Loan Programs for Single Mothers

There are educational aids and loans designed for the single mothers. There are numerous websites where you can find information related to the loan and grant programs from the federal government designed for single mothers.

If you are a single mom then you can find host of information at department of social services. The social service organizations operating in this field provide medical assistance, child care and child support assistance.

Single moms can also buy their own homes with the assistance from the Housing and Urban Development (HUD). The HUD provide loan guarantee to the individuals who do not qualify for the mortgage loans. The loan guarantee is not the loan but this increases the chances of the loan approval. With this guarantee you can avail the loan at favorable interest rates and very low fees. You can apply for such FHA assistance and avail home loans at affordable rates.

There are Home Investment Partnerships as well which provide the assistance in down payment to the low income families. As a single mom if you belong to the low income family, you can take the assistance of Home Investment Partnership for the down payment of your home.

Housing Choice Voucher Program under the HUD program also assist the low income families in realizing their dream of their own home. These are offered in the form of voucher s, section 8s and first time home buyer programs. Detailed information about such programs are available with the concerned federal authority departments. Information about such programs is also available in the websites.

Educational grants are also available for single moms. The federal government has designed and implemented many educational grants and assistance for the single mothers. The welfare programs are reduced and the programs that reward the single moms for working are implemented.

If you are a single mother and you are looking for the loans then following steps can help you:

1. Check whether you qualify for the Housing Development Programs. These programs are run by the government and they provide the assistance to the low income families in the form of loan guarantees.
2. Reach out the local banks and credit unions and find out the assistance that is available to the first time home buyers.
3. Reach the Housing Finance agency. The agency provides the down payment assistance to the low income families. You can also consult the state agencies running state specific programs and also the non government organizations working in this field. you can find whole lot of information from such organizations about the different loans and assistance programs tailored for single mothers.

Benefits of Payday Loans at the Proper Time

The payday loans are available to fulfill your short term financial or emergency needs. The fees and interest on the payday loans are generally higher than the traditional loans.

Payday loans are also called as cash advance loans and deferred deposit loans. This loan is readily available so that you meet your short term financial needs. You just have to approach the lender and sign an application form. Along with the application form you deposit the post dated check in the name of the lender. The application is processed and the loan amount is deposited into the bank account that you provide to the lender, within few hours to one or two days.

You can use the money for the purpose you like. You can use it to deposit the college fees of your child, or to pay off your credit card bills. You can also apply for payday loan while on travel. Use it for the purpose you like. The lenders are least interested in the way you spend the money. As far as you fulfill the eligibility conditions of the loan and deposit the post dated check, the lenders will not ask you the details of how you will spend the money.

These loans provide you with instant credit and thus are also known as instant credit loans. You can apply for such loans during emergency conditions. You can use the money to pay the medical bill that you incur due to sudden illness of any family member.

The personal information that you provide your lender is not shared with any other agency, thus the loans are secure. The loan amount is sanctioned within few hours to one or two days, provided you fulfill all the eligibility conditions of the loan that include minimum eighteen years of age, good credit history and deposit a post dated check. Other conditions include minimum salary according to the norms laid down by the lender and the citizenship of the country in which you apply for the loan.

The loan is readily available if you apply online. The processing is much fast and no paperwork is involved. The loan is sanctioned within hours and the loan amount is deducted form the same account on the due date. Online application does not require any guarantee. Thus, even if you have a bad credit you can apply for the loan.

You pay back the loan on the date of salary. This makes the payment easier. As the time duration to pay back is less hence the interest is also less.

Information on the Risks of Debt Consolidation

With debt consolidation you consolidate all your debts with one lender. You take loan from this lender and pay off all other lenders. Now you pay this new lender a regular installment and clear off your debts. Debt consolidation thus helps you to manage your debts in much better way.

It makes the repayment much easier and also lowers your total interest rate. You don't have to run to different lenders to pay them the installments before the deadlines. Debt consolidation makes the whole thing easier and manageable. Well, this is true for the individuals who are unable to refinance their debts and are finding it pretty hard to make the ends meet.

Debt consolidation solves most of the debt problems when there is no other way out of the trap. A well planned and selected debt consolidation gives you all the benefits, but, other way round, it can be devastating. So, choose the consolidation plan that best suits your needs and repayment capabilities.

Approach the licensed agency which has good experience and reputation in this field. Search these agencies only if you cannot refinance your debts any further. Refinancing is a much better option than reaching your lender and negotiating with him the interest on the loan you pay.

