Tired of dealing with traditional lenders that ask for collateral, tax returns, balance sheets and pretty much everything under the sun?
Micro loans first originated in the Third World as a way to help launch small businesses. Many of the micro lenders, which are non profits, receive the bulk of the funds from the Small Business Administration. Now there are certain requirements to qualify for this small loan but it’s much less difficult than that of traditional lenders.
It’s important to understand that micro loans offer a variety of benefits which include:
- Business Training – The SBA requires that intermediary lenders provide training for companies and technical support to borrowers.
What can you do if you are caught in a car you cannot afford? First, you’ll probably end up with an upside down car loan. Longer term loans, like the six-year loan in the example, are appealing to many people because it means a lower payment. Many car buyers believe it’s a way for them to buy more car without breaking the budget. The flip side of longer loans, though, is that while you do have a lower payment, you’re also building less equity. Especially with new cars, where the value drops so quickly after the purchase, the value of the vehicle is dropping faster than the balance due on the car loan, leaving you upside down.
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