Credit Management Tips for Self Employed People

Being self employed you ought to be a better manager for plain sailing your business or service. You need to be the one who thinks clearly, objectively and loves to stay ordered and disciplined. However the more conscientious you are, the more grappled you could be with distractions all around.

Whether you are working as a freelancer or a part time worker, it is important to be financially prudent and manage your funds properly. For you singly need to manage the cash flow to work peacefully with all the stakeholders including suppliers, co workers, business partners and customers. Despite the issues or delay in payments you would need adequate annual funding for your personal as well as future business planning expenses.

To beself employed requires a lot of mettle and hard work. Here are some credit management tips to help you stay financially happy all the times. With too many things to manage, it would be wise of you to have a predefined plan for credit management.

Positive Cash flow

Cash is the king for running any business. And in the modern times, cash is not only the one you have as paper or plastic bills in your pocket, it is your credit worth that defines your real economic power. Most of the self employed individuals find it difficult to borrow at low rate due instable inflow of income.

When you are working as a self-employed business or a freelancer, the income is generally in lump sums and that too in uneven patterns. Many conventional lenders do not lend to self employed people due to this uncertain nature of their income. In the absence of adequate income proof you would remain dependent on private lenders for self employed loans despite having the loan repayment capacity.

Thus it is recommended to have a healthy cash flow all the times and ensure a good credit history to be eligible to borrow from unconventional sources. You can use a professional broker’s advice to assess your loan eligibility.

Estimate expenses

Most home based startups fail due to constrained estimates of expenses. Although your start up cost could be less due to your already set workplace at home, the operational expenses would not be as economical as the initial costs. Prepare a modest list of expenses before you begin the self employed business.

Learn to Keep balance

When you do not earn constantly month-to-month it is important to keep a balance to meet the shortfall on the dry income days. You need to save or keep aside funds to supplement money evenly throughout the year.

Limit the use of credit cards

Credit cards attract higher interest rate and charges. When you need quick money to fund a business plan you should consider applying for a small business loan for self employed instead. In face of shortage of available credit options, consider contacting a loan broker online. As you contact a loan adviser online, they will search all the available deals without any brokering fees.

Pay Taxes and Keep records

Most self employed people fail to raise loans due to lack of proof of their business age and income source. Paying regular taxes not only provide you a solid proof of your existence but also highlight your regular income. You should always keep copy of bills and receipts. Use professional help if you find it difficult to manage track of your expenses and income. Do not forget to use insurance and other tax relief investment opportunities.

Maria Smith is a financial advisor at Best Short Term Loans. She has majored in Debt and Credit Management and has been serving FinTech industry for the past five years. Currently she writes articles and blogs for borrowers struggling to avail personal loans with poor credit.

Some of the Biggest Mistakes When Looking For a Motorcycle Loan

The Essentials in deciding On Motorcycle Loan.

Sometimes the necessity or excitement of owning a motorcycle cast a bad spell on our buying decisions, especially when the purchase form is a loan. So, before making that impulsive mistake only to regret later consider these essential factors when deciding to apply for a motorcycle loan.

Interest Rates:

The moment you think of a loan, the interest rate coupled with it should ring a bell. Most often attract interest rates over shadow the risk factors involved. Always begin with good amount of research and comparison of interest rates. You do not want the burden of high interest rates steal the joy of riding your new bike!

Smart negotiation:

When you are about to make a purchase decision, do not merely focus on the form of payment and negotiate on how you intend to go about it. A smart negotiation effort would include, negotiating on the payment. Payment always precedes the payment method!

Loan Inclusions:

Discuss with the lender all the accessories that the loan is inclusive off. You do not want to pay additional bills besides paying off your loan. The wiser discussion and decision would be to know about the inclusions and the exclusions of the loan you have applied for.

Loan security:

Always consider what is at stake should you face difficulty in paying off your loan. Some lenders hold the purchased motorcycle as the security, failing to pay will mean ceasing your bike. Some other lenders may consider other collaterals as security. Unsecured loan plans are other alternatives but comes with a high cost of increased interest rates. So, your loan security should be well thought through deliberate decisions considering all the risks involved. You do not want to risk something in vain!

Loan penalties:

Pause before you sign your loan agreement. Although knowing the details of the penalties tailed to your loan amount can be cumbersome and you want to skip through it, it may not be the best of your decision. At best, avoid signing loan agreements that come with stringent penalties. A decision in time, saves you from a future disaster!

Easy loan termination:

Most lenders allow early clearance of your loan and some do not. It is best for you to verify the termination policies before you sign that loan agreement. You do not want to pay with interest rates, while you own the money to clear a credit.

Owning a motorcycle is useful as well as exciting, but what is more important is sustaining both while using it. Using the right loan tailored to your needs is worth every effort.

7 Things to Consider When Applying for a Payday Loan

If you are going through tough circumstances, payday loans may sound a tempting option to you. But if you are not an experienced person, we suggest that you consider this option after a lot of thinking. Since these loans feature a very high interest rate, they shouldn’t be taken unless you have no other option. Below are 7 tips that may help you make an informed decision.

Financial charges

The amount of loan you will get is a lot lower than what is written on the check. The reason is that finance charges are deducted from the amount, so you will need to write a check plus these charges. Not doing so will result in a higher rate of financial charges that you will have to pay. Most people get into even bigger trouble when they fail to pay the principal amount along with interest. So, make sure you know how much you are getting and how much you will need to pay back down the road.

Paying back

If you don’t have enough funds in your account to pay back the loan, you may try other options. For instance, you may renew the loan amount or consider taking out another payday loan. But keep in mind that this new loan will have its own financial charges and extra fees. And the extra fees are actually incur because of late payment of the amount of loan.

State Regulations

In each state, regulations are different for payday loans. Usually, the term limit is not more than 30 days. The problem is that lenders often issue loans that feature a longer term limit. In this case, you are at the lender’s mercy, which is a situation you may not be willing to go through.

Cash crunches

As said earlier, the purpose of a payday loan is to deal with a temporary financial crisis, and we have to pay back the loan as soon as we are out of the financial trouble to avoid high interest and fees.

So, it is not a good idea to be tempted by the “roll over” trend or you may have to pay a huge sum at the end.

Financial position

Usually, these loans are for borrowers with lower incomes as they can’t afford to borrow from other sources. Here, it is important to keep in mind that lenders don’t usually take into account the financial position of those who are applying for the loan. So, you have to think harder before opting for this option.

Automatic rollover

You need to be aware that there are some loan sites that tend to rollover the loan amount automatically. And then there are sites that have some contractual agreements that state that you, the borrower, do not have any right to file for bankruptcy or file a lawsuit against the lender.

Approval

A great characteristic of payday loans is that they are easy to get, meaning the approval process is quite easier than other types of loans. So, most borrowers find them quite tempting, but you should be careful and only opt for this option if you have no other choice left.

You may say that opting for a payday loan is a good idea to deal with a temporary financial crisis, but a hasty decision may get you in a bigger trouble. If you don’t be careful enough, you may end up in a vicious circle of debt. Therefore, it’s better to pay back the loan as soon as you get your hands on some extra cash. Hopefully, keeping these tips in mind, you will take this decision.