YourLoan.ca Now Expands Financial FAQ to Help People Navigate in a Complex Financial World

YourLoan.ca adds 40 new articles to its financial FAQ section to help Canadians to make informed and thoughtful decisions in a world of sophisticated products and financial markets.

Toronto (PRWEB) December 21, 2012

Art Branch, Inc., the parent company of YourLoan.ca, announced today the publication of 40 new articles (http://www.yourloan.ca/loan-articles/), intended for people who are interested in learning more about finance.

The articles were created by the content development team at Art Branch, Inc. and published in the financial FAQ section of YourLoan.ca. The section has been popular with visitors of the website since the first articles were published. The new articles were created after extensive research and cover financial topics that visitors of YourLoan.ca are interested in.

“Many Canadians have borrowed large sums of money without thinking of the long-term consequences. The financial FAQ section of YourLoan.ca can help them to understand and manage their finances better,” said John Williams, marketing consultant at Art Branch Inc.

The 40 new articles cover financial topics such as types of mortgages, credit card borrowing, business loans, budgeting, and many others. After the addition of the new articles, the FAQ section includes over 120 financial articles that explain key financial terms and concepts. Financial literacy is important in an increasingly complex financial world. There are more products and options than ever – different types of mortgages and credit cards, investment instruments, bank accounts, and IRAs. The large number of products complicates decision making even further. Moreover, the risk and responsibility for important decisions are shifted to employees and away from employers and government institutions.

Financial education is important in that it empowers consumers to make thoughtful decisions, ultimately promoting economic stability. People who borrow irresponsibly often end up declaring bankruptcy and selling their valuables to pay for groceries. The global financial crisis, recession, and economic turmoil have caused many people to feel a high level of financial anxiety. Financially educated consumers, on the other hand, are more likely to make informed decisions and to challenge financial institutions to create products that have a positive effect on financial wellbeing, economic growth, and investment levels. The financial section of YourLoan.ca covers many financial topics and helps visitors to improve their financial literacy and make responsible choices.

About YourLoan.ca: YourLoan.ca is one of the oldest Canadian financial directories offering finance listings and financial guides since 2005.

About Art Branch: Art Branch, Inc., located in Toronto, Ontario, is the publisher of YourLoan.ca and has produced several consumer oriented websites targeting Canadian and international audience. The goal of Art Branch is to provide visitors to company sites with free, useful guides, helping consumers to make educated choices.

New Calculator From CanadaBanks.net Helps Consumers to Avoid a Post-Holiday Debt Hangover

CanadaBanks.net presents a credit card payment calculator that helps Canadians to make good financial decisions and spend Christmas in a merry fashion.

Toronto, Ontario (PRWEB) December 19, 2012

Art Branch, Inc., the parent company of CanadaBanks.net today announces the re-launch of a credit card payment calculator (http://www.canadabanks.net/Credit-Card-Payment-Calculator.aspx), targeted at Canadian cardholders who are interested in budgeting and controlling credit card debt.

Created by the content development team at Art Branch Inc., the calculator was tested internally and by a group of external users. The idea behind the new calculator is to show Canadians how long it takes to repay credit card debt. This is a relevant issue given that people are constantly bombarded with attractive offers, encouraging them to switch from checks and cash to credit cards with perks and sign-up bonuses. The new calculator helps borrowers to understand the real cost of borrowing on a credit card so that they can decide whether to turn to other, less expensive financial products.

“With Christmas around the corner, Canadians might be tempted to borrow on their credit cards to pay their holiday expenses. People should be aware of the ultimate high costs of credit card borrowing,” said John Williams, marketing consultant at Art Branch, Inc.

The new calculator is a free financial tool that uses the borrower’s monthly payment, amount of credit card debt, and annual percentage rate to determine how long it will take to repay debt. According to Statistics Canada, big Canadian banks such as BMO, TD Bank, and CIBC have recently reported hefty profits while consumer mortgage and credit card debt has increased.

The holidays are just around the corner, and Canadians are spending a fortune on gifts, entertainment, and food. Holiday spending soars, and many people will be left with a post-holiday debt hangover. Shoppers have a lengthy list of gifts to buy and are charging purchases to their credit cards. In times of job insecurity, layoffs, and stagnant wages, some 600,000 households in Canada have a very high level of debt. Household debt has increased by 71 percent while income is up by 12 percent. Christmas is about spending time with family and loved ones and sharing the joyous spirit of the season. With debt piling up, many Canadians are already stressed and emotionally exhausted. The goal of the new financial calculator is to help consumers to make better financial decisions and spend within their means.

About CanadaBanks.net: CanadaBanks.net is an informational resource created by Art Branch, Inc., focused on the Canadian banking industry.

About Art Branch: Art Branch, Inc., located in Toronto, Ontario, is the parent company of CanadaBanks.net and has produced many consumer oriented websites targeting Canadian and international audience. The goal of Art Branch is to provide visitors to company sites with free, practical guides, helping consumers to make educated choices.

Financial Directory Lists Lenders and Helps Canadians to Gain Ready Access to Capital

YourLoan.ca offers new financial listings to visitors who are looking for flexible borrowing solutions and worthwhile financial products.

 

Toronto (PRWEB) October 24, 2012

Art Branch Inc., the parent company of YourLoan.ca today announces the publication of new financial listings, targeted at people who are interested in learning more about finance.

Created by the content development team at Art Branch Inc. the new financial listings are published on YourLoan.ca, a website that offers information about different financial products available to Canadian borrowers. The listings showcase a diverse set of financial service companies, thus offering value to visitors.

“There are many viable lending alternatives apart from what the big Canadian banks offer. Canadians deserve to know about them so that they can choose a lender that suits them,” said John Williams, marketing consultant at Art Branch Inc.

