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How to read Candlestick patterns for algo trading?

Sam Allcock
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How to read Candlestick patterns for algo trading?

Traders typically conduct two types of analyses to evaluate the performance of an asset, i.e, fundamentals and technicals. The former deals with the basic qualitative and quantitative information underlying a company such as revenue, industry trends, etc, however, these factors are sometimes not reflected accurately in the market price of the asset.

Technical analysis gives traders insights necessary for navigating the gap between intrinsic and market value based on historical performance. It involves the use of statistical analysis and behavioural economics to predict price movements. An algo trading online course helps traders understand various theories behind fundamental and technical analysis, allowing them to make informed decisions.

Here, we take a detailed look into candlesticks, one of the most popular forms of technical analysis and how to read the patterns for algo trading. If you want to learn more about trading and investing, consider algorithmic trading courses to learn more about various investing styles from experienced professionals.

What are candlesticks?

Candlesticks are one type of technical chart used to describe the historical performance of an asset, i.e. currency, derivatives, securities, etc. over a certain period of time. In addition to the opening and closing prices, a candlestick for any security also contains the highest and the lowest price points in a day. The consequent build pattern can be used for predicting the price direction once completed.

When using indicators like candlesticks, it is best to use them in conjunction with other forms of analyses, which can include trend analysis, price action, price patterns, and fundamentals. This is due to the fact that candlesticks are essentially just visual data and interpretation of the information is highly subjective. A series of red candles can be bearish for one investor and an entry point for another.

Algo trading courses are beneficial for traders in every major financial market and allow them to time the trades correctly at the best price by studying various indicators.

Interpreting a candlestick chart

The appearance of the candlestick’s real body and the shadows offer a ton of information about the state of the market in the coming days. Candlesticks visualise the size of the price movement in a day and traders use this information to make trading decisions. Trading courses are the best way to learn how to read patterns to predict price point movements in the short term future.

The candlestick has a wide part, called the “real body” and one or two “wicks” protruding from either side of the candle. The real body depicts the price range between the opening and closing prices of the day. The colour of the candlestick is determined by the market forces. So, if the real body is hollow or green, it indicates an upward trend over the earlier closing position, while black or red indicates a downward trend over the earlier closing position. High frequency trading coursesteach how to study various patterns in a candlestick chart for making real-time decisions.

Anatomy of candlesticks

Similar to a bar chart, a daily candlestick chart shows four elements.

  • Open – Shows the opening price of the stock when trading opens.
  • High – Highest price set by the stock during a given time. Note that if the opening price was also the highest, the upper “wick” or shadow will be missing from a red stick.
  • Low – Lowest price set by the stock in a day. Like the above situation, if the closing price is also the lowest, the chart will display a red stick without a lower shadow.
  • Close – Shows the closing price of the day when trading ends for a day.

The size of the real body is an indicator of the trading activity in a day. A long body indicates heavy trading in either direction, while a short body is indicative of lighter trading activity. The real body can also either be hollow or solid depending on the price trend.

  • Hollow (or green) body: The candlestick is hollow when the closing price is higher than the opening price; this indicates a bullish trend and shows buying pressure. Here, the bottom of the real body indicates the opening price and the top of the real body shows the closing value of the stock.
  • Solid (red or black) body: A candlestick is red or black when the closing price is lower than the opening price, thereby indicating a bearish trend and showing selling pressure. Here, the top of the real body indicates the opening price, while the bottom of the real body shows the closing price.
  • Doji: When the opening and closing price of an asset is identical, the real body has no length and the chart depicts a plus (+) shaped symbol. Dojis appear mostly during trend reversals and form patterns that are an indicator of changing market psychology.

Encyclopaedia of Candlestick Charts, the seminal work of market expert Thomas Bulkowski published in 2008, highlights the most popular candlesticks used across the world and carries information on how to predict upward and downward trends precisely. Seasoned investors can identify over 50 candlestick patterns and use the information to identify entry and exit points for an asset. Algorithmic trading coursescan help you memorise the most important patterns and execute profit-making strategies.

