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Differences between personal loans, payday loans and small business loans.

Are you seeking for personal loans? Whether personal loans, payday loans or small business loans, this article will guide you on how you can get the loans you are looking for. This article is long as it tends to provide answers to the following:

• How to get a loan with bad credit
• How to get a loan with no credit
• How to apply for payday loans online
• Marketplace for online payday loans
• How to get a small business loan
• Different types of small business loans

Before you apply for any personal loans online, you need to understand that not all applications for personal loans or other loans like payday loans and small business loans enjoy approval. Do you want to know why many applications for personal loans, payday loans and small business loans are declined? Do you want to know the steps you need to take in order to get approval for your personal loan application? This article will throw lights on these questions. Before you go on reading this article, I want you to know that every loan company is out there to lend out money. What you need is to ensure that you get it right. When you meet their requirements, they will grant you the loans you desire. The frustrations that some people experience in getting their loans approved begin with applying to a wrong company. What some people actually need may be personal loans. If such people apply for payday loans or small business loans, the application may be turned down. In the same way, you can not be seeking for payday loans and applying to companies that deal in personal loans or small business loans. That is why I think I need to enlighten people on the differences between personal loans, payday loans and small business loans. Not only that, you will know where to turn to anytime you want any of the loans whether personal loans, payday loans or small business loans. So, let’s start with personal loans.

What is Personal Loan?

Since there are different types of loans, it is good we start this article by showing you clearly what personal loan means. Personal loan is unsecured loan advanced to an individual based on the borrower’s credit worthiness or personal credit rating. That is why it is generally referred to as unsecured personal loans.

However, it is important to mention that personal loans can also be secured. That is why you can hear people talking about secured personal loans and unsecured personal loans. When you are applying for personal loans online, one of the things you need to take into consideration is the Annual Percentage Rate (APR). Annual Percentage Rate (APR) is actually the cost of borrowing the personal loans. The cost may include things like the interest on the loan and the origination fee. Some people make the mistake of looking at the interest rate alone without taking into consideration the origination fee. If you apply for  personal loans through an organisation that matches consumers with lenders, you need to pay this origination fee. The origination fee will be deducted at source from your approved personal loan proceeds. However, going through an organisation that matches consumers with lenders can be advantageous. With just one application, you can be matched with vast network of trusted lenders and offered highly competitive payouts. The APR on personal loans varies between  five and thirty five per cent. The APR a lender will offer you will depend of many factors such as your work history, credit history, your collateral and the repayment period among others.

How to Get Cheap Interest Rates for Personal Loans

Do you know that having an access to cheap interest rates on personal loans can lower the burdens of such loans on the borrowers? If you like to enjoy lower interest rate on your personal loan, it may not fall on your laps just like that. It will require that you take some conscious steps in order to see this happen. So, how can you secure low interest rates on various personal loans? Taking these steps will help you achieve this objective.

Shop round.

Don’t make a mistake of settling for the first offer you receive for a personal loan. Some people believe that the only place they can enjoy low interest rates on personal loans is from their local bank. This can be far from the truth. No matter how cheap the interest rate your bank offers you may look like, you may not know whether it is actually cheap until you compare the offer with other offers from different places. At times, Credit Unions may offer better rates. Another effective way you can shop round is to visit online loans marketplace where you can be matched with different lenders. With one application, you will be able to receive different offers from various lenders. You duty is for you to review all the offers and pick the one that best suits your situation.

An example of such marketplace where you can find lenders for personal loans in one place is PersonalLoans.com while Blue Trust Loans can serve as a good alternative for payday loans.

PersonalLoans.com: Personal Loans Company provides an easy and convenient way for consumers to be matched with personal loans from $1,000 to $35,000. It works with a vast network of trusted lenders and offer highly competitive payouts.

Blue Trust Loans: Blue Trust Loan is a trusted leader in the instalment loan industry. They offer short term, personal loans ranging from $200 to $1,250. This is a better alternative to payday loans. You can pay back your loan over several instalments. Blue Trust Loans currently lends in 39 states, as well as Washington DC (AK, AL, AZ, CA, CO, DC, DE, FL, HI, IA, ID, IL, IN, KS, KY, LA, MD, ME, MI, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NV, OH, OK, OR, RI, SC, SD, TN, TX, UT, VA, WY).

Start the Process Early

Money is most expensive when you need it most. Personal loan is not what to rush into. If you intend to obtain personal loan, it is advisable that you start the process early enough. You don’t need to wait till the time you are too pressed for cash. If you wait till you need the loan desperately, you will not have time to shop around. You will be forced to settle for any offer that comes first. If you start early enough, you would have been able to have access to other personal loans with more flexible and favourable terms. You may ask, why would you start searching for personal loans when you don’t actually need it? Well, I am not saying you should apply for personal loan you won’t need. But if you know how to plan for finance, you will know when you will need to opt for personal loan. Planning ahead of time is part of financial management.

Improve your Credit Score

Do you know your credit score? You may need to check your credit score first so that you will know which loan you qualify for before you apply. Almost all personal loans will require that you have a good credit score. For those looking for personal loans with bad credit, I will rather advise that they should work on how to improve their credit score instead.

A bad credit score makes personal loans to be expensive for the borrower. Your credit score says a lot about your creditworthiness. If your credit score is bad, it is assumed that you are not creditworthy. With a bad credit score, you may not be able to access personal loans. If at all you are able to get a loan with bad credit, you will realise that the lender may give it with very restrictive terms. Also, the level of your credit score will influence the interest rates you will be offered on the personal loan. People with good credit score usually enjoy lower interest rates on personal loans than people with bad credit score (if they are granted at all). The average rates on personal loans can vary from 8% to 28% based on your perceived creditworthiness. Imagine how much savings you will make on interest alone if you can secure your personal loan at the rate of 8% as against 28%. It is better you check your credit score before applying for personal loans. If your credit score is not good enough, it will be better you address this first before you apply for personal loans. This will not only help you in securing approval for any personal loan you want to apply for. You will be able to enjoy cheaper rate. Apart from personal loan, other area where good credit score can be helpful is the renting of apartment. People with bad credit may find it difficult to secure an apartment.

Offer Collateral

If you have assets that you can offer as collateral, this will reduce the risks which the lender will have to carry. The lower the risk on personal loan, the lower the interest rate you will be charged. The only danger with collateral is that, if you are unable to pay off your personal loan, you will lose the assets to the lender.

