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Responsibly taking loans can increase the success of your business

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Author: Ravi Philemon

The business success or failure of your venture can hinge on responsibly taking loans

By: Hitesh Khan/

As you know, a loan is based on a simple idea: someone gives you money and you promise to pay it back, usually with interest. Loans are so common that you probably are familiar with the mechanics, but nevertheless it makes sense to review the basics.

responsibly taking loansThe business success or failure of your venture can hinge on responsibly taking loans: you want to borrow enough that your company can reach its potential but not so much that you have severe difficulty paying it back.

It can be a mistake to pour too much money into your business at the beginning. A fair number of small businesses fail in the first year, so raising and spending a pile of money for an untested business idea can lead to much grief – especially if you’re personally on the hook for borrowed funds. Consider starting as small and cheaply as possible.

You have many options when looking a loan for your business. For small ventures, responsibly taking loans means considering if friends and family members are willing to help. For sophisticated or mid-sized businesses, banks, cooperatives, and savings and loans may be willing to lend you money.

While a friend or relative may be willing to lend you money on a handshake, responsibly taking loans would tell you that this is a bad idea for both of you. It’s always a better business practice to put the loan in writing, and to state a specific interest rate and repayment plan. Otherwise, you open the door to unfortunate misunderstandings that can chill your relationship.

Close look at small business loan documents now could save you headaches later

Business success depends on borrowing money responsibly, you should also know how interest rates on your loans work.

Interest is a percentage of the amount that you owe that is added to your balance periodically as a fee for using the money. It will continue to accumulate until your debt has been repaid.

Interest rate is the percentage of the debt that is charged as interest. Every loan, mortgage, credit card, or medical bill that you ever will receive will have an interest rate associated with it. These can vary wildly between financial products, and also between consumers based on their credit histories.

It is very important for you to know how interest works, because otherwise you might not understand why your balance never seems to get any lower even though you are making payments, or just how much your debt really is costing you.

Interest rate is a fact of life, so understanding how they work is crucial to financial planning and debt repayment. Do not ignore the power that compound interest can have on your debts, but also remember that interest can work for you just as well as against you!

It is important to understand how Interest rate works as it affects you

Personal guarantee is an inherent part of responsibly taking loans and so business success but there are many ambiguities and misunderstandings that surround the topic of personal guarantees.

A personal guarantee is an unsecured promise from an individual to make loan payments when a small business is not able to do so. “Unsecured” means it is a promise that is not backed up by a specific asset, such as real estate, in which case, the asset would be considered collateral.

A personal guarantee is an added assurance that you are serious about your business – and most importantly – serious about repaying the loan. One big reason why a personal guarantee is needed is because most lenders are bankers and are in the business of accepting deposits. They use those deposits to make small business and other loans, and, as a result, they are responsible for protecting the interests of their depositors.

For business success, be mindful that while your small business may be a borrower, you are also a depositor. As such, you would be affected if an unscrupulous small business owner borrowed your company’s deposits and did not bother to repay them.

A personal guarantee is a psychological reminder to you of your company’s obligation to make timely payments and eventually repay the loan. If it fails, you are responsible. A personal guarantee shows your commitment to being a responsible business manager and repaying your business loan.

Financial affairs of a small business are commonly intertwined with the personal financial affairs of its owners, so it is logical and reasonable to ask you to promise to repay the loan, if your company cannot. A personal guarantee offers lenders the ability to follow the due process to recover the business loan from you personally.

If you believe in responsibly taking loans, you should speak to a loan consultant who can set you up on a path that can get you a it in a quick and seamless manner. Loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. You should also find out about money saving tips. You should also check out Affordability Tools which can help you make better property buying decisions. Calculators, are also an essential tool which can help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge.

The post Responsibly taking loans can increase the success of your business appeared first on iCompareLoan Resources.

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Costly refinancing mistakes to avoid to get the best deal mortgage

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Author: Ravi Philemon

Costly refinancing mistakes can be avoided if you have someone to give you good advice on that mortgage loan that you need

By: Hitesh Khan/

Starting the mortgage refinancing process can be intimidating, especially if you don’t have someone to give you the good refinance advice. The goal of refinancing is to trade in your current mortgage for a new one that helps you reduce your rate and build equity faster.

But making costly refinancing mistakes during the process is easy if you don’t have the good advice, and this can also result in higher costs for you. The good way to refinance, though, involves knowing the most common mistakes and how to avoid them.

Avoid costly refinancing mistakes by getting your credit together

A credit score is a number that the lenders consider before they determine if they should approve your application for loans in Singapore. It is a joint effort between all the major lenders here, where data about consumers’ credit history is pooled together and aggregated. Within the aggregated data, lenders would have access to records that show the number of accounts that you have across different banks, and your payment history.

After crunching the available data, each account holder is then assigned a credit score. This indicates how good or bad of a risk you might be to the lender as a customer. The higher the number (up to 2,000 and AA rating), the better your credit score.

Although the the exact weightage of how your credit score is calculated isn’t public knowledge, the factors that the Credit Bureau of Singapore (CBS) uses in determining your credit score is.

