We have all faced that situation at least once in our lifetimes when we have to make unexpected payments. Often when faced with such unexpected situations, the possibility of having cash at our disposal is very slim. It can be particularly difficult when dealing with unforeseen expenses close to the end of the month when all the money received from your salary is used and there is no other form of income. Using credit cards in such situations is typically what one does but in the long run credit cards only end up creating a cycle of debt with their absurd rates of interest. With the right SME Loan in Singapore you can get ahead on your business.
Now what does one do when face to face with unforeseen expenses? Payday loans are a great and convenient way to meet such expenses. People with salaried incomes who tend to fall short of money at the end of the month find these loans extremely useful. Payday loans are given for a short time frame and are usually given for amounts that are small in size. People looking to avail massive sized business or other loans wouldn’t be able to take a payday loan. Further, payday loans are only provided for individuals who have full time jobs. Free lancers and part time employees cannot take a payday loan.
The rate of interest that is usually charged on a credit card is close to 20 percent and in some cases even more. On the other hand, the rate of interest charged on a payday loan is around 15 percent, making it much more affordable for the applicant. The chances of defaulting on repayment of a payday loan are also very slim because these loan amounts are deducted from the salary of the professional. Even the fees for taking the loan will be cut from the applicant’s next salary, making this form of loan safe for both the applicant as well as the loan provider.