Apart from the APR, there are other fees that may be applicable to personal loans. It is very important you know all these facts before you go ahead with any personal loan. With your knowledge about the fees, you will be able to ask your lender in case he is silent about them.

Late payment fee: All personal loans have their terms and condition which everyone seeking to obtain one must accept. Before your personal loan can be released to you, you must have agreed to a particular instalment payments. This is your obligation and it is expected that you always honour it as agreed. However, some events are unpredictable. Something may happen that will make you unable to make the payment at due date. In the event of late payment, you need to ascertain what the penalty will be. Some lenders allow some days of grace between ten and fifteen days. Thereafter, if you are unable to pay, you will be surcharged a penalty. The penalty can either be a fixed amount or a certain per cent of the unpaid installment amount. All personal loans have their own late payment agreement. This is part of what you need to consider.

Unsuccessful payment fee: To make the repayment of personal loans easy for the lenders, there may be a standing order that your account be debited by the instalment amount on a regular basis. However, there may be a time that you will not have sufficient amount in your account. If the payment should hit your account in such period, the payment will be returned unsuccessful. For every unsuccessful payment, there comes a penalty. This is a kind of fee people don’t put into consideration when hunting for personal loans.

Check Processing fee: In an attempt to avoid any unsuccessful payment, some people prefer issuing paper checks for the repayment of their personal loans. This means that checks will only be issued or presented for payment when they are sure there is enough money in the account to cover the instalment amount. However, you need to bear in mind that there is fee attached to check clearing. For instance, if check processing costs $5 and you need to pay for 36 months, this means that you will pay cummulative amount of $180 as processing fees.

Secured Personal Loans Vs Unsecured  Personal Loans

So what is the difference between secured personal loans and unsecured personal loans?

Unsecured Personal loans : Unsecured Personal loans do not require any collateral. However, the interest rate on this type of personal loan is usually higher than that of secured personal loans. The higher interest rate is a premium you need to pay for the higher risk the lender will need to undertake. Nevertheless, you will not have to lose your sleep about the fear of losing your assets in case you are unable to pay back your personal loan. Why would lenders grant unsecured personal loans when they know there is no collateral for them to sell if you are unable to repay the loan? Even though there is no collateral, they can still adopt other means to getting their loans back. Such approaches include hiring of debt collection agent or filing of lawsuit against you. The lender can also decide to report your unpaid balance to the credit bureaus. This can affect your credit score negatively. I believe no one will like to do what is capable of damaging his credit score.

Secured Personal Loans: This requires that you have personal assets which you are ready to put down as collateral. What this means is that in case of default, the lender will sell the assets in order to liquidate the unpaid loan balance. Therefore, if you want to put any asset as collateral, there is a risk that you may lose the asset. It is either you are confident that that you will be able to repay your personal loan or you don’t put any asset you can’t afford to lose as security. The interest rate on secured personal loans is relatively low. Also, if you are able to provide collateral for the personal loan, there is likelihood that the lender will grant you the loan. The lender will be having something to fall back on in case of default. Any asset of value can be used as collateral but the proceeds from the sales of such asset should at least be able to pay off the personal loan if you are unable to pay back. The lender may need to rely on his valuation of the assets. Whether secured or unsecured personal loans, you will be charged interest on the principal amount you borrow. Lenders will like to look at your credit score, payment history and your ability to make monthly payments among other to determine their interest rates.

For further explanation, we have variable personal loans and fixed personal loans.

Variable personal loans

Interest on variable personal loans is subject to change. This means that the amount you repay may vary over the life of the loan. The fact that you start repayment with a particular amount does not mean that will be the same amount that you will be paying throughout the life of the loan. You can also choose to pay weekly, fortnightly or monthly over the loan period. Another advantage of variable personal loan is that you can choose to make a bulk payment towards early liquidation of such loan. Some lender may require that you pay additional fee for early payment of the loan. If you need to pay a fee, you need to ensure that the fee is not too high to the extent that the early repayment becomes not worthwhile. This is one of the vital information you may need to ask before you opt for variable personal loan as some lenders are usually silent about this. If you shop around very well, you will find lenders that offer flexibility to make extra payment without a fee or penalty. Some also allow you to redraw your extra repayments.

Before you enter into any loan agreement, it is important you understand the repayment terms of various personal loans offers so that you can determine which will best suit your situation.

Fixed personal loans

Generally, most personal loans fall in this category. For fixed personal loans, the borrower will be asked to pay the same amount over the loan period. That is, fixed interest rate, fixed repayment amount over a fixed period.  So, once you obtain fixed personal loan, it becomes a fixed obligation that must be settled throughout the loan period without option for extra repayment. Peradventure you have enough cash for the early repayment of the loan; the penalty for doing that will be quite high. It may be cheaper for you to set such money aside towards the repayment of the loan. That will give you a guaranty that you will not default any time the payment is due. One major advantage of fixed personal loans is that it is good for planning and budgeting as you can determine with certainty your monthly loan repayment.

Benefits of Personal Loans

It is fast: Personal loans can be secured as fast as within one business day. This is actually fast when you compared it with other conventional loans which may take weeks or month before final approval is secured. Right from the comfort of your home, you can apply for personal loans online. If you are able to complete the application as prescribed and file documents that may be required from you accordingly, you can obtain personal loan without any delay. This will ensure that the loan can be made available on time to meet the purpose for which you are applying for the personal loan.

Availability: Before you can secure a loan from the bank, the bank will probably expect you to be a customer with an existing bank account with them. But with personal loans especially if you are going through alternative lenders, you don’t need to have a bank account. You can get personal loans from different sources ranging from friends, family members or through online lenders.

Interest rates: If you compare personal loans rates with that of credit card loans, you will realise that personal loans are relatively cheaper.

Repayment Plan: Repayment of personal loan is quite easy as it is usually stretched over a fixed period of time. The fact that personal loans have fixed interest rate, fixed monthly repayment over a fixed length of period, makes it easy for individuals to plan his cash flow.

Amount: The amount an individual can borrow ranges from one thousand dollars to one hundred dollars. This range is wide enough to care for different needs of individuals that might want to apply for personal loan. However, the amount of personal loan that will be granted to individual depends on some factors such as the applicant’s needs, ability to pay, the value of collateral available, applicant’s credit rating and the lenders involved. For example, those people seeking to get personal loan with bad credit may not not be able to access substantial large amount. The lender will like to limit their risks exposure.