Compared to smaller players, the large banks offer fewer financial options to small businesses. The big Canadian banks use standard lending criteria while credit unions and other financial establishments rely on personal interactions with customers. Developing and maintaining a long-lasting relationship with a small bank increases the availability of financing. This results in better interest rates and a lower likelihood that collateral or cosigner is required. Relationships with borrowers are more important for small players than for large financial institutions. The big banks establish criteria and procedures to be followed by all branches. This is how they monitor the lending process and keep control over loan officers. Thus, large lenders rely more heavily on centralized decision making, financial statements, and computer models. Small banks do not face the same coordination and control problems. They rely on community ties and personal interaction. Small banks have less rigid lending criteria and offer flexible financial solutions to individual borrowers and small businesses. In many cases, their financial products are cheaper than what the “Big Five” have on offer.

YourLoan.ca adds over 500 new financial listings to give more choice to Canadian visitors. The directory includes large and small lenders and offers descriptions of their products and services.

About YourLoan.ca: YourLoan.ca is one of the oldest Canadian financial directories offering finance listings and financial guides since 2005.

About Art Branch: Art Branch Inc., located in Toronto, Ontario, is the publisher of YourLoan.ca and has produced several consumer oriented websites targeting Canadian and worldwide audience. The goal of Art Branch is to provide visitors to company sites with free, useful guides, helping consumers to make educated choices.

Savings Calculator Helps People to Invest Smartly and Increase Their Personal Wealth

CanadaBanks.net offers a new savings calculator to Canadians who are looking for wise money management moves and are eager to get started on the investment path.

Art Branch, Inc., the parent company of CanadaBanks.net announced today the release of a savings calculator (http://www.canadabanks.net/Savings-Calculator.aspx), intended for Canadians who are interested in saving and investing.

The new calculator was created by the content development team at Art Branch Inc. and was tested internally and by a small group of external users. It is a simple tool that can help Canadians to understand the basics of saving and investing. In times of post-crisis deleveraging, more and more people avoid making risky financial decisions and embrace the idea of saving and investing wisely.

“Saving went out of favour during the last decade, but since the global financial crisis hit, things have changed. Many Canadian consumers are deleveraging and trying to save instead of spend. Ultimately, this will be very positive for the Canadian economy,” said John Williams, marketing consultant at Art Branch, Inc.

Saving and investing is an asset building strategy that brings good financial returns. Asset building helps people to escape poverty and move up the economic ladder. Investing over a long period creates a safety net and allows families to cope financially in times of economic hardship. People with no assets are more likely to miss phone, utility, and housing payments. They are more likely to operate uninsured vehicles and are unable to afford good medical care. Many people are liquid asset poor, with no resources to subsist if they lose their job. They cannot afford to buy healthy food products, are often uninsured, and put off visits to the doctor. Having assets, on the other hand, is correlated with better physical health, emotional wellbeing, life satisfaction, and social connectedness with family members, neighbors, friends, and organizations.

The new savings calculator is a free financial planning tool for people who want to achieve financial stability. Compound interest can help people to achieve their financial goals, but many are not aware of this. Their savings grow quickly if they find a decent rate of return.

The aim of the calculator is to educate Canadians and help them learn how to save and invest. Users enter the initial savings amount, the yearly yield, the compounding frequency, and the number of years to grow. The calculator then shows the future value of their savings.

About CanadaBanks.net: CanadaBanks.net is an informational resource created by Art Branch Inc., focused on the Canadian banking industry.

About Art Branch: Art Branch Inc., located in Toronto, Ontario, is the parent company of CanadaBanks.net and has produced many consumer oriented websites targeting Canadian and worldwide audience. The goal of Art Branch is to provide visitors to company sites with free, practical guides, helping consumers to make educated choices.

Credit Card Guide Helps People to Avoid Exorbitant Fees and Sky High Rates

CreditCardReview.ca offers a low-interest credit card guide to people who want to avoid super-high borrowing costs that can ruin them financially.

Toronto (PRWEB) October 16, 2012

Art Branch, Inc., the parent company of CreditCardReview.ca announced today the publication of a low-interest credit card guide (http://www.creditcardreview.ca/low-interest-creditcards-9/), intended for Canadian consumers who are looking for affordable credit solutions.

The new guide was created by the content development team at Art Branch, Inc. and is the result of extensive research on popular Canadian credit cards. The guide was published on CreditCardReview.ca, which presents in-dept reviews of credit cards available to consumers and small businesses in Canada. The section was added in response to requests from visitors and features reviews and comparisons of low-interest credit cards.

“Affordable credit is very important for Canadian consumers and small businesses; however, many can’t borrow funds at reasonable rates. Canadians who are looking for credit but are unable to get an unsecured credit line from their bank may want to look at low-interest credit cards,” said John Wilson, marketing consultant at Art Branch, Inc.

The new guide presents 17 low-interest credit cards offered by AMEX, VISA and MasterCard. Costumers have the opportunity to compare interest rates and annual fees and will find a comprehensive review for each product.

Some people have fair or less-than-perfect credit scores, and this makes them unlikely candidates for a low-cost credit line from their bank. While there are better borrowing options than a credit card, a low-interest card is a good choice compared to payday loans and other products with extremely high interest rates. Some people villainize credit cards, and there are urban legends and annoying myths about them. The truth is that using a low-interest card can help people in lean days. Financial setbacks happen for many reasons – death of a partner, major illness, demotion, and divorce. Even the rich and famous have been hit by tough times, and some celebrities live under huge amounts of debt. While an emergency fund can cover financial gaps, few people can afford such luxuries. A low-interest credit card is a good option for people who are coping with a major, life-changing event. It is not a tool to rectify one’s financial woes, but it allows recession-hit people and those in financial straits to borrow at reasonable rates.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory that offers information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

Personal Finance Blog Helps Canadians to Sharpen Their Money Management Skills

Financialized.ca helps Canadians to understand financial matters and develop a positive attitude toward budgeting, saving, and financial planning.

Toronto (PRWEB) August 15, 2012

Art Branch, Inc. announced today that Financialized.ca (http://www.financialized.ca) celebrates 2 years of blogging. The personal finance blog is intended for Canadians who want to find more about personal finance and budgeting.
While the global financial crisis of 2008-2009 has been gradually abating, many people are still in dire financial straits. Canadians needed a good personal finance blog to guide them in the world of finance, and this is how Financialized.ca was born.

