Personal Finance, Loans & Insurance

There is alternatives to conventional truck and construction  equipment financing, bad credit financing is available as long as additional qualified collateral is offered to the niche lenders. Many applicants have bad or marginal credit, under 600, however they have free and clear assets that they have title to. These free and clear title assets may be the bargaining chip that might make a financing deal go from unworkable to a credit approval..

Today’s financial market is in turmoil, many applicants that had good credit two years ago or possible less have marginal or bad credit today. Many businesses that want to expand or start up are locked out conventional financing. These applicants feel locked out of these current market conditions and won’t explore other financing options.

Some niche lenders offer these non qualifying applicants an alternative to conventional financing. The lenders will take as collateral certain qualified assets as collateral to commence a financing deal. These financing arrangements usually run from 30-42 months depending upon the lender and qualifying assets involved….

The type of qualifying assets that these niche lenders like to finance are semi trucks, dump trucks, car haulers, excavators, bulldozers, concrete trucks etc. The lender will qualify the asset you want to finance and at the same time require additional assets that you own free and clear to quarantee the transaction..( See List Below) If the collaterized assets have an auction value more than ,000 a piece and are at least twice the financing amount, there is a good possibility this transaction is workable. Additionally, it is a big plus if the applicant is a homeowner.

Lets take an example, that an applicant has a credit score of 540, wants to finance a dump truck for ,000. He is a homeowner and has free and clear assets that he owns. Lets assume he has three bulldozers with an auction value of .000, 70.000 and ,000. In this example the summation of the first two assets equal 0.000 which is more than 2 x the financed amount. This is the basic calculation to get us to the transaction qualified…

Above is a basic example of this transaction. The minimums that each lender will qualify for is different, some are higher some are lower, call for details. It is important at this stage to inform the readers that the cost of these financing arrangements are not cheap. You should understand the dynamics of the financing arrangement and ascertain your revenue stream can match up properly with the debt you will incur. Additionally, the lenders will verify the market value for all types of assets under their own in house formulas.

Additionally, it is important to communicate here is that these lenders have prepayment penalties up to 10-12 months on these financing deals. On the flipside, this financing could give you the necessary time to clean up your credit and pay off the financing arrangement earlier than 30-42 months. .

Some of the things necessary to get the financing arrangement completed is a signed and dated application, the summary page of your last three months personal and business bank statements. Additional info such as the 2008 and 2009 could be requested as well as a small write up on your business and/or business history. Obviously, a free and clear equipment list is neccesary for the lender to review and an invoice or sales order would be required on the desired acquisition…

Happy hunting for your special bad credit truck and construction  equipment financing……….

Collateral management firms are becoming increasingly important within tradefinance. Collateral managers basically “look after” collateral on behalf of a lender financing goods. By using a collateral manager, the lender can make sure that goods, such as commodities, for example, are being controlled in such a way that if anything goes wrong with the loan, such as the borrower defaulting on payments, then the bank can get its hands on the goods which

are the subject of the loan, and sell them to recover monies lent. Leading international collateral management companies serve a growing international market for structured trade finance, wherein money is lent based on the value of the underlying goods, rather than on the balance sheet of the borrower.

Notwithstanding the fact that most bankers, borrowers and warehousemen say they find collateral management “just too expensive’ their desire to use the services of collateral management companies is increasing. In the absence of totally secure physical commodity storage facilities and resulting from the risks in moving commodities about, banks are obliged to find other structures for protection against physical risks. The collateral management

agreement, or CMA, offered by a number of global firms, offers one such solution.

The CMA is a tripartite arrangement between the banker, the borrower and the collateral manager and it is important to remember the CMA is a bespoke agreement. This means it can be time-consuming and expensive. The CMA is designed uniquely for each transaction and the collateral manager will bargain for fees – for the transaction itself, and for participants in the commodity system. Elsewhere in this book you can read in detail about collateral management, but the key influence collateral managers have on the system is that they:

• Oblige an understanding, through their agreements, among borrowers

of the risks faced by lenders.

