Online Installment Loans

 

An installment loan is a popular form of borrowing in the modern world. Borrowers can borrow the money to deal with any emergencies that they may be facing, such as medical and other expenses. You are required to repay the loan in equal installments. The number of installments will vary based on your income, interest rate and your lender’s terms and conditions. You will repay the loan gradually until you clear it. The loan is to bridge the gap between payday and dealing with the financial emergency. Life is full of surprises and it can change instantly, driving you into tough financial times. As a result, you may not have the cash to meet urgent financial needs. Often, financial emergencies usually cause stress to the person involved and you should be in a position to handle the problem quickly. Features of online installment loans include

  1. Quick decision
  2. Wide range of borrower eligibility
  3. Simple loan request process
  4. No hidden charges
  5. No collateral
  6. No application fees
  7. Quick transfer
  8. Unique approach of assessing creditworthiness

Easy Loan Request Process

Easy Loan Request Process
Easy Loan Request Process

When you want to request for online installment loans, it is easy to use our platform to access loans from the lenders in our network. We are ready with a professional support staff to help borrowers understand the loan and their terms and conditions. Depending on what you want to use the loan for, once you meet the requirements, you will be given an update by your lender on your qualification status. In the conventional systems, unless you have a perfect credit, you could not qualify for a loan. Once you have filled out a loan request form available on our website, the next thing to do is to send it to us and we will forward it immediately to the lender who will fund your loan.

  • Many people confuse payday loans with installment loans. Payday loans are not installment loans. In most cases, your lender will require a post-dated check as a form of guarantee that you will repay the loan on time. In other cases, you can allow the lender to make an automatic electronic deduction from your account.

Online installment loans can help you deal with unexpected expenses. Here you can request for online installment loans to help you deal with them quickly and avoid further complications. Common features of online installment loans include

  • Online installment loans can help you deal with a current financial emergency.
  • Your loan request is processed quickly.
  • You will receive the money in your account as soon as your lender approves the loan request.
  • Even with a less than stellar credit history, you can qualify for a loan as long as you meet the criteria.

Why online installment loans?

Why online installment loans?
Why online installment loans?

Many people are looking for extra cash to deal with emergencies and they do not understand the options that are available to them. If you are in a hurry and want a loan, online installment loans are simple, quick and easy to request. As long as you have an internet connection, you can log in our website and make the loan request. We will forward the information to the lenders in our network who will fund your loan. As the name suggests, you are not required to repay the installment loans all at once.

Criteria of getting online installment loans

Criteria of getting online installment loans
Criteria of getting online installment loans

Requesting for an online installment loan is quite simple and you are not required to produce chunks of documents. Here are some of the criteria that you should meet.

  1. You must be at least 18 years of age, otherwise you will not get the loan.
  2. You must be a legal resident of the United States of America.
  3. You need to have an active checking account. This is where the money will be deposited and where your lender will deduct the loan amount if you give them access to deduct the monthly deductions.
  4. You must have contact details (phone number or working email address) where your lender can reach you in case of any changes or updates on the loan.
  5. The last and very important aspect in qualifying for online installment loans is proof of recurrent income or employment. Without a stable income, some lenders see it as a risk to grant you a loan.

Advantages of Online Installment Loans

There are various reasons why people take out installment loans. Often they need money fast to deal with upcoming emergencies and they are daunted by the conventional lending institutions because of their poor credit scores. However, online installment loans allow the user to access loan facilities. Benefits of online installment loans include

  • Speed – this is the most crucial aspect for many people making loan requests. You want the process to be as fast as possible because you are dealing with an emergency. We have simplified the loan request process and will connect you to hundreds of lenders in our network who will finance your loan.
  • We do not promise instant approval on any loan type. However, our network of lenders have experience in this field and they know what the clients want and they will deal with your loan request as soon as they can and send you feedback via your email address.
  • The application process is simple and user-friendly. The whole process can be done online.
  • Since we have many lenders in our network, you can get a range of loan options and choose one that suits your needs.

Your lender will perform a soft credit check to evaluate the information that you have given. We strive to expedite the loan process to allow borrowers to get feedback as soon as the lender verifies the information supplied.

 

 

Installments loan definition

 

Installments loan are loans that you are required to make regular repayments over a defined period of time. The objective of your borrowing is to get cash now and spread out the payment over a period of time.

