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Divorce Settlements and How to Distribute Debt – Consolidating loans

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It is routinely stated that fifty percent of marriages end in divorce. No matter how high specified that statistic can be, the truth is that many marriages do end. Part of splitting with your spouse means taking care of debt that arose during the divorce. In a perfect world, both people walk away for the debts they created and with those debts in their own name. Unfortunately, that state of salvation can be unreachable.


Legal Liability for Debt

Legal Liability for Debt

In a community of property state, debt incurred during the marriage will not necessarily be divided according to which partner’s debt. Instead, you can both be equally responsible for debts that are made only by one partner, even without the knowledge of the other spouse.

In other states, fair distribution states, the court will assign the blame responsibility based on the blamed person. Typical debt belongs to the ex-spouse whose name is on it. That would leave you on the hook for your debt and your spouse on the hook for them.

No matter how the court distributes the debt, the banks still expect you to pay the debts in your name. The original credit card or loan agreement replaces a divorce, at least in the eyes of the bank. Debt distribution can create a problem when a spouse has been sentenced to make payments on a debt that is not in their name or one that is held jointly.

Let’s say your ex is responsible for making payments on a credit card in your name. Your credit is affected when your ex-spouse does not track payments on accounts with your name, even joint accounts. You can take legal action against a spouse who is not going to court to take payments into the account. But by the time you go to court, your credit may already be ruined.


Work Out Debt Issuers For Divorce

Work Out Debt Issuers For Divorce

Try to get the debt in the name of the spouse responsible for the debt has been completed. This will not be easy and requires both to work together, but the hard work will be needed to get you off the hook for debt that is not yours. For credit card debt, that can mean transferring balances from other credit cards or consolidating the funds with another loan.

Major loans such as mortgages and car loans are more difficult and often require the refinancing of the loan in just the name of a person, ie the person maintaining the assets. If the divorce has already been completed, the lender may allow you to remove your name from the loan and replace it with the name of your ex-spouse. You may need to divorce them stating your ex-partner is responsible for the mortgage payments. If this does not work, consult with your lawyer about having the court sell the asset and use the proceeds to pay off the loan to avoid default.


Bankruptcy an ex-spouse may affect you

Bankruptcy an ex-spouse may affect you

Your ex-spouse may choose to file for bankruptcy if they cannot keep up with debt payments and other financial obligations. However, their bankruptcy does not protect you unless you serve as well. In fact, it would get worse for you if your ex-files go bankrupt

When a former spouse files bankruptcy to take away their joint debts, these debts are not cleared in bankruptcy court. Instead, bankruptcy wipes that person’s liability for the debt. The creditor will pursue the remaining debtor, the one who does not file for bankruptcy, for the full amount of the debt. Sometimes the bankruptcy may wind down on your credit report, even though you don’t have the one filing the bankruptcy.


Protect yourself against future Debt

Protect yourself against future Debt

Be careful about leaving joint accounts opened after the divorce, or even leading up to it. Leaving a credit card or line of credit open is dangerous. Your ex-spouse can balance from their own accounts accounts that you hold together. Or they can incur the balance making you pay for purchases.

In the case of authorized user accounts, the creditor only holds the primary account holder responsible for the debt. However, non-payment on the account could affect the authorized user’s credit history because the account is listed on their credit report. A simple phone call can solve authorized user issues.

To protect your credit, you can choose to pay yourself off the debts and go back to court to have your ex-spouse repay you. This can be expensive, but it is the alternative to losing your good credit. Realize that if you pay off the debts, you can never get the money back from your ex-spouse, even with a court order. Alternatively you can file for bankruptcy, but consider it careful since the bankruptcy stays on your credit report for 10 years.

Apply for start-up loans – that’s how it works

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Once you have decided to start your own business, in most cases you will quickly be looking for support programs for start-ups. As is known, there are various options available that start-ups can use, but unfortunately, the application for public federal funding is often relatively complicated.

