Tag Archives: unsecured loans

Financing Your Business: Business Loans & Cash Advances

Financing Your Business: Business Loans & Cash Advances

Find out how you can finance your business with Creditwindow.

There are a number of ways you can finance your business – whether you’re just starting out or whether you’re looking to take your business to the next level.

Unfortunately, with the state of British banks, business loans have been far harder to come by as high street banks simply will not lend, which is why Creditwindow is seriously starting to look at how we can help British SMEs get back on their feet.

Currently we’re offering a business cash advance through Working Capital – a company that can give businesses up to £500,000. To find out more about how this works please read “Creditwindow expands into business finance.”

We are also looking at more traditional business loans that are offered through banks and lenders who are willing to fund small businesses.

Let’s face it – both the Government and Bank of England claim that small business growth is the key to getting out of the economic downturn, however, they are doing very little to aid this growth.

Here at Creditwindow we believe in British business and we intend to do everything we can to find the best sources of finance for you. Keep an eye on our business loan section. We understand that one form of finance may not suit every business but we will continue to work towards supporting small business throughout the UK.

Images from FreeDigitalPhotos.net

Wonga Payday Loans… For Business?!

Wonga Payday Loans... For Business?!

Wonga Payday Loans... For Business?!

When I read that Wonga were entering the business loan sector I have to admit I laughed to myself… especially if their business loans work in the same way as a payday loan.

Well I took a look at the website and I was… not surprised. It’s essentially a duplicate of their standard website and they use the same “slider” system they have on their payday loan counterpart.

With a lot of businesses facing another recession and difficulty in obtaining finance the idea behind Wonga business loans is a good one, however, I have a feeling that they should be turned to as a last resort – much like a payday loan. In fact the Financial Times have already said that businesses face yearly APRs of 280%… cheaper than a payday loan but still a bit concerning when you compare it to a standard unsecured loan.

However, I’m not one to go off on an tirade like an angry politician or an ambitious journalist. I believe that there is space for an alternative form of finance for businesses – whether they turn to a Wonga business loan or look to a business cash advance.

Wonga are offering up to £10,000 over a loan period of 10 – 52 days (seems a bit short to me) and is a relatively quick, painless process.

For a small business unable to obtain credit it may be worthwhile checking out their business loan offering… it could mean the difference between business growth and stagnation. If I were in a situation where I needed this type of loan I’d certainly consider it as an option.

Which Loan Is Right For You?

Which Loan Is Right For You?

Which Loan Is Right For You?

There are many different types of loans available on the market today. Each one has its pros and cons, depending on your personal circumstances. Creditwindow works closely with a wide range of loan and credit card providers who offer various different financial products. In addition to this, many of our lenders will even consider applicants who have a poor credit history.

  1. Payday Loans
  2. Personal Loans
  3. Guarantor Loans
  4. Logbook Loans
  5. Credit Cards
  6. Debt Consolidation Loans

1. Payday Loans

A payday loan is a fast, short-term solution to a temporary financial problem such as car repairs, unpaid bills, etc. You only borrow the money for a few weeks, so you’re not being faced with long-term debts, as you would with a longer term solution such as a guarantor loan.

Most payday lenders offer loans between £80 and £1000, as long as you meet their lending criteria and can demonstrate that, when payday arrives, you will be able to repay the debt plus the amount of interest charged. Payday loans are easy to apply for and the money is paid direct into your bank account the same day (with few exceptions).

2. Personal Loans

A personal loan is a way of borrowing money over a fixed period at an agreed interest rate. You repay a fixed amount each month (or each week, with some loans), which includes part of the capital borrowed plus interest. Personal loans are usually taken out for periods of between one and five years.

Most personal loans are for larger sums than that offered by payday loans, between £5,000 to £15,000 is common. There are two types of personal loan; secured and unsecured. With a secured loan you use an asset, such as your car or your house – as security on the loan, and if you don’t repay the loan you could lose that asset. With an unsecured loan you do not need to provide any form of security. Personal loans have much lower interest rates than payday loans, logbook loans or credit cards.

