In today’s very volatile economy, a time will come when we encounter some cash flow issues and no matter how robust our financial plans are, the money we have isn’t enough and we need immediate funding. This goes to show that no matter how much money or savings you have, when an emergency comes, you might still need to borrow money. Good thing that nowadays, there are loans that are easier to get and these type of loans falls under short-term loan category.
Short-term loans offer quick funding with less demanding requirements, which is why it is very popular. Processing time is also fast, it can be between a day to 5 working days. Short-term loan payment terms usually range from one month to a year.
Cash Advance- Credit Card
The quickest way to obtain cash is through a credit card cash advance which uses the current credit limit of the borrower as basis of how much money he can request. Repayments come in monthly installments which will incur interest which is a bit higher than making a purchase using the credit card. Cash advances can be made via an ATM directly from the credit card bank issuer.
Merchant Cash Advance
This loan is intended to help finance small businesses which accept either debit or credit card payments from their existing pool of customers. As part of the repayment process, the borrower must grant the lender access to his business credit payment facility. From the payments made by the customers, a certain amount will be taken by the lender.
Payday Loans
One of the easiest loans to obtain is the payday loan as it will only require some pay slips. There are many lenders offering this type of loan with the only drawback that the borrower must pay the entire loan including interest when payday arrives.
Line of Credit
Most banks and financial institutions offer this is a type of loan. A line of credit is granted based on the borrower’s current credit standing. The borrower can either take the entire amount granted or have it withdrawn on an installment basis. Once the borrower has fully paid the loan, the credit line is refilled with the amount borrowed. In this type of loan, the borrower’s credit score determines the loanable amount.
Do you have a lower credit score or a bad credit history? Worry no more, there is a poor credit borrowing option to consider because of short-term loans. For people with low or bad credit standing, this type of loan is the best that they can count on, to give them a second chance to be better or be a more responsible borrower.
If you are one of those people who were given the chance to acquire money from this kind of loan, put the money into good use. Just because you get it quicker and with less hassle doesn’t mean you can spend it anyway you wanted. Loans of any amount should be spent on necessities such as food, shelter, and health or to something that generate income over time. No matter how big or small, a loan or a debt is a huge responsibility that we have to take very seriously to avoid any financial trouble in the future.
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