Best Finance Network
Get the best connectivity about finance.

If you are wondering how you can improve the chances of getting a car financed then this article has got you covered with the details.

Any further you need to realize that why your car finance gets refused. l one of the main reasons is your credit score. If you own a bad credit card loan score then this will be the reason for a refusal. The lender will scan through your history to see whether you are trustable or responsible enough or not. If your history reflects multiple late payments or any missed payment then this is not in favor of your credit card history and it can seriously negatively affect your credit cards.

Many a time the refusal is also due to no history. If you own little history in the credit card then lenders will be reluctant in offering you car finance loans. Remember that with no credit card history it becomes hard for the lenders to decide whether you are a good candidate for loans or not and most likely they pass on.

But don’t worry there are certain measures which you can take to Boost Your chances for approval. There are a few ways through which you can improve your chances of getting your car finance despite your bad …

Let’s speak into the details below. If you truly need to boost chances of getting approved then you need to scan your credit card file carefully. You don’t have to invest anything as this checking is completely free. make use of a referencing agency like Equifax. There are a few things that you need to check in your credit file.

Accurate Information Information

While scanning your credit file ensure that all the information is not only up-to-date but also accurate. Bear in mind that a minor error in your address can negatively affect your credit score. No matter how small the mistake is, you need to spot it and contact the agency directly for fixing it as soon as possible.

Fraudulent Activity

After checking for the accuracy you need to spot anything which looks fishy. If anything looks fishy you just need to contact the agency for correcting that unfamiliarity. There can be a possibility that anyone else had applied for the credit on your name before.

Disassociation

You need to detach yourself with any financial link that has a potential of harming your overall credit file. There can be a possibility that you have taken a Credit with your partner in the past and this can impact your credit file quickly. So you need to see whether you’re still on Active finances with those financial links if not then go with the disassociation option..

Paying Bill

After checking for all those details in your credit file you need to take some annual action for improving the overall bad credit loan. For instance, you should pay your bill on time.

This might sound a very simple option but many people are not availing it for benefit.
If you will be paying your bills on time then lenders will have confidence to trust you and they can count you as a responsible person to pay back their car finance loans.

The reason most entrepreneurs set up in business is, at least partly, to make money so financial management is a crucial skill which all new business owners or would-be entrepreneurs need to learn if they want to be successful.

However, managing finances isn’t always a skill which comes naturally to many. Entrepreneurs tend to be focussed on their big idea and making it a reality, but the money side isn’t necessarily where there energies are naturally directed.

While you can always outsource your finances to a professional accountant to a certain extent, you still need to know and understand your numbers to enable you to spot any issues or trends which you might need to address within your business.

Here are five tips for new entrepreneurs to help with financial management:

1. Record and organise your finances

Whether you are managing your finances yourself or supplying all of your information to an accountant to deal with, it’s important to be organised and keep records of all of your income, outgoings and expenses.

This includes keeping copies of all your receipts, invoices, and any other paperwork related to financial issues, in an orderly fashion. Just putting them all into a shoe box won’t cut it when you are an entrepreneur.

Just using a simple spreadsheet to record income and outgoings can be enough to start with, when setting up a new business, or as the business grows you might need to invest in accounting software to help record all of the financial transactions.

2. Keep track of your credit score

As an entrepreneur you might well need to seek funding for your business either to start it up at the beginning or further down the line to help with an expansion of your services so make you’re your credit is up to scratch.

The last thing you want to do is start a business only to find your credit score or existing level of debt means you can’t get the funding you need to grow the company a few years down the line. Take action to improve your credit score ideally before you start out.

3. Have an emergency fund

While setting up a new business often involves expense rather than profit initially it’s still important to make sure you have money put aside for an emergency – you might need to suddenly buy new equipment or replace a computer for example, so try saving an emergency pot to help take the pressure off.

You can create the fund easily by putting a small amount aside every week so it needn’t be too taxing to save enough to help keep as a buffer. You never know when a client might not be able to pay you or a supplier might go bust so an emergency fund can be the difference between success and failure.

4. Seek professional advice

If you are brand new to business then don’t get daunted or overwhelmed by all of the financial obligations or requirements. If the finance side is beyond your knowledge then don’t bury your head in the sand but seek professional help.

