When does a bridging loan turn into a payday cash loan?
A bridge loan is a short term loan usually no longer than a year. The aim of a bridge loan or bridging loan is to give the borrower the much needed cash flow until they receive funding. People use bridge loans in numerous financial situations, but recently there has been a shift in borrowers and have started using referring to payday lending as short term bridging loans.
In effect, payday cash loans can be seen as a variant of a bridge loan – although they offer much shorter terms, (usually up to 30 days) they serve the same purpose as a bridging loan which is to give a helping hand to meet current financial obligations until the borrower’s next payday or funding.
Brief overview on a bridge loan
- A bridging loan is a short-term loan that is taken out until permanent financing can be arranged, this type of loan is often also called swing loan.
- Borrowers usually take a bridge loan when purchasing a commercial property, land or residential property, sometimes it can also be used for auction purchases.
- Bridge loans are typically more expensive than conventional financing to compensate for the additional risk of the loan. Bridge loan interest rates are usually 12-15%, with typical terms of up to 3 years.
UK bridging loans vary from US bridging loans, here is a quick UK bridging guide to help you through each step.
Brief overview on a payday cash loans
To qualify for a payday cash loan the borrower needs to be:
- a UK resident
- over age 18
- have a valid UK Debit card and a UK bank account
- have a steady income
Reputable payday cash lenders can offer flexible, short-term loans starting from £200, and up to £1000. Repayment is within 30 days or less. Some payday cash loan providers may allow borrowers to determine the length of loan and will charge a reasonable interest rate based on the length of payday cash loan but you can checkout the details here- https://www.pales.co.uk/short-term-loans/. Typically, a short term loan should be settled on payday. They strongly recommend customers settle payday loans quickly.
If you need to get money fast, just click to apply for a payday cash loan now!
Cash converters vs Payday loans
If you’re thinking about visiting a cash converter because you need some quick quid, maybe you should think again. Cash converters require you to part ways with your precious goods, which can be anxiety-provoking and a bit embarrassing as well.
Sure they pitch it to you under the guise of “They’ll give you cash for all your old junk,” but if it’s just a bunch of old junk they want, how much cash will you really get? Also, can’t you go and sell your own stuff on EBay?
In contrast, payday loans are short term loans online and are 100% secure and discreet. With payday loans, there’s no lugging your bag of goods down to the high street because you can apply for a loan from the comfort of your own home.
Additionally, payday loans are fast, sometimes even super-fast within one hour, or up to a maximum of one day. The funds are deposited directly into your bank account so you don’t have a wad of wonga in your fist to “accidentally” spend down at the pub when it was supposed to go towards a holiday or gas bill.
If you need money today, leave your keepsakes on the shelf and apply for a payday loan to extinguish that cash emergency.