Category: Finance

Financial Options Other Than A Bank

Today one is looking for an alternative way of funding and people do not want to raise a loan through the traditional methods. Thus there are alternative sources of funding that are creating demand and people are looking at them as compared to depending on a bank for their financial needs.

Alternative funding sources became popular after the 2008 crisis when a number of banks failed. The consumers started to accept the alternative ways to fund their requirements. These are basically peer-to-peer lending and this is seen to be the future of banking.

Equity-based crowdfunding

This is useful for companies that are a start-up or just in the niche stage. The companies offer equities in return for money. The company thus does not have to enter the primary financial market. The crowdfunding platform is a middleman between the investor and the company.

So instead of taking bank loans or approaching a venture capitalist, many companies are now directly approaching the equity methods to raise loans.

Peer-to-Peer platform

The primary source that companies resort to is banks in order to raise working capital. But banks want collateral which becomes difficult for the small companies. Also, the banks charge a high rate of interest to small companies because these companies are considered to be risky.

There are however many online peers to peer sites that connect the borrower and the lender and thus eliminates the cost of an intermediary. The borrowers get access to money at a lower rate of interest and without keeping any collateral. The investors on the other hand who have an excess of cash that is lying idle, agree to invest in a business and reap the benefits.

Loan sharking is big business and most startups and small companies are looking for alternative ways to raise a loan amount instead of approaching the traditional banks.

How to Get out of Debt in 5 Steps

If you are reading this, you need help. To stay clean of debt just managing money is not enough. Even if you are good with money, accidents or sickness may strike any time and leave you thousands of dollars in the hole.

You cannot prevent debt, but there are things you can do to curb how it affects you financially.

1.    Make a practical budget

It may be difficult to pin down where, what fraction of money drain is happening. This is why you need a budget. A realistic one. Estimate your housing, commute, health care and grocery expenses. You will be surprised how low your estimate is from what you are actually spending. This is where you come to our next point.

2.    Eliminate unnecessary expenses

Stop going out to fancy restaurants, the frequent drive-through, and late night binge shopping. Kept unchecked, you could be spending more money than your actual food budget on these unnecessary expenses.

3.    Lower your rates

High interest rate will only mount on your existing rate. Connect with your bank, if you have good credits, you will be eligible for much better interest rates. Do a loan consolidation to get a better rate.

4.    Increase repayment percentage

If you are putting 10% of your salary towards repayment or debt, make a budget and see how high you can push it. 15% to 20% will reduce your overall paid interest in the long term and save you thousands of dollars.

5.    Contact a trust deed

Trust deed Scotland are an excellent way to keep your property as a maintainer, while a trustee holds them for the benefit of your lenders. You can keep paying off while you don’t lost your property. Trust deeds only claim ownership when you fail to make repayment.…