If you apply for the secured debt consolidation loan, you place your property with the lender as collateral. This lowers the interest you pay. It also gives you the option to take longer repayment term. This makes your repayment sum lower but you risk your property for this loan. If you fail to repay your loan amount, your lender will sell your property to recover back the loan amount.

So, you have to be careful when you consider and choose the debt consolidation plan. Always approach the agency that has the license for this service. Also verify that the agency is currently licensed in your state or region. Avoid the companies which charge the high upfront fees and administrative fees. There are many unauthorized agencies operating in the market who ask you to pay a high sum as upfront fees. Avoid them.

You may think that a single loan looks much better than the multiple loans on your credit report. But the fact is when you consolidate all your loans, you close all your credit card accounts. By closing all your accounts you shorten your credit history which adversely affects your credit score.

Therefore, pay attention to your spending and start with self evaluation of your debt situation before you approach a debt management agency for debt consolidation program.

Find out the Best Remortgage Deal

If you are looking for the cheaper interest rates and you manage to find one then you can switch your current mortgage with the new lender and enjoy the benefits of lower interest rates.

Remortgage process allows you to switch your current mortgage deal (with your current lender) to another lender so that you can take the advantage of the interest rates and other benefits such as repayment options etc. You also have the option to talk to your current mortgage lender and get your deal remortgaged.

Some of the remortgage deals are available with the features of convenient repayment options while other with lower interest rates. Some come with both the features. If you manage to get a good remortgage deal, you save a lot of money. But to find out the best deal, negotiate. You should know how to negotiate with your current as well as the new lender so that you come out with flying colors.

The negotiation is effective only if you have all the information about the market as well as about all the aspects of the deal. So, brush up all the aspects. List all the current rates which exist in the market. Make your credit report appealing to the lender. Search all the relevant information that you can use to tilt the negotiation in your favor.

Find out all the lenders in the market offering remortgage option. Compare them. Approach them and find out what offers they have for you. Make a list and start negotiating. But first look out that the lenders do not have any tie you up with the offers they are giving you. Read the fine prints. You may find some of the lenders who are luring you with the lower interest rates for first few years and then may hike the interest rate as the term ends.

They may also charge you the penalty if you switch to other lenders in future. Beware of such lenders and avoid them. Also clear your doubts that they will not charge you any penalties related to the deal. The remortgage deals come with some costs. You may have to pay the redemption charges associated with the transfer of the deal.

The ideal remortgage deal is one which offers you the lower interest rates and does not bind you with the lender. Consider these points in choosing the remortgage. You can also search for the information on internet. This medium gives you all the information about the lenders. You can compare them and then negotiate with them for the best deal.

Best tips to improve your credit score

There are many ways by which you can repair your credit and improve your credit score. Let's discuss some of them.

1. Get a copy of your credit report: take the copy and understand it. Get the copy from all the three bureaus. Find out the faults, if any.
2. Lower your credit card expenses: reduce the use of credit card. Cut down the payment that you make with your credit card.
3. Make sure you pay off all your credit card balances on time. If you don't have cash in hand then request for increase in credit line. Take the limit but don't use it. But before you make a request, clear all your doubts. Inquire about all the aspects before you apply.
4. Apply for secured credit card. You can use this option if you are not eligible for regular credit. You can convert this card to a regular card after certain time period. Now, with this secured card pay your bills timely and keep your balance low. This will help you to rebuilt and improve your credit score.
5. Improve your credit score with credit monitoring program. The criteria considered to calculate your credit score include history of payment performance, current debt level, length of credit history and the credit cards and loan application in your financial statement. All these factors are looked into and the figures considered in calculating your credit score. What you have to do is have a credit monitoring program. Apply for a credit report. Check it regularly for any errors. And if you find any errors then take the responsibility of correcting it. Report the errors to the authorities. Thus a credit monitoring program offers you two major benefits. First, you get to know the type of factors considered by the lenders in calculating your credit score. Second, you improve your credit score.
6. Do not apply for loans unless it is necessary. If you have no other option, apply for the loan by securing your saving account. But here you should have at least $500 in your account.
7. Avoid hard inquiries. These inquiries reduce at least five points of your score.
8. Check the payment dates. Note them down and never miss them. Make timely payments. This will take you a long way in correcting your credit score.
9. Use the re aging technique. By this your lender converts your past due account to current one. This dramatically helps you to improve your credit score. But you have to assure your lender that you will make the payments on time. In fact you should have three timely payments in previous months.

