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Dear Customers & Prospective Customers,

In this post today, we want to address the topic on everyone’s mind this week: The Covid-19 Novel Coronavirus.

We are now officially in a state of global pandemic.

The effects of the Coronavirus outbreak — and the measures the New Zealand Government has taken to slow it — reach into every facet of our country’s businesses and communities.

That means the financial markets — and specifically the lending business ecosystem — will be affected by this.

So, allow us to clarify a couple of things.

Firstly…

Finance Today Remains Open For Business

We are still accepting, processing and settling finance applications across our range of products and services.

As with all Kiwi businesses, we remain vigilant for the wellbeing of our staff and their families.

But at the time of writing, we’re all hands on deck.

Should this change, and mean we are unable to serve our customers at our normal capacity, we will let you know.

Like the rest of the country and world, we are of course monitoring the situation daily and standing by to adhere to Ministry of Health directives.

We will do our best to remain fully operational.

And…

We’ll Do Our Best To Help You

We’ve always prided ourselves in going above and beyond for our customers here at Finance Today.

While there are obviously huge and rapidly changing factors at play right now, we remain focused on matching our customers with the best possible financial solutions from our network of lenders across the country.

The basic conditions we must use to assess loan applications remain the same.

We will always ask for proof of income.

We will never lend to a customer who can’t afford to repay their loan.

Our commitment to responsible lending in line with regulatory requirements and industry standards remains the same, regardless of how severe and prolonged the Coronavirus outbreak becomes.

Stay Alert, Stay Safe

Should you have any queries regarding the current lending conditions and options available, please feel free to get in touch.

Look after yourself, and each other.

Sincerely,

The Finance Today Team

Renovating houses is a fundamental part of Kiwi home ownership.

First home buyers, in particular, look at property not so much in terms of what it will be like to live there…

But how much more they can sell it for after spending a year or two sprucing up the interior and landscape.

Adding value to a property can be the fastest way for Kiwis to move themselves off the first rung of the property ladder.

To do this, of course, requires money.

New carpet, bathroom fittings, windows, air conditioning systems — you’ll need to spend a fair bit of money if you want to add substantial value to a house.

The question is, should you borrow money to do this?

Our answer is yes, IF you go about it the right way.

Identify The Parts Of Your House That
You Can Add The Most Value To

The fact is some rooms cost more to renovate. Bathrooms and kitchens tends to cost the most to do up (courtesy of appliances and fittings etc.).

But then the bathroom and kitchen tend to be central points of focus for prospective tenants and buyers in the future, too.

So as you’re determining your DIY project’s budget, be sure to take into account where you’ll spend that money.

Research the highest impact areas for your renovation dollars.

Then, determine your budget based on the increase in capital you predict your project could create.

Then…

Borrow Smart To Ensure Your Capital Gains
Don’t Get Swallowed Up By Interest Payments

If you’re borrowing money to fund your renovations, make sure the numbers add up.

If you borrow $20,000, for example, and you calculate that your property’s value will increase by $30,000 after the DIY investment…

Then you stand to gain about $10,000, in theory, when all is said and done.

But…

Don’t forget to take into account that the interest you pay on the money you borrow will eat into that profit.

This means finding a loan at a competitive interest rate is paramount when it comes to maximizing the returns from your DIY project.

Because paying too much interest could negatively impact your potential gains!

So how do you keep your interest rate low?

The more secure the loan, the less interest you will pay. To secure the loan you offer up assets as security in case of default.

Property and vehicles can be used to secure a loan and achieve a lower interest rate — so you can offer the house you’re renovating as security on the money you borrow.

We get a lot of people coming to us applying for loans, convinced that they have a bad credit rating.

However, many of these people don’t actually know the truth about their credit rating — or their rights when it comes to checking and correcting it.

So before you go assuming you have a bad credit rating — and therefore need to settle for something like a payday loan when better options may be available to you…

Read this post!

What exactly is your credit rating?

Your ‘credit rating’ is your entire history of financial decisions.