Benefits of candlestick patterns

An algo trading online coursewill teach you all you need to know about various chart patterns so that you can make an informed trading decision. We have seen above that candlesticks are only a visual representation of the data and can be interpreted as needed. Here, let us take a look at some of the advantages of candlestick patterns for algo trading.

  • Candlesticks are easy to understand and patterns can be easily identified by studying the chart. The length of the real body and shadows can be used to indicate the daily trading activity accurately.
  • Compared to traditional charts, they provide a much more comprehensive description of the interaction between buyers and sellers and the overall market sentiment dictating the happenings and occurrences over a period.
  • Most seasoned traders will use candlestick charts in conjunction with other indicators like fundamentals, price patterns, etc. Candlesticks for a particular season can be tallied with global events to determine price patterns in similar future occurrences.
  • Reversal patterns are a unique feature of candlestick charts and indicate a change in trend direction. For technical analysts, price patterns can be used to study current movements and predict future movements.

Conclusion

The knowledge of candlesticks and candlestick patterns is indispensable in algo trading. With algo trading online courses, traders and investors can better understand the profit potential and apply their knowledge in real-time to make informed decisions.

I am inspired by the continuity of generations and global leadership — Volodymyr Nosov, WhiteBIT CEO, revealed the secret of success

Sam Allcock
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I am inspired by the continuity of generations and global leadership — Volodymyr Nosov, WhiteBIT CEO, revealed the secret of success

How can a native of a poor family create a multi-million dollar business “from scratch”, enter the TOP of the world market of cryptocurrency exchanges and successfully carry out market expansion to other continents? The answers to these questions were given by Volodymyr Nosov, the head of the largest crypto exchange in Europe – WhiteBIT in his interview to the publication LangweileDich.net.

“Everything related to the blockchain industry is my life’s work. Working in other markets, I dreamed that I was given the chance to enter an innovative, powerful industry at its inception. I was too small to stand at the origins of the Internet, but I was lucky with the crypt”, – Volodymyr Nosov says.

He recalls that he came to the cryptocurrency business from the financial sector, Nosov began trading crypto in 2016, during a period of rapid development of trading.

“At that time, there were many crypto projects on the market, which I would softly call as closed as possible. When I came to the sites as a trader, it was not clear to me where I was investing money? And I realized that I want to do it my way. Create a product that will give light at the end of the tunnel to those who would like to move in this industry. A clear, honest, open, understandable and regulated project”, – Nosov says.

Throughout the years of WhiteBIT’s existence, the entrepreneur has launched projects in niches where the business tools developed by his predecessors were absent.

“In building distribution, real estate, jewelry, any traditional niche – there is already a history, long-term analytics, an array of data. But within the framework of what we are doing, it is impossible to find any information now. There is no information on how to build a marketing strategy in the industry or how to build a sales department in the blockchain niche, how to sell listings. Google doesn’t know. And we know”, – Volodymyr Nosov says.

The millionaire is inspired by the continuity of generations and the opportunity to pass on his business to his descendants. But for now, he is seriously aiming for world leadership.“The peak will be the building of the company with Ukrainian roots with my participation, which will be the global leader in our industry. And the processes in this company should be built in such a way that I can pass it on to the next generations without any problems. Managed business with history. When I remind myself of this big goal, I am not led astray by local achievements. And I understand that it’s too early to burn out or relax, and it’s too early to rejoice”, — Volodymyr Nosov says.

Image: Volodymyr Nosov, WhiteBIT CEO

Top 4 business trends in the fashion sector to look out for  

Sam Allcock
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Top 4 business trends in the fashion sector to look out for  

According to Statista, the UK fashion industry is expected to reach £60.1 billion by the end of the year. However, 2022 hasn’t been easy for the sector. The rising pressure of inflation, supply chain issues, and sustainability commitments continue to pose unique challenges for fashion brands around the world. Here are the top four business trends to look out for in the fashion sector in the coming months.

