How would that work? Well, let’s say you are a graphic designer, who wants to start their own online shop, and you can easily get the site up and running, but you need a few hundred dollars towards some advertising efforts and a few hundred more for materials. You could put this debt on a credit card that you slowly repay over the course of the next month or year. This would mean that the six or seven hundred dollars will end up costing you well over one thousand to repay.
Alternately, you could take a payday loan or advance loan and use the funds to get started. You could then begin repaying the loan according to the agreed upon terms and see the debt eliminated in a matter of weeks. As a reliable borrower, you could then count on the payday loan company to grant you instant access to funds the next time you might need them.
This is a really creative way to seek small business funding and to continually improve upon a consumer credit score. Consider that most small business loans lock the borrower into larger sums which must be slowly repaid over the course of several years. Additionally, the existence of such loans tends to deprive the borrower from accessing any additional loans as well.
With a payday loan, however, the borrower could receive upwards of $2,000 to use in whatever way they might need, and also to select a repayment period that works with their financial scenario. This keeps interest fees to a minimum and allows the borrower to access the least costly form of borrowing possible.
Of course, it is always a wise decision to have a very firm business budget in place before taking out any loan product at all. This is to ensure that the proper repayment plan is selected. The great thing about payday loans, however, is that they are also one of the more flexible borrowing options because most of the better lenders allow their customers to request extensions and alterations to the repayment programs should they run into a bit of financial difficulty.