Loan: everything you need to know about borrowing and credit!

Taking out a loan, nowadays it’s all easy via the internet, but there is still a lot involved. The application itself must be in order, the data that you send must be complete. Are you in order to apply for a loan? It is not only sufficient to be of age. What else do you need to know about borrowing and credit.

You must be at least 18 years old to apply for a loan.

You must be at least 18 years old to apply for a loan.

But since you have to pay back the loan, you must also have a fixed income. An interim or temporary work does not always provide a sufficient guarantee for a bank. They want to keep the risk as low as possible and to be sure that you can pay back the loan. That is not only to their disadvantage, but also to your disadvantage. Then you get the stamp of defaulter and you end up in a database. All banks see your data there and can refuse you a loan if you want to apply for it in the future. So pay close attention to this and put yourself in trouble.

Your income is therefore important, a permanent job where you have been active for several years is ideal. Your spending also plays along for a bank. Jr cannot spend your full wage on loans. That is an endless street, so you will never get out of it. The banks have a rule that you do not learn that you can borrow 40% of your income. If you already have other loans, then you should definitely mention that bike in the application. Then a bank can calculate how much you can take to borrow. Alimony also counts in that calculation. So if you still have to pay alimony for son or daughter, then you should also state this. This can prevent you from getting a new loan. You can always make the calculation yourself. If in doubt, please contact a bank.

If you do not have to pay a loan or alimony, there should not be any problems. If you can present a wage slip to prove your income, a bank can process the application. That certainly does not take long, sometimes you already have a confirmation in one day. If you are in a bank branch, you can often already receive confirmation at the time that a loan is possible. A loan is only a feut if both parties, you and the bank, have signed a contract. So think carefully before you place your signature. By the way, you make a commitment for a few years and you have to provide a monthly repayment.

Applying for a loan is usually about money reserves.

Applying for a loan is usually about money reserves.

If your guy is low on cash for a moment and you want more room again, you can apply for credit at many banks. Here the costs or APR may be higher and you therefore end up with a lot more costs than you borrowed. But sometimes it is necessary to have a cash reserve. You can solve sudden expenses that you cannot pay yourself with a credit.

We all borrow, if it is not for a car or a house, then it is for small electrical appliances or a renovation loan. Even though Belgians are known to be good savers, the loans that are taken out daily are hard to keep up with. It is an easy way to make your dreams come true. And if you can handle it responsibly, then a loan can be called safe. You just have to include the costs. But you can do your best to find the cheapest loan. You do some loan simulations and before you know it you have found that one bank with nice conditions. No more waiting and just applying.

Thanks to a simulation you can already see how much a loan will cost you without obligation. On how much time you can pay off a certain amount. You can choose to take a long or short term. Short means less costs but a high monthly payment. Here you have to make your own choice and consider what your budget can handle. Don’t make it too difficult for yourself and choose the happy medium.

How many loans can you have?

Applying for a loan is very easy today.

Applying for a loan is very easy today.

You almost don’t have to get out of your house anymore. Very easy and fast. In recent years, banks have used a great deal to get customers to do as much as possible via the internet. Online banking has been very popular for some time now and those services are constantly expanding. Now a lot is already possible to do via the smartphone. The apps are very user-friendly and payments go very quickly. You can also use the internet to search for a loan. The banks allow you to perform a loan simulation through their site. Do you already know how many loans you can have at the same time?

You can also calculate that.

You can also calculate that.

Every customer at a bank can spend up to 1/3 of his income on fixed expenses. Those fixed expenses are for bank loans and alimony. If you do not have either, you take your full wage and you deduct one third of it. You can therefore spend that amount on one or more loans. In most cases and with a loan with two partners you can have a housing loan, car loan and possibly a third loan at the same time. Everything depends on the amount of your income and how much you want to borrow, of course. But if you are planting well or are good earners, then that is certainly possible.

It is also questionable whether you want to have all those loans and take out them at the same time. A loan is a commitment with a bank, so you have to pay it off monthly. That creates some financial pressure and that can sometimes go wrong. If you suddenly have an unexpected cost that you can no longer pay because the monthly repayment of the loans is too high.

So be sure to think carefully before taking out a loan.

So be sure to think carefully before taking out a loan.

For a home or a car you can hardly do more than borrow for it. Those amounts are too high to pay in one go. But for smaller purchases you better think twice. You also have to pay the costs on a loan. And for several loans at the same time that amount can rise. Then it is better to save something and buy it from your own resources.

