Have you heard about alternative solutions for getting cash? It was reported recently that traditional short-term lending has decreased by more than 50% over the past 4 years. The question is will that situation change or is it going to worsen? In the meantime, the burden of obtaining short-term loans from a bank or credit card company continues to rest on the small business owner and private individuals. In plain language, the small business owner and private individual have started to look for alternative solutions for getting a loan by turning to what are considered non-traditional lenders.
Some of the non-traditional lenders offer the private consumer the advantage of receiving a short-term loan no later than the next business day. Funds from payday loans and auto title loans are deposited into the consumer’s checking account normally within 24 hours.
In some states, such as in the State of Florida, the interest rates are regulated by the Florida Statutes. There is no credit check required to qualify for a payday or auto title loan. So, for those individuals who have some blemishes on their credit history, an alternative solution to getting cash can be a perfect solution. For small business owners, there is also a solution. Recently, it was reported that a number of companies such as weemba have sprung up that will match a small business owner’s loan requirements with lenders that are willing to provide cash. The same is true for a consumer looking for extra cash.
It is likely that the need for alternative solutions for small businesses has evolved because of recent government regulations that have made it more difficult, if not almost impossible, for small businesses to obtain loans. In this kind of transaction, the lender simply pays a fee for the right to obtain customer or business profiles. This type of transaction does not force the business owner to relinquish a percentage of his business profits or to give up any ownership of his firm. Many experts feel that alternative solutions for cash will gain in popularity.
It has been reported that more than half of Americans would not be able to come up with $1000 in cash in the event of an emergency. Why would you want to be part of those frightening facts? Instead, signing up for $10 or $20 to be automatically deducted from your paycheck and deposited into a savings account can be the beginning of what makes good financial sense. If those amounts are doubled in six months, you could find yourself $500 richer by the end of the year. That amount is enough to smack down expenses like a car repair as soon as it crops up.
Another idea that makes financial sense is to review your retirement savings account if you have one. Assuming that you are paid every two weeks, raising your pre-tax bi-weekly contribution to your 401K from 4% to 7% does not cost that much. But, it will raise the amount of funds that accumulate in your retirement account considerably, and that will increase the amount your employer will have also contribute too. You might also consider getting started by making contributions to a 401K if you have not already done so. That is pre-tax money that will accumulate over time and provide security for you and your family in later years.
There is no red tape associated with a payday loan or auto title loan. Some non-traditional lenders offer the consumer the option of applying online for a cash advance or title loan. So, there is no longer a need to stand in line at a storefront check cashing store and wait your turn. A borrower can apply online within the privacy of their own home. It is a safe, secure, and confidential way to carry out the transaction. If you have been turned down for a loan from a bank, or your credit limit is too low and you were not approved for an increase in your credit limit, there still is a way to obtain the extra cash you need. Non-traditional lenders can provide alternative funding solutions that would otherwise be unavailable to the average consumer and small business owners.