2017 September

September 27, 2017
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Acquiring a construction loan for a business is indeed not an easy thing to do. So, this article aims to guide you throught the entire process, from looking for a lending company where you can apply for the loan to getting the money that you need for your construction project. We would be explaining everything to you in detail but first, let us explain what this kind of loan is.

What is a construction loan?

It is basically the amount of money lent to a company for the purpose of constructing a building, which would then be repaid at a given amount of time. This kind of business loan may cover the cost for acquiring the land, the supplies needed and the construction process itself. Hence, this is considered to be a big help for companies who plans to construct new buildings but lacks the funds to do so. Nevertheless, they would be required to prepare and submit documentation. Also, it may take a while for the bank or the financial institution to approve the loan for they need to consider a wide range of things like the profitability of the building that is about to be constructed. They may also look at the condition of the business’ market at present and in the future.

The process of getting a construction loan

First and foremost, you need to look for a bank or any financial institution that can offer you such loan. Then, you would be asked to fill out an application form that includes the projected cost for the project and submit the necessary documentation like your company’s tax returns, your current real estate holdings and the business plan for your construction project. They would then go over your application. In this process, they would look over different variables such as your credit score. This is the reason why you should avoid having a bad credit for having a bad credit can reduce the chance of your loan getting approved. They would also be considering the risk of the loan. Now, in case the loan looks good, then your initial application would be approved.

After that, the terms of the construction loan would then be drafted and it would be sent to you for reviewing. After you have read all the terms and for you, it looks good, then you can sign it. On the other hand, in case you do not agree with a term included in the contract, then you can negotiate it with the institution where you have applied for the loan. Once you have reached an agreement, then you can both sign the contract and that means that the terms of the contract starts to take effect.

You would then be provided with your needed funds as promised and you also need to repay it in accordance to the contract’s terms. You can then proceed with your construction project without worrying about the possibility of you not having enough funds. Just make sure that you choose your loan provider wisely.

 

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September 18, 2017
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A Quick Guide to Building Your Credit Score

You probably were not thinking about the possibility of applying for a loan in your bank, hence you did not pay enough attention to improving your credit score. But when a time comes when you would like to start a new business, you will need business loans.

Here, you will be concerned about getting approved but if you do not have an ideal credit score, you might not be able to apply for any loan. Fortunately, there are a lot of ways to improve it at the right time. Here are some:

Ask increase in the limit of your credit

A great and easy to way to increase your credit score is requesting an increase to your credit limit. When you are already a regular customer with an ideal credit history, chances are it will not be long until your request gets approved by the card issuer.

If you are looking to renew from a new credit company, be sure that the new credit offers a great credit limit even for first-time clients. When applying for your new card, it is common to be questioned about previous credit history which can be a blow to your score but not bad enough.

Pay off a chunk of your existing balance

Having a credit card balance should not worry you too much, although it would cost you more in interest payments it can also boost up your credit usage ratio in a very good way. Pay at least even a portion of your existing balance can prove to be a good way to increase credit score.

It is important to find ways to earn an extra profit to keep chipping at your current balance. Doing this is key to decreasing your credit utilization rate to a minimum while increasing your credit score quickly.

Be an authorized user on another person’s card

Getting someone you are friends or family with to authorize you as a user in the use of their existing credit account is a fine option for those not looking to open a new credit card. This can prove beneficial to you in a variety of ways. A good example would be if your friend is the primary cardholder is a regular bills payer, all of their on-time payments can make your record be sky rocket.

In addition to that, your current limit would be added to the other person’s credit limit doubling the rate at which your credit usage ratio would decrease. It is important to note that building credit limit takes a long time but these maneuvers can help boost your score rapidly.

Correct credit report errors

A credit report error could become your respectable scores’ worst nightmare. Spotting an immediate error on your credit reports must be noted and corrected quickly helping you boost your record talk about killing two bird with a stone. Recent studies suggest that 20% of clients that take action with their credit report errors have their scores increased as an effect.