Getting ready for installment loans

 

installment loans
Getting ready for installment loans
  • First, you have to be positive about the whole endeavor. You can do this by checking out your finances. Calculate the exact amount you need. Also, remember to check your credit score.
  • It is important to know where you stand financially. This is because lenders will be looking at your profile before they offer you an installment loan. You can check your annual credit report and see your current status. Make a list of your regular monthly expenses and fit it to your income. With this, you will be able to know the amount you will be comfortable paying in installments.
  • Check out the terms and conditions of your lender. You should focus on the time and interest factors. Expect slightly high interest than usual. The interest rate is just a strategy allowing lenders to give you a high-risk loan.
  • It is crucial to find out the different features of lenders. With us, you will find lenders who offer specific interest-only period on large loans. This is aimed at making repayment flexible for you. You will have a chance to acquire an installment loan and pay back small interests for a longer period of time.
  • Lenders you will find in our network have quick support systems that ensure that your queries are responded to quickly. You will be dealing with a lender directly. Lenders are looking forward to having a good business relationship with you.
  • We offer you an opportunity to take advantage of the several lenders who are willing to offer you an installment loan even with your bad credit score. When you compare this option to a traditional lender, you will find it appealing. Lenders in our network understand your urgent financial obligations They have entered the lending market to meet the rapidly growing demand. Most of those with bad credit would not consider going to a financial institution for a loan. This is because your request is likely to get rejected and the decision will take long.
  • You will be signing up for lenders who offer good value. This means that you still have a chance even after a rejection from a traditional lender.  Many lenders are willing to assist you. We have links to many lenders offering reasonable installment rates that will definitely suit your needs. They have clear terms with no hidden charges.
  • If you are in need of an installment loan with a bad credit history, you have to do some research. When you keep to your budget, you will eventually find the right lender for your situation. The offers are very appealing but you need to take your time and look at various lenders working with us. Prepare to pay the installments as scheduled in order to maintain a good credit profile and improve your financial rating.

Features of installments loan

  1. Features of installments loan
    Features of installments loan

    Installments loan are loans that you can qualify for with or without presenting collateral to your lender. You will only be required to assure your lender that you are able to pay back within the given time. The amount you request plus interest is divided into equal payments. You are going to be paying the amount you owe in portions.

  2. These loans are more reasonable and also safer for you when you have a bad credit score. They are safe because lenders have affordable terms. The fact that you will be paying back your loan over a period of time makes the process easier compared to paying a whole amount in one go.
  3. You will be required to abide by a specific time of repayment. With several payments to make, you are in a better position to plan out your budget. This will ensure that you are paying your installments on time.

Working with installment loans

 

Working with installment loans
Working with installment loans
  • First, take your time to look at your options carefully and settle for an amount you are comfortable with. For instance, if your objective is to improve your credit rating, then start by requesting for a small amount that you are sure you can repay back without fail. Remember that failing to repay will work against you.
  • Be ready to create a good profile for lenders. Your profile should portray that you have the ability to pay back a loan.
  • It is fortunate that bad credit lenders are available right for you at the comfort of your home. We have lenders offering loans with minimal requirements. Some of the basic requirements include your personal identification, income amount and an active bank account.
  • You need to prove that you have regular income for a lender to approve your loan request. He will take a look at your profile and offer you an amount accordingly.  You need to ensure that you only provide accurate information.

Types of installment loans

There are two types of installment loans. They include;

  • Types of installment loans
    Types of installment loans

    Secured loans: these loans are those offered based on your provision of a collateral which may be your house, car, stocks and even bonds, among others. With these loans, you will get lower interest rates. This is because your lender has your property as security.

  • Unsecured loans are loans offered without collateral. Your lender will expect you to pay a slightly higher interest. There are many lenders working with us who are willing to offer you such loans.

The fact that securing a loan from a bank is quite tiresome makes lenders in our network worth a try.

 

Merchant cash advance regulations

The merchant cash advance industry is a comparatively new business and therefore hasn’t been strictly regulated yet. Nevertheless, there are some self-regulatory practices of the advance providing companies as well as some law provisions in state legislation.

Special licensing is needed by the law in the State of California. The regulation act is called the California finance lenders law. Its provisions state that if the agreement is structured as a true loan, a licensed finance broker may only broker loans to licensed finance lenders.

