6 Ways a Quick Online Loan Can Help In Emergency Situations in Kenya

quick online loan in kenya

Financial hardships, like losing a job, medical emergencies, bills, bereavement-related expenses and other living costs can occur at the worst time and when you least afford them. Securing a quick online loan in Kenya for such unplanned expenses can help get you back on your feet.

If you are like many middle-class Kenyans, you are likely to plan for different expenses in your life; from how you’ll pay your children’s school fees to how you’ll pay for a car or a home and so on. You also might have some little money set aside for miscellaneous. However, when emergencies or unplanned situations that require a considerable amount of money up front hits, you may find yourself in a monetary crisis.

While the saving fund could cushion part of the emergency costs, you might still need some money to offset the outstanding balance. In such cases, getting a quick online loan in Kenya to stem the tide will relieve you the stress. Personal loans provide incredible payment periods and interest rates, which makes them the most convenient and affordable way to borrow.

Unlike bank credits, online personal loans are easy to apply, and not as involving. They avail forms that only include essential details to gauge your compliance and suitability. If you pass the checks, your loan approval process could happen in minutes. Here are 6 ways a quick online loan in Kenya can help in emergency situations:

Car Repairs

Car repairs occur to everyone. You’re going about your daily routine, spending within your financial limits, and viola, an emergency repair strikes – hard. According to consumer reports, repair charges amounts to 4% of the annual cost that owners pay to get the vehicle. It doesn’t matter if you’re riding an inexpensive car, you still could be looking at tens of thousands shillings per year in repair and maintenance cost. Some common emergencies that might get you flat footed are replacing the spark plugs, dead battery, fixing brakes, which can quickly increase beyond your budget.

Medical emergencies

When sudden illness or injury happens, and you don’t have cash on hand, a quick online loan can suffice the situation. Yes, you might have insurance and all, but it may not cover your medical needs. Dental procedures, infertility treatment, hair loss restoration and replacement and weight loss surgeries might not feature in the insurance list, meaning you’ll have to deep into your pocket. Besides, some insurance only covers a certain percentage of the entire medical cost. A simple loan can help you take care of the rest.

House and office rent payments

Financial struggles like the emergency medical bill, car repairs, and job loss can eat into your rent. Unfortunately, most Kenyan landlords wouldn’t want to hear about it, and you risk being slapped with an eviction notice. Although you’re in a tight spot, you still need to figure out how you’ll pay rent, on time. This is where quick online loans for rent come in. You can browse online for reputable and legitimate online lenders committed to offering people with emergency loans at low rates.

Starting a side business

With bills skyrocketing by the day, you need a side hustle to keep you afloat. The money you get from your job can’t be enough to take care of all your expenses, let alone invest in a business. This is why many working class folks are opting for a second income stream. The only problem then becomes getting the initial capital. If you find yourself in such a situation, a personal loan could be the answer you’re looking for.

Create an emergency fund

In situations where a quick online loan in Kenya is the only thing standing between you and bankruptcy, then it makes total sense to ask for money. Rather than waiting until an emergency arises, consider taking a loan that provides you with enough repayment periods while you establish your savings. For better deals, it’s advisable that you do your due diligence up front, instead of trying to do so when you’re pressed for time.

Utility bills

When you’re having financial issues, you might find it hard to pay your electricity and water bills. These bills quickly add up. Failure to pay might mean a disconnection, and once you are disconnected, you’ll have to incur additional reconnection costs. Getting a quick online loan in Kenya can help you avoid those circumstances.

Four Steps to Make the Most of Your Credit

how to build credit

Maintaining your credit health is almost the same as maintaining a healthy life. Just like your health needs balanced nutrition and proper exercise, your credit health also needs attention, balanced spending, and responsible behavior. Your credit can be a very important tool in your financial life and you need to know how to Build Credit score.

Are you planning on buying a new house or a land? Your credits will come in great help here. But if you don’t manage your credit wisely, you are going to just hurt yourself financially.

In this case, you should grow some healthy habits to keep your credit from ruining your financial health. Take control of your finances and establish good credit. Do not be confused: Credit score and credit reports are two different things and when you understand this, it makes it much easier for managing your credit. We are going to provide you a complete guide how to build credit score.