It is therefore possible to have multiple loans and even with different banks. The payment is then made via direct debit at the bank where your current account is located. That all happens automatically, so you don’t have to do much about it.

What to do if you have lost the overview of your monthly repayments?

Many families have multiple loans. That can be a mortgage loan, a green energy loan or something else. That usually varies per family. The point is: you want to avoid chaos. But what do you do if you have lost the overview of your monthly repayments and administrative formalities?

A possible solution is to merge your loans.

A possible solution is to merge your loans.

Merging different loans can be interesting in many situations. You have more than one loan. You want to save on the costs that loans can sometimes entail. You want to change the monthly repayment amount. Or you just want a clear overview of all your credits.

By combining loans you get a helicopter view of your business at a glance. The fact that you only have one monthly due date is also handy. The interest can also be a lot lower, which also plays to your advantage.

How does the regrouping of credits work? Specifically, you take out a new loan within a new term that is adjusted to your budget. Even if you have loans with different financial service providers, this is perfectly possible. Keep in mind that the merging of loans sometimes results in a loan with a longer term, whereby the monthly repayment is noticeably lower, but which, despite a lower interest rate and monthly repayment, may amount to a larger total repayable amount.

The advantages, however, are that you have one payment, one due date and more financial breathing space. And that relieves! Because doing nothing is never a good solution. Certainly if you have too many different loans and credit cards and it just becomes too much to keep paying this easily each month, you should not continue to use it.

Find a cheap loan

Find a cheap loan

It doesn’t take much effort, because nowadays you can arrange just about everything from the comfort of your couch via the internet. Finding a cheap loan is easier than you think. If you have a computer with an internet connection you can get started yourself. Select a few credit companies and surf to their websites. Search the website for the desired loan and proceed to the loan simulator. With this tool you can calculate loans. Completely without obligation and completely free. This way you can compare all banks and other financial service providers and also have a look at the costs. To start the calculation you must state the amount to be borrowed, then the number of months of payment. That is enough to see an amount appear for the monthly repayment. Then pay attention, with that amount you will see the abbreviation JKP which is the abbreviation for Annual Cost Percentage. You therefore need the lowest APR for the cheapest loan. Then you are in the right place and you can apply for the loan.

You can make the request yourself from the same website. Enter your details, possibly also those of your partner if you want to take out the loan with two. You can also forward supporting documents such as the latest pay slip and a copy of your identity card. From then on, the company will review your application and calculate what the options are. 

Be warned: borrowing money from a private individual carries risks!

Now that you are an independent earner, it is time for that cool car that you have been yearning for. But you need a loan for that. Unfortunately you only work, so you don’t have to try it at the bank. Suppose your parents want to lend you that, then you are out of the fire. But is that a good idea?

Borrowing money from a private individual means that no financial institution is involved. For example, it could be your brother, a good friend, or your partner who borrows the money. However, there is a greater chance that you will borrow too much if you know the person well. If you are an only child, there are few clouds in the sky, but you may have a brother and sister. Do they find that a good idea? Maybe they also want to borrow money from mom and dad, but they can’t provide credit to 3 kids. This can cause a lot of unrest within the family, and that is the last thing you want.

Private loan

Private loan

You can also get a loan from a private individual by checking the advertisements in the newspaper. Private individuals offer loans therein. However, there are serious risks associated with both parties for both parties. For the person who lends you the money, the risk is mainly that you cannot pay off the loan, that is clear. But for you as a recipient there can be hooks and eyes to such an action.

First, you need to study the borrowing behavior of the unknown provider. For that you have to dig through the internet to see what the comments of other borrowers are. Quite time-consuming. In addition, a watertight contract is of great importance. This must be drawn up by the notary and can cost a lot of money. In the case of borrowing money from a private individual, the interest is usually also considerably higher than in the case of banks and other lenders. This is because no checks are made on any previous loans you have taken out, and because the lender is taking a risk with regard to the repayment. He doesn’t know you.

Which lender?

Which lender?

There is another type of lender than your parents, the stranger or the bank. These are financial institutions that only specialize in loans. They are in possession of a license issued by the Belgian government, and therefore have permission to grant you a credit. Because there are so many providers, you can quickly determine on your laptop who is offering you the cheapest credit (tip: the lower the APR, the cheaper the loan is usually). Click on the provider and request a free quote via the loan simulator. You enter some data, such as the amount and duration, and within 2 minutes you know what your monthly payment will be. So it is a lot safer than borrowing money from a private individual, and it gives a mature feeling to just arrange it in your uppie.