Invest in customer-based market research technology

Conducting market research is a critical part of any business, but it can be easy to fall into the trap of using outdated techniques and end up capturing inutile, and ultimately useless, data. On the other hand, investing in state of art research techniques might come with a high up-front cost, but they are often well worth the investment. For example, MatchesFashion founder Tom Chapman invested heavily in customer research techniques in the early days of the luxury brand, and eventually achieved one of the highest retention rates in fashion retail.  

The fashion industry is highly sensational, the factors affecting customers’ purchase decision goes a lot beyond just textile, style, and price. As the cost of living continues to increase, customer retention is more important than ever. Investing in the best technology to monitor customer buying habits and consumer behaviour is one of the best ways to future-proof your business.

Look into experiential marketing

There may be over 85% of shoppers considering shopping online, but only around 20% of all retail in the UK was done online in June 2022, meaning it is still worth it to seek potential improvement in the stores.    

Experiential marketing improves the in-store customer experience by allowing brands to engage with consumers directly through participatory experiences. Whether it is a fun pop-up store or heart-warming in-store customer service, experiential marketing makes customers feel more deeply connected to the brands and businesses on a personal level. What differentiates in-store shopping from online shopping is the whole shopping experience – not just the product being purchased.  

There have been many discussions around how traditional business marketing and advertising models are failing to stimulate consumption and attract new customers, why not try experiential marketing?

Jump on the clothing rental train

Meeting Sustainable Development Goals is at the top of the agenda across all sectors, and the fashion industry has been busy seeking alternative ways to reduce its carbon emissions. Rental fashion is one of the major sustainability-focused fashion industry trends in recent years. Even back when global lockdowns were in full swing, fashion rental platforms saw a dramatic increase in the number of people renting clothes and accessories. The founder of the rental platform By Rotation’s, Eshita Kabra-Davies, said that the number of the platform’s users had doubled since the lockdown in the UK, with the most popular brands for rental including The Vampire’s Wife, Jacquemus, and Rixo. This trend is only going to grow as life continues to get back to normal and dress-up opportunities arise again.  We can already see the boom of the rental platforms on the market with some high-profile companies such as MyWardrobeHQ making headlines thanks to celebrities renting their personal garments on their platforms. It is not too late to jump on the clothing rental business train, and it is still very much a ‘blue ocean’ area in the fashion sector.

Push for supply chain reform

The current supply chain model of the fashion industry is flawed. From the sourcing of raw materials all the way to delivery to consumers, there are issues that need to be addressed to achieve a more sustainable, safer, and less resource-intensive industry. Excessive water usage, oil extraction, problematic labour practices, and the exhaustion of crops are often used to get garments to the shelf. We only need to look as far as tragedies like the Bangladesh Rana Plaza factory collapse to remind people of the importance of a transparent and ethical supply chain over cheap consumer goods. The current supply chain is also lacking in resilience, with issues such as geopolitical tensions and increasing costs affecting the fashion sector negatively even before the Covid-19 pandemic and Russia’s invasion of Ukraine.  

As the current supply chain model crumbling down, how to build transparency, resilience, and value in fashion’s supply chain becomes effectively the question of the year for the whole of the fashion industry. And many predict that the next big change in the sector might just be a complete revolution in the fashion supply chain. 

GMA Pros Review- A Broker Beyond Borders

Sam Allcock
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GMA Pros Review- A Broker Beyond Borders

Traders are always on the lookout for brokers that can give them premium services that satisfy their needs. With GMA Pros they are assured of a broker that puts them first and provides them with the necessary tools to succeed in the markets. They are also exposed to multiple trading assets and can check the value of their portfolio through advanced tracking options available. GMA Pros makes it easy for traders to operate without any boundaries and in multiple markets.

In this GMA Pros review, we will examine the factors that make GMA Pros a top choice among brokers. Want to know why users can’t stop talking about GMA Pros then keep reading. Here is our comprehensive GMA Pros review with everything you need to know about the platform’s benefits.

