It's best to look for other sources that can help you reach your business goals, so take a look below at some of the alternative methods of fundraising you can do.

Consider the Assistance from Angel Investors

These retired business gurus or successful entrepreneurs can be your ticket to salvation when you need funding. They are people who take a keen interest in your work and activities, making them huge supporters who want you to succeed and grow. Also, they can offer their advice and business expertise to make you a better player in the market.

Not your Average Loan 

When people think about loans, they consider personal or business ones, but no one would ever expect to get funding from your inheritance money. Some owners have a lot of money coming in but the probate process gets delayed and drags. That's why loans for heirs can be very appealing when you want quick funding for your startup or company. You get a considerable amount of the money entitled to you, and you can pay the debt off when the courts finally issue your money.

Have You Thought About Crowdfunding?

This is a good way to utilize the digital world to your benefit. There are several reputable platforms with different investors that can provide you with the money you need if your business activities pique their interest. Countless investors are on the lookout for decent companies that offer something special and useful to the community, so investing in your company can be beneficial for them, too.

So, if you are looking for such crowdfunding, arrange a Meeting of investors and venture capitalists at a club. This will be really fruitful for you

You Could Go for Factoring and Invoice Advances

This can be very handy when you find a provider that can front you some money on the invoices that you’ve already billed out; it's good for companies that constantly provide products and services to customers, and you will pay it back once your customers have paid the bill in full. It's a simple method that keeps your business running and projects operating without waiting for long periods of time for consumers to pay up.

Consider CDFI Assistance When Nothing Else Works

This stands for Community Development Finance Institutes. They are private financial organizations that deliver affordable lending options, making it very easy and advantageous for many businesses that are in need of quick funding to save them from tight situations. Many businesses don't get a chance to thrive or grow because of restricted money-raising methods, so this can be the answer to their capital needs to fund their business.

Managing your finances can be a little tricky, but with the right mindset and the willingness to find better and reliable sources for funding, you can make a huge difference in your company's success. You can't just sit there and wait for your company to crumble; choose the right path for you and get the best funding that suits your needs and goals.

Many people are resorting to investments because they started to realize that living paycheck to paycheck just won’t cut it anymore. The problem with deciding to take that step is the fact that you’re going to need some money in the beginning, which isn’t always easy. Your best choice is usually trying to get a loan, but a few complications come with that option. Whether you’re trying to get a loan to start a business or to pay off your mortgage, bad credit history will always stand in your way. The question is, can you still get a loan in that case?

Can you get a loan with a bad credit history?

It’s possible, yes, though it’s definitely not easy. Having bad credit history doesn’t mean you’re a bad person. It’s a financial strait that many people find themselves in and it’s a tough jam to get out of. You need a loan to get out of that closed loop, and there are sources from which you can get one, even if you have bad credit history.

Friends or family

Yes, your first approach to getting a loan with your bad history is going to friends and family. It doesn’t always work, but if it does, you should definitely take advantage of this window because chances are your friends and family won’t charge you high interest rates, if they even did. You need to come up with a sound payment plan that ensures that they will get their money back in a period of time on which you’ll both agree. It’s very important that you make them trust that you’ll pay all the money back in a specific period of time, so they’d feel comfortable lending you the money you need to get out of your financial strait.

Loans

Now that the easy option is out of the way, is it possible to get a bank loan or one from a lender with your bad history? It isn’t easy, but it’s definitely possible. You’re going to have to do some things, though, to qualify for a loan. These are some tips and things you need to keep in mind because they might just get you that loan you desperately need.

1.    Get acquainted with your finances

You can’t possibly hope to get a loan unless you know the ins and outs of your personal finances, down to the tiniest details. Get acquainted with your accounts, what’s in them and how the cash flow has been moving over the past few years. You can start doing that by checking your credit reports, which is a crucial first step because that’s how you start figuring out your credit score. If there are any special comments in your report, you should try reaching out to whoever put that remark to have them remove it before you apply for a loan –– because it does make a difference and comments like these will be taken into consideration by the lender.

It’s also very important that you learn your credit scores as well as your debt to income ratio, because that is how you can start figuring out a plan to improve your score history to get back on your feet successfully.

2.    How you can improve your credit history

Now that you’re well acquainted with your credit history, it’s now time to start applying certain strategies to improve it. The first thing you have to pay attention to is the payment history. Yes, a lot of factors are taken into consideration in your overall score, but payment history is the most crucial and delicate one. So, you must make sure you pay the upcoming payments on time. Forget about what happened in the past, and focus on the future ones to ensure you never miss one.

Contrary to popular belief, closing old accounts is not always a good practice. Why? Because those old accounts that you’ve already paid off open can help increase your credit history length, and it could give you a lot more solid grounds to stand on when you’re applying for the new loan.

One thing you have to be careful about is your credit limit. It is always best that you keep the ratio between your debt and your credit limit reasonable. The less that ratio is, the better, naturally. This is important because it’s a very bad sign if that percentage is high, and it would show many lenders that you’re not very wise when it comes to your finances and it might sway them from giving you a loan.

Speaking of credit, you should never open new credit accounts unless you’re 100% certain you could take care of them and pay them off on time. Randomly and excessively opening credit accounts shows lenders that you’re not very responsible, or worse, it might make them think that you’re running a scam. This is why it’s very important that you keep this to a minimum, and only open new accounts in the case of emergencies, and if you’re absolutely sure you could handle them.