3. Guarantor Loans

A guarantor loan is another form of personal loan – usually up to £3,000 (but some lenders can offer more). Unlike secured loans you are not asked to provide any collateral as security. Instead, you are asked to provide a guarantor; somebody who knows you and who is willing and able to pay the loan if you are unable to do so.

The guarantor should be someone who knows you very well, a close friend or even a member of your family, for example. If they agree to act as your guarantor, they trust that you are able to repay the loan but they accept that there may be a risk that they will need to pay it if you fail to do so.

4. Logbook Loans

Logbook loans are a short-term solution without the need for credit checks. Instead, the logbook loan is secured against your car or van, which you can still drive throughout the loan period.

Depending on the value of your vehicle, logbook loan providers can lend anything between £500 to £100,000 (in very few instances) which you repay over an agreed period, making regular repayments on a weekly or monthly basis. Logbook loans are usually paid out on the same day that you apply, which is perfect in an emergency. If you fail to repay the logbook loan, you run the risk of the lender repossessing your car.

5. Credit Cards

When used responsibly, a credit card is a really useful, easily accessible way of borrowing money, as well as being a secure way to pay for items. If you repay the balance in full each month you could use your credit card to borrow money interest-free for an extended period, and some credit card providers offer a range of other benefits,
such as cashback, air miles, points for loyalty schemes, product discounts, etc.

Credit cards are accepted by many different types of online and offline retailers, including shops, pubs, petrol stations, cinemas, etc. Credit cards can often be used all over the UK as well as abroad. In addition to this you also have the option of using credit cards to withdraw cash from cash machines.

6. Debt Management Loans

A debt management loan consolidates numerous debts into one manageable cost. It covers the total cost of all your other loans and debts, including early settlement charges that you may incur. Essentially all your other loans are settled by a debt management company and you pay that company each month rather than each of
the individual lenders.

If you’re juggling a number of debts, with differing interest rates, to a
variety of lenders, then having just a single payment is much easier to handle. In addition to this, depending on the interest rates you are being charged by those original creditors, a debt consolidation loan could prove to be a much better option, as the rate could be much lower.

Payday Loans – A Short Term Solution?

More and more UK borrowers are being turned down for credit right now. However, that doesn’t hide the fact that we all need a little financial help now and again, especially as we emerge from one of the worst recessions in history. So, when you need extra money to pay for unforeseen expenses there is certainly no harm in considering a payday loan as a viable option.

The vast majority of people are usually accepted for payday loans without a glitch and you don’t need a great credit score. The only real lending criteria you need to meet to get a payday loan is a full-time job with a moderate salary, to be a permanent UK resident, and to be over 18.

But what kind of things should you consider taking out a payday loan for? Well they can be used for practically anything – from funding a short break to seeing you through until the end of the month when funds are tight. But here’s a list to give you some “food for thought”:

  • Petrol costs
  • Utility Bills
  • Groceries
  • To assist with mortgage repayments
  • and more…

To find out more about payday loans please visit Payday Loans – More Information.

Guarantor Loans – what are they and how can they help?

With the introduction of Guarantor Loans, finding an unsecured loan despite a poor credit score has become even easier than ever before.

Guarantor loans are a specialist form of personal loan that allows borrowers with a weak credit history to get a loan of between £1000 – £3000. As long as you can find someone to act as a guarantor and back your application then there is a strong likelihood that you will be accepted and allowed to borrow an agreed amount.

Since Guarantor loans are effectively an unsecured loan, meaning that the loan isn’t secured against property or some other asset, they are particularly well suited to the following types of individuals:

  • Homeowners – with equity or without in their property
  • Tenants – either private of local council authority
  • Borrowers co-habiting with members of their family

Most importantly credit scores are not used to underwrite a guarantor loan application and, in each case, many lenders will review each case. This is always carried out by a financial expert who understands the lending industry and issues faced by many consumers, especially in the current economic climate.

Alternatives to Guarantor Loans:

Payday Loans

Logbook Loans

Secured Loans – A Few Thoughts

Secured Loans – A Few Thoughts

Find out more about secured loans and why they might be the right loan for you.

A lot of talk is spoken about unsecured loans and credit cards, however, there appears to be less information with regards to secured loans.

This post will touch upon some of the key differences and benefits of a secured loan over traditional unsecured lending.