Why GMA Pros

Advanced Trading Tools

GMA Pros provides advanced trading tools that its users can utilize for advanced trading techniques and strategies. Traders who wish to engage in more than buying and holding strategies would largely benefit from using this platform. Some tools available include shorting, stop losses, and derivative trading. These tools help traders make more advanced trades that can help them to hedge their portfolio and capitalize on the opportunities presented by the market. GMA Pros is committed to providing its traders with the tools they need to make better decisions.

Zero Fees and Low Commissions

There are no trading fees on GMA Pros as the platform is a zero fee broker. There are also no hidden fees or costs associated with using the platform so traders can enjoy using GMA Pros to make all their trades. Trading fees are a big problem for retail traders as it eats into their profits but GMA Pros solves this problem by eliminating fees altogether. On the other hand, GMA Pros charges low commissions which are visible to traders. They can check the cost of these commissions at any time and there are no hidden commissions charged.

Track Your Portfolio

On the GMA Pros platform, you can track your portfolio and check the value of your assets in real time. With GMA Pros the entire value of your portfolio can be tracked individually or as a group. Portfolio tracking allows you to view the health of your portfolio and the strength of your trading strategy. You can also use this information to decide what new assets to add to your portfolio and what assets to take out. In addition, it makes it easier for you to adjust your trading strategy to meet your expected returns.

Mobile Trading App

GMA Pros has a mobile app which makes its platform easier to use on the go. It is great for traders who want to make trades while they are engaged in other activities. It also lets them take advantage of split moments when new information can turn the tide of the market. The mobile app is seamless, easy to use and it is available for download on the app store of your device. GMA Pros has created a trading experience for fast paced traders that want more flexibility on their trading options.

Access to Multiple Assets (Forex, Cryptocurrency, CFDs)

GMA Pros gives its users access to multiple assets including cryptocurrency, forex, and CFDs. These assets are available to trade at any time and offer users a diverse set of options when they want to trade. It also allows them to build a more robust portfolio which will be well hedged against poor asset performance is one of the asset classes returns below expected returns. GMA Pros uses its basket of assets to give its traders access to more sophisticated markets and gives them more options and a virtually unlimited combination of assets they can add to their portfolio.

Final Word

This GMA Pros review has discussed the reasons why GMA Pros is a top choice for traders. Additionally, we hope that this information is enough for you to make a decision and sign up. Want more information? Visit the GMA Pros website for clarification.

Disclaimer: This is a sponsored marketing content.

What are the Differences Between Headaches and a Migraine?

Claire James
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What are the Differences Between Headaches and a Migraine?

To the untrained eye, a headache and a migraine can feel the exact same and can seem like the same thing. Pain and aches in your head that don’t go away as quickly as you would like, and the pain can even stop you from doing work and having a good day. However, a headache and a migraine are also different, and it is time to get everything straight before you get another one.

What is a Headache?

A headache causes pain in the head, face, and/or upper neck. However, this can vary in frequency and intensity. You could simply have a more minor headache that is a dull thudding ache, or a sharp pain that is like a knife stabbing into your skull over and over and over again.

There are two different types of classifications for headaches. A primary headache is independent, and it causes pain in the head, face, or the neck. Tension headaches are a type of primary headache and can feel like a band of pressure is squeezing your head, as are persistent headaches that can affect the same side of the head every single day.

Secondary headaches are caused by another medical condition, such as headaches that are caused by stress or as a reaction to an infection or medication overuse. If you get a headache as a symptom because you are sick, that will be a secondary headache.

What is a Migraine?

A migraine is a primary headache that can cause a lot of pain, and it can be isolated, or you can experience migraine attacks that are recurring. They can range in severity, but they are also very throbbing and can last a very long time.

Migraines can come in four phases, though not every single phase is experienced. The first phase is the premonitory phase where mood changes, neck stiffness, and sensitivity to light or sound can happen. The second phase is the aura phase, which can include slurred speech, brain fog, and difficulty speaking and writing.

