Month: March 2020

Terms and Definition of Investment Credit!

The lack of all information about financial finance sometimes causes difficulties in taking appropriate steps in managing personal or business finances. The problem that is usually faced is ignorance around the notion of investment credit.

If you have decided to take an investment credit facility, then you know the steps that banks take to provide that facility. Usually the Bank carries out a verification process and then checks the business carried out by the borrower. Therefore each of those who want to apply for an investment loan must complete the requirements quite a lot. Before discussing the requirements of applying for investment credit, first know of the investment credit below.

 

Definition of Investment Credit

Investment Credit

 

Investment Loans are loans with a long or medium term payback period. Debt can also be raised to finance some goods as capital in a rehabilitation plan or the construction of a company project. To be able to pay off investment loans, company owners usually use the money from the profits from the use of corporate investment loans.

In terms of investment credit, in addition to the conditions that you must meet in applying for investment loans usually have the characteristics to is

  • As an addition to business capital or business
  • Pseudo R / R Credit System (Taking Over)
  • Having careful planning
  • Establish long-term credit

To be able to apply for an investment credit requires several requirements including:

 

Feasibility study

study loans

 

Feasibility Study is a feasibility study that aims to assess the feasibility of implementing a business / business, while the aspects analyzed in this study such as company benefits (Financial Benefits), benefits received by the community from the project (Social Benefits) and Macro Economic Benefits.

 

Trading Business License (SIUP), Company Registration Certificate (TDP) and others.

business loans

 

If you have a business, then you need a Trading Business License (SIUP), for proof of the business you are running. In addition, the Company Registration Certificate (TDP) is an official record issued based on the provisions of the law or implementing regulations, and contains mandatory items that are registered by each company. Without having SIUP and TDP, the business or business being run is illegal. For this to be able to apply for an investment credit, you must have this SIUP and TDP as a condition for the application.

  • The maximum credit is 15 years and the maximum grace period is 4 years.
  • Borrowers are required to submit additional collateral if according to the bank is required.
  • The maximum funding borne by the bank is 65% while the remaining 35% is self financing.

Quite a lot and complicated isn’t it? Though this investment credit is very much in demand in Indonesia, for business owners it is strongly recommended to use investment loans to develop their business. Because, the payment system is easy and can be paid in installments or paid at the end of the tenor.

 

Investment loan requirements 

Investment loan

 

Some of the investment loan requirements above may be an obstacle for you. For those of you who need investment credit Acceleration as a peer-to-peer (P2P) lending platform can help you develop your own business. Submission requirements are also easier, such as:

  1. Your business has been running for 1 year and its location is in Jabodetabek, Banten and Bandung. For outside the region, you can still apply for an investment credit from Lite Lenders if the proposed loan is more than 200 million.
  2. Minimum loan of $75 million
  3. Your business has a profit of the past year
  4. Includes checking accounts in the past 3 months
  5. Fill out the form and provide complete supporting documents

Use Acceleration as your preferred investment credit service because Acceleration is already trusted by more than 100 SMEs with funds channeled in excess of $120 billion so for the security and ease of service from Lite Lenders there is no need to doubt. If the requirements you submit are ready, all you have to do is submit them via the Accelerated mobile application with an easier and safer process.

Guarantees, requirements and best alternatives for a loan of 70,000 USD.

There are not many credit institutions and financial companies that grant a 70,000 USD loan with ease, despite precise indications from the EU aimed at increasing the ceilings for personal loans to be granted to citizens with the aim of adapting the financial instruments available on the market to actual consumer needs.

In fact, most financial companies provide personal loans up to a maximum of $ 30 / 40,000 and only the big banks have gone so far as to extend the figure up to $ 70,000 or more. Then there are particular situations such as with Best Bank which directly reaches up to 30,000 USD, but through Spin Lender it can go up to 75,000 USD.