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3.    Understand your options

After doing your best to improve your credit score, you next want to start looking for a suitable lender that can give you what you’re looking for. But there’s one more thing you need to do before taking that step, and that is understanding your options when it comes to loans. The two most common types are unsecured and secured loans.

Unsecured loans might be a bit problematic if you have a bad history, because they basically charge you a higher interest rate because of your situation –– and that is if you managed to obtain the loan in the first place. An unsecured loan is basically one that you don’t need collateral for. You can use them to cover emergencies or take care of another debt you found yourself in.

Secured loans, on the other hand, are protected by a collateral like home equity or any other assets. The good thing about this is the fact that they come with lower interest rates, but you do need to have a collateral to get a secured loan in the first place.

4.    Find a co-signer

This is one of the best strategies that could help you land a loan. A co-signer is someone with a healthy credit score who would sign the loan with you, which will make your chances of getting it exponentially better, not to mention the fact that it’ll also probably land you a lower interest rate as well. Your chances are always better with a co-signer, and if you have someone willing to help you with that you should definitely get them to do it because it’ll make a lot of difference.

5.    Find the right lender

Now that everything’s in order, you need to start looking for the right lender. This step will require a lot of research on your end, and it’s important that you be diligent with it because it makes all the difference in how this entire process will pan out. Don’t just go for the first loan that approves you; wait until you look at other options so you could have a clear picture.

You want to find a lender that would give you the personal loan you need for the lowest interest rate possible, and the best loan term. Each will have their own policies and evaluation process to determine just how much risk comes to lending you money, because loans for those with bad credit are associated with a risk factor for most lenders and they don’t hand them out like that. You need to keep all those points in mind because you might need the money urgently, for instance. So, do your homework and research the hell out of every possible lender you can find online, and you are going to find plenty.

Other options

There are other options that you can resort to if you want to get a loan with your bad history, but they might come with higher interest rates in some cases. For instance, in title loans, lenders rarely care about your bad credit, and you could easily use your vehicle as collateral to get some money, but it’s a short term loan and the interest rates are usually a bit higher. So, keep that in mind if you’re considering getting a title loan. Another good option for is credit unions, which particularly specialize in offering loans to people who have a bad credit history, and you can easily find local options to help you get out of your jam. The great thing about credit unions is the fact that they have an interest ceiling which applies to everyone –– 18%. That is a great percentage and it’s around half of what a bank would offer you for a similar loan with your bad history.

There are other options that you can resort to if you want to get a loan with your bad history, but they might come with higher interest rates in some cases.

What the cons of loans with bad credit are

1.    Higher interest rate

You can get a loan even with your bad history, but you’re going to have to pay higher interest rates than usual because of your special situation. Banks and lenders usually take advantage of your need for money –– and to be honest, they’re trying to be on the safe side, considering your bad history and the fact that you’re at risk –– so they impose higher interest rates, which means you’ll pay a lot of money in the long run. You need to keep that in mind before applying for a loan with bad history so you don’t get surprised when it does get approved.

2.    They take time

Some of these loans with bad history could take quite some time to get processed, a bit longer than your average loan. Sometimes it’s because they’re double checking your history and thoroughly going through your finances or any other details, but it might not be the best option for you in case of emergencies.

3.    Penalties

You have to make sure you’ve read every detail of your agreement with the lender, because sometimes there are extra fees or penalties that you might be subject to without even knowing it. Ask if there is a loan origination fee or any other hidden fees, and whether or not they have penalties for being late and just how much those penalties are. There are even some lenders that impose a penalty if your payments are made by check! So, it’s important to carefully check those details because the last thing you want in your situation is to pay any extra money that you can’t afford to spare.

4.    The risk involved

You might get asked to include a collateral in the agreement like your car or house, which is a bit risky because if you failed to pay your installments, you might lose the car or the house.

5.    Plenty of shady lenders

You might come across quite a few shady lenders here and there, which is something you need to be really careful about. Some are not licensed and don’t have approval to offer that kind of service, so make sure that you’re dealing with a licensed lender in your state before you pay any money so you don’t end up being scammed.

6.    The temptation of short-term loans

Most short-term loans with your bad history can be too much to resist sometimes. Title loans, paydays, and all the likes might seem very tempting, but they come with a lot of baggage. Their interest rates are higher and they cost you more money in the long run, so that’s definitely something you should keep in mind.

As shown in this article, it is possible to get a loan with bad history. Is it perfect? Definitely not, but neither is your situation. You’ll have to compromise either way to get out of the mess you’re in, but remember to be patient and wait until you get several other offers so you could compare between them and choose the most suitable one for you.

Not surprisingly, a company's collateral base will be a significant if not determining factor in the type of secured loan sought. Start-up and early-stage technology companies (which lack inventory or real estate)  typically seek secured loans in which the company pledges its patent, trademark or other intellectual property assets, while a retail concern may find that an inventory-secured loan is ideal for its business model. In fact, there are a myriad of choices and issues involving securing debt financing and credit advances, and many factors to consider beyond a company's collateral base or just securing a loan with the lowest interest rate.

Further complicating matters, many companies require multiple secured loans; some businesses today seek both a traditional bank loan (which generally involves providing the bank with a "blanket" security interest in all of its assets), with its typical lower cost of capital, and a loan secured by either inventory (also known as revolver) or accounts receivable (typically through a factoring arrangement). A company that does not qualify for a bank loan, either because it lacks sufficient collateral (for example, a service company) or does not have the historical numbers to merit this type of loan, will often look to a revolver (if there is inventory) or a factor arrangement (involving the pledge of eligible accounts receivable) for its working capital needs.

