TIP OF THE WEEK
When borrowing money, remember that interest rate is not the only thing to consider (and not even the most important thing sometimes). When thinking about the “price” of money, price includes the interest rate, but price doesn’t include only the interest rate. When thinking ‘price’ you really have to consider all the things that you might get charged for, including things like the following:
So, it should be obvious that there are plenty of ways for a lender to charge you for their service, or other fees to accumulate during the process of getting credit. And, by and large, fees are usually relevant and appropriate to the service provided or the cost (or value) in providing them. But remember a couple things:
There are so many ways that InfoFact can help you help yourself when working on getting financing for equipment, inventory, working capital, mortgages, lines of credit, credit cards, and other credit needs you have. On a regular basis, we're going to be providing a new concrete, usable tip that you can use to help you prepare by giving you ways to improve how lenders see your credit worthiness and your financial strength, how you can improve the terms you get on existing and new credit facilities, and how you can choose between all the various options there are out there and get the best deal for you and your circumstances.