Loan Archives - GUJRAT INDIA

How To Pay Off Your Student Loan Before You Graduate

Here are the HARD facts that most college graduates will be facing after school.

Not having a job or not having the job that they want, because the days of graduating from school and staying with the same company are dead and over.

“Most college graduates will have up to 3 careers or more in their lifetime”.

Well, at least that is what the economists out there are projecting.

With that being the case.

I would recommend you to start your entrepreneur career while in school.

You can start an online business or side business right out of your dormitory room and work on it around your class schedule and then turn that business into a cash cow for YOU.

Which you can then use to pay off your student loan.

I mean, you would think this would be a no-brainer for most college students but you would be thinking wrong.

Most of them are too busy using these 4 years away from home to party like crazy and follow the crowd!!

The other thing is you can use this experience to get the job that you want before you graduate.

Okay, now let’s get into a few business models.

These are just the outlines for each one.

You will have to adopt, adapt and expand on the one that you choose, and make sure that you do some research and model your business after other great businesses that are in your market.

Don’t try to re-invent the wheel.

Learn from other businesses’ mistakes and test out ideas that you think may work for your own sales funnel.

The business models are.

1). Reverse e-commerce.

This is when you set up a site or use eBay and list items that you think may sales.

First step.

You take quality pictures and list the item.

If and when they sell, you then go back and buy the item and ship it to the buyer.

This is a great way to do business because you don’t need any inventory.

This will give you the freedom to test out the market in your niche and see what is selling.

2). eBook business model.

This is when you write up a pdf and format it into an eBook with graphics.

Keep in mind though, you don’t need to create anything if you don’t want to.

Of course.

If you have a passion for an idea, try to create an eBook around that passion.

And if not.

You could just interview an expert and then turn that interview into not only into an eBook, but also an actual book and an audio product.

So, you could end up with a home study course or a membership site and earn monthly passive income from it.

Those are just 2 business model you can use and start from your very own dormitory room.

The great thing about both of these business model ideas is that you don’t need that much money to get started.

Now, can you see how this could and should work?

I would like to stress to you guys… really think about using this idea to pay off your student loan and at the same time build a successful online business!

Easiest Business Loan to Get: What Factors Are Important When Looking for a Financing Solution?

Every type of business requires some sort of loan or line of credit for a wide range of reasons: start up capital, equipment, inventory, office rental, etc. Since every business and every owner is different and has unique circumstances, the easiest business loan to get for another owner might not be the easiest for you.

For start-ups or businesses that have either no credit history or a poor credit history, it will likely be difficult to obtain traditional bank loans. Also, with a low credit score, your interest rate will be high, even if you are approved for a loan.

Lenders will usually look at more than your credit history. Other factors include your time in business, industry, your personal credit score, whether you’ve had any recent bankruptcies or defaults, balance sheet, business licenses and permits, tax returns, purpose of loan, proof of collateral, and several other reasons.

If you can think that your financial situation is likely to improve, you’ll need to provide the documentation to prove it. Always have your documents and financial files ready and organized anyway, so that you’ll be able to get through the application process as smoothly as possible.

Are SBA Loans the Easiest Business Loan to Get?

Many people don’t consider SBA Loans and long-term loans to be the easiest business loan to get, as the application process is very long and complex. Only consider SBA loans and long-term traditional business loans if your credit score is high and you have all your financial statements prepared and ready to go. However, the application process still might take some time, so you’ll have to wait on approval.

If you need cash as quickly as possible, there are options such as merchant cash advances. This type of offer will help you access capital. You’ll receive a lump sum of cash, but you’ll be expected to give up a portion of future sales. You will have the responsibility for paying back the loan itself as well as fees. While there is no set fee, $15 for every $100 borrowed seems to be a pretty typical amount by many cash advance merchants.

Invoice financing and equipment financing are pretty similar with their requirements. With the former, you’ll need to show details of your unpaid invoices, as well as bank statements and other financial information. With the latter, you’ll need to explain the type of asset(s) your company needs to purchase, and provide an equipment quote, business tax returns, bank statements, etc.

There are many other options for business of all sizes thanks to the internet. Online lenders are popping up all the time, although it’s best to stick with one that has been around for at least a decade. Begin your search with US Business Funding, an accredited company with the BBB. They will help you find the easiest business loan to get for your needs.

