What Is a loans by phone?
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- What is a loans by phone?
- The Growth Of Online Lending
- During The Covid-19 Pandemic
- Is It Safe To Apply For A Loans By Phone?
- Additional Benefits of a Loans by Phone For Borrowers
- Drawbacks Of A Loans by Phone For Borrowers
- Top Benefits
- More Convenience
- Access To More Financial Products
- Easier To Manage
- More Engagement With Consumers
- Top Drawbacks
- No Consideration For Bad Credit
- More Susceptible To Fraud
- Does The Company Have A Good Reputation?
- Does The Company Handle Fraud And Abuse Suitably?
- The Application
- What if I Don't Want To Go Through The Application Process?
- What Is The Application Process Anyway?
- Why Do I Need To Complete A Business Plan?
- Do I Need To Declare My Credit Score?
- How Much Should I Borrow?
- Am I Approved Yet?
- The Rigmarole
The Pros And Cons Of A Loans By Phone
With the Covid-19 pandemic restricting where people can meet and social gatherings becoming fewer, more businesses are looking to online lending to ease the financial burden. Although the majority of loans are delivered electronically, some still prefer the reliability of a paper-based approval.
What is a loans by phone?
Simply put, loans by phone are small business loans provided over the phone, with the majority of the loan giving process taking place without ever meeting in person. The convenience for both lender and borrower is clear.
The Growth Of Online Lending
The convenience and efficiency of online lending is clear, with the ability to apply for a loan from the comfort of your home. Online lenders can also provide additional documentation, such as tax returns and bank statements, in a click of a button.
During The Covid-19 Pandemic
In the midst of the Covid-19 pandemic, many lenders are taking the step to provide additional funding to their small business customers. Although the majority of loans are being provided online, a few lenders are providing loans by phone because their small business customers prefer to work directly with them rather than logistically go through an online lender.
Is It Safe To Apply For A Loans By Phone?
While the convenience of applying for a business loan online is certainly enticing, the risk of applying for a loan without meeting the lender in person is high. Normally, when applying for a traditional business loan, the lender will want to verify your identity and the business’s identity through some sort of documentation. This process is known as loans verification and is typically done during a face-to-face meeting.
In the case of a loans by phone application, this step is often eliminated. Instead of verifying identity through documentation, the lender will typically ask for your social security number or bank account details, which you will have to provide.
Additional Benefits of a Loans by Phone For Borrowers
In addition to the convenience for the lender and borrower, there are a few other advantages to doing business via phone. If a business chooses to take out a loans by phone, they will typically be given better terms compared to a traditional business loan.
- Banks typically offer better rates for small business loans.
- There is less paperwork (and less chance of errors due to sloppy paperwork).
- It’s a faster process. With many lenders offering loans online, the speed at which a loan can be processed is often the determining factor.
- Fewer surprises. Since the majority of the loan application and processing takes place online, there is less chance of both parties being surprised by something.
- There is less chance of human error due to less people involved (fewer opportunities for mistakes).
- No need to keep records of face-to-face meetings. Since the majority of the loan application and processing takes place online, there is less chance of both parties being required to keep records of their meetings.
- No need to worry about physically delivering documents. With many lenders providing online documentation, there is no need to worry about physically delivering documents to the lender.
Drawbacks Of A Loans by Phone For Borrowers
Although there are several perks associated with doing business via phone, there are also some drawbacks. Since the process is typically done remotely, the quality of the work is often questioned. The ability to verify the business’s credit rating and personal credit rating is also limited because there is no face-to-face interaction. Finally, there is always the chance that one or both parties could be dishonest during the application process.
- Dishonesty is always a possibility when there is no face-to-face interaction. In the case of a loan by phone, there is always the risk someone will lie about something or misrepresent themselves.
- The process can be very time-consuming. Since the majority of the application and processing takes place online, it can be very time-consuming.
