Glossary Of Consumer Finance Terms

A guide to many of the terms used in the consumer finance market.

A

Acceptance Rate – The percentage of customers that are successful when applying for a loan or credit card. 66% or more applicants must be offered the advertised rate know as the Typical APR (See 'Typical APR' below).

Annual Percentage Rate (APR) – The rate of interest payable annually on the loan or credit card balance. This allows potential customers to compare lenders. Under the Consumer Credit Act Lenders are legally required to disclose their APR.

Arrears – Missed payments on a loan, credit card, mortgage or most kinds of debt are termed Arrears. The borrower has a legally binding obligation to settle any arrears as soon as possible.

Arrangement Fee – Generally for the administration costs of setting up a mortgage.

B

Base Rate – The interest rate set by the Bank of England. This is the rate charged to banks for lending from the Bank of England. The base rate and how it may change in the future has a direct influence on the interest rate a bank may charge the consumer on a loan or mortgage.

Business Loans – A loan specifically for a business and generally based on the businesses past and likely future performance.

C

Car Loan – A loan specifically for the purchase of a car.

Consumer Credit Association (CCA) – Repeats most businesses in the consumer credit industry. Government, local authorities, financial bodies, finance focused media and consumer groups are all members. Members sign a constitution and must follow a code of practice and business conduct.

County Court Judgment (CCJ) – A CCJ can be issued by a County Court to an individual that has failed to settle outstanding debts. A CCJ will adversely affect the credit record of an individual and can possibly result in them being refused credit. A CCJ will stay on a credit record for 6 years. It is possible to avoid this major negative stain on your credit record by settling the CCJ in full within one month of receiving it, in this case no details of the CCJ will be stored on your credit record.

Credit Crunch – A situation where Lenders cut back on their lending simultaneously usually down to a shared fear that borrowers will not be able to repay their debts.

Credit File – Information stored by credit reference agencies, such as Experian, Equifax and CallCredit, on an individuals credit and borrowing arrangements. The Credit File is checked when Lenders consider a credit application.

Credit Reference Agencies – Companies that keep records of individuals credit and borrowing arrangements, amounts owed, with who and payments made, including any defaults, CCJ's, arrears etc.

Credit Search – The general search undertaken by the Lender with the credit reference agencies.

D

Debt C0nsolidation – The transfer of multiple debts to a single debt via a loan or credit card.

Default – When a regular debt repayment is missed. A default will be recorded on an …

Where to Get a Business Loan Online: Tips for Finding the Right Lender and Getting Flexible Terms

There are now many options for small and medium sized businesses for getting funding they need. If you're wondering where to get a business loan, your options are no longer limited to just banks and the SBA. Just check with some of the many alternative online lenders and funding solutions. The downside is that there are always scams and that you must always be very careful that you don't fall prey to cyber criminals.

Here are a few things to look for when evaluating the reliability of an online business loan:

• Check with the accreditation first. Make sure that any potential lender is accredited in the US. Read reviews as well from various sites and sources to find out what others are saying. If there any any complaints, try to find out if those complaints have been addressed and resolved. If there are too many negative reviews, it's best to stay away.

• Make sure that a lender you are considering offers the type of funding you need. An important part of knowing where to get a business loan is to have a financial plan in place. What do you need the funding for? Working capital? Equipment financing? Vendor financing? Have as detailed of a business plan as possible before applying.

• Check with the application process to find out how easy it will be to actually apply. Your chosen lender should not have a long, drawn-out, difficult application process. You shouldn't be required to turn over document after document after document. It should be clear from the start what documentation you will be expected to hand over.

What Else to Consider When Searching Where to Get a Business Loan Online

• Another thing the ideal lender should do is guarantee a speedy approval process and that you'll get the funding as quickly as possible. Some online lenders provide fast funding that takes no more than 24 hours. In contrast, some traditional banks can still take several weeks to give out the funding.

• Try to get flexible loan terms, if possible. There are a variety of flexible loan products offered by different lenders, whether you end up getting an unsecured loan, merchant cash advance, lines of credit, etc. Even if your credit scores aren't the greatest, you'll still want fair rates and reasonable repayment terms.

• While there are always crowd funding options, you'll really need to come up with a good marketing campaign that includes viral material if you want people to be interested enough in your message that they'll want to donate. This process can take a long time.

So, if you're still wondering " where to get a business loan ", just head to US Business Funding and look over all of their funding services and loan products. The application process is fast and easy.

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