In the latest of our series looking at the terms used when discussing finance and the products associated with it, we move on in the alphabet. Next up on our finance checklist – L.
What those that provide finance do. Those that take advantage of them are borrowers. Lending is something we all do to some extent, and the industry has existed for millennia.
You will naturally be aware of what this is. It is a type of insurance policy that can help minimise the financial impact that your death could have on your loved ones. If you die or if you’re diagnosed with a terminal illness with a life expectancy of less than 12 months, for the entire length of the life insurance policy, it should pay out a cash sum.
This may seem like a strange thing to put in a finance glossary, but we feel it is important to mention it to those that borrow, or are considering doing so. You should only borrow if making repayments does not impact on your ability to deal with normal, regular living costs. Only borrow what you can afford to pay back.
The key to everything we do! You of course know what loans are, but may be less aware of the options out there. The market is crowded for financial products of all types, which is a key reason we set up Moolr. We wanted to create a clearer path for those wishing to borrow money. Hence why we collected market-leading lenders in one convenient place. As for the loans themselves, the term can apply to any financial product that involved an individual or institution borrowing funds from another company or even individual. Loans have been around for thousands of years, and are a vital assistance for those that require funds on the short or long term. After all, mortgages are a loan in another name. Many of us borrow to purchase property, then pay it off.
There is more than one way to obtain a loan, in what is a very competitive industry. You can apply via your bank or building society. You can go straight to the website of a lender, and see what they can offer. Or you could contact them directly perhaps. What Moolr do is a loan brokering service. What this means is that we are not directly providing the funds for someone who takes out a loan via our site. What we do instead is source a lender, and if you proceed, your agreement is with them. The advantage of this is that you get to see what is on offer in one convenient place. What’s more, we do not take a free form you, and you can get a no-obligation quote before committing. You will not be pressured to do so. Loan brokers are commonplace in the UK.
A loan that can be short, medium or long term, but is essentially a loan that is taken out using your vehicle as an asset. This is merely a precaution should the borrower struggle to make repayments. This is not one of the most common products on the market. It tends to favour those that have a mixed credit history and thus have struggled to get finance elsewhere. Moolr do not offer logbook loans.