Posts Tagged ‘Travel International’

Why Online Flex Loans are good but only for Emergencies

September 28th, 2022

One of the rising loan options out there,Guest Posting an online flex loan is a higher cost loan that comes with many qualities which make it the go-to choice for emergencies. Off late however, there is a chatter in the market, about how a lot of borrowers tend to start using such a loan on a routine basis given the convenience they find in the borrowing process associated with most such loans. In 2019, one study found that a significant number of borrowers that contributed to the growth of online flex loan, were performing routine borrowing transactions for needs that were not exactly urgent. We at CashAmericaToday, dedicate our services to being borrower-friendly and we believe it’s important for us to use our means of reaching out to our customers and potential customers, to help spread awareness about the right uses of such loans.

Understanding Online Flex Loans

Online flex loans are known to be amongst the most flexible form of payday loans, which are particularly easy to qualify for and acquire. For those who need a simple introduction, a payday loan is much like what the name suggests – a very short term loan which is typically set to be due along with applicable charges, on the borrower’s next payday, given that that lies within a set period of time – usually 7-14 days ahead of the disbursement date. Such a loan is usually quick at paying out, which makes it a high risk loan (due to limited feasibility of a complete credit and payment ability verification). The two factors – a very short term and high risk lending – are what lead to payday loans being a high interest rate loan. The high interest rate doesn’t necessarily translate to a very high cost given the limited number of days that the interest is applicable for.

A flex loan is a payday loan that is flexible in the repayment terms. Instead of the typical 7-14 day period, when a borrower needs a repayment window that’s longer than that, some direct lenders offer such an option and tend to term it as a flex loan or an installment payday loans.

The reason online flex loans are doing great, is primarily the nature of these loans and whom they appeal to. Since flex loans are higher cost loans which are easily available and repayable in parts, it is quite understandable that people in a real emergency will make up for the largest number of borrowers. Such emergencies are best served by online services which do not create the need to move around in hunt for a loan. Nonetheless, applying for a loan from a trustworthy and legitimate lender is key and we address this topic ahead too.

Here’s a link to an example of an online flex loan. CashAmericaToday is one of the most experienced direct lending services offering flexible repayment options that are automated to suit your convenience.

Tips for Investment Success – Promissory Note Loan Servicing

March 24th, 2022

A Practical Guide to Protecting Your Promissory Note Investment

Writing a check to invest in a promissory note begins the investing process that will provide you with future income and possibly capital gains. After your check is cashed, numerous administrative functions are necessary, on an on-going basis, to protect your investment and maximize its profitability. The administrative functions are called “Loan Servicing”.

Unfortunately, the Loan Servicing function is little understood by many and neglected by most. This neglect causes a discount and devaluation of your investment. Let’s learn how to increase your promissory note investing success and protect the investment through intelligent Loan Servicing.

Definition of ‘Loan Servicing’
Promissory note loan servicing provides administrative services for the loan from the time the proceeds are dispersed until the loan is paid off. Loan Servicing includes: sending monthly payment statements, collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance, managing escrow and impound funds accounts, remitting funds to the note holder, and following up on payment delinquencies.

Promissory Note Loan Servicing Reports
Monthly and Annual Reports: gross income collected, real income collected, taxable income collected, and repayment of principal collected must be all be tracked separately and reported. Regular payments, partial payments, late payments, late fees, and service fees must be recorded and reported.

Year-end IRS Report Forms: 1096, 1098, 1099-A, and 1099-C must be prepared and remitted.

Loan Servicing Pitfalls and Traps
Realizing the specialization and complexity of the Loan Service function is the first step in dealing with it intelligently. Realizing that neglecting it will discount and devalue your investment is your wake-up call to handle it professionally and carefully. Doing Loan Servicing on scratch paper, or on the back of an envelope, will not satisfy the local State laws, Federal laws, or IRS rules and regulations-a good software Loan Servicing program is needed.

Many uninformed note investors do not realize their exposure to being sued by disgruntled borrowers, State Attorneys General, or by Federal law enforcement agencies. The legal expenses to defend one law suit, or one investigation, can wipe out a year’s investment income or more—even if you win; if you lose, it can be many times more costly.

Tips for Investing Success
The first rule for investing success: understand the details of the investment; understand its risks and rewards; understand your responsibilities and your rights; understand what you will do when an unexpected negative event happens.

The second rule for investing success: understand the details of administering the investment. Who does the Loan Servicing? Is that person or entity experienced and capable? How often will you receive reports on your investment? If you intend to do the Loan Servicing yourself you must realistically and objectively evaluate your own experience, capabilities and computer software facility.
Don’t underestimate the time and effort required; don’t overestimate your own capabilities.