19 Dec Why You Should Consider Daily Payment Loans
As you begin researching your options for business lending, you might be surprised to learn just how much variety is out there. Today, business owners have more choices than ever as they compare specific loan terms, some of which might include daily payment loans. But when you see that phrase, you might be inclined to pump the breaks – why would anyone want to make payments every day, rather than weekly or monthly?
While it might sound daunting, daily payment loans actually tend to better suit the fast-paced financing needs of many small businesses. As you continue researching the terms of various unsecured funding options, keep in mind how payment schedules fit into your preferences and finances.
How Daily Payment Loans Work
Daily payment loans can be lumped into the general category of short-term business loans. The key to this form of financing is speed and efficiency – fast approval for small cash infusions paid back in a relatively short amount of time. However, short-term loans can be risky for both parties unless they are designed with the right terms. Daily payment schedules are among the typical features of short-term business loans that make it all possible.
In general, the more frequently a borrower can make payments on a loan, the more secure the lender feels in extending credit to them. By agreeing to have those payments taken out of their account via ACH each day, business owners gain many advantages:
With payments automatically transferred from a bank account each day, most borrowers are surprised at how quickly they can pay off their loan. That helps them accomplish what they need and move onto the next project faster, rather than being saddled with expensive debt for months or even years.
Fast, Easy Approval
Daily payment terms help reduce risk for the lender, which increases the chance of speedy loan approval for borrowers. That’s why these types of short-term business loans can be extended quickly and with less paperwork than traditional long-term loans often require. Daily payment loans also favor borrowers with less-than-perfect credit or who have only been in business for a short time.
Once approved for a loan with daily payments, business owners know exactly how much they will need to schedule out each day. In the end, many borrowers – particularly those with seasonal sales – find it easier to plan for the future when they know exactly how much they will owe each day.
Daily payment loans are best used to quickly capitalize on a business opportunity – like hiring additional workers, making an investment in new equipment, taking advantage of discounts and any other cash crunch where time is of the essence.
No matter what kind of small business loan you need, there’s no one-size-fits-all solution. QuickBridge works closely with small business owners at every stage to deliver the right loan, right when it’s needed. Get in touch today to learn more.