The headache phase is actually the headache, and then the postdrome phase where you might feel exhausted and generally unwell. Again, you might experience all four phases whenever it comes to getting migraines, but you will get the headache!

How are Headaches and Migraines Treated?

Thankfully, despite headaches and migraines being different, they are treated in the exact same way. You can use over the counter pain medication such as aspirin and ibuprofen, or medications that can stop nausea, such as sumatriptan because you can buy sumatriptan online!

Additionally, if you know that your headaches and migraines are caused by things like a poor diet or stress, then you can clean up your diet or learn stress management techniques to deal with the headache. If you can diagnose the trigger for your headaches and migraines, then you can better prevent them from happening.

Should I See A Doctor For My Headaches or Migraines?

While headaches and migraines are annoying whenever they come out and start to mess with you, they can be a massive problem. However, they often aren’t something to call a doctor about, are they? Well, if you find that your headaches are causing other problems such as blurred vision, nausea, and vomiting, then you will need to reach out to a doctor.

Additionally, if you find that you are also dealing with frequent and recurring headaches that are stopping you from living a very full and normal life, then that is another reason for you to see a doctor to figure out how to stop these attacks.

How to Recover From a Headache and Migraine

Finally, once you have dealt with the symptoms of a headache or migraine, then you need to see how to handle the after effects of the headache or migraine. For example, you might need to sit in a cold and dark room for a bit, lay down for a while, get a good meal in you, or figure out a way to reduce your stress.

It can be extremely hard to focus on work or any other task that you need to do if you are struggling with a headache, so don’t be afraid to take a quick break and allow yourself the opportunity to recover.

Headaches and Migraines might not seem so different and certainly won’t feel very different whenever you are suffering from one, but they are different and it can be interesting to look at how headaches are classified. Thankfully, they can at least be treated in the same way!

Three Ways you can Give Back by Online Shopping

Claire James
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Three Ways you can Give Back by Online Shopping

We all want to do our little bit to help a charity that’s closest to our hearts. However, sometimes we are all a little short on time to volunteer at the local charity shop, or participate in a beach clean-up.

If you’re ever online shopping, there are some ways that you can help with local community charities, large wildlife conservations and even national-known children charities. You just need to shop in the right places and know what sorts of things to look out for.

So, here are three ways that you can use your online shopping to give back a little bit.

Online Stores with Partnerships

There are so many online stores that give back to their chosen charities. As such, they’re not too hard to find. Some stores let you round-up at the end of the check-out stage, some websites plant trees with every purchase, and some will even donate a cuddly toy to a charity for every item bought.

A great example of an online store that is keen to give back is Get Laid Beds, who sell wooden beds using the finest materials. A sustainable bed retailer, they plant a tree each time one of their beds are sold to help battle deforestation.

This is a great example of a site that gives back with each purchase!

Look for Stores That Talk About Charity

Many stores partner with charities, or simply set up their own project to help raise money for a variety of reasons.

For example, Selfridges has set-up Project Earth, meaning they’re helping to raise money for their chosen charity each month through a range of different activities, including beach cleans, mental health awareness training and helping those from disadvantaged backgrounds.

Brands and websites are very likely to talk about their work with the community or with charities, so if you’re struggling to find out what one of your favourite stores are doing to help the community, they’re likely not doing very much. Always head to their partnerships page, or their blog section, to take a look at the sort of stuff they get up to!

Charitable Cashback Sites

Similar to Top Cashback and Quidco, where you earn a percentage of cashback from online shopping that goes straight into your bank account, there are also cashback sites where the profit you make goes straight into your chosen charities account.

Easy Fundraising is a good one; you can set-up your profile and start earning money for charity straight from your first shop at one of their partnered websites.