“Personal finance is a topic everybody should learn about, no matter how much money they make. Understanding how to manage your personal finances better will give you an edge and will make your life much easier.” said Peter Todorov, President of Art Branch Inc.
Financial literacy gives people the right tools to make good financial choices. Educated consumers are less likely to use high-interest credit cards and other costly means of borrowing. Financial education helps people to set realistic goals, develop spending budgets, and choose the most appropriate investment and savings methods. Informed consumers are able to understand financial matters, use and manage resources in their best interest, and improve their financial fortunes. At the same time, many people are unable to create a simple budget – a basic skill that can help them to control their expenses and avoid debt. Budgeting is a basic skill that puts one ahead of the crowd.
Truly, many people are interested to learn more about budgeting and personal finance but cannot afford to pay for a finance course. Others do not have the time to read a book or they are unsure where to start. A good personal finance blog summarizes the important finance topics and presents complex concepts in an easily digestible form. This is the goal of Financialized.ca, which was created as a personal finance guide for Canadians who want to manage their finances more effectively. Given that the Canadian educational system does not give people enough financial knowledge, personal finance blogs like Financialized.ca can go a long way in helping consumers to understand important financial topics.
About Financialized.ca: Financialized.ca is a Canadian personal finance blog that aims to deliver exceptional value to Canadians looking for personal finance information and tips.
About Art Branch: Art Branch, Inc., a Canadian corporation, publishes Financialized.ca and has produced several business oriented websites targeting Canadian audience. The goal of Art Branch is to provide visitors to company sites with free, useful guides, helping them to make educated decisions.

YourLoan.ca Financial FAQ Explains the ABC’s of Finance as a Way to Achieve Financial Freedom

A new financial FAQ, improves financial literacy, helps Canadians to learn the basics of finance, and simplifies decision making.

Toronto (PRWEB) August 14, 2012

Art Branch, Inc., the parent company of YourLoan.ca announced today the publication of a financial FAQ section (http://www.yourloan.ca/loan-articles/), intended for people who want to learn more about finance.
The new FAQ section is created by the content development team at Art Branch, Inc. and is the result of extensive research. The section contributes to the wealth of information published on YourLoan.ca, which lists over 4,000 financial companies in Canada and gives Canadians the opportunity to find more about different forms of financing. The FAQ section is thus intended to offer information on all important finance topics. Canadians can learn about different budgeting and debt management strategies as to get rid of debt and improve their financial situation. The section explains how interest works and overviews various forms of financing. Visitors learn how to compare different loans and choose the best financial product for their particular circumstances.
“Financial education is now more important than ever and yet the Canadian educational system doesn’t do enough in this regard. Having basic understanding of how financing and budgeting work can greatly improve the lives of many Canadians.” said Peter Todorov, President of Art Branch, Inc.

Financial education helps people to balance their budgets, save for retirement, spend on a holiday or trip, buy a house or furniture, choose the right investment instruments, and much more. Educated consumers make wise financial decisions and are able to avoid excessive debt. Financial responsibility and money management skills are essential today given that there are more debt options. Consumers can choose from a variety of financial providers – mortgage companies, credit card issuers, credit unions, banks, and insurance firms, all of which try to attract clients. Consumers are faced with tough choices and this makes financial education even more important. At the same time, the importance of financial education is overlooked by many Canadians who lack understanding of basic financial concepts. This often results in unmanageable debts, foreclosure, bankruptcy, and broken families. Learning the basics of budgeting, saving, and investing can improve the financial fortunes of many people, and the new financial FAQ is a valuable tool to this purpose.
About YourLoan.ca: YourLoan.ca is one of the oldest Canadian financial directories offering finance listings and financial guides since 2005.
About Art Branch: Art Branch Inc., located in Toronto, Ontario, is the publisher of YourLoan.ca and has produced several consumer oriented websites targeting Canadian audience. The goal of Art Branch is to provide visitors to company sites with free, useful guides, helping consumers to make educated choices.http://www.yourloan.ca/

CreditCardReview.ca New Infographic Addresses the Prevalence of Credit Card Fraud

The Canadian banking industry suffers huge losses due to fraudulent activities in the underground marketplace.

Art Branch, Inc., the parent company of CreditCardReview.ca announced today the publication of a new infographic (http://www.creditcardreview.ca/credit_card_fraud_canada_infographic.php), targeted at credit card holders in Canada.

Developed by the web design and content development teams at Art Branch, Inc., the infographic uses data by the Canadian Bankers Association. It is a valuable addition to CreditCardReview.ca, which helps Canadians to make wise credit card choices.

“Credit card fraud is a serious problem, which affects many Canadians. Not many people know this, but the Canadian banking industry loses hundreds of millions of dollars to credit card fraud each year.” said Peter Todorov, President of Art Branch, Inc.

The infographic gives a snapshot of credit card fraud in Canada, along with total annual losses and average loss per account. It provides data on the yearly losses of the banking industry due to cross border and domestic fraudulent transactions, account takeovers, fraudulent applications, and other fraud. In addition to highlighting the most common forms of fraud, the infographic helps Canadians to get an idea of the costs associated with credit card fraud. Many people are not aware of these crimes, the prevalence and forms of fraud encountered, and the financial impact of fraud on Canadians and the banking industry.

The targets of fraudsters are processors, merchants, hotels and restaurants, and individual cardholders. Criminals and crime groups are organized, operate across borders, and use sophisticated software and tools. What is more, criminal organizations are quick to respond to fraud prevention measures and initiatives. They use a variety of methods for data theft such as malware attacks, ATM skimming, virtual criminal markets, SMSishing and whaling, and many others. Credit card fraud and cybercrime have gained momentum and should be given serious consideration. Being aware of the prevalence and forms of credit card fraud is important as it helps Canadians to avoid becoming a victim of fraudulent transactions.

