What if you didn’t know about the best financing tool for your small business?
When it comes to business financing, most of us think about the major business loans that help us open the business. What about smaller loans to help you with unexpected emergencies?
A progressive loan is one of the best ways to prepare for the unexpected. Keep reading to learn more about the loan structure of a progressive loan.
What Is a Progressive Loan?
Progressive loans are primarily intended to help you take care of unexpected emergencies. In this way, they have some things in common with payday loans (without the payday loan baggage).
Progressive loans are typically for smaller amounts that you pay back within a month. That makes them an ideal solution if you or your business needs to make up for a temporary shortage of cash or an unexpected expense.
Another way progressive loans are like payday loans is that they are easy to qualify for. Even if you have trouble getting approved for a traditional small business loan, you will likely have a far easier time getting a progressive loan.
Progressive Loan Structure
Now you know a bit more about what these loans are. That leaves an obvious question: how do they work?
First, these loans are considered unsecured loans. Factors such as your typical monthly profits help collateralize the loan in the eyes of the lender, but the loan itself is not officially tied to any form of collateral.
Second, it is more accurate to imagine these loans as a kind of cash advance. It is easy to qualify and most lenders can process the application very quickly. You get the money you need almost as soon as you need it.
Third, you can typically apply and get approved online at any hour of the day. If you are in a time-sensitive situation, this can help you take care of your business needs without missing a payment and ending up in debt.
Pros and Cons
Now that you know how these loans work, there’s one final question: what are the unique pros and cons of progressive loans?
You are already aware of some of the chief pros of these loans. They are easy to qualify for, quick to pay out, and provide a way for almost any business to get money when something unexpected occurs.
However, there are some cons as well. These loans typically have a higher interest rate than more traditional loans; if your business is already in debt, the relatively high repayment on progressive loans may further impact your bottom line.
Ultimately, progressive loans are like any other kind of business financing. No one solution suits every business, so you must know your potential options.
Progressive Loan Structure: Your Next Step
Now you know more about the progressive loan structure, where can you get one?
We specialize in helping businesses get the financing they need. To learn about all of our loan options, contact us today!