It is inevitable for small businesses to require outside financing to grow. There are diverse funding options available such that it has become easy for individuals to get small business loans. Nevertheless, such variety of lending options can present a challenge in that it is hard for business owners to be sure of the choices they are making in terms of the best loan provider.
The following 5 tips will help you increase your chances of finding the best small loan provider that aligns with your needs.
1. Establish your needs
Knowing what you need will determine the type of loan provider you choose. Different loan providers have varying terms and conditions. Being aware of what you need will help you establish whether taking a loan from a funding company is worth the struggle. Additionally, establishing your needs should also guide you to focus on a loan provider that offers loans based on your expected terms and conditions.
2. Have all the information about your business
Prior to making any loan application, ensure that all important information about your business is ready. Usually financial documents are key documents that any loan provider would want to see. Other important and necessary information include the ownership of the business, employer identification number, taxpayer ID, as well as income information. Having this information increases your chances of getting the loan approved quickly.
3. Screen various online lenders
Nowadays, majority of online lending companies are engaging in predatory practices. If you are not careful, the chances of being conned are high. It is advisable to work with a loan provider that is comfortable offering loan terms upfront. Also, look for one who has security disclosures on their web pages as well as a physical address.
4. Carry out a true-cost analysis
Different loan providers have varying repayment terms, and APRs (the term that describes how much money you are subject to paying including the fees and interest rates). These two factors form the basis for comparing loans from different providers. If you are looking for a merchant cash advance, you should be ready to pay higher APRs, and a weekly or daily repayment terms. Online term loans are high in terms of APRs when compared to financing from traditional banks. They however; attract low interest rates than merchant cash advances.
5. Know the focus of lenders
Lenders often use different factors to measure a person's eligibility for a small business loan. For example, debt service coverage ratio (DSCR) is an element of consideration in the event you are looking for loans that are competitive in price, and are of better terms, and lower rates. Other lenders look for a strong personal credit score, and yet others focus on the property or inventory of your business.
While it is tempting to apply for a loan from any online lender available, taking the time to understand the terms and conditions can save you much inconvenience. As such, you need to take the time to research about the lender’s reputation, and read through the fine print before applying for your loan.
Even if you have already called it quits and retire, there will still be situations where you have to apply for loans. And while your pension funds may provide you enough relief to get you through whatever issues you will be encountering, you will still need to get a little extra help on the financial side.
A considerable amount of retirees are applying for financial loans for many different reasons, and not just for paying hefty hospital and medication bills. Most of them just want to acquire a substantial amount of capital to jumpstart business ideas, or to fund excursions towards across the globe.
Still, acquiring debts come with a myriad of responsibilities. Ignoring these responsibilities may hinder you from fully enjoying your retirement. Apparently, it is best to settle these accounts the quickest way possible. And here are some ways you can do it.
Get a debt consolidation loan
Do you have an idea for business startup you have been itching to establish? Chances are, you will be borrowing a little extra money to make this idea come to life. Then again, being able to break even and re-pay the initial debt you acquired takes time. Moreover, you will need to expect for much of your income to go towards paying the amount you borrowed in the first place.This, apparently, slows down your business’ growth and it makes it even harder for you to breakeven. Fortunately, you can always apply for a debt consolidation loan which will help you get out of a debt trap and help your business move forward.
Cut your credit
As much as you want to go on a never ending shopping spree, you will also need to keep tabs on how much you’re spending. Going all out with your credit cards might be a good idea when you’re travelling to a place where you have to shell out a great deal of money to experience excitement. But considering that you’re already retired, it is best to just limit your credit. Especially when you are still struggling with existing debts, you may need to keep your spending sprees to a minimum - at least until you can payoff the loans you have applied for.
Maintain a strict budgeting regime
Probably the best way you can handle your loans is to simply create a budget. After you’re through with it, you can now set how much you are willing to allocate towards debt servicing. A good 20 percent will do, if you’re really set on erasing your debts across the board.