About CreditCardReview.ca: CreditCardReview.ca is a Canadian credit card directory offering information on the major banks and credit cards in Canada, along with many useful credit card related articles and guides.

Taking out a Loan to Buy Land

A land loan allows the borrower to buy a plot of land and build a home in the future. As a rule, the interest rate and down payment are higher than for conventional mortgages.

Financing for unimproved real estate is largely a local marketplace. This is unlike mortgages where competition is intense, with different financial institutions offering loans. Financing often comes from the seller, and the terms and interest rate are negotiable. A 20 percent down payment is usually required, and the seller holds a note for the balance. Another option is to apply for a home equity loan, especially if the sales price is not high. The mainstream financial institutions are not big players when it comes to buying land; so, you may want to look for financing from a community bank. The title insurance companies and real estate agents in your area should know which financial establishments offer loans for land.

As a rule, you will have a better chance of getting approved if you plan on building a personal residence, there are improved properties nearby, and you make it clear that you will apply for a construction loan as well. If you plan to build in three months, you can do a 90-day note. In this way, the amount due will be rolled into a construction loan, and you will pay interest only.

It should be noted that different factors impact the terms and conditions, including the intended use, the zoning, and the size and location of the parcel. Some banks charge the same points and interest rate for the purchase of row land and for construction. The loan can be interest-only or amortized over a pre-agreed term. This depends on the borrower’s financial circumstances and needs.
Financing is usually offered to self-employed and salaried people who seek to buy a residential plot of land. Some financial institutions require that the property to be financed is within municipality limits. Loans are mainly offered for the purchase of residential and not agricultural land. Furthermore, some financial institutions require that the borrower begins construction within a specified period of time, which can be from 6 months to 1 year. For more information go to http://www.yourloan.ca/

Financial Quiz Helps Canadians to Dig Their Way Out of Debt

A new quiz challenges Canadians to test their financial IQ and work on improving it.

Toronto (PRWEB) June 27, 2012

Art Branch, Inc., the parent company of CanadaBanks.net announced today the publication of a new financial quiz (http://www.canadabanks.net/Financial-Quiz.aspx).

Designed by the web development team at Art Branch Inc., the quiz is intended as a helpful tool for Canadians who want to improve their financial fortunes. Given the substantial growth of consumer debt in Canada, indebtedness has become a major issue of public concern. The new quiz aims to help people improve their financial literacy and thus become more aware of the dangers of excessive borrowing.

“Canadian personal debt levels have been going through the roof in the last couple of years, while incomes have not gone up enough to match that. Of course this is unsustainable, however many Canadians don’t realise that. We created the financial quiz to help Canadians improve their financial literacy in a simple and entertaining way,” said Peter Todorov, President of Art Branch Inc.

The absence of financial literacy often leads to bad financial decisions, excessive debt, and financial hardship. This makes it even more difficult to put one’s finances in order. Many people will experience a huge improvement in their financial lives once they acquire a basic understanding of how budgeting, interest rates, and borrowing work. The new financial quiz introduces some common financial concepts and helps people learn how to make wise money management choices. It allows visitors to gain better knowledge of finances and offers a fun way of doing so.

Challenging Canadians to test their knowledge of financial matters may encourage them to improve their financial IQ. To help achieve this, CanadaBanks.net provides a wealth of financial information, from saving, borrowing, and budgeting to more complex financial concepts.

The 10-question quiz is followed by a score card and links to relevant readings that elaborate on a given concept or topic. The quiz can be done multiple times, with a set of 10 questions displayed on a random basis and out of a pool of over 300 questions.

About CanadaBanks.net: CanadaBanks.net is an informational resource created by Art Branch Inc., focused on the Canadian banking industry.

About Art Branch: Art Branch Inc., located in Toronto, Ontario, is the parent company of CanadaBanks.net and has produced many consumer oriented websites targeting Canadian audience. The goal of Art Branch is to provide visitors to company sites with free, practical guides, helping consumers make educated financial choices.

Canadian Money

Pros and Cons of Piggyback Loans

A piggyback loan involves the borrower taking out a HELOC or a home equity credit line for certain percentage of the value of a property. The cash advance is used as a down payment, and the primary mortgage covers the remainder. The main advantage of this borrowing instrument is that home owners are not required to pay mortgage insurance. This is an ideal option for borrowers who have cash on hand to make the down payment.

Furthermore, when more than one financial institution is involved in a single transaction, the two loan providers take less risk. Borrowers with a small down payment have a better chance of qualifying than they would if applying for a conventional mortgage. At the same time, the combined rate on this type of loan is usually higher than on conventional mortgages. The financial institution that finances 80 percent of the loan may agree to lower the interest rate. The second lender, however, finances 20 percent or even 5 percent and doesn’t benefit much from lending a small amount of money. This is why, the second loan provider may offer a higher interest rate. In addition, piggyback loans usually go with a substantial balloon payment at the end of the repayment period. The payment can be considerably larger compared to regular mortgage payments.  

Note that this type of financing is extended in the form of a dual mortgage. Thus, if an emergency were to arise, obtaining a home equity loan or a second mortgage could be close to impossible.

Borrowers who apply for a piggyback loan should compare different programs and consider a number of factors. Among these are monthly payments, interest rate, and the type of interest rate (adjustable vs. fixed) on the second mortgage. Other important factors are the maximum loan-to-value limits and the monthly insurance premium. Consider the fees, penalties, and any qualification limitations that may apply. When doing the math, keep in mind that you will have expenses such as the closing cost for the transaction, earnest money, and others.

For more information on loans and credit visit this site or this guide.

Is Debt Consolidation Better Than Bankruptcy

Debt consolidation is a process whereby the borrower obtains a new loan to replace credit card balances and other unsecured debts. For example, if you have an unsecured loan, 3 credit cards, and a line of credit, you may qualify for a consolidation loan to pay off your outstanding obligations. You will be making 1 payment a month instead of 5 separate payments.

