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As a new direct sales representative, it may be a new world to you working online. You are not always able to come face to face with customers, and it takes time to build up the reliable word of mouth referrals you need to operate your business. Consistent advertising methods will help increase your business, but, unfortunately, you do need money to do so. Installment loans have been a viable option in these times for new direct sales representatives.
How an Installment Loan Works with Your Business
An installment loan has other common names, such as payday loans, no credit check loans, or cash advances. What differentiates an installment loan from a typical bank business loan are a few things:
- There are no credit checks
- You can handle the entire application online
- They do not need to know how you are going to use the funds
- You will receive your payment within 48 hours
The loan amount is based upon the amount you show proof of being capable of paying. You will be required to make prearranged payments, typically through your checking or savings account. The payments are set up in weekly, biweekly, or monthly increments. For many installment loan vendors, if you keep a good credit history with them, they will increase your credit line.
Your Prior Business History Has No Bearing
You'll find as a new business owner, going into a bank for a business loan, you'll get shot down quickly. Most banks want to see your company's financial statements to prove you are capable of paying them back. If not, they look closely at your personal assets and credit history before considering you for a loan.
However, an installment loan does not require access to your credit report, nor do they want any of your business financials. You don't need to provide a business plan either. These are considered short term loans, so although you may not qualify for over a few thousand dollars, you would have what you need for advertising methods.
Pay the Loan Off Quickly
Once you've been approved for your installment loan, do not feel obligated to take the payment in full. You can ask for a lower amount. Installment loans have a bad reputation because of their high-interest rates, however, again they are there when small business owners need them the most.
It's important to at least pay your minimum amount due, however. The more you pay, the better off you will be. Falling behind in this loan could place you into the payday loan trap. This is when you are taking more installment loans to pay off another due to the increased debt.
Installment loans are seen in such a negative light for those that abuse their purpose. However, as a new direct sales representative, this is a means to grow your business and income when you have no chance of receiving a loan with the banks. An installment loan is a hassle free option for new direct sales representatives to get funds for online advertising, hire an assistant, hire a graphic designer, or order business cards and flyers.
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