Improvement in credit score: Many people apply for personal loans in order to consolidate theirs existing loans. If this is done properly, possibly with the guidance of a personal finance expert, seeking for personal loans can be a right step towards improving one’s credit score.

Why some applications for personal loans are declined

It is not enough to know how to get a personal loan in USA, you need to know why your application may not be approved. Just like any other loans, application for personal loans may be declined for various reasons. Below are some of the reasons why personal loans may not be granted to an individual. Please, note that these are not specific personal loan requirements. They are to serve as a guide to anyone that wants to apply for personal loans. If you live in USA and are sure that you may not have any issue with your application, you can go ahead to apply for your personal loans.

Below 18 years of age.

If you are below 18 years of age, you are not yet qualified to apply for personal loans. It does not matter whether you are able to pay back. It is just a basic requirement that personal loans should be granted to adults. To avoid frustrations, it is better to wait till you attain 18 years old before applying for personal loans.

Asking for unrealistic amount

How much do you need? Why are you applying for personal loan? How do you intend to repay the loans? What are the sources of your income? Do you earn enough income that will help you in the repayment of the personal loan? It is always better to have gotten a fair estimate of what your project will cost you before you apply.

Bad credit score

You hear something like personal loans for people with bad credit scores. I will not say that people with bad credit scores cannot get personal loans but their chance of securing the loan is slim. I think you can be a Judge here. Let’s assume that two people are applying for personal loans. One is having good credit score while the other is having bad credit score. You are in position to decide who will get the personal loans. Who between the two will you give the loan? I know your answer will be ‘the person with good credit score’. If you have checked your credit score and you are seeking for personal loan with bad credit, your option may be to find lenders that offer loans with no credit check. However, the applicable interest may be high.

Lack of Relevant Documentation

The documents required by each personal loans company may differ. However, the following may just serve as a guide. I am not saying authoritatively that these are what the loan company will require from you. But it will do you good if you have them readily available in case you are required to provide any or all of them. Also, the requirement from a person who is an employee may be different from the person who is self-employed.

• Proof of income: If you want to collect personal loans, you should be able to provide evidence that you will earn income. Even though personal loan is different from payday loans, you should be able to show the personal loan company that you earn income. This will give the personal loans lender an assurance that you will be able to pay back the personal loans. Proof of income can be a letter from your employer or your current payslip. Employees with regular monthly income can easily apply for payday loans online.
• Bank statement: Do you have any bank account? Any money lender may want to see your bank statement just to see the history of your cash flow; both inflows and outflows. This will also authenticate the proof of income you are submitting.
• Proof of valid ID showing you are over 18 years of age. Under age are not qualified for personal loans. To be sure that you are not under-age, you should be able to provide a valid ID that will show your age.
• Personal credit report. You need to check your credit status before you can have credit report anyway.
• For self-employed, some personal loans companies may ask for audited financial statements and rental agreement or renting statements.

No credit history

Before you can be granted personal loans, the lender will like to investigate your credit history. If you don’t have any or enough credit history, it may be difficult to ascertain whether you are credit worthy or not. You may think that the fact that you have never applied for personal loan before should be a plus. Ordinarily, this can sound very good. But at times, a known devil may be better than an unknown angel. It can be safer to lend to somebody who had secured a personal loan before and was able to pay back promptly than somebody who you are not sure of his credit pattern. However, you can still get a personal loan with no credit if you are able to find someone with good credit score to co-sign the loan application for you. The essence of co-signing is that you can’t pay the loan, the co-signer’s credit is going to be affected.

Uses of Personal Loans

• Kitchen renovation: Personal loans can be used for kitchen renovation. How much do you need to carry out kitchen renovation? The answer depends on many factors. You need to consider the size of the kitchen, the level of renovation involved, the quality of the materials you want to use, the complexity of the job and the person you want to engage. In order to ensure that you are not spending excessively on the renovation, you can get quotes from two or three re-modellers.
• Wedding celebration: Wedding expenses are high these days. People who cannot wait till the time they are able to save enough money to take care of their wedding expenses usually resort to getting personal loan. Instead of waiting for donkey years before settling down, personal loans will afford such people to quickly start their family lives. Greater number of people that usually go for personal loan to sponsor their weddings are those people who are not having age on their sides.
• Large appliance replacement: With the new changing technological trend, repairing old appliances may not be justifiable. However, the cost of replacing them is not a child play either. Many people usually resolve to apply for personal loan in order to finance their appliance replacement.
• Major automobile repair: Replacement of automobile is not as easy as replacing appliances. The cost of buying new car is far more expensive than repairing the existing one. Also, it can be easier for an individual getting personal loans than auto loans.
• Vacation: When you are still single, it is easy for you to just carry a bag and decide to go for a vacation. However, when you are married with children, it may not be easy saving for a family trip. Some people want their family to have a memorable trip. This may happen just in a while. To make the trip a reality, people do apply for personal loan.
• Debt consolidation: For people have two or three personal loans with varying interest rates and repayment periods, they can decide to take a new personal loan to consolidate the existing personal loans with new terms that are more favourable. Why will people go for debt consolidation? People do this to seek for lower interest rate and possibly longer repayment period. Also, instead of paying to two or three different lenders every month, they can concentrate on paying just one lender. This makes the job easier. But before anybody opt for debt consolidation, it is always better to seek professional advice.

People living in USA can apply for personal loans online and get personal loans sizes vary between $1,000 and $35,000.

Effects of Personal Loans on your Credit Score

Does applying for personal loans affect your credit score? I know many people want to know the effects of personal loans on their credit score. The effects a personal loan will have on your credit score can be positive or negative. It all depends on how you manage the loan. It starts with your application for the personal loan. Frequent applications for personal loans within a short period can hurt your credit score. The reason is that, each time you apply for personal loan, enquiry will be placed for your credit report. This is an indication that lenders are reviewing your credit report. The credit bureau may interpret this to mean that you are under financial pressure. This may lower your credit score. So, before you apply for personal loans, it is advisable to do some home works by looking into their requirements. Applying for personal loans that you meet the requirements will give you a better chance of getting the loan approved.

