Banking Finance

Now that you have all your loan modification forms organized, you are now ready to contact bank for loan modification. Your first phone call will not be as bad as you think; your lender wants to know why you can’t pay your mortgage and honesty does want to try and work something out with you. It’s important to call banks and tell them why you haven’t been able to make your mortgage payments. Until you contact banks and tell them what’s going on with your mortgage payments, they will have no choice but to assume the worse and initiate foreclosure.

Once you finally get a loss mitigation specialist on the phone you will need to provide them some generic information so that they will be able to pull up your file.  Sometimes when you first call banks, your lender will ask you to tell your whole story to them over the phone, other times they will ask you to fill out their required forms and send them back. You never want tell your entire situation over the phone when you contact bank loss mitigation departments. If they ask you to, politely tell them you would prefer to send them all this information in writing because you feel it will be more accurate. If they still insist you tell them everything over the phone, tell them you do not have it all in front of you and you will call back with the information. You never want to give your lender any information you are not prepared to give.

How To Contact Bank Supervisors & What To Say…

After you fill out all these loan modification forms and know the exact numbers, then it will be ok to verbally tell your lender this information.  When you call banks, giving your lender estimated numbers off the top is a fast way to get your loan modification denied. You need to be 100% prepared when you call mortgage lenders or run the risk of not getting your modification approved. The whole point of filling out all the paperwork included in this kit is to make sure you will qualify for a loan modification. Remember to call bank supervisors or try to get in touch with one as soon as possible. Supervisors are the ones who actually have some type of authority to make a decision on your loan modification. Contact bank supervisors every time once you get their contact information. The key is to make friends with a few people in the loss mitigation department who have background knowledge of your file.

Your lender will probably inform you of the required loan modification forms that need to be completed and where to send them. Before you hang up make sure you confirm important bank contact information with your loss mitigation specialist such as: bank fax #’s, bank telephone #’s, bank addresses, bank email address, etc… Our Free Do It Yourself Loan Modification kit includes all the bank telephone #’s and bank email addresses to speak to the right people. This initial bank telephone call is not the time to tell your entire story to your lender. The purpose bank contact is simply to inform your lender that you need help and would like to start the loan modification process right away.

Sometimes after you contact bank employee’s you will be told that they don’t have a loss mitigation department. Do not accept this! Every lender has some type of department that handles foreclosure and loan modifications. You are most likely speaking with someone who simply doesn’t know what they are talking about.  When you contact bank loss customer service employees, try asking for the home retention department, loss mitigation department, or briefly explain your situation to them. If this doesn’t work, hang up and call bank again. It is amazing how different the information you receive can be from person to person when you contact bank employees. This is why it is so important to keep an accurate lender call log sheet to keep track of all bank contact. Speaking with the same few people every time is very important when you contact bank loan modification/loss mitigation departments. These people will have some sort of background knowledge of your loan modification file and things will usually progress much more rapidly.

As the banking industry continued to hemorrhage in 2008, 25 U.S. banks failed. Among them were Washington Mutual and IndyMac, the first- and third-largest bank failures in U.S. history, respectively, but there were also scores of smaller regional banks throughout the nation.

According to the American Bankers Association, 98% of the nation’s 8,500 banks are considered well capitalized, making the chance of any one bank going bankrupt highly unlikely. Still, bank failures increased markedly in 2008 and will likely continue in 2009 under current economic stresses.

Most U.S. banks are insured by the Federal Deposit Insurance Corporation (FDIC), so in the case of a bank failure, any one individual’s bank deposits, up to $250,000 at any individual institution, are protected by the FDIC. (The coverage limit, which Congress increased last year due to the banking crisis, will remain in force at least through December 31, 2009, but may then revert back to $100,000 if Congress takes no further action.)

But what happens to your mortgage, car loan or credit card account if the bank that loaned you that money goes out of business? Could their loss be your gain?

Unfortunately, you are still on the hook for any and all debt you have incurred. If your bank fails, you’ll need to pay close attention to how you handle your loan payments in the ensuing months.

Here’s what to do:

1. Continue making your monthly payments on time, and as usual. Don’t fool yourself into thinking that the upheaval of a bank failure is an excuse to skip payments. Doing so will only hurt your credit, as late payments will be reported to the credit bureaus; if you skip payments on a credit card account, late payments could also increase your interest rate.

