Tuesday, July 24, 2018
Benefits of Getting a Microloan
A business credit-building and corporate financing professional based in Saddle Brook, New Jersey, Edward Espinal leads Cash Flow Partners as CEO and founder. Through his business, Edward Espinal works with small and large companies to help them secure funding through business loans and microloans.
As the name suggests, microloans provide businesses with a small amount of funding. Although these loans are available to businesses who need up to $50,000 in funding, the average microloan is made in the amount of $13,000.
Getting a microloan can be hugely beneficial to companies. Typically, microloan lenders look at multiple factors when determining whether to approve a loan or not, such as collateral or a personal guarantee. These additional factors add more flexibility to the terms of a microloan, thus making it easier for companies to get than a traditional business loan. Since these loans are easier to get, they help companies improve and build their credit scores and business history so they have a greater chance of being approved for a traditional loan in the future.
Microloans also help new business owners develop their business knowledge. Most lenders require that borrowers complete business and technical training before they receive a microloan. This training helps founders avoid common startup mistakes and pay back their loan easier.
Once the training is completed, the microloans may come through in as little as two weeks. This is significantly faster compared to traditional loans that can take months to fund.
Saturday, July 7, 2018
Credit Scores and Average Age of Accounts
As the founder and CEO of Cash Flow Partners in New York City, Edward Espinal leads a company that helps raise capital for entrepreneurs, small business owners, and large companies. Under the direction of Edward Espinal, the finance experts at Cash Flow Partners also provide credit repair, credit score analysis, and credit evaluation services.
As modern society trends increasingly toward a cashless economy, credit cards have become ubiquitous. However, credit cards can also be dangerous for those with poor spending habits, which is why some experts recommend that people with debt or credit issues close their credit cards. In some cases, though, closing a credit card can actually hurt an individual’s credit score.
One reason for this is that credit bureaus factor in the “average age of accounts” when calculating a score, rewarding individuals with a long history of credit with a higher score. To figure out the average age of accounts, simply add up the total length of time each credit card has been open and divide by the total number of cards.
For example, a person with two credit cards, one open for 10 years and one open for 2 years, would have an average age of accounts of 6 years (12/2). However, if an individual closes his or her oldest credit card account -- in this example the card open for 10 years -- this would lower the average age of credit accounts, in this case to just 2 years. Because a lower average age of accounts can hurt a credit score, experts recommend that, in most cases, individuals who want to maintain high credit scores keep their oldest credit cards open and pay off the balance.
As modern society trends increasingly toward a cashless economy, credit cards have become ubiquitous. However, credit cards can also be dangerous for those with poor spending habits, which is why some experts recommend that people with debt or credit issues close their credit cards. In some cases, though, closing a credit card can actually hurt an individual’s credit score.
One reason for this is that credit bureaus factor in the “average age of accounts” when calculating a score, rewarding individuals with a long history of credit with a higher score. To figure out the average age of accounts, simply add up the total length of time each credit card has been open and divide by the total number of cards.
For example, a person with two credit cards, one open for 10 years and one open for 2 years, would have an average age of accounts of 6 years (12/2). However, if an individual closes his or her oldest credit card account -- in this example the card open for 10 years -- this would lower the average age of credit accounts, in this case to just 2 years. Because a lower average age of accounts can hurt a credit score, experts recommend that, in most cases, individuals who want to maintain high credit scores keep their oldest credit cards open and pay off the balance.
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