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Applying for a Short Term Business Loan Online? These 4 Steps Can Protect Your Startup.

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I recently met an entrepreneur who started a franchise in his mid-50s with funds from his 401k but was now in a tough spot. His first payroll check had just bounced and he was shaken up about it, as his franchise employed 30 people and he dreaded the thought of having to shutdown.

Like many others, this entrepreneur experienced sporadic cash-flow droughts in his first years of business. To rebound quickly, he took out cash advances that quickly led him into a cycle of renewals. Now, cash advance merchants claimed 30 percent of his monthly revenue.

Visit: Entrepreneur Bank Search — A search tool to help you discover local banks.

As the founder of a small-business loan advisory, my firm often receives calls from entrepreneurs who are stuck in a debt cycle. I see many cases where the entrepreneur realizes the risks of cash advances or short term business loans too late and they’re left repaying with huge percentages of their revenue, plus the expensive fees and interest rates.

Better standards for this self-regulated industry would help, but until those standards are in place, entrepreneurs need to educate themselves about this industry and the impact merchant cash advances might have on their business. Here are steps entrepreneurs should consider taking before signing the dotted line.

Related: How to Cure Entrepreneurial Brain Freeze

  1. Applying for a short term loan online or cash advance should always be your last resort because these forms of capital are often the priciest option. If you’re considering one of these loans take a step back and look at investment lenders or SBA lenders who will offer you much longer amortizations and reasonable interest rates.
  2. Before you take on one of these loans or advances, ask your vendors if they can be flexible with your payments. Even if the vendor charges you a fee, it will likely be cheaper than the short term online lender.
  3. If you do choose to pursue one of these loans or advances, the most important step is to calculate your daily payment to the lender. These payments will come out of your checking account daily for the life of the loan. Think long and hard if you will be able to handle these cash withdrawals.
  4. Also, the lenders or advance companies will often encourage you to take the shortest possible loan. In the cases where these loans are the only choice for your business, I encourage a borrower to take the longest possible loan, and get the smallest possible daily payment. While the longer loan will cost the borrower more dollars in the long run, you have to think about your cash flow. If you take the shorter term, you might be forced into a renewal half way through your loan or advance in order to keep up with the cash flow.

With the right education, entrepreneurs can keep running their businesses instead of getting trapped in a debt cycle until better standards for unregulated lenders are in place.

Visit: Entrepreneur Bank Search

[…]

TitleMax Opens 13th Car Title Loan Store in New Mexico

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Getting a title loan with TitleMax means you can get the cash you need while maintaining the use of your vehicle.

Albuquerque, NM (PRWEB) January 20, 2015

TitleMax, one of the nation’s largest and fastest growing car title loan companies, continues to expand westward. It recently opened its 12th location in the Greater Albuquerque – Santa Fe Area and its 13th location in the state of New Mexico. The new store, which opened Friday, January 16, 2015, is located at 1205 N. Riverside Drive, Espanola, NM and can be contacted at (505) 395-2495.

Hours of operation are Monday – Friday from 9:00 a.m. to 7:00 p.m., and Saturday from 10:00 a.m. to 4:00 p.m. Residents in this area can now visit this new store for all of their short-term cash needs.

“The team at our new TitleMax location is excited and ready to help the residents of Espanola obtain the short-term cash loans they need,” said Otto Bielss, Senior Vice President of Operations for TMX Finance. “Getting a title loan with TitleMax means you can get the cash you need while maintaining the use of your vehicle.”

About New Mexico Car Title Loans

A title loan is a fast way for credit-challenged individuals to secure the short-term cash they need. To get a TitleMax car title loan in the state of New Mexico, an individual must have a clear, or lien-free, car title, and a government-issued ID. With these items an individual can obtain a title loan up to $10,000 while still maintaining the use of their vehicle. No insurance is required, there are no credit checks and most loans can be completed in as little as 30 minutes.

There are more than 1,450 convenient TitleMax locations throughout the Southeast, Southwest, Midwest, and West Coast. For more information, or to find a TitleMax near you, visit TitleMax Locations.

About TitleMax

TitleMax, a subsidiary of TMX Finance, provides financial products to people without access to traditional credit alternatives. TitleMax has been a trusted consumer lender for over 17 years, helping hundreds of thousands of people in getting cash when they need it. Since its inception in 1998, TitleMax has grown to over 1,450 stores, spanning 18 states and provides car title loans to over 3,000 people each day.

