editorial team – Free Bassuk http://freebassuk.com/ Mon, 14 Mar 2022 09:24:59 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://freebassuk.com/wp-content/uploads/2021/07/icon.png editorial team – Free Bassuk http://freebassuk.com/ 32 32 Best Bad-Credit Loans for March 2022 https://freebassuk.com/best-bad-credit-loans-for-march-2022/ Mon, 14 Mar 2022 09:24:58 +0000 https://freebassuk.com/?p=5072 Editorial Independence We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money. Personal loans can be used for everything from debt consolidation to […]]]>

We want to help you make more informed decisions. Some links on this page — clearly marked — may take you to a partner website and may result in us earning a referral commission. For more information, see How We Make Money.

Personal loans can be used for everything from debt consolidation to major life expenses. 

The best rates and terms will only be available to people with the best credit, especially in a year that’s seen lenders tighten lending standards and requirements across the board. So if bestyour credit score is on the lower end, it’ll be more difficult to qualify for the best rates, if you qualify at all. 

Still, it isn’t impossible to qualify for a personal loan if you don’t have a great credit score.

Many lenders still offer personal loans to people with “fair” or “poor” credit — and some even specialize in offering loans and other financial products to those types of customers. But if you have debt, bad credit, or both, and you’re thinking about a personal loan, you should consider whether or not taking on new debt makes sense. 

You might be better off considering alternatives like credit cards with promotional rates or even a home equity line of credit (HELOC) if you own a home. Consider what it takes to make long-term financial improvements as well, such as rebuilding your credit or starting a debt management plan.

If you think a personal loan is your best option despite having a lower credit score, here’s what you should know:

Best Bad-Credit Loan Rates in February 2022

Institution Min. Credit Score Current APR Loan Term Range Min. Loan Amt. Max Loan Amt.
Payoff 640 5.99% to 24.99% 2 to 5 years $5,000 $40,000
Best Egg 640 5.99% to 35.99% 3 to 5 years $2,000 $50,000
Upgrade 620 5.94% to 35.97% 3 to 5 years $1,000 $50,000
Upstart 580 3.22% to 35.99% 3 to 5 years $1,000 $50,000
Rocket Loans 540 5.970% to 29.99% 3 to 5 years $2,000 $45,000
Prosper 640 7.95% to 35.99% 3 to 5 years $2,000 $40,000
LendingClub 600 8.05% to 35.89% 3 to 5 years $1,000 $40,000
Avant 580 9.95% to 35.99% 2 to 5 years $2,000 $35,000
LendingPoint 590 9.99% to 35.99% 2 to 5 years $2,000 $36,500

How we chose these lenders

This list does not represent the entire market. To rank the personal loan rates you’re most likely considering, we began by analyzing the 16 most commonly reviewed and searched-for personal loans that met NextAdvisor’s standards, as outlined in our Personal Loan Rates Guide. Each lender had to meet the following criteria to appear in this review:

Easy-to-access information

We eliminated lenders that make it difficult to find the above essential loan information on their websites without entering an email or other personal information. Many lenders prominently display this information on their sites, making it easy to compare to other lenders. If you’re in the market for a personal loan, we recommend a lender that’s transparent with its rates and approval requirements, and doesn’t require personal information for a rate comparison.

Reasonable APRs

We ruled out any lenders whose max APR exceeds 40%, which is well above the average APR you can find even if you have bad credit. A high APR will result in you paying more over the course of the loan.

Direct Lenders

Our list features only direct lenders, rather than intermediaries or loan marketplaces. We also ruled out credit unions, which have unique membership requirements and limit the number of people who could easily consider them for a loan. Credit unions can offer competitive rates to those who qualify; check your local area or use a credit union locator to compare rates.

No fees

None of these banks charge any fees or penalties for early payments or otherwise paying off your loan early. We don’t think you should ever have to pay a fee to get out of debt faster, so will never recommend a personal loan that includes such a fee or penalty.

Achievable credit score requirement

Each lender has a minimum FICO credit score that includes people in the “fair” credit score range, which includes scores between 580-669.

The above rates and loan information is accurate as of February 14, 2022. The NextAdvisor editorial team updates this information regularly, though it is possible APRs and other information has changed since it was last updated. Some of the lowest advertised rates might be for secured loans, which require collateral such as your home, car, or other asset. Also, some loan offerings may be specific to where you live.

Lender Overview

Avant

Overview: Avant is an online lender that serves customers with fair-to-excellent credit. It’s one of the only two lenders on this list that offers both secured and unsecured loans.

Pros: Avant’s bread-and-butter is unsecured loans, but it also provides secured loans for which you’d use your car as collateral. Avant doesn’t specify a minimum income, and the minimum credit score starts at 580, which FICO considers “fair” credit.

Cons: If you have a “fair” credit score, you won’t be eligible for the lowest APR available; you may get a rate as high as 35.99% so make sure to always make your monthly payments. You also can’t add a cosigner or co-borrower to your application to improve your chances of approval for a more favorable rate.

Avant
Current APR 9.95% to 35.99%
Loan Term Range 2 to 5 years
Loan Amount $2,000 to $35,000
Prepayment Penalty None
Origination Fee Up to 4.75% 
Minimum Credit Score 580
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans Yes

Best Egg

Overview: The online lender Best Egg offers unsecured personal loans for everything from debt consolidation and home improvement to moving, child care expenses, and adoption.

Pros: Best Egg personal loans can range from $2,000 to $35,000, with repayment terms between three to five years. The minimum credit is 640, and you won’t be penalized if you want to pay off your loan early or make additional off-schedule payments.

Cons: You need a minimum 700 FICO score and a minimum individual annual income of $100,000 to get the lowest APR available. And if you have “fair” credit, you can’t boost your chances of approval through a co-borrower, cosigner, or collateral.

Best Egg
Current APR 5.99% to 35.99%
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $50,000
Prepayment Penalty None
Origination Fee 0.99% to 5.99%; 4.99% for loan terms longer than four years
Minimum Credit Score 640; 700+ for the lowest APR
Minimum Annual Income $100,000 minimum individual annual income for the lowest APR
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

LendingClub

Overview: LendingClub is a peer-to-peer lender that offers unsecured personal loans through an online marketplace connecting borrowers and investors.

Pros: Personal loans range from $1,000 to $40,000, with repayment periods between three to five years. You can get a joint loan through LendingClub by adding a co-borrower to your application — something not all lenders offer.

Cons: You may have to undergo a more stringent verification process (i.e., providing more documentation to prove income, assets, and debt) due to pullbacks from the COVID-19 recession. If you have excellent credit, you may find better rates elsewhere as the lowest APR is higher than others on the list.

LendingClub
Current APR 8.05% to 35.89%
Loan Term Range 3 to 5 years
Loan Amount $1,000 to $40,000
Prepayment Penalty None
Origination Fee 2% to 6%
Minimum Credit Score 600
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

LendingPoint

Overview: LendingPoint is an online-only lender that offers unsecured personal loans to borrowers with “fair” credit” and steady income or employment.

Pros: The minimum credit score is 590, and the loans range from $2,000 to $25,000 with repayment terms between two to five years. You won’t have to pay a prepayment penalty if you decide to pay off your personal loan earlier than scheduled.

Cons: LendingPoint would prefer you be at your job for at least 12 months before applying to a loan, though it’s not a requirement. You need to make at least $35,000 per year, and you can’t add a co-borrower, a cosigner, or collateral to your loan to improve your chances of approval.

LendingPoint
Current APR 9.99% to 35.99%
Loan Term Range 2 to 5 years
Loan Amount $2,000 to $36,500
Prepayment Penalty None
Origination Fee 0% to 6%, depending on your state
Minimum Credit Score 590
Minimum Annual Income $35,000 
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

Payoff

Overview: Payoff is an online lender that works only with borrowers who want to consolidate high-interest credit balances.

Pros: The APR range is lower than many of its competitors, you don’t get charged late fees if you’re accidentally late making a payment, and you can receive free FICO score updates. 

Cons: To qualify for a Payoff loan, you need at least three years of established credit and a 640+ credit score. You also wouldn’t qualify if you live in Massachusetts, Mississippi, Nebraska, or Nevada, or want to take out a personal loan for anything other than debt consolidation. 