Here are 4 healthy habits you want to incorporate into your life how to build credit :

  • Wise choice of credit card

Getting calls from different companies to sign up for their credit cards? Don’t get drawn to their offers, research! It is important for you to choose a credit card according to your circumstances. Do your research on different credit cards before signing up.

Also, make sure to ask for their terms and conditions because it can be useful for you. Keep in mind of two things: to look for low-interest rates and making sure it has no annual fee. We also suggest you compare different credit cards to find out which one best suits your specific needs and requirements.

Don’t max out your credit card because it will affect your credit score and pay your dues in full each month to maintain a clean record. Limit yourself to one major credit card with the limit you can afford. Don’t go overboard with too many credit cards on your name.

  • Build credit history

Make using your credit card “responsibly” your number 1 priority. Credit cards can be used to build your score but it can also come down falling as an unforgivable curse due to misuse of it. Be sure to pay in full each month. This saves you some cash and polishes your credit report.

A firm credit report is a major part of securing your mortgage or a car loan at a lower rate. Try regularly reviewing your credit report. It is a vital part of managing a good credit score and guarding against identity theft.

Are past credit mistakes haunting you and resisting your credit score rise? If you’re wondering what to do now, we suggest you should pay off your debts in full so that you can start repairing your credit history.

If you maxed out your several cards, worrying won’t help- paying off the bills will. You can close down one or two afterward but keep your oldest card running.

  • Lower your interest rates

Are you overwhelmed by the high-interest rate of your credit card? Don’t worry, you may not be stuck with it forever. But how? You can always negotiate with your bank or credit card company to get a lower interest rate. If they deny, try asking them every now and then. Perseverance might pay off in this case.

If the first option doesn’t work, transfer your money to a new card with a 0% interest rate. This will allow you to pay off your debt easier and manage your credit score better.

  • Knowing true facts about credit cards

Let us tell you a fact: you don’t need to sign up for credit cards if you don’t need one. Yes, it’s true! Maybe you are better off without one. It may make you feel valued but it will all come crumbling down when you end up owing quite a lot of cash to the banks. And if you are using one, be careful about how and when you are using it and remember to keep paying off debts in a timely fashion.

When you learn how to build credit properly according to your situation, you will be fine. But if you’re unsure, then don’t get one in the first place! But if you absolutely must, we would suggest you visit Mombo Sacco for smart savings! They offer loans up to 5 times your hard earned savings, and very low interest rates. It’s quick, it’s simple and they are upfront about their dealings so no more worrying about any hidden charges and sweetest of all? It’s all digital so say goodbye to tedious paper works from now on.

Along with Mombo Sacco, try regulating these steps into your life because keeping a good credit report can get you the most out of your credit. So, no matter what your situation is, try to keep your records clean and the end your payoff is guaranteed to be sweet!

How to Get Same Day Cash Loans – How Do They Work?

Getting a same day cash loan could be the answer to all your money problems… or it could end you in serious financial difficulty if you’re not careful. It’s all about finding a reliable lender, using that cash wisely and repaying it sensibly!

In this short article, we’re going to cover all that you could possibly need to know about same day cash loans, so you can manage money like a pro.

What are same day cash loans?

A same day cash loan is a loan that arrives in your Bank account the same day that you apply for it.

In other words, it’s an instant loan that deposits the money into your account without all the waiting, paper forms and interviews you’d face at the bank.

Generally, same day cash loans in Kenya are small amounts (see what kind of emergencies they can cover in Same day cash loans can save the day! below) that can be secured against your salary, assets (like a car) or savings.

Like nearly all loans, you’ll have a set period to pay it back in with interest and there may be penalties and fees for not paying it back in time.

How to find the best same day cash loans

Finding the best same day cash loan for you really depends on your circumstances. Here are some of the things you need to think about before getting a cash loan:

  • How much you realistically need.
  • How long it will take you to pay it back.
  • If you can pay it back early or in a lump sum.
  • If the money isn’t for an emergency, is the loan really worth it or can you save up the money yourself?