However, personal loans can help you build your credit score if you know how to go about it. One of the ways you can build your credit score with a personal loan is by ensuring that you make a timely payment of your monthly instalment. Credit bureaus look at your payment history as part of the parameters for calculating your credit score. In fact 35% of your credit score is based on your payment history, the timeliness of your payments and the age of your accounts. Having a good payment history with your lenders is a plus to you. If you can focus on this area and do it dutifully, this will increase your credit score. On the other hand, defaulting in monthly payments will definitely harm your credit score. Each time you default, you suffer a drop in your credit score. Before accepting any personal loan, it is important that you consider the payment terms of such loan so as to ensure that the repayment will not be difficult for you.

Your loan balance also has a lot to do with your loan balance. If you have a personal loan with large balance, this will have a negative effect on your credit score. In the same way, if you have two or three personal loans with substantial balance when added together, it will still have a negative effect on your credit score. The best thing to do is to pay back your personal loans as quick as possible. Those people that choose to obtain personal loan in order to consolidate their existing loans have to do this with care. If you want to use your personal loan to consolidate existing loans, you should ensure that you negotiate for lower interest. If repayment has been a problem, you should also negotiate for a longer repayment period. But if you actually want to use your personal loan to build your credit score, you should not only focus on timely payment of the monthly instalments. You should quickly keep your balance as low as possible.

Another important thing that lenders may consider is the ratio of your loan balances to your income. Although, credit bureaus may not use this to calculate your credit score, every discerning lender will definitely look at this. If the ratio of your loan to your income is too high, you may not be able to secure additional loan until you pay down your existing loans or you increase your income level. If at all you are granted additional personal loan, it will be at a high interest rate.

Payday Loans

This section will guide you on how to get payday loans in USA. A lot of people confuse personal loans with payday loans. The two loans are quite different from each other. If you have read this article to this point, I am not in doubt that you now have more understanding about personal loans. Here, I shall be discussing about payday loans.

What is payday loan?

In a simple definition, payday loan is simply a form of short term loan usually taken against future pay check so that the borrower can meet his immediate pressing needs. Payday loans can also be referred to as post-dated check loans, check advance loans, cash advance loans or deferred deposit loans. Payday loans are used to bridge a temporary gap between pay checks. For one reason or the other, a paycheck may be delayed for few days. What happens if you have utility bills to pay while expecting your paycheck? In times like this, some people resolve to obtaining payday loans. If you compare payday loans with personal loans, you will find out that it is easier to secure a payday loan. If you are looking for loans for people with bad credit, you may consider payday loans. Payday loans lender may not even check your credit. That is why some people refer to payday loans as no credit check loans. Example of a place to shop for payday loans is CashAdvance.com.

CashAdvance.com: Since 1997 the company has been helping visitors in need of short term loans (also known as a “cash advance”). CashAdvance.com has the largest network of lenders and the highest payouts in the industry. If you need money, and you need it quickly, whether for an emergency situation or an unexpected expense, CashAdvance.com is there to connect you with lenders.

The requirements for securing payday loans are not as stringent as that of personal loans. Nonetheless, each State has their specific guidelines regarding payday loans. Payday loans are considered as alternatives to personal loans for people with bad credit. However, before you can be granted a payday loan, you need to meet the following basic requirements:

• You need to be above 18 years of age
• You must provide personal identification
• You must provide details of your name, address, home phone number, and email address.
• You must provide proof of income. You need to have a steady flow of income to qualify for payday loans.
• You must provide a bank statement.
• You must provide a personal check. At times, borrowers may sign over electronic access to their bank accounts to receive and repay payday loans.

You can apply for payday loans online without visiting any lender’s office. If your online application is approved, the approved amount will be deposited directly into your bank account within the next business banking day. It is important to mention that meeting the above criteria does not automatically qualify you for payday loans. The lender may still need to scrutinize your application further by looking at the following:

1. The amount of the payday loan. I mentioned that each State has their specific guidelines regarding payday loan Payday loans range in size from $100 to $1,500, depending on the maximum amount allowed by your state law. If the payday loan you are requesting for is more than the maximum amount allowed by the law of your State, such application may be disapproved.
2. Your income level: If your income is low compared to the payday loan you are applying for, such application will be declined. Some States require that payday loans should not be more than 25% of your paycheck.
3. If your employment period is considered too short, it may be difficult to secure payday loans.
4. If you are already having a payday loan, you may not be granted a new one until the existing one have been fully paid.

How to get payday loan

With the tips given above, I believe you have a good idea what payday loans mean. Still wondering where can you get payday loan? You can apply for payday loans online by filling out the inquiry form online. This you can do from the comfort of your home as long you have a laptop with internet access. Within few minutes, you will be matched with many payday loans lenders. If your application is approved, you will have the liberty to go through the terms of the different payday loans. Among other, you should consider the rate and the originating fee before you accept the terms attached to the payday loan.  You will have to make available all the information which might be required from you. If everything is okay, the money will be deposited into your account. For the repayment of the payday loan, you will need to deposit post-dated check or you authorise the payday loan lender to make automatic charge on your account when the repayment is due. In case of late payment, the lender may charge you late fee. So, it is better you take all these fees into consideration before accepting any payday loan.

As mentioned before, Blue Trust Loans offers a good alternative to payday loans. The company actually offers different loans such as payday loans, personal loans, instalment loans, cash loans and advance loans. Find below some specific terms about obtaining loans from them

Availability and Restriction: You must be 18 years or older to apply. There is no cost to use their website. However, you should understand that not all applicants will be eligible for $1,250 loan or even any loan at all. Qualifying for final approval of a cash loan depends on various factors, including income and the state in which you reside. Blue Trust does not extend loans to Active Duty Military, their spouses or their dependents. Your supplied information may be verified with any number of independent verification and/or credit reporting companies.

Interest (Annual Percentage Rate) APRs: APR’s range from 471.7846% to 841.4532% depending on the duration of the loan and the loan origination fees.

Implications of Non-Payment, Late Payments, or Partial Payments: By agreeing to the terms of the loan, you are agreeing to pay back the loan and pay the principal and various loan fees included in the contract. Failure to pay back your loan according to the terms of your contract will result in additional fees and penalties. All non – payment fees and other potential fees will be set forth in the Loan Agreement, and you should refer to the Loan Agreement regarding specific non-payment fees.

Blue Trust Loans offers Installment Loans with a schedule of set payments. Loans may be paid in full at any time without penalty. Additional partial payments toward principal also may be made on any scheduled payment date. Paying off your loan faster than scheduled may reduce your overall cost of credit.