Discover Gold Card

Gold card from discover is easy to obtain and use. The cards are for those who have good credit history and who are looking for a cash back offers. The card is launched by Morgan Stanly.

Gold credit cards give to their customers more benefits and savings. These cards offer rewards which are not offered with other type of cards. These cards in fact offer rewards to their loyal customers. These cards offer their loyal customers security against identity theft and offer travel and rental insurance to their customers.

The annual fee for gold credit cards is very low or absent. Other benefits include road assistance service for the credit card holder and his/ her family. Discover gold card offer cash back bonus programs. Under this scheme the card holders earns rebate for different purchase which they make.

If they make a purchase of up to $1500 then they earn a rebate of .25%. And if they make a purchase of $1501 to $3000 then they earn a rebate of 0.5%. These rebates are offered if you purchase from certain qualified merchants and warehouses. If you accept for the cash back bonus then you can earn a rebate of five percent, if you purchase items from the merchants and discount stores that qualify.

The cash back is redeemable in increments of twenty dollars and the card gives you an unlimited earning.

Double cash back bonus programs are also designed for the users of Discover gold card. Discover also offers different types of credit cards. These cards are so designed so as to suit the lifestyle of different groups of individuals. Therefore, if you consider buying a Discover credit card then first know your lifestyle. If you are a frequent traveler then choose the card that fits your needs.

Discover Gold card comes with zero percent APR applicable for twelve months and very low or zero annual fees. This is for both purchase and balance transfers during a period of twelve months. Discover gold card has an attractive APR. The APR is variable and stands at 10.99% on purchase. For cash advances it remains fix at 21.99%. The grace period offered is also another attractive feature which is twenty five days without any fees.

The only disadvantage that the card holds is of two cycle average daily balance method of calculation for finance charges. This result in higher charges and the credit card will thus cost you more under the condition of balance you carry on your card.

But with unlimited rewards, 24x 7 online account and help service available and cash back offers, this card is one of the best types you can have.

Student Finance: Useful Help to Avail an Affordable Education

College education is important if you want to secure a good job. And you need that extra money to pay the fees for the degree that will earn you a job in future. Higher education is getting expensive. To meet these expenses there are different type of financing programs for the students who want to take up higher education.

Student finance help is available for the students who need such finance. If you want to continue your higher education then you can apply for the finance help. The finance help is available both online and in the offices of the financial companies giving such grants.
Financial aid for the students is available in the form of federal loans and student loans from the private financial companies. These loans are designed so as to meet the educational need of the students. Students can use the loan amount to pay their tuition fees, hostel fees and meet all other expenses related to their higher education.

The federal loans are available to the students in financial distress but willing to continue higher education. The student has to first fill FASFA form which is processed to find out if he/she needs the financial aid. If the student qualifies, the grant is given.

Student loans from the private financial companies are also available. The students who cannot qualify for the federal loans can apply for such loans. These loans come as secured and unsecured loans. The financial companies do not charge any fees for student loans. The companies give different type of repayment options and the student can choose any one according to their financial condition and preference.

Student debt consolidation loans are also available. Such debt consolidation loans are for the students who find it difficult to manage the loans they took in the past for their studies. Those students, who remain unemployed after their graduation and find it difficult to manage different loan repayments, can also apply for such debt consolidation loans.

Student finances have lower rate of interest. This is to make the repayment easier for the students once they finish off with the education and get placed in a job. There are financial companies which are associated with the educational institutions. These companies have certain customized plans for the students taking up different courses in that institution. Such plan come with different discounts and offers which make the loans quite affordable for the students.

Companies also provide counseling sessions to the students and suggest the plans best suited for their course. Thus there are different types of financial help for the students so that they can continue with their education.

