You cane never be sure that at all times, you have all the money that you need, be it for business opportunities, education or home improvements. It is best that you keep your credit standing really good to be able to get loan/s easily.
BENEFITS OF GETTING A LOAN
For many
people, getting financing or a loan is mostly perceived as a burden. To us
Filipinos, getting a loan is perceived to be “nakakahiya”, keeping it a secret
to others.
However, in
first world countries, getting a personal loan is not only for acquiring what
they need, but is also part of strengthening their credit worthiness (that they
are able to pay their monthly installments completely and on-time). They
develop their “payment history” and reputation as good loan clients in order to
have access to more financing from more financing institutions.
Also,
financing should be perceived as a “resource booster” for your business. With
more cash inflow through a loan, you don’t have to dip into your savings for
the cash. This enables you to manage your cash outflows through your monthly
payments. If you need cash to buy for inventory or a new delivery van, you
either get the money from your pocket or, get it through a loan from a
financing institution and only pay monthly payments. The second option is
better as it will not drastically change your cash position.
Thus,
getting a loan for additional cash, working capital, or assets (e.g. vehicle)
for personal or business use is not supposed to be “nakakahiya” or a burden. It
should be a budget booster so you can provide a better life for your family or
grow your business faster and provide better products or services to your
clients.
However, you
should not get a loan on a whim. Getting a loan just to acquire the latest
cellphone or more cellphones, or the latest car model just to satisfy your
wants will eventually become a burden if you cannot afford it. Thus, we have
some tips for you to become a RESPONSIBLE BORROWER
KNOW WHAT
YOUR LOAN IS FOR
Be sure on
your decision to get a loan or financing and stick to it. You need to get a
loan to repair or renovate your home to make it safer for your family. You get
car financing because your family is getting larger, it is safer or reliable,
or is more fuel efficient. You get a loan to buy for a new delivery van because
you want to expand your delivery services and save on maintenance costs. Thus,
before getting a loan, you have to know why.
Do research
on financing institutions. Look into their social media or website and find out
how long they have been in the business. You can go to the BSP or SEC websites
and find out if these financing institutions are registered. You can go to
their branch or offices to inquire more. With all the scams happening now, it
is always wise to know more about these institutions and if they are accredited
by our government institutions.
Get
organized and budget your loan payments. When you get a loan, the monthly
payments will eat into your budget. Thus, you have to determine if you can
still afford the loan without sacrificing much on the budget for your family’s
basic needs. For your business, will this loan help generate more revenues and
income for me, making that additional revenue cover for the cost of the monthly
payments.
When
applying for a loan, financing institutions will often ask for a CO-MAKER (a
person who will also share responsibility for the loan payments). A person
willing to be your CO-MAKER vouches for your character, that he/she knows you
to be a responsible and trustworthy person capable of paying your loan
obligations on time. You do not want to disappoint your CO-MAKER by not paying
your loans as they will assume that responsibility.
Therefore,
do not borrow more than what you need. You may be approved for a higher loan
amount than you expected, always stick to the loan amount that you need. Also,
do not apply for loan amount that you know is impossible for you to pay.
Financing institutions have their credit assessment processes and will know
your payment capacity.
Now that you
have been approved for a loan, always pay completely and on time. By paying
completely and on time, you are building you credibility or
“credit-worthiness” in the financing
industry. Having a good payment record enables you to gain access to more
financing institutions, higher loan amounts, cheaper rates, longer loan terms,
and gets you approved faster. Failing to pay for your loan will deny you these
advantages and most financing institutions will know through their credit
investigation process. Thus, your reputation as good borrower is on the line.
Lastly, if
possible, pay more than your monthly installments. It will help you ease future
payments (lower amount on succeeding monthly payments) or close your loan
account ahead of the time (financing institutions may give you discounts for
early payments). This will not only further enhance your reputation as borrower
but will also ease your financial responsibility.
To know more
about financing, visit the Radiowealth Finance Company Website,
https://rfc.com.ph/
Connect with
Len Rodrigo, Regional Sales Manager at mcrodrigo@rfc.com.ph 09985903274.
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