Factors like usage patterns of loan facility (e.g. if you have been making large purchases or transactions lately); your recent credit account activity (The number of credit facilities an account holder has is considered by banks as liabilities as they may perceive that you are over-extending yourself); and your account delinquency data, or how you have fared as a customer (this means where possible, always avoid making late or partial payments for your facilities).

Other factors considered by CBS include your credit account history, or how long you have been a customer (factors like if you have you been a loyal customer of your bank since you received your first credit card from them); how much available credit do you have (your credit score is affected by the number of accounts you have with various banks in Singapore); and enquiry activity of how many organisations have asked about you (having too many enquiries might indicate to banks that you could be taking on more debt than you should).

So if you looking for loans in Singapore, be disciplined in your spending habits to avoid going into debt, limit the number of credit facilities that you have across the different lenders, avoid defaulting on your repayments, and always paying your bills in full, on time. Also, avoid applying for accounts that you may not need.

Why you should refinance your mortgage loan while you still can

Costly refinancing mistakes can be made when you fail to compare lenders

costly refinancing mistakes

If you avoid costly refinancing mistakes, you can get the best home loans from banks in Singapore

One recent survey said that nearly half of all homeowners requested a quote from just one lender, and that consumers who received rate quotes from multiple lenders cut their interest rate by as much as 50 basis points (0.50%). That could be a savings of thousands of dollars. Your current lender or local bank may not offer the best deal.

A good refinance advice anyone could give you is to compare rates and fees from three to four lenders before you decide on one.

With a good number of local and foreign financial institutions here, the choice of a lender and its packages can be mind boggling. Imagine having to compare over hundreds of different loan packages and wondering which is best for you. Even if you are a specialist in finance, differences between the loans in Singapore are not so straight forward, because there are quite a few variables.

This is where an independent loan specialist maybe useful for you in your search for a loan which is the right fit for your needs.  Without any partiality, the independent loan specialist can compare a range of products and lenders. This will help you save time and money, avoid confusion, and improve your chances of getting approved, as well.

So if you are applying for home loans in Singapore, the lesson really is – never settle for the first loan you are offered as it might not be the right fit for you.

If your credit worthiness is suspect, getting the right loan may be more difficult but certainly not impossible, especially if you have the right independent loan specialist to help you in your search. Ad the best news is, the services of an independent loan specialist is often free.

For starters, you should read up more so that you have some basic understanding of how an independent loan specialist can help you in your search for the right loan.

Cost refinancing mistakes are made when you assume fees are non-negotiable

You don’t have to accept an offer “as is.” In addition to interest rates, many fees may be negotiable. Multiple offers may persuade lenders to compete against each other for your business. Third-party fees that which you pay for services like insurance and legal may be negotiable. Provided you have good credit and have done a little comparison shopping, you should have enough leverage to bargain for a better deal.

But it could be very intimidating to talk to all the lenders, be overwhelmed by all the paperwork, and tedious to compare the different mortgage loans you are eligible for. This is where the mortgage broker comes in. The mortgage broker is typically an experienced professional who is familiar with the loan approval process, and having worked with different banks, they know their criteria and what makes the cut.

Mortgage Broker Singapore – Should I use one?

Mortgage brokers like the professionals at iCompareLoan are independent, and so will be able to tell you which lender offers the most suitable loan package rather than selling the loan package from the financial institution they represent.

The post Costly refinancing mistakes to avoid to get the best deal mortgage appeared first on iCompareLoan Resources.

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Home loan prequalification makes home hunting process easier

Click on Home loan prequalification makes home hunting process easier
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Author: Ravi Philemon

Home loan prequalification makes home hunting process that much simpler, especially for first time home buyers.

By: Phoenix Lee/

There’s a lot of talk about home loan prequalification by mortgage brokers and real estate agents. There is a difference between loan pre-qualification and pre-approval. Pre-qualification, which in today’s marketplace is usually done by mortgage brokers, means working with the buyer to determine how much they can afford and which loans are the most likely to be available to them.

Home loan prequalification can save a buyer time and money, and can even be a bargaining tool with a seller, however, it is not the same as loan “pre-approval”. The mortgage broker can often get the buyer a pre-qualification letter. Pre-approval means that the lender has definitely committed to lending the buyer money once the house itself is approved. Since it is a much stronger pledge, it is a much more valuable negotiating tool.

Only a lender can give pre-approval, but your mortgage broker may be able to push through pre-approval from underwriters with as little as a phone call. So when you hear someone talking about “pre-approval” make sure that it is lender pre-approval.

Mortgage Myths

Surveys indicate that a large number of potential home buyers count themselves out of the market because of widely-held myths about home financing. Some of the most popular myths include:

  • home buyers need large down payments (more than is actually the case);
  • the loan process works against younger people with insufficient upfront capital to be used for down payment;
  • owning a home is more expensive than renting one; and
  • with the higher Additional Buyer’s Stamp Duty (ABSD) and Loan-To-Value (LTV) checks, the chances of getting a mortgage are almost impossible.

Many qualified first-time buyers looking for home loan prequalification, are were unaware of special programs designed especially to make a home affordable to them.