Need money? Everything you need to know about online credit applications!

There can be many reasons for which you suddenly need money. This way your freezer can suddenly indicate the brig. And that is a problem if it is completely packed with cold cuts and blanched vegetables. The value of your frozen food can run into hundreds of USD, and you don’t like to see it spoil just like that. You might spend a while with the neighbors on either side, but it’s important to purchase a new freezer as soon as possible. Unfortunately, this month you are just tight, so what now?

You can request a loan for these types of accidents. 

You can request a loan for these types of accidents. 

For a freezer it is usually not more than a thousand USD, so the money is often within 2 days – and sometimes even 24 hours – in your account. The other extreme is to purchase a home. These are long-term loans, so the bank or lender needs certainty that you can pay off the loan. You must therefore be able to submit documents that guarantee that the payment is feasible for you. Between these 2 examples there are many other types of loans for many other amounts. Before you take out a loan, find the cheapest provider first.

Of course you want to keep as much money as possible in your pocket. And that is certainly possible, but you have to do your homework and compare the lenders. We have already tabulated a number of cheap providers. So you probably have a starting point if you need money. Make sure you can handle the monthly repayments, so first make an overview of your income and monthly costs. Really everything that has to be done and what you cannot do without must be included as a cost. Lenders have made it easy for you by offering you a free simulation tool on their websites. You can use this to calculate how much your monthly repayment will be.

Compare small loans

Compare small loans

For relatively small loans you only have to enter the amount and duration. Within a few seconds you already know what to pay. If you found the cheapest loan for them, you can often take out the loan online immediately. If it concerns a home loan that is not very high or does not have a longer term than 10 years, you can also arrange that online. You simply send the required documents online. But you can also already calculate large mortgage loans with a long term. You will have to pay a visit to the bank or financial institution, but you will certainly be well prepared, so no one can fool you.

So compare various providers and pay particular attention to the APR – that is the interest and borrowing costs per year that come on top of the loan. Every provider is required to state this clearly on the website. The lower the better of course, because you are looking for the cheapest loan. You see, if you need money, you can often arrange this easily online. It’s that easy.

Current Assets A Way To Accelerate Business Growth. | Business Loan

Current assets and their shortage are an essential factor faced by practically every Latvian company in carrying out economic activities. Unless you are a 100% prepayment retailer, you are in a situation where you have to pay suppliers for supplies of raw materials, service providers for utility bills, employees for work done, timely taxes, all of which are current assets , in turn, sales revenue from the sale of the product produced will only be generated over time. How long can it be that current assets and their circulation have a positive impact on a company’s business? – it depends on a number of factors: the production cycle, the terms of payment with the final buyer or wholesaler and, of course, the discipline of the debtors.

For example, if you ship your products to supermarket chains, you will normally be offered postpay within 30 to 60 days, while suppliers, especially foreign companies, will usually require a 100% prepayment. In this case, the working capital must be financed from the capital of the company or raised from outside. If the specifics of production technology are such that it takes weeks or even months to produce a product or service – often the resources invested in the production cycle are only profitable after 3 to 6 months or even longer and the company is experiencing a shortage of working capital. What to do? Good Finance solutions will offer the best option for financing working capital with loan companies or raising finance for company capital. 

Current assets and their effective financing are key to the success of a company

Current assets and their effective financing are key to the success of a company

It is good if the company is stable and grows gradually, steadily increasing production, relying solely on its own internal resources – current assets, provided that its operations are not affected by seasonality and other external circumstances, but that debtors pay on time. However, such an ideal situation is rather the rare exception. In practice, current assets and their scarcity and need for funding are influenced by many different objective factors, including:

  • long production cycle and low profit margin (or profitability), which prevents the necessary working capital accumulation in the short term;
  • seasonality factor;
  • long delivery time of raw materials and / or finished products;
  • long post-payment period.