It should be said, moreover, that these are somewhat complex loans as they provide very large repayment installments, hardly less than $ 800/900 per month, given that the maximum duration granted is 120 months. These are very significant amounts that can only be borne by a certain category of people, a reason that greatly restricts the audience of users who can have access to a loan of this type.

Requirements for obtaining a loan of 70,000 USD

Requirements for obtaining a loan of 70,000 USD

The 70,000 USD loan is granted only to those with adequate creditworthiness; this implies not only that he has sufficient income to be able to meet the loan amounts, but also that he has no reports as a bad payer in SIC, Credit Information Systems.

The income must be demonstrable and continuous as a very long loan agreement is always expected to repay such a large amount. For this reason, employees, both public and private, and pensioners, as well as self-employed workers, are privileged, provided they have sufficient documentation to demonstrate that the activity carried out is solid and active (see also Online loans for unemployed).

Accessory guarantees

Accessory guarantees

In the face of any personal loan request, all the checks to verify the applicant’s solvency are carried out by the lending institutions and never as in this case these checks are thorough and severe. Once the go-ahead on the creditworthiness of the subject has been obtained, appropriate calculations are made on the declared income, aimed at ascertaining that the part intended for the periodic installment for financing represents only a part of the total, so that the applicant’s survival is guaranteed and his possible family members.

If it turns out that the monthly amount is too expensive, further guarantees are required, such as life insurance, a mortgage on a property owned or the presence of a guarantor who has sufficient economic requirements.

Who to contact

Who to contact

If you meet all the requirements, you can proceed with the request for a loan of 70,000 USD; there are two possible ways:

  • the physical branch of a bank, perhaps its own if you have an economically sound position; direct knowledge and correctness demonstrated over the years can be useful as a “guarantee” and demonstration of reliability;
  • the Web Banks, now increasingly present and more active; the greater ease of the procedure and perhaps cheaper financial products make them particularly attractive, even if the procedure must be activated only if you have all the requisites and the necessary documentation, in order to avoid a refusal in the first step.

 

Make no mistake, This Difference in Debit and Credit in Accounting

This time we will discuss about the debit. What is debt, the difference between debit and credit in the financial statements and the difference between credit cards and debit cards?

Well, in this article we will discuss in-depth about the discharge and the ins and outs. Let’s watch together this article!

Definition of Debits

cash

The word debit comes from the Latin “debate” which means “indebted.” This is an entry made on the left side of the ledger account. These are accounting entries posted when there are additions to assets, costs, and losses or reductions in income, profits, liabilities, and owner’s equity.

If the debit side of the account exceeds the credit side, it is considered a debit balance. For non-accounting individuals, debit refers to the amount that is withdrawn or deducted from a particular bank account.

Differentiating Debit and Credit in Accounting

money

Every time an accounting transaction is made, at least two accounts are always affected ie debit entries are recorded on one account and credit entries are recorded against the other account. There is no limit to the number of accounts involved in transactions, but a minimum of not less than two accounts.

The total debit and credit for each transaction must always be the same so that accounting transactions are always said: “in balance.”

If a transaction is out of balance, it is not possible to make financial statements. As such, the use of debits and credits in the two-column transaction recording format is the most important of all controls over accounting accuracy.

Summary of the Difference Between Debit and Credit

  • Debit refers to the left side of the general ledger account while credit is related to the right side of the general ledger account.
    In a personal account, the recipient is debited while the giver is credited.
  • Whatever comes in is debited in the balance sheet account, while whatever comes out is credited therein.
  • For the income statement, all expenses and losses are debited, however, all income and profits are credited.
  • The increase in debits is caused by increases in cash, inventory, factories and machinery, land and buildings, expenses such as salaries, insurance, taxes, dividends, and others. The increase in credit was due to an increase in shareholder funds, membership fees, rental income, retained earnings, debt, and others.

The Importance of Making Debit and Credit Reports in the Company

The Importance of Making Debit and Credit Reports in the Company

A business within a company naturally experiences transactions, both internally and externally. These transactions require companies to make transaction documents in the form of financial statements.

