Short Term Business Loans can be Helpful in Building your Business Credit

By: Unknown on 03:57

When many business owners think of business loans, they think of a traditional 5-10 year term loan from their local bank. In recent years, however, short term business loans have become an increasingly popular tool for business owners to quickly take advantage of opportunities and handle obstacles that may come their way.

For example, sometimes inventory is only available at a discount for a limited time, or marketing opportunities can be time sensitive. Sometimes, business owners just need breathing room while waiting for clients to pay. In these cases, getting a short term business loan is often a better option to taking a loan with multi-year repayment – If you turn your inventory in 3 months, you don’t still want to be paying for that inventory in 3 years.

via.www.ondeck.com

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Get a Personal Loan against Fixed Deposit

By: Unknown on 03:40

Managing liquidity is an important aspect of personal finance planning. Even individuals with good investment portfolios find it difficult to manage liquidity. A sudden requirement of cash can push one into a situation where he/she may have to sell assets, sometimes at a discount to fair value. However, if smartly used, the traditional bank fixed deposits can come to your rescue. Banks offer personal loans against bank fixed deposits and you can raise short-term money without breaking your fixed deposits.

Another advantage that the borrower enjoys is the low interest rate, compared to other personal loans. Most banks offer personal loans at an interest rate ranging between 16% and 24%. But a personal loan taken against a fixed deposit ensures that you pay just 1% more than the rate of interest payable by the bank on the fixed deposit. For example, if a bank pays 9% interest on a three-year fixed deposit, the rate of interest payable on the personal loan raised against it will be 10%. This saves a lot of money that you would have paid as interest, had it been a traditional personal loan, backed by no security.

via.www.businessinsider.in

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