Once you know that, all you need to do is find a reputable lender who has a loan that meets your requirements.

What you need to apply for same day cash loans

Requirements will vary from lender to lender, but most lenders need to see proof of identity, either from driving license, passport or national ID. Some may also need to see your recent bank account statements and others may run a credit check on you.

Online and mobile lenders, like us at Mombo, can do all of this via an app or over the telephone. We want to make same day cash loans as quick as possible, so once you’ve applied with us we can have the money in your Bank account in as little as 10 minutes with the Insta Loans service.

We can deposit money into your bank account or M-Pesa account, whichever is more convenient.

Same day cash loans can save the day!

Here are some examples of how a same day cash loan can really save the day:

  • Emergency car repairs if you break down and need to travel to work.
  • Health care if you or a relative is in an accident.
  • Home repairs if the boiler or electrics break.
  • You need to pay a deposit on a holiday or other item and need to pay it quick before it’s gone!

What could you do with an instant loan? These same day cash loans are small amounts of money that can really save you in an emergency. But if you need some cash for non-emergencies (like your wedding day, a new TV, redecorating the house) you will be better off with a different kind of loan. One that offers you more money and easier repayment terms.

3 tips for repaying same day cash loans

  • Write on the calendar or in the diary when each repayment needs to be made – the last thing you want to do is forget. Late payments can have hefty fees. Our app will notify you if you’ve got a Mombo loan that needs repaying.
  • Work out how much the interest is going to cost you so that you always have enough money to make each repayment and keep the lender happy. Ideally, you should never take a loan that’s difficult for you to pay back without cutting down on living expenses (e.g. food, fuel etc.).
  • Finally, try and balance repaying loans with savings. Some people may tell you that repaying the debt should be ALL that you’re doing, but here at Mombo we really believe that repaying same day cash loans doesn’t mean you shouldn’t be able to save money too! You can read more about debts vs savings in this article.

Same day cash loans are a great way to get instant cash when handled sensibly! Keep checking back to our blog for more great tips and articles on managing your money.

Short on Funds before St Valentine’s Day? Check out Instant Online Loans in Kenya

instant online loans

St Valentine ’s Day is probably the second most expected holiday after Christmas. Why? Because all of us expect love. And when everyone around you is in a romantic mood, you can’t help expecting this day to be very special for you too. Maybe you have a person you’ve got tender feelings for and wait for an opportunity to make a declaration. Or maybe you are looking to refresh romance in your worn-out marriage… Or you just want to hearten your nearest and dearest and say they mean a lot in your life… In any case, feelings are not enough. You’ll need some tangible evidence such as flowers, sweets or jewellery. But what if you are low on funds before the holiday? Financial difficulties don’t mean you must stay outside the celebration of love. Sometimes, it’s not a bad thing to get some extra cash in such unromantic way as taking a loan. We’ll tell you about instant online loans in Kenya that take only a couple of hours to get!

Some St Valentine’s Day stats. How can you stay outside after that?

Do you know that over $13 billion is being spent on the most romantic day of the year? According to StatisticBrain, 180 million Valentine cards are bought to exchange love. And now some food for thought. 14% women decide to send themselves flowers on this day in order to not look unattended. Do you still think your favourite person has to buy flowers for herself? Just asking… Because 53% of women decide to quit the relationship if they don’t receive a gift for the St Valentine’s Day.

The truth is women take this holiday seriously. Even if they tend to behave like they don’t care. They do care.

Maybe you belong to those people who treat this holiday sceptically. Like it will humiliate love if we celebrate it only one day in a year. The idea is really weird. But we cannot change the fact this holiday exists. We can only change the way we spend this day.

This holiday has a great power to impact our relationship in a better way. Why? Because we all are tuned and ready for love weeks before the holiday arrives. Thanks to media, malls’ decorations and global excitement. The scenery is already set. All we need is to step up and take the prize. If you want to start a relationship, there is no better time like the St Valentine’s Day.

Unromantic question: should I apply for a loan to buy a present?