The most well-known federal promotional loans

The most well-known federal promotional loans

Include the Good Credit entry fee, the ERP capital for start-ups, the Good Credit entrepreneur loan, and the Good Credit entrepreneurial capital, because, with the help of these promotional programs, things like operating resources, warehouses and property, plant and equipment or fixed assets can be financed. Among other things, the purchase of real estate or costs for operating and office equipment is promoted.

An application for a federal promotional loan must always be submitted before the start of the project or the planned investment. Accordingly, the self-employed should neither commission services nor order goods or even sign a sales contract if the financing is not yet secured. However, it is not a hindrance to a promotional loan if the business or freelance activity is already registered with the tax office or the trade office.

Companies that are in financial difficulties or represent a restructuring case are excluded from the subsidy. Accordingly, no refinancing or debt restructuring can be realized with a federal subsidy loan.

The application for a promotional loan

The application for a promotional loan

It is always made to the respective house bank, regardless of whether it is a savings bank, a bank or the Good Finance. You should have an account or business account with the relevant bank, although this is not a prerequisite for applying for a promotional loan.

The credit advisor or bank advisor usually helps to fill out the loan application, but it is necessary for the applicant to bring all the necessary documents with them when making the application.

The necessary documents include the business plan, the investment plan, a sales forecast, a list of all debts and assets, a tabular curriculum vitae, an overview of existing collateral and a liquidity plan on a monthly basis.

It may be necessary to have an equity component for the granting of the promotional loan, for example in the case of ERP capital for start-ups of 15% (10% new federal states).

First, the house bank examines the loan more closely and decides in this context whether the application will be forwarded to Good Credit, whether the overall financing project will be rejected or whether it will offer the applicant its own loan. There is no obligation to forward the application, but should the bank decide to forward it, Good Credit-Bank will re-examine the loan application, which can take 14 or 21 days.

Since the funding is always earmarked

Since the funding is always earmarked

The entrepreneur or self-employed person must first submit the corresponding invoice or the order for the planned investment; only then does the house bank arrange for the funding to be transferred to the business account of the recipient.

In addition to various types of collateral, some promotional credit programs require the presentation of Credit Bureau information, including entrepreneurial capital – ERP capital for start-ups, Good Credit entrepreneurial credit with exemption from liability, the ERP innovation program and entrepreneurial capital – Good Credit capital for work and investments.

Digital process optimization of corporate loans

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FinTechs are increasingly pushing into the SME finance market. But classic financial service providers counter with fully digitized processes and a lot of experience in corporate banking. In the end, the customers benefit.

Companies looking for suitable financing are now also finding what they are looking for on the Internet. The range of offers ranges from provider-independent financing intermediaries to arranging loans, in which private investors act as lenders. And some banks are already getting involved in lending in cyberspace. Which offer is worth a click mainly depends on the planned financing project.


Credit marketplaces: financing in the algorithm

Credit marketplaces: financing in the algorithm

Financing platforms work according to the broker principle: companies enter their financing plans online on the provider platform and, after checking, receive a selection of offers from partner companies, for example commercial banks or leasing companies. One of the main promises of the financing platforms, in addition to independent product and provider comparison, are particularly simple and fast processes. The financing platforms rely on digitized application routes and databases lined with provider criteria and risk parameters. So the theory.

In practice, however, this process is often still difficult. One hurdle at the moment is above all the automatic checking of the key figures with regard to a reliable rating or the very complex connection to the scoring models of the bank partners. The marketplace concept can only be optimally represented when all data, eg from balance sheets and credit checks, can be automatically imported via interfaces. In the end, it is often the case that the marketplaces pass the customers on to their partners after the preliminary check and the negotiations then take place directly between the customer and the bank.


Crowdlending: credit from everyone

credit from everyone

Crowdlending platforms follow another principle: on the one hand, they act as a middleman for financing through professional investors, such as foundations and specialized funds, which provide the means of lending against a corresponding return. On the other hand, they mediate classic crowdfunding, in which a large number of private donors also raise the amount of the finance for a corresponding return. One or the other financing project, which from the perspective of banks is not sufficiently secured, gets a chance with crowdlending.