Payoff
Current APR 5.99% to 24.99%
Loan Term Range 2 to 5 years
Loan Amount $5,000 to $40,000
Prepayment Penalty None
Origination Fee 0% to 5%, included in APR
Minimum Credit Score 640, and three years of established credit
Minimum Annual Income None specified
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

Prosper

Overview: Prosper, a peer-to-peer lender, lends to borrowers with fair-to-excellent credit scores who want to consolidate debt and take on home improvement projects.

Pros: Co-borrowers and cosigners are allowed and might help boost your chances of getting approved for a personal loan with a better rate. Prosper’s loans range from $2,000 to $40,000 with repayment terms of three or five years.

Cons: If you don’t have solid credit, you may be stuck with an interest rate at the high end of the spectrum (35.99% APR). Prosper also doesn’t offer secured loans.

Prosper
Current APR 7.95% to 35.99%
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $40,000
Prepayment Penalty None
Origination Fee 2.41% to 5%
Minimum Credit Score 640
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? Yes
Unsecured Personal Loans Yes
Secured Personal Loans No

Rocket Loans

Overview: Rocket Loans, a subsidiary of Quicken Loans, is a personal loan lender that serves borrowers looking to consolidate debt or finance home improvement projects or auto expenses.

Pros: Rocket offers the lowest minimum credit score (540) of any lenders we reviewed, so you may qualify for a personal loan with a “poor” credit score. You can also get instant decisions and same-day funding through Rocket.

Cons: You can’t boost your approval odds by applying with a co-borrower or cosigner, or by using an asset as collateral for a secured loan (Rocket doesn’t offer secured loans).

Rocket Loans
Current APR 5.970% to 29.99% with AutoPay (0.3% higher if invoiced)
Loan Term Range 3 to 5 years
Loan Amount $2,000 to $45,000
Prepayment Penalty None
Origination Fee 1% to 6%
Minimum Credit Score 540
Minimum Annual Income $24,000
Co-Borrower Allowed? No
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

Upgrade

Overview: Upgrade, an online-only lender, offers personal loans for debt consolidation and financing home improvement projects and major purchases.

Pros: Personal loans with Upgrade range from $1,000 to $50,000, with repayment terms between three to five years. You can apply for a joint loan if you want to better your chances of getting approved for a low rate.

Cons: If you have “fair” credit, you may end up with an APR as high as 35.97% and an origination fee as high as 8%. People who live in Hawaii and Washington, D.C., aren’t eligible for Upgrade personal loans.

Upgrade
Current APR 5.94% to 35.97%
Loan Term Range 3 to 5 years
Loan Amount $1,000 to $50,000
Prepayment Penalty None
Origination Fee 2.9% to 8%
Minimum Credit Score 620
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

Upstart

Overview: Upstart is an online lender that uses AI technology to evaluate and approve borrowers with non-traditional financial backgrounds, which includes those who may not have strong credit scores but are considered creditworthy in other respects (e.g., having a steady income and employment history).

Pros: Upstart’s AI technology factors employment and education history into your application, so if you have a limited credit history or are self-employed, your odds of getting a personal loan may be higher with Upstart than other lenders. The minimum credit score is 580 (considered “fair”), and you may receive funds as soon as the day after approval.

Cons: Even if you get approved for a personal loan with a “fair” credit score, you may be paying a very high APR. And if you live in Iowa or West Virginia, you won’t be eligible for an Upstart personal loan.

Upstart
Current APR 3.22% to 35.99%
Loan Term Range 3 to 5 years
Loan Amount $1,000 to $50,000
Prepayment Penalty None
Origination Fee None
Minimum Credit Score 580
Minimum Annual Income None specified
Co-Borrower Allowed? Yes
Cosigner Allowed? No
Unsecured Personal Loans Yes
Secured Personal Loans No

Pro Tip

If you’re in need of a specialized debt payoff plan, we recommend looking at nonprofit credit counseling agencies. A credit counselor can help you create a budget and improve your credit score so that you won’t need to take out a personal loan designed for bad-credit borrowers.

What Are Bad-Credit Loans?

Bad-credit loans are for borrowers with low credit scores or a limited credit history. Oftentimes, people end up with low credit scores because of missed payments, bankruptcies, or heavy debt loads — or because they haven’t had enough time yet to establish a credit history. Personal loans are more difficult to get when you have bad credit. But many lenders do offer them — and some even specialize in bad-credit borrowing. 

What is a bad credit score?

Each credit scoring agency defines a bad credit score differently. But for our purposes, we’ll refer to FICO credit scores here. FICO scores are between 300 and 850; the better your credit, the higher your score.

A bad credit score falls within FICO’s “fair” or “poor” credit tiers:

  • Fair credit: 580 to 669
  • Poor credit: 300 to 579

What makes a bad credit score?

There are five factors that make up your FICO score. The percentages reflect how important each of them are:

  • Payment history (35%)
  • Amounts owed (30%)
  • Length of credit history (15%)
  • New credit (10%)
  • Credit mix (10%)

If your credit score is low, it’s likely because you haven’t consistently made payments or because you have substantial debt from multiple loans. Your credit score can also get dinged if you have a short credit history, if you have only had access to one type of loan or credit, and if you have recently gotten a new credit card or loan.

How to Get a Bad-Credit Loan

The process of getting a personal loan with bad credit may be more difficult than if you had excellent credit — but you can find one that’s flexible or affordable. You’ll just have to do a little more digging and consider how a loan payment may fit into your budget.

1. Figure out what your needs are

First, consider why you need a personal loan. Are you looking to consolidate credit card debt? Fund a wedding or vacation? Taking out a loan is a big responsibility and can damage your financial health if you’re not careful. We recommend taking out a loan only if it’s going to improve your financial health. Otherwise, you could be sinking yourself into unnecessary debt with unfavorable terms.

2. Shop around

Find out what banks, credit unions, and online lenders offer personal loans for people with “fair” or “poor” credit. With the COVID-19 pandemic, many lenders have tightened their qualification standards and limited lending to people with good-to-excellent credit, but there are still options out there for you. Just make sure the interest rates and fees aren’t too high and that the lender is reputable.

3. Get prequalified

Many lenders offer the option to apply for pre-qualification, where you can enter a limited amount of information about yourself on the website and see what type of APR and loan terms you’d potentially qualify for. It’s not an official offer, but it does give you a sense of your eligibility for the loan without the lender running a hard credit inquiry on you. A hard credit check (one or multiple) can lead to a temporary decrease in your credit score.

4. Apply

Qualifications and required information will differ between lenders, but you’ll likely need to provide the following details:

  • Permanent address
  • Social Security number
  • Employment history
  • Source(s) of income
  • Existing debts and assets
  • Purpose of the loan
  • Co-borrower or cosigner information

Lenders will also run a hard credit check to understand what your credit score and debt-to-income ratio are. 

5. Gather documentation, once approved

If you’re approved for a personal loan, the lender will need to verify the information you provided during the application process. So it’s helpful to keep the following documents on hand:

  • Driver’s license or other type of photo ID
  • Proof of Social Security number
  • Tax returns
  • Paystubs
  • W-2 forms
  • If paying off debt: account numbers and balances of loans, credit cards, or other debt

6. Withdraw funds 

Once the lender has verified your documentation, you’re ready to receive the loan amount — if you’re approved. Lenders will either mail you the check, direct deposit the cash, or send a wire transfer. And it can take anywhere from one day to a week to receive it. To mitigate any potential problems in the future, we recommend setting up autopay with your lender so you never miss a bill payment.

How to Avoid Scams

Scams are abundant in the world of bad-credit lending. Many predatory lenders will entice people with promises of quick cash, only to charge extremely high fees and interest rates. As a result, those who have low income or low credit scores can find themselves in a cycle of debt. Here are some ways you can avoid getting scammed by a predatory lender.

1. Avoid lenders that don’t ask for your credit

Even if they’re accepting of bad credit, a reputable lender should still ask for your credit history and sources of income. It’s a bad sign if a lender seems like it would accept anyone; it could mean it’s more interested in extracting fees from people than lending responsibly.

