Peer To Peer Lending Vs Bank Loans: A Look At The Main Differences

In What You Need To Know About Small Business on February 24, 2017 at 6:38 am

The majority of people turn to their local bank when they need money. You can take out a bank loan to pay for a new car, a kitchen, or even an exotic holiday. But bank loans are not your only option these days. Peer to peer lending has become increasingly popular in recent years. Websites such as Zopa match borrowers with lenders, thus cutting out the ‘middle man’. Both types of lending have their pros and cons, so which one is right for you?

Bank Loans

There are two types of bank loan: secured and unsecured.

  • An unsecured loan is usually for smaller amounts. You borrow a fixed sum and pay it back over an agreed term, typically up to five years. Once you sign the loan agreement, interest is fixed.
  • A secured loan is usually for a larger amount, which is why it is secured to an asset – often property, but not necessarily so. Secured loans are payable over a fixed term and at a fixed interest rate. The main difference between this and an unsecured loan is that you stand to lose your ‘asset’ if you fail to make repayments.


P2P Lending

In many ways, peer to peer loans are not all that different from traditional loans. You can borrow a fixed sum of money over a fixed term, at a fixed rate of interest. However, the money comes from your peers, as opposed to a bank. Because P2P lenders have very few overheads, they can effectively undercut the banks with lower interest rates and better terms.

For the lender, it’s an even better deal. If you lend money through a P2P site, you will enjoy better rates of interest and tax-free interest if you move your earnings into an Innovative Finance ISA. For many investors, it’s a win-win situation.

P2P vs Bank Loans

In many ways, P2P loans trump traditional loans in that they offer better rates and they are more flexible. For example, if you borrow money from a P2P site, you are free to make overpayments or pay off the balance of your loan early, thus saving interest. In most cases, this isn’t possible with a secured or unsecured loan. Payments are fixed and although you can settle the loan early, you may have to pay a penalty in the form of interest.

All this is well and good, but not for people with bad credit. P2P lending sites are primarily for people with good credit. If you have bad credit, you won’t be eligible to borrow. In this instance, UK bad credit loans are your best option.

Bad credit lenders specialise in lending to people with adverse credit ratings. You will pay a higher rate of interest, but if you repay the loan without incident, it will help restore your credit rating.

Weigh up your options carefully before taking out a loan of any description – and make sure you can pay it back!

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Is There A Doctor In The House? There Could Be!

In What You Need To Know About Small Business on February 24, 2017 at 6:24 am

Have you ever been in that situation where someone is looking for a doctor or a medically trained professional? Well, what if they were looking for you? This dream could come true if you start looking into how to get medically trained right now. Getting into medicine isn’t as difficult as most people think. Yes, there are expensive college programmes but there are other ways too.

Volunteer In A Clinic

You can volunteer in a health clinic. Now obviously, without medical training, you won’t be able to complete medical procedures. But you will be able to gain a lot of experience. This will help you build medical knowledge and if you do decide to go to college, you will already be lightyears ahead of other students.

Become A Midwife

Midwifery is a very specific part of the medical industry. You’ll be working to deliver babies every working day. It’s a great idea if you want to be part of the medical industry without having to go through all the doctor training. Particularly, if you love working with babies. It doesn’t take much work to become a midwife although it can certainly be challenging sometimes.

Train To Be A Nurse

Or finally, you don’t have to be a doctor to help save lives. You can still help people and save them with a full nursing qualification. You’ll have all the knowledge and experience to help those in need and do some good in the world. You can find out more about this career choice a little further down.

Produced By Registered Nurse Jobs


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How To Go From Bright Idea To Successful Business

In What You Need To Know About Small Business on February 23, 2017 at 6:22 am

We all love that moment when the lightbulb above our heads suddenly glows, and glows, and keeps on glowing so much that the glass shatters. Sometimes these ideas snap you from your slumber at 3 o’clock in the morning. Sometimes they happen as you are brushing your teeth, or taking the subway to work, or talking to children. There is no definitive time or place, there are just the rare phenomena of a brilliant idea.  

But having a great idea is the easy part. Knowing what to do with this thought – this invention – now that is the tricky part. And while there are numerous different routes you can go down, there is only one first move you should be concerned with, and that is protecting your idea.

Protecting it is the only way you will make money from it, and the best way to protect an idea is to patent it. Don’t tell your friends, or the blokes down the bar, or a company that already works in this market; just patent it, otherwise there are no guarantees that it won’t be snatched by an eager listener.

We’ve all heard of a patent. However, not many of us actually know what the process entails. So what does patenting an idea entail:

Stage 1: The Proof Is In The Detail

Having an idea is no good, not without proof that it is actually your idea. But how do you prove you came up with something? Well, the first thing you should do is pull the pen out of your jacket and write down every single little detail you can that relates to your idea. Write about the idea. Write about the product. Write about how it will work and who it will work for. Write how you plan to market it. Once this is done, go and buy yourself an Inventor’s Journal, copy all of your notes into it and have a witness sign it. An Inventor Journal (yes, this is actually a thing) is basically just a notebook that has been bound, had its pages numbered and has pages that can’t be removed or reinserted. Stage 1 done. Simple.

Stage 2: Due Diligence

Unfortunately, just because you may not have seen your idea anywhere else, does not necessarily mean it hasn’t already been patented. So, always do an initial search to confirm it doesn’t already exist and isn’t already protected by someone else. This includes finding any artwork or designs that relate to your idea because they’ll stop you from being able to get a patent too. As a sort of recommendation, do your due diligence on the market too. There is no point investing time and money into something that no one is going to buy. See if there are similar products out there, see how well they are selling and see whether you can compete with them on price.

Stage 3: The First Attempt

First things first, make a prototype before you patent your idea. Why? Simple; you are going to find flaws in your original idea, flaws that will need amending, flaws that will see you add a new feature to your idea and that new feature will need to be present in the patent. That would be risky because not patenting the added features could leave the door open to someone else patenting those features. Ouch.

Stage 4: File It

When all of the creases have been ironed out and you are happy with your idea, then go and get file a patent (which will either be a utility patent or design patent). We recommend you always have an experienced professional look over application before you file it, though. The reason for this is to make it watertight. If your idea is as great as you think it is, then people and companies will most likely infringe on it, so make sure there are no loopholes.

Stage 5: Rock and Roll

This will include all of the necessary steps that every entrepreneur has to go through, such as writing a business plan, approaching investors and raising funds, because without funds you are not going to get very far. Then you need to consider how you are actually going to manufacture your idea. It could be possible to go it alone. If not, though, then license it to another company. If it is an app, then bring a software development company on board, although you will be shocked at how little you get in royalty fees. However, think about the financial burden you will be free of if you do go down this route. If your product is tangible, then cautiously approach a number of different manufacturing companies to get a feel of their experience, their costs, their ethos and what they will be like as working partners. The latter is probably more important than any other factor. You want to trust the people you are working with.

Once all this is done, well, then it is just the small matter of marketing your product, which requires a new set of skills and understanding.

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