Loans

Loan advice from ASC Financial Solutions – Milton Keynes, Buckinghamshire

What is a Business Loan?

Most people who are starting a business require some funding or a loan to get them going. You can get a business loan from a wide range of lenders in the UK – from online independent companies offering a flexible term and loan repayment system to mainstream banks.

The easiest way to find the right loan is by taking time and comparing the offers. You can find a variety of loan amounts – usually they fall into two categories: £1,000 to £25,000 and over £25,000 (up to £1 million) and will carry either a fixed or variable interest rate. In many cases, interest can be offset against tax liabilities.

Depending on the size and provider of your business loan, you can choose whether you want interest paid on a monthly or quarterly basis.

Secured-Unsecured-Loans-and-Remortgage There are a large number of different products on the loans markets, and finding the right loan for your needs can prove difficult.

So what is the difference between Secured and Unsecured Loans, and Debt Consolidation Loans? Who are these loans for and for what should they be used?

Secured Loan

A Secured Loan is a loan where an asset, usually a flat or house, is put up by the borrower as collateral against the loan. This means that if the borrowers fail to make repayments on their secured loan, they may be liable to lose their property. So although these loans are actually easier to obtain and you are likely to borrow a larger amount of money than an unsecured loan, they carry a significant risk.

Unsecured Loan

An Unsecured Loan, otherwise known as a Personal Loan, is a loan which is lent to a borrower without the individual having to put up a significant asset such as a property as collateral against the loan. Thus, despite the name, it is actually a safer loan for the borrower, although it is less easy to obtain and usually paid back over a shorter period than a Secured Loan. Generally Personal Loans are approved on the basis of the borrower’s credit rating.

Debt Consolidation

Often managing a large number of different debts to different lenders and all at different rates can be hard to keep track of. Credit Cards, various loans and personal debts all incur different interest rates, amounts and payment dates, and you may be paying some high rates on some of these debts. Consolidation Loans help many thousands of people manage their money better by grouping together these existing debts, and reducing their monthly payments. So by getting a Consolidation Loan, the individual may be able to pay back existing debts and is then left with one low interest monthly payment to make.

It sometimes may be worth considering re-mortgaging in some cases to pay off some loans, although it is sensible to seek advice on this route.

*Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or other debt secured against it.

Request an appointment with a Financial Adviser in Buckinghamshire, Bedfordshire or Hertfordshire.

Alternatively, to discuss your circumstances with a qualified adviser now, please contact us today on 01908 260033 or request a call back using the form opposite.

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