Several surveys have found that many people view the mortgage process as “difficult, stressful, and incomprehensible.” The home loan industry is always looking for new ways to dispel these myths because lenders want more business, not less. The alternatives to traditional 20% down, thirty-year fixed mortgages is astonishing. Mortgage brokers are experienced in explaining today’s financing and debunking the myths.

If you have found the perfect home in an area that you like, but are finding the perfect financing has become elusive;  If after you completed the application process, your lender has turned you down, and you are upset; Can anything be done to turn around this setback?

It depends on why you were turned down and why you are not approved for home loan prequalification.

Mortgage Broker Singapore – Should I use one?

If your income is too low to satisfy one mortgage company, there might be another company with more liberal qualifying guidelines. If you have had credit problems, some lenders may be more willing than others to help you clear them up in a manner that satisfies their underwriters.

If your loan runs into problems, sit down with a mortgage broker to investigate the possibility of using a different lender. The first company may be able to “assign” the package to a competitor, enabling you to use your same credit report and appraisal. You will need the cooperation of your sellers, too. While loan rejections are disappointing, they can have happy endings.

home loan prequalification

A quick view of how a mortgage broker can help you save money.

When shopping for home loan prequalification, there is no harm in asking lenders or brokers if they can give better terms than the original ones they quoted or than those you have found elsewhere.

A home loan often involves many fees, such as loan origination or underwriting fees, broker fees, and closing costs. Every lender or broker should be able to give you an estimate of its fees. Many of these fees are negotiable. Some fees are paid when you apply for a loan, and others are paid at closing. In some cases, you can borrow the money needed to pay these fees, but doing so will increase your loan amount and total costs.

Mortgage refinance online applications, does it trump in-person submissions?

Once you are satisfied with the terms you have negotiated, you may want to obtain a written lock-in from the lender or broker. The lock-in should include the rate that you have agreed upon, the period the lock-in lasts, and the number of points to be paid. A fee may be charged for locking in the loan rate.

This fee may be refundable at closing. Lock-ins can protect you from rate increases while your loan is being processed; if rates fall, however, you could end up with a less-favorable rate. If that happens, try to negotiate a compromise with the lender or broker.

If you are looking for good mortgage brokers because you are ensure of funds availability for purchase, trusted mortgage consultants can set you up on a path that can get you a home loan in a quick and seamless manner.

Good mortgage consultants have close links with the best lenders in town and can help you compare Singapore home loans and settle for a package that best suits your home or commercial purchase needs. You should also find out money saving tips.

Whether you are looking for a new home loan or to refinance your existing one, a Mortgage broker can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them.

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Taking loans are not always justified even if you need extra cash

Click on Taking loans are not always justified even if you need extra cash
for the source.
Author: Ravi Philemon

Every business needs extra cash from time to time, but taking loans is not always the best option

By: Hitesh Khan/

There are plenty of good reasons to take on debt: to launch new products, expand your business, or purchase needed inventory. Even though every business needs extra cash, there are also plenty of bad reasons for taking loans. Here are five.

1. To launch a new business idea before you have thoroughly researched it. Fads come and go; the goal is the find one that sticks. Before you decide to buy into the latest fad concept, spend some time doing market research and deciding whether or not the concept is a good match with your experience and interests. Many people think that owning a restaurant is glamorous but find out later that it is very hard work.

taking loans

Image credit: Public Domain Pictures

Although every business needs extra cash, you have to do your homework before taking loans as it is a serious financial commitment.

Personal guarantee is an inherent part of obtaining small business loans but there are many ambiguities and misunderstandings that surround the topic of personal guarantees. A personal guarantee is an unsecured promise from an individual to make loan payments when a small business is not able to do so. “Unsecured” means it is a promise that is not backed up by a specific asset, such as real estate, in which case, the asset would be considered collateral.

A personal guarantee is an added assurance that you are serious about your business – and most importantly – serious about repaying the loan. One big reason why a personal guarantee is needed is because most lenders are bankers and are in the business of accepting deposits. They use those deposits to make small business and other loans, and, as a result, they are responsible for protecting the interests of their depositors.

Be mindful that while your small business may be a borrower, you are also a depositor. As such, you would be affected if an unscrupulous small business owner borrowed your company’s deposits and did not bother to repay them.

A personal guarantee is a psychological reminder to you of your company’s obligation to make timely payments and eventually repay the loan. If it fails, you are responsible. A personal guarantee shows your commitment to being a responsible business manager and repaying your business loan.

Every business needs extra cash and the financial affairs of a small business are commonly intertwined with the personal financial affairs of its owners, so it is logical and reasonable to ask you to promise to repay the loan, if your company cannot. A personal guarantee offers lenders the ability to follow the due process to recover the business loan from you personally.

2. Your credit cards and lines of credit are maxed out. Even though your business needs extra cash, if you have exhausted all other available credit, maybe taking loans and more debt is a bad idea. When lenders see that you are overextended, you will likely be required to secure the loan with assets. If you are having difficulty paying your existing financial obligations, you are entering risky territory by gambling with your facilities, inventory, equipment, or even worse, your own house.