One of them is to determine the rate of entry and exit of company funds to minimize the possibility of over budgeting in certain account categories in reporting. There are five elements in accounting transactions, namely debt, assets, income, capital, and costs or expenses.

A debit transaction is definitely accompanied by a credit transaction. Companies that do not have debit and credit reporting documents cannot control the flow of financial inflows. In addition, company financial data cannot be traced if something happens to the company’s finances.

With the debit and credit reports expected to help oversee the company’s finances from the possibility of corruption from employees. Because good debit and credit data are always accompanied by credible receipts or official notes.

The Difference between Credit and Debit Cards You Need to Know

cash

The difference between credit and debit cards is quite clear in many ways. One of them is the difference according to its features. Because of different features, the purpose of the use is different.

Unfortunately, there are still those who do not know the difference between the two transaction cards. As a result, that person cannot maximize the benefits of their credit and debit cards.

As a transaction tool, credit and debit cards have the same function, namely to make payments in non-cash. Instead of the hassle of carrying cash everywhere, it’s simpler to just pocket a credit or debit card in your wallet.

Transaction validation is also similar, using a personal identification number (PIN). Indeed, there are still those who use signatures. But this mechanism is not recommended because it is prone to be abused.

But there are more differences between credit and debit cards than the similarities. The following are:

Credit card

– Credit cards are cards that can be used to pay for transactions by credit. Later, the bill for the transaction comes in a certain period and must be paid.

– No account is required at the card-issuing bank because the source of funds is not taken from the account. But usually, credit card applications are more likely to be granted if they have savings at a related bank.

– Banks set a number of special conditions for issuing credit cards. One bank can issue various types of credit cards. The requirements for each type are different.

– Although there are no sources of funds, there are credit card limit provisions as limits for their use. If the limit has been reached, the card cannot be used for transactions or can be used but there are over-limit fees.

– Credit card owners must pay an annual fee. Usually, contributions are free for the first year. But there are also credit cards that are free of annual fees forever.

– Credit cards can be used to pay for online transactions using the three-digit number code on the back of the card. There are no internet banking or mobile banking features for online transactions.

– Withdraw cash using a credit card at an ATM machine, but there are additional fees. These fees vary depending on the card-issuing bank.

– There is interest to be paid if you don’t pay your bills on time or use them to pay in installments.

– There are benefits in the form of installments with 0 percent interest, points that can be exchanged with prizes, up to cashback on each transaction

– Can be used to transact abroad in accordance with the card network

Debit Card

– Debit cards are cards issued by banks as a complement to savings accounts. Each savings is generally accompanied by a debit card for the transaction.

– The source of debit card funds is the savings account associated with the card.

– Debit card issuance requirements only have savings in the relevant bank.

– Limit transactions using a debit card is the nominal funds in savings. If the funds run out, the card can no longer be used.

– There is no annual fee, but there are administrative costs that are charged every month for the ownership of savings.

– There are several debit cards that can be used to shop online like a credit card. But most still can’t.

– General benefits are only in the form of discounts on transactions using a debit card

Credit Card vs. Debit Card

Credit Card vs. Debit Card

Seeing the difference between credit and debit cards above, you can find the advantages and disadvantages of each. Different features are determinants of these advantages and disadvantages.

Offer Easier Transactions

In general, the advantage of credit cards is that they can be used for transactions easily, especially for online shopping. In addition, profits on transactions, from 0 percent installments to cashback, can be used for budget planning.

But the drawback is that it is prone to be abused by irresponsible users. Abuse, for example, originating from transactions without thinking about bills or negligent bills, can lead to accumulated debt.

While the advantage of debit cards is that their use is safer from debt risk because the source of funds is a savings account. In addition, there are no various fees or fees that can be a burden. The shortage of a debit card is that the transactions are more limited in accordance with the savings balance.