2. Check if the business is licensed and has good reviews

Any lender you work with should be licensed by the Federal Trade Commission in your state. You can find out this information through your state regulator or attorney general. We also recommend checking the lender’s letter-grade with the Better Business Bureau (BBB), which rates companies based on consumer complaints. If a prospective lender has been sued by a state attorney general, for example, you’ll be able to see those details on its BBB page.

3. Don’t pay cash upfront

It’s normal for origination, application, or appraisal fees to come out of the loan amount. But if a lender is charging you cash upfront, that is a major red flag.

4. Ignore the hard sell

Reputable lenders typically aren’t advertising to you over the phone or at your front door. If an ad or sales pitch seems like a scam, it probably is. Similarly, you shouldn’t work with any lender that tries to pressure you into applying or signing a contract.

5. Look for signs the lender is real

Your lender should have a robust and secure website (starting with “https” in the url in your browser and a padlock symbol), as well as a physical address. Online lenders may not have physical storefronts you can walk into, but they should still have an address that signifies an office staffed by employees.

Types of Bad Credit Loans

1. Secured and unsecured personal loans

Personal loans are either secured or unsecured. To get a secured loan, you need to put up an asset (such as your home or vehicle) as collateral for the loan. When you do this, the bank gets extra reassurance about your application and is more likely to approve you or give you a lower APR — but the risk is you could lose that asset if you fall behind on payments. Unsecured loans don’t require collateral and may come with higher interest rates and lower loan amounts, but they’re less risky for you as the borrower.

2. Payday loans

Payday loans are short-term, high-cost loans — often for $500 or less. You can get these loans quickly, but the fees and interest rates are exorbitantly high. Payday loans frequently land people in cycles of debt due to often-predatory lending terms. We recommend avoiding payday loans at all costs.

3. Cash advances

Cash advances are short-term cash loans borrowed from the available balance on your credit card. They can be an easy method for fast cash, but the interest rates are often much higher than a credit card’s standard purchase APR or a personal loan APR.

4. Bank agreements

Bank agreements are small loans given out by banks who have existing relationships with customers. If you’re in a bind, your bank may be able to loan you some cash — but keep in mind these policies are not official and the terms and requirements will differ depending on the lender and the applicant’s financial profile.

5. Home equity loans for bad credit

Home equity loans are fixed-term, fixed-rate loans taken out from the value of your home. These loans are secured by your home equity and may be available to you as a homeowner, even if you have “fair” or “poor” credit. But know that you are taking on additional risk — if you fall behind on payments, your home could go into foreclosure.

6. HELOCs for bad credit

Similar to home equity loans, a home equity line of credit (HELOC) is secured by the value of your home. But with HELOCs,  you’re borrowing from a revolving credit line (not unlike a credit card) and can withdraw cash any time you want within the draw period of the line of credit. After the draw period, you’ll enter a repayment period in which you cannot withdraw more cash and must pay back what was borrowed in a certain amount of time. Because of the COVID-19 pandemic, HELOCs have become extremely difficult to get for anyone with less than “good” credit.

7. Student loans for bad credit

Student loans are available to borrowers with “fair” or “poor” credit who are looking to pay for tuition, student living expenses, textbooks, and other learning essentials. You likely won’t be able to take out a personal loan for student expenses, so instead, you’ll need to shop around among specialized student loan lenders.

How to Choose the Best Bad-Credit Loan Company

Having a less-than-perfect credit score can limit your options when it comes to finding a lender, but you should still shop around for the best terms and do your research to make sure you’re working with a reputable lender. Here are some things to look out for:

The APR

In general, having a less-than-ideal credit score will disqualify you from getting the best rates, but you should still be mindful of what APRs (Annual Percentage Rate) you’re getting and shop around to get the best deal. Generally, APRs over 40% should be avoided. High APRs may be a sign of a predatory lender and taking loans with high APRs may make it more difficult for you to get out of debt. 

Fees

Besides the APR, fees are another important factor to watch out for, as they can quickly rack up. Common fees include application fees, origination fees, late payment fees, and prepayment penalties. Fees typically come out of the loan amount, so be wary of any lender charging money upfront. And it’s best to avoid lenders that charge prepayment penalties, which charge you a fee if you decide to pay off your loan early. 

Credit Score Requirements

Having a low credit score may rule out your ability to get a loan from certain lenders, but all the lenders we picked for this list have a minimum FICO credit score requirement in the “fair” credit score range, which is 580 – 669. Many lenders will list the recommended credit score ranges on their site, and some may even let you see if you pre-qualify without a hard credit inquiry. It’s important to keep in mind the credit score requirements and be strategic about applying so that you’re only applying to loans you have a good chance of qualifying for. 

Secured or Unsecured Loans

One factor to take into consideration when choosing a lender is if you want to get a secured or unsecured loan. With secured loans, you put down an asset — such as a house or a car — as collateral, which the lender can seize if you don’t make your payments. Since secured loans offer less risk to the lender, you may be able to get better rates or qualify with a lower credit score. However, you should weigh the pros and cons carefully and make a decision based on your individual financial situation. 

Transparency and Customer Service

A final thing to watch out for is the transparency of the lender and the quality of customer service. For this list, we at NextAdvisor ruled out lenders who did not make essential information easily accessible. A lender that is transparent about basic information does not guarantee they’ll be transparent about everything. And a lender that hides important information or appears misleading is never a good sign. 

Getting a sense of the quality of customer service before you sign with a lender can also be helpful. The lending and repayment process can be long and complicated, and working with a lender that’s helpful when issues arise can save you a lot of headache in the long run. You can check out customer reviews and complaints — as well as how the company responded to them — on consumer review websites like the Better Business Bureau (BBB).

Frequently Asked Questions About Bad-Credit Loans

How can I fix my credit to get a better loan?

If you want to increase your credit score to better your chances of getting a loan, here are some ways to do it:

  • Pay your bills on time. Payment history accounts for 35% of your FICO credit score, so the best way to increase your credit score is to pay your bills on time and in full every month.
  • Check your credit report for errors. You can check your credit report for free from the three major credit reporting agencies — Equifax, Experian, and TransUnion — every year. Report any errors to the credit bureau responsible so that your credit score isn’t harmed by inaccurate information. 
  • Don’t close old credit cards, even if you’ve paid them off. The average age of your credit history accounts for 15% of your FICO credit score. Even if you don’t intend on using a card regularly, it’s best to keep it open, especially if the card is your oldest card.
  • Avoid opening too many new cards at once. Recent activity accounts for 10% of your credit score, so you’ll get dinged if you open — or even apply for — too many credit cards and loans at once. 

What is an unsecured personal loan?

With a secured loan, you put down an asset — such as a house or a car — as collateral, and the lender can seize that asset if you don’t make your payments. An unsecured loan does not require putting down collateral. Unsecured loans are considered riskier for the lender, and because of this, unsecured loans will typically have higher interest rates, lower loan amounts, and stricter credit requirements than secured loans.

Even if you don’t have assets on the line, defaulting on an unsecured loan still has serious consequences. It will seriously damage your credit score, and lenders may take legal action against you. 

How much can I borrow?

The amount you can borrow will depend on the lender you choose and your credit application. The loan amount offered by the lenders we included here range from $1,000 to $50,000. In general, the higher your credit score, the larger the loan amount you’re likely to be approved for. The APR you pay on the loan will also vary depending on the loan amount. Larger loan amounts will also typically have longer loan terms. 

Can you get a small loan with bad credit?

Having bad credit will make it harder for you to get a loan, but it is possible. All the lenders we included on our list have minimum FICO credit score requirements in the “fair” range, which includes scores from 580 – 669. Keep in mind that the lower your credit score, the higher your APR will likely be. Be wary of payday loans or other predatory lenders who may offer loans to those with poor credit at the cost of extremely high APRs and fees.

If you have a bad credit score, here are some things you can do to improve your chances of getting approved:

  • Lowering your debt to income ratio (total debts divided by total income)
  • Demonstrating that you have a stable source of income
  • Getting a co-signer on the loan, if the lender allows it
  • Getting a secured loan instead of an unsecured loan

Can you get a loan if you’re unemployed?

