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5 Tips on Qualifying for a Loan in 2019

Loan requirements have changed continuously over the years. Although different countries have different loan requirements, some factors are constant. These factors are also constant regardless of the loan nature. Even though some easy loans New Zealand
such as car loans and mortgages may have lengthy processes, the same requirements apply.

First, it is important to understand the type of loan you are applying and make the request specific. Ambiguity in the financial world is unacceptable, and it is, sadly, the main reason why many people do not qualify for loans. A personal loan, for example, may have a different set of requirements compared to a mortgage or a car loan. Understanding the nature of the loan dictates the lending period and the repayment criteria. Understanding these factors is one-step to a successful application.

Second, it is important to have a good credit record. Financial institutions are willing to give loans to people with a good history in repayments. You should evaluate whether you have a good credit score or not. Fortunately, there are different ways to calculate the credit score. If you do not have a good credit score, it is important to pay your existing debts as this helps in raising your credit score and in return improve your chances of getting a loan. Whether you want a loan or not, keeping your credit score higher is encouraged for future loan applications.

Thirdly, documentation is important in any loan application. Although the world is quickly embracing the digital reality, most loan applications procedures require documentation. The nature and the type of documentation, in this case, differ from one loan to another. If the loan is for business, the financial institution will need to see your financial statements, accounts payable and receivable and more importantly, all tax returns. If the loan is personal, the financial institutions expect personal documentation such as tax compliance and proof of steady income.

Fourthly, before applying for the loan, it is advisable to check and pay all tax liens. Every financial institution will be hesitant to give you a loan if you have not filled your taxes. Thanks to changes in the taxation world, you can pay all outstanding taxes at once. Filling these returns helps in raising your chances of getting a loan. While filling the tax returns, it is important to note that regardless of the tax obligation, (federal tax or state tax); failing to produce papers or proof of tax payments is one-step to a failed application.

Finally, as a loan applicant, asking the right questions is important. Thanks to changes in the financial world, financial institutions are accessible through their representatives. As an applicant, you need to ask the right and important questions related to the loan you intend to apply. You should ask the financial institution’s representative the specific documentation required and the loan eligibility. Understanding the financial institution’s perspective helps you as an applicant to be precise and in return maximize your application chances. Having the right information also helps in saving the loan application time.

 

4 Proven Ways to Acquire Non-Profit Startup Grant (Sponsorship)

One would think that nonprofit start-ups do get funding easily. The fact that they are here for public good does not mean that getting funds is easy. The process of getting Nonprofit startup grants can break or make the organization. It is critical for one to prepare themselves well to make the venture a success. The journey of starting up can be costly. Not to mention the expensive cost of filing for tax-exempt status from the authorities.

  1. Seek Out the People who would like to see you Succeed

Start with the people close to you. Ask your family, colleagues, and friends to help you in your venture. They may not contribute as much money, but they can give you enormous connections. Talk to them and pitch your idea and vision for your company. They will help you modify your plan and make it great. It will then become easy to approach other people for funding as you already have your family support.

  1. Look around at the Community surrounding you

The beneficiaries to your nonprofit establishment will probably be the community residing around. It is essential to talk to them and pitch your idea. Your proposal ought to be effective in addressing a need in the society. Your case statement should speak for itself. It should be so unique and compelling that people automatically volunteer to fund immediately after reading.

Look for the community leaders, churches, advocacy groups, and other people. All the partners involved may help to point you in the right direction regarding funding. People like community leaders are well connected. They can help you with your idea and introduce you to foundations and people who can offer support.

  1. Get a Fiscal Sponsorship

It is critical to determine the right sources of funds your nonprofit foundation wants to focus on for funds. The decision will help you know what you need to know to pursue your options. For example, if you are seeking government grants, you may need to meet their set qualifications. It is also good to note that it is the hardest source to find funding.

You will need to file for a fiscal sponsorship agreement. It is the formal agreement that allows the nonprofit foundations to apply for funding and grants. The letter outlines the various rules you ought to adhere to and how to use the funds responsibly. It is good to look for sources of funding that share in your mission. The foundations are likely to support your vision.

  1. Understand The different Foundation Restrictions

Understanding what one foundation can offer you with regards to support is essential. Foundations have restrictions on what help they can provide. Some will provide you with funds, material support, services, educational services, and research. Determine the types of organizations that offer what you need and build strong relationships.

The potential donors would like to see your commitment, reliability, and accountability. Building strong relationships will help them know you better and grant you the support you need.