Please visit http://www.titlemax.com/ for more information on car title loans and how TitleMax can be of service.


[…]

Should You Get a Loan Instead of a Credit Card?

Whether it’s an emergency or a planned expense, you’re likely going to want to finance a large purchase at some point. Among the handful of options consumers have in these situations, a credit card is the most common way people spread out a large expense over several months, but not everyone has that option, and it may not be the best one for those who do. Instead of using or opening a credit card to finance something, you may want to consider taking out a personal loan.

No Room for Excuses

When you charge something to your credit card, you might end up paying for it for a long time. One of the nice things about credit cards is their flexibility — if you don’t have the cash you need to pay your entire bill this month, you can pay any amount above your minimum payment and face relatively minimal consequences for doing so. The balance will accrue interest, but as long as you make your payment on time and keep your balance low, relative to your credit limit, it won’t have do major credit score damage.

People often abuse that flexibility, and the lack of urgency in paying down credit card debt can allow the balance to snowball into an intimidating sum. With a personal loan, you have to repay it within a specified time frame, forcing you to prioritize the payments.

“It’s sort of forced discipline,” said Gerri Detweiler, Credit.com’s director of consumer education. Some people need that extra push to stick to their get-out-of-debt plans, Detweiler noted, which is why the personal loan route may appeal to some people over credit cards. Additionally, because it’s an installment loan, you’re not going to add to your burden, like you might with a credit card. That’s another issue a lot of people encounter with credit cards: It’s hard to stop spending.

Prevent Credit Damage

Before you can decide what’s better for you, you’ll need to have an idea of where your credit stands. If you have poor credit, you may not be able to qualify for a new card or loan. On top of that, you won’t be able to estimate how your choice will affect your credit. You can get a free credit report summary on Credit.com every 30 days to help you with these and other financial decisions.

If you see your credit utilization is high — meaning you use more than 30% of your available credit — adding a large purchase to your credit card is probably going to damage your credit score. There are a few things you can do to avoid that: Ask for a credit limit increase, open a new credit card for the purchase (increasing your overall credit limit and keeping utilization down on other cards) or seek an alternative financing method.

Going for a personal loan could help you build credit, too, because your mix of accounts has an impact on your credit score. It’s not as influential as your payment history or debt use, but if you only have credit cards, adding an installment loan to your credit portfolio can boost your score, Detweiler said. It’s important to note that applying for new credit will cost you a few score points in the short term, but as long as you do it infrequently, applying for a new card or loan won’t hurt you in the long run.

Save Money

Before using a credit card to finance a large purchase, check your card’s APR. If you have a high or variable interest rate on that debt, you should look into personal loans. With good credit, you’re likely to qualify for a personal loan with a low interest rate, making the purchase more affordable over time. There’s another option for borrowers with good credit: 0% financing promotions. If you can qualify for a credit card with a 0% promotional finance period and you can pay off the purchase within the promotional period, you won’t have to pay interest on the purchase at all (although you may have to pay a balance transfer fee). If you don’t stick to that plan, though, you may see your APR skyrocket, negating the purpose of getting that card in the first place.

Explore your options. Depending on your credit score and your current access to financing tools, one route may have many more advantages than the other, but if you don’t consider all your choices, you can’t be sure you’re making the best one. It doesn’t matter if you’re using the card or loan to pay for an emergency car repair or a much-wanted home improvement — just make sure you have a plan to pay for it.

More from Credit.com
How to Get a Personal Loan With Bad CreditThe Credit Card Payoff CalculatorHow to Get a Credit Card With Bad CreditCreditFinancecredit cardcredit score […]

Bank's loan sale doesn't end risk

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Posted: Friday, January 2, 2015, 9:58 AM

Despite the retirement of founder Betsy Z. Cohen and a Dec. 31 deal to sell off one-quarter of the Cohen family-controlled loan and cash management company’s $1.1 billion in largely Philadelphia-area business and consumer loans, The Bancorp still has a ways to go before the Wilmington and Philadelphia-based company will have a positive new story for investors, writes analyst Frank Schiraldi in a report to clients at Sandler O’Neill + Partners this morning.

Schiraldi notes the company sold its $268 million “nonperforming/sub-performing” loan book, which had already been marked down by $54 million (plus another $4 milllion during the fourth quarter) to around $210 million, for $194 million in 10-year senior and subordinated notes at around 2.2%, plus $16 million in (probably) cash.

