will provide you with all more coverage and one that fills any possible gaps.

Talk to your insurance company about the personal accident insurance policies they offer. Most insurance companies look at factors like your occupation, lifestyle, working conditions and the like when ascertaining your premium rates


Five Best Ways to Save Tax by Investing in 2018

Every individual has different long-term financial goals. While saving for these goals, it is ideal to choose investment options that help in tax saving as well. With a number of tax-saving instruments available in the market, it is easier to ensure that you make the most of the available deductions.

The Income Tax Act offers a number of investment avenues for individuals to ensure that they can save on the amount of tax payable. A balanced mix of investment will ensure that you achieve tax saving and wealth maximization. It is also important to choose funds that help generate a tax-exempt income in the long run.

Five best financial instruments to save tax

  1. Home loans

Taxpayers are allowed to claim a deduction for the principal amount as well as the interest paid on the home loan. In certain cases, the maximum deduction allowed is restricted to INR 2 lakh. Therefore, although home loan is a huge liability, it offers substantial tax benefits to the individual.

  1. Equity-Linked Saving Scheme (ELSS)

ELSS funds, a type of equity-linked mutual funds, have a higher return and a lock-in period of just three years. The returns from the tax-saving mutual funds are completely tax-free. An amount of INR 1.5 lakh can be invested in ELSS to be eligible for a deduction under Section 80C. The money can be invested in a lump sum or in the form of a Systematic Investment Plan (SIP). The share broker will ensure that the fund is diversified and the risk is low.

  1. Public Provident Fund (PPF)

Taxpayers looking for definite returns should invest in PPF. An investment in PPF currently earns an interest at 7.6%. This is tax free under section 80C. The investment can be made in the form of a lump sum or in intervals convenient to the investor. The upper limit of such investment is INR 1.5 lakh. It is important to note that the duration for the same is 15 years, which is extendable by 5 years.

  1. Fixed Deposits (FDs) with a five-year lock-in period

This is one of the oldest and safest investment options to save income tax. A tax deduction amounting to INR 1.5 lakh is offered for the investor’s benefit, but the interest amount remains taxable. Considering the FD has a five-year lock-in period, it is advisable to choose a bank that offers the highest rate of interest.

  1. United Linked Insurance Plan (ULIP)

ULIP is a life insurance plan, which helps in the creation of wealth as well. It is a mix of debt and equity and the amount paid in the form of the premium is deductible under Section 80C. The maximum deductible amount is INR 1.5 lakh. There is an additional condition that the premium amount should be restricted to 10% of the amount of sum assured under the policy. ULIP comes with a lock-in period of five years and the taxpayers can make partial withdrawals after the said period.

In order to make the most of the available deductions, taxpayers should start planning in advance and choose alternative investment options whether it is tax-saving mutual funds or pension funds. Striking the right balance between the products is a tedious task but depending on the income of the taxpayer, the right investment choices can be made.


What You Need To Know When Forming An LLC In New York

Limited Liability Company or LLC is one of the most common forms of business all over the world. This is the reason why you can find plenty of LLCs in New York. This is a business structure that can allow pass-through taxation but with a limited liability to its owner. This is considered as the best option, especially in New York.

LLC is a good choice when you are starting up a small business. This is because it can define and specify the roles of the owners while protecting the company from falling apart. When you are just starting up in your business, here are the things that you need to know about the LLC.

The Advantages of LLC

When forming an LLC, the owners and the members have very limited liability when it comes to debts and liabilities of the LLC. The taxes will be based on the personal tax returns of the owners and not the business. There is a flexibility when it comes to distributing the losses as well as the profits of the owners. With the LLC, there are no restrictions when it comes to the number of owners.

When it comes to the management structure, its flexible. The company allows different membership classes. Compared to the S or the C Corporations, there are no meeting requirements and the paperwork are less formal. This type of company requires all the consent of the members in order to increase the ownership.

Is LLC The Best Choice For Your New Business?

Any type of business can be established as an LLC or Limited Liability Company except for law firms or medical offices. For these businesses, a Limited Liability Partnership or LLP is most applicable. When your LLC is in New York, you are sure to enjoy the benefits that large corporations are able to benefit from but without any hassle and accountabilities when it comes to maintaining records and meetings.

Why Register Your LLC in New York State?

There are plenty of reasons why you have to register your LLC in New York but one of the major reasons is that New York is the best state when you are launching your new business. The state is diverse and the culture is rich. The economy is continuously growing which opens amazing opportunities for a growing business. This is the best state to build and develop your company with its GDP of $1.44 trillion a year. The state ranks the highest economy in the world.

The Windsor Corporate Services

Forming an LLC in New York is made easy by the Windsor Corporate Services. The paperwork and the complex process when forming and registering a business are the reasons why some new businesses are hesitant to continue. But with Windsor Corporate Services, everything will be easy for you. You can visit the website for you to know more about the process. So what are you waiting for? Form an LLC with Windsor Corp today!