Credit Report, Credit Score and Impact: Blue Trust Loan is a lender and evaluates your information to determine if you qualify for a loan. Lenders that review your information often use 3rd party credit reporting agencies to evaluate your information and determine whether to offer you a loan. Typically, lenders in this industry do not order credit reports from Experian, Transunion or Equifax, instead relying upon other credit information repositories. As a result, your credit report may or may not be impacted based on the particular service used by the lender. You should monitor your credit from various credit monitoring services to evaluate your credit score. You should avoid completing multiple applications on multiple websites to minimize the impact to your credit score.

Personal Loans Vs Payday Loans

Having explained what payday loans mean, let’s try to compare the two different loans.

1. Size of the loan: Personal loans size range from $1,000 to $50,000 while that of payday loans range from $100 to $1,500. If the amount you require is quite significant, payday loans will not be a good option. You will need to apply for personal loans.
2. Duration: Payday loans last between one to two weeks. The borrower is expected to pay back the payday loan within two weeks or when he receives his pay check at month end. For personal loans, the borrower has between one and five years to repay the loan.
3. Collateral: No collateral is required before payday loans can be granted to the beneficiary. However, for personal loans, assets may be required as collateral. Although this is not compulsory but it might be required under certain circumstances.
4. Credit score: People with bad credit score usually find it difficult to secure personal loans. The health of one’s credit score has a crucial role in determining whether his application for personal loans will be granted or not. In case of payday loans, emphasis is not laid on the credit score. Instead, the lender is more concerned about the proof of applicant’s income and whether the value of next pay check is substantial enough to guaranty the repayment of the payday loan if granted. The lender may not likely check the credit report of people applying for payday loans. However, in case of default in payment, the Credit Bureau may know about it and this may hurt your credit score.
5. Annual Percentage Rate (APR). The annual percentage rate for Personal loans ranges from 3.5% to 20% while that of payday loans can be around 390% and above. That will show you how expensive payday loans can be.
6. Repayment term: Payday loans are not instalment loans. Both the principal and the interest are expected to be paid at once. The borrower must have deposited the check for the repayment with the lender before payday loan is released. In case of personal loans, repayments are made on fixed instalment amounts over a specific period of time.

Advantages and Disadvantages of Payday Loans

Let’s start with the advantages of payday loans. Below are the advantages of going for payday loans.

1. Payday loans lending institutions don’t give your personal and banking information to other companies if there is no default. Therefore your information is secured.
2. The restriction on the amount you can borrow at any given time prevents you from excessive debt. This makes payday loans to be easier to pay when they are due.
3. In term of application and qualification, payday loans or payday cash advance is quite easy when compared to personal loans and small business loans. You just need to ensure that you have sufficient income that will cover the repayment. It is also good if you have never defaulted on another payday loan in the past.
4. Both the online application and receiving of payday loans only takes a few minutes. Many payday loan lenders can give you a guarantee that you will receive your money within one hour after your payday loan application has been approved.
5. State laws and legislation tend to protect borrowers from extremely high interest rates and fees. It is advisable that you are familiar with the laws governing payday loans in your state.
6. Payday loans are flexible and short-term. You can pay them back easily within few days or when you receive your next pay check.
7. You can use the proceeds frompayday loans for anything. There is no restriction on how you can apply the money. You can spend payday loans the same way you would spend your income.
8. Many states prevent payday loans companies from charging interest rates above a certain percentage.
9. Payday loans are there for you during emergencies. You can use the money to pay for unscheduled bills as you can often obtain payday loan within an hour,
10. Application for payday loans is convenient as you can complete the whole process by filling online application online from the comfort of your house. Many payday loans lending institutions open their office outside of regular banking hours. Therefore, you can conveniently obtain emergency payday loans at any time without stepping out of your house. .

Disadvantages of Payday Loans

However, payday loans are not without their disadvantages. Below are the major disadvantages of payday loans.

1. Payday loans are just for a short period. If you need a loan for several months or longer, you may need to consider personal loans.
2. Fees and interest payable payday loans can be very high when compared with personal loans or small business loans. The fees can even escalate in case you are unable to pay at the due date
3. Payday loans are not accessible to people working part time or receiving unemployment benefits or social assistance. It is only available to people with full time employment. If you are a freelancer with no regular or stable income, you will probably not be eligible for payday loans.
4. If you don’t have a current bank account, you will not be able to receive payday loans. Payday loan companies expect that you have a current account so that the loan can be deposited directly into the account. Also, the payday loan company will be able to draw the repayment from the account.
5. The amount any payday loan company may release to you may not be more than $1,000 or $1,500 depending on the law of your state. If you need larger amount, you may need to apply for personal loan.

Effects of Non Payment of Payday Loans

Payday loans are very popular because of the fact that the amount involved is usually very small. Also, payday loan is very easy to access. Before you rush into any payday loan, it is important that you are sure you will be able to pay it back at the due date. If you are unable to meet up your obligation at the due day, you may soon find yourself in the cycle of debt. You may be trapped that it will become difficult for you to get out of it. Let me give you this example so that you can understand what I am saying.

If you borrow $500 for a payday lender and you are charged $125 for 2 weeks. If at the end of the 2 weeks and you are unable to pay back the payday loan, the loan will be rolled over for another 2 weeks with another $125 fee. Supposing after 3 months, you are still not able to repay the loan, the fee must have accumulated to $750. If you add this to the principal of $500, this amount must have grown to $1,250. Can you see how expensive payday loans can be? This is crazy? Therefore, if you know that there is possibility that you will not be able to pay at the due date, payday loans may not be payday loan may not be right for you. Below are the consequences of not paying payday loans when due.

Incessant Calls: If you have never fallen short on meeting your obligations to payday lenders, you may not know how disturbing they are. From day one your payday loan is overdue; you will start receiving calls from them demanding from you to repay your loan. They will not only call you, they can call your work place, friends and relations. If you are the type that doesn’t want your colleagues or friends to know that you borrow money, I believe you will not like this type of experience.

Credit Score: If you are unable to pay your payday loan, they may hire a debt collector to go after you. This may require that you are reported to major credit bureaus. This will definitely take a toll on your credit score. With bad credit score, it may be difficult for you to secure another loan.