- It’s not always possible to get the best rate. Banks are often restricted by law or regulation on the interest rates they can charge, placing limits on how much they can reduce the cost of the loan.
Is a loans by phone right for your business? If you’re looking for additional funding during these difficult times, it’s worth thinking about the pros and the cons of taking out a loans by phone versus other options available to you.
One of the biggest purchases you’ll make in your lifetime is the smartphone that’s stored in your pocket 24/7. It’s no secret that smartphones have hit an all-time high in sales, with analysts predicting sales may reach nearly a trillion dollars worldwide by next year.
With such high consumer demand and the convenience of mobile shopping, it’s no wonder why so many people are turning to mobile loans. Here are the top benefits and drawbacks of mobile phone loan.
There are countless perks that come with taking out a mobile loan. Here are just a few of them.
With the convenience of mobile shopping, anyone can buy what they want whenever they want it. Because credit checks are not required, thousands of online retailers have sprung up to serve mobile phone shoppers. If you have an active credit card in the US, you can also use it to make purchases on the go.
You can place orders and have them delivered to your house in a matter of minutes. If you’re out and about with your smartphone, you can browse through hundreds of retail stores and compare prices without having to go to multiple locations.
This convenience is one of the major draws of mobile loans. With the ability to make purchases on the go, it is no surprise that mobile shopping was responsible for 19% of total retail sales in the United States last year.
Access To More Financial Products
Thanks to the convenience of modern-day banking, a growing number of financial products have made their way onto mobile phones. With the ability to order food, travel, and retail goods straight from your phone, many financial services have pivoted to serve mobile phone users.
Loan sharks and financial fraudsters are exploiting this new source of online revenue by preying on unsuspecting mobile phone users. If you are seeking a safe and easy way to make a purchase, you can avoid these con artists by researching the company and reviewing the Better Business Bureau (BBB) scam report for the area.
The BBB has found that complaint rates are significantly higher when it comes to online loan providers as compared to traditional lenders. In addition to higher rates of complaints, online loan providers are more popular in countries with less consumer protection laws. Keep this in mind if you are looking to do some mobile shopping in a country with less strict privacy laws and protection of personal information.
Easier To Manage
When you sign up for a mobile loan, the banks and credit card companies will give you tools to manage your finances. Just click on the link in the email and you’ll be guided through a simple onboarding process. With mobile loans, your credit card will be billed and available for use in the event of non-payment. If you are seeking budgeting and tracking capabilities, mobile loans are the perfect fit.
More Engagement With Consumers
Thanks to the rise of TikTok and other social media sites, consumers now have a presence in the financial services industry. With the ability to listen in on financial advisers’ phone calls, review customers’ transaction histories, and monitor their spending habits, many investment firms, insurance companies, and credit card issuers are utilizing these tools to gain a better understanding of their customers.
In the near future, taking out a mobile loan is likely to become even more popular as more and more people use their phones as their main source of financial information. If you are seeking to expand your business into the mobile space or just want to stand out from the crowd, consider taking out a mobile loan.
Even though getting a mobile loan can be convenient and offers a number of perks, it’s not always perfect. Here are just a few of the drawbacks.
No Consideration For Bad Credit
One of the major perks of taking out a credit card is that it offers consideration for bad credit. If you are looking for a no-consideration loan, then a cash-back credit card may be the right fit. Unfortunately, most financial institutions will not offer loans with cash back, so you’ll have to look elsewhere for a no-consideration loan.
Cash back can also be an excellent tool in the right scenario. For example, if you are seeking a luxury item and want to make a purchase but do not have the cash at the moment, you can use a cash back credit card to get the money later. In this scenario, you’re benefiting from the luxury purchase without having to spend a penny. This is one of the major draws of cash back credit cards.
Other drawbacks include increased fees, increased interest rates, and minimum payments that are due regardless of your financial situation. Some mobile loan providers will even add hidden fees and charges to your statement.