With all of these choices and the need to procure secured debt funding on advantageous terms, here are five strategies for selecting the secured loan that best fits your company’s particular needs and provides for sufficient funds at an optimal cost:

1. Know Your Company.

This may seem obvious, but the importance of really knowing your company, its collateral base, its ability to provide accounting and financial reports and its working capital needs cannot be overstated. Secured loan documents typically contain requirements and terms that, if not addressed, can result in significant damage to the borrower. For example, most secured loans require, within set periods of time, that a borrower must deliver interim financial statements (generally unaudited except for the annual deliverable of an annual audited financial statement), along with "flash" budget reports, cash-flow forecasting and other financial information. If your company does not have the staff or expertise to undertake these delivery requirements, your company will most likely be in default. So too, successful companies understand both the amount needed and timing associated with their particular working capital needs; knowledge that business seasonality can significantly affect cash flow needs at various times in the year may well lead to choosing a secured loan with multiple or interim advances (compared with a term loan facility in which one draw is permitted).

2. Establish Internal Coordination.

Successful companies do not leave the decision as to appropriate financing options to either the chief financial officer or company counsel alone; rather, successful companies adopt a team approach involving financial, operational and legal input primarily because the ideal secured loan has to make sense for both cash flow/financial and operational reasons as well as for legal purposes. Too often, the legal team is only brought in after the loan term sheet has been agreed upon. Consequently, key considerations that can and should be addressed in the decision process, including, by way of illustration, careful consideration of the loan's affirmative and negative covenants, are left for the lawyers. As a result, by not addressing these "boilerplate" provisions at the commencement of seeking secured financing, unsuccessful companies too often find that the loan document legal requirements dictate business behaviour rather than supporting desired business action.

Successful companies recognise that procuring the loan is just the first step in the process.

3. Properly Evaluate Each Loan.

Successful companies understand their loans from both a business and legal perspective, presumably because they have taken the time to properly and carefully analyze and evaluate their options. By way of illustration, a loan's stated interest rate is just one component in pricing the loan. Often, secured loans include a variety of fees and costs separate and apart from the loan's interest rate -- including unused line fees, facility fees, advance fees, prepayment fees and monitoring costs and expenses; some loans also require appraisals, title insurance (if in connection with real estate) and even legal opinions. All of these items should factor into the true "price" of the loan. So too, most secured loans limit certain indebtedness (whether by type or amount). If your company sometimes needs a boost from time to time by its shareholders (in the form of shareholder loans) or requires capitalised leases for equipment acquisitions, which indebtedness may not be permitted under a particular loan offer, you may not want to seek this funding without further negotiations. Along these lines, if your company requires seasonal increases in trade debt to finance additional inventory acquisitions during peak seasons, which additional trade debt is in excess of established debt limits, you may want to rethink the loan absent further negotiations.

4. Prepare a Plan For Growth and Develop Meaningful Projections.

As John Wooden, the legendary UCLA Men's Basketball Coach, once said: "Failure to prepare is preparation to fail". Successful companies plan for growth and develop budgets based on meaningful projections and sensitivity analysis. In fact, most secured loans require some type of contemplated budget; by creating meaningful projections at the outset, a company can stay in compliance with its loan requirements consistent with its budget (based on said projections) and intelligently use the funds generated from the secured loan as a tool for sustainability and possible growth, rather than being saddled with a loan obligation under which the company stands to lose a significant amount if not all of its meaningful assets pledged for said loan.

5. Implement and Monitor Performance and Results.

Successful companies recognise that procuring the loan is just the first step in the process. Secured lenders almost invariably require constant monitoring of performance and results; successful companies generally stay one step ahead of their lenders. How is the company doing against the loan's financial covenants? How do projections look against actual results? What market changes have occurred that may affect the company's bottom line or collateral base? Has the company lost a key supplier or customer?  All of these questions may need to be addressed both internally and, depending upon the terms of the secured loan, with the secured lender. Do not wait until notice to the secured lender is required without at least developing a game plan for addressing issues that arise and need to be addressed. Successful companies continue to challenge their assumptions, evaluate results and take corrective action at the earliest opportunity and certainly before the secured lender learns that corrective action is needed.

Secured loans represent a vital source of working capital for today's businesses, and come in a myriad of forms and types. Although a company's collateral base will almost certainly have a significant impact on the choice of secured loan that works for that company, the ultimate choice of a secured loan that best meets a company's needs should be based on an intelligent and informed approach to secured lending. Simply looking at the lowest interest rate will not work!

But when is it sensible to use a card and when to save? MoneySuperMarket data shows that the usage of credit cards seems to be growing, and have recently conducted a study to identify how much you’ll actually pay on average based on the size of the payments you’re making, the average monthly repayment possible, and the average interest involved as a result.

Alongside the credit card payments, the research highlights how long it would take to make each payment by saving up a monthly average of £352.31 (based on average earnings of £1,827.10 a month, and average expenditure of £1,474.79 a month) – so you can compare whether it’s a better option to save up or to use a card.