Many guys buy expensive presents just to impress their girlfriends. There is no wise reason you should do the same. Think what would work best in your situation. Think of things (or activities) your beloved one likes most of all. They can be quite inexpensive and plain things. Flowers and chocolates won’t cost you a lot and you won’t have to borrow too much. Looking for something extravagant? Then you can consider dining out in a restaurant or even a romantic escape to a beautiful place.

Tip: Look for instant online loans in Kenya if you want to get a fast approval and enjoy the lowest interest rates.

Where to get a loan online in Kenya?

If you need quick money against your next paycheck, search for payday loans online. With Mombo App, you can quickly borrow up to half of your net salary. All you need to do is to enrol with Mombo using the App and provide your valid chequebook. The requested amount is yours in less than 2 hours, and you can be off shopping for romantic stuff. The interest rate is only 12%, and you can comfortably pay out the loan within 6 months.

What if your romantic scenario requires a more substantial financing? Mombo can lend you the money quickly against your personal assets such as a car.

Where can I get a loan with bad credit?

Conventional brick-and-mortar banks don’t give loans to people with poor credit. But you can always use services of online lenders such as Mombo. Moreover, even win on a much lower interest rate (12%) than that of traditional banks (approx. 20%). With the Mombo App, you can get a loan with bad credit. You just need to provide collateral and honestly explain the reason for your bad credit.

You know people who want to achieve something, look for opportunities. Those who don’t want, look for excuses. We at Mombo work hard to create opportunities to make your boldest romantic dreams come true this St Valentine’s Day!

How to Apply for Small Loans in 3 Simple Steps

apply for small loans

A small loan could be all you need to ease financial strain, buy a vehicle, get married or just make some home improvements. But you need to be responsible with your loan. You need to find the best rate, the right term length and a reputable Kenyan lender.

Follow these 3 steps to apply for small loans with success.


Step 1 – Planning

There are many different types of small loans available for you to apply for: you need to find those that are suitable for your needs.

Payday loans offer you money against your salary – you accept the small loan and pay it back on your next pay day. Apply for small loans like this if you need a small amount of money in advance of your pay day, and you’re certain you’ll be able to pay back the loan from your salary.

You can also apply for small loans against your savings – different lenders will offer you different loan amounts. You could use this money for things like celebrations, home renovations or even emergencies.

Many lenders will also offer different kinds of small loans to apply for. The factors you need to pay particular attention to are: interest rates, added fees and restrictions when it comes to paying back the loan or the actual term of the loan.

Work out how much you need and how long you need to loan for. For example, Mombo App lends from ksh.2,000 to ksh.3,000,000 for terms of 1 week to 48 months.


Step 2 – Check Your Credit Score

Lenders will want to see your credit score as part of the application process, so it’s a good idea to take a look at your credit score in advance. If your credit score is poor, you might want to wait before you apply for small loans. It is wise to get your credit score to a good level before applying, to increase your chances of being accepted.

In Kenya, you can obtain your credit score from bank transactions or M-Pesa transactions.

  • Bank Transactions: you can obtain your credit score from the 3 credit reference bureaus (CRBs) in Kenya. These credit scores will have details about your transactions through banks and microfinance institutions. A score can be anywhere from 100 to 900: a good score is considered to be 700 or above. This credit score is better if you’re looking for large loans of ksh.200,000 or more.
  • M-Pesa Transactions: these are great for when you apply for small loans. Mobile lenders, like Mombo App, prefer these credit scores for small amounts between ksh.2,000 and ksh.200,000. The M-Pesa credit score has more details about your overall financial status as it covers mobile money transactions, while the bank credit scores do not.


Step 3 – Apply for Small Loans

Once you’ve got your score in good shape and you’ve planned out carefully how much money you need when you apply, it’s time to start searching for lenders.

The most popular or newest lender might not always be the best. Whether they’re a bank or a mobile app, there are a few things you should look for:

  • Bad reviews or good reviews?
  • Small print details – is the lender transparent about lending fees and conditions?
  • Does their website look reliable? Do they have a permanent address that checks out?
  • Can you call them and speak with an adviser to ask questions?


