The loans which have a protection by an asset or collateral are named as secured loans. A purchased item, a house for example, is able to be used as collateral. The bank has the rights of this collateral until the repayment is made in full. Other kinds of personal property, like bonds, can be used to secure a loan. Those kind of loans are generally used to obtain quick money as the loan process is shortened through the guarantees made by the borrower. As the promises are made for highly valuable assets, lender is more likely to believe that borrower will do whatever he needs to keep it.

Secured loans do not have to be for purchasing purposes. They can be home equity loans, second mortgages or home equity lines of credit.

A kind of secured loans is debt consolidation loans which use a personal property as collateral. It reduces the number of payments, even to a single payment per month. As secured loans have lower interest rates compared to other kinds of loans, the borrower will save money. Those kind of loans has lower monthly payments most of the time. The loans in which there are no collateral involved are called unsecured loans and they demant higher interest rates as lender makes a riskier move giving such a loan. In a situation of rejection for an unsecured loan, you can have a secured loan.

SBA is helping small business owners to get loans from 1952. If you will apply for SBA loan, then you should visit your financial instution. There are many SBA loan types. For example, they have basic 7(a) loan program, certifies development company 504 loan program and microloan program for starting or expanding business. They have disaster loans or export, import and international trade loans. Veteran and military community loans are also available.

According to business.gov, The Official Business Link To The U.S Government, SBA loan application checklist is below;

1. SBA Loan Application Form
2. Personal Background
3. Personal Financial Statement
4. Projected Financial Statement
5. Business Financial Statement
6. Ownerships and Affilations
7. Business License
8. Loan Application History
9. Business Income Tax Returns
10. Personal Tax Returns
11. Resumes
12. Business Overview and History
13. Business Lease

Your lender institution will provide information about all the necessary documents to apply for SBA loan.

If you are starting a new business or if you have a business already and planing to expand it but there’s no money to invest on business. Small business loan options are right for you. There are many financial instutions giving commercial loans. You can use them for advertising, renovations, emergencies, expensions, capital expenditures, export or import whatever your need is.

Interest rates charged on small business loans ae generally at variable or fixed rates. With fixed rate loan, you know your monthly payments for the duration of the loan. With variable interest rates, interest rates fluctuate so your monthly payments change as interest rate changes.

Banks and financial instututions offer business loans. You should make a good research before obtaining it and read all the documents before signing the agreement. Be aware of the all the costs and penalties if you can’t repay on time, so that your investment project don’t turn into nightmere. Because there are significant compatition on commercial loans, compare the instutions before obtaining a loan will give you the different perspectives and with that comparison you can choose the loan with minimum cost.

There are spesific loan institutions, government or private, that targeting women business owners. One of them is Women-21.gov. According to them, today there are 6.2 million women owned firms empoying 9.2 million people and generating sales of 1.15 USD trillion. Like other institutions, women-21.gov is helping women business owners by promoting policies and removing obstacles in the business.

SBA is on the other hand, one of the most effective agency for small business loans for women.

WBCs, Women’s Business Centers have also grant opportunities for women entrepreneurs.

Aauw –American Association of University Women, with the slogan “Breaking through barriers for women and girls” have many resources for grant opportunities and scholarships.

As a woman enrepreneur, before obtaining small business traditional loan, we urge you to look up these government agencies and private fundings. You can find more advantageous loan types in these organizations. Do not forget to follow up grants.

There are some restrictions on consolidating a consolidation loan. For example, you can not consolidate the same loan twice. In order to consolidate an existing consolidation loan, you have to add non consolidated loan to consolidation loan. You can also consolidate two consolidation loans together. But, as mentioned, single loan cannot be consolidated.

 There are some facts about student loan consolidations. For example, you cannot consolidate your student loan before graduation. In addition, educational debt or consolidating a loan are not affecting your credit rating because educational debt is considered as future investment.

 Student loan consolidation and mortgage refinancing is similar. In other words, new loan pays off the existing loans. The deals or discounts that your existing loan have are not valid for your new consolidated loan.

 Private student loans cannot attach to Federal consolidation loan programs. Some lenders over internet offer private consolidation loans for those loans. However, this often results in an increase in interest rate. Moreover, Federal loans have some advantages and you can lose them.

 So, what are the reasons that lead to consolidation? If you are having trouble with your monthly payments you can think consolidation. It can reduce your payments.

If you are paying to too many lenders every month, you can consolidate your loans. Too many lenders cause too many problems and it is also hard to follow up these payments. If you have variable interest rates on your educational loans, you can take into consideration fixed interest rate direct consolidation loans. You can also extend your educational funding and pay over long term.

According to National Center for Education Statistics, in 2007 8,986,150 undergraduate students have attended 4-years schools. In 2016, it is expected to increase 10%. 60& of these students obtained a loan to fund their education. From 2000 to 2007, avarage debt for per student has rosen 18-20%. According to 2008 data, 86% of undergraduate students had at least one credit card. It was 55%-60% in 2004.

 According to The College Board, non federal private loans were 7% of total educational loans in 1997-98, but in 2005-06 it was 23-25%. Because of these private loan terms are not favorable in contrast to federal loans, it’s share stays the same.

Source: Finaid.org (data is from NPSAS 2003 – 04)

Source: National Center for Education Statistics (table 2)