Spending and Saving Numbers Crunched

With the average person being able to save around £350 a month, there’s minimal difference in terms of time and total amount spent for a purchase under this amount – whether you’re saving or using a credit card. But the interest does take an effect at higher costs. On a credit card payment of £600, for example, you would on average pay £17 in interest, taking two months to pay it off. At £5,000, the interest reaches up to £931 over 17 months of repayment, against 14.2 months of saving with no interest.

Save for the Suit, Spend on the Commute

The research suggests that while you could save up for a bespoke suit in 2.7 months and save yourself £36 in credit card interest, for a train ticket you might be better off paying on your credit card – as you’ll still have to travel while saving, and the costs of individual tickets is likely to be higher than the £8 you would save in credit card interest.

Can a New Coat Improve Your Credit Rating?

Buying a winter coat on a credit card can be a sensible choice as lower payments that can be paid off immediately, without any interest, will contribute positively to your credit rating.

Even at higher costs, holidays can be a smart choice for a credit card. Despite the average £2,417 spend accruing as much as £208 in interest and taking just over two more months to pay off than to save up, credit cards can provide security on payments, meaning you’re better protected against problems with flights and hotels.

Save for Season Ticket, Spend on the Trainers

More affordable equipment like a mountain bike or sports trainers can be paid off quickly and improve your credit score without accruing any interest, but for a football season ticket, which you can plan to buy well in advance, there’s no significant advantage to buying on card. Instead of paying the additional £27 in interest over three months, you’re better off spending the average £794 after saving up for 2.3 months.

Smarter Smart Phone Buying

A high-end smart phone like the iPhone could cost nearly £50 in interest on a credit card, making saving up the better option. But for a cheap laptop, it might be much lower interest of around £15 or less – and many retailers offer finance options for smart phones and laptops, making it sensible to research your shopping before you buy.

Split the Costs When Getting Together

Weddings are expensive events – so it makes sense to split up the cost as much as possible. Saving up for purchases like the dress and photography, and putting the cheaper payments such as cake and groom’s outfit on credit card, may be the best way to minimise interest payments. Using a card to cover the venue can be helpful as well, as this can protect you against any last minute problems.

Top Tips from MoneySuperMarket

While the study provides some details of smart ways to use your credit cards, some of the top tips include:

• Only make applications for credit cards you think will be accepted or for which you're pre-accepted.
• Use "credit builder credit cards" to improve your credit score.
• Use a cashback card if you're able to pay off your card consistently.

Oxford Economics recently published research titled “the big business of small business”, which states bank lending to SMEs has fallen 3% since 2015. This is in the face of a rise in credit provisions to large companies of 43%. The report states that SMEs are being given the ‘cold shoulder’ resulting in an impact on recovery against small businesses.

Sam Moore, Managing Director of Oxford Economics, says the findings of the research offer a “stark reminder” of “the uphill challenges which small businesses face when dealing with the traditional banking sector”. Although SMEs are responsible for half of all employment in industrialised countries and 50-60% of GDP, the focus of banks is still on loaning primarily to larger firms. A primary factor for this is the “lingering effect” of the financial crisis ten years ago, with the impact it had on the small business lending market still being prominent today.

Why is the merchant cash advance rising in popularity?

The way consumers access their money and choose financial products has changed drastically due to technology continuing to advance at an incredibly fast pace. Oxford Economics state that it is estimated a third of all digital consumers now use a form of FinTech (Financial technology). This ranges from apps which allow you to take a loan out, online banking or invest in stocks and shares, among other things.

Small businesses, due to the poor treatment they are receiving from banks, are also beginning to get on board with FinTech. As the financial services landscape changes due to a number of innovations within the sector, the reliance on traditional banks has fallen substantially in favour of a FinTech solution.

How does a merchant cash advance work?

A merchant cash advance - or MCA - is a form of alternative business finance for small firms and sole traders. Whereas traditional bank loans require borrowers to pay back a set amount of funds on set dates over time, a merchant cash advance – also known as a business cash advance – works on a rather different basis, with the amount repaid at any one time proportional to turnover. That’s because it’s a form of finance based on a company’s credit or debit card transactions.

Given the difficulty of obtaining a traditional bank loan for many businesses, it’s understandable that a great number turn to this innovative source of finance.

What advantages are there to a merchant cash advance?

There are many advantages to a merchant cash advance. For instance, during busier periods when a business is making more money, more of the MCA will automatically be paid back, compared to leaner times when it won’t pay so much. With an MCA, there’s also no need to worry about keeping a certain amount of money to one side to pay on a set date - it really is a flexible, scalable and manageable form of business finance

With high approval rates, approvals within as little as 24 hours, zero APR, no fixed term, no other hidden charges and no need to provide security or a business plan, merchant cash advances are becoming an ever-more invaluable part of many firms’ cash-flow management.

An MCA also frees you up to use another type of finance alongside it, such as a bank loan or equipment lease, in the knowledge that the MCA won’t imperil your entire financial future in the way that other loans can if you are unable to keep up with the repayments.

Given such wide-ranging advantages as the above, it’s no surprise that so many firms that may otherwise struggle to obtain finance – especially those in the leisure sector, such as bars, restaurants, clubs and shops – are increasingly deciding to use their future credit card receipts as a means of securing quick funding through an MCA.

You came to the right place. In this article, we will see how to apply and secure a personal loan.

What to Do Before Applying for a Personal Loan

1. Check Your Credit Score

A higher credit score will make it easy for you to get a loan. If your credit score isn’t good enough, then take steps to increase it before applying for a loan.

You can get a loan with a low credit score but at a higher interest rate.

