Banking & Finance

Fixed-income investment products known as commercial mortgage-backed securities (CMBS) are backed by mortgages on commercial buildings. The liquidity of CMBS can benefit both commercial lenders and real estate investors.

CMBS loans are often a desirable choice due to their distinctive features. But because they have more intricate terms than conventional loans, it’s crucial to understand the benefits and potential drawbacks of taking one out when investing in commercial real estate. This article discusses the benefits and drawbacks of CMBS in comparison to conventional loans.

CMBS Benefits

The interest rates for commercial mortgage backed securities loans are competitive and lower than those of conventional loans. When calculating the loan amount, borrowers might use a larger loan-to-value ratio to leverage a higher collateral value. Additionally, because some CMBS loans permit interest-only payments for the loan duration, the borrower may have to make fewer debt service payments, which may free up cash flow.

Moreover, upfront costs for originating a new CMBS loan are frequently lower than those for a standard loan, which is also beneficial for freeing up additional funds.

In addition, upon payment of a fee, the loan may be assumed by a buyer of a piece of real estate that has been funded with a CMBS loan, enabling the owner or borrower to sell the property and pass the debt to the buyer without incurring the costs of locating and securing new financing. In this case, the buyer will often be subject to the same conditions as the first owner.

CMBS Drawbacks

There is less flexibility for the borrower to negotiate the loan terms, as CMBS loans are subject to a number of restrictions that may not be present with a typical loan.

CMBS loans also prohibit supplementary or secondary funding. The borrower might also be restricted from refinancing or prepaying a CMBS loan because a CMBS loan aims to maximize returns to investors. Where prepayment is allowed, achieving the payback is often difficult and costly due to prepayment penalties. In a procedure known as defeasance, the borrower can also be obliged to swap out the property for another type of security. Alternatively, the borrower might have to pay yield maintenance, which entails paying the difference between their current interest rate and U.S. Treasury yields. But as was already mentioned, a home buyer might be able to assume the loan.

A servicer also administers CMBS loans in accordance with the PSA and the conditions of the underlying loan papers. These conditions and limitations provide less freedom in loan servicing than may otherwise be allowed in the event of a standard loan. As a result, it could be quite challenging for the borrower to get the master servicer to provide financial support to prevent a loan default. So instead, the loan is transferred to a specific servicer upon the borrower’s default under the loan, whose responsibility is to negotiate with the borrower to resolve the default.

A special servicer can discuss workouts or pursue the foreclosure of defaulted properties. However, a typical loan lender has more flexibility and alternatives for a loan workout with the borrower than a special servicer. Special servicer options include loan modifications, negotiated payoffs, selling the loan, and accepting a transfer instead of foreclosure.

It’s important to note that a CMBS loan has a cash management process that controls cash flow. As a result, the special servicer assumes management of the borrower’s cash flow during the default period once the borrower defaults. This may deprive the asset of vital financial flow needed to maintain the property correctly and need the appointment of a receiver to oversee it. Additionally, because CMBS loans are meant to safeguard the interests of investors, in addition to non-payment, failing to satisfy specific covenant levels may result in cash sweeps or loan defaults.

Loan fees and costs may also be higher in the event of default than they would be with a conventional loan. For example, default interest costs, reports for special services, special servicer fees, legal expenses, loan modification costs, and additional equity contributions add up quickly and are not common in conventional loans.

Final Thoughts

CMBS loans might be a desirable option for borrowers searching for financing because of their competitive upfront costs, rates, and debt servicing obligations. However, before choosing a specific financing option, potential borrowers should carefully analyze their lending alternatives and consider a CMBS loan’s drawbacks.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

For Singaporeans, when it comes to saving money, there are a few options: a regular savings account, a fixed deposit account or an ISA. An Individual Savings Account (ISA) is a particular type of savings account that offers tax benefits. So, what is the distinction between an ISA and regular savings plan in Singapore? Let’s take a closer look.

What is Regular Savings Account in Singapore, and how does it Work?

Regular savings account in Singapore is a type of bank account that allows you to deposit and withdraw money as needed. It typically offers lower interest rates than other bank accounts, such as fixed deposits or ISAs. At the same time, however, it provides more flexibility and accessibility than these other options.

