82% of small businesses fail because of cash flow problems.
Small businesses, especially in the formative years, are capital intensive while lacking the stability to sustain them through the tough times. As a result, many business owners rely on loans to back them up.
Unfortunately, conventional loans are not easy to get. This has seen to the rise of payday loans, a type of short-term loan whose guarantee is your next paycheck.
If you need money quickly, you’re likely looking for the best payday loans online. This article will discuss what you need to know about payday loans and the options you have.
What are Payday Loans?
These are loans where the money is provided to you for a short duration until your next paycheck arrives. The loan amount is typically between $300 and $1,500 for a few weeks. As such, these loans are also referred to as cash advance loans.
Payday loans are excellent for solving temporary financial emergencies. They are designed to get you money when you need it. Therefore, obtaining them is much easier as they do not have as rigorous eligibility tests as a installment loan.
Best Payday Loans Online
Online payday loans allow you privacy and convenience. You can request a loan at home without anyone having to find out about your financial woes. You will only need to visit the lender’s website, fill out a form, and submit it.
A good lender should allow you the following options:
1. One Hour Payday Loan
If you are in a real emergency and cannot afford to lose any more time, this loan can help you out.
This payday loan option gives you the cash you need within one hour of your application. However, one-hour payday loans typically have more stringent requirements.
If you are looking to get the loan on the same day, ensure that the information you give is true and accurate, as payday loan lenders will not approve if they suspect any misinformation.
If all your details check out, you can expect to have the money deposited in your bank account within one hour. Ensure that you utilize the services of a bank that allows for such fast transactions.
2. 24-Hour Payday Loans
For normal payday loans, the whole process – the application, verification, and depositing – can take anywhere between 2 to 4 business days.
For 24-hour payday loans, the money will be deposited into your account within one business day.
As such, these are one of the quickest types of loans, considering that it can take up to a month to obtain a conventional loan.
3. No-Fax Payday Loans
This is another convenient type of short-term loan since you do not have to fax any of your papers. For example, you do not have to fax the payslip that proves that you can indeed make the amount that you claim.
You only need to be truthful about your average paycheck as you apply for the loan online. Apart from not having to fax your documents, all other elements of a no-fax loan are similar to that of an ordinary payday loan.
Lenders have ways of telling whether your information is valid, so be sure to remain truthful.
4. 30-Day Payday Loans
The average payday loan’s duration is usually around two weeks. However, some lenders do allow for extended durations, which can be up to 30 days or even more. Your circumstances are what will determine whether to take this loan.
For example, if you have had a major expense immediately after your payday and almost the entire paycheck went towards servicing that expense, you are looking to have something to sustain you for the next month.
Proving such a transaction to your payday lender will help you obtain a 30-day or longer payday loan.
5. Military Payday Loans
Many loan providers have special loan packages for individuals in military service. These packages are usually friendlier in terms of the fee provided as well as the interest rate.
If you qualify for a military payday loan, you stand to borrow as much as 40 percent of your monthly income.
Nonetheless, it is important to remember that there are stricter rules for people in the military when it comes to financial matters.
According to the Uniform Code of Military Justice, any military personnel who doesn’t meet their financial commitments risks being confined, transferred, court-martialed or even discharged.
Military servicemen within the United States can have the cash deposited into their accounts within two to four business days. Those that are overseas can get the money almost immediately since a wire transfer typically takes one business day.
Payday Loan Checklist Before You Apply
While a payday loan can be a great savior when you need cash immediately, it is vital that you know what you are getting into before applying for one. As such, don’t be too hasty. Look out for the following:
1. The Terms and Conditions
Here, check for the fees, interest rates, repayment period, and any other factor that affects the loan. This will allow you to know whether the loan is a good fit for you.
2. Automatic Renewal
Some payday loan providers can automatically renew your loan. Ideally, you want to pay off your loan on the due date and be out of debt. As such, ensure that this clause isn’t within your loan.
3. Your State Laws
Every state has its own unique laws regarding payday loans. These laws affect the fees and interest rates that you will be charged. Looking into these laws will allow you to spot a company that is overcharging you.
4. Contact Information
Since you are performing this transaction online, it is imperative that the lending company has its contact information published there. Before you apply, call that number for verification purposes.
It is always good to talk to a provider before taking a loan so they can explain everything to you in details.
Get Out of That Fix
Whether it is personal or business, a payday loan will get you out of that fix when you are in desperate need of immediate cash. This is why payday loans are becoming an increasingly popular source of credit.
It is important that you understand the different types of payday loans to help you get the best fit for you.
Looking for the best payday loans online? Bonsai Finance is the premier online credit financing resource. Allow us to help you choose the best personal loan for you.