More Susceptible To Fraud
Mobile shopping has been responsible for its share of complaints to the Better Business Bureau as well. According to the BBB, as of March 2019, there were 4,084 complaints against the 1211 online loan companies currently on their radar. In 2018, the BBB received 12,567 complaints, a 42% increase over the previous year. The vast majority (91%) of these complaints were attributed to online loan providers. Why are so many people upset with online loan providers?
From bad to worse, online loan providers usually target low-income, vulnerable, and middle-aged individuals. These are the people the loan sharks and fraudsters are looking to prey on. The scammers will approach you in all sorts of ways, from cold calls or emails to social media accounts such as TikTok or YouTube.
Another major concern is online loan providers who ask for your Social Security number. Never, ever give out your Social Security number to anyone who contacts you online. The number is 99% useless and can be used to steal your identity. Don’t become a victim of identity theft. Learn more at SSND or StopSocialSecurityNumberDupes.com.
Aside from financial security, the other major concern regarding online loan providers is whether or not they are a good fit for your needs. It is always a good idea to research the company prior to making an investment, especially when it comes to borrowing money. There are several things you should consider before making a decision:
Does The Company Have A Good Reputation?
Investigating the company’s reputation is one of the most essential steps to take prior to getting involved with the business or purchasing its product. There are a few key things you should look for in order to assess the company’s reputation.
- The Better Business Bureau (BBB) — Check what type of complaints the company has previously been involved in. You can also use the BBB to search for complaints by company.
- Customer reviews — Read reviews of the company or product you are considering investing in. Always look for independent reviews as opposed to company-backed reviews. The difference is that company-backed reviews are usually positive while independent reviews are usually critical. Companies have a financial incentive to encourage positive reviews as opposed to negative reviews. However, if you find a number of poor reviews, then it may be a sign the company is not the right fit for your needs.
- Social media — Research the company’s social media accounts. Are they active? Are they responsive to complaints and feedback?
Does The Company Handle Fraud And Abuse Suitably?
Every financial service and product has its share of complaints. To a certain extent, you should expect some level of complaints since it is impossible to provide a perfect product to everyone who needs one. However, online loan providers will typically hide behind a veneer of legitimacy by claiming they have developed a system that prevents complaints and complaints from escalating. This may be true, but the BBB finds that this is not always the case. If you are seeking to avoid financial fraudsters and identity thieves, then it is essential you do some research into this matter.
Through detailed reviews, the BBB has found that online loan providers are more likely to target individuals in the following categories:
- Low Income
- Black and/or Hispanic
You know that moment when you’re driving down the road and suddenly realize you’re low on gas? Or that moment when you’re browsing through social media and see that a friend posted about how much she just spent on a couch? Or when your crush finally notices your Instagram account and gives you a simple “like” for no apparent reason?
Payday loans are meant to be quick and easy to get, but in reality they’re not. At least, they weren’t when I applied for one. I mean, sure, I got my cash quickly. It took me about 20 minutes to fill out the application, give them my bank info and confirm my social security number. But when it came down to actually getting approved and getting the money, I realized how much harder this would be than just driving to the gas station.
Is it just me or does the application process feel a little ridiculous? As if the banks and loan companies don’t trust you enough to give you a loan without first going through this entire rigmarole? Who knows, maybe I’m the exception and they actually do want to give me a loan because I’m a good credit risk or I have a reliable income. But the truth is, I don’t want to play by their rules, I want to do business with them!
Let’s get into the details of how to apply for a payday loans. Since 2014, MoneyMatch, an independent online payday loans platform, has been matching struggling people with low incomes with financial institutions that are willing to help. As a member, you’ll fill out an application that’s as quick and easy to get through as possible. Normally, you won’t need to provide a lot of personal information other than your name, email address and phone number. However, if you’re applying for a business loan, you may need to provide some additional information about your company (i.e. your business plan).
What if I Don’t Want To Go Through The Application Process?
