Posts made in January 2023

Advantages of Short-Term Loans for Business

If the last few years have taught us anything, it is that you can never thoroughly plan for the future. For instance, unexpected expenses, such as stock shortages or extensive weather damage, can crop up anytime and deplete your company’s finances faster than you expected. Thankfully, short-term loans in Mississippi, are able to help you out of these tricky financial situations so your business can remain stable during these financial crises.

But what makes short-term loans so attractive to businesses?  One of the main reasons is that these small personal loans often do not require any collateral or excellent credit history—two things a newer company may not have available to them. The catch is that these loans must be paid back in a short period—usually from six months to one year.

There are plenty of good reasons for start-ups and small businesses to consider applying for a short-term loan if they need additional financing, especially if they are not yet eligible to get a standard loan from the bank. These reasons include:

  • If You Don’t Qualify for Traditional Loans Yet Because of Minimum Loan Amount Requirements
  • If You Need Additional Funds for a Significant Investment
  • If You Are Experiencing Unexpected Bills
  • If You Are Dealing with an Emergency Financial Situation
  • If You Did Not Pass the Credit Check with Traditional Banks

How Does a Title Pawn Work?

When you think of a standard loan from a lending company, your approval or denial is likely based on your credit score. If you are someone with poor or no credit, that means you may not be able to secure the loan you need. Thankfully, a title pawn in Mississippi, opens a new venue to get the necessary funds without worrying about credit scores.

So how does a title pawn work? Rather than using your credit score to secure the loan, you will use your vehicle’s title as collateral in exchange for a loan. These loans are usually for a 30-day term, and you are expected to repay the loan balance in full plus the interest to redeem your title. The loan company may also allow you to extend your title pawn loan for longer as long as you are making the required minimum payments on time.

So, now that you know what a title pawn is, why would you want to choose this lending option over a cash advance or pawn loan? The answer is that you can usually borrow more money at a lower interest rate with a title pawn. Additionally, unlike other pawn loans, you are able to keep your car during the payment timeframe. Finally, title pawns do not rely on—or impact—your credit score. This makes it much easier for you to get one as long as you own the title to your vehicle.