What is an ISA, and how does it Work?

An ISA, also known as a tax-free savings account, is a particular type of bank account that offers some unique benefits when compared to regular savings accounts. For one thing, your contributions to an ISA are not taxed – the interest earned on your investments or savings will be completely tax-free. Additionally, you can withdraw money from your ISA anytime without worrying about tax penalties.

What are the Benefits of having a Regular Savings Account?

One of the main benefits of having a regular savings account in Singapore is that it provides easy access to your money. You can deposit and withdraw funds as needed without any restrictions or penalties. Additionally, many banks in Singapore offer competitive interest rates on regular savings accounts, making them an attractive option for those looking to save money.

On the other hand, one potential downside of regular savings accounts is that they typically offer lower interest rates than other bank accounts. An ISA or fixed deposit account is a better choice if you want higher savings returns.

What are the Benefits of having an ISA Account?

One of the main benefits of having an ISA account in Singapore is that it offers tax-free investment returns. Unlike regular savings accounts, your contributions to an ISA are not taxed, which means you can earn higher returns on your investments over time. Additionally, some ISAs offer flexible withdrawal options and a range of other features that make them an excellent choice for people looking to save money for retirement or other long-term goals.

Another benefit of having an ISA in Singapore is that it provides greater security than typical savings accounts. Many banks will offer insurance on funds deposited into an ISA, which can help protect your money against market fluctuations and other potential risks.

Comparing and Contrasting Regular Savings Accounts with ISA Accounts in Singapore

When choosing between a regular savings account or an ISA, there are a few key factors to consider. On the one hand, regular savings accounts offer greater flexibility and accessibility than ISAs. It makes them ideal for those who need easy access to their money or prefers not to worry about tax penalties on withdrawals.

At the same time, ISAs tend to offer better interest rates and security than regular savings accounts. They may also be more suitable for investing in long-term goals such as retirement planning or saving for significant expenses like a home purchase or education costs. Ultimately, the best option will depend on your individual financial needs and goals.

So, when choosing a regular savings account or an ISA in Singapore, it is essential to consider your situation and financial goals carefully. With proper planning and decision-making, however, you can find the right banking solution to help you reach your financial goals.

Conclusion

Whether you choose a regular savings account or an ISA in Singapore, many benefits can be gained from using these types of bank accounts. When deciding which option is right for you, it is essential to consider your financial needs and goals and the various features and benefits offered by each type of account. With careful planning and research, you can find the right banking solution to help you reach your financial goals.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Credit card fraud is a subset of identity theft, which occurs when criminals use your personal information to pose as you and steal your money. For example, identity thieves can use credentials such as confidential information and Social Security numbers to take over bank accounts, loans, and Social Security checks—taking advantage of your earnings.

Credit Card Fraud: What is it?

Credit card frauds are a type of identity theft in which criminals use their credit card account to acquire or obtain cash advances. For example, your physical credit card, account numbers, and PINs may be swiped, or new credit card accounts may be made in your name without your knowledge through one of your existing accounts. Once inside, the thieves rack up charges that get billed against you and your credit card company.

Credit card companies are aware of the issue and are constantly developing new methods to prevent unauthorized card use. At the same time, resourceful fraudsters (including international organized crime syndicates) continue to find workarounds for new technologies.

Because card companies are experienced in dealing with card fraud, being defrauded is unlikely to cost you money in the long run. Still, necessary investigations can take months, and unaddressed credit card fraud can significantly damage your credit reports and scores.

Dealing with different types of credit card scams can be time-consuming and labor intensive, and the theft of hundreds of millions of dollars each year raises the overall cost of using credit cards for all account holders.

Most Common Types of Credit Card Fraud

Credit card fraudsters are eager to incorporate new technologies into their schemes for obtaining credit card numbers and PINs, supplementing tried-and-true methods as old as credit cards.

Card Theft: Taking a credit card from a table or wallet is a standard method of gaining access to someone’s credit card. A variation on this scheme is to swipe newly issued cards from mailboxes. If your card is lost or if you are notified that you should have received a card that never arrived, informs the card issuer immediately.

