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Unsecured Business Loans, Unsecured Loan Alternative for Businesses, business financing.#Business #financing


Unsecured Business Loans | Financing Solution

Unsecured business loans; Does your small business qualify?

Unlike business loans secured by collateral, unsecured business loans are approved based on credit rating and financial history. If your business suffers from poor credit and/or limited financial history you should consider a business cash advance as an alternative to an unsecured business loan.

Unsecured Loans For Small Businesses

In contrast to large companies that have equity in assets, small businesses with little assets and no property depend on loan options that are unsecured. In addition to missing collateral, most entrepreneurs that develop small businesses struggle in early stages creating a less than perfect financial history making approval for an unsecured business loan or line of credit unlikely. For this reason an unsecured business cash advance tends to be a more suitable option for small businesses.

Cash Advance as an Unsecured Business Loan Alternative

Business cash advances offer the following benefits not available through unsecured loans:

  • Flexible repayment options!
  • Unsecured, no collateral necessary!
  • Bad credit not an issue!

Our simple online application takes only a few minutes to complete, and we can approve your business for an unsecured cash advance in less than 24 hours.

Stop applying for unsecured business loans and get financing quickly!

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Behind every small business there is a business owner. We believe in business owners and we invest in their potential.

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The Business grants and funding available to UK small businesses, small business financing.#Small #business #financing


Government Grants

The government grants section has a wealth of articles and advice on how UK small businesses can get a grant from both the public and private sector, along with helpful guides on the different types of business grants and funding available to business owners starting and running a business.

A small business grants guide for 2017

Here, Peter Fleming takes a look at a range of options for funding your business through grants this year.

There are many European and UK-wide government business grant schemes; there are also local business funding schemes provided through Local Enterprise Partnerships (LEPs) or through local authorities and organisations such as the Chambers of Commerce. However there were 512 registered schemes at the last count! So a good place to start your research is on the government website.

Business grants are available at a local and national level and usually sector specific. They offer between £1,000 and £100,000 for SMEs, but funds can be unlimited for larger businesses within EU state aid programmes.

With grants you don’t pay the money back. However, it’s worth noting there will be clawback terms if you falsify claims in respect to expected outputs set by the grant scheme. Therefore, ensure your application is captivating and thorough as it will go through a due diligence process.

Normally there are two stages, submitting an Expression of Interest (EOI) to ensure your business and grant application meets the scope of the grant call and then a full application process whereby you will need to supply, market research, a business plan and at least 1-3 years of financial forecasts.

Throughout the process, you will need to justify there is additionality i.e. not just the reason why you need funding, but by obtaining a grant, how many new jobs you will create, if you’re opening up new markets or export opportunities or that your idea could be a game changer.

It is always worth getting a second opinion regarding the feasibility and strength of your application against the grant objectives and any regional strategic economic plan. Therefore speak to your accountant, a local business adviser or the Growth Hub.

The larger grant opportunities can be competitive and therefore be a long-drawn-out process, taking several months in some cases to receive just an offer. So if you are looking for subsidies and money quickly a grant may not be the right solution for your business.

It is also worth noting if your application is successful, grant moneys are not paid upfront but claimed normally at the back end of the project or even after any intervention is completed.

Therefore you will need to use your own cash reserves and any other funding prior to drawing down the grant money. I have even known businesses take out bridging loans till they have received their grant funds.

Some key areas of your business whereby you could access business advice or a grant;

Business advice and support, whether you are pre-start, a new start or an established business, there are regional Business Growth Hubs across the UK whereby you can obtain free or funded advice. You can normally obtain specialist support to devise a business growth strategy, do market research to create a sales and marketing plan, implement social media management or even get advice on how to apply for further funding.

Note each UK region may have a focus on specific business sectors, business sizes and locations, as eligibility can be even post code specific.

Skills and development government grants

The Skills Funding Agency oversees the current apprenticeship scheme, however on May 1st 2017 the new Apprenticeship Levy scheme starts whereby your business could access subsidised training and development to upskill existing employees to even Master’s degree level.

Many regional Universities, Colleges and further education organisations will be offering a multitude of subsidised short courses or funded degree level programmes which will help you develop your existing staff to be the managers and directors of the future.

