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Have you been part of an important conversation and you didn’t understand a word about what people were saying? Are you willing to take out a loan but you realize you don’t have enough information to fully understand what does loan financing consists of? If this sounds familiar to you and you are tired of knowing little about some commonly used terms in the world of financing, this can be a good occasion to learn some useful concepts and manage your business in a better way.
In this opportunity, I will deal with some important type of loans you should be acquainted with if you own a business and you are thinking of giving a chance to loan financing. Let’s begin by referring to quicken loans and how do they function.
What are quicken loans?
Quicken loan is a small online mortgage company that works in the United States and which is known because it is considered the most viable mortgage financing option through which you can obtain money virtually and with the assistance of a qualified customer service. The advantage of operating with this company is that as is it a small company, the whole process does not imply that you receive thousands of emails or various lenders that want to do business with you. Instead, your documentation stays in privacy, which in fact means that it stays in fewer hands. When you operate with loan companies, the information stays in private, too. In this case, it just means that fewer people check and verify your documents.
What are small loans?
As you can infer from the name of this loan, this is a type of financing that provides you with a small amount of money, usually, one that goes from R100 - R8000. The amount of money offered will depend on the financing entity and the services each institution provides. In any case, you can resort to one that actually meets your needs and the offers services you are expecting to be given.
What is a mini permanent loan?
Before reading about mini-permanent loans I recommend that you take a look at the article that deals with commercial real estate loan which you can easily find in this site. I suggest you do that because mini-permanent loans are one type of commercial real estate loans, so if you read it before this article, you will better understand how mini-permanent loans work.
The definition of mini-permanent loan makes reference to a type of interim financing. Through this loan, a person can acquire diverse types of properties through a flexible financing, especially for investors. They are a kind of funding that can be used to pay off income-producing construction. They are also considered a way for borrowers to have access to long-term loan funding and it is also considered a first mortgage on a commercial property.
How do mini-permanent loans work?
They are used for property-related items. During the duration of the loan, you prove banks that you are capable of applying for traditional loans by showing a good operating history. Whenever the property performs well, you are proving this.
What else do I need to know about mini-permanent loans?
- It is a short-term financing.
- The duration of the loan goes from three to five years.
- No additional capital is required.
Can you get a loan with no credit history?
Usually, having no credit history is a hindrance to getting loan financing. This means that is not something that is impossible to achieve, but it is better having a bad credit rather than to have no credit at all. If you don’t have any scores, then the challenge for you will be to find a good lender that accepts your current condition at the same time you build a credit file. Fortunately, there are companies that offer services to this kind of clients’ profiles so do not worry because I assure you that you will find an entity willing to help you. Because of the lack of credit history, it may happen to you that you be considered a risky borrower. For that reason, you may be charged higher interest rates.
How do I establish credit for the first time?
There are five ways through which you can establish your credit for the first time:
A good option can be that you start using a credit card that is secured. This may be a convenient way for you to start building you scores from scratch.
A credit builder loan is also a good option. Usually, a credit builder loan holds a certain amount of money in a financial institution that contributes to building your credit scores at the same time you are making the payments.
You can also improve your scores by resorting to a co-signer, that is, a person who assumes the same responsibilities as you, the moment you take out a loan. Generally, this person has better credit standing and is also someone who is considered capable of making the loan payments without problems.
The moment you become an authorized user of the credit cardof someone else you are also increasing the chances to boost your credit history.
As the last option, you can also get credit from paying the rent. Every time you make on-time payments, you build a positive credit history.
What is CC loan?
The abbreviation “CC” stands for the words “cash credit” and points out to cash credit loans which are funds normally granted to business and companies that have shown a track record of profit. The institution that is in charge of providing this funding is the bank, provided that the business provides a security which is compulsory to secure the loan. Once this is achieved, the company is allowed to withdraw money. The amount of money that a business is allowed to withdraw is limited.
If you have a business or you own a property, this may be a good opportunity to explore in depth and analyze the good side of any of the loans explained in the previous paragraphs. All the options lead to great positive outcomes!