Monthly Archives: September 2011

How to successfully get a payday loan?

A payday loan is a form of short-term borrowing that has proven to be extremely popular amongst many borrowers, particularly in recent years. Their popularity has boomed in the UK, with thousands of applications taking place each month. In an economy where expenses are sometimes difficult to manage, this type of loan can be very helpful to make money stretch until your next pay day or at least bridging costs a little more evenly. A fee is charged for a payday loan, just like any other type of loan incurs charges.

Fees are applied according to the annual percentage rate of a company, and interest can often be charged daily, although it is more common for lenders to have a set rate charged regardless of the loan period. Where charges are accrued on a daily basis, the sooner you pay the loan amount back, the better it is for you. The terms for such loans are very short, usually no more than 30 days, or however long it is until your next pay day. It is important to pay the loan back according to your agreement or fees may apply and your credit rating may be affected.

Because pay day loans are short term, the normal criteria that you would expect for other loans do not apply. For most payday loan companies, you must be resident in the UK ,be over 18 years of age, be permanently employed and have a bank account in your name where your salary is paid monthly. Most companies also require that your bank account can accommodate direct debits so that the money you owe can automatically be transferred to them at the end of your loan agreement.

In addition, some companies also require that you have a valid debit card linked to that account. There are some companies in the market which allow you to give them signed post-dated cheques which they can then deposit so that your repayments can go in automatically, however, this method is becoming less common as more companies operate from the internet.

There are many payday loan companies on the internet. A quick Internet search will reveal many legitimate UK based companies that you can go with. Check that the company is registered with the Office of Fair Trading (OFT) under the Consumer Credit Act (1974) with their credit licence number to ensure your safety. This information should be registered on the company website, try checking in the terms and conditions section if it is not immediately obvious. If the information is not there or if you are unsure, check with the Office of Fair Trading.

Shop around to find the company most suited to your needs with the most competitive APR. Most companies who conduct this type of business over the internet require you to have a valid email address as well as adhering to the above named criteria to apply. This is so that you can be informed quickly, via email of their decision.

Once you have found the company you want to go with, fill in your details on the online form. Be ready with all of your information. Typical questions range from how much do you want to apply for, your personal details including name address and phone numbers, your monthly income, how long you have been with your current employer and your bank details.

Assuming you have satisfied all of the criteria for the company, you should get a decision pretty quickly, usually on the same day, sometimes even within minutes. The money will be transferred into your account on the same day, ready for you to spend as you wish.

Secured Credit Cards: What, Why and How

Finding yourself in a position of having poor or even no credit is not an ideal situation to be in, and can present some obvious problems, particularly when it comes to obtaining a loan or line of credit. Your credit score is one of the primary factors that lenders will look at when determining if you qualify for financing, so optimizing your score is important.

These days, it is not uncommon to have poor credit due to any number of reasons. Fortunately, there are some effective steps that can be taken to either obtain a loan or credit card with a less than perfect score, as well as improve your rating rating fairly quickly and effectively.

One particularly valuable tool that fits both these scenarios is the Secured Credit Card. A secured credit card can provide the borrower with a line of credit similar to a regular card when their circumstances prevent them from obtaining a regular type credit card. These cards are also very effective in beginning to rebuild your credit and move to a place where you can be approved for a higher limit card or another type of loan.

How a secured credit cards functions is fairly simple, and has some similarities to a secured loan. To obtain one, the borrower must make a cash deposit into an account associated with the card. The amount deposited becomes the credit limit of the card, as well as playing the role of collateral. This secures the card and provides the lender or credit company with extra security. For example, if the borrower chose to secure the card with a deposit of $700, the card would then have a limit of that amount. Once that occurs, the secured credit card functions much like a regular credit card. The user can make purchased with the card and then proceed to make their monthly payments.

The benefits of a secured version card are clear. First of all, if you are unable to obtain a regular version because of bad credit, this enables you to still have a card, which is virtually a necessity in this day and age. The credit company is backed by the security deposit so they know they will not be left hanging by unpaid bills.

The second useful benefit with these cards is one you should take into consideration if you are looking to re-establish a strong credit rating. A secured credit card will enable you to have access to a line of credit that you might not otherwise have. You can then begin to make purchases and make on time payments which is a very effective way to rebuild your rating. These cards are typically available for a deposit / credit limit of anywhere between $300 and $10,000, so there is a nice range that should meet the needs of most borrowers. Once you have made timely payments for a period of time, your credit score will improve, and you will be able to get a standard credit card or other forms of financing.

Finding financial companies that offer these cards should not be too difficult. Although not every bank or lending agency will make them available, the majority of them will. Your local bank may be the best place to start your search, particularly if you have a long term relationship with them or have done business with them previously. There are also many agencies that provide online tools and resources that enable you to apply for these types of programs. Many internet locations dealing with poor credit or lending will have these available, or a simple online search will turn up some options.

Your credit rating will not play a role in being accepted for a secured credit card, since the cash deposit serves as collateral. So they are a great option for borrowers with credit issues that need a card or are looking to improve their credit for future lending.

VAT Deferral to ease your cash flow for UK businesses

When securing finance for vehicles, plant and machinery under hire purchase terms there is normally the requirement for a substantial initial cash outlay on the part of the customer. The impact of this cash outlay, particulalry as it relates to VAT, can cause substantial difficulties and pressures for business

This will be made up of a percentage deposit on the pre VAT purchase price, anything from 5% to 30% depending on asset and age, plus the full VAT currently at 20% of the purchase price.

Whilst this VAT is fully recoverable for VAT registered businesses it is nevertheless a factor than can put severe pressure on cash flow, as the funds may be out of the customer account for as long as three months before the VAT return is submitted and paid back.

However certain finance houses offer the ability for business to defer their VAT payment for up to 3 months from the date the finance agreement begins.

This means that the 20% of purchase price cash that ordinarily needs to be found on a deal beginning on 1st September, can sit in the customer’s account until the 3rd month of the agreement, i.e. 1st December.

But that’s not all. The customer can submit their VAT claim immediately, ensuring that the VAT, that they haven’t had to pay yet, is refunded to them by HMRC as though they had. A double cash flow boost!

At month 3 of the agreement the VAT payment is then taken by the finance company along with the normal monthly payment via direct debit.

This is a simple benefit that can have a massive benefit to qualifying businesses.

We would encourage our clients where possible to take advantage of a VAT deferral as it alleviates the unnecessary problem of having to bear the cash flow pressure of having to pay what could be a substantial amount of VAT, with the knowledge that the funds will be re-paid anyway.

To secure VAT deferral finance for your business apply via our website or call 0845 3300 455.

MacManus Asset Finance are leading independent asset finance brokers and assist firms across the UK obtain competitive finance facilities.