Account Takeover: In this method, a criminal contacts your card issuer and uses your personal information to change access PINs, passwords, mailing addresses, and other information so that they gain control of your account and cut down your access to it. Depending on how regularly you use your card, this could take some time to notice and even longer to resolve with the card issuer. To prevent this type of theft, some credit card companies allow the creation of a verbal password that is not documented anywhere else.

Cloned Cards: Devices known as “skimmers” that fit over card readers at gas pumps and retail sales terminals can allow thieves to steal your card number when you swipe your card, then duplicate it for their use. EMV chip-enabled cards have made this process significantly more difficult.

Card-Not-Present Theft: It refers to the fraudulent use of a credit card account that does not necessitate possessing a physical card. It is frequently used to make online purchases and only needs your name, account number, and the card’s security code to be stolen. In recent years, data breaches at retailers and other companies that maintain large card-number databases, as well as illicit website traffic in lists of card users, have exposed the personal information of millions of users.

Detecting and Combating Credit Card Fraud

Credit Card Frauds can be detected early by routinely checking your credit accounts for signs of suspicious activity:

Examine your credit card statements every month, whether you receive them online or in hard copy, keeping an eye out for any unexpected purchases or cash advances. Approach the card issuer immediately to dispute the charges if you notice any unusual purchases.

Defending Yourself Against Credit Card Fraud

Because of the increasing majority of credit card fraud, there is no foolproof way to avoid becoming a victim, but common-sense precautions can help you prevent it:

• Protect your wallet or purse, and never leave your credit cards unattended when you’re out and about.
• Keep credit cards at home rather than carrying them with you, never take your Social Security card unless necessary (for example, when obtaining a passport), and always return it to safekeeping when you’re done.
• When purchasing online, ensure the website is secure (look for “https://” at the beginning of the site address), and avoid storing your credit card number on the website.
• If scammers are asking you to provide a credit card number, Social Security number, or other personal details over the phone, make sure you speak with someone you trust. If the request comes from a phone call, consider whether the organization they claim to represent should already have the information they require. If in doubt, call them back and use a verifiable phone number.
• Visit the Credit card recovery companies for more information and tips on avoiding credit card fraud. They will assist you by providing a free copy of your credit report, investigating disputed credit report information, and removing the information from your credit report once the fraud is proven.

Conclusion

Fraud is a negative side effect of using credit cards for convenience. However, knowledge and vigilance can help you stop credit card fraud, and acting quickly and decisively can help limit the risks if you become a victim.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

A direct deposit title loan may be the answer if you require quick cash. These loans can be deposited into your bank account within hours, making them a convenient option when you need money fast. However, it is vital to understand how they work and what to expect before you apply. Here we will explain the basics of direct deposit title loans so you can decide if this type is right for you.

What is a Direct Deposit Title Loan, and how does it Work?

A direct deposit title loan is a short-term loan that uses your car title as collateral. The loan amount is based on the current market worth of your vehicle, and you can typically borrow up to 50% of the value of your car. These loans are meant to be repaid within 30 days, although some lenders may give you up to 60 days to repay the loan.

You must complete an application online or at a storefront lender to get a direct deposit title loan. The application will ask for information about your vehicle, contact information, and bank account details. Once approved for the loan, the funds will be deposited directly into your bank account. You will have a set period to repay the loan, plus interest and fees.

The great thing about title loans is that they can be processed quickly. You will most likely get the funds from your loan within 24 hours, and some lenders may even be able to deposit the funds into your account within a few hours. It makes title loans a convenient option when you need money fast.

What are the Eligibility Requirements for a Direct Deposit Title Loan Online?

To be eligible with your Missouri title application, you must own a vehicle with a clear title. You must have paid off your car loan, and there can be no liens or encumbrances on the title. You will also need a steady income source to qualify for the loan. And finally, you must have a valid bank account to receive the funds from your loan.

If you meet these requirements, you should be eligible for a direct deposit title loan online. These are quick and easy to apply for and can give you the money you need when you need it most. So if you need quick cash, consider applying for a title loan today.

How do I Apply for a Direct Deposit Title Loan Online, and what is the Process Like?

