Category Archives for "Finance"

How to Transition from Working Full-time to Running a Business

If you are thinking about starting a new business, there must be a few concerns in your mind. If you are a full-time working professional, it can be very difficult to start a business. However, there are a few things you can still do to be successful. Read on!

Enough Passion and Right Mindset
This is perhaps the most important thing to learn. Make sure you are stepping into a new business with the right mindset. It is very important to analyze the market, your target audience and your specific area of functionality before starting your business. Even though economy is not very favourable, there are still people making millions and billions out of their personal ventures. Passion to succeed is the only thing you need. Unlike the popular notion, you don’t even need a business degree to run your company. Get rid of any self-limiting beliefs before you start your business. Confidence is the key to achieving anything.

Have Long-Term Business Goals
In the initial stage, you should know how to find the right work-life balance to manage your upcoming venture. It is also very important to have a well-defined and clear long-term goal for your business.

Do Not Quit Your Job Right Away
If this is your first step at becoming a full-time entrepreneur, leaving your job right away is not recommended. You should go for a temporary or part-time job till you establish your business. Working somewhere is necessary to manage your monthly expenses and save for your upcoming personal venture.

However, make sure you know about your personal goal and can separate it from your job. Do not work for long hours or perform additional tasks to please your boss. Focus on your key responsibilities and give all the extra time to your business. Make sure you also cut down the time spent on social activities to focus on your business. Your new company is going to take a lot of your time in the beginning. Unlike a regular employee, you won’t be assigned any specific task in a given department. When running a business, you need to take care of all the functionalities yourself.

Go For Saving Funds
For first time business starters, the biggest issue is managing finances. It can be very difficult to arrange the start-up cost for your new company. Before executing your strategy, make sure you have a solid business plan. Unlike a stable job, entrepreneurship is not going to guarantee you a monthly pay check. Most businesses go through a number of cycles throughout a year. Some cycles can be prosperous and flourishing while others can be total opposite. Before you finally bid goodbye to your corporate job, make sure you have enough savings.

Alternate Sources of Income
You don’t need money to start your business only but also until it is fruitful enough. Most new entrepreneurs prefer to have another source of income along with business. If you are struggling to make your ends meet, running a business will become even harder. Make sure you do not take any uncalculated financial risk and have solid budgeted plans for your future.

Who Can Be Your Guarantor?

Since guarantor loan is unsecured by nature, banks do not require the borrower to provide any collateral security against the amount borrowed. Instead, they require another person as a guarantor to provide security against what has been borrowed. This implies that in case the borrower is not able to repay the loan amount, the guarantor will be responsible to make up for the default amount.

While the loan is not secured, this is the way lending institution ensure the money is not risked by giving to the borrower. The money, in short, is safe because of the guarantor. However, not everyone can become a guarantor for a personal loan like guarantor loan.

Banks and lenders have set few criteria for eligibility as a guarantor. These should be followed in order to get your loan successfully.

What Lenders Prefer for Guarantors

All lenders have their own internal policy regarding who can become a guarantor for guarantor loans. While some might even have criteria set for borrowers, most of them are for the guarantors since they are providing security for the loan. In general, most lenders would require a guarantor to be employed and earning a certain income (preferably more than the borrower) to ensure that any outstanding loan money can be recovered in the event of a default.

A Sound Credit Report

The lenders also take the guarantor’s credit report into account to understand if it will be easy to recover the default money. Some lenders also require that the guarantor should be a homeowner in the UK. While it is important to remember that guarantor loan is an unsecured loan and the lenders cannot force the guarantor to sell off the property to recover money, the lenders can still pull both the borrower and the guarantor to the court if the amount goes on default.

So Who Can Be Your Guarantor?

Almost anyone can be your guarantor for loan if he or she is not directly linked to your own finances. It can be your family member, a work colleague, or a friend. However, since partners or husband/wife are directly associated with your personal finances, they may not be able to become your guarantors.

Age Limits

The age requirement may vary from lender to lender. Some allow guarantor to be 18 or above while others require a mature guarantor and set the criteria of 21 years or above. Other than that, the guarantor should also have a good credit history to ensure the lender that in the event of default, he or she will be able to repay the loan amount on behalf of the borrower.


Some lenders allow only UK homeowners to be eligible as guarantors while others allow both homeowners and tenants. However, your chances of getting your case approved increases when you have a homeowner as your guarantor.

After meeting these criteria, you need to make sure that the guarantor you choose trusts you. Only people who are close to you and agree to make the payments on your behalf will make good guarantors. Every guarantor experiences the risks of becoming a guarantor. Therefore, trust is a very important factor here. Make your choice wisely before applying for a guarantor loan.

Payday Loans – Fight and Win Against Fake Debt Collectors

 Fake debt collectors are scavengers who are looking for people who are easily gullible and easily terrified from which they extract money for debts they don’t own. The number of these people have increased tenfold after the boom of online payday loans.

The lack of protection these online loan sites place on private information is the main reason for the increase in the number of these collectors. A several other factors of online payday loans are also included, but this article will not be about them, but about fighting those collectors and winning against them.

