If you’ve ever heard of same day loans, you know that they are quick loans you can get relatively easily in order to repay any urgent or otherwise unexpected personal expenses you may have.
That can include home repairs, car repairs, emergency medical expenses, or even everyday expenses. But can same day loans help your business in the same way?
How do you get same day loans?
The good news is that it’s not at all difficult to get a same day loan. You just have to apply, just like you would for any other type of loan. You just need to meet the basic criteria, and undergo some checks. These can include credit checks, ID checks, affordability checks, employment checks, etc. They’re meant to ascertain that you are who you say you are and that you can afford to repay this loan back.
How much can you get with same day loans?
I’m sure you can already guess that same day loans will not grant you fabulous sums of money. You can get a loan as low as £50, to be repaid within one month, around £500 for about three months, or up to £1000, to be repaid in full, including interest, in around 6 months. The amount won’t cover a lot, and it will also require you to repay even twice as much, depending on the APR rate and length of repayment.
What are the benefits?
They have a very high approval rate
With a lot of loans, you have to go through that period of uncertainty while you’re waiting to see if you are approved. Same day loans have a very high approval rate and they can tell you instantly.
You get the money almost instantly
When you’re experiencing an emergency situation, time is of the essence. It’s extremely important to be able to get your money fast, so receiving your money on the same day can be a lifesaver.
What are the drawbacks?
They come with a very high interest rate
It will come as no surprise that the interest rate is very high on this loan, since it offers so many advantages. However, this can make it unaffordable or not worth it in the long run.
They have short repayment terms
There is also quite a short repayment term associated with the loan, so while it is very quick, it is also very much a temporary deal.
How can you use same day loans for your business?
Setting up a business and trying to build its success can be tremendously hard work, and sometimes, there will be emergencies you will have to manage. Financial emergencies can be the worst kind, because money is not handed out lightly, and usually, there are hoops you need to jump through in order to get it. That is why an instant cash loan is such a valuable asset to access. Here are some ways in which you can use same day loans for your business:
If a client is late paying an invoice
Unfortunately, because of the way these things work, it often takes a long time for your business to actually receive the money from invoicing a client. That can leave your company short on funds for several months, so there needs to be a solution for urgent money to tide you over until you can get paid.
If you need urgent capital
Cash flow is vitally important for an emergent business and it can make or break your company. Without cash flow, there is no business, and you have to absolutely make sure there is money rolling at all times in order to keep things moving and keep the company afloat. A same day loan can solve that issue swiftly.
If you need to pay your employees
For one reason or another, money can get tied up and payment time comes around. If you don’t pay your employees, that can affect morale, it can affect the way they do their job, it can cause them to lose respect for you, or worst of all, it can cause them to leave. Get a quick loan and prevent that from happening.
If you need to offer a refund
Sometimes, a client will come back after a while and declare their dissatisfaction. Their service or product was not up to standard and they’re demanding a refund. But ooops, you’ve already spent that money and there’s nowhere to get it from. Get a same day loan to save face and refund your customer.
As you can see, same day loans are not designed just for personal use. In fact, they can be a very valuable tool for an emerging business, as you never know what emergencies will come up that you need to deal with on an urgent basis.