EXPRESS LOAN AMERICA
If you have bad credit, then you are likely all too familiar with the frustrations a low credit score can bring.
You don’t have to live with bad credit forever. Even the most damaging credit mistakes can be repaired over time. The first step toward fixing your credit is to put a stop to the habits that are contributing to your low credit score. Don’t open new credit card accounts, don’t let lenders run hard credit checks on you and don’t let predatory lenders deceive you into taking out harmful, short-term loans that you won’t be able to repay.
With a safe, personal installment loan from Express Loan America, you can be certain that our soft credit inquiry won’t impact your credit. We’ll focus on your ability to repay what you borrow. And we’ll work with you to set a flexible repayment plan that fits comfortably into your life. And if you ever have questions, or need help, you can call us! (We’re a lender who answers the phone and actually wants to speak with you—how different is that?)
Taking out a bad credit loan is a major decision. Make sure you’re not just selecting a loan, but also a financial partner who wants to help you succeed today and in the future.
We deal into both Short & Mid Term Loans
Short Term Loan
It’s a type of loan that is obtained to support a temporary financial need. As it is a type of credit, it involves a borrowed capital amount and interest that needs to be re- paid at a given due date, which is usually within a year from getting the loan.
A short term loan is also a valuable option for small businesses or start-ups that are not yet eligible for a credit line from a bank. The loan involves lower borrowed amounts, which start from $100 to as much as $100,000.
Short term loans need to be paid off within six months to a year and a half.
Types of Short-Term Loans
Short term loans come in various forms, as listed below:
Merchant cash advances
This type of short-term loan is actually a cash advance but one that still operates like a loan. As such, the lender loans the amount needed by the borrower. The borrower makes the loan payments by allowing the lender to access the borrower’s credit facility. Each time a purchase by a customer of the borrower is made, a certain percentage of the sale is taken by the lender.
Lines of credit
A line of credit is much like using a business credit card. A credit limit is set and the business is able to tap into the line of credit as needed. It makes monthly installment payments against whatever amount has been borrowed. Therefore, monthly payments due will vary in accordance with how much of the line of credit has been accessed. One advantage of lines of credit over business credit cards is that the former typically charges a lower Annual Percentage Rates (APRs).
Online or Installment loans
It is also relatively easy to get a short-term loan where everything is done online – from application to approval. Within minutes from getting the loan approval, the money is wired to the borrower’s bank account.
Advantages of Short-Term Loans
There are many advantages in taking short term loans, including:
1. Shorter time for incurring interest
As short-term loans need to be paid off within about a year, there are lower total interest payments. Compared to long term loans that take many years to mature, interest paid on short term loans is significantly less.
2. Quick funding time
Short term loans are less risky compared to long term loans because of a shorter maturity date. As such, the time it takes for a lender underwriting to process the loan is shorter. Thus, the borrower can obtain the needed funds more quickly.
3. Easier to acquire
Short term loans are the lifesavers of smaller businesses or individuals who suffer from less than stellar credit scores. The requirements for such loans are generally easier to meet.
Mid Term Loans
Medium-term loans are loans with a repayment period between two and five years. Usually, these loans offer up to $500,000 in financing, a monthly or bimonthly payment schedule, and mid-market interest rates. It usually takes two to three weeks to get funding with a medium-term loan.
How Medium-Term Business Loans Work
Medium-term loans work similarly to short-term business loans and long-term loans, with the main difference obviously being their repayment time frame. In addition to the time frame, medium-term loans also differ in their interest rates and qualification standards.
Borrowers have to make payments on a medium-term loan every month or twice a month. Medium-term loans are available both from banks and alternative online lenders.
Medium-Term Loan Advantages
- Set Monthly or Bimonthly Payments– Regular payments, spaced one month or two weeks apart, can be a great thing for businesses that are trying to budget for fixed costs.
- Fixed Interest Rates– Medium-term loans usually have fixed interest rates. Having a set interest rate on a loan helps a business owner to know exactly what that loan is costing them over time.
- Improved Credit Score– Receiving and successfully paying off a medium-term loan will improve an owner’s credit score and help you build business credit. As they move forward with their business, they will be more likely to get additional loans.
- Many Uses Covered– Medium-term loans can be used for a variety of business purposes.