Smart Solution with Small 12 Month Loans

Small is not avoidable. A small money crisis is manageable but you cannot take it for granted. Faster you tackle it, better is your financial balance. Such small crisis is easy to handle with a little amount. That little amount can be found through small 12 month loans that are easily available online. 

'At the time of need, it is necessary to get the funds urgently. These loans facilitate emergency funding. Instant approval decision and timely fund disbursal can protect you from last minute financial anxieties. However, no obligation of collateral and guarantor is included, and this makes the interest rates high. Customization in that case can help in many ways.

Take care of few things when you search for a loan deal

In the hurry to get funds, you may take some wrong decision and in finances, it is known as financial suicide. Make sure that there are few things that you notice before you pick a lender or loan choice. Take a look below –

1. Fair in practice and should not demand upfront fee – Many lenders ask for upfront fee from the loan applicants. This may include a big amount, but to tell you the fact, it is not a genuine lending practice and the lenders should avoid this. 

If the lender or loan company in your preference asks for the upfront fee then it is better to say ‘no’ and move on to the other option. Do not worry, there is no scarcity of ethical online loan companies. 




2. Compare with rational mind – Comparison is the best tool to get the best loan deal. APR, Repayment plans are the best ways to compare between the loan companies. Take the loan that suits most to your repayment capacity. However, the 12 month loans have small amount for instance 500 Pounds and the installments are never hefty. 

Still it is always better to find the most affordable deal. There are many other expenses in your monthly budget and it is not wise to increase the burden unnecessary. Small needs keep coming; next time also there may be a need for a loan.

Features –

Knowing about the features can help you take better decisions.

• Credit score status is not a constraint – It is better if your credit score is good or excellent, however funds are achievable despite less-than-perfect credit score. Fair and bad credit scorers can apply and avail funds. Remember, this does not include very poor credit people. In that case too you can borrow money without the collateral and guarantor. If your credit score is bad, it is advisable to pay the debts on time as this may help get an easy approval. With timely repayments, credit score improves and this makes the lender think positive on your loan application.

• Also come with payday loans – Have you ever heard of 12 month payday loans? They are available in the market without any obligation. Get approval decision in 30 seconds and receive funds in just 10 minutes. This option is useful only when your need is extremely urgent otherwise do not opt this. The interest rates of payday loans are very high and the installments can be hefty.

Small term loans are useful in any financial crisis. However, first explore the available choices of funds like savings, help from friends. When nothing is left then takes the loan. Manage the repayments well and repay on time. Good financial behavior brings many good financial opportunities in future.

Description – OsMoney offers 12 month loans without any collateral and guarantor. No upfront fee and no hidden charges. Instant approval decision, also available as 12 month payday loan.

Short Term Loans to Expand Your Scope During Financial Crisis

A short-term business loan is a right choice for a businessperson who wants needs some funds for their business. With too many loan options available on today’s market, you may feel hard to know the right type of short term loans for your business. 

Therefore, you need to know the different terms and conditions of the most popular f short-term business loans to make the process a bit easier. Short term loans are the secured loans and you need to mortgage some of your assets to avail such loans. 

Apart from that, these loans come with short tenure and you need to replay the amount within the deadline provided by the lender. 

Types of short term loans:

We all generally know more information about the short-term business loans. The short-term loan options will further categorize into four main types. Let’s take a quick glance at how your business benefits from these funding options.

1. Merchant cash advances: 

It is not a loan but an advance. The merchant cash advances are the most widespread and accessible type of short term loans. If you have credit cards, then you can avail such short term loans on your card. You just need to pay the EMIs to your credit card account and you will be offered some top-ups after certain period of repayment by the lenders. 

Merits:

• Flexible to change service providers 
• Comes with a higher fee compared to traditional loans 

Everyday deductions of your credit card receipts would seriously reduce cash flow, but you can also choose some monthly repayment system and convert your loan into personal loan in future. 

2. Lines of Credit:

This is like credit card loan and you would get a credit limit up to which you can spend as per your requirements and then repay the money you spent gradually. This type of funding often deals in cash without rewards such as travel miles or cash back. Moreover, the accessible APR is also lower in contrast to a business credit card.


Merits:

• feasibility of tapping the capital at any time 
• Just pay interest on the money you spent 
• Available for lower personal credits 

Build your credits and you will get the flexibility for your repayment.