But “unfortunately, the sale does not result in a ‘clean break,'” Schiraldi writes. “We were disappointed” to see that Bancorp is still exposed to losses from the portfolio — because the buyer “is a newly-formed entity, Walnut Street, in which the bank owns a 49% stake.” Plus, most of the proceeds of the sale were paid for in Walnut Street debt, which is backed by those same lower-quality Bancorp loans and collateral (the Philadelphia-area properties whose owners used them to secure their loans from Bancorp).

“We would have thought that minimizing future exposure to this book would have been a priority,” but maybe Bancorp could find no other buyers, Schiraldi adds. Given the small bounce the stock enjoyed on Cohen’s departure announcement (after a sharp decline since last winter), Schiraldi expects shares may now drop again, at least in the short term. The analyst expects the bank will report a fourth-quarter loss, and will keep the stock rated “hold” at least until Bancorp gives investors “greater clarity” on how it will boost profits from its remaining business lines.

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U.K. Confirms Payday Loans Caps Coming In January | TechCrunch

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Strict new price caps will come into force in the U.K.’s payday loans market in January, sector regulator the Financial Conduct Authority (FCA) has confirmed, affecting any U.K. businesses that offer this type of short-term consumer credit.

The FCA said today that from January 2, 2015 it will be imposing an initial cost cap of 0.8 per cent per day for all high-cost short-term credit loans, which means interest and fees must not exceed 0.8 per cent per day of the amount borrowed.

It will also be applying a total cost cap of 100 per cent on a loan, meaning a borrower must never pay back more than 100 per cent of the amount they borrowed in order to protect them from escalating debts. Fixed default fees are also capped at £15 for borrowers who do not make loan repayments on time. And interest on unpaid balances and default charges must not exceed the initial rate.

The result of the regulatory caps will be a far smaller payday loans market, and one which can’t generate huge profits at the expense of the most vulnerable borrowers. Last year one payday loans company, Wonga, listed its representative annual interest rate at 5,853 per cent.

In the first five months since the FCA has been regulating the sector it said the number of loans and the amount borrowed has dropped by 35 per cent. Going forward, it is estimating the new price caps will mean seven per cent of current borrowers may no longer have access to payday loans — some 70,000 people.

“These are people who are likely to have been in a worse situation if they had been granted a loan. So the price cap protects them,” it notes.

Caps on the payday loans market have been expected since 2013, when the duty to cap the cost of credit was formally established through the Financial Services (Banking Reform) Act 2013. The FCA spent this summer consulting on its proposed caps and has today confirmed the levels it was consulting on.

“I am confident that the new rules strike the right balance for firms and consumers. If the price cap was any lower, then we risk not having a viable market, any higher and there would not be adequate protection for borrowers,” said Martin Wheatley, the FCA’s chief executive officer, in a statement.

“For people who struggle to repay, we believe the new rules will put an end to spiralling payday debts. For most of the borrowers who do pay back their loans on time, the cap on fees and charges represents substantial protections.”

The FCA notes that from January 2, no borrower will ever pay back more than twice what they borrowed, while someone taking out a loan for 30 days and repaying on time will not pay more than £24 in fees and charges per £100 borrowed.

Wonga still looks to be charging higher rates of interest and fees than the impending price caps will allow. A loan fee calculator on its website states that a £100 loan taken out for 30 days will incur interest and fees of £37.15. But from January 2 the same loan will have its interest and fees capped at £24.

Last month Wonga was forced by the FCA to write off the debts of some 330,000 customers, and waive the fees and charges of a further 45,000 — taking a write down of around £220 million — after admitting its affordability checks had been inadequate.

It has put in place interim measures to test affordability, and is in the process of rolling out a new permanent lending decision platform that reflects the new affordability criteria. But the company — which for years touted the speed and efficiency of its technology platform in making lending decisions – will clearly see its business shrink further when the new price caps come into place.

Featured Image: Howard Lake/Flickr UNDER A CC BY-SA 2.0 LICENSE […]

MoneyGram Extends Exclusive Relationship With ACE Cash Express

DALLAS, Texas Oct. 16, 2014 (GLOBE NEWSWIRE) — MoneyGram (MGI), a leading global money transfer and payment services company, announced today that it has renewed a longstanding contract with one of its largest agents, ACE Cash Express, Inc., an Irving, Texas-based financial services company. The extended seven-year agreement builds on a strong collaboration between the two companies who have strategically worked together for 25 years to provide access to alternative financial services for consumers throughout the U.S. With this renewal, MoneyGram has now secured eight of its top ten agents through the first quarter of 2017 or beyond.