Like any form of credit, secured loans have their pros and cons, however, you may find that the benefits simply outweigh the negatives, especially if your credit score isn’t up to much but you need to borrow a significant sum of money.

A secured loan is essentially credit that is secured against the borrowers asset, for example a house or car. So, in the event that you, the borrower, are unable to repay the secured debt then the creditor will take possession of the asset and may sell it to regain the amount lent, however, this is only done in very extreme circumstances.

In spite of this secured loans are ideal if you need a large sum of cash – for example, in excess of £25,000. The likes of banks and building societies are actually more willing to lend you a large sum of money over a long period of time (25+ years) if you have an asset to back the the loan.

If you are looking for a sum between £10K – £100K then a secured loan would be ideal, however, if you simply want a smaller amount, between £750 – £5,000 then you may be better off considering a payday loan or an unsecured guarantor loan as a cheaper alternative. In addition you won’t have to put up any of your assets to take out a loan.

Check out our secured loan section and find a loan to suit you.

Image: vichie81 / FreeDigitalPhotos.net

Loan Confusion – Keeping Things Simple

Loan Confusion - Keeping Things Simple

Find out more about the types of lending available in the UK and how to find the best loan for you.

When it comes to choosing which loan suits your needs it can be tough, especially with the ever growing variety of unsecured loans, credit cards, short-term payday loans out there.

Then, you have to also consider interest rates – and let’s face it, with the launch of payday lending, APR (annual percentage rates)* have become even more confusing.

Let’s keep things simple by taking a look at the main types of lending available:

Unsecured Loans

Unsecured lending can take a number of different forms, including:

Guarantor loans – available to people regardless of their credit history. As long as you have a family member, close friend or simply someone who is willing to guarantee loan repayments if you are unable to pay it back, then you may be able to take out a guarantor loan. The loan is simply secured against the good word of your guarantor.

Standard unsecured personal loan – just a straight-forward unsecured loan that allows you to borrow money without the need to provide security against it. The loan is secured against your good word (and the fact that you have a reasonable credit score).

Short Term Loans

A short term loan is better known as a payday loan – a form of clending that you can borrow with a fixed rate of interest that is due on your next payday. Payday loans are also known as 1 month loans as a result. It doesn’t matter what your credit score is as long as you are over 18, in full-time work, paid monthly, have a bank account and earn over £750 per month. It’s really as straight-forward as that.

Secured Loans

Secured loans really take two main forms. Standard secured loans are essentially loans that are secured against property so is only really available to people who have a mortgage and equity in their property. Since it tends to be a higher amount the repayments can be spread out over 30 years (if necessary), however, this is subject to your ability to repay the loan.

Logbook loans are another form of secured lending, however, you do not need a sqeaky clean credit rating to take out a logbook loan. In addition you could get the loan within a few hours. All that is required is that you own a vehicle that is in your name and finance free (i.e. you’re not still paying for it) then you could get the cash the same day.

Check out these related articles:

Which Loan Is Right For You?

Alternatives to Credit Cards

* Check out Understanding Payday Loan APR

Understanding Payday Loan APR

Understanding Payday Loan APR

Payday loan APR can be pretty confusing - check out Creditwindow's quick guide to annual percentage rates and find out more.

Did you know the payday loan annual percentage rate (APR) is probably the most controversial thing about payday loans? Well this is the one thing the back-bench politicians focus on because they want to further their careers by starting another pointless crusade…

Let’s take a minute to really take a look at the thing they’re all moaning about.

What is payday loan APR?

An APR or “annual percentage rate” is basically the interest payable on the amount borrowed and other related charges.

Payday loan companies are compliantly obliged to display what’s known in the industry as a “representative APR” or “average APR” – essentially a rate that applies to at least 51% of succesfull loan applicants.

What is included in a payday loan APR?

  1. The interest you have to pay.
  2. The length of the payday loan agreement, timing and frequency of repayments, as well as the amount of each payment.
  3. Certain fees associated with the loan – such as administration costs.

An APR assumes the rate of charge over a 12 month period and therefore shows interest and fees as an annual rate and all lenders, regardless of whether they’re payday loan companies or banks are required by law to tell you what the APR is before signing what’s known as a consumer credit agreement.