Whether you hire a full-time professional accountant or use the services of a part-time book keeper they can both help and provide expert advice to guide you as you take your business forward as well as looking after the books. You can even make it easier for you by signing up for accounting services offered by companies like Crunch. You can find out how they help small businesses here.

5. Set short-term and long-term financial goals

As well as knowing and understanding your business numbers you should set financial goals for the business to achieve as well. Have short term goals for what you want the business to achieve in the next month, the next quarter and the next year.

You should also have a longer term forecasting tool to predict the income you expect to bring in over the next year to five years, to help make sure you keep your business on track and meet all of your income goals.

As well as your business goals you should also set savings goals which allow you to have enough put aside to pay your tax contributions every year so you don’t get caught out with a big bill at the end of the tax year and nothing to pay it with.

Conclusion

Financial management is a key element to running a business and is a skill which every new entrepreneur needs to learn if they are to be successful in the corporate world. No business can survive if it’s not financially viable.

There are few tips here to help make financial management easier to cope with but if financial management really is beyond your skill set then you should always seek professional guidance and advice to make sure your business can still thrive, leaving you free to focus on the aspects of entrepreneurship where you are strongest.

If you’re taking out your first online personal loan, it probably means you don’t have a credit history or a credit score. This doesn’t however hold true if you’ve had or currently have a credit card (if you’ve had a credit card in the past, you’ll have a credit score). Lenders use your credit score obtained from your credit report to understand how good you’ve been at managing credit in the past. Personal loans are unsecured loans that don’t involve collateral, and usually come with a higher interest rate in comparison to secured loans. This is precisely the reason why having a good credit score is important for your application to get approved.

Let’s forget the credit score part for now. If you’re a first timer, here are some things you should note before taking your first unsecured personal loan:

Know the various charges involved

Personal loans come with a list of charges that include late payment charges, EMI bounce charges, processing charges, pre-closure charges, and part-payment charges. When you’re taking out your personal loan for the first time, make sure you are aware of the various charges. It is of course, always good to be aware about how much lenders are charging you.

Choose a short repayment period

Choosing a short repayment period helps reduce the interest payment over the course of your loan tenure. Longer tenures attract higher interest payments, but lower monthly repayment amounts. As your first loan, you wouldn’t want to pay too much interest, do you? However, if lower monthly repayments suit you, you should go ahead and choose a longer tenure, for you can always pre-close your loan after a certain period. Note that most lenders require you to complete a minimum of 6 months or 12 months of your tenure before you can pre-close.

Don’t borrow more than you need

Your approved amount might be higher than what you asked for – lenders use this tactic to make you borrow more. Don’t fall for it thought. Borrow only how much you need. Borrowing more than you need is just setting the platform for unnecessary debt accumulation.

Negotiate the interest rate

Negotiating the rate with the bank will help you get a lower interest rate on your loan. Moreover, if you don’t have a credit history, there’d be multiple lenders in the market willing to offer you a loan. Going by this logic, it is advised that you negotiate the interest rate on your loan to get a reduced rate.

Don’t apply with multiple lenders

Applying with multiple lenders negatively affects your credit score. Too many credit inquiries reflect credit-hungry behavior, and lenders can reject you on the basis of this – rejections bring down your credit score as well. So for starters, make sure you apply with only one lender.

When you run your own business, staying in touch with the times isn’t just a good idea. It’s a necessity if you’re serious about succeeding. This is especially the case when it comes to the payment options you offer your customers. Cash and checks are becoming less and less common by the day. In fact, many consumers don’t even carry them anymore. They simply assume they’ll be able to use their credit or debit card wherever their day happens to take them.
In other words, you need a merchant account if you want to stay relevant. If you’re not willing or able to offer your customers the convenience they’re looking for, you can bet your competitors will be. The good news is getting a merchant account isn’t nearly as complicated or difficult as you may think it is. Let’s go over a few of the most commonly held misconceptions about the process and address the truth behind each one.

1. Merchant accounts are too difficult for certain types of businesses to get.

Back in the early 2000’s, ecommerce was a relatively new concept. Not only were consumers not yet used to doing the bulk of their shopping online, but the entities in charge of granting merchant accounts weren’t sure what to make of it either. It didn’t exactly help that the only real way to set up a merchant account was to go through a traditional brick and mortar bank. There were certainly a lot of hoops to jump through if you were in ecommerce or ran any other business that could be considered high risk.