It is possible to get a loan if you’re unemployed, but it may be harder, and there are certain considerations you’ll need to take in mind. Lenders ask for employment information because they want to make sure you can make the monthly payments. If you have a source of alternative income outside of a traditional job — unemployment benefits, social security benefits, a side hustle, or a spouse’s income — you may have better chances of getting approved for a loan.

Can you get a loan with no credit check?

Most reputable lenders, even ones that have lower credit score requirements, will require a credit check. Be wary of companies who promise to accept anyone; it may be that they’re more interested in making money off of high fees and APRs than lending responsibly.

What’s the easiest loan to get with poor credit?

In general, secured loans are easier to get than unsecured loans because they’re less risky for the lender. Secured loans also tend to come with lower interest rates than unsecured loans, even if you have poor credit. Secured loans are riskier for the borrower, however, because you could lose your collateral if you don’t make payments.

One type of loan you should avoid is payday loans, which may have low credit score requirements at the cost of high fees and APRs that could dig you deeper into debt. 

How will applying for a poor-credit loan impact my credit score?

When applying for any loan, the lender will run a “hard” credit inquiry on you, meaning they’re pulling your credit report from a credit bureau to assess your creditworthiness. A “hard” credit inquiry can temporarily harm your credit score and may stay on your credit report for two years. Because recent activity accounts for 10% of your credit score, it’s best not to apply for too many new credit accounts in a short period of time.

Sometimes lenders will offer a “soft” credit inquiry to allow you to check if you’re pre-qualified for a loan and what rates you’ll get before you formally apply. “Soft” inquiries will not affect your credit score. 

What documents are required to apply for a bad-credit loan?

Requirements will vary from lender to lender, but in general, here’s what you should have on hand when you apply for a loan:

  • Driver’s license or other type of photo ID
  • Proof of Social Security number
  • Tax returns
  • Paystubs
  • W-2 forms
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Tekmar Group (LON:TGP) makes moderate use of debt https://freebassuk.com/tekmar-group-lontgp-makes-moderate-use-of-debt/ Wed, 09 Mar 2022 07:47:08 +0000 https://freebassuk.com/tekmar-group-lontgp-makes-moderate-use-of-debt/ Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can […]]]>

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett said “volatility is far from synonymous with risk.” So it may be obvious that you need to take debt into account when thinking about the risk of a given stock, because too much debt can sink a business. We can see that Tekmar Group plc (LON:TGP) uses debt in its business. But the real question is whether this debt makes the business risky.

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. In the worst case, a company can go bankrupt if it cannot pay its creditors. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Discover our latest analysis for Tekmar Group

What is the net debt of the Tekmar group?

As you can see below, at the end of September 2021, the Tekmar Group had a debt of £6.05m, up from £3.00m a year ago. Click on the image for more details. On the other hand, he has £3.48m in cash, resulting in a net debt of around £2.57m.

AIM: TGP Debt to Equity History March 9, 2022

A look at the liabilities of the Tekmar group

We can see from the most recent balance sheet that the Tekmar group had liabilities of £12.5m due within a year, and liabilities of £3.65m due beyond . As compensation for these obligations, it had cash of £3.48 million as well as receivables valued at £17.4 million maturing within 12 months. Thus, he can boast that he has £4.68 million more in liquid assets than total Passives.

This excess liquidity suggests that the Tekmar group is taking a cautious approach to debt. Given that he has easily sufficient short-term cash, we don’t think he will have any problems with his lenders. There is no doubt that we learn the most about debt from the balance sheet. But ultimately, the company’s future profitability will decide whether the Tekmar Group can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Last year, the Tekmar Group recorded a loss before interest and tax and actually cut its revenue by 20%, to £31million. This is not what we hope to see.

Caveat Emptor

While Tekmar Group’s declining revenue is about as comforting as a wet blanket, arguably its loss of earnings before interest and taxes (EBIT) is even less appealing. Indeed, it lost a very considerable £3.6 million in EBIT. On the plus side, the company has adequate liquid assets, giving it time to grow and expand before its debt becomes a short-term issue. Still, we would be more encouraged to study the business in depth if it already had free cash flow. This one is a little too risky for our liking. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. Know that Tekmar Group shows 2 warning signs in our investment analysis you should know…

In the end, sometimes it’s easier to focus on companies that don’t even need to take on debt. Readers can access a list of growth stocks with no net debt 100% freeat present.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Sanlorenzo (BIT:SL) appears to be using debt sparingly https://freebassuk.com/sanlorenzo-bitsl-appears-to-be-using-debt-sparingly/ Sat, 05 Mar 2022 07:34:12 +0000 https://freebassuk.com/sanlorenzo-bitsl-appears-to-be-using-debt-sparingly/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note that Sanlorenzo Spa (BIT:SL) has debt on its balance sheet. But should shareholders worry about its use of debt?

When is debt dangerous?

Debt and other liabilities become risky for a business when it cannot easily meet those obligations, either with free cash flow or by raising capital at an attractive price. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash and debt together.

See our latest analysis for Sanlorenzo

What is Sanlorenzo’s debt?

You can click on the chart below for historical figures, but it shows Sanlorenzo had €100.9m in debt in September 2021, up from €106.6m a year earlier. However, he has €139.1m in cash which offsets this, leading to a net cash of €38.3m.

BIT:SL Debt to Equity March 5, 2022

How strong is Sanlorenzo’s balance sheet?

According to the last published balance sheet, Sanlorenzo had liabilities of €265.5 million maturing within 12 months and liabilities of €76.3 million maturing beyond 12 months. In return for these obligations, it had cash of €139.1 million as well as receivables worth €125.6 million at less than 12 months. Thus, its liabilities outweigh the sum of its cash and (short-term) receivables by €77.1 million.

Given that Sanlorenzo has a market capitalization of €1.11 billion, it’s hard to believe that these liabilities pose a big threat. But there are enough liabilities that we certainly recommend that shareholders continue to monitor the balance sheet in the future. Despite its notable liabilities, Sanlorenzo has a net cash position, so it’s fair to say that it’s not heavily leveraged!

On top of that, we are pleased to report that Sanlorenzo increased its EBIT by 76%, reducing the specter of future debt repayments. The balance sheet is clearly the area to focus on when analyzing debt. But ultimately, the company’s future profitability will decide whether Sanlorenzo can strengthen its balance sheet over time. So if you are focused on the future, you can check out this free report showing analyst earnings forecast.

Finally, a business needs free cash flow to pay off its debts; book profits are not enough. Sanlorenzo may have net cash on the balance sheet, but it’s always interesting to see how well the company converts its earnings before interest and taxes (EBIT) into free cash flow, as this will influence both its need and its ability to manage debt. Over the past three years, Sanlorenzo has recorded a free cash flow of 47% of its EBIT, which is lower than expected. It’s not great when it comes to paying off debt.

Abstract

While it is always a good idea to look at a company’s total liabilities, it is very reassuring that Sanlorenzo has 38.3 million euros in net cash. And we liked the look of EBIT growth of 76% YoY last year. So is Sanlorenzo’s debt a risk? This does not seem to us to be the case. There is no doubt that we learn the most about debt from the balance sheet. However, not all investment risks reside on the balance sheet, far from it. Example: we have identified 2 warning signs for Sanlorenzo you should be aware.

If, after all that, you’re more interested in a fast-growing company with a strong balance sheet, check out our list of cash-neutral growth stocks right away.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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MoneyMutual Review: Is Money Mutual Legit or Bad Credit Loan Scam? https://freebassuk.com/moneymutual-review-is-money-mutual-legit-or-bad-credit-loan-scam/ Fri, 04 Mar 2022 09:30:00 +0000 https://freebassuk.com/moneymutual-review-is-money-mutual-legit-or-bad-credit-loan-scam/ MoneyMutual is a payday loan company that lets you borrow from $200 to $5,000 in as little as 24 hours. By filling out a simple form on MoneyMutualyou can instantly connect to 91 lenders to find the best deal in your area. Is MoneyMutual legit? How does Money Mutual work? Keep reading to find out […]]]>

MoneyMutual is a payday loan company that lets you borrow from $200 to $5,000 in as little as 24 hours.

By filling out a simple form on MoneyMutualyou can instantly connect to 91 lenders to find the best deal in your area.

