Archive June 2019

Can Payday Loan Help Small Businesses?

Many may be familiar with the situation when money is needed here and now. Whether you are a natural person or a legal entity, you may have difficulties with the finances that were sharply needed to cover the debt, the necessary purchase or for the development of your own business. You can apply for a loan from a bank, but in addition to them, the Payday Loan also gives loans to the market, and they do it on a rather large scale. For example, in the capital of such organizations officially there are almost a thousand.

 

How to properly take a microloan

How to properly take a microloan

Director of the Russian Microfinance Center shared information on how to properly take a microloan and how much such funding can be useful for young businessmen.

First of all, payday loans should be divided into three categories:
1. “Loans to salary” – some kind of express loan for a short period. The interest rate in this type of lending is quite high, but it is a question of small amounts. Thus, the payment on the loan in the end can be 1.500 – 3.000 rubles. But such payday loans are more suitable for individuals, in cases where money is needed now, and before the salary a few more days.
2. Provides lending services, according to characteristics similar to a conventional loan in a bank. Here, the dates are already calculated in months and the rate on such loans is close to bank loans – 25% – 30% per year. The usefulness of such payday loans for small businesses is already causing much less doubt. In addition, applying for and getting a loan from an Payday Loan is easier and faster than a bank loan.
3. Non-profit organizations created to support small businesses that have the right to issue loans, having budgetary funds in their assets. Often, by applying to such a fund, you can count on a loan with a small interest rate – about 8% per year.

 

What is the Payday Loan different from a bank loan?

What is the Payday Loan different from a bank loan?

 

Payday Loans should be treated a little differently than bank loans. Payday Loans can help small businesses more often than banks. They are more suitable in the case when money is needed urgently, a vivid example of this is the cash gap. Unlike banks, Payday Loans have a more flexible customer relationship policy, and there is an opportunity to choose an individual solution. If an entrepreneur turns to non-financial organizations, he must be prepared for the fact that his candidacy may not be suitable for the requirements relating to the type of the company’s activities and the purpose of the loan. With regard to the use of budgetary funds issued – it will be necessary to report to the creditor on what and when the money was spent.

 

How to verify the authenticity of a Payday Loan

How to verify the authenticity of a Payday Loan

In order not to fall into the hands of fraudsters, you need to make sure that the microfinance organization acts legally. All existing Payday Loans are registered in the RTT Finance register, in order to check the company that the borrower decided to contact, you need to go to the Bank of Russia website and, without registering on the resource, find out the authority of the organization. Also, all Payday Loans must be members of an Self-Regulatory Organization. There are several such organizations, with their list, also available on the Central Bank website. And already on the resource SRO find the right organization.

SMS credit From 18 Years old

The Latvian rapid credit industry is developing very fast and more and more companies are offering their lending services to consumers. Both young and old find out about the ability to borrow quick credit from various ads or acquaintances. As we know, it is quite easy for younger people to be persuaded about taking such credits or about how much extraordinary income would be useful.

 

Young people really need credit?

Young people really need credit?

Of course, money can be useful in any situation, but just how much it is needed and do young people really need credit? The answers to this question are different, because everyone’s life, experience and surrounding circumstances are different. Therefore it is not possible to judge the whole group of people. SMS credits are one of the ways you can apply for a short-term loan. Several years ago, Finland introduced a new technology that enabled credit institutions to apply for a loan by sending a simple SMS to the customer.

 

How SMS Credit processed

How SMS Credit processed

This technology was also introduced in lending companies in other countries, including Latvia. Currently, almost all non-bank Latvian lenders offer SMS services. Usually the process of using this service is simple. When registering, you must provide your phone number on the company website.

This number is later sent to a confirmation message. After signing up, you need to send an SMS with a specific text, loan amount and repayment date to the number indicated by the company. Such a service is easy to use if you need a quick loan but do not have access to the Internet. The issue of quick loans has also been discussed among most non-bank lenders in Latvia.

 

Young people is allowed on credit but limited

Young people is allowed on credit but limited

In practice, all quick credit issuers have agreed that loans cannot be issued to persons under 20 or 21 years of age. There is only one creditor in Latvia – 24Lenders, which offers both SMS loan service and short-term loan from 18 years. This is also the only option for an 18-year-old to use an SMS credit service. This creditor has also set other criteria without a minimum age. There must be a permanent resident of Latvia with good credit history and regular income. The official workplace will certainly be able to convince the lender of the customer’s solvency.

So we can conclude that the credit for the 18-year SMS is a real thing, but the likelihood of getting such a loan is minimal. The lender is just one and absolutely must meet all the criteria put forward by the creditor.