4 invaluable tips for first time logbook loan applicants

The economy is not as it was before and even with the most cautious financial management practices, you may still have a hard time surviving on your salary alone. And with banks and other financial institutions constantly thinning the line on who can get a loan, getting that financial help can be a bit harder. However, a good alternative would be to get a logbook loan. They are fast, flexible and you could get a much larger loan. While this may seem attractive, these loans can place you in an endless cycle of debt. To avoid that, here are some tips you need to have.

Try limiting your payment periods

Logbook loans tend to have interest rates that increase almost exponentially. So when quoting your payment periods, avoid staying with the loan for too long. Don’t settle for the lowest monthly figure. Instead, try and quote a slightly higher value that will considerably shorten your loan repayment time.

Additionally, go for a logbook lender that doesn’t have any early repayment penalties, so that you can repay the loan whenever you run into some extra cash. That way, you could settle the whole amount in as little as 3 or 4 months as opposed to the agreed period.

Do your homework

As mentioned, logbook lenders are mushrooming all across the UK, so you should be really careful on what lender you go for. For starters, you need to do your research. Go for lenders that have an established reputation with a high number of positive customer reviews. You can use third party sites to compare different lenders. Here’s a useful link for comparison.

Remember, some of these third party sites may be scrupulous and squeeze as much money from you as possible.

Read the fine print

Another good tip you can go for is reading the fine print. That’s where the rules of the game are. Don’t be intimidated by the length of the document. The APR ate would only give you a good idea of the interest rates, but the fine print is what would inform you of what would happen in case you don’t pay on time, or the actions to take if you wish to alter your payments. Additionally, here’s where you’ll get to see any hidden charges if present.

Go for only what you need

Once you’ve decided on a lender, it’s time to decide on the amount. With your car as collateral, you’ll be in a position to borrow huge amounts of money, sometimes a lot more than you need. And here’s where things go wrong.

Failure to correctly asses your needs can cause you to get more than what you need. You’ll end up paying higher interest rates and in the event you fail to repay the full amount, you risk your car being taken away.

5 tips to improve cash flow

Cash is king in the business world, so if you’ve got a business, then you probably want to hasten your cash flow. It doesn’t matter if you’re going to be streaming in a million in the next 3 months, if you don’t have enough money to sustain you till then, you may not even realise those earnings. What you want to do here is increase your cash flow and do it fast.

And it’s not that complicated. All you need to do is collect your receivables as fast as possible and simultaneously slow down your payables. Here’s how to do it.

Go for business credit cards

If you’re looking for a quick fix, then go for a business credit card. Such a card would allow you to pay off your vendors without necessarily cutting your account’s value for a few more weeks. Keep the card’s grace period in mind so that you don’t get to suffer from the hefty interest rates.

According to REL, top performing companies stretched payables by an additional 10 days and collected 17 days faster.

Forecast on your future cash flow

If you want to ensure you improve your business cash flow, then you need to look ahead. Projecting your future cash flow would give you a pretty good idea of what moves to make now. This is particularly important for most small and medium businesses, and companies often get blindsided by the skyrocketing costs that come with immediate growth. A growing business would need more employees, improved infrastructure and a bugger inventory, things that can end up costing the business a lot. Prior planning would enable you to know when to expect such surges in expenses and plan for them accordingly.

Improve your marketing

Improved marketing boosts your cost per lead, eventually keeping customers longer and even opening up untapped markets. If you don’t know where to start, you can hire a third-party consultant to assist you with that.

The first step is in implementing a content marketing initiative so that you can get a better idea of your customers and improve your leads. You’ll also get a better idea of another product/service to sell.

Replace old inventory

Old inventory not only takes up space, but can also slow down your business processes. Slow printers or outdated desktops for instance, may boot slower and have compatibility issues with newer technology. You should therefore get rid of such equipment. You could sell it out to get acquire some revenue for getting the new equipment.

Buying new equipment on the other hand, can prove to be expensive. Tech moves fast and you may need to start training your workers on usage of the new equipment time and again. Additionally, compatibility issues with multiple brands may occur if you don’t pick your products carefully.

That’s why leasing is the perfect solution. You can have the latest technologies and not worry about the costs of buying new equipment.

Conclusion

Remember, your business needs constant monitoring and tweaking, you don’t just set and forget. Determine how your money allocation procedure is and try to improve on it.

Selling your car safely – DIY vs. selling to a dealer

You have spotted the car you would give your all to have, and you can even picture yourself giving it a roar of a lifetime. However, you need to tie up one loose end…selling your old vehicle.

The options are two, fairly basic but can out you in a perennial dilemma; selling to a dealer or privately. Choices have their pros and cons, and though there’s no clear line that serves all, you can equip yourself with the knowledge that’ll help you weigh your options better. Your option would depend on a variety of factors; the condition of the car, its model and the current market situations.

Selling your car privately

This is an option that gives you the power to make the most out of your car. DIY selling would enable you to properly prep your car and it can give you a lot more coins on it. With DIY selling, you’ll be selling your car at its retail value and not its wholesale price like you would in a dealership sale.

If your car is a hotcake in the market, then you’d want to sell it privately. You won’t wait so long before the buyer’s call comes through and once you eliminate the middleman, your financial kitty would thank you.

Additionally, if your car is really old or one that’s clocked over 100,000 miles, you’d also benefit most by privately selling it. That’s if you’re watching your pockets of course. Dealers tend to be very unemotional when quoting their prices and if you’ve got a car in poor condition, you’ll definitely want to stay out of their way.

If you set a realistic price, upgrade your car, smile and play your cards right, then you’ll be pocketing a substantial sum for it in no time.

Selling to a dealer

You may think DIY selling is a no brainer, but it’s got its downsides too. You’ll have to get your hands dirty when getting your vehicle ready. Change oils and top up the fluid levels, thoroughly clean it, place ads online, and then deal with the buyers, some of whom are going to waste your precious time by make inappropriate calls and asking for inapplicable bargains.

That’s where dealers come in, they take all that headache away. The process is quick and hassle free and all that’s involved is coming up with a price agreement and voila! Sold.

Besides, you won’t have to stress yourself upgrading and repairing your car cause what would cost you hundreds of dollars costs the dealer a tiny fraction of it. You’ll also save yourself a lot of time especially if your car is not a market sensation.

Thing is, a dealer doesn’t do charity, that’s a business they’re running so you can be sure of quite a substandard price quote. When selling to a dealer, focus on the car’s strong points and emphasise on them but also ensure you are aware of its defects. Once the dealer points them out, you can counter by giving them the repair costs reminding them that it’ll cost way less to repair it than if you did it yourself.

In the end, it’s all a matter of convenience and price, there’s no definite right or wrong answer. A dealer offers convenience at a lower price but a DIY sale would take up your time and energy but give you a better return.