Debt consolidation is handled by bankers or debt consolidation companies. Their objective is to enable you solve your debt problems by making timely repayments and managing your debts

This is a great option since the debtor saves on the amounts paid back to the bank. They are also able to better plan how much they need to repay for all their debts without having to remember many debts. There is comfort knowing that there is an expert who cares about your finances.

How can credit debt consolidation help you?

If You have debts that are devastating and tough to manage, then credit debt consolidation is the solution to the problem.  Instead of looking for where you are going to get the money for the countless monthly payments and delayed fees, debt consolidation enables you to obtain a loan to pay off all your debts and then you will basically have one debt payment per month.

When you decide to choose debt consolidation, you will not have to be anxious about getting in touch with many debtors. This has been a most frustrating element of owing debts. It may be that debt collectors are calling you while at work and also at home which can be very annoying.  For this reason credit debt consolidation becomes a popular alternative.

Credit debt consolidation loans also helps

Despite countless bills you owe or how far behind your repayments have fallen,  debt credit consolidation loans can help you. If you are being pursued by insensitive debt collectors and creditors

There are various curriculum available all planned to take your numerous, high-interest debts and cumulate them together for easy payment. This is certain to help lessen the stress and burden linked with accumulated debt, high interest rates and delayed charges. Debt consolidation loans have been used by many debtors to reduce and manage their debts in the past.

Credit debt consolidation loans are  properly considered to be alternatives to bankruptcy. You can decide to lower your general bills, stay away from additional damage to your credit ranking or credit rating. It is possible to get back control of your monies by t making the decision to act now.

Credit debt consolidation considerations

You may possibly want to get a consolidation that permits you to pay an amount every month that you can easily afford. If the sum for your credit debt consolidation is higher than what you were look forward to pay, then you might need to look at bargaining the terms to a more reasonable and affordable terms.  You should also consider the repayment period or schedules. It should be comfortable to you.

Other consideration for debt consolidation includes the ability of the company taking over to handle your loan. The debt consolidation company may not be able to take over the full amount of your loan, and such companies should be rejected.

The idea for debt consolidation is a brilliant idea, which must be taken up by people with little to non-financial discipline.

managing your finances

As soon as Christmas is over, the savers realise that they have spent more than they had anticipated. They have to save a bit more or reschedule the goals they had set to meet.

To manage unplanned spending during the Christmas season, follow the tips below and avoid regrets after the holidays

Dos to managing your finances

1. Determine the amount of money that will be needed to purchase the gifts. When this amount has been decided, move on to the next step
2. Determine the amount to be saved per month, to reach to the desired amount. Always give yourself enough time to achieve the desired amount.
3. Have a list of all the people you want to give gifts to. These lists are very important as it determines the number of gifts that will be purchases.
4. Start shopping for non perishable gifts early. Last minute shopping may mean that you spend more funds than budgeted.
5. When possible, purchase gifts when they are on sale. This may reduce the amounts used and the savings can be used for emergencies during christmas

Don’ts of managing your finances

1. Do not spend money you do not have
2. Do not borrow money from your credit cards or bill payment.
3. Do not buy unplanned items or items not on your shopping list
4. Do not go shopping with friends who may influence you to spend more than planned
5. Do not take a lot of time to shop when you know what you require. Go in and out of the shop without looking through he aisles
6. Do not window shop while carrying extra money in your wallet or credit cards
7. Do not purchase perishable presents before they are required because they will spoil. For example do not purchase fruits more than a week before they are required because they ripen and spoil before they are given as gifts

The above tips are a way to assist consumers during the Christmas  to help in managing your finances.

Lend lease is especially important for businesses which rely upon cutting- edge technology to operate efficiently, for example, the latest computers and communication devices.

lend lease should be greatly considered by businesses in early stages of  development. lease lending is like a quick loan to a business.

 Meaning of lend lease

lend lease

Lend lease means leasing equipment where a dealer already owns the equipment that  the business requires. In exchange for the equipment, the business (that is the lessee) makes monthly payments to the owner (the lessor). The ownership of the asset remains with the lessor or owner.