Debt Collectors

The most stressful thing about these collectors is the number of calls they will make in order to force you to talk to them. Once you start talking you have been caught in the first web. They will lay down all your personal info and tell you about debts you are owning and that they will not press you to pay them in full, only several hundreds of dollars would be enough.

I found few interesting ways to win against them and make those calls stop and if you are interested in them then read on:

Silent treatment

Silent treatment is one of their ways to get those calls to stop. You are not the only person they will call today. You are one in thousands. So, if you hang on each and every call they make they will see that there is no profit that they can extract from you. And they will stop wasting both yours and their own time.

Easy, but boring way to get rid of fake debt collectors is hiring an attorney for a day or two and giving his number and his name to the debt collectors. That ends all future calls.

You can change your number, which I would advise against. You should not change anything because some scammer decided to call you. There are better and more interesting ways to make them stop calling.

Play with them

If you have some time to answer those calls then have fun answering them. Just speak about something that would irritate them. For example you can start having cyber-sex with them, for fun only. Ask them what are they wearing, where they are, do they want to have fun over the phone and so on. Or just play some loud music, it doesn’t matter what type of music it is, the point is ti irritate them. These are just few examples of having fun with fake debt collectors, it is up to you and your imagination when it comes to that.

You can follow the story they have devised, but go a step further and take the role of the harasser. But first check whether they are real or not. If they are fake then attack them and say that you have talked with their superior (find on the internet some important person from the organizations the fake collector said he represents) and they have agreed to listen on the calls and that the police have tracked his location and that they are on the way.


Guarantors Part in Guarantor Loans

Being a guarantor to a friend or family is not something that should be taken lightly. Guarantor has whole loan on his back, because he must have money to repay it, once the borrower losses the ability to do that. So, yes this article will be focused on less highlighted role in guarantor loans, on guarantor.

What is guarantor?

Guarantor is person who acts as a fail safe in guarantor loan. He will repay any chinks of the loan which borrower can’t. But being a guarantor is risky business and it can get you in a lot of financial trouble so ask yourself several questions before agreement to be one:

  • Is the loan that borrower takes aimed at investment in something useful or is it something they are taking to spend on useless things?
  • Is the person that is asking you to be guarantor responsible enough for positive reply?
  • Does he really need that loan and what credit score he has, and whether he has a need for guarantor?
  • Are you ready to pay back that full loan if it comes to that?

If you want to help your friend or a member of your family but you are not certain in their ability in repayment of that loan then refuse an offer to be a guarantor. Instead of being guarantor offer them your own loan, which can be without any kind of interest. But don’t just give that to them, but create law binding contract that should be signed by both parties.


Being a co-borrower carries same risk as being guarantor and it is not advised. If you want to be a good person and accept an invitation of being guarantor to someone, they the best way to protect yourself is to take them as your guarantor as well. Loan companies will have no problems in accepting this kind of deal. It basically comes down to both of you taking some amount in loan, and both of you being guarantor to each other. This makes it futile to skip on paying your loan and leaving it all to guarantor. If you do that in this case then that guarantor can stop paying his own loan and you will have to repay it. So it can’t hurt anyone in that situation. Trust is necessary, but trusting someone with thousands of dollars is not smart move.

When you decide to become someone’s guarantor you should ask for a written agreement in which there will be several things:

  • The amount for which you are liable, some additional and new loan borrower takes will not fall on you if it exceeds that amount
  • It should list all circumstances in which repayment of that loan becomes your responsibility
  • And length of time of your obligation towards the borrower and lender.

You should also ask for written agreement which will allow you to gain information about financial decisions of the debtor which would be provided by him, amount of money in debtor’s account and so on.

Troublesome aspects of Payday Loans

World of payday loans is not a garden of Eden in any form. A lot of money exchanges hands in this business and where there is cash flow there will be people who will step out of the legal practice and pursue greater profit through illegal practices. This is not the case of all payday lenders, but there is alarming number of those that fit this description.

Those illegal practices involve threats, pursue of wrong repayment amount, misleading info and so on. The effect of those practices can be rather different, in some cases it leads to poor outcome to customers, and in other cases it can cause great loss and even physical damages.

Threats made to borrowers involve text messages and similar long range threats, and direct face-to-face threats. Both of those are clearly against the law, but greed makes people capable of anything. In some extreme cases ( and don’t mislead yourself with believing that they don’t exist, they do and not in small number ) borrowers will get beaten in order to convey the message about what will happen if he lingers longer with his loan repayment.

Once you have fallen in the clutches of some payday lenders they will use the advantage and they attempt to use you. If you fall behind on payment or sometimes in middle of repayment period they will ask for larger repayment amount than it is originally. They might go and give you several reasons for that increase, but in reality they are trying to abuse your place as borrower. It goes without saying that this is against the law, and you should never comply with these terms.

Pay attention on lenders

1080Some more aggressive lenders will use threats and power to make you repay more than it is agreed. In that case you should try to cut all ties with them and if it isn’t possible go to police or take matters in your own hands and teach them how big a mistake it was to threaten you.

