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Category Archives: Finance

Benefits of Merchant Cash Advance Loan

Fast approval, fast disbursal

If cash is needed urgently there is no better source than this. One only need to apply online, submit a request and then the process is taken forward. Applicants usually receive cash in their bank account within 4 days of making the request provided every other requirement is met.

Minimum paperwork

Unlike banks and other lending institutions that ask for a lot of documentation, this method of funding is the easiest when it comes to paper work. One needs to submit only the bank statement for the past six months, proof of ownership of business and proof of identity and residence. That’s that.

Best for people with bad credit

People with bad credit can find themselves in a jam with no one willing to even consider their request for temporary funds to overcome their difficulties. If they go down this road, it is a reprieve and they can really get back on their feet. More to the point, their credit rating can improve with assistance from the right lenders.

Best for businesses that wish to expand or launch campaigns

Traditional lenders may insist on a solid project report to show why borrower needs funds, how they will use it and how it will help them generate revenues. Small business owners rarely have the resources or wish to pay a chartered financial specialist to prepare such papers. Going this way helps them get their hands on cash that will help them expand the business, buy equipment, modernize, give their retail store a makeover or launch periodic campaigns to rope in customers.

No collateral

One of the finest advantages that borrowers like is that there is no need to submit any collateral or guarantee. Just their personal word is sufficient to help them get their hands on sorely needed cash.

Easy repayments

MCA repayments are usually tied as a percentage of the daily credit card sales. One can just as well opt for a fixed monthly repayment. In the former case, the repayment amount is low if sales are slow and higher if the sales are high. In any case, repayment extends over one year and by that time the borrower may have used the money wisely to increase revenues.

Payday Loan Providers

It is true that payday loans are not a good solution for many people in a budget crunch. The interest is high and the payoff term is fast. People who continuously struggle with money issues are less successful with this type of money help. The ‘cycle of debt’ skyrockets once a short-term loan enters in. The root of the borrower’s financial problems is masked by the end result. There are major contributing factors to a household’s budget demise. Why the debt problems for lower income individuals are left to hang on the heads of a direct lender remains a conundrum.

Frequent payday loans are signs of ongoing struggles. For the most part, when a person has a functioning budget, the only interaction they have with payday loan direct lenders is reading about them in the news. These folks have been able to manage their income well or at least controlled the damage from too much outstanding debt. The balance between earning and spending evens out by the end of month.

When debt becomes out of control and people lose their ability to use credit cards, many opt for easy cash. Best payday loan providers approve applicants who are not creditworthy. There are other alternative fast cash opportunities but these unsecured loans fair well. If the direct lender is using fair business practices and has competitive prices their services are used successfully by many borrowers. Yes, they are more expensive options than credit cards or personal loans, but it is the nature of the beast. There are some predatory lenders that do try to take advantage of an applicant’s vulnerable position. They do not account for all lenders despite what the papers say.

Government officials need to find ways to promote money management education, regulate credit card debt before it becomes destructive and regulate alternative lenders in order to keep the fraudulent ones out. Taking away choices altogether will send those in need on a desperate search for any company that has a solution. When safe direct payday providers are shut down or overly regulated, those that are not will receive applications instead. This is not helping. Laws are pushing desperate people into the hands of predatory lenders. The chances for debt cycles to explode are there. Unregulated companies will often have higher fees, poor service and bad collecting policies. Financial woes will multiply.

Borrowers that are credit challenged have already sunk into unmanageable financial trouble. It is going to take lots of hard work to become debt free. In the meantime, there are alternative money options which may or may not help a person stay the course. Credit checks defeat their attempts and they turn to no credit check direct loans for help. It may take a few months to pay it back, but at least the option was there to take care of the money emergency.

Apply for Payday Loan

1. Easy way to get out of trouble

Payday loan is considered to be one of the best methods to handle an unexpected financial situation.

