The main source of the income of these money lending companies is interest rates. It is the tactics used by many banks and money lending institutes to offer lower rate of interest to attract their target market. Mostly target market gets attracted by lower interest rates. The borrower feels motivated to apply for loans. So in order to get Fast Loan application done visit some reliable website for great offers in low rate of interest that can turn to be a benefit from your point as well as money lenders’ point of view. Now let’s discuss concisely small businesses, the benefits and disadvantages they get form landing companies. The main aim of small businesses is to go through development stage as soon as possible, so they need to understand that financial Institute can play great role in fasten their growth period.
The advantage offered by lending companies to small business:
Banks usually not give loans to small businesses as there is a high risk of not being repaid. Bank involves heavy detail inquiry before lending money to any borrower. They check their financial history and the credibility of being repaid. Small companies are in the process of development. Therefore, they cannot assure to return the amount with higher interest rates. Bank usually lend money to the business or a company who are in progress to make sure the return.
On the other hand small business lending companies offer them flexible terms and condition and does not require such heavy process. They motivate small businesses by giving them loans despite greater chances of not being repaid. So what are you waiting for go file the application for loan in Licensed Money Lender Company?
Disadvantages lending companies to small business:
There are always two sides to the coin, and it is very important to see each side. Similarly lending companies have advantages as well as disadvantages on small businesses. The main disadvantage of lending money from money lending companies to small businesses is higher rate of interest. To eliminate the risk of being repaid lending companies usually ask higher rate of interest from small companies to be paid at the time of returning of particular amount. Secondly, in the case some unfortunate circumstances, if you are not able to repay the amount they will confiscate the collateral object.