Is MoneyMutual legit? How does Money Mutual work? Keep reading to find out everything you need to know about this payday loan website.

What is MoneyMutual?

MoneyMutual, available online at MoneyMutual.com, is a payday loan website that lets you get $200 to $5,000 deposited into your account within 24 hours.

Simply complete the form on MoneyMutual.com to get started and you can instantly see offers from lenders serving your area.

MoneyMutual is one of the most trusted payday loan websites available online today. With over 2,000,000 customers to date, MoneyMutual has a proven track record of providing customers with the payday loans they need. You can see MoneyMutual commercials on TV, and TV’s Montel Williams was a spokesperson for MoneyMutual for almost a decade.

How does MoneyMutual work?

MoneyMutual makes it easy to get a short term loan in 24 hours or less and is easily one of the best bad credit loan providers of 2022.

As long as you’re 18, have at least $800 a month of verifiable income, and have a checking account, you should be able to find a payday loan through MoneyMutual.

Simply enter your information into MoneyMutual.com, then view payday lender offers. MoneyMutual partners with over 90 companies to ensure customers can get the payday loans they need when they need them.

After choosing the offer via MoneyMutual’s online comparison screenyou visit the lender’s website, fill in additional information and get the money you need as soon as possible.

Here’s how it works:

  • Step 1) Provide your information: Fill out the form on MoneyMutual.com and MoneyMutual sends your information to the lenders.
  • Step 2) Lender Review: Lenders verify your information instantly to determine the right person. Then they show you their best offer on the next page.
  • Step 3) Get your money: Browse a list of loan offers and get funds deposited into your bank account in as little as 24 hours.

You can use MoneyMutual for loans ranging from $200 to $5,000.

How much does Money Mutual cost?

MoneyMutual is available for free. You fill out the form and submit your information for free via the online marketplace.

However, once you choose a lender through MoneyMutual, that lender charges a fee in exchange for lending money. Read the terms carefully to make sure you understand how much it costs to borrow.

How long does it take to use MoneyMutual?

It takes about five minutes to complete the MoneyMutual online form. If you have used MoneyMutual before and are a loyal customer, it takes even less time.

Once you fill in the online form and select an offer, you can get the money in your account in just 24 hours.

How do MoneyMutual lenders work?

MoneyMutual works with over 90 lenders to find the best deal for your unique needs. Each lender considers your personal information and financial data provided by you to ensure an optimal match.

Here’s how lenders look at your information, according to MoneyMutual:

  • Lenders automatically review your information after you submit an application through the website
  • Each lender follows the previously established requirements to make a decision
  • If a lender decides that they want to lend you money, you will be redirected to their website, where you can review the terms of the loan and accept the loan.
  • Lenders may also contact you to verify your personal information, confirm your bank account number and finalize the loan.

That’s it. Like other payday lenders, payday lenders with MoneyMutual are legally required to disclose all fees up front. The law also prevents them from charging excessive annual interest rates. Check all fees and charges in advance to avoid any surprises.

What’s the catch?

There is no “trap” in using MoneyMutual. The website genuinely connects you with payday lenders and short-term lenders in your area who can lend you money as quickly as possible.

Be sure to read the terms and conditions on your lender’s website to make sure you understand the terms of the contract. Although MoneyMutual is a free service, each lender has its own terms and conditions.

MoneyMutual Reviews: What Customers Are Saying

The payday loan industry is filled with shady companies. However, MoneyMutual is one of the best known and oldest companies in the industry. With celebrity endorsements from Montel Williams and over a decade of experience, MoneyMutual has helped over 2 million people access the money they need.

Here are some of the MoneyMutual reviews from verified customers online:

Most customers agree that MoneyMutual works as advertised to provide them with sources of short-term funding, bringing borrowers and lenders together in a transparent marketplace.

Customers love MoneyMutual because of the transparent rates and lending system, which makes it easy to see the best deal from each lender

Many use MoneyMutual after seeing the advertisements on television, finding that MoneyMutual lives up to its claims of providing efficient loans to people in need.

Some customers even praise MoneyMutual’s customer service, which is not the strong point of most payday loan companies.

Negative reviews tend to leave bad reviews because of bad interactions with the third-party lender, not because of bad interactions with MoneyMutual; some lenders have high interest rates and fees, for example, which may surprise customers who don’t read the terms and conditions

MoneyMutual Requirements

To borrow money through MoneyMutualyou must meet the following conditions:

  • Be at least 18 years old
  • Have at least $800 per month of verifiable income
  • Have a checking account

Some lenders require additional items from borrowers, such as an SSN. Others, however, require no additional information or data.

About MoneyMutual

MoneyMutual is a free online resource based in Las Vegas, Nevada. The company is not a lender: it partners with lenders to help people find payday loans for their short-term financial needs.

Between 2010 and 2018, Montel Williams was the spokesperson for MoneyMutual.

You can contact MoneyMutual via:

  • E-mail: customerservice@moneymutual.com
  • Call: 844-276-2063

Last word

40% of Americans would not be able to come up with $400 in an emergency, according to the Economic Well-Being of US Households report.

To get a fast, easy and affordable payday loan from a trusted lender, visit MoneyMutual.com today. The website connects you with dozens of lenders in your area to ensure you get the best deal, and you can get $200 to $5,000 deposited into your account in as little as 24 hours.

To learn more about MoneyMutual or to apply online today, visit the official website at MoneyMutual.com.

Affiliate Disclosure:

Links in this product review may result in a small commission if you choose to purchase the recommended product at no additional cost to you. This serves to support our research and writing team. Know that we only recommend high quality products.

Warning:

Please understand that any advice or guidance revealed here does not even remotely replace sound medical or financial advice from a licensed healthcare provider or certified financial advisor. Be sure to consult a professional doctor or financial advisor before making any purchasing decisions if you are using any medications or have any concerns from the review details shared above. Individual results may vary as statements regarding these products have not been evaluated by the Food and Drug Administration or Health Canada. The effectiveness of these products has not been confirmed by the FDA or Health Canada approved research. These products are not intended to diagnose, treat, cure, or prevent any disease or to provide any type of enrichment program.

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The news and editorial team at Sound Publishing, Inc. played no role in the preparation of this post. The views and opinions expressed in this sponsored post are those of the advertiser and do not reflect those of Sound Publishing, Inc.

Sound Publishing, Inc. accepts no responsibility for any loss or damage caused by the use of any product, and we do not endorse any product displayed on our Marketplace.

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Best Loans for Bad Credit in 2022: Online Options https://freebassuk.com/best-loans-for-bad-credit-in-2022-online-options/ Tue, 01 Mar 2022 08:00:00 +0000 https://freebassuk.com/best-loans-for-bad-credit-in-2022-online-options/ While bad credit can make it harder to get affordable financing, it doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products to people in your credit range. We’ve ranked and rated our partner lenders to help you find the best bad credit personal […]]]>

While bad credit can make it harder to get affordable financing, it doesn’t mean you can’t qualify for a bad credit loan. You just need to look for lenders who offer financial products to people in your credit range.

We’ve ranked and rated our partner lenders to help you find the best bad credit personal loans.

Note that we do not recommend any lender offering loans with APRs above 36%. Before turning to these loans, you should see if you can qualify for the lenders on this page, other loans with rates below 36%, or alternatives highlighted below.

In this guide:

Best Personal Loan Companies with Bad Credit

Personal loan options for bad credit

  • Rates from 7.99% APR
  • You can check rates without hurting your credit score
  • Quick funding

Upstart logo

  • Rates from 8.13% APR1
  • Low minimum loan amount
  • 10-day grace period for late payment

Here are brief comments on our personal loan partners who offer loans to people with bad credit.

To improve

Rates (APR)

7.99%35.97%

Loan amounts

$1,000$35,000

Upgrading is a great option for borrowers on the upper end of the bad credit spectrum, as well as those who need smaller loans.

One of the benefits of upgrading is that you can check your eligibility and rates without affecting your credit score. Also, eligibility is based more on free cash flow compared to other lenders, so you can qualify for a lower rate with Upgrade compared to other bad credit lenders.