Lend leasing is greatly beneficial to the company because apart from ensuring the company has sufficient cash flows, the monthly payments are treated as tax deductible business expenses reducing the tax liability.

Some of the advantages to the business to go for Lend lease are:

• Reduces the amount of cash needed to finance acquisition of equipments and machinery.
• The monthly payment structure allows the payment to be treated as tax deductible business expenses.
• Leasing also makes it easier for the business to keep pace with technology especially if the business relies on the cutting- edge technology.
• It is a faster way of obtaining equipment.

 Business considerations for lend lease financing from the bank

1. Lease term- The length of the lease will affect the monthly repayments, that is, a longer lease term means lower monthly rent to be paid and vice versa.
2. Upfront payment- the customer should establish this in light of the cash flows so as not to commit the much needed cash for business operations.
3. Monthly payments- One should analyze the amount to ensure that the cash flow of the business is not affected.
4. Return Rights- It should be clear under what circumstances the lessee can return the asset when problems are encountered.
5. Early Termination- Most lessors are reluctant to include this clause, but it would be good for the lessee to negotiate an early termination right in exchange of paying a fee.
6. Option to purchase- the lessee should also negotiate an option to buy the leased equipment at a fair market value
7. Substitution Clause- This helps the lessee update or exchange the equipment to avoid paying for obsolete equipment or technology.

Lend lease is a very unfamiliar type of lending to most businesses in developing countries. Lend lease is the next level of borrowing for companies who need to grow and manage their cash flows.

Asset financing

Asset Financing can result in majority of firms experiencing cash flow problems which lead to business failures. One may however avoid such significant one-off expenses by financing the equipment, machinery or motor vehicle through asset financing.

Asset financing means the banks provide the finance needed to purchase the asset to the customer who makes monthly installment repayments. The asset financed is used generate cash flows and the same asset acts as collateral for the debt.  His is usually not considered as a quick loan.

Asset financing has greatly helped businesses like the transport and manufacturing industries to expand and be able to plan for asset replacement. The tremendous growth in these industries has contributed greatly to the economic development by creating job opportunities.Asset financing consideration when lending to the customer:

Cash flow positioning and future projections for Asset financing

1. The customers current cash flow, that is, how much does the business generate which determines the customer’s repayment ability.
2. The projected cash flow increase. Once this new asset is acquired and operates at the optimum, there is expectation of improved cash flows all other factors will remaining constant.

Asset financing – Age and usage

1. The age of the asset to be purchased especially for vehicles. Most banks have a limit to the age of the asset they can asset finance.  This is to safeguard the customers’ interest and reduce any future high maintenance cost of the asset which would greatly affect the cash flow.
2. The use of the asset – whether it is for personal or commercial use. This mainly applies to motor vehicle purchase as machines are basically acquired for business use. If the vehicle is for personal use, then the wear and tear is not as high as when it is for commercial use.

Customer contribution and involvement in Asset financing

1. The customers’ contribution will also be taken into consideration. Most banks do not finance 100% the cost of the asset and mainly they peg the contribution on the age of the asst and even the use of the asset. The older the asset the more contribution by the customer and vice versa, while if the asset is for commercial use then the higher the contribution expected from the customer.
2. The repayment period of this type of financing will depend on the current cash flow and sometimes the expected cash flow.
3. Interest rate charged will greatly depend on the age of the asset and the use of the asset.

Small businesses should take advantage of this type of financing to enable them release their cash for trading and avoid the business being cash- starved. Asset financing is a financial solution for small and medium sized companies, which are the bank bone of many economies.

 Mortgage finance business and commercial banks

Mortgage finance

For a long time, commercial Banks shied away from Mortgage financing. They argued that it was such a long term financing and most of them were not ready to tie down their customers deposits for such a long extended period. They preferred lending for medium term (that is three to five years) and short term (that is two years and below). Mortgage financing was therefore left to institutions which were specialized mortgage financing institutions, for example, Housing Finance Corporation of Kenya (HFCK).