Securing a Small Business Loan

Insufficient funding is one of the top reasons why 80% of businesses fail within the first year and a half. As a business owner, not only do you have to cover all operating expenses, but the time and effort needed to succeed means you will almost certainly have to bid farewell to your day job and regular pay checks. Unless you’ve saved up enough to pay for everything for at least 18 months, you will probably have to find other sources of funding.

However, here we encounter another problem. A recent survey cited by the Credit Union Times showed that only about one-fifth of small business owners – incidentally about the same rate of successful businesses – rely on a small business loan. The survey showed that 62% were fearful of taking on a loan and almost one-fourth of respondents think they would not be approved for one. A Harvard Business School working paper by Karen Mills (Administrator of the US Small Business Administration until 2013) showed even more discouraging statistics. Banks continue to apply measures that restrict small business lending since the financial crisis hit, since such loans are generally always riskier than those to large businesses. Loans amounting to $1 million or less – the domain of small businesses – have gone down 21% since 2008. These loans made up half of all bank loans in 1995, but only 30% in 2012.

So what can you do to have a better chance at securing a loan?

As the saying goes, “The devil is in the details.” Given the stricter requirements of banks, you will need to come up with a very convincing plan that shows your business will truly make a profit. Each number presented has to be supported by hard evidence or at least some realistic projections backed by in-depth research. There must also be a clear plan as to where the money will go and how it will influence your business’s success.

Aside from this, your entire personal finances will also be scrutinized, so make sure your taxes, mortgages, credit cards, assets and liabilities, and even your credentials are all spotless and in order.

The bottom line is, if you believe in your business idea and do the necessary due diligence in coming up with a sound budget and business plan, there should be no reason to be denied a small business loan. Otherwise, you may want to reconsider quitting your day job.

Small Business Loan Update – Stimulus Bill Helps Bailout Businesses If They Cannot Pay Loans

As we continue to sift dutifully through the over 1,000 pages of the stimulus bill (American Recovery and Reinvestment Act of 2009), there is one provision that is not getting much attention, but could be very helpful to small businesses. If you are a small business and have received an SBA loan from your local banker, but are having trouble making payments, you can get a “stabilization loan”. That’s right; finally some bailout money goes into the hands of the small business owner, instead of going down the proverbial deep hole of the stock market or large banks. But don’t get too excited. It is limited to very specific instances and is not available for vast majority of business owners.

There are some news articles that boldly claim the SBA will now provide relief if you have an existing business loan and are having trouble making the payments. This is not a true statement and needs to be clarified. As seen in more detail in this article, this is wrong because it applies to troubled loans made in the future, not existing ones.

Here is how it works. Assume you were one of the lucky few that find a bank to make a SBA loan. You proceed on your merry way but run into tough economic times and find it hard to repay. Remember these are not conventional loans but loans from an SBA licensed lender that are guaranteed for default by the U.S. government through the SBA (depending upon the loan, between 50% and 90%). Under the new stimulus bill, the SBA might come to your rescue. You will be able to get a new loan which will pay-off the existing balance on extremely favorable terms, buying more time to revitalize your business and get back in the saddle. Sound too good to be true? Well, you be the judge. Here are some of the features:

1. Does not apply to SBA loans taken out before the stimulus bill. As to non-SBA loans, they can be before or after the bill’s enactment.

2. Does it apply to SBA guaranteed loans or non-SBA conventional loans as well? We don’t know for sure. This statute simply says it applies to a “small business concern that meets the eligibility standards and section 7(a) of the Small Business Act” (Section 506 (c) of the new Act). That contains pages and pages of requirements which could apply to both types of loans. Based on some of the preliminary reports from the SBA, it appears it applies to both SBA and non-SBA loans.

3. These monies are subject to availability in the funding of Congress. Some think the way we are going with our Federal bailout, we are going be out of money before the economy we are trying to save.

4. You don’t get these monies unless you are a viable business. Boy, you can drive a truck through that phrase. Our friends at the SBA will determine if you are “viable” (imagine how inferior you will be when you have to tell your friends your business was determined by the Federal government to be “non-viable” and on life support).

5. You have to be suffering “immediate financial hardship”. So much for holding out making payments because you’d rather use the money for other expansion needs. How many months you have to be delinquent, or how close your foot is to the banana peel of complete business failure, is anyone’s guess.