3. To make an impulse buy you can’t afford. Perhaps there is a new technology or machinery you think would benefit your business, or maybe you want to remodel or upgrade your facilities. While all of these things may prove advantageous to your business, you won’t be able to reap the rewards if you have leveraged all of your assets and the extra profits you make go toward repaying the loan. If the idea doesn’t bring in extra revenue, you are still responsible for paying back the loan. If you used assets to secure the loan, you may end up without a business at all.

4. You saw an advertisement or received an email about unbeatable interest rates. As the old adage goes, if it sounds too good to be true, it probably is. And on the outside chance that it is true, just because you can get a great interest rate doesn’t mean you should.

5. You want to consolidate your debts but haven’t learned how to budget. Maybe your company is going through a tough time, or maybe you have mismanaged your company’s finances and are now looking to consolidate all of your debts. Debt consolidation may ease the pressure temporarily, but you need to address the underlying problem if you want your business to succeed.

Knowing how much extra cash you need involves choosing from a vast array of alternatives for taking loans. Debt or equity? Secured or unsecured? Are you at start-up, already launched, profitable, looking for exit / succession funding? How much resources have you committed to growing business funds?

Probably the most common mistake we find among those seeking financing for their business is the idea that someone else will stake them to their dreams without them taking a large share of the risk.

Think about it – how much confidence will a lender or investor have in your proposal if you don’t have enough confidence in it yourself to put your own resources at risk? So, the most basic rule of financing business is to commit yourself and your savings or resources to the business.

For a start-up business, which might not be able to obtain funds on credit, the owner will have to come up with capital, such as from personal savings. No matter where else you look for funding, the money you put in is a strong sign of good faith and commitment to other lenders. Consider borrowing from friends and relatives and /or selling off surplus assets to provide the funds you need.

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Cash crunch can incapacitate startups if they are not addressed quickly

Click on Cash crunch can incapacitate startups if they are not addressed quickly
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Author: Ravi Philemon

If you are facing a cash crunch situation, especially if you are a startup, a mindset shift is required

By: Hitesh Khan/

We are conditioned to begin the process of looking for new business opportunities by asking: “Where is there a gap in the market and how can I fill that gap?” A gap could be an unfilled customer need or a new invention yet to be brought to market.

Next, we establish a goal to create a venture that will fill that gap. We consider the resources necessary to make our goal a reality and go out in search of those resources. We write a business plan and present it to potential financiers with the promise of a return on investment.

If the financiers like us and like our idea, they provide us with the capital to start the business. If not, we are stuck. Most times, people find it difficult to raise the resources they require, causing the entire project to fall on its head.

There is an alternative route to creating a new venture. Instead of starting with the question, “Where is there a gap in the market and how can I fill it?” ask yourself, “What do I have and who do I know?”

cash crunch

Image credit: Flickr l Aleksandr Zykov

Carefully examine the resources and relationships over which you have influence, and consider how you can put these to work quickly and effectively to create an offering that the market needs or wants. You can experiment using different combinations of resources to test how the market responds to different offerings and over time create an offering that is really valuable to others.

With this approach, an entrepreneur’s goals emerge over time, taking resources, connections and contingencies into account.

They are not fixed at the start of a project as they are when the traditional approach is applied.

More stringent personal loan restrictions to kick in from next year

Here are some principles and guidelines that will provide you with a better chance of effectively launching a business when you are facing cash crunch.

1. Start with what you have

At the outset of looking to start a new business while facing cash crunch, take stock of what you have at your disposal. Consider your:

  • Skills – what can you do?
  • Experience – what have you done in the past?
  • Knowledge – what do you know?
  • Tangible resources – what do you own and what do you have access to?

2. Take into account who you know

What you have needs to be combined with who you know for it to have real power. Take stock of the relationships you have with others, map out your network of connections and consider how your connections could enable you to use what you have more effectively.

3. Invest what you can afford to lose

There is a big difference in your mindset if you start with the perspective that “I am investing this amount and I expect a 30% return” versus “I can afford to lose this much, therefore I will put it into the business and see if I can make it work”.

If you have only put in what you can afford to lose, you maintain flexibility in the business and minimise stress in managing it. If you are only willing to invest when you expect that you can get a specific return, there is a strong chance that you may never take the leap and launch the business you always dreamed of owning.

An example of this is the entrepreneur who refuses to leave a well-paying job until he finds an opportunity that he predicts will pay more, versus one who decides to invest a small portion of her savings and two years of her life in a project that she believes is worth that amount of time and money – irrespective of whether it will pay more than what she currently earns.

This is one good reason why those having cash crunch should never not consider using a personal loan to finance their businesses.

5 tips for boosting your chances of getting personal loans

4. Experiment and adapt

With this mindset, flexibility and adaptability are a competitive advantage. You succeed not by becoming too fixated on a single goal or outcome but by being responsive to changes in the environment. Existing firms typically take longer to adapt than new firms because they have more incentive for things to remain the same and they have established routines and practices that reinforce the status quo.