However, with increased demand in the market in recent years for property ownership and competition in the banking industry, the Commercial Banks have had to re-evaluate their previous position on mortgage financing. With so many Banks penetrating the market, banks have had to think outside the box to enable them survive in banking industry.

 Strategies in use by commercial banks to enter mortgage finance platform

Unfamiliar territories come with great challenges, which if not tackled well will result in huge failures. Some of the commercial Banks have decided to build synergies with already existing mortgage financing institutions by purchasing shares in these institutions. The main advantage of this is that they obtain human expertise. The banks provide capital financing.

Other commercial banks have opted for the option of creating mortgage finance departments. these option comes with challenges for the new enttrants into mortgage finance.

Challenges faced by banks as new entrants to mortgage finance.

1. Lack of knowledge and experience-Most new mortgage finance banks have little understanding about the property market and end up dealing with un-scrupulous property developers who overvalue the properties. These properties are over-valued because of the demand which is not marched to the supply.
2. Staff de-motivation due to lack of expertise by the employees on the concept of mortgage finance. This has resulted in frustration for both the employees and their customers.
3. Raising capital by the commercial banks to accommodate mortgage finance. the banks have to explain to existing and potential shareholders the importance of venturing into this new line of financing and this is not easy. Shareholders must be convinced and give consent for such large capital outlays.
4. Identifying the right property developers to work with and who will not take advantage of the banks customers in terms of the property value and even reliability.
5. Time constraints while balancing the expectations of the shareholders in terms of immediate returns verses the reality that the benefits from mortgage finance will not be released immediately. Closing a deal on mortgage finance would not be as fast and the returns are realized after a long time.

However, the commercial banks are in the right track as this is the current growth area to be tapped in order to survive the market. Diversification is the key to survival for banks in highly competitive markets and Commercial banks must get into mortgage finance business to reap the benefits.

Bank Lending to small businesses

Bank Lending to Small Businesses must understand the Nature of the product

Understanding of the nature of the product of the business is very important. Whether the business is dealing in perishable  goods(food stuff, flowers etc) or un-perishable products. How long the business takes to convert the stock of the product to cash. If the products they deal in have substitutes and are they essential products or what would be termed as luxury products. The products could have a substitute, for example, if the business is dealing in footwear is there other alternatives to the same which can serve their customer.

 Bank lending to Small businesses must understand the Market for the product

Understanding the market for the product is very crucial. Consider if the market is local or they deal with the international market. Does the market consist of a certain age group or is it for the mass population. Products dealing in fashion outfits generally target a certain population. Other factors of the market to be taken into consideration will be if the market is expanding or is it shrinking, as the population grows demand for food products increase hence the market increases. The issue of how easy competitors can enter this market is very crucial with a better product at a subsidized price.

 Bank lending to Small businesses must have background information on the owner

The background information of the entrepreneur running the business is very key. Consider if he or she is a person of integrity because this will determine whether they will keep their word to their customers, which then results to loyalty from their customers. The length of experience he or she has should also be put into consideration, the longer the experience the more certain the success of the business and vice versa. If the business has a Board of Management – what are their composition. does it have a marketer, a financial expert, a human resource individual. These will be able to add value to the business other than a business where the spouses are the Board members just to meet a legal requirement. Take into consideration the business continuity in a case where the founder of the business dies.

The professional lender therefore must not only be able to read and understand complex business accounts and analyze ratios. Bank lending to small businesses must therefore employ competent resources to get it right.

loans for women

Whether she is a stay home mum (what is known normally as a house wife), a business woman or even a professional woman her impact is felt. In the recent years more of the governments in the developing countries have identified the potentials in the women and have sought to empower them economically by facilitating easy access to quick loans for women.

Women in the developing countries have had challenges with accessing the loans for women as they have no collateral to secure  these loans for women. The governments have discovered the benefits of lending to the women which include the following:

 Loans for women have improved standards of living

• Loans for women help women be able to generate reliable income which improves their standard of living and that of the entire family. Thy can comfortably afford the basic living necessity example food, clothing and shelter.

