Long Term Loans For Small Businesses

Posted by on Nov 1, 2016 in Payday Loans |

If you need a loan from a bank or other financial institution, there are plenty of options ahead of you. Depending on your credit history and credit rating, your monthly earnings, employment status and the purpose of the loan, there are many loan types you can choose from. Loans can be grouped according to their purpose, whether they are secured or not, by the duration of repayment etc. In this article, we will deal with long-term loans, their features and basic requirements for such a loan to be granted.

Long Term Loans

Long-term loans are those loans that last over three years. Most commonly, they full repayment is due between three and ten years. But there are long-term loans that last as long as forty years.

The collateral of long-term loans is the assets of the business or individual who apply for the loan. These loans usually require repaying the debt in installments. Most commonly paid once a month or once in every three months. The payments are usually derived from regular cash flow of the business or individual. Sometimes it is even necessary to set aside a part of the profit in order to repay the debt.

When long-term loans are taken by an individual physical entity, they are most commonly used for large purposes, such as buying a house. However, these loans are usually used by small businesses, which have been well established for a while. And which have high credit rating and sound financial possibilities of repaying the debt.

A piece of property is pledged as a collateral, and it is very common the piece of property which required the loan to be purchased. Long-term loans, when used in business, are most commonly used for buying necessary equipment. To improve the existing business or start a new branch of it. Then, these loans are used in cases of large improvements of the business and for investing in machinery or for building new premises.
The terms and conditions the businesses need to meet in order to be granted a long-term loan can be quite rigorous, because the lender needs to ensure that the loan will be repaid.

What You Need For The Loan

Some of the most important and most common things bank check before they approve the loan are these:

Credit rating: before the borrower is granted a loan, the lender, usually a bank, checks full credit capacity – the assets owned by the business, the monthly earnings, history of previous loans, and even the personal assets and earnings of the business’ owner.

Collateral: since the collateral is the source of repayment, the bank usually expects the value of the collateral to be higher than the value of the loan.

Capital: the bank checks not only if the business has the capital sufficient to repay the debt, but also whether it is possible to be turned into cash in case the debt needs to be repaid from the collateral.

Character of the business: this includes checking how the business owner has managed their other loans, both those business related and personal – whether they were repaid on time, in full etc.

Confidence with the business plan: the bank will check whether the business plan is realistic and how accurate are the expectations and whether they have been fulfilled.

Read More

All About Payday Loans

Posted by on Oct 24, 2016 in Payday Loans, Withdraw Money |

What is a payday loan? Chances are you may have stumbled upon websites offering payday loans or heard your friends talking about it, and may be tempted to apply for one. However, there are countless financial sources offering payday loans. But before you select one, it would be wise to understand what a payday loan really is.
For the uninitiated, a payday loan is defined as a short term loan that, like its name implies, is meant to tide you over until the next payday. A payday loan is also known as a paycheck advance or even a cash advance loan, but the latter may be confused with a credit card cash advance loan so it is best to just refer the loan to its original name – a payday loan. A payday loan gets you through to the next payday and helps you survive without borrowing money elsewhere.

Payday loans can be applied easily but they need to be secured against your next pay. This means that you must keep aside some funds from the upcoming paycheck in order to repay your payday loan. This must be done as soon as possible, ideally between 14 to 21 days upon approval of your payday loan and disbursement of your payday loan funds.

Payday loan process

Applying for a payday loan is generally very easy and effortless on your end. There are many financial entities who are more than happy to offer you vast solutions of payday loans. However, there are certain conditions that must be met before your payday loan application may be approved. If you are in the United States, the conditions include:

Must be 18 years and above at the time of loan application To have a legal source of income Prove that you have a steady flow of income with minimum amount of $1000 Should have a checking account to your name prior to applying for a payday loan Must bring along pay stubs and recent bank statements which are valid Once you know this criterion can be fulfilled, it’s time to go shopping for a payday loan provider. A good place to begin seeking advice would be at your bank, or at a reputable online financial portal. Word of mouth is also useful when considering places to obtain your payday loan.

How it works – Retail lending

Once you have decided the perfect place where you would apply for your payday loan, you can visit the retail lending store with your necessary details and documents. In order to obtain your payday loan, you will need to produce a postdated check detailing your loan amount along with an additional fee included. Once you received your payday check, you wiill have the option of returning the amount you borrowed from your lender in person or have the lender cash in the check. Only after this is done, your payday loan would be repaid in full.

On the other hand, if you were not able to repay your payday loan due to insufficient funds, you will need to pay the bounced check fee to your bank along with an additional percentage of interest rate to your lender. Therefore, it would be better to settle your payday loan payment within the stipulated time to avoid the extra burden on your pocket.

How it works – Internet lending
Just like you are able to walk into a brick and mortar retail lender, you will also have the option of applying for a payday loan online. The Internet opens doors to many financial opportunities. So finding a payday loan provider that fulfills your needs will not be difficult. Getting a payday loan online can be even easier compared to obtaining it from a retail lender. All you need to do is fill in an online application form or fax over an application form that has been completed, along with copies of your pay stubs, bank statements other important paperwork.

Payday loan benefits

There are many benefits of a payday loan. For once you are able to stave off hunger and possibly starvation if you are able to secure a payday loan for yourself. You don’t need to think about borrowing elsewhere and embarrassing yourself in the process.

By securing a payday loan, you will be able to pay off what you borrowed using your paycheck in a matter of weeks. Thus saving you the trouble of seeking enough funds just to get you by.

Read More

How to Qualify For Payday Loans

Posted by on Mar 10, 2016 in Payday Loans |

A payday loan is a short-term loan in which an individual can have access to small amount of cash in a short period of time but at a high rate of interest. The amount is then deducted from the borrower’s checking account upon completion of the borrowing period. The agreed upon date is most commonly the payday of the borrower when he’ll be able to pay it off.

A borrower can approach a direct payday loan lender either through at a storefront or through several online services available. However storefront payday loans are believed to safer than that of online stores. Most online payday lenders are involved in dishonest practices that often create problems for the borrower.

The main reason that payday loans are so famous and in-demand loans is because of their ease of application and quick availability of cash. However there are some things that a borrower needs to fulfill in order to get qualified for the loan.

To get loan approval:

loan-approved-300x249In order to get approval for the loan the borrower must fulfill certain requirements that are required by the law and the lending company. The first requirement is the age. Only people who are 18 years of age or older can apply for the short-term payday loan. Once the age limit is assured of, the borrower must also be able to proof a steady flow of income. That means a permanent employment record. This should be proved through a pay slip that could be no older than 3 months. People who are disabled or unable to work could also apply for the loan on the basis of their social security or disability income.

The federal law also requires the applications to be filled by the borrowers themselves. A steady source of income is important in order to reassure the lenders to know that the borrower will be able to pay-off the loan. If a person is currently working then he’ll have no problem for qualifying for the loan. Another thing that is absolutely necessary is to have a valid bank account. Payday loan requires the borrowers to provide a check at the time of application. So, that at the time of payday, the lenders can deduct the amount from the account of the borrower. There’s also an option of transferring the loan back directly to the lenders account on due date that will save all the useless deduction from the borrower’s account. Click here to investigate.

Short-term instant payday loans

There are many instances in our life when we need cash so urgently that not having it could become a matter of life and death. Or it could mean losing a once in a life-time opportunity. In any of these cases short-term instant payday loans are the safest course of action. They are fast, and easy to access with no unnecessary hassle of long awaited approvals and too much paper work. If all the above requirements are fulfilled then not only will the borrowers get approval easily but will also be able to pay it off on time.



Read More