In the event of a bank bankruptcy, the FDIC will assume control of the bank until it finds a stronger bank willing to buy the assets of the failed bank. Because your loan is a legal contract, neither the FDIC nor any bank that buys the failed bank can change the terms of your loan, and you, as borrower, are still bound by the same terms to repay the loan as originally agreed

Credit card account terms, however, are not fixed like a house or car loan. If another bank purchases a failed bank’s credit card accounts, the new bank is not required to honor the interest rate or other terms of the original account, like annual fees, over-limit fees or late fees. Still, it’s in the new bank’s interests not to reshuffle the deck, because making radical changes could trigger an exodus as the old bank’s credit card customers reject the new terms en masse

In short, most credit card holders won’t notice any changes in how they can use their cards, but if you could be considered a borderline credit risk by the takeover bank, it’s possible they’ll change your account terms or even close it. Cardholders with a high credit score have the least to worry about.

Financial planner and author Suzie Orman advises keeping copies of your cancelled checks and loan payments for at least six months following the takeover of your bank to avoid potential problems if your payments aren’t recorded during the transition. (If that were to happen, you would then need to check your credit report to ensure the takeover bank has not reported your payments as late or delinquent.)

If you’re already delinquent on your mortgage payments, there’s a chance that bank foreclosure proceedings will be temporarily stopped, giving you a chance to negotiate an agreement on payments that help you stay in your home.

2. Read your mail and any correspondence concerning your bank’s failure. It’s important to be aware of any changes regarding to whom you write your checks and where you mail them, but continue writing your checks and mailing payments to the same address until you are notified otherwise. Be careful, bank failures represent another opportunity for scammers looking to steal money from unsuspecting bank customers by concocting bogus emails or websites redirecting your payments.

Check the FDIC website for specific details on how accounts and loans at each of the banks that failed in 2008 are being handled.

Although the FDIC insures bank accounts, experiencing a bank failure when your personal savings are involved is still unsettling, and most customers would prefer to avoid that possibility altogether. To protect yourself:

1. Be sure your bank is FDIC-insured.
2. Be sure that your deposits at any one bank, whether they’re certificates of deposit, money market accounts or savings and checking accounts, don’t exceed the $250,000 FDIC coverage limit.
3. Be cautious about opening any one-year or longer-term CDs that exceed $100,000 before December 31, 2009. Unless Congress acts to continue the extension of the FDIC coverage limit to $250,000, a CD over $100,000 may not be fully insured after that date.
4. Check the strength of any institution with which you’re considering banking by visiting an online bank rating service. Although many bank failures can’t be anticipated, understanding the overall strength of your bank can be helpful in assessing the risks.

It is a fact that at one point in time or another nearly all entrepreneurs need a bank business loan, either to start up the enterprise, expend it, or to bridge difficult times when the consumer turns fickle. Of the many lenders and types of loans available, a bank business loan will probably be the best bet for starting the venture. A bank business loan is often the best way to establish and maintain your venture’s credit rating, if it is fastidiously repaid.

But, if you are experiencing financial problems, is a bank business loan a good idea to use to get current on the debts? Just what is a bank business loan and what is the application procedure? A bank business loan is an unsecured loan that does not require collateral of any kind. It is based entirely upon the credit rating of all of the involved partners; the prospectus or the plan that was developed that outlines the venture, including both the financial liabilities and the anticipated income. You will have to provide well-organized and scrupulous detail, together with a good credit rating for this type of loan. A bank business loan is the primary vehicle for starting up an enterprise and gets a venture off to a good start, however it is a poor remedy for existing financial problems.

It is far better to obtain professional advice on how to deal with your financial problems. The first thing that a qualified business debt consultant will want to know is the type of loans and financial obligations make up the entire situation. If you have unsecured debts, especially a bank business loan, there is quite a bit the consultant can do to make things easier for you to repay your business debt, continue running your venture and even improve your credit rating. One solution that may be proposed is business debt consolidation, which consolidates all of the financial obligations into one account that requires just one affordable payment per month. This has been worked out by the consultant together with all of the creditors who have agreed to accept a reduced payment that is based upon a lowered interest rate.

If the financial obligation is more problematic and either represents a large amount, or has become delinquent, the consultant may recommend business debt settlement. This form of financial relief is aimed only at unsecured loans such as a bank business loan and business debt settlement can be effected in a couple of days.

With either remedy the credit rating will begin to improve almost immediately. When creditors see that a professional business debt reorganization program is being worked out, the business credit rating reflects their approval. However, it is always best to seek help before any real damage is done and to anticipate a remedy before it is actually required. With the advice of a good business debt consultant, any venture can stay on track without taking out additional bank business loans.

Check these links to learn more:

http://www.commercialdebtcounseling.com/

http://www.commercialdebtcounseling.com/business/business-y/business-index.shtml

Wondering whether you’ll be able to get a loan for your business? Getting a business loan is one of the toughest tasks to accomplish for a company owner. Although banks represent a very cost effective source of funds, they are very selective about the customers they take. This is especially true nowadays were commercial credit at banks is very tight. Most banks will only provide business loans to companies that have a solid track record and substantial assets. But, what if your company does not meet the banks criteria? What is you are a startup or if your company does not have traditional assets such as real estate? One business financing alternative that has been recently gaining traction could be the right solution for you. It’s called accounts receivable financing.