Secure an alternative income source
If anything, you will need to have a contingency plan at the ready to keep you financially stable. Having an alternate source of income (getting a part-time job as a consultant, for instance) can actually help you stave off the messier aspects of debt. What’s more, having more than one income source can actually help you generate income to be used to pay off debts. This will ultimately safeguard you from going bankrupt during your retirement.
After working for a long time at a certain company or institution, seniors will encounter the inevitability of retirement. It is that phase in a professional’s life that is supposed to mark the pinnacle of one’s career. You have worked your way to the top, and once you have reached the peak, it would only be a matter of time before you can recede into a life that’s a whole nother world. The thought of being able to relax for the first time and without a care in the world can pretty much scare you. But this shouldn’t discourage seniors to do something worthwhile during their retirement.
In fact, retirees can always find ways to keep themselves occupied. And that’s only a matter of knowing what they really want to do in their time. But as most seniors aim to travel the world and savor every dish imaginable, some will still want to spend their time looking for places where they can invest their pension money.
It’s never too late to look for nifty financial ideas and arrive at certain solutions to achieving one’s investment goals. For sure, you won’t be doing this just to accumulate more wealth. You will be doing this for the sake of your children and your grandchildren. Amassing a fortune at an age where you should be spending your days at a remote island in the Bahamas is still pretty much possible. You only need to know how to invest your money in financial plans that matter to you.
Here’s a list to get you started.
Set up a small business
At present, it has become easier for people to establish their businesses and secure an alternative source of income. For a lot of seniors, this means looking for ideas that will culminate in a plan for a small business.
What with social media and other technologies that make it easier for just about anyone to share information, it won’t be that difficult to create stores that sell whatever it is you are interested in.
Usually, financing your small business is one thing that you should need to focus on. Luckily for you, there are companies offering small business loans that will help entrepreneurs like you to start a venture without much of a heavy burden on your back.
Invest in stocks
Aside from setting up an enterprise, you can also invest your money in secured stocks. More often than not, a lot of retirees would get very fat pensions from government and private institutions. While you can always exhaust everything on a weekend roadtrip coast-to-coast, it is still best to set aside a portion to buy shares in companies that show a good standing in the stock exchange.
Already have investments in corporate stocks? You might as well set your sights on more secured treasury bonds issued by the government. They don’t really promire hefty returns, but these bonds offer a good way to invest your money and keep it from being wasted on Margarita parties.
It can be easy to forget about the importance of saving up for retirement when it’s still decades away. This is especially true now that the retirement landscape is changing; the days of retiring at age 65 are becoming a thing of the past. Now that our life expectancies are increasing, people are able to work well into their seventies, and working from home is becoming more commonplace, we’re starting to rethink the best ways to save for retirement.
Part of this planning involves understanding how certain life decisions can affect your retirement savings. Here are a few personal choices that most people make during their lifetimes, and how they can influence your retirement savings decisions.
Building a Family
Without major reform, Social Security benefits will need to be cut by 23% in 2033. This means that you need to plan ahead to make sure you have enough money to retire comfortably without relying on Social Security checks. A significant part of this plan involves when (or if) you get married or have children.
Due to the skyrocketing costs of weddings nowadays, spending a significant amount of your earnings on a wedding and other big-ticket items generally causes you to have to retire later than people who save that money for retirement instead. Furthermore, if you don’t fix your credit, you run the risk of scrambling to pay off debts instead of funneling that money towards retirement.
Furthermore, especially for people with lower levels of income, having kids is often one of the biggest factors affecting retirement savings. For instance, if you have a child closer to middle age, it’s likely that you’ll need to work longer and cut back on retirement savings a bit to cover the child’s living – and, often, college – expenses.
On the other hand, if you finish having kids in your 20s or early 30s, you’ll often finish footing the bill for them by the time you reach middle age. The combination of higher earning power due to experience and no longer supporting your children equates to accumulating more money for retirement.
A couple that retires at age 65 today can expect to spend about $245,000 on healthcare throughout retirement, making it especially important to be conscious of your decisions surrounding healthcare when planning for retirement.