When you apply for a loan you’ll undoubtedly have to provide personal details as well as your credit score and other requirements. These will vary from lender to lender – some may require that you provide ID, others may just need a phone call or physical meeting to verify your identity.

When you come to apply for small loans just remember these 3 steps and be sensible! If you have any questions or concerns, why not get in touch with us at Mombo? We’d love to help you work out what loans are suitable for you and how much you could borrow. Find out more about Mombo App and apply for small loans here.

Things you Should Know Before you Apply for a Personal Loan

personal loan

Dealing with lenders is not easy. Especially if you are applying for a loan, there are MANY things you have to know beforehand.

If this is the first time you are going to apply for a personal loan, there are a few things you should keep in mind. The first and most important thing you should do is consider your credit score.

Your credit score is the value generated by credit reporting agencies based on your credit report. Factors such as your payment history, number and type of current loans (whether they are revolving or non-revolving), debt to credit available ratio affect your credit score the most.

Before you start the process to even talk about a loan with a lender, make sure you can trust the institution.

There are many fraud lenders these days who might use your information to commit identity theft. Especially if you are thinking to apply for a personal loan online, you HAVE to make sure the website is legitimate.

Otherwise, you might basically hand over your information to someone who would be more than happy to flush your credit score down the drain! So, if you want to get a guideline about what you should do, read on.

· Check your credit report

Before a lender approves your loan, your credit report will be the first thing they check- which is why you should review it first!

Your credit decides whether or not you can be trusted with a loan, or how risky you are as a customer. It also dictates how much interest you will have to pay as people with a bad credit report will have to pay higher interest (since they already have a bad record and are deemed risky).

Start by reviewing your credit score. If your score looks weird to you, make sure you check your reports carefully. If you find errors, get them corrected as soon as possible.

· Look for local options or apply online

The first places you should look for a loan is a local lender that is nearby you.

Taking a loan involves multiple trips to the lender; hence choosing one that is far away from you will be pretty inconvenient. Start by collecting details about the banks available and what their requirements are for a personal loan.

Most of the information you need will be available on their websites or brochures. If you have more questions to ask, you should talk to their loan officer over the phone or even in person. Don’t keep questions unanswered.

If you want things to be even more convenient, you could apply for a personal loan online.

· Research and compare

If you think looking at one lender is enough for you to decide whether or not you should take a loan, you are going to make a huge mistake.

Be sure to look into multiple lenders and compare their rates. Also find out all the terms and conditions of the loans they offer, whether they have some hidden charges or not.

Moreover, make sure you know the consequences of failing payments or becoming default. Even though you will obviously be trying to make your payments on time, some lenders have major repercussions for delays in payment.

Finally, only apply for the loan(s) that matches your requirements and is ensured to be accepted. Every loan application you make will negatively affect your credit score, so try not to apply for loans that you know you will not receive.

· Collect the paperwork and information that you will have to provide

Whenever you apply for a loan, you have to provide certain information about yourself.

Such information includes your monthly or annual income as they need to know your debt to income ratio. They will also require information about your expenditures, the number of dependents, residential status (whether you live in your own apartment or in a rented flat), name and address of your employer and how long you have worked for them.

Therefore, preparing the paperwork of this information beforehand means you will be able to submit them the moment they are asked for, hence reducing delay.

Even though dealing with lenders might seem like a scary task in the beginning, it will become a piece of cake for you if you follow these guidelines! Applying for a personal loan in Mombo is pretty easy. We have an app for it and the application process is like a walk in the park. Mombo SACCO offers loans of up to 5 times ones savings, loans at 12% per annum, interest on savings at 6% per annum withdrawable twice annually, annual dividends on one’s share capital, all processes are digital no paperwork. Download our app to know more.

3 Hacks to Bad Credit Loans

3 hacks to bad credit loans

Your credit score is kind of like oxygen, you only feel its importance when you need money. But it’s not sufficient to get you a feasible loan!

As much as I hate to acknowledge it, our credit score basically dictates what we can and can’t do in life.

For example, that new house you want to buy? You probably cannot do so unless you have a credit good enough to get you a low-interest loan. Or that once-in-a-lifetime trip to visit your grandparents? You can’t fund it without a loan either.