Accounts receivable financing, commonly called factoring, is a type of financing that helps companies that need to wait 30 to 60 days to get their invoices paid. It provides funds to pay employees and suppliers while you wait to get paid by your commercial clients. Accounts receivable factoring is different than a business loan because the factoring company does not lend you money. Rather, the factoring company advances you money based on your open invoices and gets paid once your customer pays.

A typical transaction would work as follows. Once you deliver your product and send the invoice to the client, you submit a copy of the invoice for financing. Within one to two business days, the factoring company advances you about 80% of the invoice. Once your client submits the payment in full for the invoice, you get the remaining 20% less a small fee charged for the service. Costs are usually determined based on the size of the financing line and can go from 2% to 5% for 30 days depending on the specific details of the transaction.

One of the major benefits of receivables factoring is the flexibility that it provides. Your maximum financing line is determined by the invoices you submit and is tied directly to your monthly sales. This means that your financing line increases dynamically, as your business grows. This provides the liquidity you need to stay current on your obligations and enables you to maximize sales opportunities.

Another benefit of factoring invoices is that it’s relatively easy to obtain. The biggest requirement is that you do business with reliable companies (or government agencies) that pay in 30 to 60 days. This is critical because your invoice is the collateral, for lack of a better term, that the factoring company is financing. Aside from that, your business needs to be properly organized and well managed.

Invoice factoring has been around for quite a while and has been gaining traction in recent times as a flexible solution to finance business growth. Due to its structure it’s the ideal source of financing for startup and growing companies alike.

For the growth of your business or to meet the cash flow shortages, you have to struggle to attain capital. But, for small business houses, if the loan and credit are limited, then you can opt for accounts receivable financing. Account receivable financing is selling your invoices at a discount to a factoring company, which is prepared to take risks on the receivables and offers instant cash.

Extending payment terms is quite common in the business world. Your company is bound to run in problems, unless you have sufficient cash for business expenses such as rent, salaries and suppliers. The ultimate result would be, either you will settle for low pay orders to conserve cash or delay the payments of your staff and key suppliers.

Obtaining a business loan from bank is quite difficult, unless you have a good record and substantial assets. Banks only lend to organizations, which can provide a profitable operations for many years and a detailed financial statement. Apart from the loan, there would also be a fixed amount. For additional expenses, again you may have to go through the same process.

So the best option would be going for accounts receivable financing also known as factoring, which will pay you immediately to meet your business expenses. Moreover accounts receivable financing can be easily obtained than a bank loan. The work process of receivable factoring is quite simple. It gives you an advance payment, which ranges from 80 to 90% of the invoice depending upon the kind of industry and your clients. Now this advance helps you to pay the current expenses rather than waiting for the delayed payments from the clients. The remaining transaction that is 10 to 20% with a deduction of factoring fee is settled as soon as your client pays the open invoice.

Factoring fees are determined by the amount of financing you receive and on the payment reliability of customers. The monthly cost may vary from 1.5% to 3.5%. Accounts receivable is a cost effective solution and a best tool to make financing and sales grow in your organization. This accounts receivable will also help you to go for better pay orders too.

One of the major benefits of accounts receivable financing is the flexibility. The financing lines of your organization by the invoices you submit are tied directly to your monthly sales. This means that as your financing line increases your business grows. This will provide you cash and enables you to maximize the sales opportunities. Accounts receivable financing helps you to maintain a steady cash flow in your organization. It increases working capital of your business.

You now have control on your money, even if your clients pay after 30 or 60 days. Your running expenses can be easily taken care of. Due to this increased working capital, the factoring financing availability grows automatically. Unlike banks, you don’t need approval every year for additional funding and have a 30 day rest period every year, before drawing on a line. Moreover, you don’t have to pay any kind of monthly loan payments. You can take advantage of trade discounts, which are offered by the suppliers. Now you can concentrate more on the company’s growth than on managing your receivables. This will lead you on the road of success.

Income and expenditure are normal activities of our day-today life. But proper financial planning maintains the balance between income and expenditure. However, there are various resources to do the proper financial planning which can be derived from financial advice. Financial Advice is given in relation to financial matters such as investing, insurance, borrowing, saving and retirement plans. The giving of financial advice is a regulated activity in many jurisdictions. To obtain all but the most arbitrary financial advice, a financial adviser must consider your financial position, your needs and your individual preferences. This often means having a face-to-face interview with an adviser, although you can get advice in other ways, including by telephone, e-mail, or correspondence.

