Fast loans – alternative financing route
No one finds it rare today that fast loans have become an alternative financing route to traditional financial institutions, given the difficulty, both for individuals and companies, to obtain liquidity through traditional channels. It should not be forgotten that banks have practically stopped lending money for a long time, especially after the economic rescue to which almost a third of the entire national bank has been subjected. The lack of liquidity, the difficulty of finding new jobs and the progressive decline in the savings of the Spanish, have become the perfect breeding ground for which an endless number of online finance companies have been able to meet the needs. economic benefits of Spanish families and new companies and entrepreneurs.
Quick loans are mainly based on the capacity of this type of alternative entities, mainly fintech, to offer a not very high amount of cash in a short time and without requesting explanations or resorting to payrolls, guarantees or forcing clients to contract another type of products or services (such as insurance or securities) in exchange for the money borrowed.
Why have fast credits become so famous?
- One of its main characteristics is its speed when granting loans. Undoubtedly, they have become the fastest on the market and are capable of offering liquidity almost immediately to face economic situations that cannot last over time. It should not be forgotten that the response of this type of company does not usually exceed 48 hours. What’s more, in the case of mini credits, the money can be credited to our checking account in less than 15 minutes.
- They practically do not require conditions in exchange for liquidity, unlike what happens with traditional financial entities, in which it is mandatory to prove sufficient solvency for the repayment of the loan, such as having a payroll or regular income. Unfortunately, many people today cannot meet this type of requirement due to the precarious employment situation in Spain, due to not having a possible guarantor or not having real estate as collateral. Despite this, and although they are profiles with higher risk, this does not imply that they will not repay the loans, especially when it comes to small amounts. Precisely this belief is what has allowed fast loans to position themselves in such a good place within the Spanish economy. Only in high-volume loans this type of company requires the presentation of a payroll receipt, but for the rest of the cases the conditions are practically non-existent.
- The processing is carried out entirely online, which allows to maintain anonymity and obtain liquidity in a simpler way for the client and without having to go to your financial institution to formalize the contract. In this type of companies, the documentation is sent over the internet and there is no need for direct contact with the company that lends you the money, which has turned these companies into a true paradise for those who need immediate liquidity and do not want to give explanations. This does not prevent, of course, offering a more traditional procedure for those who want it because they do not feel comfortable with these novelties.
This type of advantage has placed fast loans in a privileged position within the Spanish economy despite the high interest rates. And the convenience of contracting this type of loan lies mainly in this aspect and the need for immediate money. Weigh these two elements carefully before opting for one or another type of loan.