What Is a web cash loan?
No hidden or upfront fees
Apply quickly with any credit score!
The Pros and Cons of Web Cash Loans
You might wonder what is a web cash loan, and why should you care about them?
In today’s world, thanks to the internet, banking, and cryptocurrency, all of which are flourishing fields, opportunities to receive loans are virtually endless. Thanks to platforms like LendingClub, which facilitate online borrowing and help members make the most of their credit cards, the need for a physical storefront, expensive point-of-sale equipment, and highly paid salespeople has declined. Moreover, the competition among lenders is fierce, as demonstrated by the ongoing battle for customer loyalty between traditional banks and fintech startups.
The Rise Of Online Lending
The first website that came to my mind when thinking about web cash loans was Dwolla. Launched in 2010, the online payment solution allowed users to send and receive money online (via email accounts). At the time, I was working for a credit card processing company that had a partnership with Dwolla, and we would get calls almost daily from people wanting to set up Shopify stores and other online ventures but without money to fund them. Thanks to Dwolla, these entrepreneurs could set up their websites, sell their goods, and even pay their employees in cryptoassets (Dollar, Bitcoin, or Ethereum) without having to worry about funding. This was huge for people without access to traditional banking or with poor credit scores. And it made perfect sense to me; the fewer intermediaries and steps you have in the settlement process, the better. For these reasons, I think Dwolla and other online lenders such as Zopa and LendingClub (more on these two below) will play an increasingly prominent role in the future of finance.
More Than Meets The Eye
Dwolla, for those unfamiliar, is a now defunct company that had its heyday in the early aughts and received massive investment from well-known venture capitalists. In addition to being the first company to provide a cryptocurrency (now called “Dollars”) for retail use, it also pioneered several other financial products, including peer-to-peer lending (lending between individuals) and paperless money (recording mortgage payments in cryptocurrency rather than traditional currencies).
When you have a business with employees, partners, and customers that all rely on your ability to keep the lights on, it’s only natural that you’d want to look into every available avenue for financing. Fortunately, thanks to the internet and the rise of fintech, there are plenty of options for small business owners to get the capital they need to grow their companies.
Peer-to-Peer Lending
In the last decade or so, as the economy transitioned from retail to online shopping and social media, individuals who want to start up or operate a business have found an alternative avenue to traditional bank loans: peer-to-peer lending.
As the name would suggest, peer-to-peer lending allows individuals, groups, and even businesses to lend to one another, rather than going through a financial intermediary. The advantage of this type of lending is that it keeps the transaction costs down and eliminates the need for credit checks and collateral (such as a house or car). Moreover, the World Bank states that 44% of the world’s population (more than 1.9 billion people) now have access to a credit card, and that number is expected to reach 66% in the next five years. All of this means that there is plenty of demand for small business loans, and platforms like LendingClub and Weblend have created marketplaces where entrepreneurs can find the cash they need to grow their companies.
It should come as no surprise, then, that many of today’s biggest companies have got involved in the online lending space. For example, Square, the credit card processing company, now has a $10 billion-plus valuation and is among the world’s largest publicly traded companies. It’s no wonder why; at face value, Square Cash makes it easy for individuals to get the cash they need for everyday transactions without having to go through a bank.
Traditional Banks Versus Fintech Startups
Even big banks, such as JP Morgan Chase and Wells Fargo, have gotten involved in the cryptocurrency space, primarily as a result of the growing consumer demand for digital assets. As the market for cryptocurrencies and blockchain technologies continues to expand, banks can expect to see more business; currently, 10% of JPMorgan’s total revenue comes from crypto-related activities, primarily through its ownership of a cryptocurrency, the JPM Coin.
With the proliferation of online lenders and newer platforms like Trulieve offering loans in cryptoassets, traditional banks are scrambling to keep up. In May 2019, Citigroup, another giant in the traditional bank space with an estimated $2 trillion in assets, bought a 37% stake in BitOasis, an international digital asset exchange.
For years, traditional banks have been the preferred choice for small business owners seeking loans, mainly because of the perceived trustworthiness and safety that come with keeping your money in a financial institution. That has begun to change as fintech startups have stepped up to the plate to provide financial services to the underserved. It’s also important to note that small businesses that qualify for traditional bank loans most often have better credit scores and are less likely to have bounced payment or charged off (defaulted on) a loan in the past.
The Future Of Finance
Thanks to the rise of fintech, new platforms, and new technologies, such as Bitcoin and the blockchain, the way we get money and do business will continue to evolve.
To remain competitive, traditional banks will have to adapt or die. It won’t be long before online lending and alternative funds provide the majority of financing for small businesses and startups, much the way credit cards and checking accounts did in the past.
In the future, we’ll see more businesses accepting electronic checks and payments, even for small dollar amounts. And instead of applying for a bank loan, entrepreneurs will turn to peer-to-peer lending platforms or even cryptocurrency wallets to get the capital they need.
If you’re looking for money to make a purchase, you’ve probably tried many different strategies, from borrowing from friends and family to going on credit cards. There is one more option available to you — the web cash loan. Before you make a decision, here are the pros and cons of web cash loan.
Advantages
There are numerous advantages to borrowing money from the web. First, it’s often less expensive than other loan options. The minimum loan amount is often around $100, compared to the $500 that you might need for a typical brick and mortar store. The monthly payment is usually around $20, compared to around $50 for a credit card. In the long term, you can save money by paying back the loan in full before the end of the month.
