WHAT DO YOU NEED TO KNOW BEFORE APPLYING FOR A BUSINESS LOAN OR CAR LOAN?
Let us discuss the points before you apply for loan.
Understand your loan purpose Being clear on why you want to borrow is the first step to choosing the right loan and it’s one of the first questions you’ll be asked by a lender.
Work out the loan amount • Check out the amount you want to take loan for. • This is done because you need to tell the lender about your income, assets, liabilities and your ability to make repayments.
Decide between a secured or unsecured loan Secured loan • You offer an asset for the loan, such as property. • The interest rate will usually be lower than the unsecured loan. • The lender may put your asset on sale if you’re unable to reimburse the loan amount.
Unsecured Loan • Unsecured ----- No asset is necessary. • The interest rate is higher than the secured loan. • It can sometimes be more difficult to be approved for an unsecured loan
Choose a fixed or variable interest rate • A fixed interest rate may be more appropriate and help manage your cash flow better by providing certainty with your repayments. • Both car and business loan has different interest rates. So stay updated.
Get your paperwork ready Keep Important papers ready such as - • Proof of income such as a pay slip or tax return. • Proof of your current ongoing expenses such as rent/bills. • Personal identification such as a passport or driver’s license. • Take care of all these points mentioned for all type of loans!
Thank You! For any loans Contact https://www.gccbusinessfinance.com.au/