6. It is not certain, and commentators disagree, as to whether the Federal government through the SBA will make the loan from taxpayers’ dollars or by private SBA licensed banks. In my opinion it is the latter. It carries a 100% SBA guarantee and I would make no sense if the government itself was making the loan.

7. The loan cannot exceed $35,000. Presumably the new loan will be “taking out” or refinancing the entire balance on the old one. So if you had a $100,000 loan that you have been paying on time for several years but now have a balance of $35,000 and are in trouble, boy do we have a program for you. Or you might have a smaller $15,000 loan and after a short time need help. The law does not say you have to wait any particular period of time so I guess you could be in default after the first couple of months.

8. You can use it to make up no more than six months of monthly delinquencies.

9. The loan will be for a maximum term of five years.

10. The borrower will pay absolutely no interest for the duration of the loan. Interest can be charged, but it will be subsidized by the Federal government.

11. Here’s the great part. If you get one of these loans, you don’t have to make any payments for the first year.

12. There are absolutely no upfront fees allowed. Getting such a loan is 100% free (of course you have to pay principal and interest after the one year moratorium).

13. The SBA will decide whether or not collateral is required. In other words, if you have to put liens on your property or residence. My guess is they will lax as to this requirement.

14. You can get these loans until September 30, 2010.

15. Because this is emergency legislation, within 15 days after signing the bill, the SBA has to come up with regulations.

Here is a summary of the actual legislative language if you are having trouble getting to sleep:

SEC. 506. BUSINESS STABILIZATION PROGRAM. (a) IN GENERAL- Subject to the availability of appropriations, the Administrator of the Small Business Administration shall carry out a program to provide loans on a deferred basis to viable (as such term is determined pursuant to regulation by the Administrator of the Small Business Administration) small business concerns that have a qualifying small business loan and are experiencing immediate financial hardship.

(b) ELIGIBLE BORROWER- A small business concern as defined under section 3 of the Small Business Act (15 U.S.C. 632).

(c) QUALIFYING SMALL BUSINESS LOAN- A loan made to a small business concern that meets the eligibility standards in section 7(a) of the Small Business Act (15 U.S.C. 636(a)) but shall not include loans guarantees (or loan guarantee commitments made) by the Administrator prior to the date of enactment of this Act.

(d) LOAN SIZE- Loans guaranteed under this section may not exceed $35,000.

(e) PURPOSE- Loans guaranteed under this program shall be used to make periodic payment of principal and interest, either in full or in part, on an existing qualifying small business loan for a period of time not to exceed 6 months.

(f) LOAN TERMS- Loans made under this section shall:

(1) carry a 100 percent guaranty; and

(2) have interest fully subsidized for the period of repayment.

(g) REPAYMENT- Repayment for loans made under this section shall–

(1) be amortized over a period of time not to exceed 5 years; and

(2) not begin until 12 months after the final disbursement of funds is made.

(h) COLLATERAL- The Administrator of the Small Business Administration may accept any available collateral, including subordinated liens, to secure loans made under this section.

(i) FEES- The Administrator of the Small Business Administration is prohibited from charging any processing fees, origination fees, application fees, points, brokerage fees, bonus points, prepayment penalties, and other fees that could be charged to a loan applicant for loans under this section.

(j) SUNSET- The Administrator of the Small Business Administration shall not issue loan guarantees under this section after September 30, 2010.

(k) EMERGENCY RULEMAKING AUTHORITY- The Administrator of the Small Business Administration shall issue regulations under this section within 15 days after the date of enactment of this section. The notice requirements of section 553(b) of title 5, United States Code shall not apply to the promulgation of such regulations.

The real question is whether a private bank will loan under this program. Unfortunately, few will do so because the statute very clearly states that no fees whatsoever can be charged, and how can a bank make any money if they loan under those circumstances. Sure, they might make money in the secondary market, but that is dried up, so they basically are asked to make a loan out of the goodness of their heart. On a other hand, it carries a first ever 100% government guarantee so the bank’s know they will be receiving interest and will have no possibility of losing a single dime. Maybe this will work after all.

But there is something else that would be of interest to a bank. In a way, this is a form of Federal bailout going directly to small community banks. They have on their books loans that are in default and they could easily jump at the chance of being able to bail them out with this program. Especially if they had not been the recipients of the first TARP monies. Contrary to public sentiment, most of them did not receive any money. But again, this might not apply to that community bank. Since they typically package and sell their loans within three to six months, it probably wouldn’t even be in default at that point. It would be in the hands of the secondary market investor.