Applying for a title loan online is a quick and easy process. Fill out an application with your personal and vehicle information, and you will typically be approved within minutes. When approved, the funds from your loan will be deposited directly into your bank account. You will have a set period to repay the loan, plus interest and fees. The process can take as short a day, so a title loan may be the right option if you need money fast.

What are the Benefits and Drawbacks of Direct Deposit Title Loans?

Several benefits of direct deposit title loans make them a popular choice for those in need of quick cash. The lender can deposit it directly into your bank account within hours, so you can quickly get the money you need.

Another benefit is that you can typically borrow up to 50% of the value of your car, so if you have a high-value vehicle, you may be able to get a more significant loan amount. Finally, these loans are typically repaid within 30 days, so they do not have to be a long-term financial commitment.

There are also some drawbacks to direct deposit title loans that you should be aware of before you apply. One of the most important disadvantages is that your car could be repossessed if you do not repay the loan on time. Another downside is that title loans typically have high-interest rates and fees, so they can be expensive. Finally, these loans are meant to be short-term solutions, so if you need long-term financing, a title loan may not be the right option for you.

Are there other Options for Title Loans if I don’t want a Direct Deposit?

Yes, there are other options for title loans if you do not want a direct deposit. You can choose to have the funds from your loan deposited into your checking or savings account or pick up the cash from a storefront lender. Whichever option you choose, you will still need to meet all of the eligibility requirements for a title loan, and you will be responsible for repaying the loan plus interest and fees.

What if I can’t Repay my Title Loan?

If you cannot repay your title loan, you may be able to extend the terms of your loan or roll over the balance into a new loan. However, remember that this will typically result in additional interest and fees. Your car could be repossessed if you do not make your payments on time.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

A majority of people do not consider checking their credit score except when they are applying for a loan. Some people avoid checking their credit score because they are afraid to know their position. There are also others who ignore the idea of a credit score altogether because they are unaware of the features and benefits of having a high credit score. Some people even think that checking credit scores can impact your credit line.

However, this is not the case. A credit score is a three-digit number that rates your credit repayment efficiency using your past loan records, EMIs, and repayment history. Therefore, checking your credit score and slowly building it is critical for maintaining high creditworthiness. Let us discuss the importance of checking your credit score regularly and how it can help you in taking loans efficiently.

Why Should you Check your Credit Score from Time to Time?

Here are some of the reasons why you should check your credit score regularly.

It Helps you Understand your Credit Position

In a way, a credit score is a modern scale of determining your financial health. Therefore, it is essential to check your credit score, even if you are afraid that you may have a low score. Checking your credit score gives you an idea of where you financially stand. Don’t worry if you have a bad credit score, as good credit practices can boost your credit score in no time.

It Helps you Maintain or Improve your Credit Score

If you want to apply for a loan in India, then your credit score is considered very important as it is the very first thing that is verified before getting a loan. Majorly, the credit score is tracked by CIBIL in India, making it the most widely accepted credit score. While your salary is not cited anywhere in the credit score result, it is one of the factors that are used while calculating your score.

Additionally, Acibil score range between 700 to 900 is considered excellent and enables you to avail almost every loan scheme available in the market. Building a credit score takes months and checking and analysing your credit score in depth can give you the time to plan and build an excellent CIBIL score.

It Helps you Keep a Check on Inaccuracies

In several credit reports, the credit score system can create inconsistencies and mathematical errors. Repayment details and past loan records can also not show up in the final credit score report. Checking your credit score in due time can help you resolve tracking problems so that the credit score report will be updated will all the correct information. Sending the glitch details to the credit institutions will also help you get the right results.

It Helps you Predict your Loan Application Status

Predicting the result of your loan application is impossible if you have no idea about what your credit score is. Knowing about your credit score lets you plan ahead. For example, if you have a good cibil score range, you don’t have to worry about your application being rejected. Similarly, having a low credit score enables you to create backup plans in case your application does not go through.

It Helps you React to Changes Quickly

Keeping track of your credit score can give you useful insights that enable you to react to market changes quickly. If your credit score has decreased, you can seek information about what caused that. Alternatively, if you manage to stand in the good cibil score range, you can pursue the loan that you are interested in. Taking small personal loans and repaying them within the due date can help boost your credit rating seamlessly.