If your business is within a rural development area and looking to grow, invest in infrastructure, machinery or seek specialist advice to diversify. Or if your business is involved with forestry and land projects the government have a scheme called LEADER managed through Local Action Groups.

The Carbon Trust Green Business Fund is a new energy efficiency support service for small and medium-sized companies in England, Scotland and Wales.

It provides direct funded support through energy assessments, training workshops, equipment procurement support and up to £10,000 capital contribution towards the purchase of energy saving equipment.

Manufacturing is an area which is increasingly supported through grant schemes. Therefore if you manufacture textiles, specialist tooling, operate in the digital market, within the nuclear supply chain or need support for international trade, or manufacture in many other sectors, there is likely to be a grant scheme that your business can access.

Innovation, Research and Development

Innovate UK, offers support and funding to help businesses develop new products and services and bring them closer to market, this may be to bring people together to share ideas, tackle challenges and make new technological advances.

They targets technologies and areas with the greatest scope to improve business, the economy and society.

Local Enterprise Partnership

For anyone looking for grants at the moment, the go-to people will be their Local Enterprise Partnership (LEP). One of the main functions of the LEPS is to generate economic growth and so many have their own grants programmes.

In addition, most provide some form of business support and advice. As part of the business advice service they collate information on local and national grants and will signpost business owners to the relevant organisations.

Another great source of information is the government ‘Business is Great’ website which has a page dedicated to a number of funds to support innovation.

There is also is an EU tool which does a better job than anything I’ve seen of clarifying what finance is available across the EU including although is does require some persistence in searching to get to the information.

For companies and individuals with ground breaking research which may require significant funding there is also Horizon 2020:

Grant funding is not for everyone but could give your business the boost it needs. Proper preparation, thorough research, getting professional advice and being able to clearly explain why you require your grant funding is more likely to lead to a successful application. And, as a result, help you obtain the financial support for a better, bigger and more profitable business for you.


Quick – Easy Short Term Business Loans – Small Business Financing, small business financing.#Small #business #financing


” For access to hassle-free unsecured business loans, get the ZipLoans team to help you! “

Small business financing

Hi, my name is John Detlefs and my team at Ziploans has vast experience helping small business access the finance they need in a fast, easy and friendly way.

Whether you’re looking to manage cashflow or seize an opportunity to grow, our friendly service makes accessing finance so simple you get to focus on running your business, rather than worrying about paying the bills.

John Detlefs – CEO

Zip Loans Pty Ltd

Small business financing

Paid for our marketing campaign! ★★★★★

A boutique marketing agency in Melbourne required funds to cover working capital, while they conducted marketing to grow their customer base. The agency specialises in digital marketing and website development for small businesses and used the $5,000 to undertake an Adwords campaign, growing revenue by $20,000 per month as a result.

Small business financing

Purchased equipment for expanding gym! ★★★★★

A gym in a Brisbane shopping centre needed new equipment to cope with increasing demand. New memberships were slowing down as people couldn’t access equipment quickly when they came in for a session. The owners also wanted to undertake some marketing in the shopping centre to attract new members once the new equipment was installed. They borrowed $35,000 and purchased new equipment, using the ATO asset tax write off to claim an instant $20k tax deduction.

Small business financing

How A ZipLoans Unsecured Short Term Business Loan Works !

1. Apply Online Or Phone

Apply online, or have a chat with one of our friendly staff! Regardless of which you choose the application process should take around 10-15 minutes to complete.

2. Quick Approval Process

Once we have all of your details, in most cases it won’t take more than a couple of hours to get approved. Either way, our staff keep you updated throughout the process.

3. Money In Your Account!

Once you’ve been approved, we can have the money in your account in as little as 1 business day. Now it’s time for you to get busy expanding your business with small business financing!

(free to apply , no obligation to proceed)

Covered up-front costs for major contract. ★★★★

A plumbing and drainage business secured a new contract and needed $40,000 to purchase materials upfront and pay wages for extra sub-contractors. The contract payments were staged, with 60 day terms so it was vital to be able to secure peace of mind with a working capital injection. The loan was paid off over 6 months and the contract was successfully completed, with peace of mind that subbies would get their wages on time every Friday.

Small business financing

Installed professional catering kitchen! ★★★★★

A café in WA opened a second location across the road from their first very successful one, but the new kitchen facilities were not up to scratch. The owners had to cook for both locations in the original kitchen and run food across the road when it was ready. They requested $20,000 so they could build a new kitchen and have not looked back, with both cafes going gangbusters.

