What are the different sorts of loans provided by the moneylenders in the market?
It is quite a hassle to procure any kinds of loans from the bank these days. It involves a range of complicated series of paperwork which extends the loan approval time to an uncertainty. In such cases, people who are in dire need of such loans, often head towards the private money lenders available in the market. More often, they get the loans approved quickly without any sorts of hassles along with luring deals and interest rates. However, in such procedures too, there are different rules applied depending on the type of the loans, interest rates and the duration for the loan repayment. Hence, before you apply for a loan for your personal sues or business, here are the major four types of loans provided by any reputed money lender Singapore in the market:
- The long-term ones
One of the most common and the frequent kinds of loans provided by the commercial money lenders in the business is the long-term loans. These kinds of loans are beneficial for expanding the business refinancing, acquisition, or as the working capital. Generally, you need to pay these loans on a monthly basis and tend to come in lower interest rates as compared to the short-term ones. In case if you have a well-established business, it would be easy for you to procure such loans without any hassles from such lenders.
- The short-term ones
The short term loans are slightly different from the long term ones as there is no concept of monthly payments here. Instead, these are paid off as told by the lenders with somewhat high-interest rates in comparison to the long term ones. Also, these types of loans are used to seasonal businesses, building up inventory, raising cash for different payable accounts, etc. Don't use plagiarised sources.Get your custom essay just from $11/page
- Credit lines
This functions just like the principle of the credit cards, where one can get access to funds as and when needed rather than receiving a significant amount of money at the first go. The compound interest in this type is kind of high and can increase according to the value of the loans. It is beneficial for temporary shortcomings in incomes, business improvements, etc. These are mainly given by banks and other money lenders in the market.
- Substitute Finances
This refers to the availability of non-bank lending services by money lender Singapore such as cash advances, leasebacks, peer loans, asset-based loans, etc. These are generally beneficial in starting up a business or for meeting up the shortfalls in the funds of the company, etc.
Once you know what kind of loans you need to get for your use, it is time to do a little expert research about the features of the same as the interest rates, collateral required, etc. Such research would help you to understand the loan market well before getting one for your business.