It Helps you Avail Better Loans

The more your credit score grows, the better loan plans will you be able to access. So knowing about your credit score beforehand can be useful in striking a loan agreement with lenders. Checking your credit score also gives you a vision of when can you avail better loan plans or a credit card with much better terms and conditions. Moreover, maintaining a good cibil score range increases your trustworthiness, with lenders giving you access to premium loan schemes.

How to Check the CIBIL score

Here are the steps that tell you how to check free cibil score:

Step 1: Go to the CIBIL website at www.cibil.com.

Step 2: Choose “generate your CIBIL score” from the options on the page.

Step 3: Provide all the necessary personal information like name, address, email, and registered ID.

Step 4: An OTP will be sent to the registered number. Enter it and click on continue.

Step 5: Now login with your details and your CIBIL dashboard will open. It will show you all the details regarding your credit score.

In Conclusion

To sum up, credit scores can help you get a better understanding of your financial standing by providing a numerical score based on your past patterns of credit loans and repayment. Regularly checking and analysing your credit score can help you understand the concerning factors that can catch a moneylender’s eye, and you can take precautionary steps to rectify them.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

Refinancing your auto loan is a great way to get a better deal on your vehicle, whether you want to lower your interest rate or shorten the length of your loan. But before you jump in with both feet, there are several important factors to consider before refinancing your auto loan:

Your Existing Interest Rate

Your existing interest rate is the first thing to consider when refinancing your auto loan. You can save a lot of money by finding a lower interest rate, so it’s important to find the lowest rate you qualify for. It’s quite likely that your current lender will be able to help you do that, but it’s not guaranteed—and if they don’t offer competitive rates or decide not to refinance with them, then you may want to consider looking elsewhere.

Credit Improvement

Your credit score is a numeric representation of your creditworthiness, or how likely you are to repay loans and debts. The higher your credit score, the more willing lenders are to work with you. If you have a low credit score, it can make refinancing your auto loan less appealing to lenders.

A “car loan refinance calculator can help you estimate how much money refinancing your vehicle loan could save you” as per experts like Lantern by SoFi. So, using an auto loan refinance calculator is not a bad idea.

Your Credit Score

Your credit score is a number that indicates the creditworthiness of a consumer. If you have a high credit score, it means that you are considered to be more trustworthy and reliable when dealing with lenders. You would have better chances of getting loans at lower interest rates and higher amounts. If your credit score is low, you may find it difficult to secure a loan or refinance your auto loan in the future.

The Length of your Loan Term

The length of your loan term determines how much you will pay in interest throughout the course of your auto loan. The longer the term, the lower your monthly payment and vice versa. When deciding on a loan term, consider how long you plan on keeping your car and whether or not you’ll be able to afford larger payments at the end of shorter loans.

Several Months of On-Time Payments

You can improve your chances of being approved for refinancing by making on-time payments and keeping your credit score high. The longer you make the same monthly payment, the more stable it will become in a lender’s eye.

Also, if you’re applying for an auto refinance after having had a vehicle repossessed or defaulted on in the past few years, this could hurt your chances of approval because it indicates that you have issues managing money and bills.

Available Cash or Equity in the Vehicle

If you have cash or equity in the vehicle, a refinance can be a great option. Refinancing allows you to use your existing funds to pay off your loan and save money on interest.

It also gives you the opportunity to get a lower rate if you qualify for it. A lower interest rate could mean more savings over time because you’ll be charged less each month for your car payment and therefore pay down more of your balance over time.

In conclusion, refinancing your auto loan is a great way to save money and get better financing options. However, there are many things to consider before making any final decisions about refinancing your car.

Jason Obrien

Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.

No matter how long you have been a part of the workforce, comfortable retirement is a dream that every employee has for their future. Whether it is traveling the world or making sure your children will have a safety net for their futures, a retirement plan can help you realize your personal financial goals. It not only allows you to live comfortably while you work but also set aside savings for when you eventually retire so that you can ensure that you will have a peaceful retirement and will be able to provide for your family and yourself when the time comes.