Small business financing

Frequently Asked Questions

How is the ZipLoans Unsecured Short Term Business Loan different from a traditional business loan?

You can apply for the ZipLoans Unsecured Business Loan and small business financing in under ten minutes and receive a fast response – often as little as one hour. Application is 100% online and funds can usually be provided the same business day. Traditional short term business loans reference an interest rate per annum plus other fees and charges. The ZipLoans Short Term Business Loan details the total amount payable upfront inclusive of any interest, fees or charges. This total is then broken down into either a daily, weekly or fortnightly repayment amount.

What is an unsecured loan?

We understand many small business owners don’t own property or don’t want to put their family home on the line to get a loan or small business financing for their business. Our loan does not require asset security – all we need are Directors’ Guarantees to get your small business financing.

How fast will I get the money?

We know growing your business with small business financing is important, so ZipLoans will work hard to get money to you as soon as possible. If you apply before 4pm on a business day and you application is approved, we can usually have money in your account the same or next business day.

How do you charge for a ZipLoans Unsecured Short Term Business Loan?

ZipLoans doesn’t charge interest because terms are usually less than 12 months. Instead we offer a factor rate. A factor rate is expressed as a decimal figure not a percent. The factor rate offered is based on your industry, how long you’ve been in business, the health of your cash flow, and other factors. When a factor rate is used, interest is charged to the principal once – when the loan is originated – it doesn’t compound, when you need small business financing.

What can the ZipLoans Business Loan be used for?

We’re totally committed to helping small businesses access the funds they need to grow. Our unsecured short term business loans can be used for any business purpose, for example business renovations, marketing, purchasing inventory, new equipment, to manage cash flow, and much more you can do with small business financing.

Tell me about the ZipLoans Unsecured Business Loan?

We offer an unsecured loan or small business financing of between $5,000 to $250,000. The term of the loan is between three and twelve months. The repayments are cash flow friendly: either daily, weekly or fortnightly.

How do I apply?

We’ve made it easy and fast to get small business financing. Simply click the “Get Started” button and complete our online form. All you need to have ready is your driver’s licence number and your business ABN. You can choose to allow us to use an advanced bank verification system link to instantly verify your bank information online, in which case – have your main trading bank account details handy. Alternatively, you can choose to upload PDF versions of your most recent 3 months of bank statements.

How fast will I get a response?

We can often provide a response in one hour – if you apply during standard business hours and allow us to use our advanced bank verification system link to instantly verify your bank information online. If you choose to upload copies of your bank statements manually, it takes a little longer – we can provide a decision in as little as one business day on your small business financing.

How much can I borrow?

The total amount of your loan will depend on the specific circumstances of your business. We look at a variety of factors to determine the health of your business and based on this information, ZipLoans may be able to provide you a loan amount up to $250,000.

What are the fees?

We know fees can be confusing so we made it simple and transparent – there are no hidden fees and the amount due from day one includes the establishment fee. There are no additional fees (excluding any late payment or default fees) and no penalties for early repayment.

What happens if I want to repay early?

There are no fees for early repayment and no balloon payment at the end of your loan. In fact, we may give you a rebate on the total interest remaining. We’re totally transparent with our customers about the total amount due and the date of the final payment. Once you make the final payment your balance will be $0.


Business Loans – Financing, Small Business Finance – Funding – Business Finance, home financing.#Home #financing


Small Business Loans – Over 4,000 Sources

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Find the Perfect Small Business Loan

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Get a list of funding sources and service providers that match your needs, FREE!

Cash lending, Small Business funding, Receivables factoring, Equipment leasing,

Real Estate financing and more.

Start your search today!

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Alliance Financing Group Ltd, home financing.#Home #financing


Welcome to Alliance Financing Group

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for Equipment and

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More Information

Learn more about Alliance and how we can fuel the growth of your business.

Our mission is To be the premier one stop comprehensive commercial finance company of choice to small and mid-size businesses .

What We Can Do For You

Alliance provides financing solutions to fuel the growth of your business.

Our core product line includes:

$2,500 $10,000,000 with terms from 24 months to 84 months, for most types

of equipment and machinery.

Working Capital / Corporate Finance

Financial products and services for companies that require working capital for expansion, operations or re-financing.

Please call us at any time regarding our products and services.

Toll Free: 1-877-660-3660

Or email us at [email protected] to have a representative contact you.

Privacy Policy Internet Security | Legal | 2013 Copyright Alliance Financing Group Ltd. All rights reserved.


Business Loans – Financing, Small Business Finance – Funding – Business Finance, business financing.#Business #financing


Small Business Loans – Over 4,000 Sources

Business financing

Business financing

Find the Perfect Small Business Loan

Business financing

Get a list of funding sources and service providers that match your needs, FREE!

Cash lending, Small Business funding, Receivables factoring, Equipment leasing,

Real Estate financing and more.

Start your search today!

Business financing

Business financing

Business financing

Business financing

Business financing

Business financing

Business financing

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Business Loans: Assessing Your Collateral

Every small business will need an infusion of cash at some point. When the need arises, a

The 3 Blessings of Bootstrapping

Venture capital is a buzz phrase these days among entrepreneurs. Yo.

Is Retail Financing Right for Your Business?

For companies whose products have a high sticker value, being able to offer customers multiple payment options is essential. Accepting cr.

Using a 504 Loan for a Commercial Loan

When your business is ready to purchase a property or building, one great option for financing is to use a Small Business Administration .

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Every small business owner looks forward to the day his or her company takes off and has more demand than supply. You might need to pay f.

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Small Business Law, small business financing.#Small #business #financing


Small Business Law

Starting and running a small business requires a very broad skill set and nerves of steel. It’s not for everyone, and even successful entrepreneurs encounter failure from time to time. In order to help you stay ahead of the curve, FindLaw’s Small Business Law section covers everything from obtaining financing and hiring employees, to choosing the right insurance policies and filing taxes. Those who operate small businesses typically wear many different hats, but also must know when and how to seek help from others.

What Makes a Business a “Small” Business?

A small business owner may operate a convenience store, a plumbing service, a salon, a fast food franchise, or virtually any type of business in a given field. While there is no clear definition, small businesses share some common characteristics. They are independently owned and operated, organized for profit, and are not dominant in their field, as defined by the U.S. Small Business Administration (SBA).

The vast majority of businesses in the U.S. are considered small businesses, which employ roughly half of all workers in the country.

What Legal Issues Do Small Business Owners Typically Encounter?

All businesses will encounter certain legal matters, such as questions about taxes or drafting contracts. But a small business owner’s legal obligations and risks generally depend on the type of industry, business model, inherent risks involved, state laws, and a host of other considerations he or she faces. It’s always best to consult an attorney before opening up shop, but anyone starting a small business will likely be confronted one or more of the following legal issues:

  • Choosing a legal structure (such as a partnership, limited liability company, or corporation);
  • Hiring and managing employees in accordance with state and federal employment laws;
  • Protecting inventions and trademarks through intellectual property law;
  • Extending credit and collecting on past due amounts in accordance with federal laws;
  • Complying with health and safety regulations when constructing or preparing a work site;
  • Maintaining the required level of workers’ compensation insurance coverage.

How Can an Attorney Help My Small Business?

While small business owners act in a number of capacities, the successful entrepreneur knows when to ask for help. This is especially true of legal matters, which can sink a business if handled poorly or ignored altogether. Certain things can sometimes be done without a lawyer, such as creating a legal partnership agreement, submitting necessary tax forms, and drafting contracts with partners.

But some issues are too time-consuming, too complex, or too high-stakes to handle without the care and expertise of a business lawyer. These include defending against wrongful termination claims by former employees, making a “special allocation” of profits and losses, or negotiating for the acquisition of another company’s assets. Again, your legal needs will be unique to your business.

And while seeking counsel for complex legal issues is smart, retaining an attorney to help prevent legal problems from occurring in the first place may be even smarter.

Small business financing


Business Loans – Financing, Small Business Finance – Funding – Business Finance, small business financing.#Small #business #financing


Small Business Loans – Over 4,000 Sources

Small business financing

Small business financing

Find the Perfect Small Business Loan

Small business financing

Get a list of funding sources and service providers that match your needs, FREE!

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Start your search today!

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Small business financing

Small business financing

Small business financing

Small business financing

Small business financing

Small business financing

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You’ve hit a wall in your business growth. You need more working capital. A

Business Loans: Assessing Your Collateral

Every small business will need an infusion of cash at some point. When the need arises, a

The 3 Blessings of Bootstrapping

Venture capital is a buzz phrase these days among entrepreneurs. Yo.

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For companies whose products have a high sticker value, being able to offer customers multiple payment options is essential. Accepting cr.

Using a 504 Loan for a Commercial Loan

When your business is ready to purchase a property or building, one great option for financing is to use a Small Business Administration .

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Home Financing Options – How to Finance a Home Purchase #boat #loans


#home financing
#

Home Financing Options

By Brandon Cornett | 2015, all rights reserved | Duplication prohibited

to see how much you can afford.

This article explains the financing options that are available to a first-time home buyer. We will talk about the different ways to finance a home, the pros and cons of each method, and other important topics for buyers.

Home Financing Defined

Within the context of this article, home financing refers to the mortgage loans people use to buy a house. This is one of the most important topics a first-time buyer must understand. It’s also where a lot of people make big mistakes, by choosing the wrong kind of loan for their situation.

With that basic definition out of the way, let’s talk about the different types of loans you can use to finance your home purchase.

Different Ways to Finance a Home

Understanding your home financing options is the first step to making a smart choice. So before we go any further, we need to talk about the different kinds of mortgage loans that are available to you. These days, most home loans fall into one of two categories. They are either fixed- or adjustable-rate mortgages. The primary difference between them has to do with the interest rate, and how it behaves over time.

With a fixed-rate mortgage loan, the interest rate you have at the beginning of the loan is the same rate you’ll have at the end of the loan (when you either sell the house, refinance the mortgage, or pay the loan off entirely). This is the primary benefit of this financing option — there are no surprises later on down the road. The initial rate you obtain follows you for the entire life or term of the loan.

Here are some related articles to help you learn more about this topic:

As the name implies, an adjustable-rate mortgage loan (ARM) works much differently. With this home financing strategy, the rate will change at a specific interval — usually every one to five years. When used properly, an ARM loan can save you money in the short-term. When used incorrectly, they can bring a lot of risk into the equation. Adjustable mortgages are rarely a smart option if you plan to stay in the home for a long time. In that kind of long-term scenario, a fixed rate loan is a better financing option for you.

Most of the adjustable mortgages in use today start off with a fixed rate for a certain period of time. After that introductory stage, however, the rate will begin to adjust or reset at specific intervals. Because of this, they are also referred to as hybrid loans. A person who only plans to live in a home for a few years might use an ARM loan to save money in the short-term. But once you get past the fixed stage of the loan, you have no idea what the rate will do (aside from changing in some way). If the rate adjusts upward by several percentage points, it could significantly increase the size of your monthly payment.

Remember, the interest rate is part of your overall mortgage payment. So when it goes up, your payment goes up as well. Depending on how much the payment increases, this could make the loan unaffordable for you. This is a very real risk that comes with this particular home financing option, so it’s a risk you need to take seriously.

If you think you might use an ARM loan to finance your home purchase, you have plenty of homework ahead of you. Here are some related articles to get you started:

Many first-time home buyers use FHA home loans as a financing option, and there are several key reasons for this. For one thing, a home buyer who uses an FHA loan can make a smaller down payment (when compared to someone who uses a conventional loan). Generally speaking, FHA mortgages are easier to qualify for, as well. This makes them popular among people with less-than-perfect credit. These two factors combined to make the FHA loan one of the most popular home financing options for first-time buyers.

If you want to finance your house with this type of loan (or simply learn more about it), you’ll find the following articles helpful:

Choosing the Best Option

These are some of the different ways you can finance a home purchase. So which option is right for you? In reality, there is no way I can answer this question for you, because I simply don’t know your situation. Depending on (A) your long-term plans, (B) your financial situation, and (C) your level of qualification, one financing option may be better than another. What you must do, as a home buyer, is learn about the pros and cons of each strategy. Once you do that, one option should emerge as the obvious choice for you.

For example, we talked about the primary differences between fixed and adjustable-rate mortgage loans. If you plan to stay in the home for many years, the fixed-rate loan is probably the best option for you. This method of home financing gives you the most predictability over the long term. No matter what happens with the economy, you’ll know that your interest rate will always stay the same. On the contrary, the interest rate on an ARM loan will change periodically. So it might not be the best finance strategy for a long-term stay. This is a prime example of choosing the best type of mortgage based on your particular situation .

This is obviously a top-level guide to home financing options, and that was my purpose. I wanted to give you a brief overview of the various ways to finance a home, and then provide you with some links to related information. I’ve hand-picked a few articles that will make a good follow-up to this one, and I highly recommend you read those as well. You can find these articles through the hyperlinks spread throughout this lesson.

I hope you’ve found this guide to home financing options helpful, and I wish you well in your future real estate endeavors.


Financing Your Collector Car #pioneer #loans


#classic car loans
#

Lenders are making it easier than ever to get behind the wheel of your dream machine

Contrary to what members of the general public must think, most enthusiasts don’t build their collections by cruising the big-dollar auctions in search of only the most perfect and desirable cars, throwing greenbacks around in front of the television cameras. No, the majority of us just don’t have that kind of a budget for our hobby, if we have a budget at all. With our modest disposable income, we buy restoration candidates rather than finished cars–sometimes because we get great satisfaction out of the work, but other times because there’s no other financially feasible way in. Or we may learn to love that rusty six-cylinder, four-door sedan, though we lust in our hearts for the pristine V-8-powered convertible that lies far beyond the reach of our savings accounts.

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For most of the history of the collector-car hobby, that’s the way it’s been: Your choices have pretty much been shaped by the diameter of the bankroll in your pocket. But a growing number of collectors are turning to a new alternative, signing on the dotted line for loans of anywhere from five to 12 years to get into the driver’s seat of their dream cars right now. Over the past several years, a number of lenders have begun offering specialized collector-car financing, catering to the needs and interests of collector-car fans. You supply the good credit rating and your John Hancock, and they’ll do the rest.

“Americans like to leverage their credit,” said Mark Schechter, vice president of Woodside Credit of Newport Beach, California, which advertises itself as the fastest-growing collector-car lender in the U.S. “There are far more people who can enjoy the hobby with attractive financing. It’s fun to support the hobby. We’ve seen it grow tremendously.” Since the company began offering loans in the summer of 2003, “it’s been good. We’ve grown tremendously year after year,” Schechter said.

So, who’s doing the borrowing? The younger generation of car enthusiasts, apparently. “For older collectors, it was a cash hobby. They believe that if you can’t pay cash for something, you shouldn’t be in it,” said McKeel Hagerty, chief executive of Hagerty Classic Insurance of Traverse City, Michigan, which partnered with Woodside in July 2005, to offer financing to its customers. “People in their 30s and 40s are more comfortable making payments for everything, frankly. There seems to be a psychological difference.” Hagerty knows that at least 10 percent of the 500,000 vehicles his company currently insures are financed. “We know that it could be as high as 20 percent, and our guess is that the world is sort of changing.”

Companies like Hagerty and Woodside were reacting not only to this perceived shift in the attitudes of the nation’s estimated 3 million to 4 million classic car fans, but to the general unavailability of loans for collector cars, as well. Generally, in the eyes of traditional lending institutions, cars are things that depreciate as they get older, which means that the older the car, the shorter the term and the higher the interest. In fact, many flatly refuse to consider loaning money for the purchase of any car more than eight or 10 years old. “If you call your local bank and say, ‘I want to finance a 1932 Chevy,’ they’re not going to have any idea of what it’s worth, so they’re probably going to say no,” said Mark Hyman, whose collector-car dealership, Hyman Ltd. Classic Cars of St. Louis, Missouri, sells about 300 cars a year. “Most local banks aren’t prepared to loan against vintage vehicles.” The exception seems to be the small, local bank that knows its customer well, and will consider making the loan on the customer’s ability to pay, rather than the market value of the car.

Because banks so often say no, collectors who have needed to finance their purchases have generally turned to that great, gushing money fountain known as the home equity loan. Consumers have tapped the paper appreciation of their homes’ values to pay for everything from plasma TVs to laser eye surgery, so why not the occasional De Soto or Thunderbird? “Initially, business was quite slow,” Hagerty said. “We’re all fighting against the almost free money that everybody’s been given in the form of equity in their homes over the past few years. As interest rates have started fluctuating back up and getting more, shall we say, sober, we feel that the time is right for this (collector car) product moving forward.”