Now that fewer employers are offering retirement health care benefits and health care costs are rapidly increasing, it’s becoming more important to think about what you want to do regarding catastrophic health care and long-term care costs when you retire. Once you’re no longer working, it’s likely that you’ll face increased costs for medical insurance coverage – despite Medicare. Because of this, consider buying supplemental Medigap insurance to pay Medicare deductibles and copayments, as well as to protect yourself against emergency health expenses.
You should also consider planning for retirement-age long-term care. You may need long-term care when physical or mental disabilities impair your ability to manage basic, everyday tasks. Unfortunately, this type of care can be expensive, especially as people are starting to live longer. Consider purchasing long-term care insurance to help offset this and factor it into your retirement income needs.
High and Low Risk Investments
Different types of retirement investments carry different risks, so it’s imperative to understand those risks and how they can affect your retirement income to best set yourself up for a comfortable retirement. This is especially true considering that men have a 78% chance of living to the age of 75 and women have an 85% chance, as the decisions you make about investment risk now can affect your life for possibly decades after you retire.
Basically, investment risk is derived from fluctuations in the market that can result in depletion of your retirement savings. You can generally assume that market fluctuations will average out over time, but it’s important to consider how much time you have to save up.
Low risk investments provide lower returns and higher risk ones provide higher returns, so it can be tempting to put a lot of your retirement money into a high-risk investment. However, since the market doesn’t always provide positive returns and can provide negative returns for a few years at a time, it’s important to avoid high-risk investments when you’re close to retirement age. When you’re younger, you can afford the lulls associated with high-risk investing since there’s time to recoup losses. As you reach retirement age, it’s often a better strategy to have a mix of low- and high-risk investments to keep you comfortable.
Thinking about saving up for retirement may not be the most glamorous use of your time, but it will certainly pay off in the future. By paying attention to your life choices now, you can set yourself up for maximum comfort as you age.
What are some other important factors to consider regarding retirement savings?
Advantages to Pension Fund Investing
A retirement pension fund is the typical method of retirement savings and investing. For this reason, it’s often viewed as the safer investment bet when you’re planning for your retirement. Pensions rarely lose money that is invested into them, although they may not grow dramatically, either. There are also extensive tax benefits involved when putting your retirement investing into a pension fund. If you choose to use a company pension program, the money you contribute towards your retirement will be pre-tax.
While this reduces your total taxable income in the present, you will be forced to pay taxes on your retirement savings later in life when you go to withdraw. On the other hand, if you invest in a private pension fund, the likelihood that you’ll invest from your net-income (or post-tax income) is high, and your withdrawals during retirement will be completely tax free. Regardless of which fund you choose, having tax benefits on the front or back end of your investing is a definitive benefit of pension fund investing.
Another advantage to pension funds is that, in many cases, an employer will contribute an equal amount up to a certain percentage of your pay towards your pension fund. These match programs can drastically increase your overall retirement savings, and if you contribute wisely at the beginning of your career, you’ll be able to earn interest on a greater amount of funds invested for a longer period. These extended earnings have the potential to set you up nicely in your retirement.
Disadvantages to Pension Fund Investing
While pension funds do offer a secure way to invest and save for retirement, they can also be disadvantageous. The most notable disadvantage of pension funds is the lack of flexibility in when you can access your money. In most cases, you won’t be permitted to withdraw funds from your pension until you’re 55, and even then you’re subject to taxation. For those who are interested in possibly retiring early or taking an untraditional retirement in which they start a second career, go back to university, or choose to live internationally, these pension fund withdrawal limitations may be restricting.
Additionally, the performance of pension funds depends entirely on the investment of your assets. If you invest poorly, or in too conservative a way, your funds may not grow much, if at all. This means that your pension fund is essentially a glorified savings account with employer contribution and better than average interest. Still, for many, this isn’t enough for them to live the way they want to during their retirement.
Advantages to Property Investing
When you choose to invest your retirement funds in property rather than a traditional pension fund, you have significantly more flexibility when managing your investments. For example, you can monitor the real estate market to select the perfect property investment, and from there you can choose to either live there full time, use the property as a vacation space, or make even more money on your investment by setting it up as a rental property. If you ever want to sell your property, it is a physical asset and you have the capability to do so. Whether you’ve decided you’d like to use your funds earlier than planned, or you are ready to invest them in another market, selling property is much easier than cashing out your pension fund early.
