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Productive loans: simply achieve more

There are many reasons to sign a loan contract. But it doesn’t always make sense to go into debt for something.

There are many things in life that cannot even be paid for. This is what young families, for example, are experiencing, who are currently setting up their first apartment together: up to now, the two partners have always gone separately with their dirty laundry to the nearby laundromat. For three family members, however, this is expensive and time-consuming. The simplest solution is to buy a washing machine, but the couple has to take out a loan. That is a sensible solution. Because when the loan is paid off, the family has a material value that will hopefully last a long time. It also saves expensive laundrette costs. And it can make good use of the time that the laundry is in the machine for other things.

If you replace the family with a company and the washing machine with an expensive system in a production line, you come to the same conclusion: resources are used more sensibly through the new acquisition. Ultimately, the loan helps to save or make a higher profit. Experts call such a loan “productive”.

Real estate loans can also be productive

Other examples of productive loans are, for example, loans to finance a degree. Statistically, academics are less likely to be unemployed and earn well. Such a loan is an investment in the future. A real estate loan can also be productive – if the purchase price of the house is reasonable, the location is right and the value of the house is continuously maintained.

If you tried to save the entire amount for a course of study or a house, you would probably have to start early and save for a long time. Before taking out a loan, however, it must be ensured that you can service the loan regularly and that it is adapted to your life situation. In the worst case, a loan that you cannot repay will drive you into personal bankruptcy.

Set realistic goals

For example, a loan is not productive if someone who urgently needs a car to drive to work every day chooses one that is unreasonably expensive. Or when the family takes out a loan to go on vacation, or when the company owner opts for a system whose capacities he can never use. If you need a loan, contact your Moneysparks Finance advisor. Together with you, he calculates which loan amount is feasible for you.

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Top rating, top credit terms

As an entrepreneur, you are often faced with investments that you cannot make without a loan. The terms of your loan depend heavily on your rating. Read here how this value is created and how you can influence it.

Whoever grows usually has to invest. We are happy to support you with your plans with a loan. As with any funding, we need to determine what the risk is that you will not be able to repay the money. We evaluate your project and take a look at your books. Other factors are also included in your assessment on a scale from 1 to 18. The scale works similarly to the Bundesliga table: 1 is Champions League and 16, 17, 18 are relegated – i.e. a credit default. This means that a low rating stands for a low risk and is rewarded with advantageous credit terms.

By the way, we are committed to the rating. This enables us to prove to the banking supervisory authority that we are not taking more credit risks than is permitted.

A variety of criteria

We want our rating to be transparent and understandable for you. We therefore explain to you what has a positive effect on your classification:

1) We analyze your balance sheet. The key ratios include, for example, the equity ratio. So ensure the best possible ratio of economic equity to total assets. You can achieve this by, among other things, forming retained earnings or settling outstanding receivables.

2) Strive for systematic and ongoing controlling. By means of a meaningful cost calculation, you can see whether your investment is profitable.

3) You should not use short-term loans to finance capital goods that you want to use in the long term.

4) When it comes to an upcoming investment: Explain your project to us with the most detailed planning possible. It is particularly important to us that the numbers are plausible and that the project is highly likely to pay off.

5) With good liquidity planning, you ensure that you generally adhere to your credit line. For example, you do not exceed the maximum amount of your overdraft facility.

What else pays off

  • We keep talking regularly and openly.
  • You convince us of your product policy.
  • You prove to us your strong position in the competition.
  • You have an emergency plan in case you fail unexpectedly.
  • Your company succession is regulated.

Would you like to invest and do you need capital? Or do you have general questions about your rating? Then make an appointment with your customer advisor.