Every time you apply for a loan, a mobile or internet plan, mortgage or credit card, for example, the provider has to check whether or not your history demonstrates you will be able to afford the repayments.

Every time you apply for a financial product or service, the details of that application enter your credit report.

However, your credit rating is only as good as the information New Zealand’s ratings agencies receive about your financial behavior.

You have the power to fix any mistakes in your credit rating

Unfortunately, sometimes the reality is that credit ratings agencies record incorrect information about you.

For example, if you bought a car that the previous owner owed money on, and that debt became your debt (on paper), this could dramatically change your credit rating.

The good news is that you have the right to make corrections to your credit rating — and it is easy to do so.

You can request your own credit report at any time and make corrections via the reporting agency you deal with.

It makes sense to ensure your credit rating is accurate and not carrying any incorrect financial information about you BEFORE you apply for a loan.

Don’t just assume you have bad credit

Jumping to conclusions about your credit rating before knowing the facts could lead you to accept a less-than-ideal loan.

Checking your credit rating — and making corrections to it — is both free and easy.

We encourage you to do so before applying for any loan, because your credit rating impacts:

• Whether your application gets approved or rejected
• The limit on how much you can borrow
• The interest rate on any loan you get approved for

If you have any questions don’t hesitate to get in touch with us.

Along with all the amazing customers we deal with week to week here at Finance Today, we always receive more than our fair share of hate mail.

So today, we thought we’d take a little time to address a few of the recent accusations that have popped up on our social media pages.

There’s clearly a lot of Kiwis out there who don’t understand the realities of personal finance and debt consolidation… or who believe anyone who lends money is automatically a “loan shark” who’s out to get you.

The truth about Loan Place is a lot simpler and a less scary than that.

So let’s look at a few recent accusations we’ve seen.

Accusation: It’s A Scam

Truth: Hundreds Of Happy Customers Prove That’s Not The Case

As you’ll see in our post about responsible lending, we actually turn down a LOT more finance applications than we approve.

Why?

Because our mission is to help everyday people get finance solutions that will improve their financial position.

For most applicants, getting a loan is not the best option.

Naturally, some people get angry when we turn them down for a loan.

There are literally hundreds of Finance Today customers who’ve come to us for personal loans, car loans, business loans and debt consolidation…

…and who have been thoroughly impressed by our service and the solution we helped them find.

In other words, our growing community of happy, loyal Finance Today customers is living proof our business is not a scam.

Accusation: ‘Mature People’ Don’t Consolidate Debt

Truth: Consolidating Debt Is Often The First Step To Repairing Your Financial Position

One comment we saw recently concerned our debt consolidation service.

The gist was this: Taking one loan to pay off another loan doesn’t make sense.

Now, that might be true, IF you took a new loan to pay another at the same — or higher — interest rate.

But if you have multiple loans and the average interest rate across those loans is, for example, 25%…

Then you would be in a much better position if you took a debt consolidation loan and dropped the interest rate to, say, 19%.

It’s simple maths.

We wouldn’t offer debt consolidation to our customers if it didn’t help them improve their financial situation.

Accusation: ‘Be Careful Of The Broker Fee’

Truth: Our Consultants Work Tirelessly To Find Great Finance Solutions, Tailored Specifically To Our Customers

One way to think of Finance Today is like an air travel aggregator website for finance.

We don’t lend money ourselves. We broker finance agreements on behalf of our customers using our working relationships with multiple lenders across the country.

We do charge a modest broker fee to provide this service. We have never and will never hide this simple fact of our business model.

While some people online seem to think we are ‘working for third parties’, the truth is we are working for our customers.

Our consultants work one-on-one with each of our customers to match their specific situation and goals to the right loan from the right lender.

We are proud to provide this service to everyday Kiwis.

If you have any questions about our business or the services we provide, don’t hesitate to get in touch with us

This week on the Finance Today blog, we’re pulling back the curtain on three real-life success stories.

