Loan for bad credit -Get a loan online with bad credit: easy money for you

This phenomenon we are talking about is that of online loans. Through different websites, people can apply for a loan and in minutes they have it available in their bank accounts. It is a revolutionary product and increasingly increases its popularity.

In this article, we want to talk a little about this process and the advantages behind it.

Get a loan online with bad credit: easy money for you

Lend money online

Who should lend money online? Loans online with bad credit are made through websites specialized in this financial product. These lenders are spread around the world and each offers different types of online loans.

Lending money online is not done by anyone and we – the clients – must not rely on any lender we see. Before proceeding to apply for the loan, we must carefully study the conditions of the financial institution and its policies. This will prevent us from greater evils and the future.

Applying to get a lender to lend money online is extremely easy. And here we will describe how to do it.

  • Locate your lender online: The first thing you should do is get a lender and, as we explained before, study what type of loans you offer, interest rates and terms to pay the credit.
  • Use the loan simulator: Usually, the lender websites have a tool used to calculate loans. This is called a simulator. With it, we will establish how much money we will want in the loan and the number of installments in which we will make the repayment. The simulator will tell us the exact amount to pay.
  • Fill in the form: The process continues with the filling of a form in which we will have to empty basic data about us. After this, we will only have to wait for the lender to confirm if our application was approved or rejected. The response time is, on average, about 15 minutes.

In order for the company to tell you whether or not to approve the request, the client must provide a telephone number and email address.

Money credits

Now is the time to review some characteristics of money credits. It is important to know them and these are:

  • Online credits are generally designed for individuals, without much focus on companies.
  • It is not necessary to say what the reason and purpose of the money you are asking for in the money credits is, nor are the requirements of this type of credit very strict.
  • The repayment term of these credits and loans very short online. They usually cover specific liquidity needs that normally do not exceed 30 days.
  • The amount of online credits is not very high. Depending on the platform on which we apply, the credit can range between $ 300 and $ 5,000, although it rarely exceeds $ 1,000. Unlike crowdlending pages, online credit and loan companies do not act as intermediaries with investors who lend their money, but rather it is the same companies that deliver the money with their own funds.

These are the most important characteristics of money credits that we can highlight in this article.

The money credits that are obtained online are a respite for people who are going through a difficult economic situation for any reason. These money credits are easily accessible to people and in some cases accept applications from users without payroll and registered in the Asnef file.

If you are needing to make an urgent payment, you can ask for money credits to make it. You can get it without any problem as long as you meet some requirements such as: being of legal age, having an identity document, being a resident of the country in which the lender works and having a bank account in your name.

Which is better online loans or payday loans?

The non-bank loan market is constantly growing. Every year, more and more clients decide to use the offer of loan companies instead of taking loans from banks.

Although we associate non-bank loans mainly with popular payday loans, in banks we can also get installment loans that function similarly to loans.

Online loans better or payday loans?

Payday loans are the most popular form of non-bank loans, which are taken for a short period, and you can borrow up to several thousand at one time. In many loan companies you can easily find free first loans or payday loans without a loan, which are a good alternative for those who have no chance of getting a loan from a bank. While banks very carefully verify the financial situation of a person applying for a loan, loan companies have decidedly less lenient policy.

In most good companies, you can get a loan only for an ID card without having to provide information on earnings, employment. Payday companies do not scan much of the borrower’s financial standing. Of course, you must be aware that if you do not pay back the loans on time, we will usually go to different registers of debtors and we will certainly not be able to take loans so easily again.

Advantages of payday loans online

Advantages of payday loans online

Online payday loans are the best way to get extra cash when you need it literally, and we don’t have creditworthiness to get financing at the bank. You don’t have to have a bad income for a bank to refuse a loan. Sometimes it is enough to have no employment contract or earnings from various sources that banks do not accept. There are no such problems in the case of loan companies.

Inference at short-time companies is simplified to a minimum – only data from the identity card is provided and a simple application is completed. If the loan decision is positive, the funds will go to your account on the same day. No banks operate so quickly. The interest rate on payday loans is higher than for bank loans, but these are not as massive amounts as opponents of this type of financing say. It is worth paying off a little more, but you can get a loan anywhere, anytime.

Installment loans

Installment loans

If we need a larger amount and are looking for a loan with the option of paying out repayments in installments, we also do not need to go to a bank that will scan our financial situation. You can easily find loan companies that grant installments for quite high amounts.

Similarly to payday loans, such loans have very simplified applications. So you can get them quite quickly, and without leaving home. Online installment loans are a good solution for people who need extra cash, but at the same time they want to do all the formalities quickly.

Installment loans can be divided into convenient installments, which repayment will not be an excessive burden on the household budget. Installment loans, like payday loans, are more expensive than bank loans. During repayment, we will give the loan company a little more than we would give the bank a loan. However, this is the cost of few formalities, quick delivery of services and issuing of loan decisions.

The apparent debt ratio for financial analysis

Cash analysis plays an essential role in financial analysis. As the change in cash flow is the result of all cash flows, its deterioration is a symptom of a malfunction which should be diagnosed. In addition, a continuous deterioration in cash will sooner or later result in the cessation of payments, the credit analyst trying to anticipate the occurrence by its analysis.