2. Consider Different Lender Options Online

People usually go to banks to take a loan. Since the banks would be aware of your financial credibility, they would be flexible in offering you a loan.

However, you can also consider other lenders and any Non-Banking Financial Company (NBFC). Verify their credibility before approaching them. Check for loan costs, interest rates, terms and tenure.

3. Compare the Interest Rates

Shop around to check what interest rates different lenders are offering. Compare the loan amounts and the required monthly payments too. Some financial institutions may offer you an unsecured personal loan while a local bank may offer better interest rates.

Apart from comparing personal loan interest rates, check what other charges you may have to bear. These may include processing fees, payment penalties, and foreclosure charges.

4. Check your Eligibility

Banks or other lenders require you to be salaried or self-employed to be eligible for a loan. You should be in a particular age bracket as well.

5. Check the Documentation Required

Check all the documents you require to apply for the loan. These may include your recent payslips, letter of employment, current address, photographs, etc.

6. Choose the Appropriate Lender

Choose a lender who gives you a flexible tenure and different EMI options to pay off the loan. Use an EMI and personal loan interest calculator online to estimate your monthly cash outflow.

7. Read the T&C Document Carefully

Make sure you understand all the terms and conditions before you apply and secure the loan. If you have any queries, ask the lender immediately.
Once you complete the above-mentioned steps, you can apply for the loan – either online or through the financial institution’s app.

How to Apply for a Personal loan

8. Online Application

• Fill up the Form

Fill up the online form and upload all the required documents. In this step, you need to mention:

1. Desired loan amount
2. Contact details
3. Email ID

• Get Instant E-approval

This is the stage when all the documents will be verified. The financial institute will check whether you are eligible for the loan or not. Once all the documents are verified, you will get an instant e-approval.

• Loan Disbursal

After the verification, the loan disbursal process will be initiated. You will have to e-sign the loan agreement document. By doing this, you agree to abide by the terms and conditions of the lender.

Once you e-sign the document, disbursal process will be started. Provide your bank account details where the loan amount will be disbursed.

9. Requests through E-mail or Phone Banking

Leave a request for a personal loan with the bank either through the customer service centre or an e-mail. The financial institute will review your eligibility and contact you to take the process ahead.

10. Offline Request at the Bank

If you don’t want to go the online route, go to the nearest bank of your choice. Talk to a relationship manager and request a loan.

Getting a personal loan has become a very simple process. You can use instant personal loan apps and have the loan amount in your bank account in no time.

Some buyers are having to delay because they just do not have the money saved up.

We are now seeing a growing trend of over 50's looking to buy their first homes. As such, they are also hoping to find specialised over 50's mortgages. Note that such mortgages do exist. Also note that buyers can do some things that can improve their chances of being approved.

Know Your Terms

First and foremost, getting a mortgage when you're over 50 requires that you know your terms. Every kind of loan comes with its terms – defined as the total amount of time you have to repay the loan. The terms are especially important to older borrowers because they may have less time to repay what they borrow.

Let's say you are 55 and looking for a 20-year mortgage. Given that the average life expectancy in the UK is 80 for men and 83 for women, a 20-year deal is doable. Still, it is right on the edge. You would likely find a lot more options if you were willing to take a 10 or 15-year deal instead.

Save a Larger Deposit

Larger deposits make decisions a lot easier for lenders. Imagine seeking a 10-year mortgage with a 50% deposit as opposed to 20%. When the lender looks at the loan-to-value ratio on your application, that 50% deposit is going to look a lot sweeter. It increases the ratio while simultaneously reducing the lender's risk.

If you have been prevented from buying a house because you haven't had a large enough deposit, this suggestion may seem out of place. Do not let it discourage you. Rather, let it be an encouragement to spend the next two or three years saving more. Even if you are already in your mid-50s, delaying your purchase to build a bigger deposit will help you in the long run.

Consider a Shared Ownership Scheme

The government offers a shared ownership scheme through its Help to Buy programme. Under this scheme, you purchase shares in a home rather than buying the home itself. The shares you do not own belong to the scheme, and you pay rent to cover those shares. Once in your home, you can continue purchasing shares up to 75%. Reach that 75% threshold and you'll pay no rent thereafter.

Note that this scheme is only for people 55 and older purchasing a first home. There are income eligibility restrictions as well. You can learn more by contacting the Help to Buy programme.

Work with a Mortgage Broker

The next suggestion is to work with a mortgage broker rather than going directly to banks and building societies. Remember that lenders are naturally afraid of risk. They tend to be nervous of over 50's who might be asking for mortgages they will not live long enough to repay.

A mortgage broker is a better option for several reasons. First of all, mortgage brokers are financial advisers first. It is part of their job to help applicants look through and understand their financial situations before applying for mortgages. Simply put, a mortgage broker helps the client to understand whether or not home ownership is financially viable.

Mortgage brokers also have access to a wider range of mortgage deals. Even if a broker cannot find you a mortgage with a high street bank, there are likely lots of other options through lesser-known banks and private mortgage lenders.

Be Persistent

Finally, be persistent in your search for an over 50 mortgage. They are out there. In fact, over 50's have more mortgage opportunities today than ever before. Lenders are realising the value of lending to older borrowers who just want to get out of the renting game and into their own properties.

Can you get a mortgage if you are over 50? Absolutely. Doing the things you read about in this article should improve your chances of getting a mortgage deal that is right for you.