Mortgage Affordability Rules Scrapped as Interest Rates Climb

Sam Allcock
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Mortgage Affordability Rules Scrapped as Interest Rates Climb

We are all living in rapidly changing times for our finances and mortgage affordability is one area that has recently come under the microscope. Interest rates have been rising and this has caused concern among those borrowing money to buy a home. However, the Bank of England have announced they are removing the mortgage affordability rule. That means lenders will not have to check to see if mortgage applicants can afford to pay a mortgage at higher interest rates. What does that mean in terms of applying for and getting mortgage?

Is it Easier to Get a Mortgage?

With the mortgage affordability rules scrapped, does that make it easier to get a mortgage? The affordability test was introduced by the Bank of England in 2014 to ensure lenders did not take on loans they could not afford to pay back. The fact the Bank of England have increased interest rates for the fifth time recently means the removal of the affordability test has caused some confusion. It is worth noting there are other measures still in place when taking out a mortgage, including the size of a mortgage based on the income of borrowers and FCA affordability standards.

However, what the removal of the mortgage affordability rule does mean is that some borrowers will be able to obtain a mortgage for money than they otherwise would have before the rule was removed. Nonetheless, anyone who has been struggling to afford a mortgage is not instantly going to see a change in heart from lenders. On the other hand, it could help people who have been paying rent well over the amount of mortgage payments but have failed affordability tests. So, in some respects, removing the mortgage affordability rule could make it easier to get a mortgage but individual circumstances continue to play a significant role in decision making. There are several red flags that could hinder your chances of getting a mortgage and we will look at some of the more common issues. owverr

Pay Day Loans

In a survey conducted by Boon Brokers, which included over 2800 people, the number one factor that would give lenders concerns is pay day loans. Lenders will always check bank accounts and it is impossible to hide financial information when applying for a mortgage. A pay day loan is a loan taken out at a high interest rate that is paid back on the next pay day of the borrower. Having a pay day loan on your financial history does not automatically eliminate you from getting a mortgage. The lender will consider the number of pay day loans, recent frequency of pay day loans, and any other past credit issues.

Gambling

The second most common response in the study when asked which factor lenders would see as a red flag for a mortgage was gambling. Unfortunately, many gamblers are unaware how betting could have a negative impact when applying for a mortgage. In fact, 58% of people in the survey were unaware gambling could stop them from being accepted for a mortgage. Things that could affect your affordability, such as gambling transactions and pay day loans will appear on bank statements that must be shown to lenders. Even if you can hide the name of the betting company so it is not clear where the money went, this is a red flag and lenders will question where the money has been going. The sums of money involved, the regularity, and affordability of gambling will all be considered by a lender, so having a gambling record on your bank statement will not automatically rule out getting a mortgage.

Overdraft

Using the overdraft facility of a bank account come the end of every month could influence the decision of a lender. The bank wants to know it will receive monthly mortgage payments on time and an account that is always in overdraft at the end of the month does not give a good impression. Recently taking out a new credit card can also have a detrimental effect on a mortgage application.

It is worth remembering lenders usually ask for three months of bank statements when considering a mortgage. That gives you enough time to make any changes to your financial activity before you submit the application form. Changing bad spending habits, avoiding gambling, not using the overdraft, not taking out pay day loans and not getting a new credit card will all help when applying for a mortgage.

So, just because the mortgage affordability rule has been scrapped, lenders will not be handing out mortgages freely, without other considerations. Yes, the removal of the mortgage affordability rule means you could lend more money to buy a home and those paying high rents might benefit. However, it does not mean it has become easier to get a mortgage because other criteria, as highlighted above, remains in place.

5 Reasons To Invest In Gold

Sam Allcock
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5 Reasons To Invest In Gold

Any investor would naturally wonder whether a specific asset would be a good investment or not. This is especially true for gold, given that it is an inert metal that doesn’t earn interest. It has several advantages as an investment because it is proven to safeguard your capital over the long term. Due to this, gold’s price tends to increase anytime, even when the world equity market is volatile. The fact that the prices are consistent worldwide and are essentially the same everywhere is another benefit of choosing it.

If you have a significant investment in gold, you should keep an eye on gold price tracking to keep up with the always-shifting prices. Here are five reasons to look forward to it.

