Easy loans

Easy loans are the loans which are characterized by easy terms and conditions. The basics of easy loans do not depend upon the traditional loan system. Instead, the unconventional means are used in which the merchant and the lender both are equally getting the benefit.

What is the difference between easy loans and traditional loans?

The traditional loan structure is built on strict policies and a straight forward system. The loan is taken from firm organizations like online loan lenders, banks, etc. You get the money at a fixed interest rate and payback at a regular interval without any flexibility. 

But before getting the money, the lender or bank checks your credit report, your annual salary in dollars, your need, the requirement for which you need the loan and savings from which you have to pay back the amount of loan. 

These things must be checked up by the organization to give you the loan. You must have a good credit history, more than average annual salary and a solid reason to get the loan. Even after all these essentials, you need something like your car or house as security. If you are unable to pay back your loan, the bank or lender can take your car or house legally.

Easy loans differ from the traditional loan system. The recent economic boom has increased the loaning business. Now it is not limited to banks only. Several organizations are offering loans on easy terms and conditions without putting anything on security. 

Getting a loan from such lenders is easier as compared to the traditional loan system. Even if you think of applying online, filling up your essentials and after processing your application, the company can start funding even in just the next business day. The payback terms are also quite easier. You can pay back in the monthly, quarterly or annual time frames.

So the perks of easy loans are:

1. Eligibility: The eligibility criteria for applying for an easy loan is quite simple and less demanding. The company just asks for your basic personal and account details.

1. Easy Approval: These loans are approved easily by the companies. Usually, the loan application process takes a couple of weeks but with the easy loan, your application processing time will be limited to a few days mostly within 1 or 2 business working days.

1. Quick Funding: Easy loans offer quick funding. As soon as your application is approved, you will get the funding in the form of a direct deposit in your account or cheque.

1. Easily accessible: These are easily accessible. You don’t have to get up and visit downtown just for this purpose. You can contact the company easily on the internet. Submitting the online application, making the suitable plan and repayment of the loan, all can be done sitting on your couch in the bedroom on the internet.

Types of easy loans:

1. Crowdfunding: Crowdfunding as the name indicates is a type of loan in which loan amount is collected by small deposits of many people. The people are united over the internet where they invest their small amount which is collectively offered as a loan to merchants and the end profit is distributed between the investors.

With Crowdfunding platforms, you can get small loan amounts easily on easy terms and conditions from vast potential funders.

1. Advance: The institute in which you are working usually presents such offers for its workers. You can draw an advance salary for the next few months as a loan in order to fulfill your requirements. The process is simple. As you are the employee of the company, so the company knows all your details and background. There is no trust issue making the processing time shorter and simpler. The loan amount can be repaid by cutting half or a quarter of your salary.

1. Line of Credit: It is different from a traditional loan in a way that it gives you access to the “on-demand” money when you need it. If you get a loan, you have to start paying back the very next month or the year depending on your plan whether you use it or not. But that’s not the case in the system of the line of credit. You have access to the money. But if you are not using or withdrawing the money, the company will not claim any installment.

There is a certain time period in which you have to draw your money. That time frame is known as “draw period”. This period is usually extended to a couple of years. You can pay back the loan amount with a lesser interest rate during the draw period. 

But once the draw period is over, you have to repay the amount in the form of installments with a standard interest rate.

The line of credit can be secured or unsecured. It means there are companies offering a line of credit without any security, your house or car as collateral in an unsecured line of credit. But in a secured line of credit, you have to use your house or car as collateral.

1. Invoice Financing: Invoice Financing has grown rapidly over the past years. Most businessmen know this term but if it is new for you. Let me explain to you. Invoice financing is growing the business by selling the invoices to a financing company or potential funders. It ensures a healthy cash flow in the company. The invoices are kept as collateral for the money which is being loaned.

It is most suitable for the businessmen who have a well-established working system and they need to grow their business in multiple domains. 

1. Payday Loans: These are not mostly used by the people except if you are left with no other choice because of high interest rates and strict loan terms. If you need instant loans check SiLoans.com

1. Merchant Cash Advance: In merchant cash advance, the lender gives the loan of a fixed amount and the repayment is being made by the percentage of future sales of the product. It is most suitable for those who have a bunch of credit cards. 

If you have a well-established business and you have invested all your money in your company product. You will earn the revenue of your products in the near future but you need money urgently then this loan is best for you. 

You can easily get the loan after being checked by the lender about your company, the products, and its sales. But the problem is a short repayment time. The loan amount will be directly cut from the sales of your product. 

Some companies also offer a fixed repayment plan. In which the sales of the product are not linked by repayment. Instead, the business working days are the factor for returning loan amounts. 

1. SBA Loans: SBA (Small business administration) loans are one of the best ways of growing your company in this critical time frame of economic boom. These are linked with the government adding security and trust of the merchant. 

Most of the time, the government comes up with such innovative ideas to support the small businesses run by the people with easy terms and conditions and lower rates of interests so overall increasing the worth of economy in the country. 

Sometimes the government guarantees the loan amount too. This means that if you are unable to pay back the amount, the government will back you up for the amount which is guaranteed. 

SBA loans can come up with 500 dollars to 5.5 million dollars depending upon your company’s net worth. It offers an interest rate of as low as 6.5% with repayment time extended up to 25 years.

The traditional banking system considers this too risky to give loans to small businesses but with the guarantee of the government, they support the merchants. However, for getting an SBA loan, you need to put up a lot of paperwork and personal efforts. The minimum requirements include 2 years of company’s history under your command, a credit score of 650 and annual revenue of 100,000 plus dollars. If you are not qualifying for these criteria you need to build up a lot.

1. Peer to Peer Lending: Peer to peer loans involves borrowing the money directly from the lender without any involvement of the bank or any organization. Mostly the individual getting the loan and the investor directly contacts on the internet and discuss their terms and conditions. The environment is user-friendly and more casual than the formal bank proceedings. 

This is profitable both for the lender and the merchant. Since fewer people are involved in it and there is no third party who is taking the commission so the profit resulting in lesser extra fees and more revenue. You can get the loan amount more easily on easy terms and fewer interest rates as compared to the traditional lenders.