Let’s see how to ensure that the balance sheet reflects the true cash position, and what to do in the event of an abnormally high rate.

 

How to ensure that the balance sheet reflects the true cash position?

How to ensure that the balance sheet reflects the true cash position?

The apparent debt ratio is a cash ratio, it is equal to the financial costs divided by all the financial debts: loans from credit institutions, the financial market, shareholders or associates.

Financial charges = Apparent debt ratio
All financial debts

If the company borrows an approximately equivalent amount throughout the year, this rate indicates the average cost of its debt. An “abnormally high” rate is a sign that should alert the analyst. It indicates that the debt on the balance sheet at the end of the year is not consistent with the amount of financial expenses for the entire period. Most often, in practice, it is that short-term borrowing is lacking. An abnormally high rate has three main causes:

  1. The company is financed by credit for mobilization of customer receivables (factoring, Dally law, etc.). Under French standards, the financed customer receivable leaves the balance sheet because it is sold and the credit does not appear in the liabilities. However, the financial costs are recorded as expenses.
  2. The company artificially improves its cash position at the close to present a more favorable balance sheet. Concretely, the CFO offers an attractive discount rate to anticipate the payment of large customer invoices before the end of the year. It thus improves for a few days the cash position to take a more favorable picture of the balance sheet. The apparent rate will reveal the maneuver.
  3. Due to its seasonal activity, the company experiences large variations in its inventory and receivables. Often, these companies close their accounts when their working capital requirements are at their lowest. The cash position is therefore more favorable than it is on average over the year. However, financial costs reflect debt throughout the year. Example: a clothing distribution chain closes its accounts at the end of February, after the end of the sales period.

 

What is an abnormally high rate?

debt loan

This is a significantly higher rate than the rate at which a company in this risk category borrows. Reference should be made to the rates for the period. Eonia and Euribor are the CT rate references, also applicable to variable rate MLT loans. The “probable” margin on financing should be added. Thus, for a Euribor rate of 4% and a margin on CT financing of 2%, the “normal” rate is around 6%. For a fixed rate MLT loan, the rates are higher. This ratio is not a fine measure; it allows significant differences to be detected. Thus, for an estimated borrowing rate of 6%, the debt situation can be considered normal if the apparent rate is between 5 and 8%.

 

What to do in the event of an abnormally high rate?

What to do in the event of an abnormally high rate?

When the apparent rate is abnormally high, the analyst tries to estimate the real need for cash from finance costs.
Drawing:
For a financial cost of 500 and an estimated borrowing rate of 5%, the real debt situation would be:
500 = 10,000
5%
If the apparent financial debt on the balance sheet is 8,000, the analyst will then add 2,000 to credits to CT as well as to customer receivables in the event of factoring.

This reprocessing is less relevant for companies with high seasonality because in this case, it is the current cash flow requirement which fluctuates during the year.

How to apply for a loan if you protested?

But let’s explain in this content how to apply for a mortgage, loan, financing or salary loan if present in the list of bad payers.

We always recommend avoiding being protested. It is also a matter of education, respect and moral ethics. If you skip the mortgage or loan installments you risk reporting to the credit bureau and consequently it is difficult to obtain a loan if you protest, even if not impossible. In fact, even those who are protested can manage to obtain a loan.

These are special loans, different from the others and which have several conditions and are not obtained so easily.

The risk profile is high, therefore the interest rate is usually very high, indeed: sometimes it reaches the limit beyond which it becomes a usurer rate. In all likelihood you will never get to this point, but in case it happens, you can always report the fact and ask for a refund.

Thanks to the salary loan, in fact, to repay the debt will not be the bad payer, but in a sense, his employer. The bank will grant the loan and the company for which the person concerned works will retain one fifth of the value of the monthly salary, and then pay it to the bank.

Which worker can request the salary loan if protested

Which worker can request the salary loan if protested

Loans for protests to the credit bureau through the salary loan can be requested by public employees, by private employees with a permanent contract or with a fixed-term contract provided that it has a duration equal to or greater than that of the loan. Loans in this way are also paid to holders of INPS or Ipost pensions: they will give a fifth of their social security check to repay the debt. The conditions vary according to the type of customer, but a refund is normally granted for 24 to 120 months, at a fixed rate and with insurance coverage.

Loan changed and loan between individuals

Loan changed and loan between individuals

For those who cannot opt ​​for the loan through the salary loan, there are two alternatives: to ask for a loan or to agree with a relative, a friend, the neighbor or a company dedicated to this type of services. in short: obtain a loan between private individuals.

Changed financing

Changed financing

In the loan, a monthly installment is paid at the bank counter to repay a loan at a fixed rate and at a fixed amount. The duration of this reimbursement for bad payers reported usually ranges from 18 to 72 months.

Financial between individuals

Financial between individuals

The loan between private individuals allows you to obtain a loan from a company or a person willing to disburse money behind the payment of an interest rate.

In conclusion, it is possible to request a loan even if protested and reported to credit bureau.