Why Get Payday Loans

Payday loans are short term loans that are usually due on the next payday. Most lenders are small groups who target the average wage earners who fall short on their salaries to pay for their monthly expenses. Payday loans are unsecured loans which carry a high percentage of interest rates. As much as possible, we need to limit in getting this type of loan due to its high rate of interest. To help you further understand, here are some cases why people try to get a payday loan.

  1. Image result for payday loanInstant Cash for what you need – this is the easiest loan to get especially if the amount is small and is expected to be paid within a short period of time, usually by next payday. Unlike other forms of loan, this no longer goes through a thorough evaluation of the borrower. It’s the easiest loan to get that is unsecured.
  2. Debt Payment – for people who are struggling with making ends meet and fulfilling payment responsibilities, a payday loan can usually help one get by. An example of this would be getting a payday loan with a cost of earning interest until the next payday rather than missing a payment for your credit card which may become due in its entirety if not paid. The cost of securing a payday loan may prove to be lesser than missing the minimum payment due.
  3. Liquidity – there are cases where the borrower has sufficient resources. But due to resources being less liquid, a payday loan can be used to fulfill an immediate need. It is possible that the cost of getting a payday loan would prove less rather than to be liquidating investments and other assets for the need of cash.
  4. Alternative Loan – getting a payday loan can be an alternative if the borrower was not approved for a different type of loan. A payday loan is easier to secure but usually carries a higher interest rate with it. It does not require any collateral which becomes less complexity on being granted one.

A payday loan singapore is one of the ones you get when your need is on a short term. Having a salary loan not only provides immediate need for cash but also less complexity in applying for one.

biz loan

Why Get a Business Loan?

Business loans are there for a reason and are more often beneficial to entrepreneurs who know how to manage their liabilities well.

These types of loans play an important role to keep the business growing and expand to other locations, lines of business or simply grow its size and revenue. Some may have reasons of using this to keep the business afloat or even used to increase its liabilities and equity for credit standing. Despite the reason an entrepreneur or business may have, business loan are proven to be beneficial. Here are a few solid reasons why we get a business loan:

  1. Expand Your Business – whatever action ways a business may take to expand, such as purchasing equipment, property or another business, it will definitely cost money. Some businesses are liquid enough to make these expansions but most will course it through a business loan. This allows the business to have sufficient cash for the expansion at the same time maintain its current asset value.
  2. Investment – most business thrive by having additional sources of income and growth such as investments. Some entrepreneurs find opportunities of growing their money where the opportunity exceeds the debt. This may be buying out a competition, investing in stocks/bonds, or even re-branding that can potentially increase financial equity.
  3. Building Credit – the best way for a thriving business to prove that they are credit worthy when they partner with their suppliers is to show them existing debts that have been paid. These debts that have been paid increases the credit score which allows the business to ask for a bigger credit line and longer payment terms. Having a history of paying your loans without default or problems can also increase your chances of getting a bigger loan in the future. The bigger loan can be used for the first two reasons above.

Credit worthiness is important for businesses to succeed. Business loan singapore can help assist an existing business to grow following the three reasons above. This type of loans continue to be beneficial as long as it is used as planned and managed well.


Why Do I Need a Mortgage?

Mortgage is a specialized loan to address the need for buying properties. With the high value required to purchase a property, mortgage loans allow an individual or an entity to purchase property they need without having to put out a big amount of money in a single point in time. Mortgage loans allow the buyer to purchase property to be paid on an installment basis during the term of the loan.

Now why do we need to have a mortgage loan when we buy a property? It is not mandatory but it can prove to be advantageous to have a mortgage loan, rather than paying for the property in full. It depends on the purpose of the buyer and what he is trying to achieve. Below are some of the benefits of getting a mortgage loan to buy a property:

  • Liquidity – there are times that we know that our capacity to earn can allow us to buy our own property but we currently haven’t saved enough to buy a property at full price. It can also be a reason that we don’t want to use up all our savings to cover for the purchase price as we have other plans for our savings. Taking on a mortgage allows us to purchase a property by spreading the cost over the term of the loan.
  • Credit Score – having a mortgage loan and paying it on time and completing it can greatly improve your credit standing. It can help you increase your chances of getting other types of loan such as a business loan or auto loan. It will be easier for the money lender sg to grant you other loans you might need since they are aware that you have been paying for your mortgage diligently.
  • Investment Opportunity – going into mortgage when buying a property will allow you to pay the property value on small increments. This will allow you to allocate your savings to investment opportunities which will allow you to earn. Instead of totally using your savings to pay for the purchase price, slowly paying it and investing the rest would make things better.
  • Security – getting a mortgage is a great way to purchase property while keeping enough money in your savings. There are a lot of other expenses that we need to address and setting aside enough cash isn’t that easy. Keeping your savings intact will allow you to have reserves for your emergency despite the purchase of a property.

When Should You Get a Personal Loan?

A personal loan is an unsecured loan that yields high interest rates. As much as possible, a personal loan or any kind of loan is discouraged unless you have enough resources to pay for it full in the future.

Personal loan singapore is very convenient in nature as you can easily apply for it and approved without any collateral being required. But same as any other loan or debt, this can become a burden in the future if not properly managed. Below are a few recommended reasons when we should decide on getting a personal loan.

  1. Debt Consolidation – having debts that have been taken with different institutions, especially credit card issuers, can cause your interest rates to become so high that all you can pay off every month (or other terms of payment) is the minimum amount due. In these cases, taking on a loan to pay all your debts can help lessen the interest rates that are being paid. A good tip when taking this action is to look for a personal loan offered by institutions which have smaller interest rate compared to average interest rates of all your debt if you continue to pay for them status quo.
  2. Purchase – a flexible loan can be used to make large amount of purchase like a car or a house where the borrower does not want to put the goods being purchased under a collateral. This is most advantageous to the borrower. Unlike other secured loans such as a mortgage loan, it allows the borrower to get the loan unsecured without being required to place the property under the lender’s control. It also gives the borrower to use the money other than restricting the use of money on a specific purchase of goods.
  3. Events and Leisure – there are times that cost of an events and leisure like weddings and vacations can prove to cost a lot of money even for someone who has enough financial resources to pay for these. Some would find it more beneficial to acquire a personal loan to cover the costs rather than disposing a large amount from their savings.

A personal loan philippines comes convenient for the purpose of having extra cash to address any purpose or need a borrower may want to use it with.

small business loan

Your 5 C’s to Remember when Applying for a Business Loan

Where you need to expand your business or need extra cash to grow your inventory, a business will always encounter times where a loan would be necessary. Cash is an important part of business growth.

And to make more money, you will need money to spend first to create additional source of income. To make more sales, you will need to spend for additional materials to increase your inventory. To tap a market outside your local area, you will need to put up an office in a new location.

But not every time we apply for a loan, it is granted. It takes a borrower’s convincing powers to make a lender agree that they are qualified for a loan. In the financial world, there are 5 C’s that are being considered by the lender before granting a loan. Knowing about these 5 C’s will help you prepare well to get that loan you are applying for granted.

  1. Character

It is important that we are aware of character. When a lender makes a credit investigation, they identify the character of the business or individual. If you are a business, they identify how long you have been operating and for an individual how long have you been working. They would also want to know how you deal with your suppliers and customers as they would foresee how well you would work with them. Understanding you as an entity or as a person gives the borrower an idea on what to expect when dealing with you.

  1. Capacity

This is where the lender would evaluate your capacity to pay. Identifying how much cash and how much you earn. Knowing what your expenses are and what existing loans you may have. Understanding your financials allows the lender identify if you can pay the loan at a given term.

  1. Capital

Another aspect that a lender checks is your capital or your net worth. This shows the lender an idea to recover the loss in case of insolvency, death or even disability. This is your total assets less your total liabilities.

  1. Collateral

It is the security which you can offer to make sure that the lender recovers the loan amount in case of unexpected circumstances. This gives the lender the capability to sell the asset in case of default on payment whatever the reason may be. Some lenders even go to the extent of requiring a guarantor or co-signor.

  1. Conditions

Conditions refer to the outside aspects that may affect the repayment of loan. It can be economic difficulty for those applying for a business loan or critical illness for an individual.