Smart Tax Tips for College Students

Here are some tax tips for college students:

1. File your tax return: Most of the students work part time and are not required to file the return. But remember no matter how small your income is, always fill a return form and submit the form within the due date. You may get some amount which you can use for your studies.
2. Get some expert advice: Taking advice from expert help you to solve many of your queries related to the tax liability and tax return. Take a break of few days from your studies and work. Talk to your friends. Talk to your parents or a lawyer for the suggestions.
3. Calculate your earnings and find out how much you can file for return. Recheck it number of times before filling the numbers in the form.
4. Read the information on IRS site. There are other community volunteer sits as well where you can find all the information related to the tax laws and the investment plans to save tax. Search these sites and collect all the relevant information that you can.
5. Start as early as possible. More near to the filing date more chaotic it gets. Besides this you also find it difficult to gather information related to all your queries. You can save yourself from waiting in those long queues if you start with the process from much earlier date before the deadline.
6. Extend some donation to charity. You not only earn blessings but also use the donation receipt to file your tax return.
7. If you have a child then you can invest for his education and claim for tax deduction. The investment under the plan is tax exempt till you use the income on education of your child.
8. If you are going on work with all your equipments and tools then you can claim for deduction on these tools and equipments which you carry from your place to your work.
9. If you are residing in one state and studying in other state then you have tax liability for both the states. Find out about this situation.
10. Take the benefit of tax credit: select one among the hope credit, lifetime learning credit and higher education expense deduction. Hope credit give you maximum of $1500 and this applies for first two years of college fees. Lifetime learning credit gives you $2000 credit on your education. Higher education deduction gives you a saving of up to $4000 and is extended to the families with gross income of $130000.
11. Make sure that your tuition fees was not give from 529 account as in this situation you cannot claim for education deduction or credit.

How to Get Financing for Plastic Surgery

Medical loans are available if you want to finance your plastic surgery. These loans come with a payback period of two years to five years and you can borrow amount from $ 1000 to $25000.

The cost of your plastic surgery vary with

1. the surgeon you are approaching
2. the type of surgery you are planning
3. the place where you are taking the surgery

The loans for plastic surgery are unsecured loans. Therefore you don't have to evaluate your asset and keep it as collateral to get your finances. But before applying for plastic surgery loans consider certain points:

1. Find out the cost of the surgery that you will be taking. The cost depends upon the procedure, anesthesia, devices like Botox and the fees of the consultant and surgeons involved in the procedure. Calculate the cost that you will incur before going on a hunt for any financer.
2. The loan differs on the cost of your plastic surgery and the repayment time that you consider to payback your loan. So, search well and find out about different loan available with different lenders for the surgery that you have planned.
3. Compare financers on the basis of interest rates and the fees they are asking.
4. Some medical financing is also extended by the hospitals giving the facility of surgery. Find out whether such options are available with your hospital or surgeon.
5. The surgeons or hospitals have certain payment plans according to which you can pay your surgery bill in increment installments and avoid the burden of one time installment.
6. There are loans available for individual with bad credit. But here also you have to qualify certain conditions. They look into your ability to pay back your loan amount. The main thing they search for is your credibility and whether you are reliable enough when it comes to paying your loan installments.
7. The financing companies can give you loans, payment plan options and loans with low APR. You can decide and take the plan of your choice according to your requirements. The loaning companies also provide you help and guide you with the terms and procedures regarding the loans and suggest you the plan that suit your requirement.

There are some insurance plans as well. But the financing is limited for some procedures. This you can discuss with your insurance company and take the benefits of the funds to improve your looks.

Top 10 tips for getting Business Finance

Getting all the finance for the business just involves some careful planning, a detailed powerful presentation and a clear mind as to how much is required and from what sources. Here are certain tips that may help you to arrange the funds that you require for your business. But you should always consult an expert in the field so that your business benefits from all those funding.

1. Make a plan as to how much you require and from what sources. There are different sources in the financial market- loans, leasing, hire purchase, government grants and shareholders.
2. Find out the nature of all the sources and the benefit that different sources can give to your business. Say for example leasing is better option than purchasing the equipment as you get the advantage of using latest technology at low cost and also have the option of purchasing the equipment at the end of term. It also provides you with tax benefits. Term loans can be beneficial for short term and long term cash need and the payment can be spread over the years.
3. Plan the sources and their combination from which you will be raising the money. Say for example you need $20,000. Then you can plan to raise about half of the fund from short term loan and remaining from venture financing.
4. Next make a plan as to how you will be using this amount. Find out all the cash inflows that your business will be generating for you so that you manage to repay the loan installments timely.
5. Lay down an effective plan and presentation mentioning all your expenses of the amount and the profits that the business will generate when it is fueled with the funds.
6. Find out all the investment companies giving different loans. If you are looking for leasing or hire deals then find out if the companies are offering any discounting terms to make their deal attractive.
7. There are suppliers who give credit discounts and offers to their customers. Find out any such discount periods and credit terms that can benefit your business.
8. There are different monetary instruments, forward and future contracts that can help you transact short term and long term deal with your overseas and local clients.
9. Overdrafts also prove to be an efficient short term source of finance. Besides this there are factoring options where you can raise finance on outstanding invoices.
10. Invoice discounting can also be opted when you don't want your client to know that you are using the service. The interest rates lie between 1.5-3% and the method gives rapid cash flow for your business.
    