These days, that’s no longer the case. To begin with, there are lots of different merchant account providers to choose from when you’re ready to open yours. Many of these specialize in setting up accounts for small businesses or ecommerce companies.

Also, the requirements attached to the process are relatively easy to satisfy. For instance, registering your business as a sole proprietorship instead of incorporating is a great option for self-employed service providers. Modern business bank accounts can be obtained with little hassle and at a very low cost. Even registering a business name is pretty simple and inexpensive. You don’t need much else to qualify for a merchant account here in 2017!

2. You can’t get a merchant account if your business is a start-up.

Traditionally speaking, a bank sees a start-up business similarly to the way they’d see a person with no credit history. Although there’s no tangible reason to think that business isn’t a good risk, there’s no positive track record to definitively prove it is one either. In the past, this made getting a merchant account notoriously difficult if your business was still just getting started.

Today, people are more entrepreneurial than ever and many merchant account providers recognize this is a chance to connect with an emerging market. Some of those providers actually specialize in working with smaller, newer, or independent entities. They pride themselves on their ability to provide personalized service, strong client relationships, and unique solutions designed to help start-ups succeed.

3. The application process is always difficult and confusing.

In actuality, the application process could be difficult if the criteria attached to your unique business are very complicated. However, in most cases and for most businesses, the application process itself really isn’t that daunting or complicated. The key to success lies in making sure you select the right service provider.

A good merchant account provider that’s right for your business will pride itself on simplifying the application process for its would-be clients. Many allow you to begin the process online by entering basic information about your business via a web form. They then use what you’ve told them to prepare the correct documents for you. All you need to do is read them, sign them, and return them along with anything else you’re asked to send (i.e. a void check).

4. Merchant accounts are expensive, both to set up and to maintain.

Here we have another myth rooted in a distant past when ecommerce businesses still weren’t understood or accepted as a valid concepts. This meant they were almost always considered high risk ventures by default and high risk often also means high cost.

These days, all sorts of people are in business for themselves and the fees associated with having a merchant account often reflect that. Many account providers provide options that don’t call for set-up charges or continuing monthly fees. Instead, you pay a small fee each time you actually process an associated transaction – perfect for very small businesses or sole proprietors that only process credit card transactions occasionally.

In other words, there are options out there that were designed with your business and budget in mind. You no longer have to be a big corporation or a large company doing lots of volume when it comes to credit cards to benefit from having a merchant account.

5. It takes forever to receive funds attached to a credit card transaction.

Back in the day, it wasn’t uncommon for credit card processing agencies to deliver a merchant’s deposits once a week or even once every other week. The perceived risk attached to a given transaction was a lot higher then. Holding onto funds a little longer gave that processing company a bigger buffer against possibilities like chargebacks, fraud, or merchants that closed their accounts while still owing service fees.

The more common credit cards, debit cards, and the like become as payment options, the lower the perceived risk of such transactions. Here in a day and age that finds most consumers using credit or debit cards to complete their everyday transactions, processing companies are often on a daily (or near daily) deposit schedule. Depending on where you bank and who you work with as far as credit processing, you’ll probably see funds hit your account within 48-72 hours of the original transaction.

If you choose the right merchant account provider, you’ll have some choice as to when and how often you receive your deposits though. Most business owners do prefer to receive daily deposits, but if you actually prefer weekly deposits instead, that can be arranged.

6. Establishing PCI compliance is also difficult and expensive.

If you’re exploring the possibility of opening a merchant account, you may already be familiar with the concept of PCI (Payment Card Industry) compliance. The term refers to the standard every merchant needs to meet in regards to data security if they’re going to accept credit cards as payment options.

The cost and effort required to continuously meet that standard can be complicated or costly… for some businesses. For others, this is hardly the case. For instance, you’d expect a really big retail company like Macy’s or Wal-Mart to have more different tech requirements to meet than an independently owned dress boutique across town. You’d also be right to expect that. What is often super involved for a large business is usually pretty simple for a small one.
Again, your choice in merchant account providers can really help you here. Look for companies that go out of their way to educate clients about how to achieve PCI compliance and make the process simple. Many are happy to provide individual clients with additional help or advice if needed or desired as well.