So – what’s the problem with showing the APR for a payday loan? Well it’s not really representative… at least not in the same way as a standard bank loan.

A payday loan is a short-term solution that can be taken out for any financial emergency, unexpected bill or if you simply need a cash top-up before payday.

Payday loans tend to have a life-span of 1 month – hence why a 12 month APR doesn’t really apply to this form of lending.

If you think about it – a loan that you pay back after a month only requires a fraction of the 12 month APR displayed when you succesfully apply for a payday loan. For example, if you take out a Payday UK loan over a month then, for every £100 borrowed you only pay back around £25 in interest on top of the £100. Granted you’d be paying back £300 on top of the £100 you borrowed if you repaid this back over a year – but who in their right mind would want to do this anyway?! This is why payday loans have a bad reputation and why you see APRs of 1000%+.

So – ask yourself, if I need a small, quick loan are payday loans as bad as they say?

Poor Credit Rating? Consider A Guarantor Loan

Poor Credit Rating? Consider A Guarantor Loan

Have you got a poor credit score and need money to start a business, buy a car or something else entirely - consider a guarantor loan to help get you started.

A lot of the personal loans or short term loans available for people with a bad credit rating tend to have high interest rates (APR).

Fortunately, the likes of guarantor loans have interest rates that are around the same as standard high-street bank loans. However, guarantor loans are for people with poor credit scores, unlike a standard unsecured loan from a bank.

Guarantor loans are growing in popularity, especially since they can offer larger loans over a longer period than standard short-term or payday loans. They’re especially good for young adults who want to take out a loan but don’t have the hottest credit rating. Essentially a parent or guardian can act as a “guarantor” for them so that, if they’re unable to repay the loan, the parent or guardian takes on the debt and repays it on their behalf.

This is probably the only significant downfall of a guarantor loan – you have to rely on the fact that your parent, guardian or friend will repay the loan if you can’t. You should only really consider this type of debt if you’re reasonably confident that you will be able to repay it or that your loan guarantor will be able to repay it if you’re unable to.

Its worth remembering that, unlike a payday loan, a guarantor loan can pay anything up to around £10,000 or more in some instances. It’s merely reliant on the good-word, financial status and credit history of your guarantor…

It probably sounds like quite a lot of hard-work – and it is, it’s no online payday loan application that’s for sure! But, if you need to improve your credit score and you need a large sum to buy a car, start a business or simply need to get yourself out of a rut then it might be worth considering.

Get A Guarantor Loan >>

A Quick Guide To Personal Loans

A Quick Guide To Personal Loans - unsecured loans, secured loans and guarantor loans.

A Quick Guide To Personal Loans - find out more about unsecured, secured and guarantor loans.

Unlike payday loans, personal loans are larger sums of money that you borrow over a long period of time.

The interest costs for personal loans can vary from lender to lender and will depend on whether the loan is secured or unsecured.

What is a Secured Loan?

A secured loan is a loan that is secured against an asset, such as your car or even home. If you are unable to repay the loan, the lender can sell your asset as a way of getting it’s money back. Whilst the APR interest rate on a secured loan tends to be less there could be additional fees and charges.

What is an Unsecured Loan?

Unlike a secured loan, an unsecured loan does not need an asset to guarantee the loan against. However, like any form of borrowing, you will need to repay the loan in full. If you fail to repay it the lender could take legal action against you in order to get its money back. It’s vital that you repay an unsecured loan in full as, if you default, your credit score could be severely damaged – meaning that you could be barred from taking out credit cards or personal loans for a number of years.

However, there are alternatives to unsecured loans, such as guarantor loans.

The only difference with guarantor loans is that they are secured against the word of a “guarantor” (a person who promises to repay the loan on behalf of the borrower). Whilst this tends to be a good form of borrowing, if neither you or your guarantor are unable to repay the loan then there could be serious implications.

In spite of the obvious advantages and disadvantages of each form of borrowing mentioned here, the main advantage is the positive affect they could have on your credit score if you repay them in a timely manner.

As a consumer you have a duty to protect your own interests and understanding the benefits of pitfalls of different types of lending is a significant step in the right direction.

To find out more about borrowing money and finding the right product for you, check out our other financial guides: