When you haven’t got a ton of money saved there are some finance options that can help you out. Whether you’re looking to finance a new car, a new business or simply to help out with personal costs, there will surely be something suitable for you. Here are some of the most popular forms of finance people tend to use.
Car finance to get you on the road
If you don’t have a car and you need one to get to work or for general day-to-day duties, you can find a car loan in the UK and many other car finance options. Hire purchase (HP) car finance is one of the most popular ways to finance a car and pay it off, plus interest, gradually every month. You will end up owning the car at the end of your agreement too.
It isn’t always easy to buy a car outright, especially if you don’t have much money to pay upfront. Using finance can offer you a better car, with a higher specification than you would get if you bought it with cash. If you want to own the car outright after paying the finance back, you should go for hire purchase car finance. You can keep the keys when your agreement has been completely paid off.
Some forms of car finance will not enable you to keep the car after you have finished paying off the finance. If you decide to use personal contract purchase (PCP) finance, you will likely be asked to return the car or given the option of a lump sum or balloon payment to purchase it at the end of your contract.
Car leasing is another option available to those looking to use finance, you will basically be renting the car for a set amount of time from a dealer. When this time is up you will return the car or pay extra to keep it. It is worth double-checking all the terms and conditions when it comes to car finance, this way you will know exactly what you are getting, and no unexpected costs will creep up on you.
Overdrafts and personal loans
There are some points in life where you might need a personal loan or the use of an overdraft. If you need this extra finance you can apply for it, usually from your bank. If you would like an overdraft, it is recommended you cap the amount you can use so you don’t go over your limit and get charged. Always check the service and interest rates associated with any overdraft or loans. A personal loan might have a higher interest rate than an overdraft, and you may need to pay it back quicker. This will completely depend on the bank you’re using.
Mortgage loans
It is very rare someone can buy a house or flat completely outright and this is where mortgage loans come in handy. If you’re looking to buy a house it’s worth speaking to a mortgage advisor to help prepare you with some information, this is a popular finance option for first-time buyers especially. It’s a good idea to check your credit rating before applying for a mortgage, just to check you will qualify.
Finance options for businesses
Business finance is basically funds used by businesses to help them meet their needs. These funds could be used for starting up a business, obtaining top-up funds, finance to purchase capital, or to help deal with debt. Business finance is useful for those who come into unexpected troubles and can’t, unfortunately, get out. Business owners can rely on loan providers. If you’re looking for some financial help for your small business, you can look into debt finance or equity finance. Now you have some idea about the most popular finance options out there, you can weigh up your finances and decide if you need help in any area. Lots of people use finance and find it useful to have as a backup, especially in a business sense.
Article by Jack Hawtin