There are many reasons why people take out title loans. Sometimes a person has an unexpected expense, such as medical bills, that need to be paid for. Other times, people just want some extra cash to get through the week.

Title loans are loans for small amounts of money. Your car title is put up for collateral. These loans usually have high interest rates and are for shorter periods of time than most conventional loans.

There are many companies that offer title loans. Many of them are conveniently located in your city and other neighboring towns. Some businesses offer online title loans with no store visit. They may require you to set up a user account to log in by providing some basic contact information.

Here are a few facts to keep in mind about title loans:

1. Title loans can be taken out regardless of your credit score. Because title loans are short-term loans, they are not dependent on your credit score. You don't even need to have any established credit in many instances. Title loans also have no impact on your credit score. If you don't pay off the loan on time, the lender has legal right to your car. That's why it's important to pay off these loans on time, or even ahead of time if possible.
2. The turnaround time for title loans is quick. Title loans are a relatively hassle-free experience. You can usually get the money you need the same day. There's no background check or waiting period to worry about. You have access to your cash right away, and you can start spending it the same day if you'd like.
3. You don't need to fill out a lot of complicated forms. Most companies will just ask for a simple form to be filled out. There are no complicated forms that have to be filed out in triplicate. They will ask for proof that you own the car, and may inspect the car's condition in some cases. If you're applying online, the lender may ask for you to take your car to a local dealer to have it inspected.
4. Title loans are based on the approximate worth of your car. The amount of the loan you will receive depends on the approximate value of your car. Don't expect to get a loan for the full market value. In many cases, title loans are offered at about 20-50% of the car's total value right now. This makes it easier for the lender to make their money back. It's probably best not to get a title loan that's at 50% of your car's value or higher, because that can increase your risk of losing your car if the loan is not paid on time.
5. Beware of higher interest rates and fees. A typical title loan will have an interest rate of 25% or more. There may also be additional fees or interest charged if you are late on your loan payments or the loan is not paid on time. Some lenders will allow you to roll your existing loan into a new loan. Just keep in mind that this new loan may also have additional fees and an even higher interest rate than your previous loan.
6. Title loans can be beneficial in the short term. Most title loan terms are for 30 to 60 days. If you're waiting on a paycheck to pay the loan off, then a title loan can be a good way to get some extra cash in a hurry. If you're unemployed or are having a tough time making ends meet, a title loan may not be in your best interest. Missing a payment or defaulting on the loan can cause additional fees and interest to be assessed. You could also risk losing your car in the process.
7. Title loans are a win-win for lenders. Title loans are a relatively low risk for banks, credit unions and other lending institutions. The loan terms are short, and they often recoup the initial investment plus any additional interest or fees in the process. If their customer pays late or defaults on the loan, the lender can legally take their vehicle that was offered as collateral on the loan. The lender can turn around and sell the vehicle for a quick profit if they so choose.

These are a few important facts about title loans. They should be considered as a short-term option instead of a long-term financial solution. Read the contract carefully before signing it, so that you are aware of the terms and any potential penalties for late or missed payments. Title loans offer flexibility and freedom for many people every day.

Consumer trust in banks has plummeted in recent years. The 2008 financial crisis, as well as recent examples of bad practice such as TSB’s IT meltdown which compromised millions of accounts, has led to many consumers questioning whether their bank really has their best interests at heart. Indeed, RBS chief Ross McEwan recently predicted that it could take up to a decade to rebuild lost customer trust following decades of poor treatment.

In fact, as many as one in five customers (20%) no longer trust banks to provide them with a loan – ostensibly one of a bank’s primary functions.

Despite this mistrust, consumer appetite for credit remains high. We’re therefore seeing a rise in alternative lenders offering customers the flexibility and transparency customers desire - and which many traditional banks have conspicuously neglected – which could spell the end of the traditional banks’ role as leaders in the lending sector.

But how has the lending process evolved and what does this mean for traditional banks?

The rise of new consumer lending models

While consumers are willing to borrow outside of traditional banks in the wake of these institutions having cut back on unsecured lending, they will no longer trust a provider which does not operate transparently or ethically – as evidenced by the collapse of Wonga. This, combined with recent regulatory action from the FCA, has heralded a wave of change within the financial lending sector.

Following the lead of disruptive, digitally-focused providers such as Uber and AirBnB in other sectors, a number of fintech disruptors - such as Atom and Monzo - have materialised. These brands have analysed the day-to-day banking issues customers face – such as a lack of transparency and poor user experience (UX) - and designed their services from the ground up to mitigate these issues.

From taxi apps that invite you to register a payment mechanism, to autonomous vehicles that pay for their own parking or motorway tolls, “banking” without the need for a bank will gradually become a more everyday experience. In this vein, so too will consumer lending change through organisations that offer finance at the point of sale itself – both online and in-store - moving from traditional pre-purchase credit to a far more seamless service.

Flexible point-of-sale lending is changing the nature of financial transactions across a range of sectors, including how to fund a holiday, buy a house, and even pay for medical treatments at a rate which suits the customer. The potential of this lending method is huge, with more than three quarters (78%) of consumers saying they would consider using point-of-sale credit in the future.

What does this mean for traditional banks?

People seldom wake up in the morning thinking “I must do banking”. Banks don’t tend to inspire the levels of consumer loyalty seen in other sectors, and they must therefore work far harder to retain customers. Given this, the ongoing reticence of banks, to both lend and offer customers what they want, has created a gap in the finance market, which could be the death knell for traditional banks if left unchecked.

