You are in a jam and need to pay off some small, but critical business expenses quickly. Who do you call to help you to get some money legally quickly? Today there are several options for you that are either better or worse depending on your specific circumstances. Here is a look at some of the options you should consider.
Short Term Loans
Short term loans grew out of the difficult situations that payday loans sometimes create for borrowers. Where payday loans need to be paid back all at once, short term loans can be paid off in several installments allowing borrowers the opportunity to have more time to pay off the money they have borrowed. This alternative is much more desirable for many people and as a result short terms loans have taken off as a short term funding option. However, it is important to remember that in general, just like traditional loans, the longer you borrow money, the more interest you will be paying on it. So the goals remains to pay off your short term loan early and save on interest payments. If you can pay off some of your loan early, then it may save you money. Please make sure to work only with FCA authorized companies
Cash Advances / Payday Loans
Payday loans have become extremely popular because of the speed with which borrowers can obtain cash and the fact that they are tied to a borrower’s paycheck. These are the most popular type of quick cash loans and are made as advances against a borrower’s paycheck. The borrower must be employed with a minimum income that usually has a minimum guaranteed amount.The borrower must also have in good standing a checking account.
Payday loans will have a very high interest rate that sometimes tops 500% annual interest and lenders often add on additional fees that add to the costs of these loans. As a result they have gotten a bad reputation for putting borrowers in a tougher situation than the one they were in when they borrowed the money.
In spite of their high costs, these loans have become very popular because many people who need quick short term money simple have no other choices. Those with bad credit, no assets and low incomes have been largely shut out of the traditional financial system and look to these lenders for help. Payday loans can serve a great purpose; for those having a need for a relatively small amount of money, for a short period, it is often a welcome money option.
Credit Card Cash Advances
Virtually all credit cards offer a cash advance to their cardholders and a good percentage of cardholders utilize this feature. Borrowing the money is simple, you simply co to an ATM and make a cash withdrawal after entering a code supplied by the card issuer. Because everyone is familiar with going to an ATM to withdraw money, this ease of borrowing can quickly get out of hand. But this simple process hides an ugly secret which is that the advances carry hefty fees. There will be a fee of two to five percent of the money and interest rates as high as 30% on the money for the length of time you owe it. As with other credit card purchases, these loans often stay on the credit card for years with cardholders having no idea they are still paying on these high interest advances. Credit card issuers also tack the payments for these lons behind the payments for making purchases on the cards. So those get paid off first before you pay of the higher interest loans.
Borrowing money requires that you are sober about the terms, interest rates and fees associated with the undertaking. Do your homework. Each of these options may be right depending on your situation, but you can only know for sure by understanding all of the details.