Speaking of card security, the two are not too different. There is a threat of skimming to fraud. Potential losses depend on savings balances and credit card limits. The more balances and limits, the greater the loss can be.

From there it can be concluded that the most important difference between credit and debit cards is their intended use. Credit cards can be used for more things and demand higher responsibilities to pay bills.

While the use of debit cards is more limited. But there are no demands or burdens to pay bills later on because the transaction is completed right then and there.

The good, that’s why credit and debit cards can be owned simultaneously. Depending on the situation and conditions, you can use a credit or debit card for different purposes.

 Now, after we know the definition of debit and credit also the difference both in financial statements and in the form of cards. Then, there is one more important info for you about HR software.

Bank loans: even without a paycheck?

The financing proposed by Lite bank focuses on the rapidity of evaluation and on the flexibility of management. This is especially true for the range of personal loans that have flanked that of targeted loans and revolving credit cards. However, if you are looking for Lite bank loans without a paycheck, keep in mind that the chances of obtaining them depend strictly on:

  • presence of other guarantees that may be offered among those accepted by Lite bank spa;
  • presence of a guarantor with a source of income accepted by the financial company;
  • possession of a certified income other than that of an employee.

Requirements needed

Requirements needed

In order to apply for one of the Lite bank loans you must have minimum requirements which are:

  • residence in Italy;
  • be at least of age;
  • have a certified income document.

This document can be the single model for self-employed workers, or the pension slip for pensioners. Therefore Lite bank loans can be requested without a paycheck but on condition that there is in any case an official document that proves to receive an income which, during the preliminary investigation, is considered satisfactory to decide to approve the loan request. The same argument possibly concerns the presence of a guarantor. This can be included in a financing practice when:

  • there is no demonstrable income;
  • you have a demonstrable income considered not high enough.

Furthermore, even with the presence of a guarantor, additional additional guarantees can be requested, as is clearly specified on the official Lite bank website.

What changes for small loans?

What changes for small loans?

Among the various types of financing, Lite bank also provides for the proposal of small loans, which can be used to sustain contained expenses (such as travel, purchase of household appliances, the rechargeable loan, etc.).

However, the application procedure, as well as the requirements, are the same as those for higher loans (remembering that the maximum amount that can be obtained is 30 thousand USD). So you can not think of starting the process of requesting a small loan without having the requirement of an income demonstrable directly or through a guarantor. The only way forward in this case may be to request one of the revolving cards issued by Lite bank itself.

In depth: Is it possible to obtain a revolving card without demonstrable income?

How do you make the request?

How do you make the request?

The request for loans with Lite bank can be conveniently made online, without the need to send paper documents thanks to the digital signature. To allow the progress of the preliminary investigation phase it is logically necessary to upload the necessary documents via the web. For this reason already at the moment of the request it is necessary to have the documentation ready including the income certificate. In case of doubts or for particularly complicated practices (especially recommended if one or more guarantors must be used) it is also possible to proceed with the request through the agency by setting an appointment at the toll-free number 800.12.90.10 which is active:

  • Monday to Friday from 8:30 to 21:00;
  • on Saturday from 08:30 to 17:30.

If you deliver all the necessary documentation you do not necessarily have an extension of time depending on whether you make a request without a paycheck or with a paycheck. Obviously, the complexity of evaluation can lead to more or less long times, while the timing for crediting the sum requested always takes place within 48 hours from the moment in which the loan application was accepted.

Example of online request

Example of online request

One of the positive aspects related to Lite bank loans is given by the installment calculator which allows you to make simulations online at current rates, without the need to be registered or logged in. Anyone can use the calculator being able to make a number of unlimited simulations and only when the most suitable one is found can one decide to proceed, starting from the visualization of the estimate. However, there are no differences if you apply for a loan for self-employed or for employees.