When people apply for a loan with us, no matter whether it’s a small loan or finance for a major purchase, our aim is always the same:

We want to help our customers improve their long-term financial situation by access fast, fair finance solutions that suit their specific needs and background.

And we’re pleased to be able to share with you today three stories of customers we’ve proudly served in the past few months.

These are everyday Kiwis who found us online, applied for a loan and worked with one of our dedicated consultants to find a solution that would allow them to borrow the right amount of money under the right conditions.

See for yourself!

(We’ve changed their names to protect their privacy.)

From Out of Business to Making $40,000 a Month

Rob is a business owner who unfortunately had to deal with the failure and closure of his business.

Not long after though, he got the opportunity to become an ‘owner driver’ for a container transport freight company.

The only hitch was that he had to find $140,000 to buy his own truck and trailer before he could get started.

How could Rob possibly go from dealing with a collapsed business to finding that much money to start work with the new firm?

He called us.

We quickly analyzed Rob’s situation and income potential, and helped him obtain a loan for the new truck.

Rob only had to provide a small deposit and use the truck as security on the loan.

He’s now up and running with his new small business, generating $40,000 a month in revenue.

Mortgage Cleared and Property Project Complete!

Damian had been building a house in Queenstown over the past couple of years but had gone over budget (as building projects often do) and found himself $100,000 away from finishing.

Because he was self-employed, the banks required two years’ worth of financial statements in order to lend Damian the funds he needed to complete his new building.

Luckily for him, Damian found Finance Today.

We were able to help him arrange a $780,000 mortgage refinance that cleared the existing mortgage and advanced him the funds to finish the project.

Today, the building is complete and Damian recently rented it to his first tenants.

A $50,000 Loan Facility Approved in Just 2 Hours

Janet runs a food truck company. Business had been going well, so she was looking to expand her fleet and buy a late model Isuzu to help serve more customers.

She started looking around for a lender to help her finance the new truck.

Unfortunately, Janet had difficulty proving a stable income and found that most lenders deemed her to be a high risk customers (she already had multiple trucks on finance).

But when she spoke with us, we dove a little deeper into her situation.

As a property owner who’d be running a successful business for 10 years, Janet was not the high risk our competitors told her she was.

In just two hours, we had approved a $50,000 loan for Janet’s new truck.

Her business is now growing even more successful and she’s thinking about working with us again to finance another truck!

There you have it.

These are just three of the hundreds of success stories we’ve shared with everyday Kiwis here at Finance Today.

If you have any questions about obtaining fast, fair finance, we’re happy to help.

One of the things some like to claim is that you are better off going to the bank for a loan than applying with us.

We thought it would be helpful for those considering applying for finance with Loanplace to get the facts straight first.

We’re a New Zealand Government Registered Financial Services Provider.

We have thousands of satisfied customers who’ve borrowed amounts from just a few thousand dollars up to several thousands, for reasons ranging from debt consolidation and home improvements to buying a new car or going on a much-needed holiday.

If you don’t want to take our word for it (we are, of course, biased), then read some of our hundreds of independently verified reviews.

We’re Agile: We Can Quickly Approve Loans Large And Small

The biggest advantage we have over the banks is that we are an impartial business that has strong working relationships with multiple finance companies in New Zealand.

That means we can match your application with the best lender based on your individual situation.

A bank, on the other hand, is only interested in lending you money itself — even if there’s a better option out there.

One of the best things about being a small, independent business is we can offer our customers great flexibility — often more so than the banks.

While applying for a loan through a major bank can require large amounts of paperwork, we pride ourselves on offering customers a quick, user-friendly online application that only requires you prove your income using our secure online portal.

Another advantage we offer our clients is our lightning-quick response and approval times.

If you apply for finance with a bank, you can sometimes expect to wait days for a result.

At Loanplace, our quick-and-easy online application process means we can process, approve and settle your loan within just two hours (that’s best-case scenario, of course — some applications are more complex and we rely on our customers providing their information quickly in order to deliver a fast service).

So while we are small and independent, we are not looking to scam anybody — just deliver fast, fair service.