Small Business Loans

If you ask any small business owner about the challenges he is facing in his business, he will possibly mention the problem of access of finance as one of his challenges. Every budding entrepreneur needs funds to actualize his dream. Unfortunately, it is not easy for small business owners to secure small business loans from the bank. A lot of people usually shared their pain with me on how they have applied for small business loans from different banks but all to no avail. So, if you are reading this article and you have not been able to secure your small business loan, you are definitely not alone. I will implore you that you should never give up. The truth is that some of these traditional banks are not keen towards granting small business loans to small business owners. The reason is that, they usually consider it risky granting small business loans to people who are not having experience running any business. To worsen the situation, some of the budding entrepreneurs normally don’t have any asset to pledge as collateral for their small business loans in case of any default in repayment. I think you can see why it is somehow difficult for these entrepreneurs securing small business loans.

However, I will say that all hope is not lost. I know how it can be time consuming and frustrating going from one bank to the other in search of the right bank that can consider your application for the small business loan. Definitely, if you search enough, you will land the right bank that can grant you such loan. The good news is that, with the help of alternative lenders, there are now lending marketplace where small business can find different lenders with multiple loans options. This means that you don’t need to start moving from one lender to the other before you can find a lender or loan option that is right for you. From the website of an alternative lender, you just need to fill an online small business loan application form. Within a minute, you will be presented with different small business loan options. A good example of market place for small business loans is Lendio.

Lendio: Lendio is the Number one Marketplace for small business funding. As such, they offer a number of different financing options for all kinds of small businesses. Whether it is an MCA, or more of a traditional Term Loan or SBA, they have a number of lenders in their network to provide these types of financing.

Another company that offers small business loans as an alternative to traditional lending institutions is Price Funding. Price Funding works with thousands of small businesses all over the United States across multiple industries, helping them achieve long term success. At Price Funding, they strive to understand the needs of each small business they work with. According to them, they know that each small business is unique with its own individual needs. They prove to be the solution small business owners turn to when they are looking to grow. Providing outstanding service to each and every one of our merchants is their number one priority. Most businesses qualify and get funded within 24 hours, no collateral, nominal paperwork and flexible payment schedule. Merchant must be based in the USA, have been in business at least 6 months with a minimum monthly revenue of $10k to qualify for funding.

Price Funding offers two types of small business loans namely Merchant Cash Advance (MCA) and Working Capital. The two small business loans look similar but the benefits and conditions for qualifying for them are a bit different. Below are the main features of the two small business loans offered by Price Funding.

Merchant Cash Advances: This small business loan is suitable for those who have sought for financing at a traditional bank or financial institution without any success. This particular class of small business loans may be a good option for people with little or no collateral, healthy banking history, or a poor credit rating.

Benefits:

• You can get between $3,000 and $500,000 small business loan
• Funding term ranges from three to twenty four months
• Approvals can be secured within 24 to 72 hours
• Collateral may not be necessary
• According to them, you can still get their small business loans if you are having a bad credit.

Conditions:

• Before you can qualify for these small business loans, you must meet the following conditions:
• Your business must earn minimum monthly revenue of $8,000 consistently
• You must have been in business for a minimum period of six months
• You must have no excessive bankruptcies or tax liens
• Your business must be located in USA in order to qualify for the small business loans.

Working Capital: This type of small business loans allows you to keep your business running without the fear of shortage of capital. Working capital can be used for inventory replenishment or for other operating expense. The good thing about this small business loan is that, once you have been approved and have the capital, you don’t need any fresh application whenever the money is needed. Money is most expensive when it is needed. The fact that you have applied for the small business loan and got approval before the money is needed, this can allow you to enjoy lower interest rates when compared to that of the traditional credit cards.

Benefits:

• You can get between $5,000 and $500,000 small business loan
• Funding term ranges from six to twenty four months
• Approvals can be secured within 24 to 72 hours
• Collateral may not be necessary
• According to them, you can still get their small business loans if you are having a bad credit.

Conditions:

Before you can qualify for these small business loans, you must meet the following conditions:

• Your business must earn minimum monthly revenue of $8,000 consistently
• You must have been in business for a minimum period of six months
• You must have no excessive bankruptcies or tax liens
• Your business must be located in USA in order to qualify for the small business loans.

In case you are not sure of which of the small business loans is suitable for you, it is better to make enquiry before you apply

If you want to increase the chance that your application for the small business loan is approved, it is essential that you apply for the right small business loan option. For instance, if you want to apply the small business loan towards the acquisition of an equipment, if you apply for working capital loan, such application will not be granted. The lender will see it as mismatch of fund. That is, a situation where you use short term funds to finance long term projects. On the note, I consider it important to share with you some of the different types small business loans available.

Types of small business loans

SBA Loans

This is one of the popular loans (if not the most popular) among other types of business loans. It is a government backed loan. SBA does not grant loans to anybody. There are some local banks and lending institutions that enrolled in SBA program. What you need to do is to identify such participating banks or lending institution and apply for your small business loan there. The fact that the loan is guaranteed by the government will make the lenders to be disposed to granting you the business loan. If you want to take this route to securing a small business loan, there are certain documentations which will be required of you. These include SBA loan application, personal background and financial statement, business financial statement, profit and loss statement, projection financial statement. Others include ownership and affiliation, income tax returns, personal resumes, business certificate and licenses, business lease and loan application history. Processing of SBA Loans requires some time to complete. Therefore, it is always advisable to start the processing on time. Under SBA Loans, there are many SBA programs which can help you to start and expand your business. These SBA programs are grouped into sub programs. The five major SBA programs are; 1. Loans for starting and expanding of businesses. Under this category are Basic 7(a) Loan Program, Certified Development Company (CDC) 504 Loan Program and Microloan Program. 2. Disaster Loans. Under this loan program, we have Disaster Assistance Loans and Economic Injury Loans. 3. Export Assistance Loans. Under this loan program, we have Export Express, Export Working Capital and International Trade Loans. 4. Veteran and Military Community Loans under which we have Military Reservist Economic Injury Disaster Loan; and 5. Special Purpose Loans. Under this SBA Loan program, there are CAPLines, Pollution Control Loans and U.S. Community Adjustment And Investment Program (CAIP) programs. SBA can be used for various purposes such as starting a business, working Capital, debt Refinancing, franchise purchase, commercial real estate purchase, equipment purchase, furniture and fitting purchase, business acquisition, leasehold improvements and new construction. It can also be used to finance cost hiring costs, marketing and advertisement costs. The interest rates range from five to ten per cent. The repayment period is usually between five and twenty five years. Please, you need to understand that SBA will not provide a hundred per cent guarantee for your loan.