However, you can follow some regulations as a <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=http://www.investguidepro.com>financial advice</a> to maintain the balance between your earnings and expenditures. The foremost important thing is to learn the art of investment. Every dollar earned must be divided into four parts out of which one part should be kept aside to meet essential expenses, one to be invested in, one to be invested for retirement savings and one part for emergency expenses. Plan your credit report, taxes, and expenses. Keep a watch and learn how to regulate yourself. If volume is high, consult the financial adviser. Avoid the debt trap set by credit card companies and the easy availability of loans. Make wise decisions when buying a home, office, and more. Avail a mortgage that works for you. Take enough insurance but learn the art of saving on premiums, clubbing policies, and umbrella policies. Avoid lending money or borrowing money. Review your financial plan regularly and make the necessary adjustments. Try to be informed about current market trends and latest updates in economies. The World Wide Web is a knowledge highway and brings financial advice to the finger tips. Abreast of money management, taxation, insurance, and property laws can be very useful for your finance plan. Avail the financial advice from renowned and experienced advisers well in time to maintain your financial future.

The banking industry is a highly regulated industry with detailed and focused regulators. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers. Be it an auto loan, a bank loan for a specific purpose or a home loan, present day banking system provides loans for practically anything and everything that one may want to own. Bank loans are easily accessible and are quick and easy to arrange, often a loan can be agreed in the local branch straight away and the money can either be automatically transferred immediately into the customers’ current account. Be it an auto loan, a <a rel=”nofollow” onclick=”javascript:pageTracker._trackPageview(‘/outgoing/article_exit_link’);” href=http://www.investguidepro.com>bank loan</a> for a specific purpose or a home loan, present day banking system provides loans for practically anything and everything that one may want to own. With the passage of time, bank loans have become so versatile that there are bank loans for buying white goods, consumer goods like computers and even for repairs, renovations, marriages and celebrations etc.

Bank loans are mainly categorized as secured loans and unsecured loans. Other types may include mortgage loans, equity loans, interest-only loans, consolidation loans etc. Equity loans are also given for many reasons like medical expenses, housing maintenance, children education etc. Broadly speaking, even credit cards are a form of a bank loan that you can repay and some banks even offer you loans to pay up other loans you may have taken in the past. While applying for bank loan, be sure to maintain proper documentation as banks have strict terms for approving loans. They need to have pay stubs, bank statements and their credit report for the loan application. One must ensure that there are no bad debts in credit report. This can allow the person to make sure they adhere to the banks qualifications which can make the whole loan process go smoother and faster.

So you are thinking about starting a business, buying a franchise or expanding your existing business, but the question is where do you get the money. You have some of your funds, but it clearly wouldn’t be enough. The first thing that comes to your mind: I need a business loan. Most people believe the only place to obtain a business loan is a bank, but we all know that banks are notoriously difficult to deal with. Many businesses that apply at banks are declined for multiple reasons: not thoroughly prepared application package, not meeting the bank’s lending criteria, or not presenting the package correctly. In addition, most of us would prefer to avoid a nerve-wrecking meeting with a business loan officer when the fate of your business is being decided.

Is there a way to avoid all of this frustration and obtain a business loan that would help your business? The best option is to use a reputable business finance consulting company. Business finance consultants are in the business of helping clients find business financing. They typically have a network of lenders and they help business owners or owners-to-be prepare the package and submit it to the right lending source, which may or may not be a bank. Business finance consultants are skilled at selecting the most appropriate lending source for each business loan maximizing the chances of approval. They will not only guide you through the process, but also review your documents to make sure that everything makes sense and is consistent. A good business finance consultant is like a coach that helps you through the business loan process and handles most of your communication with a lender.

All of this sounds great to you, but you are on a tight budget and don’t think you can afford a business loan consultant. The great news is that in most cases it will not cost you a penny more than if you went to the bank. How does that work? The answer is simple: lenders like to work with business finance consultants. Similar to recruiters in the human resource field, business finance consultants scout out and pre-screen applicants for lenders. They also submit higher quality professionally prepared loan packages, which make it easier for the lenders to review. For this valuable service lenders typically pay business finance consultants a referral fee that doesn’t affect borrower’s costs. Again this is similar to using a recruiter when you are looking for a job. The recruiter helps you find a job, but they don’t get compensated by you, instead they get paid by your new employer.

All in all, if you are looking to maximize your chances of approval for a business loan and would like to save yourself time and frustration, your best bet is to use a reputable business finance consultant. That’s one of the best-kept secrets about obtaining business financing without going to a bank. Get your new business started or grow your existing business the easy way today!