Quick Loan Business - Essay Example

 Quick Loan Businesses The rise of proliferation of quick loan businesses has been on the rise in the last few decades. Payday loan is the short term loan given to individuals before their pay check arrives. The payday lenders as the author is saying are very important since they tide borrowers with the loan until they get their next pay check. The business exercises of payday lenders have been very crucial to the borrowers since they offer borrowing chances for individuals who cannot have access to money by traditional sources like credit unions, banks as well as credit cards (Sun Tzu, 2010).

As the author explains, the payday loan is very easy to get quickly. The requirements for taking out a payday loan are very easy. Therefore, it is very likely for any individual to take out the payday loans so long as one has a bank account, some form of income such as benefits like social security as well as legal form of identification. This kind of loan assists people in coping with the expenses that comes in between their pay check (Bartlett, 2009. Payday loan is very important both to borrower and to lender.

This is because as long as the borrower has a bank account, loan can be available. Even if the borrower had been declared bankrupt in the past, or had been having a bad credit history, the individual is in a position to acquire payday loan. This is in contrast with other lending companies which cannot give loan to individuals with bad credit history as well as to people who are bankrupt. This means that the borrower needs not to worry about accessing payday loan. The author says that payday loans are taken very quickly.

This is because of the low requirements that are needed to acquire the loan as well as their design for short time. The author says that the payday loan can be available in 24 hours after application, even if some companies makes the funds available in just a couple of hours. This means that the choices are great if the borrower needs the money quickly. The money can be available instantly if the borrower have unexpected expense (Francis, 2009). Payday lenders offer small amounts of money which is in contrast with other lending companies whereby they put upper limit on how much an individual can borrow.

As the author puts it, the limit means that the borrower cannot borrow more than what an individual can be able to pay. The author explains that the borrower cannot get into more debts as part of the procedure Lawrence & Elliehausen, 2008). Payday loans offers a useful short term credit loan that assists the borrower in coping with expenditures as well as bills that requires to be paid before the borrowers next pay check. This is because payday loans offer a quick as well as convenient source of credit for any person who requires it.

This form of loans helps people in avoiding troubles such as unpaid bills as well as missed payments. In addition, payday loans give a source of emergency funds to the borrower in order to deal with costs that are unexpected (Stegman, 2007). References Lawrence, E. C., & Elliehausen, G. (2008). A comparative analysis of payday loan customers. Contemporary Economic Policy, 26(2), 299-316.Stegman, M. A. (2007). Payday lending. The Journal of Economic Perspectives, 169-190.Francis, K. E. (2009).

Rollover, rollover: A behavioral law and economics analysis of the payday-loan industry. Tex. L. Rev., 88, 611.Bartlett, J. (2009). Bartlett's Words to Live By: Advice and Inspiration for Everyday Life. Hachette Digital, Inc.Sun Tzu, A. (2010). Foundation of business thought. Utah: University of Utah