Types of SBA Loans in Details

I think it is important that I highlight some of the features of the SBA loans mentioned above. Each SBA loan is packaged to serve specific purposes. Even though your application for SBA loans is genuine, if you apply for the wrong one, the application is going to be declined. So, let’s quickly look at these major SBA Loans

7(a) Loan: If you are seek for small business loans you can use as short term or long term working capital, 7(a) Loan will be appropriate. As a long term working capital, you can use 7(a) Loan for the construction or renovation of building, acquisition of machinery, equipment, furniture and fixtures. Under certain circumstances, you can also use 7(a) Loan for business debt refinancing (not personal debt refinancing). This is different from personal loans which can be used to refinance your personal debts. 7(a) Loans also provides you a short term working capital which you can use for the purchase and replenishment of inventories and contract financing.

The maximum amount you can get under SBA 7(a) Loan program is $5 million while the interest rates are within the range of 5.75% and 8.25%. The gap in interest rates is a factor of your credit score, the loan amount and the repayment period among others. You can actually negotiate the interest rate with your SBA lender. Generally, interest rates on SBA Loans are low because of the guarantee which the SBA provides. The SBA guarantee varies between seventy five and eighty five per cent depending on the amount involved. SBA 7(a) Loan period is between seven and twenty five years.

To be eligible for SBA 7(a) Loan, you need to meet the following specific requirements:

• Your business should be small (that is, it must meet the definition of a small business by SBA) and must be operated for profit
• Your business should be in the United States and you must have your own invested equity in the business. Your invested equity should be reasonable enough before you can qualify for SBA 7(a) Loan
• You have expected to have explored other alternative financial resources before seeking for SBA Loans
• You should be able to justify the need for the SBA loan and the need should be solely for business purpose
• You should not be defaulted on any debt to the U.S. government

Microloans: Microloans are a bit different from other SBA Loans in the sense that SBA doesn’t provide a direct guarantee for microloans. Instead, SBA makes funds available to not-for-profit organizations who are experienced in lending activities so that the money can be made available to the respective qualified applicants. Microloans are accessible to small businesses and certain non-profit childcare centres up to the tune of $50,000. It is not unusual that lenders will ask for collateral for microloans as these business loans are not guaranteed by the government. Small businesses and qualified non-profit organizations can use microloans to start and expand their businesses or operations. Specifically, microloans can be used for the acquisition of equipment, machinery, fixtures and fittings and as a working capital. Unlike SBA 7(a) Loan, you cannot use microloans to refinance existing loans or for the purchase of real estate. The repayment period for microloans is the maximum of six years while the interest rates grange between eight and thirteen per cent.

CDC/504 Loans: This is real estate and equipment loans and is geared towards job creation, actualization of public policy and small manufacturing. Essentially, CDC/504 loans are meant for the acquisition of fixed assets such as land, building, plant and machinery.

 The maximum amount that can be accessed under CDC/ 504 Loans is $5.5 million. The maturity terms for CDC/504 Loans are between ten and twenty years while the interest rates are pegged to an increment above the current market rate for five year and ten year U.S. Treasury issues. The assets being financed by the CDC/504 Loans serve as the guarantee for the loan. Notwithstanding, the lender may further request the personal guarantee of the principal owners of the business. You may visit SBA Website to check whether you are eligible for this kind of small business loans

Disaster Loans: This is a special packaged low-interest, long-term small business loans for  people whose businesses have been affected by disaster. Examples of such disasters include Louisiana Flooding and Super-storm Sandy.

Line of Credit

Line of credit is a type of small business loan that your financial institution grants you to enable you access to a certain maximum amount above your credit balance. It is just like a life line a business can quickly turn to during the period of temporary liquidity shortage. Before a business can be granted a line of credit, it must have a good banking and credit history. The difference between personal loan and line of credit is that, for line of credit, you make withdrawals from the amount approved by your bank or lending institutions according to your needs per time. Both interest and repayment are based on the amount withdrawn above your credit balance. For personal loans, disbursement of the loan is made in bulk and the interest rate is calculated based on the total personal loam. Repayments have to be fixed amount on a regular basis according to the terms of the loan. Line of credit is suitable for the finance of temporary cash deficit in order to keep the business operations going. This type of business loan can also be used to finance projects with unpredictable cash flows. If you think you may likely borrow multiple times with a short period of time, a line of credit may be cheaper and more convenient for you. Even though you may be granted a line of credit, you may not need to tap it. It is just to make borrowing convenient for you when required. And you only borrow as much as you need per time as long as the borrowing is within the approved maximum amount.

Merchant Cash Advance

When people seek for business loan and it seems not forthcoming, an option that can be considered is merchant cash advance. What is merchant cash advance? Merchant cash advance is quite different from traditional bank loans. You can refer to merchant cash advance as business cash advance. In this arrangement, a merchant will be offered a certain percentage of its future sales as credit in order to provide him with immediate working capital. This finance option is good for businesses with large credit card sales. Businesses that fit into this financing option are restaurants and retailers. If granted merchant cash advance, certain percentage of the future credit card sales will be applied towards the repayment of the advance. Though this option can be relatively easy for businesses that have large credit card sales, the interest high is somehow high. Interest can be up to thirty five per cent.

Professional Practice Loans

This loan is specifically packaged for the professionals such as lawyers, accountants, doctors, architects, engineers, insurance brokers and dentists etc. The desire of some professionals is to establish their own firm. However, in order to secure an office space, renovate the office, buy start up equipment and meet other business expenses, they require funds. Also, professionals may resolve to seek small business loans to facilitate growth and expansion. Professional loans can be secured or unsecured. But if you want to increase the chance of getting the loan approved, it is better to offer collateral. This will also reduce the interest rate chargeable on the loan.

Equipment Loans

If a small business should wait till the time it saves enough money that can be used to purchase the needed equipment, this may slow down the growth of such business. It depends on the type of business you do. There are some businesses that cannot be started at all until certain equipment is made available. Equipment loans are the right small business loans for the acquisition of such equipment. This type of small business loans can be used to finance purchase of motor vehicle, production equipment, plant and machinery, computers and other office equipment. Banks and other alternative lenders are usually inclined towards equipment loans. The reason is simple. The equipment doubles at collateral. In case of default, the bank or the alternative lender can sell off the asset to recover the equipment loan.