New firms are not tied to the way things have always been done and thus entrepreneurs can benefit from shifts in consumer preferences, or shifts in technology or changing legislation by realigning their businesses to take advantage of such developments.

If you want to expand your business but is having cash crunch, you should speak to loan specialists. Loan specialists can set you up on a path that can get you the best business loans in a quick and seamless manner. Loan specialists are able to not only pre-qualify you with multiple lenders and compare rates and terms, they are also able to get you the best personal loans which has costs and payments that fit into your budget.

To lower the cost of borrowing, try to convince your lender to give you a better rate. You should negotiate with your lender and they may be willing to cut the interest rate to secure your business, and so the loan will cost you less. If you are uncomfortable about negotiating, you should engage the services of a loan specialist.

Loan specialists will not only be able to negotiate a better rate for you, they will also be able to help you compare the best personal loan offers from among the different ones given by the many banks. It also makes sense to engage loan specialists because their services are usually free.

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Confidently refinance by putting all options on table

Click on Confidently refinance by putting all options on table
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Author: Ravi Philemon

You can confidently refinance only when you know that financial institutions will carefully assess the risk of dealing with you before suggesting solutions

By: Hitesh Khan/

A strong management team
Before you venture out and confidently refinance and choose your lender for solutions, be sure you clearly understand their expectations. Any financial institution will want to verify that your company is well managed. Being profitable is one thing, but ensuring that you have the team in place to sustain growth is another. Start by demonstrating that your team members are competent and well-qualified to do the job.

confidently refinance

image credit: Alpha Stock Images

Before seeking business solutions and confidently refinance, it would help to prove your successful track record by communicating past achievements and the soundness of your plans.

Comprehensive financial strategy
If you have a cash-flow problem, you need to show how you plan to avoid a recurrence of this situation. Present conservative financial forecasts to include different scenarios, i.e., best-case and worst-case. Be sure to clearly communicate how well you understand your financial needs and the factors affecting your business success.

Using credit wisely requires a lot of common sense and discipline

An important part before seeking business solutions and confidently refinance is to understand how your level of risk is determined by assessing basic financial concepts, such as working capital, collateral and balance sheet.

Keep in mind that forecasting can be a complex task. It may help to rely on financial specialists to help you develop an effective business plan.

Proactive growth strategy
You need to demonstrate that you understand the risks and opportunities for your company. Your strategy is a result of looking closely at internal resources, the market, the economy, competitors, marketing and distribution channels and demographics.

A clear restructuring plan
If you are dealing with temporary difficulties, you should provide a restructuring plan. More detailed than a financial analysis, it includes measures to rectify an unprofitable position. The plan can present business refinancing solutions as one way to re-establish positive working capital by improving the terms and conditions of your current loans. Restructuring can include the sale of non-essential assets and inventory, which may generate additional one-time revenue.

A restructuring plan performs the same function as a business plan and must therefore serve as a guide for continuing operations. Like a financial forecast, it will be more convincing if it contains input from outside consultants who can help you with what can be a complex process.

Proof that you can repay
To obtain financing, you must prove your repayment ability, particularly if your company is in difficulty. Your earnings forecast should be conservative to avoid giving the lender any cause for concern. Before any new loan is approved, the financial institution will double-check your business credit and capacity.

Your chances of obtaining business refinancing are greater if you have:

  • good credit history by always fulfilling the repayment conditions on your previous loans,
  • credible financial forecast. and
  • an honest and courteous relationship with your account manager.

Personal guarantee is a must for most small business loans but should be made with caution

If you do feel that the debt you have might be a problem, here are a few tips for improving the situation:

  • Determine how much debt you have, and put together a plan for repaying it. If you’re currently paying the minimum amount required on your loans, stop doing so, and pay the maximum you’re able to. If you pay the minimum, it will take you 20-40 years to pay off the balance, meaning you’ll pay more than five times the actual debt in interest.
  • If you have multiple loans, pay off the ones with the highest interest rates first.
  • Consider refinancing to a loan that offers a lower interest rate.
  • If you’re a homeowner, consider a home equity loan. The rate will usually be significantly lower than that of a personal loans, and the interest on these loans is generally tax deductible.
  • Avoid luxuries, impulse buying, and any unnecessary spending.
  • Keep track of your expenses so you can determine where your money is going and keep a tight lid on expenditures that are higher than they need to be.
  • Limit your credit usage to the bare necessities. If the situation is dire, try to stop using your credit cards entirely.

Before searching for solutions and confidently refinance, you will need to gather key information and required business documents to support your application. The requirements will vary greatly depending on the type and amount of credit, from basic information for a credit card to full financials for a major term loan.

It is important for the business owners to have a clear understanding of their financial situation and objectives – keeping them in mind in order to acquire the best refinancing loan for them. Business owners with good credit can get special deals on their closing costs from various lenders. In these cases, getting the best refinancing loan may make sense as it helps them to achieve lower interest rates.

Achieving better credit scores is another great reason to get the best refinancing loan. If business owner’s credit score has gotten better because mortgage payments have been made on time, the owner may be able to take advantage of that improved credit by refinancing into a loan with lower interest rates decreased payments.

