What to Do If You Can’t Pay Your Monthly Installment at the Bank?

In times of crisis, making the monthly payments for a loan can prove to be close to impossible, especially if the banks also raise their monthly interest rates. When this happens, most banks impose harsh penalties in an attempt to make as much profit as possible.

Luckily, there are a few methods that you can use to get the money that you need in order to make the payment without remaining completely penniless. Most banks may agree to negotiate with you and set a new monthly installment plan that is easier to follow.

There are also multiple online services that may agree to lend you the money that you need without paying attention to your credit score, or your upcoming monthly payment. Furthermore, most platforms can process your request in under 24 hours, making them great choices if you are pressed by time.

Establish exactly how much money you need

The first thing to do when you realize that you may not have enough money to pay your monthly installment is to take a step back and establish how much money you will need in the near future. It is important to keep in mind that you will not only need to make the monthly payment but also survive until you receive your next paycheck.

Make a list of upcoming expenses and add them to the value of the monthly payment that you must make. Then compare it with how much money you currently have at your disposal. The difference between the two is the exact amount of money that you will need.

Know what your offline options are

Your most important, practical option when it comes to difficulties paying off your loans is talking to the bank. Go online and look for a customer support number that you can call and explain the situation. In certain, exceptional cases, the bank representatives may agree to give you more time to make the payment. Having a high credit score and a long business relationship with your bank can help in this situation.

However, if this method does not work, look for ways to borrow the money that you need from other places. Start with family members, and if none can help you, look for a local pawn shop where you can take a few objects that you no longer use. Anything from older, functional electronic devices and appliances can be pawned, as long as they are in good condition. If none of these methods prove fruitful, you also have the option of using an online service in order to get a short-term loan.

Look for online solutions that do not require a credit score check

There is a large number of money-lending services throughout the United Kingdom, that operate solely online. They are designed to help individuals who are in dire need of a fast loan get the money that they need. As a result, most online lending processes are very fast and can take as little as 12 hours (especially if you only need to borrow a few hundred pounds).

You can sign up to these online platforms in a matter of minutes and the loan request form is easy to fill in. Furthermore, most of them will find you eligible for their services regardless of your credit score.

One detail that you must pay attention to when requesting a payday loan for bad credit is the reason why you need the money. Online lending services are designed to help individuals who need money in order to pay urgent expenses. As a result, it is better to be truthful when you fill in the box that asks for the purpose of the loan.

Never borrow from more than one service, or from individuals on open platforms

It is extremely important to mention the fact that you should never take out loans from multiple platforms at the same time. This is because you will have to pay interest for each of them and you may find that the overall cost of the money that you borrow will bring you back to where you started.

Furthermore, avoid borrowing money from individuals that advertise their services on forums or other types of open communication platforms. Online lending companies are regulated by the government and can be trusted. The same cannot be said about unknown individuals who offer to give you the money that you need to resolve your financial issues.

Conclusion

Not being able to make your monthly payments is often not as serious of an issue as it seems. Simply look at all the options and facilities that you have at your disposal and choose the best one. The only thing that you should keep in mind is that you should never take money from, or give your personal information to companies who are not verifiable through their company registration number.

3 Great Options That You Have For Getting a Start-Up Loan for Your Business

Starting a company from scratch is now easier than ever, however, not having the money needed for your business endeavor can make things difficult. Luckily, there are several ways through which you can get the funds that you need, some of which are more traditional than others.

Get funding from the government

Those who need funds in order to start a company may take advantage of the start-up loans that are offered by the government. These are usually safer to use than ones offered by private companies due to the fact that have fewer fees that must be paid and come with a fixed interest rate.

The downside of start-up loans offered by the government is the fact that there is a lot of competition between entrepreneurs who need funds for their companies. The selection process is not strict, however, only the most promising companies are selected

When it comes to the actual duration of the loan, it is currently possible to repay the money over a period of 1 to 5 years, but this too may change.

Get funding from a private company or service

If you do not want to compete with the large number of entrepreneurs who are trying to get a start-up loan from the government, you may get one from one of the many private money-lending companies that offer their services both online and offline.

These companies usually offer variable interest rates, making them riskier, however, they are awarded more easily than the ones offered by the government. You will still have to have a good loan proposal and a solid business plan in order to get the funding that you need, but there won’t be as many individuals who compete for a limited number of loans.

Consider using a crowdfunding platform

Crowdfunding is one of the newer ways to finance a company. These platforms consist of thousands if not millions of users who are free to back-up/invest in any idea or company that they find attractive.

Getting the money that you need through a crowdfunding platform requires that you follow a different process than the one that you would when going to a private lending company or the government. You simply have to create an account, create a presentation page/video for your business idea, and to provide the potential funders with all the information that you think they will need in order to invest in your company.

You will also have to set a financial objective. The platform will then collect the funds from individuals who agree to fund you. If and when you reach this objective, the platform will release the funds to your account and you will be free to use them as you see fit.

Repayment and additional fees that you need to take into consideration

Depending on what type of funding you choose to focus on, keep in mind that you will be required to either repay the loan or give something back to the users who funded your business endeavor.

Governmental start-up loans have fixed interest rates, ones from private companies have variable ones, and users crowdfunding platforms will need to be updated on your progress and may request to see how you’ve spent their money. In some cases, they may require that you offer complete transparency.

Also take into consideration that some crowdfunding companies allow you to receive funding in exchange for discounts, products, or other materials. Once your idea is funded, you will be obligated to offer these items to your backers.

Conclusion

Overall, getting a start-up loan using a governmental program may a better choice than to go to a private company, if you are unsure of how fruitful your business endeavor will be. This is, in part, because a governmental agreement is safer than one with a business that only focuses on making a profit, but also as a result of the fact that there are fewer fees to pay.

On the other hand, start-up loans offered by companies may offer more flexibility in terms of how much money you can ask for, and also the length of the loan. When it comes to crowdfunding services, these can be extremely useful if your business idea is attractive and has a lot of value, and some platforms do not expect the money back, even if the company fails (the funders agree that they are taking a chance by funding your idea). The downside is that it may take a very long time to collect the money that you need.

Regardless of what type of start-up funding you choose, keep in mind that one of the most important things when it comes to getting a loan is figuring out how you will repay it. Each of the companies and services presented above has different rules and regulations that dictate how you will have to give the money bank.