2. Affordability and simplicity of the payday loan procedure

Payback loans can be available to those with low income. The procedure requires minimum documentation and banking operations.

3. The loan is obtained regardless your credit history

As a rule, payback lenders approve customers without going into a long process of checking your credit history, which makes the application easy and less time-consuming.

4. It is one of the quickest ways of getting cash money

That’s why such type of crediting is gaining popularity. In fact, this is what customers pay commission for. The quickness of obtaining cash money can sometimes be of vital importance. Don’t have enough finance to pay everyday expenses? Badly need money to repair your car or a member of your family has a medical emergency? Have faced with some unexpected need? Having tough time dealing with collection agencies on your back? Then applying for payday loan is one of the best variants possible.

5. Sometimes getting payback loan can save you from serious problems

Let’s imagine that you have taken a mortgage. It is for regular credit payment, but you do not have enough and you can lose your house. Comparing the cost of a short-term loan to the cost of missing a payment or, God forbid, losing your belongings, payday loan might be cheaper.

6. Taking a loan from a credit organization is simply business

Some people prefer dealing with credit organizations to asking for money from their friends or relatives, though the latter does not include fees. When you do not want emotions to get involved just go to the bank.

7. Various ways of submitting your application

Don’t feel like leaving the house, visiting banks and talking to people? There are a lot of ways you can get the loan. Apply online using information on plenty of web-pages where you can find the most satisfying terms of borrowing.

Direct Cash Advance Lender

What does financial loyalty look like? It is a trusting working relationship between borrower and lender. It doesn’t matter if it is money borrowed from a bank, a creditor, a private broker or a short-term direct cash advance lender each party involved should do as agreed upon. This means that any service lending money through loan applications or credit charges, there are policy privacy statements, terms and conditions and basic good business practices which must be kept in the forefront of any transaction. Customers must have access to company policies and a copy of the lending terms and conditions. Each company runs their business differently. It is up to the borrower to make sure they understand each service in respect’s to their transaction.

Just because you have been with one bank or creditor for a long period of time, it does not mean that their service continues to be the best for your situation. As businesses grow and change so do people’s needs. New companies or standing ones will often times create a better business offer in order to attract new customers. It is always good to read up on the offers and compare them to what you currently receive. Sometimes, all you need to do is go to the bank with a competitors offer and you will receive the same perks for staying put. Other times, they may just apologize and remind you about what they have already done for you. Changing banks isn’t hard, but it sure does create irritation as you shuffle money and payments to the new provider. Instead of giving up out of laziness, define what it is you are after and go with the company which will provide the service.

There are many people who stick to the same online cash advance lender when in need of quick money. If the company has been used in the past without bad practices, it is comforting to know that there is a direct lender that does process loans using best practices. Because the short-term loan industry is laden with companies who may not have the customer in mind when processing loans, it is important to heavily research new companies if you are going to leave a good one. Don’t ever stick to a lender that does not provide good service. It isn’t worth the hassle in the long run.

When it comes to credit cards, there are many larger companies willing to listen to your problems and help you out if you ever fall into a bind. As with any lending service, the more you communicate directly with them the more they will do to help. Their loyalty will be directly connected to how your history with them. If you are habitually late on your payments, they may not help you when you finally call.

Payday Loan Companies

In all its glory, these fast payday loan direct lending companies have made it easy for those who should be looking at cutting back on their expenses and lowering their debt. Instead of solving the problem of having poor credit, people seek out quick fixes. Before any more third party money is used, credit utilization rates should be understood.

Credit utilization rate is based on the ratio between how much you owe creditors and how much you could potentially owe. Take all of your credit card statements and set them on the table. Get yourself a calculator and find the sum of the outstanding balances for them all. This is your aggregate credit card debt. Next, go back through your statements and find the sum of the credit limits. This will tell you that if you charged every penny on each card, you could potentially be that much in debt. Finally divide the aggregate debt by your potential debt to find your credit utilization ratio. The higher your score, the worse shape your credit score is in. Since this ratio is used as approximately one-third of your credit score, it should be taken very seriously.

