Personal Loans: 10 Alternatives to Bank Loans
Banks loans can be crucial to the survival of your business, but they have made it increasingly difficult to acquire loans from. Apart from bank loans, there are other types of financing that you can apply for. These include:
Online Payday Loans: The loans are applied for online and are given against your salary. These are small loans meant for emergencies.
Emergency Payday Loans: The loans are available online and approved almost immediately. Most lenders will deposit the loan in your bank account within one hour or less.
Car Title Loans: This is given against the title of your car. If you fail to pay it back, the lender will repossess and sell your car to recover the money.
Credit Card Loan: The is given against your credit card limit and has to be paid back within 30 days. No credit checks are done with this loan.
Credit Union Loans: These loans are given at lower rates than bank loans. You must be a member of the credit union to qualify for them.
Micro-lending Loans: The loans are mostly offered by non-profits to small businesses. The lenders look at the performance of the business and credit score of the owner when reviewing applications.
Life Insurance Loan: This loan is given against your life insurance benefits. The amount of loan you will qualify for will depend on the amount of life cover you have.
Factoring Loans: Factoring lenders advance businesses 70 to 90 percent of the value of receivables and then assume the responsibility of collecting the payments.
Secured Loans: These loans are given against a valuable asset, usually your car or land. The loans come at low-interest rates.
Merchant Cash Advance Financing: Here, the cash is advanced to a company before the sale of goods or services takes place.
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