We’re 100% Legit (And Fully Capable Of Beating The Banks’ Interest Rates)

Loanplace is a New Zealand Government Registered Financial Services Provider.

We’re in business to help everyday kiwis get access to fast, fair finance with friendly, one-on-one service.

We deliver our service via our website and our hand-picked team of consultants here at our office in Christchurch.

We’re also fully committed to responsible lending. Because we believe in only lending money to those who can afford to pay it back, plain and simple.

Our team assesses each loan application fair and square.

The interest rate we offer our customers is always directly in line with the information they provide in their application and their credit history.

While the banks tend not to offer interest rates on loans lower than 13.95%, we’re able to beat that by about 5%.

If you have a particular question you’d like to ask us, we’d love to help!

When we talk about your ‘credit rating’, we’re talking about your entire history of financial decisions.

That might sound scary, but it doesn’t have to be.

See, every time you apply for a loan, a mobile or internet plan, mortgage or credit card, for example, the provider has to check whether or not your history demonstrates you will be able to afford the payments.

Every time you apply for a financial product or service, the details of that application enter your credit report.

Your credit rating is the sum total of your applications and the rate of success or failure you have had in both obtaining and repaying loans.

This means that every time you apply for finance, you’re not really going up against some big bad company who doesn’t want to lend you money.

Really, you’re going up against your own financial past.

If your credit rating reflects a long history of successful applications and diligent repayments, you’ll generally stand a higher chance of succeeding with new applications.

But, if you have a long history of missing payments or being chased by debt collectors, for example, chances are you’ll find it more difficult.

Simple Ways To Protect & Improve Your Credit Rating

If you already have a good credit rating and you want to keep it that way, here’s three things to keep in mind.

Keep on top of all your accounts: Whether it’s your mobile phone, your Sky account, broadband connection or home utilities accounts, make sure you stay up to date with payments.

This shows the credit rating agencies that you can be relied on to meet your payment obligations.

Minimize your debt: OK, we know sometimes you have to borrow to improve or stabilize your financial position.

But think carefully before you borrow.

The more debt you have to your name, the riskier you might seem to potential future lenders, because this debt will show up in your credit rating.

Show stable income and living arrangements: The longer you’ve been earning income from a job, and the longer you’ve owned or rented your home, the more likely your credit rating will demonstrate stability and reliability — two things which finance companies like to see when assessing a loan application.

Common Pitfalls That Can Damage Your Rating And Make It More Difficult To Get A Loan

At Finance Today, we see a LOT of finance applications. Time and time again, we see people making the same mistakes and costing themselves the chance to secure a loan at a good interest rate.

Here’s three things to avoid if you’re looking to build a good credit rating:

Applying for heaps of loans: This is important. You don’t have to obtain a loan for your credit rating to change, you only need apply.

There’s no sense applying for 10 loans in a single day when each company you apply for can see you’re applying to the nine others.

The better option is to do your research and apply for one loan, not many.

Accepting payday loans: These high interest, short-term loans are sometimes necessary for those trying to alleviate urgent financial problems.

But the reality is that accepting a high interest loan like this demonstrates to credit rating agencies that you may be in financial hardship — making it tougher to get accepted next time you need finance.

Gambling before applying for finance: Successful loan applications require proving your income and financial behavior via bank statements.

Lenders will look for evidence of gambling.

This can negatively impact your chances of getting approved, because lenders ideally want to give you finance to improve your financial situation, not make it worse.

Your mortgage is not what you think it is.

It’s not just a debt to the bank that you have to pay off to live in the house you bought.

It’s not just another bill you’ve been dealing with every month since you moved in.

In fact…

It could be your ticket to accessing a pile of extra cash.

Let us explain.

Your mortgage is a measure of how much equity you have in your home.

The more you pay off your mortgage, the more your house belongs to you (and not to the bank).

As you build equity in your home over time, you don’t just chip away at your mortgage.

You create a financial and real asset.

See, you can — if your financials meet the lender’s requirements — use that equity as security for extra cash, or a ‘second mortgage’.