There are also certain certifications that are provided by the industry to salespeople who are trained in merchant cash advance lending practices. These certificates expire after two years and are a product of the self-regulation of the industry. Therefore, those who provide merchant cash advances are not required by the law to have such certification.

Regulation and the merchant cash advance industry

Regulation & merchant cash advance industry
Regulation & merchant cash advance industry

Many merchant cash advance providers share the opinion that pre-emptive self-regulation is necessary to prevent stricter federal legislation. Nevertheless, not much has been done yet in that aspect. Therefore, there isn’t a single act that regulates the providers of the product. This leads to various rates, holdback percentages and payments offered on the market.

Uniform training programs for advance providers could be a guarantee against potential lawsuits. Ethical practices learned by salesmen on training programs should be documented and certified, in case of an investigation or court trial.

Some salesmen aren’t even told about additional costs on these deals, such as transaction fees until they begin working with clients. Their training focuses only on rates and holdback percentages. This leads to the inability of providing precise information when advertising their product and merchants are unable to make a truly informed decision when choosing a cash advance providing company.

Merchant cash advances are not regulated as loans

Small business lending has various forms, each one having different terms and risks for lenders. Cash advances are one of these forms, having significant differences than other forms. They are not treated as loans and aren’t regulated by the same laws. Nevertheless, the loan market is changing and regulation may soon include merchant cash advances, especially their most common form – the one that is directed towards immediate purchases for the business owners.

The merchant cash advance market is flourishing

Merchant cash advance market is flourishing
Merchant cash advance market is flourishing

According to a bank report regarding merchant cash advance industry, this particular market is growing. To be precise, the market has doubled in the past two or three years. The number of individual advance contracts has increased significantly. This is partly due to the retreat of larger banks from small business lending, thus providing more space for smaller cash providers. They are also fast and efficient and business owners prefer working with them instead of bigger banks. Other factors that have contributed to the growth of the sector include the high approval rate, due to the less strict qualifying criteria that smaller lenders request. There also different collection practices that include periodic payments of a percentage of the business credit card sales.

Merchant cash advances did emerge as a result of the increase in credit card use in the United States and the first provider was established in 1998. For the next two decades, cash advances have developed characteristics that are different from those of other small business loans. One of them, for example, is the requirement of collateral for the loan. Nevertheless, cash advances are treated to be regulated like other loans and that may cause a shift in the direction of industry development. There is also an influx of competition in the market following the establishment of new market players.

Al these market changes are forcing different players to diversify their services by also offering various types of loans and lines of credit, combined with lower interest. Nevertheless, these changes won’t prevent merchant cash advance providers from achieving the expected 25% growth in years to come.

Regulation and online commercial lenders

State regulatory institutions are concerned with the growth of the merchant cash advance industry and various online lending platforms. They are worried that those may be the cause of new forms of predatory lending practices. California, for example, is considering the implementation of the non-bank lending act to regulate cash advance providers. Illinois is suggesting extending the power of the Department of financial and professional regulation over small business lenders.

Regulation & online commercial lenders
Regulation & online commercial lenders

Therefore, the largest among the providers aim at forestalling any new regulation. They claim that self-regulatory acts would be enough and no other legislation would be necessary. Nevertheless, experts and observers believe that legislation is inevitable because of the tremendous industry growth in recent years. Logically, the first states to implement any regulations will be those with the highest consumption of the product.

Online lenders not only have filled the vacuum that the recent financial crisis left in the small business lending industry, they also invented new benefits for their customers, such as online application process and algorithmic risk evaluation. Those made the lending industry faster and more efficient.

There are three new models of small business lending. These are the online balance sheet lenders that provide capital for inventory purchases, peer-to-peer lenders who link borrowers and investors directly, and lender-agnostic marketplaces where borrowers may shop and compare lenders online.

Although all the  innovation has proven to be beneficial for small business owners, there are also market players with a history of abusive conduct towards their clients. This includes aggressive marketing strategies or obscure terms in the contracts regarding fees and interest rates.

Therefore, the possibility of legislation at the state or even federal level seems inevitable. Recommendations are being made from experts to fill the gaps in the existing lending laws. Industry representatives aren’t excluded from the talks and their opinions are an important part of the legislation process.

A small, but firm step has been made in New York, where a new law requires that the local Department of financial services studies the lending industry and issues a report on their practices not later than the beginning of 2018.

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