WHAT IS AN INSTALLMENT LOAN
An installment loan is one which offers funds to small businesses or individuals. Once you obtain the loan, the borrower then pays instalmentally the same amount for the duration of the terms which both parties agreed on.
Installment loan is a great funding option for business owners who want to make purchases but can’t pay the total amount upfront.
What Types of Loans Are Not Installment Loans?
- Payday loans: These loans are quite easy to get, but the interest rates are usually high. For businesses that need access to quick funds, this can be an option.
- Title loans: Title loans are a good fit for car owners. These loans require applicants to put up a collateral in exchange for the loan. This collateral will be taken if there is a default in the repayment of loan.
- Credit Cards: This is a means of generating business funds. Also, when you use a credit card, there is a certain amount of credit that you cannot exceed (credit limit).
- Lines of Credit: Lines of credit provides business owners with capital they need. They are usually renewable, but the interest rates are high. A collateral is required when you don’t qualify for an unsecured line of credit. With secured lines of credit, you get better rates.