Taking out a loan - should I borrow more than I need?

Taking out a bigger loan that you need. Many loan officers get paid on commission, so it's in their best interest to have you take out more money than you actually need. It is, of course, not ethical and may even be illegal for a loan officer to try to "up sell" you to a higher loan amount. If you are taking out a personal loan, it's because you are already cash strapped. Don't borrow any more money than you absolutely need to. A loan officer may prod you to take out more by telling you to stash it until you need it. Common sense dictates your monthly payment will be higher the more you take out. Instead of borrowing more money, stash the difference you'd pay for the larger loan in a savings account each payday. If you can set up an automatic withdrawal from your paycheck so it goes straight into a savings account, you’ll be in a much better position.

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Improving Bad Credit

You are in the process of trying to buy a home, but your wife and you have had some credit problems in the past involving student loans, a credit card, and a repossession of a car. Now, you are wondering what the best way is to deal with cleaning up your credit score. Is there someone you can call who can help you get this done? You've finally turned your lives around through promotions and now you want to turn your credit around. Sounds familiar? I suggest that you read
The five-step plan for improving bad credit. You will find out that there is a way out.

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How to write an effective Business Loan Proposal

The first, and most important, step of the business loan application process is the preparation of the written proposal. Since it maybe your only chance to get peoples attention it is important that you do it right the first time.

Always begin your proposal with a cover letter. Clearly and briefly explain who you are, your business background, the nature of your business, the amount and purpose of your loan request, your requested terms of repayment, how the funds will benefit your business, and how you will repay the business loan. Keep this cover page simple and direct.

When writing your proposal, always include industry-specific details. If your reader is familiar with your industry, it demonstrates your knowledge of the industry and if the reader is not familiar with your industry it will be a great educational tool.

Provide a detailed description of your business, including the following information:Type of organization, Date of information, Location, Product or service, Brief history, Proposed Future Operation, Competition, Customers, Suppliers

Express the experience, available in management, by including resumes of each owner and key management members.

If there is a loan that requires repayment, you need to provide a brief written statement indicating how the loan will be repaid, including repayment sources and time requirements. Cash-flow schedules, budgets, and other appropriate information should support this statement.

Provide financial statements of your existing business for at least the last three years, plus a current dated statement (no older than 90 days), that includes balance sheets, profit & loss statements, and a reconciliation of net worth. Aging of accounts payable and accounts receivables should be included.

Provide a pro-forma balance sheet for your proposed business, reflecting sources and uses of both equity and borrowed funds.

Provide a projection of future operations for at least one year or until positive cash flow can be shown. Include earnings, expenses, and reasoning for these estimates. The projections should be in profit & loss format. Explain assumptions used if different from trend or industry standards and support your projected figures with clear, documented explanations.

Provide a list of assets to be held as collateral. Few financial institutions will provide non-collateral based business loans. All business loans should have at least two identifiable sources of repayment. The first source is ordinarily cash flow generated from profitable operations of the business. The second source is usually collateral pledged to secure the business loan.

Depending on your particular circumstance you may need to provide one or more of the following documents:

Lease, Franchise Agreement, Purchase Agreement, Letters of Intent, Articles of Incorporation, Plans, Copies of Licenses, Letters of Reference, Contracts or Partnership Agreement.

Karin Boode is the founder of the Loan Info Center, and the author of many loan related articles. The Loan Info Center strives to provide valuable information regarding any type of loan via the http://www.loan-infocenter.com website.