Every small delay you make in paying your utility bills or every time you max out your credit card limit, you are leaving a dent on your credit record. And every time you apply for a loan, you are pulling your score down. On the bright side, the dents are not permanent.

If you stay punctual in making your scheduled payments and maintain discipline in shopping, your credit records and score will eventually improve. However, fixing a bad credit record takes years of time and sometimes, we don’t have that much of time in our hands.

Sometimes, a difference of 30-40 in credit score becomes the obstacle in your path of getting a payable loan. For example, the bank might provide a loan at 10% interest rate if your credit score is 650, but since you have 615, you will get a loan at a rate of 20%. That 10% might be too much to pay because of your limited income.

If you are in a similar situation, let me tell you that you are NOT doomed.

There are a few hacks which you can use to boost your credit score a bit. Even though you’ll not be able to push it up by hundreds of points (which can only be done after years of trying) you WILL be able to increase it to a point at which you can get that good loan.

To see the effects of these hacks, you will still have to wait a few months. No hack can increase your score within days. More importantly, the change will not be permanent as you have to make sure you are maintaining it.

Nonetheless, it is still better than waiting years to see an actual change in your credit score.

Tricks to improve your bad credit quickly:

Ask for an increase in credit limit

One of the main things that affect your credit score is your credit cards.

As you know, credit cards come with a limit up to which you can spend without having to pay back right away. If you ask for an increase in your credit card limit, it basically means you can spend more money on credit.

However, this does not mean you should ACTUALLY spend the extra limit. If you can show the bank you spent Ksh.300,000 out of your Ksh.500,000, it means you are not a spendthrift or a risky customer for them.

On the other hand, if you spend all Ksh.300,000 of a Ksh.300,000 limit, it signifies that you kept spending till your card was maxed out, which is a big no-no for banks.

Consolidate your loans

If you have multiple credit cards, it means you have to pay multiple bills too. All these bills include their own interests and that means you have to pay a lot more than what you took!

Instead of doing that, you should take one personal loan with which you pay off all your credit card debt. This greatly decreases the amount of interest you have to pay as you will only pay the interest on your personal loan, while also improving your credit card status on your credit report.

Moreover, a personal loan is non-revolving debt, which will also improve your credit score as after some time it won’t exist anymore.

Try “debt-snowball”

This is not a hack in technical terms, but it’s definitely a good practice which motivates you to clear your debts on time.

Basically, make a list of all your debts, in an order of smallest to biggest. While you keep paying the usual installments, use any extra money you get to clear a loan. Since you will be starting with the smallest one first, it will get cleared easily. Then cut it off your list.

As you keep cutting off debts, you will be so motivated to pay off your loans that you won’t have any left soon! If you try these hacks, you should see a change in your credit score within a few months. Hope this works out for you!

Short-term loans: Dos and Don’ts

short term loan

When you are running a business, the profit and opportunity scenarios don’t always remain constant. I, for one, know how opportunities have a tendency to spring up just when you are lagging behind in the revenue sector.

Even if you are not having a bad time with sales, some juicy, amazing or once-in-a-lifetime opportunities might require funds that you do not have at the moment.

So what do you do then? Take a huge loan that will take years to pay off?

The answer is no, as Short-term loans are now widely available. There are many instances in which you should or shouldn’t opt for a short-term loan; here are a few of both:

When should you take a short-term loan?

If your business depends on the season or events that occur in a fixed time of the year

Many businesses are “season-specific”, and these businessmen KNOW when their profit will reach its highest peak.

For example, if you have an ice cream shop, you should take extra measures before summer begins to make sure that your refrigerator and coolers work properly, so that your service is top notch and you make a ton of profit.

This is where short-term loans come into play. Rather than taking an unnecessary long-term loan, why not take a short one and pay it off when the huge profit starts coming in?

If your products are small dollar items but sold in high volumes

If your business involves small dollar products, it is usual for you to not have large cash reserves. But, your advantage is that these products are sold more often and hence have a more reliable flow of income.