• Impose a system on warehouses to comply with rigorous standards

(particularly important in developing countries).

• Manage issues of quality and provide value-added services for

quality/other considerations.

• Define, through the CMA, complex issues such as commingling and lien

over commingled goods.

• Issue non-negotiable warehouse receipts

• Impose controls through the legal discipline of the CMA

• Impose controls on-the-ground discipline as the commodity moves

through the supply chain

• Provide insurance

Some collateral managers make a play of the role of their global insurance cover. There are smaller collateral management firms who depend on this cover, possibly because their balance sheets are not large enough to provide comfort for the bank in the event of a large-scale default. The most efficient collateral managers in the developing world are those who are able to offer local services, make local decisions and sign the CMA’s without

recourse to the HQ in Europe, or elsewhere.

Collateral management is an increasingly important tool in the armoury of any trade financier. The demand for collateral management is increasing and the use CMAs is becoming an important and regular tool for the structured trade financiers right across the planet.

For more information about collateral management, CMAs or structured trade finance, contact Dan Day-Robinson at Day Robinson International in the UK.

Some borrowers want finances where the approval does not take too much time and that too without any obligation. Some do not wish to offer any asset whereas some others for the fear of loosing the asset. If you are in the look out for such finances you can seek the assistance of unsecured finance.

Unsecured finance is a unique loan plan, where you are not required to pledge any asset as collateral against the loan amount. As there is no collateral placed, hence evaluation of the property does not take. This means that processing of the loan becomes fast and the loan does not take too much to get approved. Besides, tenants and non home owners can apply for the loan and use it to fulfill their various needs like starting business, home improvement, purchasing a car, vacation, wedding and debt consolidation. However before sanctioning the loan amount, loan providers usually check the repaying capability and credit status of the borrower.

A borrower is free to avail amount in the range of £1000-£25000 depending on the prevailing circumstances. These loans can be paid back in a time period of 6months-10 years. Since these loans are approved without any collateral, interest rates or APRs are kept slightly higher. This is done to cover the risk element faced by the loan provider.

Despite your bad credit status you can apply for unsecured finance. But for that you have to convince the lender that you are competent enough to pay back the loan amount within the agreed time period.

If you are using the online mode to apply for unsecured finance, it can be termed as a wise decision because here the approval of the loan is fast. You just need to fill an application form citing the necessary details. By taking and comparing the quotes of various lenders, it will be possible for you to select a lender who offers this loan at competitive rates.

Unsecured finance is fitting answer to all your financial needs which does not require any collateral and saves a lot of time.

by: Turk Malloy
Financial necessities do not discriminate between people with and without assets. They occur without any intimation. In the absence of a valuable asset to place as collateral, borrowers find themselves at a loss. But with unsecured loans available, they are in good position to get money. In unsecured loans, typically amounts ranging from £1 000 to £25,000 can be obtained without placing any collateral. Lenders will only assess the borrower’s present employment, past credit record, repayment ability, salary or annual income as yardsticks to approve the loan. Loans are forwarded for short terms ranging from 6 months to 10 years. Absence of collateral makes unsecured loans risky for the lenders. The risk factor involved in deciding these loans affects the loan amount and interest rates.

Borrowers cannot get larger amounts of loan and also have to pay very high rate of interest. These loans are particularly useful when the loan required is small in amount. Unsecured loans are very popular among tenants, non homeowners, salaried and self employed people. People who do not want to risk their property for a loan can also apply for unsecured loans. Bad credit borrowers can also avail unsecured loans but with higher interest rates and stringent repayment terms than good credit borrowers. Borrowers can put unsecured loans to multiple uses like going for holiday, consolidating debt, education expenses, car purchase or renovating homes. Through regular repayment of these loans, any less than perfect credit score can also be improved. Unsecured loans can be obtained from a number of sources like banks, financial institutions, private lenders and even online. Online mode of application is the most convenient and fastest way of getting loans. Through proper online research, better deals can be easily obtained. So for borrowers having no asset or are not willing to pledge their asset, unsecured loans provide viable option to fulfill financial needs.

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