But there is no guarantee of funding for crowdlending either. And the borrowers pay the willingness to take risk of the lenders with a mostly clear interest premium. Companies hoping for financing from private investors must also be prepared to present their financing project in detail to a broader public.


Entrepreneurs remain skeptical

corporate loan

Online credit marketplaces in Germany are still rather difficult. According to a survey by the auditing firm Deloitte in 2018, only 2 percent of small and medium-sized companies in Germany plan to process their financing exclusively online in the future. A third therefore relies on a combination of personal and digital processing. More complex financing projects will probably continue to be implemented in the foreseeable future in direct contact with the personal financing advisor, especially since various financing modules and collateral situations are often to be illustrated here.


Banks go along

Banks go along

Here the classic financing providers score again. Especially since they have also started to enable their commercial customers to use purely digital processes for borrowing or to digitize the first process steps in the more complex segment. Lite Lender Bank is a pioneer in digital lending: Since spring 2018, it has enabled your customers to take out fully digitized borrowing including e-signature and video legitimation for business loans for the first time. Thanks to the smart digital process, payments are often made within one working day of the application.

In the area of ​​more complex financing structures, Lite Lender Bank now offers its customers to send the annual financial statement documents in a secure procedure directly via the tax advisor / auditor in digital form. This streamlines and speeds up the process considerably. The next steps to improve customer convenience are about to be implemented.

Loans for entrepreneurs

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The entrepreneurial concept is a term that is very popular in society today. And not only does it refer to young entrepreneurs who decide to bet on their own project as a job opportunity, but to undertake, it also means reinventing themselves. Many people have lost their jobs and have found a new professional development in entrepreneurship.

Loans for companies by traditional financial institutions with these years of economic crisis have become almost non-existent.

On the other hand, all those companies, regardless of their size, who have decided to break into a new market by digitizing or making any type of innovative change in their traditional business system would also be included in this concept.

How to access a Loan for Entrepreneurs?

How to access a Loan for Entrepreneurs?

In general, and due to the hostile economic environment in which we find ourselves, many official state agencies have withdrawn an important part of the funds destined for this purpose, the aid being severely cut in the form of subsidies.

On the other hand, most of the banking entities due to the uncertainty of the markets and the great risk that an entrepreneurial project implies, have hardened the requirements and conditions for the granting of loans of this style.

On the contrary, new financial tools have emerged, closely related to the web environment that they have replaced and by far the traditional financial means.

Let’s analyze some of the options …

Loans for Young Entrepreneurs

Loans for Young Entrepreneurs

Loans for young entrepreneurs are aimed at the most youthful sector of society. These profiles undoubtedly opt for new technologies, which is why Crowdfunding and Crowdlending platforms are usually one of their first options.
This trend has led to a great revolution in the international markets.

Crowdfunding: These are web platforms, in which entrepreneurs can expose their projects with all kinds of explanations images or videos, with the purpose of in a fixed period of time and with a specific objective budget, to reach the collection of the necessary amount. It is based on a system of rewards, through which the creators of the project, in exchange for the different contributions and funds they receive, send a series of prizes to the patrons who usually consist of: t-shirts, sweatshirts, posters and even the privilege of being the first to use the product or service protagonist of the campaign.

Crowdlending: It is based on the crowdfunding operating system but without using the rewards as a prize. They are known as P2P (pair to pair) loans, in which a person requests a certain amount of money to carry out an initiative. The peculiarity is that in crowdlending, there are different lenders to finance a single borrower, who once reached the objective and developed the project, will have to pay back the amount borrowed with a more attractive interest rate than that of traditional banks.
It means cost savings since all the procedures are online, avoiding bureaucracies.

Loans for Entrepreneurs without Guarantee

Loans for Entrepreneurs without Guarantee

Through any of the two options mentioned above, you can obtain loans for entrepreneurs without collateral.

