Tag Archives: financial
Payday One Hour Loans – Living from Payday to Payday?
Most of us have heard the expression “living from payday to payday,” some of us have even lived it. But what happens when demands on your resources won’t wait until payday? One hour payday loans are a quick and easy way to handle the occasional financial crisis. Acquiring a payday loan is a simple Google search away to finding a qualified lender to serve you and your needs. Generally, all that is needed is to provide your personal information on an online form. Financial information is also shared so the funds can be deposited directly into your account. After the form is submitted and your information has been verified you are than approved. In most cases the approval process takes just minutes to complete. The funds are then directed into your account and available to you for immediate withdrawal.
The four major requirements that lenders have for buyers are: at least 18 years of age, employed for at least six months, an income of $1200 – $1500 a month and a bank account with direct deposit capabilities. These four things are key as you will definitely not be approved without any of these few essentials. Other factors may also come into play such as whether or not you are employed or just unemployed and collecting benefits, self employed or on active military duty. The customer can not be in default on any other one hour payday loan or have an active loan account with any other lender at the time of request. These are short term loans for amounts ranging from $100 – $1000 and are meant to be paid back quickly, usually in not more than two weeks.
Because one hour payday loans are secured against your next paycheck a credit check is not necessary and not a factor in determining your eligibility. Because these loans are so short term the interest rate is very high. In fact the cost can vary from $15 – $30 for every $100 that you borrow which is a steep price but this is most likely just a one time payment and the emergency relief this quick cash brings makes it worth it. You, as the borrower in effect are writing a post dated check to the lender for the amount of the loan plus fees. On the established payback date the lending institution withdraws the amount of the loan from your bank account. If the required amount is not available to them then more late fees and penalties are tacked on to your total.
While one hour payday loans are a handy and easily accessible source of quick emergency cash it is imperative that you repay the loan on time or your financial problems will just be compounded. Continually asking for extensions from payday to payday will eventually accumulate so much in interest and penalties that the borrower finds themselves in the position of being unable to fulfill their obligation. In extreme cases criminal prosecution is an option for the lender resulting in judgments against you. One hour payday loans are a very viable option for unforeseen expenses such as medical bills or car repair. Do your research, shop around and find the loan provider that best suits your needs. Compare rates, fees and payment options just make sure that you will have the resources to repay on time before you sign on the dotted line.
How to Borrow Money, Part 2
Debt Financing
Debt financing means borrowing money that must be paid back over a period of time, usually with interest. It can be a short-term: less than a year and a long-term more that a year. You do not relinquish any ownership rights by taking a loan and limited by obligation of paying a loan back with interest. This is why loan for new businesses usually secured by one or more of the following: owners personal guarantee, real estate, company assets, etc.
The disadvantage comparing to the equity financing is that you must make scheduled payments regardless of your companys financial situation.
Debt sources can be divided into two groups: non-professional such us relatives, friends, and employees, etc. and professional such as banks, credit unions, etc.
Financial Institutions, by themselves, traditionally provide short term financing for small and mid size businesses: line of credit, equipment loan, etc. Long term loans in many cases guaranteed by the Small Business Administration loan program that helps leverage out risk for financial institutions.
There are some pros and cons in both Equity and Debt Financing. The best capital structure will depend on many different factors. For more sophisticated cases I suggest to hire a seasoned Financial Consultant.
Points the borrower usually evaluates before you giving the money:
1. How good is your credit history
2. Do you a solid collateral
3. Will you be able to repay the loan
4. Does your management team have enough management experience
Your personal financial situation while starting a business
It is always a good idea to build your personal credit history. In the beginning your business does not have any credit history and lender will use your personal data to evaluate a loan terms. Order you personal report to see where you stand and check it for any unexpected errors.
Work with your personal budget. You need to understand that usually you will not be able to take any cash from new business for a while. Make sure that you have enough money to start you business venture and enough money to pay you bills until business will become cash producing.
Put together projections and classify your future business expenses. Some of the expenses will be one-time costs such as the fee for incorporating your business; some will be ongoing such as inventory, insurance, etc.
There are two types of expenses: variable such as inventory, sales commission, etc. and fixed such as rent, utilities, etc. If you feel that you do not have enough expertise to do budgeting and forecasting it might be a good idea to hire a professional to do that.
Yury Iofe, MBA
Universal Business Structured Solution
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