What are Loan Businesses?
It is common for businesses to search for funds when they first start a business. When it costs thousands of dollars just to get started, you can imagine that this is not easy to come by. This is where loan businesses come into play.
Loan businesses provide funding for companies that may need to expand or are in financial trouble in exchange for payment.
These agreements require monthly charges with a percentage of interest each month, so over time, you will be paying back more than they gave you initially. This is the drawback and risk of not having the funds to get started at first.
We caution you to read the terms of service when you are signing up. They can keep you from paying back early if you have the funds, as they want you to pay interest. After all, this is how they profit from these loans, so make sure to read the fine print.
There are various loan companies to choose from that give specific amounts of loans for different credit scores. BlueVine is unlike other loan lenders since they are willing to give out loans to people with bad credit.
Typically loaners are looking for good credit since they will most likely be able to pay off their loans.
People with bad credit will be less likely to pay them off, meaning that BlueVine will have difficulty getting their money back. In turn, they will charge for fees, interest building up, and penalties.
OnDeck is a loan company that specializes in short-term loans. They give out funds from 5k-250k with same-day funding. To apply, you will need to fill out a loan application and meet with an advisor to find out the best loan for you. Once you are ready to sign an agreement, you will receive your fund.
Same-day funding is the selling point of OnDeck as typically loans can take up to 7 days to be given. This may sound great, but it is still important to consider interest rates. So be sure to do thorough research for yourself as interest rates can vary from person to person depending on credit score, revenue, cash flow, and time in business.