There are also other alternatives such as:

Business Angels: these are private investors in search of innovative projects with a clear technological base that are committed not only to their capital but are directly involved in the initiatives contributing their knowledge and experience

Venture Capital Companies: These are companies managed by experts, who try to optimize the capital contributed by other investors, in order to assume great risks but also to achieve high returns.

Everything about interest for your business loan

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Curious how the interest rate for your business loan is determined? In this article we explain and show you how we calculate your interest rate. And: 4 tips with which you can cleverly handle the interest rate.

This is how the interest rate of your business loan with lender company is built up

This is how the interest rate of your business loan with lender company is built up

In the graph below you can see from which ingredients the interest rate of business loans at lender company is built up.

Basic interest: These are the costs for purchasing money on the money market. That is why the base rate is also referred to as the market rate.

  1. Capital costs: We must always maintain a capital buffer and incur costs for it.
  2. Margin: This is the profit that lender company makes. We invest part of the profit in the company and part of it to our shareholders.
  3. Operational costs: These are the costs for our staff, the systems, our office and other fixed costs.
  4. Risk costs: These are the costs with which we cover the risk that the loan will not be repaid. The level of the risk costs depends on the risk profile of your company.

Financial health of your company and the risk

Financial health of your company and the risk

If you borrow money, there is always the chance that you cannot pay off the loan. A financier must take this into account in order to be able to lend money and therefore charges risk costs, or risk premiums. To estimate the level of the risk costs, a financier looks at the financial health of your company. The better you are financially, the higher the chance that you will pay back the loan and the lower your risk costs.


The length of the period over which you repay the business loan, or the term, influences your interest rate. The longer the term, the higher the interest. This has to do with the prices on the money market, where the bank buys money to be able to lend. For long-term financing, inflation is taken into account, making money more expensive for such loans. This translates into a higher interest rate.

Amount of the loan amount

The more you borrow, the lower your interest rate. The bank incurs one-off costs for a loan, which are the same for each loan. With a higher loan amount, the share of those costs is smaller, so you get a lower interest rate.

Can I lower the interest rate on my business loan?

Can I lower the interest rate on my business loan?

You can lower the interest on your business loan by improving the financial health of your company. Borrowing money from a financially sound company means less risk for a financier and that often translates into a lower interest rate. Check our tips to improve your profitability, our tips to increase your solvency and our tips to increase your liquidity.

Interest tips before you apply for a loan

  • Be critical of financiers. Request different quotes and compare the conditions. Pay close attention to interest rates: do they apply per year or per month?
  • High interest? See if you can improve the financial health of your company. Please note: this improvement can only be seen one year later in your annual figures
  • Choose a shorter term: the bank charges a higher interest rate for a longer term. The disadvantage is that you have to repay faster and therefore have higher monthly payments
  • Do you compare interest? Please note that some financiers communicate an interest rate per month and others a percentage per year.

Reducing bad loans is vital for Europe’s banks

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The large volume of credit at risk in the balance sheets of European banks could threaten their existence. Banks can only concentrate on strategic and sustainable growth if they can be reduced.

More than ten years after the financial crisis, non-performing loans (NPLs) at risk of default add up to over a trillion dollars in the balance sheets of European banks.

The different development of NPL rates in the individual countries shows that a balanced and sustainable NPL level has not yet been reached in Europe. In order to ensure an NPL ratio of up to 3 percent for all banks, based on last year’s surveys from the EBA Transparency Exercise, NPLs in Europe with a volume of almost 600 billion dollars would have to be reduced.

Even in Germany, where non-performing loans only make up 2.6 percent of the total loan volume, 30 percent of these loans are not covered by risk provisions. This loan volume of USD 20 billion would have a direct impact on banks’ equity if write-downs were necessary.