Home equity loans can offer attractive interest rates, as well as the benefit of tax-deductible interest. There are drawbacks, too. Using a home equity loan to buy a car ties up funds that might otherwise be used for a kitchen remodeling or other project that would add value back into the home. Then there’s the wisdom of using your greatest asset, your home, as collateral for your hobby. Default on a car loan, and the car is at risk; default on your home equity loan, and things get more serious. And home equity loans are often at a variable rate, compared to the fixed rate, simple interest loans that classic car lenders offer.

The kinds of cars these companies are writing paper for might surprise you. Though all offer loans of a half-million dollars or more, the average loan is solidly in five-figure territory. Hagerty estimated that most of his company’s loans are in the $30,000-$100,000 range; Albert Maranda, finance manager of J.J. Best Banc Co. of New Bedford, Massachusetts, one of the country’s leading classic lenders, puts the average amount at $20,000. In fact, J.J. Best and Classic Car Financial of Bedford, New Hampshire, will be happy to make loans of as little as $6,000, while Capital One Auto Finance of Plano, Texas, sets its minimum loan at $7,500. For Hagerty and Woodside, the minimum loan is $10,000.

Lenders are comfortable offering generously long terms, up to 12 years in the case of Woodside, Hagerty and J.J. Best. Why? Because, generally speaking, these companies know that collector cars increase in value over time, reducing the risk in lending. “A $50,000 loan with Woodside is $600 per month, because of the long term,” Schechter said. He noted that Woodside’s founder, Roger Kirwan, pioneered this type of loan in 1980, helping customers buy recreational vehicles with loans of up to 25 years. The extended terms don’t mean that borrowers are keeping their cars 12 years; because there’s no prepayment penalty, borrowers can sell their cars at any time and pay off the loan. Naturally, rates tend to vary from lender to lender. We heard quotes of 7 percent to 9.7 percent, depending on the health of the applicant’s credit, so it may pay to call around. Required down payments vary, too, from zero to 20 percent. Loans are made on a simple interest basis, so borrowers pay interest only on the outstanding amount, calculated each month. For a $25,000 loan at 8.2 percent interest over five years, for instance, the monthly payment works out to $510.33.

One thing you will find does not vary is the lenders’ insistence that all financed cars be titled and fully insured. In fact, J.J. Best’s Maranda noted that most repossessions occur not because the borrower has fallen behind in the payments, but because the owner hoped to avoid sales tax, and failed to have the car titled. Lenders need to be recorded as lien holders on the titles to protect their investments.

Most lenders will want to have a look at the car, at least to be certain that its VIN matches its title. J.J. Best employs a nationwide company whose inspectors verify each VIN, take photos, and even start and run the car. Woodside, which works primarily through collector-car dealers, expects them to vouch for the cars they’re selling. Buyers may be asked to have the car appraised, if its value deviates too much from the norm, but the cost of the appraisal can generally be built into the loan.

One caution: If you’re calling to ask for a loan to buy that decrepit Duesenberg your aged neighbor has finally agreed to sell, you may hear crickets chirping on the other end of the line. Neither Woodside nor Hagerty offers loans for restoration projects, although Hagerty is considering entering that business. J.J. Best will consider financing a project, with a number of caveats. “When it comes to something like that, credit is very important to us,” Maranda said. No one wants to see a project stall halfway through; “It’s very hard to repossess pieces,” he said. There are alternative ways to finance a project, though; for example, short-term, interest-only loans can cover until the car is completed, at which time they can be paid off through a collector-car loan.

Nor is every car eligible for financing. Take a late-model Corvette, for instance. If every driver in the house has his or her own car, and the Corvette is only to be used for pleasure driving, it’s likely to qualify. But if it’s the only vehicle in the household, or will be in use as a daily driver, the answer is going to be no.

There’s never been a better time to be involved in the classic-car hobby, and ownership of an older, interesting car has never been easier. Collector-car financing is yet another entry point into this wonderful hobby of ours. Only you know if it’s the right doorway for you.

J.J. Best Banc Co.

60 North Water Street

New Bedford, Massachusetts 02740

800-872-1965

Hagerty Finance

141 River’s Edge Drive, #200