And you can use that extra cash pretty much any way you like; renovations, travel, consolidating debt or buying a new car.

If you’re a homeowner and you’re trying to obtain finance, then listen up.

Your Home Equity Could Be Your Ticket To Tens Of Thousands Of Dollars In Extra Cash

When finance companies and brokers in New Zealand assess your loan application, they’re bound by regulation and law to examine your income and assets.

That means you can’t borrow more than you can afford to repay.

If you own a home and you’ve been paying off a mortgage, applying for finance could be way easier than you might think.

That’s because having home equity not only shows that you have the income to pay off your mortgage…

It also proves to lenders that you own a valuable real asset.

You have the right to ‘borrow against’ the equity in your home.

In other words, the part of your home that you’ve paid off becomes the ‘security’ for any extra cash you might need to borrow.

Many people use the equity in their first home to borrow the money to buy a second property.

That’s why you’ll often hear this type of loan called a ‘second mortgage’.

It’s also called ‘caveat lending’.

The Reserve Bank of New Zealand limits this type of lending based on the ‘loan-to-value ratio’ or LVR.

The regulations mean you can access up to 80% of the equity you have in the home you live in and up to 65% on a property you rent to a tenant.

So, if you own a home and you’ve been paying down your mortgage…

We May Be Able To Approve Up To An Extra $150,000 For You Using Your Home Equity 

To get an idea of exactly how much extra cash you might be able to access based on your home equity, speak with one of our caveat lending consultants today.

Some common reasons for accessing finance through caveat lending are:

• Freeing up extra cash to invest in renovating your property…
• Consolidating or paying down higher interest debts to improve your overall financial position…
• Financing a second property or business investment …

Generally speaking, homeowners do enjoy a quicker and easier loan application process thanks to the security that owning equity in a home provides to lenders.

But, getting approved for a second mortgage or caveat loan will depend on your unique financial situation and the amount of equity you have available in your property.

So if you own a home — whether it’s your own or one you’re renting out — you may be sitting on a way to access up to $150,000 in extra cash.

To learn more about caveat lending and discover exactly how much you might be able to borrow, get in touch with us today for a free, no-obligation consultation.

Often in life you can find yourself in a bit of a pickle when it comes to money. Maybe some unexpected bills came up that you were not prepared for. Perhaps you needed to buy a car to get to work. Whatever the reason, it happens, and there are a few things you can do to help get yourself into a better situation fast!

1. Focus on the highest interest rate first

If you have multiple debts, say a credit card, a hire purchase and an overdraft, it is important to pay these off in the correct order so that you can get out of debt fast and save the most money.

So the first thing to do is find out what the interest rates are on each of your debts. Often credit cards or payday loans are going to be the one with the highest rate.

Now you have figured out the highest rate debt, you need to pay off as much as you can each month rather than just the minimum payment. The reason for this, is everyday interest is calculated on your debt, so the lower the amount of debt on each day, the less interest you will be charged.

In the long run, this means you end up paying the debt off faster and also it costs you less because you are paying less interest.

2. Credit Card balance transfers

Did you know that different credit card providers offer an interest free period when you transfer the balance of a credit card from another bank to them?

Often the big banks have a 6 month or even a 12 month interest free period when you transfer the balance. That means on a credit card debt of $5000 at an interest rate of 19.95% you would save nearly $500 over a 6 month interest free period.

Now of course this only helps you if once you transfer the balance, you pay off as much as you can each month. Don’t just pay the minimum amount. This is to drop the balance as much as possible while in the interest free period.

If you get to the end of the interest free period and still owe money, nothing is stopping you from doing another balance transfer to a different bank to take advantage of another interest free period.

3. Consolidate Debt into a single repayment

Another option is to get a ‘Debt Consolidation’ loan, which brings all your debts together into a single, easy to manage repayment.

Often this winds up to be the most manageable solution for someone with many debts, as it makes the monthly repayment much smaller and can often be at a lower average interest rate.