Month: January 2020

3 Types of Credit That Are Often Used By Society

by admin

In general, everyone thinks that they do not realize they already have a credit score, but in reality if you have a personal account in one of the banks in your name, or have submitted any type of application. So thus, the credit score you already have and is running. The definition of the credit score itself is the value given to each debtor or individual, with the aim that it is used by the creditor in determining the ability of the debtor or prospective debtor to carry out the responsibilities and determine the credit they propose.

Speaking of limited financial capacity, so many financial solutions are currently provided by the government or other institutions. Financial assistance from the government comes through banking channels while several other institutions are present in the form of cooperatives. All of these institutions basically provide the same solution that is a solution in the form of credit, credit is a financial solution to bridge between a person's limited financial ability with the fulfillment of certain desires for goods or services. The types of credit also vary and this is an impact and the answers will vary in human needs as well.


Know the Different Types of Credit

Credit Card

Credit Card

This credit card has become the belle of the public because the submission is the easiest. No guarantees are required when applying for a credit card. And the loan ceiling provided is also diverse. The survey credit card is also easy, only by telephone the customer can get a credit card that is ready to use. Credit cards are debt cards. If this card is used to make payments / purchases, then we will be burdened with debt and bills according to the nominal money we use. Our debts can be paid after the credit card bill is issued. And the good thing is, debt from credit cards can be paid in installments if we are unable to pay in full. But be careful, the remaining unpaid bills will be subject to a penalty alias accumulative interest.


Unsecured Loans

Unsecured Loans

Almost the same as a credit card. The difference is that credit cards give us loans for surveys and considerations of our profession, so Loans without Collateral (KTA) are usually not as detailed as a credit card survey. KTA has a higher interest rate than a credit card. But this KTA ceiling can be higher than a credit card.


Car credit

Car credit

Car loan is a service offered by banks or financial institutions to its customers who want to buy a car in a fast and easy way. Considering that in today's society the need for private car ownership is increasing, car loans give you the opportunity to be able to bring your dream car home without having to have full funds to buy it. The car payment will be made using the installment / monthly installment system such as motorcycle loan installments, KTA, KMG, or KPR, and various other loan products.


The three types of credit are types of credit that can quickly raise your credit score as a customer and your digital credibility has been recorded when you make your recorded credit payments. You can make car loan and credit card payments in the Giant application, because only in the Giant your credit score can be known every time you make payments every month and the more you trade in the Giant, the value of your Giant score will also increase here is one of the benefits if you make credit payments at Giants. By making credit payments on time, accompanied by regular checks of your financial statements, to keep your credit score high. All of this aims to make it easier for you, if in the future you want to get credit.

On pork chops and corporate finance – bank loan

by admin

Financing mixes are similar to balanced nutrition. Anyone who only eats lettuce lives just as unhealthily as a meat fanatic. The right mix determines both short-term well-being and long-term success. In the case of financing, this means specifically: You should differentiate your financing instruments per se and not be satisfied with a conventional bank loan, and you should also consult various financing providers.


Pork chop is in Nogue

corporate loans

Now many friends of the daily pork chop would probably reply to me that they are in good health and extremely satisfied with their lifestyle. However, this does not change the fact that they have been secretly dependent for a long time - on the daily meat consumption or just a single financial service provider. The dependency simply has no immediate effects, which is why it often goes unnoticed until serious damage can no longer be avoided.


The Germans are dependent

What sounds like a grotesquely constructed story is a sad reality in Germany's corporate finance sector: The study of a German finance platform comes to the conclusion that 72 percent of German companies have only one or two bank details. Sounds unspectacular, but it favors financial sclerosis, which, if things go bad, can lead to a heart attack in your company. The thesis of the existing dependence on the house bank is supported by a study by the Federal Association of Free Consultants V., which states that only 23 percent of SMEs in Germany are independent of their main bank.


Why are dependencies so dangerous?

credit loans

Many dependencies are initially invisible - they do not appear in economically comfortable situations. As long as you do not run a marathon, you will not notice anything about your constitution (which has been the result of years of sideburn consumption), and as long as we continue to benefit from low interest rates in Europe, there is supposedly no reason to question the house bank. Assuming that interest rates in Europe rose significantly in the next few years (which almost all experts now assume), then financing would become more expensive - for some providers more, for others less.


The good old house bank has had its day

If silent dependencies are discovered, the good old house bank quickly turns out to be a loan shark and you will be annoyed by your lack of foresight. Apart from the obvious dependency, there are also measurable disadvantages: poorer financing conditions. For many companies, this is not only annoying, but above all one thing: a threat to their existence. A survey by the credit agency Creditreform found that 15.4 percent of German companies are already unable to service the interest due on bank loans. Over the next few years, this value could rise dramatically due to rising interest rates.


Dissatisfaction with house bank widespread

Particularly paradoxical: many entrepreneurs are also dissatisfied with their house bank - according to a Forsa survey commissioned by Lite Lender Bank, every seventh German small business owner. The result is surprising, entrepreneurs currently have more financing options than ever before due to globalization and the rise of FinTech. Once the bank details have been set up, many bureaucratic lazy entrepreneurs seem to put up with inconveniences with their house bank - unfortunately.
The result is monthly avoidable additional costs that damage liquidity and, in the medium term, creditworthiness.


What does a healthy financing mix look like?

There is no universal recipe for successful corporate finance. In principle, it is important that you have at least two bank details in order to strengthen your negotiating position. But that's not enough: A large number of companies finance a large part of their current business via current account lines, although there are often cheaper alternatives. Finetrading, for example, is suitable for purchasing goods: Your goods purchases are pre-financed by an intermediary at attractive conditions, and you receive extended payment terms. Companies that have outstanding accounts receivable from customers can use factoring to minimize outstanding debts and generate immediate liquidity. Anyone who owns large fixed assets can capitalize them in the course of a sale-and-lease-back without having to accept any restrictions in the operating business.


Provider comparison is elementary for the success of your company

financial loan

In addition to diversifying the portfolio, a profound comparison of providers is essential for a successful financing structure. Experience has shown that loan interest rates can vary by up to 5 percent depending on the provider, even with a similar starting position - admittedly, these are astronomical values, but even slight interest rate fluctuations can have a significant impact on your liquidity. Numerous online providers who offer automated financing rankings have also recognized this relevance: However, these should be treated with caution, since hidden costs are often hidden behind the glossy facades: processing fees, mandatory residual debt insurance, prepayment penalties for special repayments - the list of cost traps is long, Alternatively,

In the hope that you have created an awareness of the problems of silent dependencies and one-sided financing portfolios, I now dedicate myself again to my pork chop - but with a side dish - maybe the marathon will work again.