“We are extremely pleased to renew our agreement with ACE Cash Express, which has been an excellent partner in growing our U.S. business. This renewal underscores MoneyGram’s dynamic global brand, track record of success in more than 200 countries and territories, and unique approach to serving our agents and consumers,” says Pamela H. Patsley, MoneyGram’s chairman and chief executive officer. “Our U.S. customers have relied on our services at ACE Cash Express locations for decades, and together, we look forward to building on our shared success. MoneyGram is continually focused on enhancing service delivery, and we value ACE’s ability to meet consumer needs for send transactions, cash pickup and bill payment services.”

With the agreement, MoneyGram’s full suite of services — money transfers, money orders, bill payments — will continue to be offered at more than 1,400 U.S. ACE Cash Express stores.

Consumers can also access MoneyGram’s online services through the ACE Cash Express website, where they can connect directly to MoneyGram to transfer funds or pay bills.

“For more than a quarter of a century, ACE Cash Express and MoneyGram have provided convenient financial services to millions of people,” said Jay B. Shipowitz, chairman and chief executive officer of ACE Cash Express. “ACE’s priority is to provide consumers with access to products and services that will help them meet their financial goals, and we believe that ACE’s partnership with MoneyGram continues to be of tremendous value to our customers.”

About MoneyGram International, Inc.

MoneyGram, a leading money transfer company, provides essential services to consumers who are not fully served by traditional financial institutions. MoneyGram offers worldwide money transfer services in more than 200 countries and territories through a global network of 345,000 agent locations, including retailers, international post offices and banks. MoneyGram also offers bill payment services, issues money orders and processes official checks in select markets.

About ACE Cash Express

ACE Cash Express, Inc. is a leading retailer of financial services, including payday loans, installment loans, title loans, check cashing, bill payment, wire transfer, money orders and prepaid debit card services. ACE is the largest owner and operator of check cashing stores in the United States and the second largest owner and operator of short-term consumer loan stores in the United States. ACE focuses on serving consumers, many of whom seek alternatives to traditional banking relationships in order to gain convenient and immediate access to financial services. For additional information about ACE Cash Express, visit www.acecashexpress.com.

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Media Contact:
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[…]

TitleMax Opens Additional Car Title Loan Store in Houston, TX

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The team at our new TitleMax location is excited and ready to help the residents of Houston obtain the short-term cash loans they need.

Houston, TX (PRWEB) October 06, 2014

TitleMax, the nation’s largest and most reputable car title loan company, recently opened its 267th location in Texas making this store its 66th in the Greater Houston Area. This new store opened Wednesday, October 1, 2014. Residents can now visit this store for all of their short-term cash needs.

The new store is located 8197 Antoine Drive, Houston, TX 77088. Store hours are Monday – Friday from 9:00 a.m. to 7:00 p.m., and Saturday from 10:00 a.m. to 4:00 p.m. The store can be reached by calling (281) 931-4910.

“The team at our new TitleMax location is excited and ready to help the residents of Houston obtain the short-term cash loans they need,” said Otto Bielss, Senior Vice President of Operations for TMX Finance. “We pride ourselves on providing an exceptional level of customer service in our stores and our newest branch is no different.”

About Car Title Loans

A car title loan is a fast way for credit-challenged individuals to obtain the short-term cash they need. To secure a car title loan with TitleMax in the state of Texas an individual must have a clear, or lien-free, car title and a government-issued ID. With these items an individual can obtain a loan up to $5,000 while still maintaining the use of their vehicle. No insurance is required, there are no credit checks and most loans can be processed in as little as 30 minutes.

There are more than 265 TitleMax locations throughout the state of Texas. To find a TitleMax near you click Title Loan Stores.

About TitleMax

TitleMax, a subsidiary of TMX Finance, provides financial products to people without access to traditional credit alternatives. TitleMax has been a trusted consumer lender for over 16 years, helping hundreds of thousands of people in getting cash when they need it. Since its inception in 1998, TitleMax has grown to over 1,450 stores, spanning 17 states and provides car title loans to over 3,000 people each day. In some instances, TitleMax acts as a Credit Access Business and assists customers in obtaining loans through a third party.

Please visit http://www.titlemax.com for more information on car title loans and how TitleMax can be of service.