High pressure on banks to reduce NPL

“For many banks, it’s about nothing less than their own future and long-term survival”
Philipp Wackerbeck, Strategy &

The pressure on banks to reduce non-strategic and non-strategic loans is increasing. The legacy issues limit new lending and competitiveness to China and the United States. This can have serious consequences for the economy, ongoing structural change and the necessary digitalization. This could also affect the relative competitiveness of the EU countries vis-à-vis China and the USA.


Space for profitable business

Space for profitable business

Accelerated deleveraging would provide many banks with scope for much-needed profitable business. In view of the persistently low interest margins and increasing regulatory requirements, it is essential for banks to accelerate the necessary wind-down measures and implement them quickly.

In addition to bad debts, this also applies to unprofitable loans, especially with a view to the expected increase in risk-weighted assets in the event of a compromise in the Basel IV negotiations. Against this background, the primary strategic goal of financial institutions should be to curb capital risks, which are still dormant in Germany and other economically strong European countries.


Four factors for reducing NPL

bad loans

According to the study, four factors enable the successful start-up or improvement of ongoing mining activities both for existing bad banks and for possible national mining units.

1. New organization

First of all, the institutes should set up their organization in the sense of a new beginning and take into account that wind-down organizations clearly differ in their characteristics from conventional banks. This includes a tailor-made operating model with clear responsibilities and incentives for reduction measures, correct credit assessments and a holistic reduction plan.

2. Provision of resources

In addition, banks have to provide the necessary resources. The organization should be equipped with a carefully calculated, regularly evaluated and consistently secured level of financing and liquidity for the entire life cycle.

3. Balance between time and capital

With regard to the reduction activities, the interrelation between time and income in the context of the credit reduction and the hold-to-maturity activities must be guaranteed in the sense of a professional implementation.

4. Coherent mining plan

In addition, banks should pursue a coherent wind-down strategy that ensures a measurable incremental reduction in operations and organization as the portfolio progresses.

Info about closed loan companies

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There are many loan companies on the net and over time some are also down as it either has not been able to drive around or because they have come in the press due to bad business being conducted in the company. The loan companies that are no longer existing at the time of writing are:

Expert loans are no longer an option, but Expert still exists

credit loan money

The fact that these loan companies have been closed down, therefore, protects that there have been poor customer conditions and a plan of return that has not been in order.

However, there are still many other loan companies to choose from, and those with whom Best Lender works are to be trusted. These are all under the supervision of the Danish Financial Supervisory Authority and are therefore your assurance that it is safe to borrow from these companies.

How to find the best loan?

credit loan money

As part of finding the best loan, here at Best Lender you can compare different loan providers with each other. Simply use the loan calculator you find here on the site. In this, you can enter how much you would like to borrow and how far. You will then get an overview of various loan companies that you can borrow from.

You can then compare how much costs are associated with borrowing from the individual companies. Ex. you can see how high the OPP is, ie how much you have to pay per year to have the loan. It is a figure that includes all conceivable costs that may arise with the loan such as interest, fees, and other costs. Among other things, you can borrow consumer loans and car loans.

Therefore, there is nothing left out and it is thus a good indicator of how expensive or cheap a loan will be for you annually. However, be aware that the APR will be affected by the loan period you choose – a longer loan will have a lower APR. However, it simply means that the costs are distributed over a longer period, and thus not that the loan is cheaper, on the contrary – the loan with the longest term will always be the most expensive as more costs have to be paid.

Facts About Online Loans

credit loan money

When you borrow online, it is easier and easier to get a quick loan approved compared to if you went to the bank. This is because you do not have to provide security or need to explain what the borrowed money is to be used for. An approval process will then typically be much shorter. However, it will depend on how much you would like to borrow, as taking out a larger loan will take longer, but still faster than in the bank.

You should be aware that when you do not pledge the loan with the online loan companies, it will mean that the costs and interest you pay on the loan are significantly higher. This is because the online loan companies are at greater risk by lending you money, and this will affect how much you have to pay off on the loan. Therefore, it is worth investigating its options before borrowing to ensure that you do not take out a loan that is too expensive. For this, you simply use the aforementioned loan calculator.