Acquiring loans intelligently is possible if you have full knowledge of the step you are going to take and the ability to cover this new obligation
You have always seen the borrowing of financial institutions as something negative, something similar to a last option to which you must resort, because in doing so, you acquire an eternal debt that you will never be able to settle or because, as you believe, the interest you are going to pay is too high. pay. However, this is not always the case, it all depends on the utility that this credit will provide you.
When you are going to request an intelligent loan, you must take into account some rules that are going to allow you to determine if your decision is the right one, or if, on the contrary, what you are doing is totally wrong. The rules are the following:
1. The first rule you must meet to make your loan smart, is to have total clarity about what you are going to use it, if you do not know what you want to lend, it is better that you do not, because this way, the money will not have a purpose and you are going to give it any direction.
2. In the second instance, do what you can to make your indebtedness sustainable , that is, finally end up paying for yourself, at this point, it is crucial to have a business idea or an option in which you want to invest, in this way your credit is going to have a totally clear destination and is perhaps going to double in profitability.
3. From another point of view, a smart loan can do it when you have several accumulated debts and want to lend in a single entity to pay off the small debts and be left alone with a loan. This modality is also called a portfolio purchase and is considered smart because interest is reduced and you usually pay a lower fee than the many installments you had until the time of the loan.
4. If you had already purchased a large loan and the one you are going to ask, for now, it is not enough to cover it, DO NOT TAKE IT! In this way, your finances will only tend to get worse because they will keep 2 high fees that you will not know clearly if you are going to be able to pay. This advice is in case they are personal debts, if your debts are for business, you can evaluate it more openly.
Keep in mind that smart loans do not only apply for high amounts of money, they are also applicable to low amounts.
However, the rules have the same essence, but seen from a shorter point of view, remember that our credits are ideal for specific times where you need the money in record time, whether to invest, for an emergency or an obligation.
If at the time of applying for a merchant cash advance direct merchant lenders you meet one of the 4 previous rules, surely you will be making an intelligent loan. However, it is also important to determine secondary factors such as:
1. What is your ability to borrow or the ability to borrow from your business ?: Make a list of expenses, projections and income that you expect to have during the time the credit you get, set goals that help you determine what amount of work you require to be able to pay the debt that you are going to take.
2 How long is the loan that you request projected?: Defines how long you want to pay this loan, regardless of the term that the bank or the financial institution, you must set a goal yourself that is real and achievable.
3. What happens if the ease of payment you have now changed over time ?: Contingency plans are effective for both companies and individuals, you must think about what would happen if the investment you make will fail or if the work you do support your debt is finished, this way, you will avoid despair and bad times in case of failure.
4. How can this decision affect you in the long term ?: There are plans that can be obstructed when obtaining a credit, so before doing so, you must look to the future and think which of those plans you will have to postpone in order to comply with this obligation. you just acquired
5. Can you pay your credit before ?: Always remember that everything is in your mind, if you decide that you can pay your loan before the established time, surely it will be, but of course, everything must be planned before and detail exactly how it will be fulfilled this objective.
Before applying for a loan for you or your business, evaluate very well in what state your pocket is, do not ask for money without thinking before how you are going to pay it, because in this way the only thing you will do is worsen your financial situation.