As frictionless point-of-sale lending businesses and customer-centric fintech brands continue to thrive, several key banking functions – such as money management and consumer lending - may be replaced entirely by newer, more agile providers. For example, could the fact that providers are now offering finance in the property sector put an end to the traditional mortgage?

If this growth of smaller, more agile disruptors continues, banks are highly likely to see reduced customer numbers. It was recently predicted that banks could lose almost half (45%) of their customers to alternative finance providers, and if banks do not adapt their offering there is a real danger they may be driven out of the market altogether.

Simply put, if banks do not place a greater focus on what customers want – flexibility and transparency – their status as the stalwarts of the lending market may soon be a thing of the past.

More often than not, you will hear stories in the news of Millennials complaining that their generation is hard done by, but can you really blame them? Unlike today’s baby-boomers or Generation X, Millennials are saddled with an uncertain economic future and have the tightest cash flow compared to previous generations all because of the sheer complexity of modern life. This is a worrying fact and according to Christer Holloman, CEO & Co-founder of Divido, it’s time we cut Millennials some slack.

The burden of mounting student debt combined with an unrelenting affordable housing crisis and the fear of another credit crunch has made this generation particularly wary about their economic futures. This is translating into Millennials also becoming averse to borrowing from banks and sceptical about the financial services industry as a whole. Debt-conscious Millennials now favour prepaid and debit cards over the credit variety. This caution has two side-effects. Firstly, in a world governed by credit scores, it diminishes—some would say ironically— their potential to improve their credit scores and show that they can be trusted with credit and loans. Secondly, it means that those high-ticket, quality purchases are often deferred unnecessarily.

It’s fair to say that as a generation, Millennials suffer from perhaps the largest misconception about their spending habits, often criticised for being less money-savvy to other demographics. However recent research from Deloitte suggests Millennials aren’t as impulsive and money-reckless as the media makes them out to be. They are most likely, for example, to buy luxury, high-end goods when they receive extra income (such as a bonus) to avoid accruing debt. Because of this, it is crucial that businesses selling expensive aspirational goods targeted at Millennials, adjust their payment models, allowing consumers more flexibility and choice- choice that doesn’t stop abruptly at the checkout. It’s clear that this new wave of customer is not prepared to load up credit cards, meaning that if these businesses don’t change, their sales will become more sporadic.

Rarely is this negative attitude towards credit and debt addressed by a more convenient way to pay. This is curious given that Millennials now make up a quarter of the UK population, emphasising just how valuable offering finance options to this age group can be.

Millennials value convenience, flexibility and honesty from retailers and banks; all qualities which the main credit card providers are not renowned for. Paying by finance empowers customers by giving them the choice and flexibility that they crave from businesses. Allowing consumers to take a stronger control of their finances by spreading out their costs in monthly instalments at 0% interest, not only increases loyalty but makes those previously out-of-reach purchases more of a reality by removing the initial intimidating price tag. If more retailers adopted this system, the Millennial generation has a chance of becoming the next premium consumer base.

There has been a revolution in subscription payments for digital services over the past five to ten years. From Netflix to Spotify and even Nespresso, people are now very happy to spread out and manage their costs as they earn – it’s becoming the new norm. It is a model both the high street and online retailers should look to emulate in order to reach this influential generation and stay competitive.

The subscription model is now being rolled out to attract more affluent audiences with higher-ticket items such as cars as seen in Jaguar Land Rover’s recent launch of Carpe. Bitesize regular payment options are another way retailers can keep their customers loyal for longer by reassuring them that they are getting a good deal with the best long-term gains.

It’s clear that Millennials’ affinity for technology and new ways of doing things is reshaping the retail sector and its offerings. Having a strong brand is no longer good enough to lock in a sale with them. Retailers now need to work harder, tap into the financial psyche and purchasing mindset of Millennials to give them the flexibility and choice to own their payment plans. Not only will this ensure they’re not spending beyond their means, but it also allows them to buy the quality, higher-end products they desire then and there.

How does development finance work and what are the criteria? Below Gary Hemming at ABC Finance explains the ins and outs of project financing and development loans in the property sector and beyond.

1. What is development finance?

Development finance is a type of short-term, secured finance which is used to fund the conversion, development or heavy refurbishment of property or properties. Property development finance can be used for a range of different building projects but tend to be used for ‘heavier’ projects, which require serious building works.

Projects which require ‘lighter’ works, such as internal refurbishment are likely to be better suited to a bridging loan.

2. How does it work?

Development finance can be more complex than residential mortgages, with funds advanced upfront and then throughout the build.

Funds are initially advanced against the value of the site, with most lenders happy to advance up to 60-65% of the value.

Once the build has begun, further funds are released at agreed intervals, with lenders often willing to advance up to 100% of the build costs. In order to agree to each stage release payment, the site will be re-inspected by either a lender representative or monitoring surveyor. If they feel that works are being done to a high standard and there is sufficient value in the site to release the next stage, funds will generally be released quickly.

The reinspection and further staged drawdown are then repeated until the project is completed.

3. How is the interest paid?

The interest is retained by the lender as each stage is drawn down, meaning there are no monthly payments to make. When the development is complete, the loan is redeemed along with any interest that has accrued.

This generally suits both the borrower and lender as cash flow can be difficult to mage during a build. As such, the removal of monthly payments makes the loan easier to manage for all parties.