Loans for women lead to economic and political empowerment

• Loans for women enables women to be self reliant and therefore protect themselves from exploitation and abuse of any nature. In the developing countries women are prone to domestic violence and other abuses as they are not empowered economically.
•  women are enabled to expand their businesses and therefore create job opportunities. This will enhance the economic growth of the country as the level of unemployment rate is reduced.
• When women become successful in business they will be able to share the knowledge with their peers, enhance the economical growth of a country. In other words to empower one woman is to empower a whole generation.
• With the growth in the business, apart from the ability to afford the basics women need in life they can diversify in their investments and become key players in decision making in the country.
• Loans for women boosts womens self esteem and therefore the women are able to participate in decision making in key sectors in the country run for political offices. This enables them to fully participate especially in policy decisions made which greatly affect the women.

 Loans for women lead to better health for society

• The health of the family is directly related to the reliable income of the woman. They are able to access and afford the health facilities for themselves and even for the children who are prone to tropical diseases in the developing countries for example malaria and  polio.

Women the world over and especially in developing countries need a voice and this can only be achieved when they are empowered economically by making loans for women more accessible.

A credit card is a loan that is given by the bank but the monies are loaded to the card account and not a bank account. A credit card account is usually held in a credit card management system, which may be different from that of the core banking in kenya system.
Banks or Financial institutions subscribe to the owners of the  Credit card/s trademark. They are given the license to run the Credit card/s as per the association rules and regulations at set fees. Visa and MasterCard are examples of such associations. The associations facilitate the purchase and payments networks, so they work like clearing houses.

Credit cards may be chip or magnetic strip.

A chip card means that information of the account is held in a chip. A magnetic strip card is one where the information is held at the back of the card in a magnetic strip. As cards are migrated from magnetic to chip, the cards may have both features present in the plastic.

In some instatnces the credit cards are virtual cards meaning there is no physical card. These category of cards are maily used for internet and the details of the card account are what is availed to you.

Requirements for aplying  for a Credit card.

You can apply for a credit card by completing the application form. You will be required to furnish the bank with original documents that identify you, where you leave and sourse of income. Using the identification documents, the bank is able to chech on your credit worthiness. If the applicant has handled loans in a good way and makes timely repayments as required, then the credit worthiness is high, if on the other hand you have mishandled loans given to you, your credit score is low. When the credit score is low, the following actions may be taken against you by the Bank;

• you may be denied the credit card facility,
• Your application may be deferred until the score improves. Usually a time period is given for this,
• Your application may be processed but the limit advanced is very low,
• Finally, you may be asked to secure the credit card by placing a fixed deposit with the bank.

In conclusion, anyone can apply for a credit card but they have to show steady income that is due to them. It is easier for an employed person to access credit card facilities than a self employed person.

How do you access a quick Loan in Kenya or fast cash

For most people, who are banking in kenya there will be a need that must be met immediately. It is prudent to consider and plan for a rainy day such as this and where the funds are expected to come from and how to repay. Always have a back up source of quick funds. Majority of us who require quick funds or bailouts from time to time, even when we have carefully planned.

Family as a source of Quick Loan

The first cheap source of quick funds if the family unit or close friends. We must likely already have an open account with our relatives and close friends. The advantage of these funds is that they are more often than not interest free. The repayment period is negotiable and friendly. To maintain this source of funds, one must ensure that repayment is honoured and timely as agreed. It must be noted that sometimes, our relations’ and friends may not have fast cash to bail you out so we must explore plan B, C…..

Bank as a source of Quick Loan

You can approach the bank for a quick loan in Kenya. This is usually in the nature of a personal loan. You are required to fill out forms and give the necessary security. It is therefore advisable to approach your bank and not a new bank for such funds. The time factor in such cases is of essence, so when applying for such funds have all required documents and attachments ready and available. It usually takes about 48 hours. The applicant can have an over draft facility with the bank – these extra funds are at a higher interest.

Conclusion

The source of quick loan or fast cash that you select should be the one that meets your requirements best. The most important being:

• interest rate factor,
• the amount available and
• how fast it is availed.
• The flexibility of the repayment period could also be considered.

We all need a quick Loan  in Kenya now and then, so you should have your options ready and keep in touch with your sources to avoid surprises.