Some payday lenders will give you false info about extension of repayment period or what happens if you don’t repay your debt in time. Some will increase interest rate after such things, but they will not explain that to you at the creation of loan contract. Then others might seek reparations in the form of collateral damages which will involve sequestration of your property. You should ask about all specific info when you go to take that loan, and once you gather that info don’t accept any other conditions they reveal later.

poundnotes_2577552kConsequences of illegal activities done by payday lenders are wide in there effect and they range from small inconvenience to greater financial losses and in some cases physical injuries. My general advice would be not to take payday loans, but I do realize that sometimes they must be taken to fill the gaps in budget. If you have to take such loan, make sure to ask about everything and create such a deal in which you will not be cheated later.


Student’s Loan

.The student loans are very much needed for the students to complete the education. This loans are basically federal loans which are lent to the students. So that they can complete their education without any financial crisis. Also this loans are very easy in nature. Students can easily afford the loan. And if any student fails to repay the student unsecured loans, they have the complete opportunity to get a loan consolidation program to make the loan repayment. The student loan consolidation makes such a policy that the students can pay monthly installments to pay the debts of the student loan through loan consolidation opportunity.

Student’s loan consolidation:

The student’s loan consolidation is a way to pay the existing student’s loan debts. If a student fails to repay the loans, he/she can be taken under consideration if he/she takes a loan consolidation program to repay the loans. The student loan consolidation is such a loan which is lent to repay the existing loan debt and then the lenders set such a repayment plan that the students can easily make the repayment and manage the loans.

The loan repayment of the student’s loan consolidation:

The student loan consolidation program actually repays the existing loan debt with another loan. After that the lenders mixes the consolidation loan with the existing loan and turns them in to one single loan. And after doing that they set an easy and flexible monthly repayment structure so that the students can manage to repay the loans easily with monthly installments.

Flexible monthly repayment:

The student loan consolidation program actually makes the loan cheap and borrower friendly. The borrowers get the consolidation loan to get some help to repay the loans. The students can repay the consolidation loan through monthly installments. And this monthly installments are so easy and affordable as well. In fact, it is easy for the students to repay the loans easily. They will not have to face complex problems to repay the loans for people with bad credit as the loan becomes very cheap after the consolidation.

It may be difficult for a student to manage both study and job at once. In fact, if a student needs to repay the loans through consolidation he/she will have to do a job for monthly repayment. This situation may seem a difficult situation for a student. But truly it is not. The monthly repayment after the loan consolidation becomes too easy for a student to manage the loans easily. That is why, the students prefer to take student loan consolidation to make the loan cheap and affordable and easy.

Interest rate and time schedule:

The interest rate and the time schedule of the student loan consolidation are very friendly. In fact, if you come to know the interest rates and the time of repayment, you will definitely prefer to take the monthly repayments of the student loan consolidation. The students would have to pay interest rates from minimum 1% to maximum 8%. This loan is to be paid off within the time of 30 years in monthly installments.


High Risk Loans Offered To People With Bad Credit

Payday Loan

If you are one of those people without a decent credit score and want a loan, then you can consider going with one of the high risk loans that are available in the market. These loans can help you get instant cash, especially at times when you require immediate financial assistance. The best part is that these high risk loans specialize in people with bad credit, which means that you do not have to worry about your credit report. Some of the lenders might not even look at your credit history.

Fast cash loans for bad credit

These types of loans are also known as payday or cash advance loans. They fall into the category of signature loans and personal loans and do not require any credit check. Additionally, they give you instant access to the money that you require. However, the maximum limit of the money that you can borrow is not as great as traditional loans. All you have to do is apply online and send in the required documents to get it approved.

High risk unsecured personal loansPayday Loan

With an ugly credit, another type of loan that you can look into is high risk unsecured loan. Such loans do not need collateral, which means that they will be a little difficult to acquire. While reserved for people with good credit, lenders are also open to working with people having bad credit. The approval may take about a week but you will be able to receive more money through this option.

Peer 2 peer loans

Peer 2 Peer Loans is another loan option that you can acquire online and is great for people having bad credit. This loan type will connect you to individual investors who will be able to help you acquire instant cash. In most of the cases, you will be able to acquire the loan in a week and the individual investors will not even be analyzing a person’s credit history too closely.

Cosigner loans

If you are having difficulty in getting a loan approved or do not have collateral with which to secure a loan with, then you can go with a cosigner option. This will require you to find someone having a good credit history and who would be willing to cosign a loan agreement with you. By cosigning, the individual will agree to share the risk of the loan with you.

Pawnshop loans

If you are unable to find a cosigner and have exhausted all other options of obtaining a loan, then you can look into pawnshop loans. These are easy to get. However, you would require collateral for them. A great thing about this is that the collateral does not have to be a vehicle or a property. Any electronic item or jewelry can also be accepted as long as it is of a certain value.

People having bad credit may find it extremely hard at times to obtain a loan. However, they should not give up. Instead, they need to keep their eyes open for all the options that are available to them.