So is this good or bad for small businesses? Frankly, it’s good to see that some bailout money is working its way toward small businesses, but most of them would rather have a loan in the first place, as opposed help when in default. Unfortunately, this will have a limited application.

Wouldn’t it be better if we simply expanded our small business programs so more businesses could get loans? How about the SBA creating a secondary market for small business loans? I have a novel idea: for the moment forget about defaults, and concentrate on making business loans available to start-ups or existing businesses wanting to expand.

How about having a program that can pay off high interest credit card balances? There is hardly a business out there that has not been financing themselves lately through credit cards, simply because banks are not making loans. It is not unusual for people to have $50,000 plus on their credit cards, just to stay afloat. Talk about saving high interest. You can imagine how much cash flow this would give a small business.

We should applaud Congress for doing their best under short notice to come up with this plan. Sure this is a form of welcome bailout for small businesses, but I believe it misses the mark as to the majority of the 27 million business owners that are simply looking for a loan they can repay, as opposed to a handout.

Easy Small Business Loans Overview: How to Prepare Your Business for an Online Loan Application

Loans for small businesses aren’t known to be very easy to get – especially for start-ups. Online lenders have made it a bit easier for owners of smaller companies to apply for financial funding. There are solutions for equipment financing, inventory purchasing, participation in vendor programs, expansion, real estate, and more. Whatever your needs, you can use the internet to find easy small business loans.

Look for a lender that doesn’t have a long, drawn-out application process. The SBA has that problem, making it difficult for those who are just starting out, or who don’t have very good credit. However, if you do have bad credit, you still might only qualify for a secured loan, even if you use an online lender.

Never apply for a loan without first carefully understanding the repayment terms and interest rate, no matter how easy it might be to get. You don’t want to get cheated out by having to pay a lot of extra money over time. How much time will you be given to repay the loan, and what is the frequency of the payments you will be expected to make over that period of time?

Be careful not to borrow more money than required. What if you miss a payment and the interest rate goes up? You might end up paying back more money than it would have cost in the first place to pay out of pocket or with a credit card. While it might not be possible to calculate the exact amount you’ll need, have a financial advisor help you with the estimate. Don’t have one? Some online lenders actually offer free tools to help you with the estimate.

Show a Plan for Easy Small Business Loans

If you are able show how exactly the money will be used, and that you have a plan in place for paying the money back, then you will be more likely to be approved. Some lenders of easy small business loans will look at more than just your credit score. It is only one part of the entire picture, so even if it is low, you still might qualify for a loan if you are able to put together a good, sound business plan.

If you are going to be applying for loans online, check the website’s security policy. Ann of the sensitive data should be transmitted via SSL encryption.

Now that you have a better grasp of what to expect with online easy small business loans, it’s time to start looking for a lender that meets all of the criteria. US Business Funding is the place to start. With its 24-hour funding process, easy application, 95% approval rate, and flexible term / payment options, you can’t go wrong with US Business Funding.

Students Guide To Making Money To Pay Student Fees Without Student Loan Consolidation

Student loans are a major factor in making students get in debt, just to have a good education. Student debt consolidation can make the problem worse, as you keep adding debts. Another alternative is to use your own initiative by bootstrapping and making your own business to pay for your tuition fees.

So, you want to leave the student loan consolidation, and find alternatives to pay for your tuition fees. Paying your student tuition fees without the need of student loan consolidation is possible, when you take a look at what is available to you. As you are reading this likely online, then I will focus on online methods, as the internet is a great place to start a project which can pay your student tuition fees, your student loan, and hopefully provide you a long term nest egg.

Now you may be thinking that starting your own business would be a costly venture marked with loads of risk. You are absolutely right, if you want a McDonald’s franchise, but what we are looking for is something small that has potential to grow, depending on how much time you invest into this.

Even with only a few hundred dollars, you could soon be on your way to not needing a student loan consolidation loan; you could even start with no money! Now, you may be wondering how is it possible to not get a student loan consolidation loan and be able to pay your student tuition fees.

First we need to take stock of your abilities, and here is where an important key will come in. Consider what you are good at, maybe it is a subject you are studying, maybe it is your passion or your hobby.