  1. It Protects Against Inflation Risks

The consistently excessively high gold rate in inflation helps to combat inflation over the long term. Therefore, it provides a safety net when the market price of other stocks is unstable. If you havekept an eye on the market, you know that it has doubled over the last five years, demonstrating that its inflation rate is consistently high. In addition, it is one of the few tangible assets which gives investors a sense of security. Additionally, buying gold is more straightforward than buying other tangible assets like real estate.

  1. It Is A Good Long Term Investment

You must save money for the future when you receive a regular paycheck. But let’s say you decided on real estate as a future investment, but you won’t be able to put tiny sums of money into it. However, purchasing gold is the best alternative. Additionally, you will receive an authenticity certificate, guaranteeing you the best price should you ever decide to sell it. This will protect your funds for the future, and you’ll be able to earn significant returns over time.

  1. Easy To Buy And Sell

It is simple to purchase, and it is simple to sell. However, you can track the prices from trustworthy sites to check the current price before selling it. Remember that there is always a need for gold; therefore, you don’t need to worry about selling your possessions, and they will be exchanged for cash immediately. So, it is the best course of action if you have an urgent need.

  1. It Provides Decent Returns

The downside risks, caused mainly by price declines in stocks and bond yields, can be reduced if you have a proper asset allocation by holding gold. Because debts and equity have a fragile negative association with growth, they cannot coexist. Consequently, they aid in reducing the risks associated with other investments. Gold is one of the finest investments because it offers good risk-adjusted returns and helps you manage your risks even when your equity or debt instruments don’t deliver the expected profits.

  1. It Does Not Require Much Maintenance

The best thing about investing in gold is that you don’t have to worry about maintaining it and may store it safely for centuries. It differs from purchasing real estate because you don’t need to retain it. It doesn’t require care, and you can keep it for many years.

Conclusion

Gold is a fantastic asset because it is very stable, and it has shown itself to be a wise investment at each stage. In conclusion, gold assets can be redeemed considerably more quickly in times of need than other tangible investments. However, you must remember to always purchase from authentic sources.

Secured vs Unsecured Loans

Sam Allcock
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Secured vs Unsecured Loans

Starting and growing a business requires capital which some people don’t always have at hand. Whether the capital is used to hire new employees, open new commercial offices or even buy equipment. Either way, if used wisely, the benefits can be endless.

The most common types of loans for businesses are secured or unsecured. Both options can help companies cash flow, but which business finance option is best for you?

What is a Secured Loan?

Secured business loans are a ‘credit agreement’ where lenders provide businesses with a certain amount of money, and in return, you give them security over a residential property (when a business’s property or an owner’s residential property is used as collateral).

Basically, the amount of money businesses can get from secured loans will depend on the available equity in their property/properties. Put simply, the more equity you have in your chosen assets, the more money you will be able to get.

Because of the collateral, there is less risk for lenders which essentially makes it easier to get approved. This also means businesses can borrow funds for longer periods, up to 30 years, which also benefits them as their monthly repayments won’t be as substantial.

When applying for secured loans, businesses must have the following details ready:

  • Business details: full business name and details of guarantors
  • Permission to perform personal searches
  • Amount required, the length of borrowing and the reason funds are required
  • Details of the security property (including full address, approximate value, and details of any existing charges)

What is an Unsecured Business Loan?

Unsecured business loans are typically used for pretty much any business purpose, from purchasing stock, covering bills or refinancing existing debt. Unlike secured loans, secured business loans do not require any collateral. The lender sends you cash and you promise to pay them back in the future, with interest.

Unsecured business loans are a great way to pay off things and bring capital to your business without providing security in the form of a property, which is one of the biggest risks with secured loans.

An advantage of unsecured loans is that the interest rates are also getting cheaper – starting from 3.9%, which is actually less than some mortgage interest deals available in the market.

Applicants will need the following when applying for an unsecured loan:

  • Last 6 months’ bank statements
  • Company accounts
  • Personal details of the business director

Which is best for your business?

