Unexpected expenses and emergencies are sometimes the main causes why people look for immediate ways and means to get their hands on some quick cash. Since filing for a loan application with a Loan Company or a bank would take a lot of time, their only recourse is to apply for small loans with specialized loan providers that are now present in Singapore. This kind of loans works like a salary cash advance only the fund will not be coming from an employer but from external loan businesses.
Small loan providers are specialized businesses that cater mostly to small loan applicants. This type of borrowing today is slowly gaining ground, especially for people who are immediately in need of small financial assistance but do have the time to go through the normal process of filing for a loan and/or do not have the credentials and documentation to file for one.
Small loan businesses are starting to pick up for the simple reason that even if the individual is considered as a bad credit risk or is not qualified to apply for any type of loan but is able to give the lenders proof of income such as earnings from business, employment salary or a paycheck, they are immediately provided with the loan that they require. This is also perhaps the reason why small lenders are quite popular with the working masses. Aside from this, small loan providers are quite accessible to the common workers because they can be easily reached anywhere in the metropolis and most of them now are starting to go online to offer their business thereby allowing cash-strapped individuals to file their loan over the net.
These type of loans may be an easy answer to cover a bounced check that you have issued, avoid late payment for an installment obligation or to simply help bail you out of a bad credit situation. There is, however, one big problem with this type of a loan and that is the very high interest that is placed on the financial assistance. Because of necessity, most borrowers would sometimes overlook this fact, but if you study the loan terms carefully, the amount of interest that you would have to pay for the loan can skyrocket to as much as 300% of the annual percentage rate. In short, you will actually end up owning more on the interest as compared to the original amount that you have borrowed.