What's a Pay day loan?

A Pay-day loan is a tiny, short term, high-rate loan. Loans are repayable on your next pay day, even though it is feasible to replenish your loan till successive paydays. To sign up for a loan you have to be in work and have an account with a bank book.

Typically , a borrower writes an individual check payable to the bank for the amount she wishes to borrow and a fee. When making an application for a business loan, you should prepare a written loan offer. Always start your offer with a covering letter.

When writing your offer, do not make the assumption the reader is familiar with your industry or your individual business. Existing Business : Provide finance statements for no less than the last 3 years, and a current dated statement ( no older than ninety days ) including balance sheets, profit & loss statements, and a reconciliation of net worth. Aging of accounts payable and accounts receivables should be includ! ed. Proposed Business : supply a pro-forma balance sheet reflecting sources and uses of both equity and borrowed funds. Projections : offer a projection of future operations for no less than one year or till positive money flow can be shown. The projections should be in profit & loss format. Explain assumptions used if different from trend or industry standards and support your estimated figures with clear, documented reasons. At that point, depending on the particular plan, the bank deposits the check, you redeem the check by paying the sum owing in readies, or you roll-over the check by paying a fee to increase the loan for another 2 weeks.