Secured and unsecured loans can both provide businesses with significant growth opportunities, but it’s important to keep the following in mind when making the decision for both, for example, are you willing to offer UK property as security, and how quick do you require the funds?

Flexibility vs cost

Although secured business loans are cheaper and more common than unsecured loans, they come with a lot less flexibility. For example, secured loans usually come with locked periods and early settlement fees, so there may be some challenges if you decide you want to repay your loan early.

Whereas unsecured business loans allow you to settle early without paying a penalty, as well as making overpayments towards your loan to reduce monthly commitments.

In summary, it comes down to whether you are willing to use UK property as security, as without this a Secured Business Loan is not possible to access. Interest rates are becoming more competitive in the Unsecured space, so flexibility also becomes a key factor when considering what option works best for your business.

To conclude, both secured and unsecured business loans have their benefits. To help you make your decision, speak to industry experts to understand what option works best for your business.

Sourced Capital sees record demand for property investment in the first half of 2022

ABC Staff
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Sourced Capital sees record demand for property investment in the first half of 2022

●      Sourced Capital received FCA authorisation and acquired Peer Funding Limited earlier in the year

●      Company provided over £10 million of loans to property developers while maintaining 100 per cent record on repayment to investors

Warrington, 25 July 2022: Sourced Capital, a leading UK property investment platform and wholly owned subsidy of the Sourced Group, today announced performance figures for the first half of 2022. The results include just five months’ trading since Sourced Capital received FCA direct authorisation and acquired Peer Funding Limited in February and demonstrate strong demand from investors and borrowers alike.

In the first half of the year, Sourced Capital has drawn seven new deals, providing £10.408 million of funding to support SME property developers and help deliver their projects located throughout mainland UK.

Sourced Capital has also continued to demonstrate its strong credit management track record by maintaining 100 per cent repayment of all capital and interest to investors on non-active loans. Equally important when reviewing performance, moving into the second half of the year, none of the current loan book is in default or distress.

The company has seen the number of registered, qualifying investors surge threefold, with the increasing funding capabilities exemplified by Sourced Capital providing its largest loan to date – a £5 million loan for a landmark development project in Taunton. Strong appetite from investors to invest in property loans across the UK has led to some of the property loans funding in minutes.

The second half of 2022

Sourced Capital is set to surpass its projections for 2022 with a strong pipeline of new deals already in place. The company is continuing to grow the size of their team to accommodate the ongoing controlled and consolidated growth.

As the fintech funding arm of Sourced Group, Sourced Capital provides asset-backed property development investment opportunities to sophisticated, high net worth (HNW), corporate and institutional investors. It will continue to increase the levels of funding for viable residential property developments in the UK, and with a  focus on more sustainable housing.

Sourced Capital uniquely only funds property development projects from Sourced Franchise, its exclusive network of property developers, meaning all borrowers are directly connected to the Sourced Group.

Commenting Derek Pratt, Commercial Director at Sourced Capital, said: “After a strong start to the year, we are excited to be witnessing ongoing growth and we are very well positioned for the remainder of 2022 and beyond.

“We are seeing increasing investor and borrower demand, notwithstanding the economic uncertainties impacting the country. Sourced Capital benefits from a senior team with significant experience across the directly relevant sectors of property, finance and technology. This proven knowledge, when combined with rigorous due diligence and credit management processes, has enabled such a robust performance.”

The property investment company is seeing strong demand from property developers in the regions for opportunities to carry out refurbishment, mixed-use, and new build property schemes.

Sophisticated, HNW and institutional investors are constantly looking for opportunities to diversify their investment portfolios, and this type of property investing is proving popular due to the returns that can be achieved.

This type of investment is not appropriate for everyone but considering the combined benefits of first-charge property security, the capability to use ISA allowances or pension funds for tax-free interest returns, and robust ongoing credit management, it is understandable why Sourced Capital is seeing increasing numbers of investors approaching them to establish a trading relationship.

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