Debt consolidation loans are usually provided by credit unions and banks. Some borrowers use the services of consolidation companies that negotiate the terms and conditions of the new loan.
Debt consolidation offers a number of advantages, and one is that borrowers are usually allowed to repay the loan over an extended period of time. Another advantage is that borrowers who manage to repay their outstanding balance benefit from an improved credit score and perfect credit report. Thus, qualifying for such a loan is a way to simplify your monthly payments, reduce interest costs, and get better control of your finances.

One important question is whether consolidation is a better option than bankruptcy. Generally, bankruptcy is a good solution for businesses and individual borrowers who have multiple large debts and are unable to handle them. There are many downsides to declaring bankruptcy, however. First of all, not all debts are discharged. You will lose non-essential possessions and your credit cards, and you won’t have access to financing for some time. This includes loans and mortgage loans. Some types of debt are not discharged, including income taxes, past due alimony payments and child support, resulting from divorce procedures, and court fines. Debts incurred by using fraudulent means such as providing incorrect or false information and writing bad checks are also excluded. Exempt property includes household furnishings, motor vehicles, a percentage of your wages, and life insurance.

Note that if most debts are non-dischargeable, declaring bankruptcy is not a good solution. Moreover, bankruptcy is a complicated process, and the different provinces have different rules to regulate bankruptcy. You may want to use the services of a bankruptcy lawyer who knows the ins-and-outs of declaring bankruptcy.
For more information on consolidation continue reading here: http://www.canadabanks.net/default.aspx?article=Consolidate+Your+Debt

Types of Collateral for a Business Loan

Whether you are a limited liability corporation, a sole proprietorship, or a start-up, expanding your company’s potential requires financing. Financial institutions that provide secured loans will look at your balance sheet, revenues, business credit, equity contributions, and company’s history. Even if you operate a healthy and profitable business and pass a credit check, many financial establishments will require guarantees that the business loan will be paid off in full. Different types of collateral can be used to assure the financial institution that there is an alternative source of repayment. In many cases, the collateral is an owner-occupied home (real estate), but you can use equipment, inventory, deposits, and cash savings.

Generally, there are two types of collateral you can offer – assets that the company has a loan against and its own assets. Cars and homes are commonly used as collateral, but you can use pieces of equipment, motorcycles, and watercraft. Asset-based lending is one way to get financing, especially if you have a big purchase order. Bringing on raw materials, equipment, and additional staff is sometimes necessary to meet the requirements of the client. The purchase order can be used as collateral in such cases.

When applying for a secured loan, you may use deposits or cash savings as collateral. Banks accept personal savings because they are a low risk for the financial institution. This applies to financial accounts such as certificates of deposit. The main advantage of using a financial account as collateral is that banks usually offer a low interest rate. The downside is that the financial institution will take possession of your cash savings in case of default.

Businesses that apply for a secured loan should know that financial institutions are conservative when it comes to valuing assets to be used as collateral. In case of default, the bank has to expend resources to seize the asset and try to sell it. Given that banks are conservative, it pays to ask for an appraisal revue that will assess the accuracy of the appraisal. Finally, it is also possible to obtain an unsecured loan, but banks often charge very high interest rates. For more information you can read this useful article.

Get the best home equity loan rates

The home equity loan represents a type of financial instrument that allows homeowners to make use of a loaned amount by providing their home as collateral. This type of loan is beneficial when it comes to funding major expenses such as medical bills, renovation of houses, or the payment of college tuition. The collateral is the property that you pledge as a guarantee that you will pay off your debt. If the borrower, for any reason, fails to pay off the outstanding balance, then the lender has the right to take possession of the property. The equity is basically the true value of ownership the homeowner has on the property. Then, the homeowner’s equity is whatever is left after the outstanding mortgage is deduced from the market value of the property.

Variable vs. Fixed Rates

Home equity loans are in the form of fixed rate or adjustable rate mortgages. With fixed home equity loan rates, the interest rate is set for the term of the loan. In simple words, the home equity loan rate will remain the same for the full term of the mortgage. Fixed rate mortgages are more popular and close to 75 percent of all mortgages will be fixed rate ones. With adjustable rate mortgages, also referred to as ARM, the interest rate is not set but varies depending on the indexes used. The various creditors will use different indexes to determine the adjustable rate. Some of these are the treasury bills and notes and the interest rate on jumbo certificates. You can make money in real estate using home equity loans, and this article will show you how.

Home equity loan rates are typically lower compared to various forms of consumer credit. Some creditors also offer hybrid loans which are much like home equity lines during the first couple of years and are then turned into home equity loans. If the creditor wants to convert a variable rate loan to a fixed rate one, that may be to the disadvantage of the borrower in case the variable rate is lower. The borrower will want to stay with the low rate rather than see it head higher. If that is not an option, but there is a period in which to convert, there are two options. One is to convert now and lock in a lower fixed rate. The other is to postpone that and keep the low variable rate as long as possible.  It is best to review the loan documents and see how the creditor determines the fixed home equity lone rate when converting from variable one.

It is better to opt for fixed home equity loan rates if you plan to consolidate loans, especially high interest rate debt such as credit card debt. Fixed rates are also a better option if one plans to use home equity loan as down payment, be it on an investment property or for a second home. Payments on the home equity loan, if the interest rate is fixed, may be tax deductible.

Finding the best home equity loans

Finding the best home equity loan can save you a lot of money, so it is wise to shop around. Check the Borrower’s Bill of Rights to avoid unethical creditors. Look for a range of sources such as banks, brokers or credit unions, making sure your credit score is accurate.

How to chose a credit card

The choice of a credit card depends on the borrower’s requirements, credit history, income level, and other factors. Credit card companies, banks, and other financial institutions offer different types of credit cards, including student credit cards, rewards credit cards, airmiles credit cards, cashback credit cards, and other types. The applicant’s credit score is an important factor which credit card companies take into account. Persons with a limited credit history or poor credit score may want to apply for a prepaid card or a secured credit card. Those with a high or very good credit score and high income may apply for rewards credit cards, cashback credit cards, and other specialty cards, offered with many beneficial features. Among these are hotel points for upgrades and complimentary nights, shopping discounts, concierge service, and many others. Cardholders enjoy other benefits as well, including emergency cash disbursement, stolen or lost card reporting, cardholder inquiry service, etc.