Additionally, the property market has more flexibility with the levels it can fluctuate. You can purchase a property in a buyer’s market and sell for significantly more in a seller’s market, often making much more on your investment than you would have made had you put the same funds in a traditional pension fund.
Disadvantages to Property Investing
Admittedly, property investing is much less stable than pension funds. Property markets tend to fluctuate with some regularity and little to no warning. There are also more maintenance expenses and up front taxes involved with a property investment. These upfront expenses can often be a deterrent to those looking for investment opportunities, and few view an expensive property as a viable means to save for retirement as a result. Despite the inherent volatility of property investing, it can often be an excellent vehicle for those looking to invest or to access the return on their investments sooner than a pension fund would allow.
Should You Consider Overseas Property?
The answer to that is a glowing “yes, absolutely”. If you are going to go with property investing in spite of the inherent risk you should consider doing so abroad. Some countries like Romania can offer staggering returns of 7, 8 or even 9% annually. You could potentially diversify your overseas property investments over 4-5 developing countries (in which homes are very cheap in, with high annual rental yield) and minimize the risk, and be much better off upon pension.
You don’t have to worry about dealing with the nitty gritty. There are professionals in the field that specialize in dealing with foreigners. Lawyers, property agents, and international money transfer companies deal with tens of thousands of clients just like yourself.
What is the Bottom Line?
To each his or her own. Both options are valid, it just depends on how risk averse you are, and of course, your financial status. No matter whether you choose to invest in property or a pension fund, be sure to consult a qualified adviser who can help you make the wisest choice based on every factor affecting your decision.
Retired Brains does not offer direct financial investment advice, nor do we affiliate ourselves with any particular financial advisers or firms in the United States or worldwide. Rather, the sole purpose of this article is to present educational, helpful information that can help you decide what kind of investing strategy is right for you in your retirement. If you are interested in learning more about property or pension fund investing, we recommend seeking out a reputable adviser or firm in your area for assistance.
No matter your reasons for wanting to find temporary and part time jobs, it is important to know that you have more options than ever before when it comes to landing the perfect retirement job.
Why Retired Workers are in Demand
More and more are opting to turn to workers with a more mature, loyal outlook on employment. Some of the reasons employers are gravitating toward retired workers to fill temporary and part time job positions include:
This shift in attitude is plainly seen in the steady increase of retired workers in the job force. According to the United States Bureau of Labor Statistics (USBLS), retired workers currently comprise over 8% of the workforce. This number is expected to increase to 11% by 2022. Additionally, recent data from the USBLS shows that as life expectancy continues to increase, so does the amount of older retired workers in the workforce. Specifically, since 1985, the number of retired workers over the age of 75 has more than doubled from 3.6% to 8% currently.
Why Temporary and Part Time Retirement Jobs?
Although some retirees decide to continue working a full time career into their retirement years, we feel this is a decision best left to your individual needs and situation. There is something to be said for allowing yourself to enjoy your retirement as you see fit. The responsibility and, many times, stress accompanying full time career occupations can become more difficult to successfully manage as we age. However, the job can accentuate and compliment your leisure time, and not take away from them in any regard.
Many temporary and part time retirement jobs allow you the freedom to make your own schedule, as well as the other benefits of employment we have discussed already. What is more, many temporary and part time retirement jobs allow you to help other people in various capacities, which is always a wonderfully effective way to be involved and feel great doing it!
You might be asking yourself how you can go about finding jobs that allow you to choose your own schedule, and provide you the opportunity to embark on employment that compliments your retirement living? Well, let’s discuss that right now.
Using Shiftgig to Find Part Time or Temporary Retired Jobs
Retired Brains has found a company that takes a uniquely effective approach to helping retirees find part time or temporary retirement jobs. Since 2012, Shiftgig has helped match businesses in the hospitality and service industries (so people-based businesses) with people seeking flexible, fun and fulfilling part time or temporary jobs.
Shiftgig helps make finding part time or temporary retired jobs easy. First, you fill out an application on their website. From there, a member of the Shiftgig team will reach out to you via email to set up an in person interview. If hired, you'll use their mobile app to browse available work and other specifics relating to the job you choose.
