Instant Loans – In most cases a secured lending agreement has slightly lower risk factors and so the interest rate of the loan will be lower than an unsecured lending agreement. The second type of lending agreement, the unsecured loan, is often called a signature loan because there is no collateral tied to the loan and the only linchpin of the agreement is an individual’s name placed on the dotted line. In this case, the risk is at least a rung higher and deserves a higher interest rate as far as the high risk lender is concerned.
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A poor credit small business loan may take the form of a venture cash advance which does offer some advantages over the more traditional signature lending agreement. Companies offering this kind of financial lending agreement base their offer on future credit card sales and do not require collateral, do not require financial records or tax returns and allow for smaller payments when business is slow. But the danger of such an agreement will be the interest rates that can be as high as thirty percent or more for such borrowing privileges. In this case, if a smaller enterprise does not have a very quick infusion of legitimate commerce quite soon after getting such a cash advance, all future profits could easily go towards just trying to keep ahead of the repayment schedule, which could easily grow if payments are not met on time.