The areas we will focus on are eBay, Affiliate Marketing, and Freelancing. All these options are easy to get into, and with consistent effort, can bring you many rewards. Let us begin by looking at an example – a student who likes to DJ. In this example this person could sell on eBay DJ products, music or many other items. As an affiliate marketer you could do the same thing, but with your own web site, and with freelancing, you could make music or mix music for people who need music made.

You may be wondering what is all of these different options, you may have heard of eBay or you may not, you may have heard of affiliate marketing or you may have not. I will cover these so you can get a firm grip of how important they can be to pay student tuition fees, and also cut out the need to get a student loan consolidation program in effect.

eBay to cut out getting student loan consolidation loans:

eBay is an online auction platform. Each day millions of dollars worth of products are sold all across the world through eBay’s auction platform. The best way to cut out the need to get a student loan consolidation just to fund your new venture, is to look at old things you no longer need. You could sell old things you do not need, then you could find wholesalers or suppliers selling what you want to sell. You make a mark up (your profit – costs), and continue to do, and increase profits (part of which can be used to mitigate the need of student loan consolidation loans).

Affiliate Marketing to cut out getting student loan consolidation loans:

Affiliate marketing is similar to selling on eBay, the only difference, is that you are promoting a product which someone else sells and delivers, and pays you commission. This makes starting this project very easily to cut out the need for extra student loans or student loan consolidation loans. Though be aware that you will need to learn about online marketing and find the right formula that works for you.

Freelancing to cut out getting student loan consolidation loans:

Freelancing is pretty easy to get started in. For one, you do not need to have money in most cases to get started. If you have an experience or are studying a subject, you may have knowledge and skills which others would be willing to pay you for your time. eLance and other websites allow you to put up your details, and bid for jobs. These jobs can easily be worked around your busy student life schedule! It can also be a great way to earn money, some people even find that it pays a full times salary, depending on how much time you put in.

There are many ways to get started to earn money, and reduce the need for student loan consolidation loans. So many students today get into debts which could take over a decade to pay back. By taking your own initiative, and with calculated risk, you could easily get into a position that gives yourself a life long enjoyable career. Debt into wealth!

Finding Right SBA Loan For Your Business

Whether you are thinking of starting a business or you are already running one, money is your lifeline. Small businesses have financing as a major factor in keeping their businesses afloat and sometime getting funding for the same proves to be most beneficial for them. Small Business Administration, SBA, helps piece it together for the small businesses. It offers them the funding that they need to operate the businesses and even grow them.

This is a federal government agency that has come through for many small businesses. Instead of lending the money directly to the businesses, it sets and uses guidelines for the loans through partners like credit unions, micro-lending institutions, banks and community development organizations. SBA eliminates lender risks by guaranteeing repayment of portions of loans granted. It can be termed as a win-win situation because the business people get the funding they need and the lenders get assured that the loans will be repaid making the agency very beneficial. The loans simply offer access to capital at lowest costs without the requirement to give up equity.

The loan programs

Important to note is that SBA loan programs are specifically structured for small businesses that do not have access to other kinds of financing. As a small business person, you should be familiar with the loan programs so you are able to apply for the right one for your business.

7 (a) loan program – It is the primary program meant to assist startups as well as existing small businesses that need financing. The loans are basic and the money can be for general business purposes like equipment, machinery, working capital leasehold improvements, fixtures and furniture and other business needs. You can basically take care of business acquisitions, consolidating unsecured debts into a new loan, large inventory purchase and business expansion.

CDC/504 loan program – This loan program under SBA offers long term financing purchase of large assets. The assets can include commercial real estate, buildings and land or even equipment. The loans usually cover 40% of total project cost, participating lender covers 50% and the borrower puts up the last 10%. Loans under this program are never used for inventory or capital.

Disaster loans – Businesses can be affected by disasters and this can be devastating for any business. SBA extends the disaster loans to businesses that are affected by disasters that have been declared. The low interest loans are structured to assist in replacing or repairing damaged machinery, personal property, business assets, inventory and equipment. You will basically manage to get back on your feet after disaster strikes at very low interests using this loan program.

Microloan program – The loan program gives very small loans to business startups, growing businesses or newly established ones. They usually have designated intermediary lenders by the SBA most of which are nonprofit organization with some experience in technical and lending assistance. Even though the small loans cannot be used for the payment of existing debts or real estate purchases, they still come in handy for purchase of fixtures, equipment, machinery, supplies and inventory or used as working capital.