Payday Loans in the world are very different from those offered by Russian Payday Loans. Abroad, they usually mean short-term small loans with a small interest rate, designed for individual entrepreneurs, start-ups with very low capital requirements and small businesses with a small number of employees.
Microcredit organizations usually offer payday loans with amounts ranging from $ 500 to $ 50,000, the average loan is $ 13,000. The most popular are payday loans, which help entrepreneurs in underdeveloped countries. In these distant corners of our world, the lending system successfully encourages entrepreneurship and affects economic growth in developing countries. Already more than 75 million people worldwide have received over $ 38 million in loans from microcredit organizations.
Although the exact rules of law differ between credit companies, technically almost any registered company can qualify for payday loans. In fact, payday loans are recommended for small startups with limited capital requirements, even if they have no income history.
In addition, Payday Loans are designed to support minority business owners – low-income applicants and women. Yes, in our country it does not matter much, a man owns a company or a woman, and in some countries women experience difficulties in conducting business.
Fortunately, for small business owners there are more simplified conditions for obtaining loans than for large companies to take a loan from a bank.
However, the minimum requirements are still there. To take a Payday Loan, a potential borrower should have a complete business plan in hand, have a good credit history, be prepared to provide collateral or surety, and in some cases show that it is possible to invest their own funds in the business.
In 1992, in the USA, the small business administration made efforts to stimulate the economic development of entrepreneurs in society. This is how the Payday Loans program appeared.
The cooperation with local intermediary non-profit organizations in order to issue small loans of up to 50 thousand dollars that traditional banks could not issue. The Office is located in the United States, directs funds to a regional non-profit organization that has experience in business management and loan assistance.
Such intermediaries, through which businessmen receive payday loans, provide technical assistance so that borrowers can more easily get loans and run a successful business. The entire list of such organizations is presented on their website.
Payday Loans are considered a valuable form of small business financing. The received loan can be used to pay a new employee or purchase initial stocks. This money cannot be used to meet any needs and requirements. Most often, the rules meet the following goals:
– working capital
– purchase of stocks or supplies
– office or commercial furniture
– cars and equipment
To get a Payday Loan on this system, you need to go through three simple steps.
Find a suitable supplier in your region – fulfill all the requirements for a business operation – submit an application.
The first and third steps will not be difficult to cope with, but the second may be difficult. Some intermediaries may request a Payday Loan to undergo business training before the borrower can apply. This is done in order to increase the competence of the borrower and increase his chances of success in his business.