3. Invoice Financing:

This form of short-term loan aims to offer a solution to a financial conundrum. With the help of invoice financing, the lenders would advance you a high percentage of your outstanding invoice. The interest rate is relatively very low. These short term loans are the most reasonable and easiest option, as you do not need to submit any collateral rather than your outstanding invoice.

Merits:

• No need to put any assets as your invoice will be the collateral 
• The credit of invoice business decides the loan rates and approval 
• Immediate access to your invoice value 

4. Short-term business loans:

As the name suggests, short term loans are the most simple and straightforward loan option available for you. As like the condensed version of traditional loans, your business receives a huge amount of cash that you would pay off along with the interest based on a predetermined payment schedule. But in that case, you need to mortgage some of your assets to avail such loans. Or else, you can also apply for some short term business loan as project loans.


Merits:

• Fixed payment structure 
• Instant funding 
• No or less paperwork required 
• Available for lower personal credit scores 
• a variety of business expenditure 

Low cost of capital is the most notable perk of short-term funding. Usually, short-term funding accumulates interest for a limited period while paying off. Hurry up to choose one among the four styles of short term loans that exactly suit your business needs.

Short Term Loans to Meet Your Urgent Short-Term Needs

Short-term loans are the ones that are necessarily offered for a short period of usually less than a year. They are one-time loans and come to use when it turns difficult for you to obtain a loan from a bank with a bigger tenure plan. These loans have their rate of interest decided on the amount of the principal advance and payback periods shorter in contrast to other forms of loans.

Individual customers or businesses alike get a short-term loan that is provided by banks or private financial institutions. These loans are usually unsecured in nature. However, few banks offer short-term loans only on collateral guarantees.

Interest rates for short-term loans

Factors that determine the interest rate can be the types of the loan, which are either payday loans or personal loans that are payable in a year’s time or less and the institution that provides these loans. Generally, the interest rate for short-term loans is close to 18%.

Features:

• Can be applied by an individual, a partnership or a business conglomerate
• Can be availed even by those having poor credit histories
• Can be applied online with minimal paperwork
• Can be both secured and unsecured in types depending upon the lender’s preferences
• Short repayment period, which is anything between 2 months to 4 months.

Types of short-term loans:

Personal loans:

• Can be availed by salaried or self-employed individuals
• Loans upto Rs 30 lakhs can be availed
• Loan repayment period ranges from 6 months to 5 years
• Minimal documentation and no restrictions on how to use the fund
• Quick loan approval and disbursement within 2 to 3 working days

SME short-term loans:

• Offered by banks to companies for meeting sudden fund crisis
• Eligibility criteria include the company’s minimum annual turnover
• Composite limit is either Rs.5 crores or a fixed multiplier to the borrower’s actual net worth.

Bridge loans:

• These loans tide you over till you get another
• Usually related to transactions like simultaneous buying and selling of properties 
• Can also be availed by companies waiting for their funds to be processed and notified
• Can be borne by companies to counter expected returns.

Also Read: Bridging Finance- Its Types, Important Facts about Bridging Finance

Demand loans:

• Provided by financiers to mitigate crucial financial concerns
• Can be secured by mortgaging insurance policies and NSCs
• Approved loan amount is a typical 70% to 90% of the maturity value of the collateral savings.

Eligibility criteria

It varies depending upon the types of loans mentioned above. However, a general set of criteria to avail a short-term loan is specified below:

For individuals:

• The applicant has to be salaried or self-employed
• The applicant is eligible with only a monthly or yearly income above a certain amount, pre-fixed by the financing company
• The applicant needs to be aged between 21 years and 60 years, but again based upon the policies conveyed by the financing company
• The applicant must be able to provide all the required documents

For companies

• They may require having a past involvement with the bank
• They may require showing a successful business proposition with a substantial profit making for a couple of years or so. 
• They may require being in continuous operation for a fixed period
• They may require making a specified yearly revenue

Short-term loans with poor credit history or no credit checks

There are financing companies that offer short-term loans to a seeker with a bad credit history. The interest rates are pretty higher but still, the loan is ratified. The poor standing of the credit score dictates the interest rate.

At times, the institutions don’t check the credit history at all. Sometimes they are extended to companies to meet critical financial obligations. This facility lies at the sole discretion of the financing agency.