What is an Installment Loan and How Does It Work?

When you need to make a large purchase and do not have the cash on hand or a line of credit to do so, an installment loan is a financing option to consider. 

An installment loan may be offered through a credit union, bank or a private lender. Understanding what an installment loan is and how it works can help you to decide if this type of financing is right for your situation.

Fixed Payments

When you take an installment loan, you are agreeing to make fixed payments for a specific period of time. Each of the payments is due on a specific date, such as the first Monday of the month or the 15th day of the month. 

The fixed payment includes the portion of the principal of the loan and the interest that you have accrued on the principal. Each payment that you make on an installment loan reduces the amount that you owe on the principal.

Interest Rates

Interest rates on installment loans are usually fixed at the point in time that you take the loan. Some companies, such as Las Vegas Finance, know that the interest rate that you get may differ from what another applicant would get even on the same principal. 

Your interest rate will be calculated based upon your credit score. If you have a low credit score, you may have a high interest rate.

Secured Versus Unsecured Installment Loans

A secured installment loan is tied to a piece of property as collateral. One example is a mortgage loan. A fixed mortgage is an installment loan that uses the house as the collateral. An unsecured installment loan does not use any collateral. 

These loans are sometimes called personal loans and could be used for a leisure or personal purchase, such as buying a diamond engagement ring.

Benefits of Getting an Installment Loan

An installment loan makes it easy for you to plan your monthly expenses. With excellent credit and property to secure the loan, you may enjoy a low interest rate. 

ome installment loans, such as mortgages, have tax-deductible interest. On-time payments on an installment loan can also help you to build your credit score.

An installment loan provides you with a set amount of debt to repay each month. The predictability of the loan's payments makes this a convenient choice for many people. 

Before signing your name on the dotted line, be sure that you understand all of your obligations as the borrower on an installment loan.

Tight On The Budget? 4 Creative Ways To Earn A Little Extra Cash

It's not uncommon to be a little short on your monthly budget every once in a while. Gas prices might rise, you might need more food than you planned on purchasing, or there could have been an emergency with the home that needed to be taken care of. Fortunately, there are ways that you can make a little extra cash if it's needed.

Online Surveys

There are numerous sites online where you can take surveys to make money. You won't get rich quick, but you can make a few extra dollars that can be used for gas, food or a small bill. 

Try to sign up for as many survey sites as possible in case one doesn't have any surveys to take that day. You'll see that most surveys are posted early in the morning, so this is the best time to get on the sites to make your cash.

Get Rid Of The Junk

If you're like most people, you have some kind of metal around the house or outside. You can pile all of that old metal up to take to a recycling center. Most centers will pay cash for the metal that you have. 

The amount will be based on the type of metal and the demand. Selling old cars to businesses like U Pull & Pay is a convenient way to earn some extra cash, as they will most likely come and get the car from you.

Yard Sales

Gather a few items that you no longer want to have and organize a yard sale. If you set your prices right, then people will be flocking to your sale to buy your goods. 

Yard sales are a great way to get rid of extra stuff lying around your house, and earn a little extra cash.

Consignment Stores

Whether it's children's toys and clothing or items for adults, there is usually a consignment store that will buy the items that you no longer want. 

Some stores will pay you up front, but there are some that won't pay you until the items are sold in the store. It's best to look for the stores that will buy up front because you might get a reduced price if you wait.

Making a little extra money is easy if you know what to do, such as selling unwanted items. Being short on money isn't an indication of how you manage your money. 

It's simply something that happens to many people, and as long as you understand that there are other ways to budget, then making extra cash can get you through.

Renewed House: How to Save Money on Home Reclamation Projects

You've always wanted a vintage home, and you finally signed off on the property of your dreams. However, the structure requires major improvements before you can move in. Some floors may not even have staircases for easy access at this point. 

When you're ready to renew a spectacular home, it's time to learn how to save money during the reclamation process.

Check for Permitting First

A simple way to save money on your project is preparation steps. Don't start a major roofing, flooring or renovation project until you learn about the local permitting laws. 

Your renovation idea may not be allowed in the area. Installing it and being forced to remove it after a permit official inspects the home can cost thousands of dollars. Err on the side of the law, and build according to code at all times.

Keep an Eye on the Neighborhood

Materials for your reclamation project might be expensive or difficult to find. Take a look around your neighborhood for any similar homes. 

These properties might be marked for demolition, and the materials will simply be discarded. Speak to the owner about buying any of the materials at a low cost. 

Most people will love to make some money off of a demolition rather than entirely discarding everything.

Opt for Cheap Power

Generators, battery packs and other power sources can be expensive and difficult to use. You may not have the power necessary to complete part of the project either. 

Consider using an air compressor for your power-tool needs. Particular companies, like Kruman Equipment Company, know that air compressors offer pneumatic power so that you can drill and fasten your way through a project. 

The air power is adjustable, which makes it flexible for almost any installation or renovation need.