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Educating on payday loans/ short term loans | The Quick Loan Shop

Payday lenders have spread across the globe with their offers of short term, immediate loans, either helping those who are in dire need for the credit that banks refuse to offer, or feeding off of the poor and desperate, depending on who is looking at it and why. Most of the Payday controversy comes out of the UK, the USA, Australia, and South Africa. Across the pond a teacher from Reading, Ohio recently decided to take his students out on a field trip. His mission: to show these young adults that pitfalls of the dreaded Payday and Pawn shop industry. Packing 40 odd students into a bus, they set off to visit the world of quick cash.

Mr. Page is the economics teacher at one of the local high schools and as is faced daily with the struggle that his students go through to survive. Many have served prison sentence, some are already parents or have to work after school to help their families financially. Part of this teacher’s mission is to instill sound financial values in these kids; good saving habits, the need for a great credit rating.

The first stop is LoanMax, a short term lender where you can use your paid off car as surety. The students were informed that the interest rate for a short term loan would be 24.99% and that should the client default on even one payment, the car could be instantly repossessed.

Second stop is CheckSmart. The welcome is not very enthusiastic to say the least and when the students begin to ask about Payday lending and tax refund anticipation loans they are informed that the manager is not available to answer their questions.

Third stop is at CashAmerica. This establishment is bustling with activity. It is Friday and everyone is in to pay on their loans. There is an array of goods that have been used to pay off loans on sale. Here a friendly member of staff happily explains how things work at CashAmerica. She mentions that most of the repossessed goods on display are bargains worth looking at should one be shopping for hi-tech equipment, jewelry or other valuables. Interestingly it is here that the kids meet a somewhat ethical approach to the Payday loan industry. As they leave the establishment they are strongly urged to protect their credit scores.

Mr. Page is amazed, “I was taken by her honesty. She said that this is where you go when you’re in trouble, and she worked there! Everything in there had been taken from somebody.”

The day ends back at the school library where a representative a Credit Union as well as one of the local banks came to address the students. Finally the students fill out a work sheet with resources and information on the different Payday, Pawn, and Quick Loan options on the market today.

It is innovative teachers like Mr. Page who can really make a difference by educating the public on how to use these services, when to use these services, and how not to get into difficulty by taking out cash loans when one shouldn’t do so.

This entry was posted in Short term loans on September 22, 2014 by . […]

MP backs call for payday loan ad ban (From The Northern Echo)


MP backs call for payday loan ad ban

ZERO TOLERANCE: Darlington Labour MP Jenny Chapman

First published in News
Last updated

A CALL to ban payday loan adverts from television and radio before the 9pm watershed has received the backing of a North-East MP who said she would go even further.

The Children’s Society through its ‘Debt Trap’ campaign wants the Government to amend the Consumer Rights Bill so such ads are not broadcast to impressionable children.

Darlington MP Jenny Chapman, who previously proposed a Private Members’ Bill banning payday lenders from advertising on television and radio at any time of the day or night, said she wanted a “zero tolerance” approach.

She said: “I would go even further, but I am really pleased that The Children’s Society has come out with this position and it might help move the debate forward.

“Unfortunately these adverts make this type of borrowing seem normal and it should not ever be seen that way.

“These businesses make their money out of exploiting people.”

A survey by YouGov on behalf of The Children’s Society found that almost three quarters of parents (70 per cent) living in this region backed a ban before the 9pm watershed with 27 per cent believing companies put pressure on children to pester their parents to borrow more money.

The survey also quizzed a sample of children aged 13 to 17. Seventy two per cent had seen or heard an advert for a payday loan company in the past seven days. Ninety three per cent knew of at least one payday loan company and 55 per cent could name three.

One third (34 per cent) said payday loan adverts were “fun, tempting or exciting” and they would consider using one in the future.

In 2012 a committee of MPs said many households were being plunged into a “deadly debt spiral” as a result of a rapid growth in the availability of short term loans which in some circumstances can come with annual interest rates of up to six thousand per cent.

Meanwhile, the Children’s Society and StepChange Debt Charity published figures in August showing that there were 45,906 families in the North-East in problem debt owing £75.2m between them.

Matthew Reed, chief executive of The Children’s Society, said: “It is crucial that children learn about borrowing and money from their school and family – not from irresponsible payday loan advertising.

“A significant majority of parents in the North-East of England back a ban and it’s now time for the Government to act.”

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