If you’re the kind of person who hates wasting time, you can always choose to skip the application process and go straight to a lender. However, this might not be the best option. Getting a payday loan from a bank is normally a much simpler process, as you’ll only need to fill out an application and possibly an online questionnaire. The money will be placed in your bank account within 24 hours, which, as I mentioned before, is actually quite quick. Another perk of getting a payday loan from a bank is that you don’t have to go through the lengthy application process. The next best thing to getting a cash advance is to get a small loan from a friend or family member who knows you’ll pay back the loan. This way, you don’t have to worry about your credit score affecting your ability to get other credit cards or loans.
What Is The Application Process Anyway?
The application process is the step that comes before you get the money. This is essentially where all the fun begins. The better you do, the faster you’ll get the loan approval and the sooner you can get the loan approved. Normally, all you need to fill out is the application. However, if you’re applying for a business loan, you might have to fill out a business plan (if you’re applying for a loan worth more than $5,000) or an income statement (if you’re applying for a loan under $5,000).
Why Do I Need To Complete A Business Plan?
If you’re applying for a small business cash advance, you don’t need to complete a business plan. However, if you’re applying for a larger loan amount or you’re applying for a business loan where your personal credit is on the line, you might need to complete a business plan.
To begin with, the business plan acts as a sort of blueprint for your company. In it, you’ll list your products or services, tell the reader what makes your product or service special and give the reader an idea of what you’ve done (or plan to do) in regards to your business. When it comes down to applying for a loan, the lender will want to make sure that you’re taking the business seriously and that you have a good idea of what you’re doing. In some instances, the lender might want to see some financial records, such as a balance sheet or income statement. If you do have these financial records to show, then great! Otherwise, you might have to write something up about your business’s finances.
Do I Need To Declare My Credit Score?
When you apply for a cash advance, the lender will most likely ask you for your credit score. It won’t matter whether you have good or bad credit, you’ll need to tell them. On the one hand, if you have good credit, then great! On the other hand, if you have bad credit, then you might have to find a way to improve your credit history before you can get the money you need.
Why are credit scores important? They’re used to determine your creditworthiness and thus, your ability to get approved for credit and loans in the future. Basically, lenders want to give you money because they see that you’re a safe and responsible borrower, which is why it’s important to have a good credit score. If you don’t want to disclose your credit score, then you can always choose not to apply for the loan.
How Much Should I Borrow?
Once you apply for a loan, the lender will give you an idea of how much money you should borrow. As a general rule of thumb, the amount of money you should borrow is equal to your monthly living expenses (minus the mortgage payment, of course) divided by two. So, if you make $2,000 a month and your mortgage payment is $1,500, then you should borrow $3,000 for a rainy day fund.
Of course, this is a general guideline and you should always feel free to ask the lender for more or less money based on your situation. Just make sure that you’re aware of how much money you should borrow and why you should borrow it. If you want to own a car, you should ask yourself whether or not you can really afford it. Is buying that new car really going to help you get out of debt? What if you lose your job and can’t make the payments? These are all valid questions and you should be prepared to answer them. Even if you don’t think that you’ll have a problem repaying the loan, it’s always better to be safe than sorry.
Am I Approved Yet?
After you’ve filled out the application and submitted it, the lender will review your application and either approve or disapprove it. In most cases, you’ll find that you’re approved instantly, but in some instances, it can take a bit of time. However, once you’re approved, the lender will need to verify your information before they can issue you the money. This is normally a simple process and it’ll happen quickly. Just make sure that you’re aware of this step since it involves another financial transaction (i.e. a wire transfer) and it might take a bit of time to process.
Once you have the loan, it’s time to spend some more time filling out paperwork and verifying information. Basically, you’ll have to do a bit of paperwork to make sure that the lender is able to release the funds to you. This is called “paid paperwork,” which means that you’ll have to fill out a form so that the lender knows that they’ve been paid back. Normally, this will take a few days to a week to complete. In some instances, you’ll need to go through an additional step to clear up some of the financial records before you can actually get the money in your account.