Try DIY on Simple Projects

You might hire professional contractors for certain projects, such as installing stone floors, but take on some of the smaller projects on your own. Paint, install a sink and perform other tasks that aren't too difficult. 

You'll save hundreds of dollars on labor costs alone. Reserve complex jobs, such as electrical work, for the professionals who have the skills and safety tools to complete the work in record time.

Try to round any of your financial numbers upward because reclamation projects tend to add up in price over time. 

When the project is complete, however, you'll have a beautiful home that can reflect a bygone time. A beloved home is worth saving when you have the passion to do so.

Supplementing Your Income Utilizing the Online Options Trading Platform

“I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.” - Warren Buffett

Have you reached the pinnacle of your working career; furthermore, are you are starting to look at retirement options? If at all possible, it’s important to have saved enough to be able to retire comfortably. 

However, the fact of the matter is that, unless you are extremely wealthy, you will more than likely never have enough money to retire comfortably.

Why not?

Tough global economic conditions

We currently live in challenging socio-economic times where rising costs and stagnant wages are causing a phenomenon known as "the middle-class squeeze [which] is… where increases in wages fail to keep up with inflation for middle-income earners leading to a relative decline in real wages.”

Therefore, I believe that question that needs to be asked and answered is: "how do you go about supplementing your income in order to be able to retire comfortably"? 

Fortunately, there is more than one way to add to your retirement income; however, I believe that a good way to increase your retirement funds is to invest in financial market options.

Before we look at how to trade in financial options, let’s have a look at what they are: 

Financial market options?

According to Investopedia, a financial option is “a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specific price on or before a certain date. An option, just like a stock or bond, is a security. It is also a binding contract with strictly defined terms and properties.’

Binary or financial options are versatile in nature, allowing you to adapt to changing economic market conditions. For example, you can adopt a short-term trading strategy; thus, opening and closing your position within a time frame of less than one day. When you are investing in options, you can be as aggressive or as conservative as you want to be. 

However, you need to take cognisance of the risk factor when you are placing trades. In a nutshell, the more aggressive your trading position is, the greater your exposure to risk and the loss of your initial investment will be. Conversely, the more conservative your trading strategy is, the less your exposure to risk and the loss of your starting investment will be. 

Trading in options

Much has been made, and continues to be made about the high levels of exposure to risk you could face when trading in binary options. This is true; however, the risk can be mitigated by following the following simple tips: 

Choose your broker carefully

It is common knowledge that we are living in an age where close on 50% of the global population has access to the internet through laptop/desktop computers or mobile devices, resulting in the rise in online financial market trading brokerage firms. 

Some of bona fide brokers while others are fly-by-night companies who have no intention of acting honourably towards their clients. Thus; it is vital that you investigate whether your choice of online trading partner has your best interests at heart or not. 

Educate yourself

The more you know and understand about options trading and how to trade successfully, the better chance you will have to set yourself up for success. 

Your online trading partner should have an extensive education centre consisting of a trading academy, advanced learning materials, FAQs, glossary, as well as daily market reports and a daily financial market analysis. 

Utilise this information that is provided to you to ensure that you are au fait with making sensible and sound investment decisions.

Research underlying assets

It's important not to guess which way you think the price of your chosen underlying assets will move, rather do the research and make an investment decision based on knowledge and not on conjecture. 

Ergo, research the price movement history of all the underlying assets you intend investing in. It is also important to take the current geopolitical and socio-economic climates into account when making trading decisions as it is a proven facts that the prices of financial market assets are impacted by external factors related to regional political and fiscal conditions. 

Final words

Turning 50 is often seen as a negative event by many people. If nothing else, it drives home the fact that you are getting old and you need to ensure that your finances are for when you retire; however, I believe that your 50th birthday is a momentous occasion. 

After all, you have lived for half a century! On the off-chance that you haven't saved enough for your retirement; all is not lost, there is still time to increase your investment capital.

How to Effectively Manage Essential Business Expenditures

Keeping track of essential business expenditures ensures that you do not overdraft your account. Good management also ensures that you do not pay too much. These four tips will help you to manage your business expenses and keep your accounts up-to-date.

Get on the Budget Plan for Utilities

Find out if your utility service offers a budget plan. This plan estimates your average monthly usage of natural gas and electricity. 

You pay the same amount each month rather than a big winter heating bill and a low autumn bill. 

underestimate. You get a refund if your budget was an overestimate. 

Roofing for Your Business

Putting a new roof on your business is a considerable but necessary expense. Professionals, like those at Acoma Roofing, Inc., know that an asphalt shingle roof lasts for about 20 years. 

If your business is in a large building, consider a metal roof. Today's metal roofs are attractive, energy-efficient and last for about 50 years. It is worth the price of paying for quality materials and experienced roofers. 

You may be able to get a discount by having your roof replaced during the off-season or paying cash instead of credit.

Establish a Repairs Fund

If you do not want to deal with having to suddenly come up with the cash to pay for a huge repair bill for your business, establish a dedicated repairs fund. 