Individuals do have control over what direction their credit score moves. If you are looking to improve your number, then it is good to start by looking at the real scenario. How much is your take-home income each month? What is your total budget for monthly expenses? Is there anything left-over? What would be the best use of that money?

Besides spreading the extra out among paying off a priority debt you also need to think about saving some for any upcoming emergency. Why save and pay debt at the same time? It’s a good question. Many people like to place it all on a credit card in order to quicken the payoff pace. It seems like a great idea, but it won’t protect you from future money emergencies. If you don’t create a savings simultaneously, the next unexpected cost will end up back on the card diminishing some of your hard work. Using credit cards or applying for small loans with responsible payday loan companies on line may seem like a good solution at the time. In fact, for some people who have not built up enough savings to cover the extra costs, having these options can help save the day. The trick here is to only use what you absolutely have to use. Use what you have already saved and juggle what you can from non-fixed budget categories (i,e. groceries fuel, clothing). This way you can borrow the least amount of third party cash.

Get A Payday Loan Refund

1. Fraudulent loans – They are some of the most common among complainants seeking refunds. It is possible for the payday loans to be taken out in your name fraudulently. It is the responsibility of lender to verify identity of customer before approving the loans, but most are not that careful hence the many cases around this issue. If you start getting harassed for a loan, you have no idea about, you have every right to look into the matter. You can try to settle things with the lender or you can directly deal with the financial ombudsman service to get the assistance you need.

2. Unclear repayment – Repayment defaulting can get serious because your debt just keeps on piling in terms of interests and any other charges attracted by the failure to pay. As an applicant, you should get very clear terms of how to pay back the loan including the fees and timeframe. Before you take up the loans you should know the exact total you need to pay back and within what time. When such important information is hidden from you, you can make a complaint to have the extra charges refunded or unreasonable debts taken off your payday loan.

3. Recurring payments – Payday loan providers collect their payment through bank requests. Most use continuous payment authority and you should ensure that you are aware of what this is and you can cancel it. A good lender should also notify you before taking the money out of your bank. There are lenders who keep trying to get access to the funds throughout the day and this translates into huge bank charges for you at the end of the day. You can lay claim of such to have some of the charges offset by the lender.

4. Financial situation – You may be in need of the loan, but it is really up to the lender to determine how qualified you are in terms of repaying the loan on time. Your income, employment, mental health, age, credit history and identity are some of the serious checks the lender should check before approving the payday loans. In case you are unable to repay and the lender overlooked all details with regard to your financial situation, you may actually qualify for a refund.

5. Higher interest rates – Most people when taking out payday loans rarely pay attention to the interest rates. A desperate financial situation can make you ignore such hence end up being charged interest rates that are unfairly high making it harder for you to repay the loan. Lenders are limited to cost cap of around 0.8% of the total about borrowed. This should be inclusive of interest and any other fees applicable to the payday loan. If you are a keen borrower, you will be able to tell when the interests are excessive as well as the fees and this way you can claim for a refund from your lender.

Get an Emergency Payday Loan

Payday Loans Are A Booming Business

Payday lenders have had seen booming success worldwide, and credit that success to offering a service that was not formerly available. They point out that emergency cash loans offer an attractive alternative to people who are not able or willing to use less expensive conventional routes to borrow money. Some companies that offer emergency cash advances in the UK have described their approach as a handy financial service for young, Web-savvy borrowers, accustomed to the ease and convenience of instantaneous online communication. These applicants often feel left out of the conventional banking system. Today’s modern consumer, raised entirely with social media, can even apply for these micro-loans using their smartphones, with money transferred to successful applicant’s bank accounts within minutes.

