Bridge loans and payday cash loans compared
January 29th, 2009When does a bridging loan turn into a payday cash loan?
A bridge loan is a short term loan usually no longer than a year. The aim of a bridge loan or bridiging loan is to give the borrower the much needed cash flow until they receive funding. People use bridge loans in numerous financial situations, but recently there has been a shift in borrowers and have started using refering to payday lending as short term bridging loans.
In effect, payday cash loans can be seen as a variant of a bridge loan - althougth they offer much sorter terms, (usually up to 30 days) they serve the same purpose as a bridging loan which is to give a helping hand to meet current financial obligations until the borrower’s next payday or funding.
Brief overview on a bridge loan
- A bridging loan is a short-term loan that is taken out until permantent financing can be arranged, this type of loan is often also called swing loan.
- Borrowers usually take a bridge loan when purchasing a commercial property, land or residential property, sometimes it can also be used for auction purchases.
- Bridge loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. Bridge loan interest rates are usually 12-15%, with typical terms of up to 3 years.
UK bridging loans vary from US bridging loans, here is a quick UK bridging guide to help you through each step.
Brief overview on a payday cash loans
To qualify for a payday cash loan the borrower needs to be:
- a UK resident
- over age 18
- have a valid UK Debit card and a UK bank account
- have a steady income
Reputable payday cash lenders can offer flexible, short-term loans starting from £200, and up to £1000. Repayment is within 30 days or less. Some payday cash loan providers may allow borrowers to determine the length of loan and will charge a reasonable interest rate based on the length of payday cash loan. Typically, a short term loan should be settled on payday. We strongly recommend customers settle payday loans quickly.
If you need to get money fast, just click to apply for a payday cash loan now!
January 30th, 2009 at 8:58 pm
Payday loans are a great resource, but they need to be used responsibly just like a credit card or other traditional loan. Check ‘n Go offers payday loans in many states, and also from the convenience of your own home. Visit http://www.checkngo.com for more information.
March 8th, 2009 at 3:14 am
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