In a nutshell, if the process ends with a positive opinion, even if you have a request without a paycheck (but with other proven income) there is no ‘worsening’ of the interest rate applied. As we can see in the example with a request of 5 thousand USD we will find ourselves in front of a situation like:

It is therefore possible to choose the amount of the installment according to the duration and the proposed Tan and Taeg rate. The first step is to download, view and keep the real quote by clicking on ‘View and print SECCI’. Once you have made your final selection, you can click on ‘Request now’ and then follow the guided procedure to proceed with the paperless online request.

Unsecured loan: how does it work?

The type of financing that is identified with the definition of unsecured loan has its own characteristics which are incorrectly considered “light”. But is it really easier to get it than a classic loan? The answer on paper would appear to be affirmative because if a bank offers an unsecured loan it should be based as a guarantee simply on the “handwritten signature of the applicant”.

In reality, however, the situation is not so, precisely because the main guarantee required, or the signature, must equally lead to a solid income, meritocratic and patrimonial situation as in the case of ‘traditional’ financing.

The unsecured loan clearly differs from a mortgage-backed mortgage instead. In this case, we know that costs will be high and complex procedures. This aspect is generally true for all collateralised loans (which can also be represented by a pledge ).

How are unsecured loans offered?

How are unsecured loans offered?

It is also a product that can be oriented both to a private individual and to a company. But beware, a bank will hardly advertise this type of financing directly and evidently. How to find them?

This type of loan is normally offered by large banks or by lenders linked to the territory such as the Bcc. Instead, it is quite difficult to find in online banks, which normally have a very ‘basic’ offer.

The ‘standard’ conditions

The

Unsecured loans have variable characteristics depending on the lending institution, although we can highlight some common peculiarities. In most cases, in fact, these are loans with a medium or long amortization plan (almost always above 18 months and not less than one year).

The maximum expected duration is generally up to 120 installments and in some exceptional cases even beyond. As regards rates, especially for higher amounts and longer durations, they can be offered at both fixed and variable rates. In this second case there is a spread plus an indexing value which is normally represented by the Reference rate bank.

What are the minimum necessary requirements?

As already mentioned at the beginning, no particular requirements are necessary for the applicant other than that of possessing a solid income and balance sheet situation sufficient to act as a guarantee for the bank to give a positive opinion. However, it is possible that the lender requires a guarantor but this is a non-fundamental and recurrent condition.

It is also necessary that those who apply for an unsecured loan have an excellent credit reputation : one must have matured a history in the field of financing, proving to be reliable and deserving of obtaining new credit.

How does the refund work?

How does the refund work?

The repayment of the loan usually takes place with the French amortization, therefore by periodically paying the installments made up of interest and principal. The repayment generally passes through a permanent debit on the current account of the installments until they are exhausted, and an early repayment penalty may be applied. The ‘allowable’ amount tends to be medium-high and can even exceed abundantly the 75,000 USD: the greater the sum required and the greater the duration with which to make the total refund.

Practical examples

  • To give an example of a medium-small diffusion bank, we see that Litebank grants up to 75,000 USD in 60 installments with its unsecured loan while over 75,000 USD it reaches up to 72 installments. The rate can be both variable and fixed. Funding is offered only to companies (Source: official information sheet – 11/12/2017)
  • Looking instead in the offer of one of the largest groups such as Cream bank, we find an unsecured loan for individuals that comes out of the most usual schemes with a minimum amount disbursed, in the Plus version, of 76,000 USD and a duration that starts from 36 months up to 15 years. (Source: Cream bank official website – 11/12/2017)
  • Among the various loans in its offer, the Spin Lender also has the unsecured wedding project loan which allows you to obtain up to 20,000 USD to be repaid in a maximum of 60 months. The loan is dedicated to couples about to get married and is at a fixed rate. 

Conclusions

Conclusions

With the examples just made it is clear that the conditions may vary and that the research must be oriented according to the amount of the sum that is being sought and the time available. Obviously larger banking groups can foresee larger sums and longer repayment times, but each individual case must be evaluated and analyzed without being able to make true generalizations.