Bad Credit Mortgage: Applying For A Mortgage With A Second Charge

Credit record : A credit record is essentially a written record of what credit you have been given for the last six years. It discloses the amounts you have accessed and whether you have neglected any obligations etc. A credit record provides a way for prospective loan providers to investigate your credit history to enable them to make a decision as to whether to extend you a loan. The facts and figures on your record is complied by credit reference agencies like Experian and Equifax. They utilise data from public records (e.g. electoral roll data, county court judgments etc) and from loan companies as well as financial institutions: e.g. credit accounts, credit applications.

Debt consolidation loan : A debt consolidation loan means that you take out a loan to clear present debts. So in effect you are lumping together all your existing debts, clearing them with a debt consolidation loan and then making a single payment monthly to pay off the balance. You might find that you save money as well, since obtaining a lower APR loan to pay off a credit card with a balance accruing interest at high APR is very sensible. Another consideration is the psychological factor of only having a single monthly payment to deal with instead of lots.

Credit card : A credit card is a bank-associated card releasing credit to the client through the use of the card. A credit card allows consumers to pay for products and / or services from a retailer without having to use cash or a bank cheque. Any outstanding balance accumulated on the card has to be repaid each month by the consumer. If they do not, interest fees are added on the balance. The credit card has a maximum credit limit.

National Debt Line : The National Debt Line is a countrywide telephone helpline. It presents 'no-cost', independent and discrete advice to persons on handling debt troubles in England, Wales and Scotland. Their helpline service is available every day of the week and they also have an online website that has lots of useful help and advice on it. National Debtline is an element of MAT (the Money Advice Trust, and is a fully registered charity. The Money Advice Trust (MAT) provides individuals a systematic program to handling extreme personal debt problems in order that they might have proper control of their money matters.

Sub prime lender : When talking about a 'sub prime' lender, this is a company who offers loans to consumers with impaired or low credit ratings. A typical client of a sub prime lender would be a person who struggles to get finances from standard sources. This is the result of them having gone through financial difficulty previously producing a poor credit rating. Sub prime mortgages are also called Non conforming mortgages.

Bad Credit Mortgage

Advantages Of Freight Factoring Over Traditional Loans

You must have realized that although it is quite easy to start your own trucking business, it is quite difficult to keep it running. You might have credit clients that pay their dues between 30 to 60 days, while on the other hand there might be fuel bills, drivers' wages and other expenses that might need to be met on a daily basis. A permanent solution would be to get a regular flow of cash, even while you extend credit to your clients.

The traditional method of raising money would be to approach a bank, in order to procure a traditional loan. However, if you are a start-up trucking company, the bank might foresee a higher risk and might ask you for a larger collateral against the loan. You might also need to furnish the account statements of your company for the previous three years, which anyway would not be possible. The loan amount would also be a fixed amount that would need to be paid back within a fixed time, by way of fixed monthly installments. Hence, a bank loan could be accompanied with rigid conditions that would have to be met during and after the loan has been sanctioned. In case you do require an additional amount, then that too would be quite difficult, since you might have to wait until the first loan had been cleared.

On the other hand, freight factoring involves companies that just 'buy' your credit invoices from you and in turn pay you the invoice amount within one to two days. These freight-factoring companies retain a 'factoring fee', ranging from 1.5% to 5% as their service fee. This fee will depend on the credit rating of your client as perceived by your factoring company, the number of credit days that you have extended to your client and the total volume of business that you can furnish to your factoring company. Essentially, this implies that you get your money immediately, even though you may have issued a credit invoice to your client. This will enable you to pay your fuel bills, your drivers' wages and meet other expenses immediately rather than waiting for your payments to arrive.

These factoring companies can also take over the collection activities of your business. They can thus collect the payment from your client on the due date. This will free your mind from the tensions related to collections and you will be able to focus your energy on increasing your sales rather than chasing outstanding payments. The advantage of freight factoring is thus multi fold. You will not need to provide any collateral.

The amount that you receive will be directly proportional to your invoice value. There will not be any repayment schedule, since the amount will be wired to your account after the factoring fees have been deducted. This method of finance will thus increase along with your business. You can also factor all or part of your invoices with the factoring company. You cannot only handle all your expenses immediately, but can also take in new hauls, which otherwise would not have been possible due to lack of ready funds.

Thus, freight factoring offers a variable and flexible alternative to a traditional loan. This financial tool can greatly improve your cash flow without tying you up with monthly installments over a fixed period. By taking over your collection activity, it can also reduce your stress levels and impart a level of professionalism in your business. Hence, freight factoring is more in tune with your business needs as compared to a traditional loan.