Month: May 2022

If you’re planning on starting a business or purchasing a property, you may think that however you get the initial funding is fine. The reality is that there are very different rules based on the type of loan you get. Each brings something different to the table with its own different sets of strings attached. Here, we’ll go over some of the major differences that can be found between personal loans from bank lending as well as private lending money loans.

Bank Lending

Bank lending is, for many, the more officially recognized money lending option between the two. It is, as the name implies, financial capital issued out to businesses specifically by a bank or third-party finance medium. This capital is meant to handle long-term business projects or plans. These loans are set to a fixed period of time for repayment, with variable interest rates applied based on the nature of the loan.

Pros

• Lower Interest Rates: The biggest draw for bank lending is the fact that the interest and repayment rates are generally much more manageable compared to many private lenders. This is because their initial cost of the funds is lower due to being federally backed.

• Tax-Deductible Expenses: When paying the interest on a bank loan, the debt is paid off is tax-deductible so long as it is for business-related reasons.

• More Secured Loan: While it may still feel somewhat predatory while amid repayment, bank loans are more secure and less likely to have tricks and “gotchas” laced in the fine print compared to private lenders.

Cons

• Less Negotiating Power: A huge issue here is the fact that bank lenders either can’t or have no reason to work with you. Essentially, their rules are hard-lined, and if you don’t meet them exactly how the bank wants, you can’t get the loan. This can be problematic for most people.

• Restrictive Regulations: Just the same, most banks cannot lend to small or new businesses due to their more restrictive regulatory practices.

• Risk-Averse: Ultimately, bank loans are very risk-averse. As such, many will actively avoid supporting any business that is deemed too “high-risk” or too “low cash-flow”. Because of this, most small businesses won’t get much funding even if they otherwise meet all of the other requirements.

Private Lending

Private lending works similarly to bank lending with the one exception being that this is from money lenders in the private sector. Because they are privately owned, they are not forced to hold the same regulatory standards as banks. This can lead to some predatory lending but also some much more reasonable terms and acceptance options, as you can often negotiate your situation easier with a private lender than a bank.

A great example of a legitimate private lender is California Hard Money Direct. This is a Los Angeles hard money lender that offers reasonable rates with their clients as well as fast approval times.

Pros

• Faster Approval Times: Provided you meet their respective requirements, getting approved can be surprisingly fast, especially if coming from bank lending, where you must go through weeks of pending approval for an answer. Here, it can be completed within two weeks.

• Easier Approval Chances: The biggest leg-up private lending has over bank lenders is that their approval requirements are considerably easier to meet. In most cases, if your credit history is good enough, this can be all you need to get a loan.

• More Easily Negotiable: While certain lenders have a predatory slant to them, these will often be much more ironclad in what is negotiable and what isn’t. Legitimate private lenders will generally have negotiable

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Though there are a lot of factors that go into deciding what to do with your body or the body of your loved ones after they’ve passed, there is still a significant stigma against cremation services. While each person has the right to handle their respective family’s body however they choose, and more people are beginning to take cremation more seriously, it’s worth taking a serious look at the benefits offered by the service and why it’s objectively the better option, not just for you, but for everyone else as well.

Reason #1. It’s Cheaper

This, for many people, can be all the reason they need to look into cremation over funeral burials. This is because, while it may not look like it, burials are a very expensive procedure. It’s actually a bit insidious when you think about it.

Regardless, even if you factor in the full memorial services that one can expect to have with their funeral, there is virtually no comparison between cremation and burials. Most places can cost between $700 and $2,000 for everything while even the most basic of burial services will range between $5,000 and $10,000, with potentially much more included.

Certain crematoriums like Arlington Cremation Services (arlingtoncremationservices.com) offer incredibly reasonable rates as well as a number of different services, all starting around $800.

Reason #2. Greater Flexibility

After price, the next biggest benefit to cremation is the fact that it offers a greater degree of flexibility compared to burial services. In most instances, you expect the burial service to just be a burial service. On the other hand, if going through a cremation service, you can keep the ashes with you in an urn, keep them at a funeral site, release them as per the person’s wishes, use them as fertilizer for plants and trees, or even have them condensed down into a diamond. These are all an extensive variety of options that simply aren’t available to those buried. Not only are many of these options cheaper, but they can often result in a greater sense of emotional closure for all parties involved.

Reason #3. Environmental Benefits

One big area that is rarely touched on is the fact that burial services, while expensive, are also environmentally unsustainable. From the various embalming chemicals used, the different materials used to construct the caskets, the amount of fuel used to transport the casket to the burial site, and the different pieces of machinery used to dig up the site and lower the casket down, there is a tremendous amount of negative impact done to the planet.

Cremation not only is a relatively smaller impact on the environment, but if you opt to plant the ashes with sprawling trees, you are ultimately benefiting the planet as a whole, something that is much more immediate compared to the slow and arduous process done with burials due to the embalming procedures.… Read the rest