If the owner has paid off a car, inherited a sum of money, or received a bonus at work, if the owner is planning to own their home into retirement, refinancing down from a 25-year loan to a 20 or a 15 year loan may be a good move financially. The payments will rise, but the extra money can be used to cover the difference.

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Pasir Ris Central – The Most Iconic Integrated Development in Singapore in 2020

Click on Pasir Ris Central – The Most Iconic Integrated Development in Singapore in 2020
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Author: iCompareLoan Editorial Team

Image Credits: Pasir Ris Central, by ALLGREEN Properties Ltd

Towering over the Pasir Ris MRT Station in District 17, Pasir Ris Central is an upcoming integrated development that will contain over 480 apartments and a whole lot of amenities. Being placed right between the Changi Airport and the Paya Lebar Air Base, this compound is definitely a perfect choice for frequent travellers and homeowners who love the sound of planes taking off.

With the Terminal 5 expansion and the newly completed Jewel project, the Pasir Ris Central compound will be placed in a growing residential area that will offer more employment opportunities. While the first apartments will be completed by the late of 2020, most of the compound will be completed in the next few years, with the deadline in 2024. With it, the owners should wait for the completion of the Cross Island MRT line, which will make it super easy to travel to other parts of Singapore.

In addition to being placed in an area that is growing extremely fast, Pasir Ris Central is poised to become a small town in itself, filled with parks, malls, coffee shops, and many restaurants. From your new home in the Pasir Ris Central, you’re at just a 5-minutes bike ride to the Pasir Ris Park, a gorgeous park featuring over 70 hectares of trails and forest. Additionally, you are a few minutes from the newly opened Hawker Centre that offers you all the food you need to please your taste buds.

Pasir Ris Central – The Project of the Decade in Singapore

As the number of expats moving to Singapore is on a steady rising curve, the need for a residential neighbourhood close to the airport is as big as ever. That’s how Pasir Ris Central came to life.

This iconic development promises to exceed your wildest dreams. In terms of connectivity, you have the Pasir Ris MRT, Expressway TPE, and Pasir Ris Bus Interchange. For shopping, you’ll get a new integrated mall, plus Downtown East and White Sands.

If you have young kids, you’ll be able to send them to some of the best schools in the area, namely the Hai Sing Catholic School, Elias Park Primary School and Overseas Family School. In terms of recreation, you’ll be able to enjoy the Downtown East, Pasir Ris Park, and of course the Jewel @ Changi.

Perfect Connectivity with Other Areas of Singapore

This huge complex integrates a town plaza, several parks, a commercial park, a polyclinic, several schools, and perfect connection to public transportation. After the new Terminal 5 line will be ready, you’ll be able to quickly get to the North-East Line and the North-South Line without having to go through the Downtown Line. That could help you save over 70 minutes.

For example, you’ll be able to quickly get to Ang Mo Kio on the Terminal 5 line, without having to use the Downtown Line, then switch at Chinatown, get to Dhoby Ghaut, and then take the North-South Line up to Ang Mo Kio. A trip that would take over one hour and a half will take less than 30 minutes.

The Developer of Pasir Ris Central

This project is under the tutelage of Allgreen Properties Limited, the Singapore subsidiary of the biggest Kuok Group. This is one of the largest developers in South East Asia, having over 35 subsidiaries and having completed thousands of residential and commercial projects in multiple countries.

In Singapore, Allgreen Properties Limited is the mastermind behind the Baywater, One Devonshire, Holland Residences, Changi Green, Tanglin Place, Tanglin Mall, Great World City, and other iconic projects.

Over the years, the developer of Pasir Ris Central has won numerous projects for their high-quality workmanship, including the prestigious BCA Quality Mark, BCA Quality Award and BCA Green Mark Awards.

The Floor Plan

Pasir Ris Central includes 4 types of properties, ranging from 1-bedroom to 4-bedroom plans. Each one is fully equipped with the best furniture one can get. The fully equipped kitchen allows you to cook your favourite food in style, while the branded bathroom is fully customizable.

Each and every home part of this complex is designed for solo owners, as well as couples or families with more kids.

Get a Quote Now

If you need a loan and want to compare home loan Singapore, we recommend that you use the free services of iCompareLoan mortgage broker. Contact us now.

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Download this article here.

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Podcast Ep#45: Lesson from Covid-19: Three Types of Homes To Avoid

Click on Podcast Ep#45: Lesson from Covid-19: Three Types of Homes To Avoid
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https://i0.wp.com/www.propertysoul.com/wp-content/uploads/2016/12/cropped-heading.jpg?fit=32%2C32&ssl=1 Author: Property Soul

Covid-19 has taught us there are homes that we should avoid because of the inconveniences and potential dangers they have during a pandemic. The 3 types of homes we should avoid to buy or rent are: 1) Shoebox Units; 2) Overseas Homes; and 3) Co-living Homes. You can now watch the podcast below. The video… [read more]

The post Podcast Ep#45: Lesson from Covid-19: Three Types of Homes To Avoid appeared first on Property Soul.