Working Capital Loans

What is working capital? Working capital is the portion of your capital which is used for the day to day running of the business. In accounting, working capital is the difference between your current assets and current liabilities. You need working capital in order to keep the business running and to settle short term obligations. You must have heard that cash is the life blood of any business. It doesn’t matter how profitable a business may be, if it lacks working capital, it will soon be grounded. Any time there is shortage in cash, it becomes difficult to replenish inventories, pay payroll and utilities expenses and so on. In order to cushion the liquidity challenge, working capital loans play important roles. Working capital loans are short term small business loans. Small businesses can secure working capital from their banks or alternative lenders. Working capital loans usually attract higher interest rates than normal small business loans.

Franchise Start Up Loans

Some banks and alternative lenders are more comfortable with financing franchise as against new start-ups. They believe that franchisees will have access to established and well tested systems which will be made available by the franchisor. By this, the risk of trial and error is already eliminated. Franchise loans can be used to pay the initial franchise fee, pay for business location and buy necessary equipment. It can also be used for working capital.

LPO Financing

LPO Financing allows businesses that have obtained purchase orders/letter of Award from reputable organizations to supply goods and services or execute particular contracts.

LPO Financing is meant for contractors and vendors of reputable organizations to obtain capital required to execute work orders and local purchase orders from these respective companies. This will allow the borrow access to immediate working capital needed to execute the contract within a given time frame. LPO finance is a short term business loan. It can be sourced from the banks or alternative lenders. The loan is usually restricted to certain percentage (say 70%) of the order. The proceeds of the order will be used to liquidate the loan.

Accounts Receivable Factoring

Accounts Receivable Factoring is a is a type of loan arrangement whereby a business sells its accounts receivable, or invoices, to a third party commercial financial company to a bank or alternative lender.” This arrangement helps the business to enjoy immediate cash instead of waiting for the period of 30 to 60 days for the customer to pay. Technically, accounts receivable is not a loan. However, it is a good alternative to small business loans. With factoring, accounts receivable is usually sold at discount to the factor. If a business sells its accounts receivable, it will receive advance payment ranging from eighty and ninety five per cent of the invoice value from the factor. The discount depends on many factors such as the invoice due date, the credibility of the debtors and the applicable rates usually charged by the factor. The factor can be a bank or an alternative lender.

How to Get Small Business Loans Fast

With the rate at which banks are turning down application for small business loans, the reasonable question to ask is “how do I get small business loan fast?” With the online marketplace made available by Lendio, it is not easier to find different lenders with various loans options in one place. The process is quite simple. You just need to follow this procedure;

1. Enter the amount of loan you require at free marketplace for small business loans to view available loans options.
2. You then view and compare the best small business loans available for your business. When you see your suitable loan options, you can apply to all with a single application.
3. From the various option made available, you are free to select the loan types you are interested in. Ensure you review the rates and terms of each business loan carefully before you choose what to apply for.
4. You don’t need to start applying to each loan option one by one. One application is enough. The application will be forwarded to all lenders that suit your option. With just one application, you will receive multiple offers from lenders and you will be able to choose the best rate.
5. If your application is given a final approval, you will get funded.

Advantages of going through loan marketplace

1. With loan marketplace, various available business loan options are made available to you within minutes. With all the options in one place, it is easier to compare these options so that you can get the best deal. You don’t need to go from bank to bank before you can find small business loans.
2. It is very fast. The marketplace saves you lots of time you would have used in search of small business loan. You only need to answer a few questions and many loan options will be made available in minutes. Are you still in doubt that getting a small business loan could be that simple and fast? It is!
3. Access to business advisers who take interest in your business.

Identifying Fake Money Lenders

For every original, there will be a fake somewhere and vice versa. When you search internet, you will come across many people or organisations presenting themselves as money lenders. Unfortunately, there are many lenders across the States who are not licensed to operate. This is one of the reasons some people still prefer traditional banks to alternative money lenders. However, banks are not helping matters as it is difficult for average citizens or small business owners to secure a loan from them. Out of frustration, some of the people who are desperate about securing loans may end up falling into the hands of scammers. Below are some guides on how to easily identify scammers.

No Identifiable Address: Watch out for lending organisations without any physical address and telephone number. It is not enough to just display a telephone number. Every credible organisation should have a physical address. Any lending organisation that is not willing to disclose its address is suspicious. However, if you visit some websites, the first information you may find is that you should fill a form. This form may prevent you from seeing the place where you can click on their contact address. There may not be anything wrong in this. However, if you go to the home page of any lending company by tying just their URL (e.g. www.thecompany.com), you should be able to locate its contact address either at the main menu or the footer of the website.

Phishing: There are reputable lending companies around us. I mentioned that for every original, there will be a fake. There are scammers who specialises in impersonating reputable lending companies by registering and hosting domain names similar to that of the reputable lending companies. If you don’t look at the domain names closely, you may not notice any difference. If you notice any such website, it could be the handiwork of scammers. Don’t seek for any loan from them whether personal loans, payday loans or small business loans.

Loans with ridiculous rates: Different types of loans have their standard rates. For example, you can’t compare personal loan rates with payday loan rates neither can you compare small business loan rates with that of payday loans. Any lending company promising a ridiculous low rate may be a scammer. At best, if they are not scammers, there may be some hidden charges which they don’t disclose.

Advance fee: If you are applying for personal loan, payday loan or small business loan and you are being asked to pay advance fee before your application can be approved, something may be fishy. Even for payday loans which you may need to deposit a post-dated cheque covering the principal and the interest, this arrangement will be after the loan has been approved. Also, such fee must have been made known to the borrower before the application process begins. Before you apply for personal loan, payday loan or small business loan, it is always good you find out information about the terms of such loan.

Unlicensed Organization: There are certain organizations that are truly licensed. However, the fact that a lending organization is licensed to operate in a particular State does not mean it can operate in another State. For example, payday loans are governed by laws in different States. It is totally illegal for any payday lender to operate in a State it is not licensed to operate. It is always advisable to deal with lending organizations that are truly licensed. This will give assurance that they are not scammers.

Bad Credit Allowed: Scammers understand that some people have challenges with their credit scores. That is why some of the scammers will promise loans without credit checks. People with bad credits usually find it difficult to secure personal loan or small business loan. If you are being offered a loan with bad credit when you know that your credit score should matter, you may need to be very careful dealing with such lender. That is not to say that all lenders that promote loans without credit checks are fake. There are genuine organizations that actually offer loans for people with bad credit. For payday loans, your credit score may not have much impact as long as you have a stable job with reasonable monthly income. But for personal loans and small business loans, lenders will like to consider your credit report.

Financing Your Business