In general, you should put 1 to 2 percent of the building's value into the repair fund each year. If the building is worth $1,000,000, then a $15,000 annual repair fund would be average. 

Split into 12 months of payments into this account, this could be a more manageable situation for you.

Use an Electronic Budgeting System

Consider implementing an electronic budgeting system for your business. This allows you to accurately keep track of your quarterly estimated income taxes, payroll taxes, invoicing and operational costs. 

You could link this with your banking accounts so that you can have up-to-date information about your account balances. You may also wish to set up alerts when your business checking account falls below a certain level.

Having a repairs fund, doing research and getting recommendations will help you to manage repair and replacement bills. 

You can also look to electronic solutions for keeping track of your business expenditures. Keeping accurate logs of your income and expenses are keys to succeeding in your business.

6 Easy Ways to Get Small Business Expansion Loan Online

Innovation and technology have led to a radical change in India’s financial services segment. Many SMEs still head to traditional banking institutions for a loan. This is mainly due to the lack of awareness of available options.

Why Choose Online Loans for Small Businesses

Raising a loan for a small business from traditional financing institutions can prove be a highly tedious and stressful task. 

It typically involves making multiple visits to the bank, submitting endless amount of paperwork and waiting for months for a response regarding the approval or rejection of the loan application. 

Traditional financing institutions are apprehensive about approving loans for a new business or for the SME segment. Thus, they have stringent eligibility criteria and the requirement of collateral, making it very difficult for small businesses to secure loans.

Against this backdrop, SMEs and new businesses had no choice but to approach unorganized moneylenders to overcome their cash flow issues or to fund their growth. These moneylenders charged exorbitant interest rates, severely hitting the bottom line of the borrowing enterprises.

With advancements in technology, FinTech lenders entered the financial services segment, offering a plethora of options for business loans in India. 

The country recorded a whopping $1.77 billion in FinTech investments between 2014 and 2015, according to figures released by Inc42’s FinTech Market Report. 

Although these figures highlight the growth of India’s FinTech segment, there is room for phenomenal growth in the near future, says an article published by FICCI on February 9, 2017.

These FinTech firms are not only making collateral free loans available for small businesses, they are ensuring that the entire process of loan application, screening, approval and repayment is easy and fast. 

Small and new businesses can now apply for a loan online, by filling up a simple form and uploading relevant documents. While the loan application process takes a few minutes, the approval comes through in a matter of days. 

FinTech lenders have introduced new and innovative loans for small businesses that are more aligned with their requirements and have set repayment terms that these businesses can meet conveniently. 

Ways to Secure the Best Online Loan

1) Get Your Business Finances in Order: It is important for new and small businesses to be organized about their finances. Having a good business plan in place and maintaining proper accounts would help you determine your loan requirements more accurately. 

Securing excessive loan amounts would result in unnecessarily higher interest payments. On the other hand, securing too small a loan amount would not solve the liquidity problems that businesses often face. 

Thus, a business owner should be clear about the financial position of the business, the working capital gap, the amount of funds required to be raised and for what duration. 

Having the finances in order also helps when making a loan application. A potential lender can check whether a business has viable operations and has the potential to grow if the accounts and business plan are clear. 

Therefore, being organized with the finances helps to get an online loan faster and at more appropriate terms.

2) Get All the Documents Ready: The application for an online loan can be highly convenient and quick, provided the applicant has digital copies of all relevant documents ready. 

The loan application should be accompanied by copies of documents that prove the identity of a business, its financial statements and proof of taxes paid. These documents not only make the application process smoother, but also help avoid any kind of delay or rejection.

3) Maintain a Good Credit Score: Your business may be too small or too new to have a formal credit score. 

In such situations, the credit score of the business owner or the main people managing the business comes in handy. A bad reputation or a poor credit score may hinder the chances of securing a loan for your new business. 

You can improve your personal credit score by repaying personal loans on time, not delaying on making bill payments, including credit card payments and utility bills.

4) Choose the Right Lender: It’s important to research online before making a decision regarding the lender. 

A good lender would have associations with credit card companies, point-of-sale service providers and online shopping sites. You can research about the credibility of the management team, as this would give you a good idea about the company.

5) Choose the Right Product: Research online to know all the features of the various products offered by the FinTech lender you have chosen. 

Different financial products are suited for different business needs and models. For instance, if your business has a presence on online marketplaces, you can choose a product specifically for this. 

In case most of the payments to your business are done via credit cards or point-of-sales machines, you can opt for a product that relates loan repayments to the receivables. Alternatively, a business can choose a product that offers a rolling credit facility.

6) Look for Hidden Charges and Fees: A good lender would provide absolute transparency into all fees and charges. You can search for relevant information on their website to ensure this.

Online loans have bridged the liquidity gap for small businesses. FinTech lenders have simplified the complete process by using alternate data, like tax information, Aadhar card details, bank statements, social profiles of businesses and their owners to determine creditworthiness. 

While lenders are speeding up the process on their end, small businesses can also take the necessary steps to ensure a smooth loan application process.