4. How much does it cost?

The rate charged will depend on several factors, with the main ones being

• The developer's experience and track record
• The scheme being undertaken
• The location of the development
• The amount of funding required
• The loan to value/loan to GDV requested

Larger loans of say £500,000 or above will usually be between 4-9% per annum depending on the above factors.

Smaller loans of say below £500,000 will usually range from 9-12% per annum however if the deal is strong you could pay around 6.5% per annum. Usually, lenders price each application individually.

In addition to the interest charged, the will usually be a number of other fees, the main ones are:

• Lender arrangement fee – this is usually 1-2% of the loan amount
• Lender exit fee – this is not always charged but can be 1-2% of the loan amount.
• Valuation & monitoring surveyor fees – these can vary and it is almost impossible to offer a guide due to the number of variables.
• Broker fees – most brokers will expect to earn 1% for arranging a property development loan. Where they are not paid by the lender, they will usually charge it as a broker fee directly to you.

5. Understanding the maximum loan available

Property development finance lenders use a number of key metrics to calculate the maximum loan, they are:

• Loan to value (LTV) – The loan to value ratio is used to calculate the maximum available advance at any one time. The monitoring surveyor will revalue the site throughout the build to ensure the lender is never overexposed.
• Loan to cost (LTC) – Most lenders will want to know that you are putting up a certain amount of the money yourself, loan to cost is used to calculate this. For example, a maximum loan to cost of 90% would mean that the lender is not willing to put more than 90% of the total cost of works into the scheme. You would, therefore, have to pay at least 10% of the total project cost by way of deposit.
• Loan to gross development value – Otherwise known as loan to GDV, is the maximum percentage of the loan that the lender is willing to offer. If a £1,000,000 scheme had a maximum loan to GDV of 70%, the maximum total facility would be £700,000.

The lender will combine all 3 of these metrics to calculate the maximum loan. Where there is a conflict between the 3 figures, the lower of the 3 will be chosen to cap the loan.

6. What happens when construction works are complete?

When the works are complete, the loan will generally need to be repaid. Often, people look to refinance to a term loan such as a mortgage or switch to a development exit product whilst the site is sold as this can be cheaper than the development finance, maximising profit.

The facility will be set up to last for only the build period, with a grace period to allow time to refinance or sell. Development finance should never be used as a long-term finance solution.

In this guide, experts at ABC Finance help Finance Monthly break down what commercial mortgages are, how they work, how the application process works and how much you’re likely to pay.

What is a commercial mortgage?

Commercial mortgages are, much like residential mortgages, a long-term long which is used to purchase or refinance a property. As with residential mortgages, the lender takes security over the property or land in question and allows you to borrow money against it.

Commercial mortgages aren’t just used to raise money against commercial or semi-commercial property, usually almost any security can be considered. It’s common to see a commercial mortgage used to fund land or even predominantly residential security, such as large HMOs, large buy to let portfolios and holiday lets.

Commercial mortgage uses

Funding can be arranged for one of two main reasons:

• To purchase or refinance a property for your business to trade from;
• To purchase or refinance a property as an investment.

Although almost all applications will come down to one of these two reasons, each application will have its own intricacies and lenders will be flexible in understanding your circumstances.

As mentioned above, unlike residential mortgages, commercial mortgage lenders are generally quite flexible in the security offered. Commercial mortgages can be an ideal option for unusual properties, or even to raise finance against land.

The documents needed to apply for a commercial mortgage

When you apply for a commercial mortgage, the lender will usually want to see a number of supporting documents to help them assess your application. Although the exact documents required will vary from lender to lender, there are a number of documents that are commonly requested.

Firstly, the lender will want to check that the proposed mortgage is affordable. To do this, they will request a copy of the latest two years accounts for owner-occupied applications, or a copy of the lease, or leases for investment properties.

These documents are used to assess the proposed repayment against the money coming in.

In addition to the accounts or leases, the lender will also request 3-6 months bank statements, which will be used to check your account conduct. This gives the lender an understanding of how much of that income is left at the end of each month, and how well the account is managed.

For investment properties, only personal bank statements are required. For owner-occupied properties, the lender will also request your business bank statements.

The final document that is requested on almost every application is an assets, liability, income and expenditure summary. This gives the lender a breakdown of your personal cash flow and net worth positions.

This document provides a simple insight into your personal finances and alerts them to any potential future problems.

How are commercial mortgages assessed by lenders?

The processing of commercial mortgage applications is more of a manual process than residential mortgages, which are largely assessed by a computer.

Lenders will often take a common-sense approach to situations and will look at the bigger picture to fully understand the circumstances surrounding the application.

The other big difference between residential and commercial mortgages is that the valuation is undertaken later in the process. A surveyor is not usually instructed until after the mortgage offer is issued.

As a result, applications tend to take longer than standard mortgages, with applications usually taking 6-8 weeks to complete on average.

Commercial mortgage rates and terms

Commercial mortgage rates can vary widely between lenders. For an owner-occupied application, rates of between 2.75% and 3.75% are average for high street lenders.

Commercial investment rates range from 2.85% to 4% on average from the high street banks.

Challenger banks will usually charge a little bit more but will be more flexible in their lending criteria. Rates start from 4.29% and tend to hit around 7% for higher risk, higher loan to value applications.

In addition to the interest charged, lenders will usually charge an arrangement fee of between 1.5-2%. This is usually paid on completion and can be added to the loan in most cases.