Author: Herbert Whitney

Second mortgages are loans that you can take in order to get some cash out of your home’s equity. This is done to pay off any high interest debts, the tax man, or any emergency expenses you may have. This type of a mortgage allows you to borrow against the value of your house.

A second mortgage can look like various types of loans:

• A Lump Sum: a onetime loan given by a lender that can be repaid over the course of a set timeline. All you have to do is keep up with the fixed monthly payments. 
• Line of Credit: not exactly a second mortgage but still a loan agains your property. Line of credit can be referred to as a pool of money that you can tap into when needed. You don’t have to use the money but you can be assured that if the need arises, it will be available.

The two advantages of a second mortgage vs a regular loan.

There are 2 main advantages of obtaining a second mortgage:

1. Increased Amounts

When you opt for a second mortgage, you can borrow a larger sum of money because of the fact that the loan is based on an asset; your home and its market value. Depending on the value of your house, and the lenders flexibility, you may even be able to secure up to 80 percent of the total value of the house through a second mortgage. 

• Low Interest Rates

Majority of the times, second mortgages will have drastically lower rates of interest vs any unsecured credit (such as credit cards, tax debt, etc) because the loan is secured through the value of your home. This drastically reduces the risk factor that is felt by lenders and allows them to become more lenient when it comes to interest. Chances are you may get rates that are in single digits.

For more information on 2^nd mortgages search for your local mortgage broker.

As a business owner, you may have your personal reasons for deciding to hand accounting duties over to the specialists after several years of handling the tasks on your own or having a member of your staff take care of the job. Perhaps you just don’t want to take the time any longer. Maybe personnel changes have taken away the individual who took care of this for years.

Whatever the reason, there are several benefits to putting your accounting tasks in the capable hands of local accounting services in Woking. The list includes:

• Saving Time: You and your staff won’t have to devote time to something that you aren’t an expert at. You can use your time and your employees’ time to help the business grow and to be more efficient.
• Skills: The special skills of professional accountants can deliver a number of financial benefits, reduce mistakes and get the job done efficiently.

When your accounting provider is taking care of the duties, you will notice a significant reduction in the stress levels. These pros understand current requirements, laws, and procedures so you’ll always have peace of mind knowing you’re in compliance.

Time Demands

You can put a stop to the demands on your valuable time and focus on the operation that delivers your services and creates your products. Accounting can be one of the tasks you can remove from your “to do” list permanently.

When it comes to accounting and related services, let the experts do it. It’s the wise choice.

Starting up a new business can be exciting, but coming up with something that is original or that people are going to want to buy is a little more difficult. You could go with your own idea or you could look at a franchising opportunity. Franchises offer new businesses greater flexibility and also offer you your own independence to make money and run your own business. You are not doing it on your own, however, as you also have the ongoing support of the franchise owner and so it allows you to just get out there and try to be an entrepreneur.

Franchises, however, can be expensive and so you need to look at a source of funds to assist you with this. Max Funding Australia is one institution that will offer you this kind of cash in the form of a franchise loan. There are a number of ways that you can get the cash needed to start up your franchise and we will look at some of them here.

1. Franchisor Financing – Generally, you would speak to the owner of the franchise and they would advise as to whom you can approach in order to get financing. Some franchise operations offer their own financing for anyone interested in their product or service or they have partnerships with lenders. The benefits of getting your loan from the franchise owner is that you can get everything done in one go. You can apply for the franchise loan with them and then buy your franchise.
2. Alternative Lenders – Alternative lenders are easier to deal with and the loan may be more forthcoming with them. They have lesser requirements and can give you a quicker decision. However, their loan terms may be a little more expensive, but they do offer easy access to the money. They also may offer less than you need and the period of repayment may need to be a little shorter.
3. Commercial Loans – You might also want to look at a term loan which you can take out over a longer period of time. This allows you to set your monthly payments which may be useful at the beginning of your business. You may be cash strapped at the beginning because your money is tied up in stock and so being able to spread your payments out over a longer period of time may be beneficial.
4. Family and Friends Loan – Many people don’t consider this, but maybe family may want to go in on the franchise with you. The terms should be great as most family members won’t charge any interest on the money owed. If they trust you, then they just want you to repay the money as soon as you can. However, many people do not like to mix money and family and sometimes when things don’t work out, family ties can get strained and this is not a good thing.

Buying a franchise and getting out there and being your own boss is great and it is not beyond your dreams. There are lending institutions that will assist you with the money needed with great terms and payment plans.

It doesn’t matter what industry you are involved in, you’ll face numerous challenges along the way. A company who adapts to change and is flexible when it comes to using new methods, always has a better chance of survival than a static, rigid enterprise. It is important to find ways to minimise costs, using a loan management company is excellent as a one stop solution to loan production tasks.

Concentrate on Revenue

Setting up in-house teams to monitor and evaluate loan production tasks takes away from your core business. Chasing down loan applicants to make repayments doesn’t generate revenue, it wastes resources. It takes time to assess individual loans to ensure clients are honouring their part of the agreement, constantly having to track the whole loan cycle takes time and money. Resources such as personnel would be better used in tasks which are going to produce money for the company, that is why it is beneficial to hire loan management companies like Mutual Service to handle your loan book. Furthermore, managers won’t have to spend any time overseeing staff, they can concentrate on more productive company tasks. Outsourcing to a specialist allows you to focus on expanding the company rather than wasting time on activities that won’t generate revenue for the business.

Reduced Processing Times

Managing loans can become overwhelming, and as your business expands the numbers continue to grow, soon you’ll be placing a substantial amount of resources in taking care of your customers’ loan cycles. Although you want your company to be profitable, you can’t delegate a large number of staff to look after loans, it will eventually affect other departments in your business. Loan processing experts have plenty of experience in the industry, they can dramatically reduce processing times, enabling your business to operate more efficiently. If your loans are being processed at greater speeds, you’ll notice a big difference in your customer service ratings. Satisfied customers are customers you tend to retain, if you are retaining clients, it helps your business progress. Word gets around that your company offers exceptional processing speeds, as it spreads, you’ll start to notice a difference in the number of new customers approaching your organisation.

Adaptable

Using a loan processing company allows you to easily adapt to the current market. You can streamline your operations to suit your needs, if you experience increased growth, you can outsource your loan management operations to an expert team. If the market shows signs of decline, you won’t need to dismiss staff just to adapt to the industry. You can easily maintain minimal employee levels without having to recruit or terminate staff. Outsourcing makes it easier to keep overheads down while increasing profitability.

As a business owner, it is vital to keep yourself up to date with new trends and strategies. Using a third party to help deal with your client’s loan cycles has a wide variety of benefits. It allows you greater flexibility, it drastically reduces processing times and it gives employees time to focus on core competencies.