Financing Explained for a Layman

by Irfan Haider Irfn Haider

There are many terms in a well-going organization. One of the terms you might have heard of is financing. Financing basically is a field that deals with the study of investments. It includes the dynamics of assets and liabilities over time under conditions of different degrees of uncertainties and risks. Finance includes many aspects involving money and property.

You cannot just describe anything and unrelated it to finance, it is directly or indirectly related to financing. Every company involves a special team of finance which looks after the well being of the money flow, the accounts management and the nature of the operation in money in that particular company. Although finance includes management of money, there is something else related to it, properties. As we now know that properties are directly or indirectly related to financing we can easily make money out of it. We can even take loans by showing our collateral amount in the bank or we can just show them our property we own to take the loan. We will further discuss this topic in brief below.

So let us begin by understanding how actually they give out money on loans. Basically, the process includes a few papers which are handled by professionals, but you need to know them as a basic understanding of things. What these firms do is that they take a collateral worth of something from you before lending out the money to you. Suppose you need some money say 50000$ for some personal things, and you don’t have any money and want to take a loan. The loan granting firm will ask for a significant worth of collateral from you before sanctioning the papers for approval of loans. Leave alone the loan money, the sanction paper only will take half a month at least for approval and another one month for the money to get deposited in our account.

After all these messes, if there is still desire to purchase or spend the money you got, you can use it. But in most of the cases, the time duration taken by the loan to get sanctioned is way too much and often results in getting the expiry of the offer. To avoid this we recommend that you choose firms which are strict in their timelines and do the entire processing hassle free. There are plenty of firms which do hustle free processing even without a day’s delay. I cannot recall all of them, although I still remember SkyCap financial to be in one such category. SkyCap loans were quite famous in Canada and have positive reviews.

But after all, it completely depends on you to choose. This was the property based collateral. There is collateral of Gold. There is not much difference between these two, just in this gold case, the collateral is collected in form of metal (i.e Gold) worth the value of money disbursed as the loan. You fix the monthly installment for the same and deposit the gold in their locker after processing the sanctioning papers. This way you can also get good and hustle free processing.