Students are offered student credit cards, and these are usually available to full-time students. Student credit cards go with lower interest rates than other cards. Persons who want to save on interest charges may want to look into low interest credit cards as well.

Obviously, credit cards are not the best solution in each case. For example, persons who plan to make big-ticket purchases may apply for a personal loan. Those who seek funds to purchase a vehicle usually apply for auto loans. Persons with excessive debt, on the other hand, may have limited access to standard loans, and they resort to bad credit loans and payday loans. Those who have multiple, high-interest debts and find it difficult to keep up with repayments often apply for consolidation loans. Generally, credit cards are a good choice for borrowers who charge everyday purchases, seek to meet their short-term cash needs, and pay the balance on time. Credit cards are not intended to be used as a long-term borrowing solution.

What Is The Best Bank For Individual And Business Clients

The Canadian retail banking system is among the safest ones worldwide. Over the last three years, it has taken a top position in view of safety. Two of the largest and best-known banks in Canada are in top 15. Some 8,000 branches operate in Canada, and there is a dense network of ATMs.

Since the Canadian government banned large bank mergers, these institutions started to expand and operate on an international level

The five biggest banks in Canada are RBC, TD Bank, Bank of Montreal, Scotiabank, and CIBC. RBC has around 17 million clients and almost 100,000 staff throughout the world. Headquartered in Toronto, the bank has 1,209 branches in Canada alone. It has two subsidiaries as well. The Dominion Securities is an investment brokerage company, while the RBC Capital Markets deals with corporate clients worldwide. The retail banking segment of the RBC, however, comprises just 22.6 percent of its total revenue. Bank of Nova Scotia is another big bank, offering the full range of investment, corporate, commercial, and retail services. Bank of Nova Scotia features a variety of services and products, including electronic banking, mortgages, credit cards, and much more. With a large variety of services offered, the Bank of Nova Scotia takes pride in being one of the biggest banks on the North American continent.

Savings and checking accounts are among the most popular products when it comes to retail banking. A lot of customers also use banks and other financial institutions for services like insurance, investment products, credit cards, and more. According to a new study, many Canadians use financial institutors for insurance, investment, and banking via an affiliated entity. Some 76 percent of Top 5 bank clients have a loan at the bank where they also have a checking or savings account, 20 percent have some sort of an insurance product, and another 40 percent dispose of investment products. In terms of the middle market, around 70 percent of clients have a loan as well as a deposit. Another 27 percent of bank clients have investment products and 16 percent have insurance products. Most banks aim to develop their relationships with customers through retail banking and eventually enhance them to include further bank services, thus giving clients an incentive to move all their financial assets and holdings to the bank in question. This is a perfectly achievable goal, especially considering the level of safety the Canadian bank sector provides. Banks provide innovative services and reliable products, such as no-fee banking and electronic statements, and thus help expand client relationships with the establishment.

According to the abovementioned study, Toronto Dominion has received the highest marks when it comes to satisfaction. Several factors have been used to measure client satisfaction, including fees, products, transactions, account setup, and problem resolution. In terms of middle-size retail banks, the highest marks go to President's Choice Financial.

What does deposit insurance in Canada mean and what is a bank run? Find the answers to all these questions here.

Tips to Consolidate Debts

Borrowers who are looking into debt consolidation usually have high-interest debts and pay a lot of money in interest charges. Consolidating multiple debts helps borrowers avoid interest rate hikes and late payments, making payments more reasonable.

The first step to consolidating multiple debts is to list all loans on paper. Include cashback credit cards, rewards credit cards, standard credit cards, car loans, mortgages, and other personal debts. Then write down the monthly payment amount, interest rate, and outstanding balance for each debt. This will help you decide which debts to consolidate.

There are two ways to go about consolidation – one is to refinance your mortgage, and the other is to take out a second mortgage. If you choose the first option, make sure you find a reputable company that offers debt consolidation loans with reasonable interest rates. Refinancing your mortgage is a second option, but you have to consider how much home equity will be left.

If you have multiple high-interest department store and other credit cards, you can transfer the balances to a low-interest card. You may apply for a credit card with a low introductory interest rate and make a balance transfer.

Before you try to consolidate, however, it is important to check your credit score. If your credit score is poor, you may not qualify for a debt consolidation loan with a reasonable interest rate. Be honest and think of whether you will be able to repay the new loan. The majority of borrowers who opt for a home equity loan or another type of debt instrument end up with a higher or the same debt load within 2 years.

What types of debt to include in a debt consolidation loan? This depends on interest rates, but you can include credit cards, unsecured auto loans, and other types of unsecured debt. In most cases, you will be offered a secured loan meaning that the loan will be secured against some valuable asset.

Bad Credit Personal Loans Facts

Even persons with poor credit history have a chance to qualify for a personal loan today. Financial establishments recognize that such borrowers exist and are willing to extend financing to persons with average credit. Poor credit does not mean that the borrower will not be able to pay off the loan. The most important thing to consider when applying for a bad credit personal loan is the actual purpose of the money. Will the money go toward something that can wait? Is it that urgent? If your aim is to pay another loan back with this one, you will only be digging yourself in deeper, and the institution of your choice will either realize this and turn you down, or, in the case of sub-prime lenders, hit you with the interest. In any case, you are not in the best of positions. So, you need a reasonable, legitimate, and clear reason why you apply for the loan, which will determine the outcome of the application process.

When applying for a bad credit personal loan in Canada, you will be required to provide a credit application, credit report, proof of earnings, and a list of your assets and liabilities bearing a notary seal.

