Week 75: Finance Options continued...

Morning all, It's June and with the lockdown now lifted we can all hopefully enjoy the summer. Make the most of alfresco as I have a sneaky suspicion that lockdown three will soon kick in as common sense is virtually extinct and you will get those morons who just can’t grasp the concept of individual space. Come’on, we all know someone like that don’t we? those touchy feely ones...haha

Debt Consolidation

You can only use this method once you have used one of the above or below in the first instance. If you are struggling with some of your existing debts which are on a very high interest rate you could make an application to other lenders with favourable rates to pay some or all your debts in full and then you only pay one lender with a manageable interest percentage which has been agreed with them. I am actually in the process of making these applications and can quite honestly say these types of lenders are scarce and this is not a conventional route but an alternative. 

Tip: Don’t let this put you off, remember you only need one yes!

Grant Funding

Ideal if you operate as a charity or a ‘not for profit’ establishment. Unfortunately I can't give a great deal of input on this as I'm coming in from a limited company stance. Certain regions where deprivation is huge, old seaside towns or where large industry has come to an end may be on the government agenda for prioritised housing regeneration. You will have to scour the local authorities (LA) to see who has measures in place and opt to invest in those regions and even then no guarantee that you will get any government subsidy. My property is 7 minutes from the beach and even then the council was too small to help rejuvenate my empty property.

Credit Cards

Tread very carefully, these are highly dangerous but can be used as a quick fix. Example: you pay for a particular job/task on your card when you know you have some payments coming in from a source, but it's just that it's not in your account until the end of the month. In that scenario go for it. But, what happens if the potential payee pulls out? Just factors to bear in mind. I have used my credit card (CC) several times like this and till this day I have never paid any interest on the borrowing as I've always timed it, so I end up paying the full balance before the interest kicks in. Your organisation skills have to be impeccable as one distraction can lead to late payments and extra charges.

Tip: Shop around for the best deals on sites like MoneySupermarket or Go Compare. You can have more than one card but try not to have too many.

Savings/Friends & Family

Last but not least, ‘good ol friends & famo’ if there is any scope there but I have exhausted that option. Plus it’s not fair to make anyone feel obliged to step in just because they happen to be family. It can put a lot of strain on the relationship hence, I have suggested this as a last option. Many schools of thought have advised to go to your warm market first as in people you know but I personally think when the circle is too close they can be more critical and doubtful as they think they are ‘protecting’ you and have your best interest in heart but actually this hinders you more. 

Tip: Have some patients; a couple of projects in and these same folks will be cueing up to participate in your investment opportunities as you would have proven yourself by then.

Tip: Speak to a broker and do your own research to see what level of risk you are happy with. I am not a financial advisor.