Things, you have to consider before applying for an unsecured loan

Things, you have to consider before applying for an unsecured loan

Unsecured loans are ideal for individuals that do not have a formal source of income. They may be conducting business legitimately, but circumstances may limit their official financial borrowing capacity.

Services like Cashwagon are ideally suited for such individuals needs and can be done conveniently, hassle-free and remotely from your workstation. However, before applying for an unsecured loan, you may need to consider and deliberate on the following points:

Do I really need to apply for a loan?

Sometimes micro businesses and solopreneur businesses have cash flow problems which can usually be solved by renegotiation of payment and/ or delivery terms, sourcing of family-related funding or stringent debtor collection procedures. If your business cash flow cannot be rectified by the above, then it may be prudent to apply for an unsecured loan.

The injection of cash should help out until the cash flow of the business returns to normalcy and you are back into a situation to repay the loan.

How much money should I apply for?

When taking out a loan/ funding, sometimes we tend to get carried away and apply for more financial resources than we need. Perhaps to cover a smaller future investment or to simply inject more cash into the business or personal cash flow.

It is always prudent that if you are seeking upon applying for a loan unsecured or otherwise; to always take the exact amount of funds which you need. This is to limit the amount of interest payable of the payday loan amount. Sounds fair?

Do I have a repayment capacity?

Applying for loans to help your financial situation is great, but before doing so, we need to ensure that we have a way to repay the loan and/or at the very least, the minimum payable per tenure breakdown.

So one needs to analyze the projected cash inflows to their bank account and do a quick fiscal study to see how soon they can repay the borrowed amount and whether utilizing services like Cashwagon solves their short-term problem.

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