Pros of Short Term Loans
As a client in need, a payday loan can remarkably alter your current predicament in more ways than you can imagine. From the rapid distribution of funds to minimal background checks, such loans are undeniably a must-have to any budding entrepreneur. When it comes to accessing payday loans, a prospective client must oblige to a few formal procedures to expedite the disbursement of funds to satisfy your individual needs. This basically requires you to present evidence of employment, a valid and active bank account and valuable personal possessions to highlight your credit worthiness. Property owners are in a prime position to obtain loans since their titles serve as adequate collateral for loans. Interesting enough, such consumers can receive funds virtually the same day of the loan application provided everything else checks out.
Unlike conventional credit that can take much longer, a payday loan is widely considered to be an immediate blessing by most customers. In most cases, payday loans are conventionally tailored to customers with a questionable financial reputation from established institutions. Rather than wallow in despair, a payday loan essentially acts as a second chance to meet current financial needs and repair your reputation before creditors.
Cons of a Bridge Loan
Since bridge loans are widely considered to be a measure of last resort, creditors tend to charge exorbitant fees coupled with stringent rules aimed at ensuring payment of disbursed funds. Basically, nothing is for free, and if you want quick cash, then you must be prepared to comply with the strings attached. The duration for payment of bridge loans widely varies across different creditors but mostly last for two weeks. Interest rates may be capped as high as 15% per annum, which basically translates into hundreds of dollars. If a customer defaults on payment, then their security and other personal possessions will undoubtedly fall into the chopping block by an aggrieved creditor.
How You Can Choose Your Loan Wisely
Financial advisors highly customers to consider other alternatives to raising needed funds other than seeking bridge loans. For starters, you could obtain cash from family relatives and friends or even requesting for a cash advance from your employer. Alternatively, engaging in part-time can also be a viable option depending on the flexibility of your schedule. In the absence of such crucial alternatives, then seek professional assistance from qualified advisors on the best options to pursue.
With their help, you are in a prime position to make sound decisions aimed at improving your business. In case you have to get a bridge loan, then inquire about the terms and conditions of the contract before formalizing the agreement. Bridge loans are widely associated with bad reputations since consumers fail to pay the loans on the agreed date. This leads to complicated outcomes which adversely affect your reputation. In the interest of self-preservation, protect your assets by getting bridge loans as the worst case scenario and ensuring payment is made on the agreed date.