In addition, there may also be unexpected circumstances in which a shortage of working capital arises unexpectedly and needs to be resolved just as quickly, otherwise there is a risk of loss or even loss of a good customer or prospective outlet. One of the most common and painful reasons to raise working capital financing is a new order that the manufacturer is unable to fulfill because he cannot afford due to a lack of working capital. Other adverse events that may cause an unexpected and acute need for working capital are, for example:

  • damage to production equipment, machinery or vehicles;
  • late payments from major debtors;
  • rise in raw material prices, etc.

Undoubtedly, as one of the possible solutions, the entrepreneur thinks of attracting bank financing to finance working capital. However, there are times in the past when banks provided loans to entrepreneurs as a lifeline for almost everyone and mainly for working capital financing. Even if you are ready to mortgage real estate, the credit institution will carefully evaluate you and your business capacity. Due to tighter supervision of the banking sector, as well as the banks’ own prudent credit policies in the post-crisis period, consideration of the application for “Working Capital” will take time and may result in denials, especially if:

  • the company is new, does not have a positive credit history and has no historically verified, demonstrable income;
  • there have been negative credit history in the past;
  • the product manufactured is specific or the outlet is too narrow;
  • from the subjective point of view of the bank specialists, the company operates in high risk conditions;
  • the collateral is inadequate, difficult to assess or lacks a self-investment.

Good Finance Financing “Working Capital” offers a friendly and reliable alternative to raise finance or credit for businesses. We will save you time and therefore resources! Why Good Finance Funding for “Working Capital”?

Good Finance Financing "Working Capital" offers a friendly and reliable alternative to raise finance or credit for businesses. We will save you time and therefore resources! Why Good Finance Funding for "Working Capital"?

  • the best credit specialists and the individual approach – there are no sectors or situations where the provision of “Working Capital” financing is denied unless the need for credit and the potential for development are justified;
  • Working capital financing simple and at no extra cost – all you have to do is fill out an online application and send it electronically without having to pay for an application;
  • Quick review of Working Capital Funding – by submitting all necessary documents, the decision is made within one business day and depending on which bank you have a current account with, you will receive the money on the same or the next business day;
  • Depending on the specific situation, the Collateral may not be required or at a reduced amount;
  • longer working hours and free credit specialist consultation by phone or email;

Working capital financing has friendly interest rates:

  • flexible loan term;
  • there are no penalties for early repayment;
  • the possibility of granting a credit holiday at an interest-only rate;
  • discounts for loyal customers.

Need a loan? Just compare! The cheapest offer right here!

 

As a young self-employed person you think it’s time for a car. And as a father you need a larger car, because there will be family expansion. Or maybe it’s just a good idea to replace your old car; the repair costs for your elderly container are starting to become very expensive. Fortunately, the time has passed that you have to save for years to purchase a car; nowadays you can take out a loan. As long as you have an income, you can immediately enjoy your new wheels.

Did you know that there can be many differences between the various loans? 

Did you know that there can be many differences between the various loans? 

And this does not only apply to the example above. Whether you buy a house or need a new freezer, every money provider has its own rates. This means that you have to plunge into the internet to find the cheapest providers. So you have to compare your loan. Because we know that you are busy, busy, busy, you can already find a list of the cheapest loans here.

There are a number of factors that you should take into account when you borrow. First you make a calculation of your income and expenses. Expenditure includes everything that you have to pay, such as water and electricity, insurance, food, rent, gas costs and so on. This also includes things that you cannot hear outside. For example, think of sports and hobbies. Once you know what you are left with, this can be your loan amount. But beware: there are some costs.

A provider also has to eat, so you will have to pay something to receive a loan. But of course you prefer to pay as little as possible; The cheaper the loan, the more money you have left at the end of the month. You can compare your loan by first looking at the annual percentage rate (APR); This is the annual interest that you pay plus the borrowing costs. The lower the better. Even a minimal difference can save hundreds or even thousands of euros at the end of the ride – depending on the loan amount and duration.

The latter – the term – also has an effect on your monthly payment.

The latter - the term - also has an effect on your monthly payment.

It is best to pay off the loan as quickly as possible, but a home loan is usually taken out over a good number of years. You do have to have room to live, so sometimes it’s better to pay a little longer. It is therefore completely dependent on your personal situation. Also check the provider’s license; the Belgian government gives licenses to reliable lenders.

You can compare your loan with the help of loan simulations. Almost every money provider has this tool on its website, and you can use it for free. You can perform as many simulations as you want. In this way, a good picture is created of the differences in monthly repayment. This way you can quickly see who offers the best rates. So sit down and take out the cheapest credit.