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Explore business finance solutions by strategizing carefully

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Author: Ravi Philemon

Explore business finance solutions as part of a strategy for being a successful enterprise

It’s a fact of life: your company needs capital to conduct business. Of course, the best way to obtain it is through sales. Sometimes, when you need other, more immediate needs, explore business finance solutions.

By: Hitesh Khan/

Different sources may be appropriate for different stages of growth. Start-ups often rely on family members, friends, or local associates. As you grow and your company needs capital, you may need to turn to alternate sources. Once you have achieved a financial track record, you can turn to other sources such as Asset Based Lending or Commercial Loans.

explore business finance solutions

If your company needs capital, explore business finance solutions carefully and you should also know when to to use them. It includes some options you may have overlooked.

Venture Capital
One problem many new businesses face is raising sufficient capital. A business in its primary phase will also face a difficult challenge getting a bank loan. One alternative is venture capital. Venture capital firms offer capital in exchange for equity in a company. This type of financing is ideal for new businesses since venture capital firms focus mainly on the future prospects of a company when banks use past performance as a primary criteria.

Bootstrap financing – what is it and why it is not without risks

Asset Based Financing
In increasingly popular business financing solution is Asset based as a means of financing growth and providing working capital. Asset based financing is a general term whereby a lender accepts as collateral the assets of a company in exchange for a loan.

Long-Term Debt
Long-term debt is one of the initial financing avenues a company should pursue. Most long-term debt takes on the form of a loan where the interest and part of the principal are paid back in equal installments over the life of the loan. Sources for these business financing solutions include:

  • commercial banks
  • government sponsored loan programs
  • private lenders

Lines of Credit
A line of credit loan is designed to provide short-term funds to a company in order to maintain a positive cash flow. Then, as funds are generated later in the business cycle, the loan is repaid.

When you explore business finance solution, this is a fairly popular one. Most commercial banks offer a revolving line of credit, where a fixed amount is available. As funds are used, the “credit line” is reduced and when payments are made, the line is replenished. One advantage of a line of credit is that the no interest is accrued until the funds are withdrawn, but the line is immediately available for the company’s cash flow needs.

Letters of Credit
A letter of credit is a guarantee from a bank that a specific obligation will be honored by the bank if the borrower fails to pay. Letters of credit are useful when dealing with new vendors who may not be assured of a company’s credit worthiness. The bank would offer a letter of credit as an assurance to the vendor of payment. Although no funds are paid by the bank, the credit requirements for a line of credit and a letter of credit are similar.

Business financing requires full and thorough preparation

There are many avenues for your business if your company needs capital. There are many loans in the market for small business owners and not all products may be the best fit for your business. What’s worse is, taking an unsuitable loan could be a huge setback to you personally, as well as to your business. So, an important factor is, work with your lender to determine the type of loan that fits your needs.

It is perfectly normal for successful businesses to borrow money and be in debt. Every company needs capital, so explore business finance solutions and borrow money to make money. This is not really a new idea.

A successful business has to borrow money because before a single sale can be made, there needs to be something to sell. Every business needs some form of investment before it can start trading. This could be as simple as a computer, a telephone and an internet connection. But most need more: stock, premises, marketing and something to pay the staff, even if it’s a sole trader.

Over time, the business can finance working capital out of profits, but this only comes after a period of successful trading. If the business is growing quite fast, the capital required could always be ahead of the surplus generated from trade, meaning continual borrowing is needed.

After knowing every company needs capital, including yours, asking how much it costs to borrow money is often the wrong question. The right question is: “What is the difference between how much you can make and how much it costs to borrow?”

When you explore business finance solutions, you should speak to loan specialists who can set you up on a path that can get you the best business loans in a quick and seamless manner. Loan specialists also have close links with the best lenders in town and can help you compare loans and settle for a package that best suits your needs.

If you are looking for a new home loan or to refinance, loan specialists can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the loan. And the good thing is that all their services are free of charge. So it’s all worth it to secure a loan through them. You should read up on about new home loan  or Personal Finance advice.

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101 Beach Road up for collective sale at reserve price of $90 million

Click on 101 Beach Road up for collective sale at reserve price of $90 million
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Author: Ravi Philemon

101 Beach Road also known as “The 101” (101 号美芝路) up for collective sale at reserve price of $90 million

101 Beach Road

Investor demand for such bite-sized assets in the vicinity of 101 Beach Road has been on the rise (Image: C&W)

101 Beach Road also known as “The 101” (101 号美芝路) located in the well-established commercial precinct of Bugis has come up for collective sale. Owners holding not less than 80 per cent by strata area and share values have agreed to put the property to market at a reserve price of $90 million. Cushman & Wakefield have been given the mandate to launch the property for sale by tender.

101 Beach Road sits on a corner land plot of 698.9 sq m (approximately 7,523 sq ft) at the junction of Beach Road and Liang Seah Street. It has a 999-year leasehold tenure effective from 25 January 1827. Currently, The 101 is a 6-storey mixed use development comprising of retail, office and residential units. It has an existing verified gross floor area of 3,515.89 sq m (equivalent to a gross plot ratio of 5.03).