Shiftgig is currently located in 12 cities around the country: Atlanta, Chicago, Dallas, Houston, New York, Memphis, Miami, Milwaukee, Nashville, New Orleans, Phoenix and Tampa. However, their popularity means you should be on the lookout for them to put roots in your city soon. No matter where you look for and find part time or temporary retired jobs in your area, we hope that you find it. What is more, we hope it increases your quality of life by adding value to your retired years, while having some fun in the process!
*Retired Brains is not an employment service, and does not offer job counseling or personalized employment advice. We simply strive to help boomers, seniors and retirees of all ages find resources that help add value to their lives. Retired Brains is not affiliated with Shiftgig, but find their platform to be unique and potentially helpful when looking for part time or temporary retirement job opportunities. Therefore, we always recommend doing your homework to make sure the job resources you choose are a good fit for your wants, needs, situation and of course, technological abilities.
With increases over the past several years in regulations protecting borrowers, reverse mortgages are being considered viable options for helping some people fill gaps in their retirement income. However, the question of, "Are reverse mortgages a good idea?", is solely dependent upon several factors. These factors relate directly to the individual or couple looking to enter into a reverse mortgage agreement.
If you are wondering are reverse mortgages a good idea, we welcome you to read this reverse mortgage information article and learn whether or not you may be a good candidate for one*. Reliable, unbiased information about reverse mortgages can be difficult to come by. If you are looking for trustworthy information about reverse mortgages, it is important to consult organizations that have no direct financial stake in whether or not you enter into a reverse mortgage agreement.
Information About Reverse Mortgages
According to the Federal Housing Administration, approximately 30,000 people entered into a reverse mortgage in 2016. This number is down significantly from the peak of the reverse mortgage boom in 2009, which saw over 115,000 of these types of home loans processed. During the boom of 2009, the reverse mortgage market was deregulated, which ended up causing serious issues for many borrowers.
However, increased lender regulation has afforded better protection for borrowers. Even with more protection, you still should ask yourself “Are reverse mortgages a good idea for me?” based on your specific situation--instead of relying on existing industry safeguards, which might not apply to your situation anyway when push comes to shove. The following information about reverse mortgages can help you decide whether or not you are an ideal candidate for a reverse mortgage…
Who is the Ideal Candidate for a Reverse Mortgage?
More Reverse Mortgage Information
Before applying for a federally insured reverse mortgage covered by the US. Department of Housing and Urban Development (HUD), you are required to meet with a counselor from an independent, government approved housing counseling agency. Your counselor will go over the loan’s cost, as well as any financial implications you should be aware of. This consultation can be incredibly helpful in deciding are reverse mortgages a good idea for your situation. You can visit HUD for a list of counselors, or call the agency at 1-800-569-4287 to learn more. Please note that counseling agencies usually charge for their services. However, their fees can be paid from the loan proceeds, and you cannot legally be turned away if you can’t afford the consultation fee.
Reverse Mortgage Alert: Find Reverse Mortgage Lenders
If you feel as though you would be an ideal candidate for a reverse mortgage, the next step is starting to shop around for the right lender. Retired Brains has found an excellent informational website called Reverse Mortgage Alert you can visit to assist with the shopping process. The Reverse Mortgage Alert website has some very useful information for first time borrowers that can help reduce the confusion and stress often associated with the reverse mortgage process. This includes compiling lender information, providing a reverse mortgage calculator, offering information on the pros and cons of reverse mortgages, and a very informative fact sheet to help empower you in your decision making process. Please visit Reverse Mortgage Alert to learn more.
*Retired Brains is not a reverse mortgage lender, and we do not provide direct or indirect advice on whether or not you should enter into a reverse mortgage agreement. Our sole purpose is to provide you with information that can help you decide if you would like to find out more about whether or not a reverse mortgage is right for you. Therefore, we cannot be held legally or financially liable for your personal decisions. If you have any questions about a current or potential reverse mortgage agreement, we urge you to contact a professional adviser who can help you find the answers you seek.