How To Reduce Your Student Loan Payments Fast

There are federal debt consolidation loans available that can help you to reduce your loan repayment and consolidate all your federal and private loans under on company. This can make the payment of loans a lot easier. If you are finding it difficult to repay your loans due to different multiple lenders or fear that you can default due to some financial conditions then you can consider consolidating your loan. The federal debt consolidation loans come in two forms- Federal direct loan and federal family education loan.

How these loans reduce the payments?

1. First is the rate of interest that is applied. The rate is calculated on the average of the loans that are consolidated. This rate calculated is applied to the loan amount that you take and it remains fixed for the entire life of the loan. The interest rates applied however always lie below 8.25%.
2. The monthly payment that you make is smaller and this makes the whole payment easier.
3. 3The fees charged by the companies for loan processing is very low. there are some companies which do not charge such fees.
4. The interest that you pay is not liable to taxation.

Finding a company for consolidation

Search for the company that is offering you the experts who can guide you with the whole process. Look into the details of the agreement, terms and conditions of the company. Clarify all your doubts. A company that offers you all the answers for your queries is the one that you can consider. Such companies do not just try to speed up the process of loan sanctioning but give you time and work with you so that you are comfortable with different aspects of the loan that you are taking from them.

Refinancing is also an option. But it is mostly available for federal government loans. And if you have government and private loans in your list then you should consider refinancing them separately. Before considering this option you should also check your credit score. Approach the company after comparing them on the basis of rates and fees. And then consider the lender after analyzing them and your refinancing needs.

You can also file certificate of deferment which allows you to postpone your payment for a temporary period generally for about six months. But after this term the interest rates start building on your amount that you have to repay.

Cheap Payday Loan

Payday loans are a type of cash loans. These come with high rate of interest as the lender take a risk of offering you the amount without considering and looking into your credits. Therefore managing a payday loan that is cheap requires some additional efforts.

You first have to search all those lenders extending the payday loan. Then get their quotes. Do a comparative analysis of their terms and conditions before signing on the dotted line and getting the loan amount in your account.

Internet is also the option to search for the payday loan with low interest rates. You will find some difference in the interest rates with the online lenders and manage to get the payday loan at low interest rates. You can use the amount to pay off your debt, solve your financial crisis or use the way you like. The lender is not interested in the way you use the amount but the repayment that you make.

You can manage to find the cheap payday loan with interest rates ranging between 18%-20%. This range is for the loan taken for the term of seven to fourteen days. Although on an average the loan interest is 20%. So if you are looking for the cheap payday loan then consider this fact. The cost also varies with the conditions of how fast you require the cash. The loan processing is completed within the time frame of one hour to twenty four hours.

The no credit payday loans are available to the borrowers and the companies do not check the credit score of the borrower. But they certainly look into the employment of the borrower. So, for no credit payday loan you should be employed for at least three months, should be in service and should be earning $1000 a month after deducting your taxes, should not have filed for bankruptcy within past one year or for many times in previous years and should be eighteen years of age. If you fulfill all these conditions then the lenders are ready with the cash for your account.

Once you qualify the basic conditions of the loan approval the amount is directly deposited in your account. You have to sign a post dated cheque in the name of the lender thus enabling the lender to debit the amount from your account on the payday.

The payday loans are not for long term and you will have to pay for the instant cash the lender is giving you for short duration by overlooking the credit score. Therefore keep in mind that the payday loans are not that cheap

Sales Financing: A Brief overview

If you need some quick money to pay for your purchases then try considering purchase order financing option. It is a better way to generate ready cash so that you can pay for those purchases and keep your business on track. It provide you with easy and quick capital in the conditions when the financial conditions of the business are not appropriate or the money is locked up in some deposits so that you don't have the appropriate cash in hand to pay to your sellers.

As you receive the order from your client you just visit the financing company for the support. The company will pay up to 100% of the cost to your supplier by the letter of credit. The letter ensures that once the goods are delivered in time and proper conditions the payment will be made. The goods get delivered and the invoices are settled. The whole transaction is completed as soon as your customer pays their invoices. This is how sales financing works. The payment margin may differ from one financial company to the other.