401(k) plans from Ubiquity are the best way to ensure that you will meet all your financial goals and keep a steady retirement fund for the future. These plans are business-sponsored retirement accounts that allow employees to deposit a set percentage of their monthly and annual income into a traditional or Roth account. Having a retirement plan is equally beneficial for both employees and business owners as it lends stability to their work and personal lives and imparts distinct tax advantages depending on the type of plan selected.

Types of 401(k) Plans

Diving headfirst into the world of personal finances can be highly challenging, especially if you have no prior knowledge of retirement funds and how they work. However, it is essential to remember that despite the often-complicated jargon surrounding these plans, they are quite easy to understand. Here are some of the most common types of 401(k) plans available in the United States.

Traditional 401(k)

A traditional 401(k) allows employees to contribute their share via deduction of the gross income. This deductible is applied before income taxes, which means that the total taxable income of the employee is decreased by the amount of 401(k) contributions made during a fiscal year. Taxes are not levied on the money held in a 401(k) or subsequent investments until the amount is withdrawn in the future.

Roth 401(k)

A Roth 401(k) allows employees to contribute their share after the income tax has been deducted. Since the tax has already been deducted from their overall income, there is no additional tax levied on the amount during the fiscal year or after retirement when the employee withdraws their 401(k) amount.

SIMPLE 401(k)

For all intents and purposes, a SIMPLE 401(k) is a hybrid between a traditional 401(k) and a Roth IRA. These plans have lower limits for contribution compared to a traditional plan, and there is a smaller degree of flexibility associated with customizing the plan for your business or employees. However, like both the plans mentioned above, a SIMPLE 401(k) allows both employees and business owners to take loans against their savings and pay them back to their accounts.

Conclusion

A 401(k) plan allows both employers and employees to save funds for their post-retirement lives. Having a financial safety net can be crucial in surviving the increasingly volatile global economy. It also allows you to diversify your investments such that the risk of financial investment is evenly distributed, and you remain safe from any unexpected financial losses.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.

The financial crisis left a huge mark on our economy, being a massive struggle for smaller businesses in comparison to larger firms. With big decisions needing to be made, jobs were lost, spending was cut, and plans to grow were put off as businesses fought to stay afloat. In order to keep their businesses alive, many small business owners had to take drastic measures and many were left without a penny, spending all of their savings or having to go to a payday loan direct lender UK for advice and financial support.
As we look back on the impact that the global financial crisis had on small businesses and their finances, here are some of the most notable takeaways:

Jobs were Lost

During the financial crisis, layoffs at small businesses were dramatic and we saw millions of jobs lost over a small period of time. With small businesses being a huge part of the employment market, this loss saw huge impacts on families all over the country. Workers in industries that relied on high external financing, such as manufacturers, were more likely to become unemployed during the financial crisis as the companies struggled to keep on top of their sales. With so many job losses yet so few job openings, many people struggled drastically to keep up with their bills and lifestyles, making the crisis span wider than just business owners.

Less Start-Up Ventures

Before the crisis, the number of start-up businesses was rapidly on the rise as people pursued their dreams and created their own business ventures. As the crisis hit and sent many of these into administration, there was a newfound fear for those considering bringing their visions to life as they feared that they would not be able to stay afloat and did not have much disposable income to put into the matter. Although we saw the numbers pick back up following the financial crisis, the rate never fully recovered.

Commercial Lending Demand

The number of commercial loans to small businesses came to a virtual standstill during the financial crisis. Loans by large banks to small businesses became practically non-existent and loans by small banks were down dramatically, bringing the total amount of commercial loans to small businesses down by billions as companies were not in a position to borrow money that they were uncertain they would be able to pay back.

Alternative Lending Options

The term alternative lending used to be limited to factoring where businesses’ invoices were bought at a discount, but to meet the needs of small businesses lacking access to traditional financing during the financial crisis, some companies started to offer new financing options. Merchant cash advances are similar to factoring but are based on a company’s credit card transactions, becoming a more popular option during the financial crisis even though the cost of this method is very high. Equipment financing also became more popular during the financial crisis as it was a way for vendors to sell their products to small businesses on payment terms.

Ifama

Hi! This is Ifama. I am a student and giving my services in SEO. I have a lot of experience in digital marketing. Travelling is my hobby and I love visiting different hilly areas and doing adventures.