As a first step, you have to find a lender who is likely to approve your application. You need to sift through a long list of lenders, who are willing to provide personal loans to people with a poor credit rating. The first place to try your luck is your local bank or a financial institution where you hold one or more accounts. If your bank of choice turns you down, it is time to look at Internet offers. It pays to be careful, however. Some non-traditional financial institutions offering their services online feature good deals, and others don't. It is not always easy to tell the difference between scams and good offers at first.

Now we return to the reason you need a loan. Most people who apply for bad credit personal loans need the money to cover short-term expenses, such as home improvements and vacations. These are not legitimate reasons to apply for a bad credit personal loan unless you need to pay emergency medical expenses or urgent home repairs. If you need money to buy a car or a house, it is a good idea to first rebuild your credit and then apply for a loan with better terms. Again, covering debt with a new loan is not a wise decision.

Be very cautious when you begin to compare the terms and conditions of various bad credit personal loans examine twice. Do not only consider interest rates and repayment terms. You should also watch for excessive loan closing costs, hidden fees, and other elements. You will end up paying more than you borrowed in any event; so, be sure to consider the pros and cons.

Tax Debt Relief Guide

At present, tax debt falls under the regulations of the CRA, and the agency has more authority compared to other creditors. The agency can take a number a measures, for example, it can seize money in your savings accounts and investment accounts, place a lien on your home, and more. A lot of factors can contribute to income tax debt, including cashing a RRSP, improper deductions when a large account is being closed, pensions of newly retired persons, working multiple jobs, and more.

Persons who look for information on applying for debt consolidation in Toronto often wonder if this is really possible – can you make a deal for any taxes owed? This is a possibility in certain occasions. If you owe taxes, and you cannot pay the amount if full, you may want to negotiate the terms of your payment. As a first step, you should visit an office of the CRA and explain your financial situation. When offering a payment plan, you may propose to break down a larger amount, say $1,500 into 15 monthly payments of $100. The CRA will either accept your payment plan or it will reject it and attempt to collect the taxes you owe.

Note that even if your proposal gets accepted, you are still charged penalties and interest until you repay your debt. Then, if the Canada Revenue Agency rejects your offer, they have the right to withhold GST credits and child tax credits until you repay your debt now. They can take money from your bank account and garnish your wages. As you see, tax debt is a serious matter.

The CRA does not accept payment plans that propose to pay less than the amount owed. This makes sense. If you are allowed to pay less, then everyone else will want the same deal. One option is a repayment plan where you work with the Canada Revenue Agency and a second option is to consider government programs such as the former CRA Fairness, now Taxpayer relief provisions. Under this program, the CRA can accept late-filed, revoked, and amended tax elections, waive penalties and interest, and offer income tax refunds. The latter is possible beyond the three-year period that is allowed, but only for testamentary trusts and individuals.

The Canada Revenue Agency makes this possible because there are cases in which the taxpayers face unforeseen events that prevent them from meeting their tax obligations. These circumstances include natural disasters such as floods and fire, personal misfortunes, such as death in the family and sickness, incorrect information and error by the CRA, and service disruptions like strikes.

When would the CRA cancel penalties and interest? This is possible when human-made and natural disasters occur, as in the case of fire and flood. A second category includes sickness and serious accidents, including emotional and mental distress. Finally, disruptions in services and civil disturbances are a third category. The CRA also cancels penalties and interest when they result from the agency’s own actions, such as processing errors as a result of which people are not aware of certain obligations. Selecting a good payday loan in Toronto solution can be hard, to make informed decision online fast loans application.

Using Secured Credit Cards To Build Credit Pros And Cons

If you have poor or no credit, having a secured credit card will help you establish or improve your credit score. You can get secured credit cards in Toronto from most Canadian banks or other credit card providers. If you are a union member, you may want to check with your institution as well. Secured credit cards are not offered by all institutions and in fact, most credit card issuers prefer the unsecured variety. The latter are offered with higher fees and interest rates. You should not give up though, and an unsecured credit card is not always an option. Young persons who are just starting out or those who are rebuilding their credit score after some major event (serious illness, job loss, or divorce), may find this card a good option.

When it comes to Toronto secured credit card application, which one is a better deal? You can choose from various types, including secured MasterCard and secured Visa. You can check the offer of Toronto Dominion, for example - the secured TD Canada Trust Credit Card is a type of card secured by money you deposit into the card account. The amount deposited becomes your credit limit. The funds deposited into the account may be held by the bank up to three years, depending on the card of choice. Apart from establishing credit history, this card allows holders to take care of emergency purchases, car rentals, and hotel reservations.

The Capital One Guaranteed Secured MasterCard is another secured credit card you can check. It is offered with zero fraud liability, 19.8 percent interest rate, and annual fee of $59. This card is a good option for persons who seek to establish credit and are able to cover at least the minimum balance. The card is featured with a number of perks, including MasterRoad Assist Service, MasterCard Global Service, and 24/7 assistance. With the MasterCard Global Service, clients are entitled to emergency card replacement, emergency cash advances, 24/7 telephone access, and more.

The Bank of Montreal also offers to its Vancouver clients secured cards. You can check the Prepaid Travel MasterCard, going with a $9.95 purchase fee, zero dollar liability, purchase protection, worldwide acceptance, and extended warranty. The IDefense service offers identity theft assistance while safe internet shopping is possible thanks to the MasterCard SecureCode. A major benefit is that cardholders do not pay interest.They can load the credit card as a bill payment, using a bank account in a number of financial institutions. It is easy to load and reload this credit card. It is up to you how much to load provided that the card is prepaid and re-loadable. The Prepaid Travel MasterCard is a convenient and secure alternative to other products such as traveler's cheques.

If you apply for this card, you should present your personal information, employer's name, employment status, occupation, and other information.

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Getting A Business Loans For Startup Businesses

In Canada, you can get a business loan no matter whether you have an existing, established and successful business or you are just starting out. Obtaining a line of credit is recommended by some experts. This should not be your sole source of funding, but a line of credit is a good option for startups. Underestimated and unexpected expenses often occur, and you have to watch out for such. You should pave the way to this sort of funding by establishing a good relationship with the local bank and a sound credit rating.

