Can I Get a Home Removals Loan? FAQs

Here are the answers to some commonly-asked questions about loans for the costs of home removals.Are there loans for home removals services?Yes.You may be able to obtain one from your bank, although banks aren’t quite as free-thinking with their lending as they once were.Alternatively, some professional removals companies, may be able to offer such assistance too.Am I guaranteed a loan?No.No lender anywhere will guarantee to offer a loan in advance. They always make their publicity “subject to status”. What that means is that they’ll want to look at your income and credit history before deciding whether or not to advance a loan.This is perfectly normal practice and you’re not being singled out. If you think about it, would you lend money to a stranger if you knew nothing about them, their reason for asking for the money and whether or not you’d stand a fair chance of getting it back?

Can I get a loan if I have a poor credit history?Very possibly yes.It depends upon the exact nature and severity of your credit history difficulties in the past. It’s been estimated that about 80% of us have some minor blemish on our credit history files (e.g. an accidentally overlooked credit card repayment one month) and typically, lenders see those as nothing.Some problems can be far more severe including being sued for loan defaults and so on.If you have some moderate problems on your files, they won’t be a showstopper, though the lenders may increase their interest rate a little to reflect the extra risk they’re taking.Why do lenders ask for receipts?If you’re getting your finance through a removals company, that probably won’t be needed. The lenders might typically send the agreed sum directly to the removals company.If you’re applying to other sources, the lenders may (though not always) wish to see evidence of the quotation in order to check that it’s reasonable. They might also ask to settle the sum directly themselves. In other cases, they may issue the loan to you but ask you to show evidence that you’ve used it for the purposes intended.This is all normal and should not be cause for concern. It’s largely to do with the lenders either trying to reduce the risks of payment default due to you spending the money on other things (e.g. gambling) or to avoid loan fraud.How do I know that I’m getting a fair interest rate?

Only by shopping around and doing some online research.How long can I borrow the money for?That’s a matter for you and the lender to discuss.Most lenders will accept repayment over a few years if the sums are larger. Do remember though that the longer the repayment period, the more the loan will typically cost you in interest payments over time.Could I pay for removals services by credit card?Yes, assuming that the company concerned accepts them.It’s worth keeping in mind that borrowing money on credit card is typically one of the most expensive ways to use what is in effect a loan (assuming you don’t repay the loan in one go before the month end or pay it off very quickly).Compare it to the costs of a purpose-specific loan from another company.

Are Inventory Financing Lenders and P O Factoring Solutions Your Best Business Financing Bet?

Your worst business nightmare has just come true – you got the order and contract! Now what though? How can Canadian business survive financing adversity when your firm is unable to traditionally finance large new orders and ongoing growth?

The answer is P O factoring and the ability to access inventory financing lenders when you need them! Let’s look at real world examples of how our clients achieve business financing success, getting the type of financing need to acquire new orders and the products to fulfill them.

Here’s your best solution – call your banker and let him know you need immediate bulge financing that quadruples your current financing requirements, because you have to satisfy new large orders. Ok… we’ll give you time to pick yourself up off the chair and stop laughing.

Seriously though…we all know that the majority of small and medium sized corporations in Canada can’t access the business credit they need to solve the dilemma of acquiring and financing inventory to fulfill customer demand.

So is all lost – definitely not. You can access purchase order financing through independent finance firms in Canada – you just need to get some assistance in navigating the minefield of whom, how, where, and when.

Large new orders challenge your ability to satisfy them based on how your company is financed. That’s why P O factoring is a probably solution. It’s a transaction solution that can be one time or ongoing, allowing you to finance purchase orders for large or sudden sales opportunities. Funds are used to finance the cost of buying or manufacturing inventory until you can generate product and invoice your clients.

Are inventory financing lenders the perfect solution for every firm. No financing ever is, but more often than not it will get you the cash flow and working capital you need.

P O factoring is a very stand alone and defined process. Let’s examine how it works and how you can take advantage of it.

The key aspects of such a financing are a clean defined purchase order from your customer who must be a credit worthy type customer. P O Factoring can be done with your Canadian customers, U.S. customers, or foreign customers.

PO financing has your supplier being paid in advance for the product you need. The inventory and receivable that comes out of that transaction are collateralized by the finance firm. When your invoice is generated the invoice is financed, thereby clearing the transaction. So you have essentially had your inventory paid for, billed your product, and when your customer pays, the transaction is closed.

P O factoring and inventory financing in Canada is a more expensive form of financing. You need to demonstrate that you have solid gross margins that will absorb an additional 2-3% per month of financing cost. If your cost structure allows you to do that and you have good marketable product and good orders you’re a perfect candidate for p o factoring from inventory financing lenders in Canada.

Don’t want to navigate that maze by yourself? Speak to a trusted, credible and experienced Canadian business financing advisor who can ensure you maximize the benefits of this growing and more popular business credit financing model.