Get a business start up loan
The internet can be a valuable resource for researching the ins and outs of getting a business start up loan. It can also be a great place to find a reputable mortgage broker, as long as you are careful not to get caught in an online home equity loan scam.
Watch out for subprime lending.
Subprime lending is when a lender offers to give you a lone for an extremely high interest rate and tacks on excessive fees. Usually these loans are given to high risk individuals who are so desperate for a business start up loan that they don't take the time to shop around for a company that will work with them despite a bad credit rating.A merchant cash advance is a safe approach to accessing cash.
Watch out for equity stripping.
Equity stripping is when a loan is based solely on the value of your home, and doesn't take into consideration your ability to repay the loan. The usual result of these loans, is the borrower can't repay it and the lender ends up acquiring the home and all the equity in it.Merchant cash advances help businesses access cash when they need it most.
Watch out for predatory lenders.
Predatory lenders thrive on setting up loan situations in which the borrower is destined to default, consequently losing his home. Some of the signs that you might be dealing with a predatory lender include a broker that requires you to put false information on the loan application, apply for a larger loan than you need, or sign blank business start up loan papers, saying they will be filled in later. You also want to avoid lenders that promise you one set of terms when you first apply and then change the terms when it comes time to sign or refuse to give you copies of the Merchant Cash Advance forms once you have signed. Predatory lenders often misrepresent the type of credit you are being given and fail to provide the required loan disclosures.
There are a lot of reasons to apply for a home equity loan online. The process is fast, easy, and convenient, as long as you take care to avoid the pitfalls of dealing with unscrupulous brokers.Merchant Cash Advance is mostly used by retail businesses that cannot get loans from regular banks.
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Posted on: August 27, 2011 07:43 PM