Most people experience the need to borrow money for various purposes – personal, family or business requirement. It is important to evaluate your requirement and personal circumstances to ensure achieving your purpose without losing inner peace due to stress from unwise borrowing. Having noted that, what then are your options on where to borrow money now? There are three popular ways people resort to when borrowing money these days. They are borrowing money from a bank, from people or from Cashwagon. Let us see the advantages and disadvantages of each.
Borrow money from a bank
When it comes to borrowing a large amount of money, banks are a normal go to; whether for personal car, family house or financing one’s business start-up. The main advantage of going to the bank is its practically unlimited upper lending limit. The only limit is your own credentials and capacity to pay.
There are also different packages that could sit well with your requirement in terms of due dates, payment schedule, extension of terms, upgrading of amount. Credit line for example is very good for businesses where cash requirement is dynamic. You have a total approved amount from which you can draw any amount as many times as you need provided the outstanding balance do not exceed the approved total amount. And you can repay any and all at earlier date of the due date.
The main disadvantage when you borrow money from a bank is the legal and documentary requirements and the required collateral. The bank has stricter and high standards and your credit rating must be apt to the standard. For most loan accounts, the processing is lengthy and if you need more urgent funds you cannot expect your need will be met on time.
Borrow money from people
Borrowing money from people is the most comfortable way of securing your funding requirement. This is especially when you have a good number of moneyed friends who look up and to you or at least consider you as trustworthy. Their requirements are usually very minimal, like a simple promissory note or simple contract. They usually do not charge for the money or if they do, only minimal, unless the people you are borrowing from are lending sharks. Lending sharks charge very high interest rates justified by them for the high risk of lending usually without any collateral.
Another disadvantage is the limited amount available, depending on the level of equity or available cash of the people you are borrowing from. An important disadvantage of borrowing from people, especially friends and relatives, is the risk of ruining an otherwise good relationship in the event you default for any unforeseen or foreseen reason.
Borrow money online in Cashwagon
Perhaps the easiest way to generate funds you need is to borrow money online in Cashwagon.
Cashwagon is an online lending company focused on online consumer financing. The main advantage of this form of borrowing is the ease by which the transaction is done. The advantage of Cashwagon is that it requires no collateral, without complex approval procedures and no long wait. All the terms and costs are clearly displayed in its website and so no surprise charges. The main disadvantage is the very limited amount being approved which is based on your salary or income. You cannot avail from it for long-term purposes or high business requirement.