  • Flexible credit to check rates: Yes
  • Filing deadline: The next day
  • Creation costs: 2.9% – 8%
  • Late charge: $10
  • Repayment Terms : 36 or 60 months

Reached

Rates (APR)

6.27%- 35.99%1

Loan amounts

$5,000$30,0002

Upstart is another great option for borrowers with bad credit because they offer competitive rates, a wide range of loan amounts, and funding as fast as one business day.3.

You can check your rates without affecting your credit score4 and use the funds for almost any expense. Note that the minimum credit score for Upstart varies depending on the state you live in.

  • Flexible credit to check rates: Yes
  • Filing deadline: As fast as one business day
  • Creation costs: 0% – 10%
  • Late charge: $5 or 15% of payment (whichever is greater)
  • Repayment Terms : 36 months or 60 months

>> Learn more: How to get a loan without a credit check

How We Choose The Best Bad Credit Loans

To find the best personal loans for bad credit, our editorial team analyzed each of our lending partners for BBB rating, Trustpilot rating, interest rates, loan amounts, terms, deposit times, fees origination fees, late fees, other fees, initial credit draw availability, perks, and more. Learn more about our ratings and methodology here.

If you want to see other options, check out these reviews:

Should you take out a personal loan if you have bad credit?

Why do you need it ?

If you have bad credit and are considering a personal loan, the most important thing you can do is ask yourself why you need this loan. If you’re paying off high-interest debt or have a pressing emergency, a personal loan may be a reasonable financing option.

However, since bad credit personal loans often come with extremely high interest rates and fees, the total cost of the loan is rarely worth unnecessary shopping. As such, you may want to consider other options before using a personal loan to buy a car, renovate your home, or go on vacation.

Can you improve your credit rating first?

If you have bad credit, it’s not the end of the world. You can still get loans from some lenders, but you can decide to wait and improve your credit if you get rejected for a loan or want better interest rates.

There are many ways to improve your credit, but not all are quick fixes. The best way to improve your credit is to borrow responsibly and pay down your debt over time.

If you can increase your score to even 20 points, you may qualify for different lenders and better rates. This can have a huge impact on the final cost of your loan.

Be ready to repay if you take out a loan

If you need to take out a personal loan with bad credit, it’s imperative that you make sure your budget can accommodate repayment obligations for the term of the loan.

By making regular payments, you may find that a personal loan can help you build your credit; however, failure to make timely payments can have a negative effect, leaving your score even lower than it was.

>> Learn more: Where to find small personal loans

What about payday loans?

Although a payday loan may seem like an attractive option for those with bad credit, it generally represents one of the most dangerous loan products on the market today.

Payday lenders offer immediate cash in exchange for automatic payment (by post-dated check or direct debit agreement). However, the repayment includes the loan amount plus a significant amount of interest, often around 400%.

These loans often make it even harder to get out of debt and can hurt your financial future.

>> Learn more: Alternatives for getting out of the payday loan cycle

Alternatives to personal loans for bad credit

Before taking out a loan for bad credit, it is important to determine if there are cheaper alternatives that you can turn to. The main factor in the total cost of your loan (and most financial products) is the interest rate and associated fees.

Here are some guides to other financial products you may want to explore before taking out a bad credit personal loan:

Bottom Line: Finding the Right Bad Credit Loan

Although bad credit can make it harder to get a personal loan, it’s not impossible. There are several lenders who specialize in subprime loans and are willing to work with consumers with poor or no credit.

However, keep in mind that these bad credit loans usually come with high interest rates and limited terms. As such, it’s best to think about the reason for your loan and, if possible, work on improving your credit score before applying.


1 The full range of available rates varies by state. The average 3-year loan offered to all lenders using the Upstart platform will have an APR of 21.97% and 36 monthly payments of $35 per $1,000 borrowed. For example, the total cost of a $10,000 loan would be $12,646, including an origination fee of $626. The APR is calculated based on the 3-year rates offered in the last month. There is no down payment or prepayment penalty. Your APR will be determined based on your credit, income, and certain other information provided in your loan application.

2 Your loan amount will be determined based on your credit, income, and certain other information provided in your loan application. Not all applicants will be eligible for the full amount. Loans are not available in West Virginia or Iowa. The minimum loan amount in MA is $7,000. The minimum loan amount in Ohio is $6,000. The minimum loan amount in NM is $5100. The minimum loan amount in GA is $3,100.

3 If you accept your loan before 5 p.m. EST (excluding weekends and holidays), you will receive your funds the next business day. Loans used to fund education-related expenses are subject to a 3 business day waiting period between loan acceptance and funding in accordance with federal law.

4 When you check your rate, we check your credit file. This initial (soft) inquiry will not affect your credit score. If you accept your rate and continue with your application, we will do another (hard) credit check which will impact your credit score. If you take out a loan, repayment information will be reported to the credit bureaus.

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$21.52 million in sales expected for Capital Southwest Co. (NASDAQ:CSWC) this quarter https://freebassuk.com/21-52-million-in-sales-expected-for-capital-southwest-co-nasdaqcswc-this-quarter/ Sun, 27 Feb 2022 01:41:04 +0000 https://freebassuk.com/21-52-million-in-sales-expected-for-capital-southwest-co-nasdaqcswc-this-quarter/ Equity research analysts expect Capital Southwest Co. (NASDAQ: CSWC – Get a rating) will announce revenue of $21.52 million for the current fiscal quarter, according to Zacks. Four analysts have released Capital Southwest earnings estimates, with estimates ranging from $21.32 million to $21.63 million. Capital Southwest posted sales of $17.17 million in the same quarter […]]]>

Equity research analysts expect Capital Southwest Co. (NASDAQ: CSWC – Get a rating) will announce revenue of $21.52 million for the current fiscal quarter, according to Zacks. Four analysts have released Capital Southwest earnings estimates, with estimates ranging from $21.32 million to $21.63 million. Capital Southwest posted sales of $17.17 million in the same quarter last year, suggesting a positive year-over-year growth rate of 25.3%. The company is expected to release its next quarterly results on Tuesday, May 24.

According to Zacks, analysts expect Capital Southwest to report full-year sales of $82.70 million for the current fiscal year, with estimates ranging from $82.51 million to $82.82 million. dollars. For the next fiscal year, analysts expect the company to post sales of $92.36 million, with estimates ranging from $89.83 million to $95.95 million. Zacks sales calculations are an average based on a survey of research analysts who provide coverage for Capital Southwest.

Capital Southwest (NASDAQ:CSWC – Get a rating) last released its results on Monday, January 31. The asset manager reported earnings per share of $0.51 for the quarter, beating the Zacks consensus estimate of $0.47 by $0.04. Capital Southwest had a net margin of 42.58% and a return on equity of 10.50%. During the same quarter last year, the company posted EPS of $0.45.

(A d)

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Several stock analysts have recently released reports on the company. JMP Securities reiterated a “buy” rating on Capital Southwest shares in a Wednesday, November 3, research report. TheStreet downgraded shares of Capital Southwest from a “b-” rating to a “c” rating in a research memo on Friday, February 4. Ultimately, Zacks Investment Research downgraded Capital Southwest from a “buy” rating to a “hold” rating in a Monday, Feb. 7 research report. Three analysts gave the stock a hold rating and three gave the company a buy rating. Based on data from MarketBeat, the stock has an average rating of “Buy” and an average price target of $26.50.

Hedge funds have recently changed their positions in the stock. BlackRock Inc. increased its position in Capital Southwest by 7.6% in the 4th quarter. BlackRock Inc. now owns 160,722 shares of the asset manager valued at $4,063,000 after acquiring an additional 11,416 shares last quarter. Virtu Financial LLC bought a new position in shares of Capital Southwest in the fourth quarter worth $392,000. Advisors Asset Management Inc. increased its stake in shares of Capital Southwest by 6.0% in the fourth quarter. Advisors Asset Management Inc. now owns 185,769 shares of the asset manager worth $4,696,000 after purchasing an additional 10,557 shares in the last quarter. Marshall Wace LLP increased its stake in shares of Capital Southwest by 109.8% in the fourth quarter. Marshall Wace LLP now owns 52,310 shares of the asset manager worth $1,322,000 after purchasing an additional 27,378 shares in the last quarter. Finally, DE Shaw & Co. Inc. bought a new position in shares of Capital Southwest in the fourth quarter at a value of $231,000. 23.94% of the shares are currently held by institutional investors.