Compare Payday Loans With Other Loan Types

Many types of short-term loans can seem expensive when the fees associated with the loan are factored as yearly APR. For that reason, payday lenders prefer to compare their loan products to bank overdraft fees and other charges that traditional lenders use to recoup funds. Many payday lenders don’t even characterize their business as banks, simply as another form of Internet technology, used to connect willing borrowers with willing lenders.

Payday Loans Are Available 24/7

As traditional outlets for loans become harder to find and are requiring larger and larger amounts of paperwork for even small loans, payday advances have stepped in to fill the vacuum. They’re available day and night, seven days a week, and in many cases the process is so fully automated that loans are granted without the borrower ever having to speak to another person. After applicants have established a track record of successfully paying off cash advance loans, some lenders only require applicants to text the amount of the desired loan, and the term of the loan desired, and the money is instantly made available.

So Why Would I Pay the Added Interest?

Sometimes it’s an unexpected emergency, or it may be that an opportunity has come up you couldn’t possibly pass up. Is it tickets to the playoff? Has a friend obtained access to ringside seats at the “fight of the century”? Or maybe you have committed an unforgivable sin and forgotten your significant others birthday…

Whatever the reason, you’re short on cash. If you haven’t got credit cards and maybe your friends and family are not in a position to help out. What do you do?

It’s increasingly common for those in immediate financial need to approach a short-term lending company for a “payday loan”. These loans are often unsecured, meaning the borrower has no collateral to provide. This makes the loans a high-risk cash advance for the lending company. If the borrower bails, there’s nothing of value to collect. They compensate for the increased risk by charging very high-interest rates.

The applicant usually must provide proof of employment, and government issued identification. The idea is that when the applicant’s next pay check is issued, the funds will be used to pay off the loan. In some cases, the loans may be made for the borrower to purchase a car or other big-ticket item. In these cases, there is somewhat less risk involved for the lender. The item may be re-possessed should the applicant fail to repay the loan as promised.

So What is the Bottom Line

Companies around the world offer payday loan services including Canada, the United States, Australia and Great Britain. The rules and regulations regarding how much interest may be charged, and limits on the amounts of the loans vary depending on the country, state, province or county where the payday loan company is located.

Right Lender for You

Does the lender have a good reputation? Do they look genuine and are they able to answer all your questions? Don’t commit until you feel confident that you’re entering into an agreement with an ethical, legitimate lender.

Do they have a consumer credit license? In order to lend money in the UK, all lenders must hold a consumer credit license. Responsible lenders must adhere to a set code of conduct according to the terms of their license. Avoid borrowing money from lenders who don’t have the consumer credit license as they could be trading illegally.

Are you clear on what you will be paying and when? A responsible lender should provide you with a clear schedule of the repayments of any money you borrow, including the dates, amounts and how it should be paid.

How long will you have to pay back the loan?This varies from lender to lender. Some loans would need to be paid back in 30 days, others might be longer. Make sure that you will have the money to pay the loan back by that date.

How much is the interest (APR) on the loan on top of the original amount? Make sure you find out what the APR figure is on the loan. Since payday loans are designed to be paid back quickly, you should be aware of what you’ll pay in interest. Compare the rates with a few different lenders to make sure you’re getting a good deal. And don’t make any commitments until you are certain you will be able to afford the repayments.

What will happen if you can’t afford the repayments? Find out from the lender whether there would be any additional charges if a payment is missed.

Is the company a real lender or a broker?Some companies which present themselves as a lender are actually a broker, and it may work out better for you to borrow direct from the lender. If you do decide to go with a broker, do you know whether they will charge a fee?

If the lender can transfer the money very quickly after the loan is approved, will they charge you extra for this service?

There are many different types of loans available, so make sure you do your research and this will help you secure the best deal.