Second, the web makes it easy to access money. Credit cards and other traditional lenders demand that you have a steady income. If you don’t, you might not qualify for a loan. With the web, it’s possible to apply for a loan with no credit check, no income verification, and in some cases, even with poor credit. The disadvantage is that you have to be online to take advantage of this option.
Third, web loans are more flexible than other types of loans. With a credit card, for example, you’re usually restricted to using the available credit on a single purchase. The web allows you to use the money for whatever you want. You can buy electronics, furniture, or even a home. While this might be appealing, it comes with a lot of risk. If you spend more than you can afford to pay back, you could end up in severe financial hardship. The key is to be realistic about what you can afford.
Disadvantages
Like any other form of borrowing, there are several disadvantages to borrowing money from the web. First, interest rates are typically higher on web loans. Without a doubt, the convenience of the web makes it easier to get a loan. However, the cost of this convenience is that you’re often charged higher interest rates than traditional lenders. Second, there’s the risk of overspending. Just like with any other type of loan, you could spend more than you can afford to pay back. The only difference is that with a web loan, this is a bit easier to do. You might make a purchase that you can’t afford, simply because you want to use the money for something else. This is why it’s so important to be realistic about your finances.
Third, the web makes it easier for potential lenders to track your activity. Just like with any other form of borrowing, lenders have the ability to track your finances, your spending habits, and even your social media activity, if you’ve chosen to apply for a loan this way. Therefore, it’s important to keep your spending habits private, especially if you don’t want strangers to know about your financial troubles. As a rule of thumb, never put personal or financial information in your bio. When applying for a loan, be sure to put in your resume, and not your social media.
The Bottom Line
At the end of the day, the pros and cons of web cash loan are often irrelevant. If you’re looking for quick cash to make a purchase, there’s no question that the web is a great option, and it’s often less expensive than other loan options. Just make sure you’re aware of the risks before you apply.
If you’re looking for an alternative way to get money quickly, you’ve probably considered trying out a web cash loan. These are short-term loans that can be taken out against your bank account and are usually due back within days to a week. If you need more time, an extension can be approved, and most providers offer that option.
But while web cash loans can be a convenient way to get money quickly, you’ll need to consider a few things before applying.
Minimum Account Balance
The first thing you’ll need to consider is your account balance. It’s best to aim to maintain a minimum balance of a few hundred dollars to keep things simple. If you’re looking for investments, you might want to consider keeping a larger balance so you have some money to invest. The key is to keep things simple and use the money for necessary spending only.
If you’re new to the world of credit, it can be tricky to understand how banking works. Why? Most banks will want to see a certain percentage of cash on hand before they’ll let you open an account. That’s because they don’t want to risk losing money due to mismanagement of bank accounts. Keeping a certain amount of cash on hand is the simplest and most secure way to keep your money managed by a professional.
Types Of Loans You’ll Need To Apply For
When you’re applying for a web cash loan, you’ll need to consider what type of loan you need. Do you need short-term cash to make a purchase? Or do you need a long-term loan to make large purchases (like a car or house deposit)?
While you might be tempted to go with the first loan offered, taking out short-term loans to make large purchases can hurt your credit score. It’s best to go with the loan that you’re most likely to pay back. If you need short-term cash, consider taking out a loan from a friend or relative. Your friend network may also be able to help you out with a private loan if they know you’re looking for financial help. They may even be willing to help without you having to ask.
If you’re looking for a long-term loan, you may want to consider looking into a home loan or car loan. While these loans offer longer term payment options, they will also increase the amount of money you’ll need to pay back. If you want to make large purchases (like a car or house deposit), take out a loan against your long-term savings. Before you do anything, though, be sure to consult with a financial advisor first to help you decide what loan and what type of investment is right for you.
Bank Accounts
Another thing you’ll need to consider is your bank accounts. Do you have a checking account at a big bank like, well, U.S. Bank? Or are you using a different type of account, like a credit card for the majority of your spending?
If you do have a checking account, it’s essential that you keep a minimum amount of money in there at all times. If you don’t have enough cash in your account, your bank will not let you make any transactions. So, for the sake of safety, keep at least $100 in cash in your account at all times. Also, try to keep your account active by making deposits and withdrawals frequently. Big banks like U.S. Bank actively seek out customers who are doing their banking on line because it shows they’re providing a convenience for their customers. Keeping your account active is a great way to demonstrate that you’re a valued customer and increase your chances of getting favorable interest rates or even free checking.
Credit
The last thing you’ll need to consider is your credit score. This is a number that determines how likely you are to be approved for credit and how much you’ll be able to borrow. A credit score of around 750 will get you approved for most loans you’ll encounter. However, anything above 800 will make you stand out. There are several tools online that you can use to check your credit score for free. Just remember, the information provided by these online tools is completely free and available to anyone. So, be careful what you input as this can affect your credit score.
Taking out a web cash loan won’t be for everyone. Just remember that if you’re looking for fast cash, this may be the best option available. However, if you need a long-term loan or are looking to set up a cash reserve for larger purchases, you may want to consider looking into a home loan or car loan instead. Keeping your credit score high will help you get the best loan possible when you need it. So, be careful what you input as this will affect your credit score.
Related Pages