The future new development at 101 Beach Road will be well served by the Bugis MRT Interchange Station, which is just a stone’s throw away and will also be easily accessible via main arterial roads and expressways including East Coast Parkway (ECP), Kallang-Paya Lebar Expressway (KPE) and Marina Coastal Expressway (MCE).

With the landscape evolving in the Beach Road/Ophir-Rochor corridor, the location is fast becoming a new hotspot to ‘work-live-play’. This locale showcases a harmonious blend of a charming eclectic mix of conservation heritage shophouses surrounded by swanky skyscrapers. The up and coming new landmark, Guoco Midtown which is under construction now is directly opposite The 101. The revamp of Bugis Village and Bugis Street among others will also create much vibrancy and bring colourful nightlife into the area.

The URA in an Outline Application has provided two allowable development parameters for this site. The first option, as per the Master Plan 2019 zoning, “Commercial” at Gross Plot Ratio of 4.2 (equivalent Gross Floor Area of 2,935.38 sq m) and a second option, “Commercial and Residential” at the current Gross Plot Ratio of 5.03 (equivalent Gross Floor Area of 3,515.89 sq m). Based on the owners’ reserve price, the land rate works out to be $2,848 ppr with no development charge payable for the full commercial option and a land rate of $2,394psf ppr (including an estimated development charge of about $593,253) for the Commercial/Residential option, subject to a successful rezoning. The allowable building height for both options is up to a maximum of 6-storeys.

Ms Christina Sim, Director of Capital Markets at Cushman & Wakefield commented that “Investor demand for such bite-sized assets in this vicinity has been on the rise. As this locality matures into a full-fledged work-live-play hub when all the residential and commercial projects are completed, asset prices are expected to rise. This is a great opportunity to acquire a prime property with the promise of growth.”

The tender for 101 Beach Road closes on Wednesday, 22 July 2020 at 3.00pm.

Beach Road is a road located within the planning areas of Kallang, Rochor and the Downtown Core in Singapore.

The road starts at its junction with Crawford Street in Kallang in the north, runs in a generally southerly direction, enters the Downtown Core at its junction with Ophir Road, and ends at its junction with Stamford Road and St. Andrew’s Road to the south.

As its name implies, Beach Road used to run along Singapore’s southern coast, before land reclamation took place in the Kallang Basin area.

Beach Road is one of the early roads developed in Singapore and appears in George Drumgoole Coleman’s 1836 Map of Singapore. The road was actually a coastal road fronting the sea coast in the early decades of the British colonial city – hence its name.

The Chinese used to call the road thih pa sat khau, meaning “the street to which the iron market opens or faces”, a reference to Clyde Terrace Market, which was taken over and run as a public market by the Municipal Commissioners in 1910. Clyde Terrace Market, also known as Beach Road market, had its foundation stone laid on 29 March 1873, with Masonic honours. Costing $37,889, the building was completed in 1874. It was demolished in 1983 to make way for The Gateway twin office towers, designed by architect, I.M. Pei, which stand now on this site.

Beach Road was also known as sio poh kai ki in Hokkien, which means “small town seashore”. Sio poh is “small town”, referring to that part of Singapore to the north of the Stamford Canal Road, as opposed to tua poh or “big town”, the Singapore River end of the town.

Beach Road was known as kadalkarai sadakku or “seaside road” in Tamil.

Up till the 1870s and 1880s, the sea came right up to Beach Road. At the time, large seaside villas stood here – just as Stamford Raffles had envisaged when he laid out his 1822 Town Plan. Raffles reserved Beach Road for the residences of the European merchants. By 1825, there were 20 such buildings. These luxurious homes earned the street its Chinese name ji chap keng or “Twenty House Street”. In 1886, one of these 20 houses, owned by W.R. George, was bought over by the Sarkies brothers and later became the Raffles Hotel. By the 1880s, these houses were turned into hostels or eating places to cater to the increasing flow of travellers and Beach Road ceased to be a prestigious residential district.

Apart from houses, there were hotels, clubs and bars well. The Singapore Cricket Club had its roots here. The area was also the scene of frequent brawls, as in the days before Tanjong Pagar became the port area, European sailors on shore leave would make for Beach Road. Brawls and other unruly behaviour were the reason why Mrs Balestier, the first American consul’s wife, presented the historic Revere Bell to Saint Andrew’s Church in 1843. The bell was intended not only for church service but also to be struck in the afternoon to warn seamen to return to their ships before darkness fell.

A sandy beach once existed in front of Raffles Hotel on the Beach Road side, and may account for the few steps which today lead to the lobby, as apparently it was common for the water to come up and over Beach Road at high tide, before the land now in front of Beach Road was reclaimed.

The first land reclamation beyond the foreshore line of 1843 alongside Beach Road was to provide land to build the Alhambra and Marlborough Cinemas, a police station and the Singapore Volunteer Corps Headquarters and Drill Hall (later converted to the Singapore Infantry Regiment Headquarters). Further land reclamation began around the 1880s, gradually robbing Beach Road of its sea frontage. Over the years, Nicoll Highway and later Marina Square and Suntec City were built on reclaimed land, pushing Beach Road even further inland.

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