High Rate Loans

REASON FOR PAY DAY POPULARITY

Here are the reasons:

  1. As a business model, it is proven to be resilient and profitable. Diverse portfolio, small exposure, short term nature of the loan and catering to a sector few traditional lenders touch.
  2. With Americans’ incomes not keeping pace with inflation, and increasing illegal immigration, there is growing need for Payday type loans as more and more people live from paycheck to paycheck.
  3. While there is State level regulation on Payday practices, this form of lending is highly unregulated and as yet unchecked in any real form by Federal government. And State supervision is spotty. So no wonder new Payday type lenders are cropping up all over.
  4. Because of small loans and not much oversight, entry barriers are low.

PROS AND CONS

Pros:

  1. Easy terms, no collateral
  2. Negative credit history is not an obstacle
  3. Very local
  4. Caters to a segment of population which has no other alternatives to cover their expenditures or budgets

Cons:

  1. Very high rates of interest (although many States have Usury laws, so Payday lenders skirt it by calling these “fees” or “service charges”
  2. Addictive. Since money is easily available, there is less incentive to save and forgo certain expenditures
  3. Does not improve borrower’s credit history–whereas getting credit from a traditional source, even a store, and paying it down regularly will actually improve your credit rating and open up other doors to borrowing

WAYS TO AVOID PAYDAY

  1. Get in the habit of budgeting your income and expenses and do it conservatively. This will help you manage your cash flow and enable you to predict it—that way you can find ways to either boost your income or reduce expenses. It also will help you to prioritize your expenses
  2. Diligently note down your expenses
  3. Try to put internal limits on when to use a credit card. I advised someone to not use a credit card for single-shop charges below $25. It is amazing how quickly she realized money was flowing through her hands. She never appreciated this when flashing credit cards, and making minimum payments.
  4. Pay off all or most of credit card balance each month. Credit card companies are only a slightly softer version of Payday lenders.
  5. I prefer loan from a friend or from family although I realize it is not always possible
  6. Treat Payday as the absolute last resort, before bankruptcy. That will help you strengthen your resolve to avoid them as long as possible
  7. Get Credit Counseling. Like someone who wants to lose weight must seek professional help, if you are unable to balance your checkbook, you need to see a professional financial advisor.
  8. See if you have an asset that can be monetized. It may be jewelry you do not use or a house bigger than you can afford. This is the absolute first step to repairing your financial health.

Quick Cash Loans Work

1. Applying and submitting pay day loan forms manually by visiting a financial institute or a bank

2. Applying and submitting pay day loan forms through the World Wide Web

3. Applying and submitting the pay day loan forms through telephonic services

These approaches make the application process time efficient. Also the application form for pay day loan has been designed and developed keeping in mind the urgency of the applicants and includes only the mandatory fields that may include:

a) Full name

b) The applicant’s current employment status

c) Recent telephone bill

d) Recent residential address

e) Recent pay-stub

f) A voided check

g) The applicant’s valid bank account

h) Complete bank statement

i) A copy of applicant’s social security card

j) A copy of applicant’s state issued ID etc.

k) Sold references of other people

The information obtained through these application forms is verified by the companies offering the cash loans. Any further information required by the companies is found out through their own network. However, the individuals have to be honest when filling out these forms or their loans will get rejected. Even those individuals who do not have a strong credit report can apply for pay day loans and easily manage their financial troubles.

Unlike traditional loans, pay day loans or cash loans do not require collateral but consider the employment proof of their applicants as collateral provided. Applicants who wish to apply for cash loans must make sure to borrow an amount that they can easily repay on time, otherwise they might head straight into a debt trap. The penalty fee for pay day loans is very high and can end up being many times the principal borrowed.

Therefore pay day loan borrowers are advised to carefully read the terms and conditions of their pay day loans company and get clarification about unknown terms and jargon. This will prevent any misunderstanding later on. Also, it is important to avoid the cash loans company that penalizes their borrowers for paying earlier than the agreed time. It is also important for borrowers to get information about the limit imposed by the state on the interest rate that these companies can apply to the quick cash loans. This will help borrowers in bargaining for the loans at better interest rates.