Stock CSWC opened at $24.48 on Friday. The company has a debt ratio of 0.56, a quick ratio of 0.10 and a current ratio of 0.10. Capital Southwest has a 52-week low of $20.70 and a 52-week high of $28.41. The company’s fifty-day moving average is $24.94 and its 200-day moving average is $26.12. The company has a market capitalization of $585.81 million, a P/E ratio of 15.90 and a beta of 1.17.

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 31. Shareholders of record on Tuesday, March 15 will receive a dividend of $0.48. This is a boost from Capital Southwest’s previous quarterly dividend of $0.47. This represents a dividend of $1.92 on an annualized basis and a dividend yield of 7.84%. The ex-dividend date is Monday, March 14. Capital Southwest’s dividend payout ratio is currently 122.08%.

About the Southwest Capital (Get a rating)

Capital Southwest is a public business development company with total assets of $496 million as of June 30, 2010. We provide patient capital to exceptional companies with significant growth potential. As a public company, we have the ability to hold investments indefinitely, which has provided the management teams of our holdings with a stable ownership platform since our inception in 1961.

Read more

Get a Free Copy of Zacks Research Report on Capital Southwest (CSWC)

For more information on Zacks Investment Research’s research offerings, visit Zacks.com

Earnings history and estimates for Capital Southwest (NASDAQ: CSWC)

This instant alert was powered by MarketBeat’s narrative science technology and financial data to provide readers with the fastest and most accurate reports. This story was reviewed by MarketBeat’s editorial team prior to publication. Please send questions or comments about this story to [email protected]

Should you invest $1,000 in Capital Southwest right now?

Before you consider Capital Southwest, you’ll want to hear this.

MarketBeat tracks Wall Street’s top-rated, top-performing research analysts daily and the stocks they recommend to their clients. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the market takes off…and Capital Southwest didn’t make the list.

While Capital Southwest currently has a “Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

See the 5 actions here

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Famous brands (JSE:FBR) could risk shrinking as a business https://freebassuk.com/famous-brands-jsefbr-could-risk-shrinking-as-a-business/ Fri, 25 Feb 2022 06:20:12 +0000 https://freebassuk.com/famous-brands-jsefbr-could-risk-shrinking-as-a-business/ When researching a stock for investment purposes, what can tell us that the company is in decline? More often than not we will see a decline to return to on capital employed (ROCE) and a decrease amount capital employed. This reveals that the company is not increasing shareholder wealth because returns are falling and its […]]]>

When researching a stock for investment purposes, what can tell us that the company is in decline? More often than not we will see a decline to return to on capital employed (ROCE) and a decrease amount capital employed. This reveals that the company is not increasing shareholder wealth because returns are falling and its net asset base is shrinking. And from a first reading, things don’t look very good to Famous brands (JSE:FBR), so let’s see why.

Understanding return on capital employed (ROCE)

Just to clarify if you’re not sure, ROCE is a measure of the pre-tax income (as a percentage) that a business earns on the capital invested in its business. Analysts use this formula to calculate it for famous brands:

Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets – Current Liabilities)

0.29 = R626m ÷ (R3.0b – R835m) (Based on the last twelve months to August 2021).

So, Famous Brands has a ROCE of 29%. In absolute terms, this is an excellent return and is even better than the hotel industry average of 7.2%.

Check out our latest analysis for famous brands

JSE:FBR Return on Capital Employed February 25, 2022

Historical performance is a great starting point when researching a stock. So above you can see the Famous Brands ROCE gauge compared to its past returns. If you want to see how Famous Brands have performed in the past in other metrics, you can check out this free chart of past profits, revenue and cash flow.

What can we say about the ROCE trend of famous brands?

Caution should be exercised with famous brands, as yields are on the decline. To be more precise, the ROCE was 43% five years ago, but since then it has fallen significantly. In addition to this, it should be noted that the amount of capital used within the company remained relatively stable. Companies that exhibit these attributes tend not to shrink, but they can be mature and face pressure on their margins from the competition. If these trends continue, we don’t expect Famous Brands to turn into a multi-bagger.

Similarly, Famous Brands reduced its current liabilities to 28% of total assets. This could partly explain why ROCE fell. Additionally, it may reduce some aspects of risk to the business, as the business’s suppliers or short-term creditors now fund less of its operations. Since the company is essentially funding more of its operations with its own money, one could argue that this has made the company less efficient at generating a return on investment.

In conclusion…

In summary, it is unfortunate that Famous Brands generates lower returns from the same amount of capital. It’s no surprise, then, that the stock has fallen 54% in the past five years, so it seems investors are acknowledging these changes. That being the case, unless the underlying trends return to a more positive trajectory, we would consider looking elsewhere.

If you want to know some of the risks famous brands face, we found 3 warning signs (2 are a bit of a concern!) that you should be aware of before investing here.

Famous Brands is not the only stock to generate high returns. If you want to see more, check out our free list of companies with high returns on equity with strong fundamentals.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Does Petrus Resources (TSE:PRQ) have a healthy balance sheet? https://freebassuk.com/does-petrus-resources-tseprq-have-a-healthy-balance-sheet/ Sun, 20 Feb 2022 14:42:15 +0000 https://freebassuk.com/does-petrus-resources-tseprq-have-a-healthy-balance-sheet/ Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very […]]]>

Howard Marks said it well when he said that, rather than worrying about stock price volatility, “the possibility of permanent loss is the risk I worry about…and that every practical investor that I know is worried”. So it seems smart money knows that debt – which is usually involved in bankruptcies – is a very important factor when you’re assessing a company’s risk. We can see that Petrus Resources Ltd. (TSE:PRQ) uses debt in its business. But the real question is whether this debt makes the business risky.

What risk does debt carry?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. An integral part of capitalism is the process of “creative destruction” where bankrupt companies are mercilessly liquidated by their bankers. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, the advantage of debt is that it often represents cheap capital, especially when it replaces dilution in a business with the ability to reinvest at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Discover our latest analysis for Petrus Resources

What is Petrus Resources net debt?

As you can see below, Petrus Resources had C$59.5 million in debt as of September 2021, up from C$115.8 million the previous year. On the other hand, it has C$1.51 million in cash, resulting in a net debt of approximately C$58.0 million.

TSX:PRQ Debt to Equity Historical February 20, 2022

A look at the liabilities of Petrus Resources

Zooming in on the latest balance sheet data, we can see that Petrus Resources had liabilities of C$79.5 million due within 12 months and liabilities of C$40.2 million due beyond. On the other hand, it had liquid assets of 1.51 million Canadian dollars and 9.16 million Canadian dollars of receivables due within one year. Thus, its liabilities outweigh the sum of its cash and (current) receivables of C$109.0 million.

This deficit is considerable compared to its market capitalization of 149.2 million Canadian dollars, so it suggests that shareholders monitor the use of debt by Petrus Resources. If its lenders asked it to shore up its balance sheet, shareholders would likely face significant dilution.

In order to assess a company’s debt relative to its earnings, we calculate its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and its earnings before interest and taxes (EBIT) divided by its expenses. interest (its interest coverage). In this way, we consider both the absolute amount of debt, as well as the interest rates paid on it.

Even though Petrus Resources’ debt is only 2.2, its interest coverage is really very low at 0.27. The main reason for this is that it has such high depreciation and amortization. These fees may be non-monetary, so they could be excluded when it comes to repaying the debt. But accounting fees are there for a reason: some assets seem to lose value. Either way, it’s safe to say that the company has significant debt. Notably, Petrus Resources recorded a loss in EBIT last year, but improved it to a positive EBIT of C$2.6 million over the last twelve months. There is no doubt that we learn the most about debt from the balance sheet. But you can’t look at debt in total isolation; since Petrus Resources will need revenue to repay this debt. So, if you want to know more about its earnings, it might be worth checking out this graph of its long-term trend.

Finally, while the taxman may love accounting profits, lenders only accept cash. It is therefore important to check how much of its earnings before interest and taxes (EBIT) converts into actual free cash flow. Fortunately for all shareholders, Petrus Resources has actually produced more free cash flow than EBIT over the past year. This kind of high cash conversion gets us as excited as the crowd when the beat drops at a Daft Punk concert.

