Quick loans have become a very timely financing instrument for those seeking alternatives to their concession through traditional banks. In recent years, its popularity has increased considerably, so it is worthwhile to delve into its essential characteristics, so that the advantages of quick credits for the self-employed are understandable.
Next, we will review the reasons for the success of these financial products and the benefits they bring to the various entrepreneurs.
The origin of the popularity of quick credits
This type of credit already existed for many years before, but we have to go back to the last decade to remember where the bases of the growing demand for these financial products are based.
We have to go back to the economic crisis, whose first clear effects were felt in our country throughout 2008. This structural crisis had, among its problems, the complications when returning certain credits.
Consequently, these difficulties to respond to savers and entrepreneurs led to stability problems for banks, which had to be rescued by public money. Among the conditions that public institutions imposed on banks, it was important to ensure the possibility of returning the loans granted.
Therefore, there has been a hardening of the requirements that are imposed on bank branches when granting loans. The risk departments of the banks carefully study the solvency of their clients and minimize the possibilities of defaults.
In this sense, the harmed ones have been the numerous clients that, in the absence of any requirement, have not been able to access the credits they needed. Consequently, they have seen a traditional way of financing closed to them. But, as the needs of this had not disappeared, these people have been properly informed and have sought solutions.
Among them, one of the most advantageous has been offered by the credits that occupy us in this article.
The essential characteristics of this class of credits
As we have advanced, these credits differ, in a way, from those that have been usual in conventional banking. Broadly speaking, we can point out that the amounts that are handled in the credits of the alternative loan entities are usually lower than those that are usually requested in traditional banks. This is due to the needs of different types of financial products, which is also associated with the demand for different customer profiles.
In the first place, we must remember that the granting of these sums of money must not be limited to the fulfillment of requirements as strict as those that affect conventional banks. In this aspect, it will not be necessary to provide payrolls or endorsements , which may hinder access to credit. On the other hand, a regular source of income is requested. This favors the self-employed can demonstrate their ability to repay the credit, by virtue of their frequent income and without the guarantees and payrolls pose obstacles for them.
In addition, another requirement that is not required is to demonstrate the absence in the different delinquent censuses that the risk managers of banks usually consult before proceeding to analyze the convenience of granting a loan. Some of them are Fern or Phineas and, sometimes, a person can be included in them by mistake or a debt, practically, irrelevant. These circumstances, in case of preventing the granting of a certain credit, would be unfair.
Likewise, the possibility of carrying out the procedures related to the application and granting of loans over the Internet facilitates, to a large extent, the procedures . We must bear in mind that working online allows an undoubted saving of time and money. Above all, in the preparation of the documentation that banks usually require and the long waits that can be produced in the different branches of face-to-face banking.
The alternative credit entities, which have made online transactions one of their most recognizable signs of identity, facilitate access to credit from the comfort of one’s home and with a fluid exchange of communication from the most modern devices. Sufficient requirements, therefore, will be to register on the entity’s website and select the amount of the credit in question and the term in which it is to be returned. If all the user information has been entered correctly, the money may take minutes to reach the current account that has been given as a reference.
When do you have to opt for these credits?
Finally, we must emphasize that the characteristics of the loans that we are commenting are associated with a specific profile of self-employed or saver.
First of all, we must emphasize that this type of loans should not be used as a form of systematic financing, since abusing it could lead to over-indebtedness. It is, on the contrary, to get fast money to alleviate urgent financing needs, which do not allow delay.
In the following lines, we quote some of the situations in which the usefulness of these financial products is manifested:
– To pay a fine that, in case of not being paid in the opportune term, will suppose to have to face a surcharge (which will imply a ballast for a self-employed person).
– Facing the financing of compulsory works to obtain an opening license or resume the relevant economic activity.
– Pay for the training course (which is on offer) of an employee of the company.
– Facing the payment of a rate that is imposed when carrying out certain business activities.
Ultimately, we must inform the reader that it is possible to make comparisons between the different conditions offered by these financial products. For example, in our company, Atrapacredito , in which the opportune information is provided to have sufficient elements of judgment when opting for quick or other credits .