An additional or second option for startups is a business loan from a credit union or a bank. It is not difficult to obtain a start-up business loan in Canada right now because the economic situation is improving and many people are establishing successful small businesses. As a result, traditional lenders have more interest in small businesses than they did in the past.

A variety of programs are offered by the Business Development Bank of Canada, which can help you obtain financing. Co.Vision is one program that offers up to $100,000 to reliable, new businesses. In general the bank provides business loans, financing, venture capital, and consulting to businesses. Financing is intended to protect companies' cash flows through repayment schedules, fitted to their business cycles. Financing is offered with longer terms, and it is possible to defer capital payments. Business owners can use the funds to purchase commercial real estate, including buildings and land. They can improve or expand rented or existing premises or construct new premises. Business owners can benefit from the funds by buying new or used equipment, and loans are also extended in the form of startup financing. The money can go toward franchise purchases as well as marketing costs and other startup expenses.

If you need a business loan in Toronto, credit unions are just one option. An example of a prime lender is the Canadian Youth Business Foundation. This non-government organization offers loans to startup businesses up to $15,000, available to persons aged 18 to 34.

Female business owners who need financing can turn to the Alberta Women Entrepreneurs (AWE). Economic development organizations are another option in Canada, for example the Community Business Development Corporations and the Community Futures Development Corporations.

The Canada Small Business Financing Program also offers loans up to $500,000. This establishment provides term loans for fixed asset needs.

Other sources include government-sponsored business start up programs, investors, and government grant programs.

Many traditional lenders in Ontario also cater to established businesses, providing commercial and retail lending, lines of credit, SBA loans, credit cards, and more. Some also offer fast business loans. Business incubators are another option for companies in their first year. Some community banks in Canada provide financing to established business owners and facilitate small business checking and refinancing. Apart from financing, you could also receive business counseling, mentoring, and consulting.

If you are interested in getting a business loans, visit this site for more information.

Factors To Consider Before You Get A Construction Loan

Some builders, buyers, and property owners seek funds for construction. They may want to complete a project and shop around for financing, trying to figure out how it works. A second category is formed by persons who have done some research and have specific questions in need of an answer. A third category is made up of persons who have secured financing already. In either case, there are different factors to take into consideration. These are timing and management of cash flow which should be factored in before applying for financing. Every construction project has impact on the cash flow of service providers, suppliers, builders, borrowers, and even lending institutions. It is a good idea to outline accurate budgets, completion stages, payment timelines, and disbursement requirements.

Similar to other types of financing, construction loans in Toronto have to be secured by some asset. A second mortgage is an option if the equity in the property is not enough to pay the first draw. Over the next stages of construction, the property’s value will increase, and more funding may be available at specified stages of completion.

The milestones or points of completion are set at the beginning of the construction project, reflecting the timeframe within which the building’s fair value will increase. Speaking of residential properties, the completion of the basement and foundation are considered the first points of completion. The enclosure of the roof and walls and the framing of the building will be the next milestone

With some lenders, Toronto construction loans have the following features. Funds are extended when required, and the principal is to be repaid once the project is complete. This takes about eighteen months from the start of the construction project. Upon project completion, there is an option to convert the loan into another fixed rate product. Interest that was accrued during the different construction phases may be capitalized into the loan amount.

One important factor is the benefits of taking out a construction loan. With funding available when required, borrowers save on interest. Moreover, cash flow management is easier over the loan’s term. This makes it easier to meet unexpected expenses. Given the competitive interest rates and the option to switch to another product, the borrower gets an attractive financial package.

Naturally, there are different types of loans in Ontario. They are either part of a so called combination loan or are in the form of a stand alone bridge loan, offered for the period of construction only. The combination loan starts out as a construction loan, then rolling in into a long term mortgage loan, which is pre-approved.

Finally, it should be noted that as the complexity and size of the project increase, so do the lending requirements of financial institutions. Want to know more about payday loans in Toronto.

Should You Choose Stocks Or Bonds in Investing

As a Canadian, should you invest mostly in bonds or in stocks? Should you invest everything in just stocks or just bonds? This is a difficult question when it comes to investing. Experts advise that you should invest a minimum amount in bonds, with stocks being a main part of your portfolio. It is always best to have a bit of both than to put all your eggs into one basket. Portfolio diversification is a major consideration when investing.

From this perspective, the amount you invest and the type of investment instruments you include in your portfolio depend on the risk you are willing to take as well as on your individual circumstances. If you are risk-averse, you should not make risky investments. In addition, if you do not have enough cash, it is best not to invest. Persons prone to anxiety and panic attacks should not take excessive risks as well. Regardless of what you decide to invest in, protecting the bare minimum is important - this is the money you will need post retirement. You can invest the money that is above and beyond this.

If you choose to invest your money in bonds, opt for ones with a term of no more than five years. Toronto municipal bonds featured with longer terms entail more risk, and they may lose value more easily.

Among the factors underlying the decision how much to invest and what in are your minimum required monthly income, taxes, expected pension benefits, and the equity you will have in your home when you retire. You should not expect growth in value - use the current market information.

How do you calculate expected returns on Canadian bonds? You should take inflation and the interest rate into account. If inflation is 3 percent while the interest rate is set at 6 percent, your return will be 3 percent (simply subtract the second from the first.

As for stocks, you need to ask yourself how much money you can really afford to lose. Then multiply this amount by two. You should never invest more than that in stocks. The risk is higher with stocks, but so are the purported gains. With bonds, returns are between 3 and 4 percent, while with stocks, these can be five times higher. Yet, you may lose as well win. Finally, in times of market instability, it is not important what you choose to invest in, right?

Investing in residential real estate is an alternative to investing in stocks and bonds. Investing in real estate is in fact a major investment instrument. Home owners mostly buy property as their primary residence. It should be noted, however, that owners do not always have the full purchase price of the property they buy, and financial companies extend loans for the purchase. In comparison to other types of real estate, residential real estate carries the lowest risk. This useful guide to Canadian bonds has detailed information on penny stocks.