Our point of view

Neither the ability of Petrus Resources to cover its interest charges with its EBIT nor its level of total liabilities gave us confidence in its ability to take on more debt. But the good news is that it seems to be able to easily convert EBIT to free cash flow. We think Petrus Resources’ debt makes it a bit risky, after looking at the aforementioned data points together. Not all risk is bad, as it can increase stock price returns if it pays off, but this leverage risk is worth keeping in mind. When analyzing debt levels, the balance sheet is the obvious starting point. But at the end of the day, every business can contain risks that exist outside of the balance sheet. Be aware that Petrus Resources displays 2 warning signs in our investment analysis and 1 of them does not suit us too much…

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Parsvnath Developers (NSE:PARSVNATH) seems to use a lot of debt https://freebassuk.com/parsvnath-developers-nseparsvnath-seems-to-use-a-lot-of-debt/ Sat, 19 Feb 2022 02:53:23 +0000 https://freebassuk.com/parsvnath-developers-nseparsvnath-seems-to-use-a-lot-of-debt/ Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note […]]]>

Legendary fund manager Li Lu (whom Charlie Munger once backed) once said, “The greatest risk in investing is not price volatility, but whether you will suffer a permanent loss of capital. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We note that Parsvnath Developers Limited (NSE:PARSVNATH) has debt on its balance sheet. But does this debt worry shareholders?

What risk does debt carry?

Debt helps a business until the business struggles to pay it back, either with new capital or with free cash flow. Ultimately, if the company cannot meet its legal debt repayment obligations, shareholders could walk away with nothing. Although not too common, we often see companies in debt permanently diluting their shareholders because lenders force them to raise capital at a ridiculous price. Of course, debt can be an important tool in businesses, especially capital-intensive businesses. The first thing to do when considering how much debt a business has is to look at its cash flow and debt together.

Check out our latest analysis for Parsvnath Developers

What is Parsvnath Developers net debt?

You can click on the graph below for historical figures, but it shows that as of September 2021, Parsvnath developers had ₹36.4 billion in debt, an increase from ₹30.1 billion, on a year. On the other hand, he has ₹1.05 billion in cash, resulting in a net debt of around ₹35.4 billion.

NSEI: PARSVNATH Debt to Equity History February 19, 2022

A Look at the Responsibilities of Parsvnath Developers

According to the latest published balance sheet, Parsvnath Developers had liabilities of ₹52.0 billion due within 12 months and liabilities of ₹26.0 billion due beyond 12 months. As compensation for these obligations, it had cash of ₹1.05 billion as well as receivables valued at ₹2.91 billion due within 12 months. Thus, its liabilities total ₹74.1 billion more than the combination of its cash and short-term receivables.

This deficit casts a shadow over the ₹7.18 billion society, like a colossus towering above mere mortals. So we definitely think shareholders need to watch this one closely. Ultimately, Parsvnath Developers would likely need a major recapitalization if its creditors were to demand repayment.

We measure a company’s leverage against its earning power by looking at its net debt divided by its earnings before interest, taxes, depreciation and amortization (EBITDA) and calculating how easily its earnings before interest and taxes (EBIT ) covers its interest charge (interest coverage). Thus, we consider debt to earnings with and without amortization and depreciation expense.

Low interest coverage of 0.11x and an extremely high net debt to EBITDA ratio of 54.6 shook our confidence in Parsvnath Developers like a punch in the gut. This means that we would consider him to be heavily indebted. Worse still, Parsvnath Developers has seen its EBIT soar to 26% over the past 12 months. If profits continue like this in the long term, there is an unimaginable chance of repaying this debt. There is no doubt that we learn the most about debt from the balance sheet. But you can’t look at debt in total isolation; since Parsvnath Developers will need revenue to repay this debt. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

Finally, while the taxman may love accounting profits, lenders only accept cash. We must therefore clearly examine whether this EBIT generates a corresponding free cash flow. Over the past two years, Parsvnath Developers has actually produced more free cash flow than EBIT. This kind of strong cash generation warms our hearts like a puppy in a bumblebee suit.

Our point of view

To be frank, Parsvnath Developers’ EBIT growth rate and track record of keeping total liabilities under control makes us rather uncomfortable with its level of leverage. But on the bright side, its conversion from EBIT to free cash flow is a good sign and makes us more optimistic. Considering all the above factors, it seems that Parsvnath Developers has too much debt. That kind of risk is acceptable to some, but it certainly doesn’t float our boat. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example Parsvnath Developers has 3 warning signs (and 1 which is significant) that we think you should know about.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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Ilex Medical (TLV:ILX) could easily take on more debt https://freebassuk.com/ilex-medical-tlvilx-could-easily-take-on-more-debt/ Mon, 14 Feb 2022 04:25:01 +0000 https://freebassuk.com/ilex-medical-tlvilx-could-easily-take-on-more-debt/ Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. […]]]>

Berkshire Hathaway’s Charlie Munger-backed outside fund manager Li Lu is quick to say, “The biggest risk in investing isn’t price volatility, but whether you’re going to suffer a permanent loss of capital “. It’s natural to consider a company’s balance sheet when looking at its riskiness, as debt is often involved when a company fails. We can see that Ilex Medical Ltd (TLV:ILX) uses debt in its business. But does this debt worry shareholders?

Why is debt risky?

Generally speaking, debt only becomes a real problem when a company cannot easily repay it, either by raising capital or with its own cash flow. In the worst case, a company can go bankrupt if it cannot pay its creditors. However, a more common (but still painful) scenario is that it has to raise new equity at a low price, thereby permanently diluting shareholders. By replacing dilution, however, debt can be a great tool for companies that need capital to invest in growth at high rates of return. When we think about a company’s use of debt, we first look at cash and debt together.

Discover our latest analysis for Ilex Medical

What is Ilex Medical’s net debt?

You can click on the graph below for historical figures, but it shows that Ilex Medical had a debt of ₪6.09 million in September 2021, compared to ₪26.8 million a year before. However, he has ₪192.8 million in cash to offset this, resulting in a net cash of ₪186.7 million.

TASE: ILX Debt to Equity February 14, 2022

A look at Ilex Medical’s responsibilities

We can see from the most recent balance sheet that Ilex Medical had liabilities of £267.7m due within a year, and liabilities of £59.7m due beyond . In return, he had ₪192.8 million in cash and ₪300.0 million in debt due within 12 months. He can therefore boast of having 165.4 million more liquid assets than total Passives.

This surplus suggests that Ilex Medical has a conservative balance sheet, and could probably deleverage without much difficulty. Simply put, the fact that Ilex Medical has more cash than debt is arguably a good indication that it can safely manage its debt.

On top of that, we are pleased to report that Ilex Medical increased its EBIT by 65%, reducing the specter of future debt repayments. There is no doubt that we learn the most about debt from the balance sheet. But it is Ilex Medical’s results that will influence the balance sheet in the future. So, when considering debt, it is definitely worth looking at the earnings trend. Click here for an interactive preview.

Finally, a company can only repay its debts with cash, not book profits. Ilex Medical may have net cash on the balance sheet, but it is always interesting to see how well the company converts its earnings before interest and taxes (EBIT) into free cash flow, as this will influence both its need and its capacity. . to manage debt. Over the past three years, Ilex Medical has produced strong free cash flow equivalent to 69% of its EBIT, which is what we expected. This cold hard cash allows him to reduce his debt whenever he wants.

Summary

While we sympathize with investors who find debt a concern, you should bear in mind that Ilex Medical has a net cash position of ₪186.7 million, as well as more liquid assets than liabilities. And it has impressed us with its 65% EBIT growth over the past year. Is Ilex Medical’s debt then a risk? This does not seem to us to be the case. The balance sheet is clearly the area to focus on when analyzing debt. But at the end of the day, every business can contain risks that exist outside of the balance sheet. For example – Ilex Medical has 1 warning sign we think you should know.

Of course, if you’re the type of investor who prefers to buy stocks without the burden of debt, then feel free to check out our exclusive list of cash-efficient growth stocks today.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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