It mainly depends upon the credibility of your client. If the client is a government institution or a reputated company with big market share or strong presence in the market then the companies readily finance the order. But if the client is a new entrant in the market the companies have their terms and conditions which you have to fulfill. In this condition they may finance up to 70%-75% of the sales value.

The whole process is simple and gets completed within few days. There are few companies giving you this service. You thus have to search them in the financial market and find out one. Such financing is generally available with the companies providing factoring services.

This mode of financing is not entered in the debts and thus this becomes its second advantage. All you need to do is get an order from the client, then move to the reliable supplier to complete the order for your client and then finally hunt for the company giving such funds.

Besides the reliability of your client, the financial companies also look into the profit your company earns, the reliability of your company, the goods in which you are dealing and the size of the sale. Some financers also give a minimum and maximum limit in which your order should lie.
Thus the mode is an easy way to settle your deal with your client and make your business grow in size.

What is Purchase Order Financing?

Purchase order financing provide you with the capital so that you can pay to your suppliers. It provides for easy capital to the wholesalers, distributers, resellers and quite common in the manufacturing industry. It is a mode of obtaining short term finances from the bank so as to pay to the suppliers and close the sale.

How can the purchase order be beneficial for you?
Suppose that a client approaches you with a big order. This order is really big and important for your business. Also the client that has approached you is a reputed one in the industry. You readily accept the terms and accept to pay to your client within the agreed time. But you don't have the necessary finances. Even if you try out then also you will not be able to arrange the big sum to pay to your client. In such conditions purchase order financing is the method which saves you from such adverse situations. Here you approach the financing company that pays to your client on your behalf through a letter of credit.

What do the financing company look for before paying for your transactions?
They just look into the financial strength of your client. If your client has a reputation in the industry or is a government company then the company sanctions your finances. They also look into the profit margin that your deal will offer you. A margin of 25% or more is sufficient enough to satisfy the financial company to pay your client the requisite sum. Some companies also lay out the minimum amount that should be placed in the order.

How does the process work?
Suppose that you client places an order of $200,000. You then reach out the financing company for the finances. This company buys the order for your client from your supplier in your name and pays the supplier through the letter of credit. The financing can be up to 100%. The order is finally delivered to your client and the invoice is received. All the transactions settle after your client pays the invoice. This helps you to settle your order and makes the timely delivery to your valuable client.

Purchase order financing is the quicker method of financing and is convenient when compared to other financing methods like loans etc. this is because they basically require a valid purchase order and a reliable reputed client who has placed the order.

Reinforce Your Business with Business Asset Finance

Assets in a business can be financed by the following methods:

• Leasing
• Hire purchase
• Mortgage
• Factoring

Leasing is a legal contract where you (lessee) approach a lender (lessor) who lends you the asset amount or a fee.

• The lessee approaches the lessor for the equipment or the plant or any asset that he requires.
• The lessor and the lessee both agree on the conditions of the leasing agreement.
• The lessor then lends the asset to the lessee for the duration agreed upon in the agreement.

The lease agreement includes all the aspects of the contract, some of them are:

• The duration for which the asset is being lend
• The condition of the asset during lending.
• The place and time at which the asset is lend
• The amount for which the asset is leased
• The installments and the mode of payment of the lease
• The rights of the lessee and the lessor
• Maintenance cost of the asset that is paid by the lessor and the lessee

The lease is classified into two types:

• Finance lease
• Operating lease

In operating lease the asset is leased for a fixed period. When the when the lease period is complete then the lessor hands over the asset top the lender. Here the lender sometimes may sell the asset to the lessor for an amount.The ownership of the leased asset remains with the lender in leasing agreement.The leasing can also be of direct lease where the lessor approaches the leasing company which then borrows or purchase the asset from the source and lends it to the lessor for fees. In sales and lease back the lessor sells the asset to the lender which then leases back the asset to the lessor for a fee.

Hire purchase is a legal agreement where the ownership of the asset passes to the person hiring the asset once all the installments are made. The term of the contact is generally kept smaller than the life of the equipment that is hired. The final installment is generally higher than the previous regular installments. The person hiring the asset also has the option of purchasing the asset in the middle of the hiring contract before the hiring term expires.

In factoring the bank buys the account receivable of the client or company and pay to its client 80% of the value. The remaining 20% is given when the customers of the company pay the debts to the company.