If you are a business owner and the economic recession has somehow affected your business, what are the options available to keep your business afloat?
Most business owners who are not able to access funding from banks and financial institutions due to financial recession are taking advantage of their individual capabilities and personal situation in order to gain access to extra funding through personal loans.
Many banks in Australia along with several non-bank lending institutions offer personal loan facilities to help individuals address their financial needs. Boxer Calvin Klein Baratos This loan facility is one where the borrower, in most cases, need not pledge any form of security or collateral to guarantee repayment of borrowed amount. Some banks and non-bank lenders may require collateral for bigger loan amount.
Why would you opt for a personal loan?
As in other countries, taking out a business loan, especially if the borrowed amount is significantly big, could be a discouraging endeavour. Some banks require too much paperwork and documentation that prolong the screening and application process. These financial institutions would prefer that the loan they approve is attached to the borrower’s property or asset. This provides that even in the event of repayment default, the bank has something in their possession which they can dispose of and get the sale proceeds to repay the borrowed amount plus interest.
Instead of going through a rigorous process, one can simply approach the bank or a lending firm for an unsecured personal loan. Boxer Calvin Klein You are bound to enjoy the following benefits:
No Restriction on Use
Personal loans allow flexibility of use. This means you can use the money you borrowed from the bank or lending institution for any purpose – to pay for tuition fee or to buy an appliance or to fund a holiday, among others. Once the loan amount is released to you, you have the freedom to decide on how and where you will spend the money. What the banks and lenders are more concerned with is the borrower’s ability to repay the loan amount at the agreed time.
Unlike other types of loan, access to personal loan is relatively quick. There are banks or lending firms that can process the loan in 1 day. Hence, this loan is ideal for those who need emergency funds.
Less Documentation Requirements
Most banks don’t require a lot of documents to process personal loans. Unlike home or car loans, a personal loan requires basic documents such as proof of identity, residence, birth, and income. Learn more about personal loan requirements in this checklist.
Personal loans do not require any form of security or collateral for approval. It is only if the amount being borrowed is larger that banks would require a property or asset to serve as collateral or security.
Flexible Loan Terms
Personal loans generally have shorter tenure. Loans can be repaid in 1 to 7 years. The borrower can also choose mode of repayment – weekly, monthly or fortnightly. Personal loans also allow borrowers to repay the loan early without additional fees or charges.
Borrowers can approach the bank or lending firm directly, without going through a middleman or agent. This translates to savings in fees or commissions, and unnecessary delays in processing.
Lower Interest Rate Than Credit Cards
Borrowers are advised to choose personal loans over credit cards because of the high interest rates charged by credit card providers.