7. Processing rates are the only factors that are important.

Ask a business owner that still isn’t accepting credit or debit cards as payment why they do things that way and they’ll probably tell you they don’t want to waste money on processing fees. They assume they’re being smart and saving while money is actually walking right out the door in the form of dropped sales and lost business. It’s not uncommon for such business owners to assume processing rates are all that matter when it comes to a given merchant account option.

As you would when opening any other kind of financial account, it’s important to look at the big picture which includes monthly minimums (if there are any), possible cancellation fees, and setup fees. Sometimes additional fees are charged for online access or changes made to your account as well, so make sure you’re looking at your final tally when evaluating options.

8. One merchant service provider is as good as another.

Just as there are lots of different ways to price merchant services attached to an account, there are lots of different providers out there. Some will be better fits for you than others. Some specialize in working with specific types of merchants like non-profits or businesses in a certain industry. Some focus on customer service as a selling point while others may offer clients free equipment, flexible rates, or other incentives.

Just take the time to carefully evaluate each of your options from top to bottom. No matter what business you’re in or what your needs are, there’s a merchant account provider that’s just right for you. Explore the possibilities today!

MobiusPay specializes in high-risk merchant activation, domestic and international processing. MobiusPay helps online businesses with payment processing, high risk merchant accounts, chargeback & fraud prevention, online check ACH processing and with maintaining PCI compliance. Please visit https://mobiuspay.com/ to learn more.

Business loans are leverage to help your company grow. You can expand in ways otherwise not possible. Business lines of credit improve your cash flow to meet expenses and pounce on opportunities. Meanwhile, equipment financing boosts productivity to meet customer demand.

There are common questions to ask before applying for any business loan. Your chances of approval and ROI will improve with a basic checklist. Being realistic and organized also saves time, which is your most precious asset.
Here is a business loan checklist to consider:

Have Documentation Ready:

Organizing your financials is important for loans or otherwise. A periodic review of your statements gives insight to make informed decisions.

Assume that business lenders will ask for the following:

• Previous 2 years of Business and Personal Tax Returns
• 6 months of Bank Statements
• Current Income Statement
• Balance Sheet
• Business and Personal Credit Checks

Best Practice: Ask upfront what paperwork is needed. Providing excess paperwork can slow turnarounds and raise questions. However, having docs ready often has the opposite effect.

Connection between loan and financial review: A restaurant may notice that capital equipment no longer has useful life, in accounting terms. The loss of a write-off (depreciation expense) plus the need to make more food may show the need for equipment loans.

Similarly, youmay notice that a single company accounts for most of A/R. To improve cash flow, you may apply for a business line of credit and renegotiate terms with the client.

Understand the Lending Criteria Upfront:

You can spare time, fees and frustration by knowing what is needed to qualify.At minimum, get a sense of how likely it is your loan will be approved. If you’re a startup and 2 years of business tax returns are required, simply ask about alternatives. A good loan officer will refer you to other lenders who can help.

Be Realistic and Know Your Strengths:

What makes your business a strong loan candidate? Think in tangible terms of what can be documented and proved.
How profitable is your company? Banks like lending money to leverage as growth, rather than last ditch efforts to stay afloat. Businesses have different strengths. A manufacturer may have collateral in terms of equipment, or you may have stellar personal credit to get a business loan.

Know Your Alternatives:

As small business lending expands, loan options for those with challenged credit or unique needs has become more available.

If you were denied, determine the reasons for this. Was it lack of business credit? Your industry? (Bars or nightclubs can be difficult to finance) Not enough business history or income? You can find suitable alternatives based on the answers.

Alternatives:

Business Credit Cards: A business credit card is often easier to qualify for than a LOC. The credit limit is likely smaller, but you establish business credit history for future line of credit needs. Your strong personal credit may qualify for a business credit card. The card will be under your business Tax ID, but backed by a personal guaranty.

Equipment Loans: Capital equipment loans reduce concerns over collateral, which makes qualifying easier. Restaurants, manufacturers and offices may all turn to equipment financing.

Business Cash Advances:An alternative if you don’t qualify for lines of credit or credit cards.

Industry Specific Financing: Lenders who specialize in specific industries may offer options. Bar and Nightclub loans or medical financing are examples.

Best Practice: Ask if there are prepayment penalties, in case the loan is no longer needed or refinancing options become available. It is important to understand fees, interest rates and terms for all loans.