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Benefits of Payday Loans

Quick payday loans are a great way to make ends meet when something unexpected comes up before you get paid. If you need some cash quickly but aren’t sure if fast payday loans are what you’re looking for, here’s what you need to know about payday loans and how they can be beneficial.

No Credit Check

When you apply for this type of loan you have the advantage of not having your credit score affected. Payday loans don’t use your credit score to determine eligibility for the loan. This is beneficial because a low credit score won’t prevent you from getting the loan and your credit won’t be dinged from inquiries either. What really matters when obtaining this type of loan is that you can prove your employment and how much you make in order to determine the amount of loan you’re eligible for to make sure it’s an amount you can repay.

Fast

Another benefit of this type of loan is its speed. Unlike many other types of credit you won’t have to wait days or weeks to find out if you qualify for the loan. You’ll have the money in your bank account in at least 24 hours if not within an hour of applying for the loan. That makes it easy for you to obtain necessary funds for the emergency you’re facing.

No Use Limits

One problem with using a credit card when you’re short on funds is that it’s difficult to get actual cash or you pay a higher interest rate for cash. With a payday loan you can get it all in cash and there are no stipulations on what the money can be used for.

Convenient

Lending institutions that offer payday loans typically have more flexible business hours than banks or credit unions. This allows you time outside of your workday to obtain the cash, and in fact, you can often apply for and be approved for the loan online. 

Customer Protections

Some people worry about getting quick payday loans because they fear they’ll be taken advantage of in their time of need. However, there is legislation in most states designed to protect you from fees and interest rates that would make it impossible for you to pay back the loan. In fact, many states cap the interest rate and fee amounts to help customers stay out of a cycle of debt with payday loans. 

How to determine your debt collection process?

Debt collection is something that you need to handle carefully. Debts can lead to business failure if it persists for long. On the contrary, improper debt collection procedures can have adverse effects on your brand. The debt collection process ranges from a friendly reminder to repossessing the customer’s assets. You can move from one step to another depending on the reaction of your customer. This article will give you some tips on how to determine your debt collection process. However, you should be aware of the debt collection practices that are banned by the government. You don’t want to find yourself on the wrong side of the law as you try to get your debt back.

•    Using a Friendly Reminder to Pay

When the payment is overdue for the first time, give the client a courtesy reminder by sending him a letter, emailing, or phoning. In some instances, the clients will pay once you contact them. The customer may have made a payment in the wrong account, forgotten about the bill, or there could be another minor issue that you can resolve quickly and easily. Include your contact information, banking details, and payment options in the reminder so that it will help the customer to pay easily and quickly. You can get a friendly email reminder template to use in making your request.

•    Use an Overdue Payment Reminder to Contact the Customer

If the payment remains to be outstanding and the client misses to pay on the next agreement date, or he fails to contact you, then give them another call. This step also entails sending another reminder letter or email of the outstanding payment reminding him to meet his obligation. You can get an overdue email template to use for your reference at this stage.

•    Use a Final Notice to Contact Your Customer

If the customer fails to pay as per the terms of payment and misses the extended payment dates, email or call them to discuss the outstanding debts and request them to clear the arrears. Send them a final notice to pay, and you can use an online template for reference or resource if you don’t have one.

•    Try Making Direct Contact with the Customer

If still there is no response or payment, try to visit the customer in person. You can also give him a phone if you were previously using the email to contact them and ask for payment. This action may help in facilitating a personal relationship with the client and may help you with future payments. You can get an online contact script to use for your reference or resource.

•    Sending a Formal Demand Letter

If all your attempts to contact the customer and get payments don’t bear fruits, you can now send them a formal demand letter. Remember you only need to undertake this procedure as a last resort. The reason is that it can damage the reputation of your brand. It can hurt the relationship you have established with your customers including the loyal ones.

•    Use Debt Collection Services as the Last Resort

If the payments are still pending, you can use the debt collection agencies as a last resort. This procedure can also have adverse effects on your brand in the market. Don’t resort to such actions unless you are dealing with difficult clients and more friendly approaches have failed to bear fruits.