As short-term loans require payments on a frequent, regular basis, you can make great use of short-term loans.

If you do not have a big credit

Getting a long-term loan becomes very hard if you do not have a good credit score.

I have seen many people give up on their dream business just because they could not get a loan, but it is hard to have credit when your business has not fully flourished yet!

For people in such situations, short-term loans can be the perfect solution. This is because, as they are promising to pay back the money very soon, lenders are more likely to trust borrowers with small credit.

If you can show an earnings history

Short term loans depend on your future cash flow, and on the fact that you will earn enough money to pay back the loan in time.

As they do not require big credit, you will have to show them an earning history that will guarantee them your business was able to make that much of profit last year, hence you should be able to pay back the loan this year.

When should you NOT take short-term loans?

If you do not want the responsibility of making repayments yourself

To prove your genuine commitment to pay back the loan, the lender may ask you to make a personal guarantee.

This means, if your company fails to repay the debt, you will pay out of your own pocket. I suggest you consider all the odds before you sign on these conditions as it will risk your personal property too.

If you do not want to pay higher interests

One downside of short-term loans is that you will have to pay higher interest as you are not holding on to the money for a long time.

If you take a large loan for a short-term, the interest might be too high for you to pay back. Thoroughly consider this factor before making your decision!

If you did not make a cash cushion

Short term loans require regular payments, so make sure you have a cash cushion saved up! If something goes wrong and you are not able to make the estimated profit, your cash cushion will ensure that you do not fail your payment.

Otherwise, the higher interest might eventually become too high for you to cope with.

If you do not have reliable customers

Since you will be needing a reliable cash flow to take a short-term loan, it might be unwise to do so if your customers are not stable or reliable. If your business deals with people who pay up late, it is best to avoid short-term loans.

In my opinion, short-term loans are great options for businesses who do not want to take the burden of carrying a long loan. Either way, make sure you do your research before taking one!

I Need A Loan But I Have Bad Credit, Who Will Give Me A Loan?

who will give me a loan

Being an adult in the 21st century is hard, especially with the Great recession’s effect being experienced by all. If you are someone with a poor or yet non-existent credit score, you have probably asked yourself the above question already.

In all honesty, getting a personal loan when you have bad credit is quite difficult. There is no way I can sugarcoat the truth for you since it is a fact that lenders will see you as a high-risk borrower.

Sometimes, the risk might be too high for them to take and that is where the problem starts. However, don’t lose all your hopes yet.

If you are in an “I need a loan but I have bad credit” situation, there are still some ways through which you can get a loan. I know how demoralizing it can be when the big banks turn you down, but they are not the only option for you.

However, before I explain the 5 ways to get a loan when you are in an “I need a loan but I have bad credit” state, keep in mind that these are options that you should use as your last resorts.

You should always try to work towards having a good credit score, and if you are lucky enough to have one, make sure you stay disciplined enough to maintain it!

Without further ado, let’s talk about how you can get out of the depressing “I need a loan but I have bad credit” phase:

5 ways to get a loan when you have bad credit:

· Ask a friend or relative for a loan

When I was going through a bad time, my only backup was my family. I had asked my uncle to give me a loan which I promised to pay back within 5 months and he agreed. Those 5 months were the turning point in my life and I managed to make things right.

Therefore, asking a friend or family can be a valid option, as they are the people who are most empathetic and understanding towards us. However, make sure you can pay it back! Otherwise, you will end up destroying a personal relationship.

· Ask someone to co-sign a loan with you

Sometimes, the people around you might be unable to give you a loan due to lack of cash. However, if someone has a good credit score, he might be able to help you.

If you can convince that person that you will pay the installments on time, and if he trusts you enough, he can co-sign a loan with you.

This means the lender will then set the terms of the loan based on the person with good credit, and both of you will be held equally responsible for the loan. The loan will be recorded on both your credit scores.

So, if you fall behind on payments you will be severely damaging your cosigner’s credit score. Make sure you don’t do that!

· Visit Saccos

Just like banks, Saccos offer loans too. However, unlike banks, they do not do it for profit.

Saccos are owned and run by a group of similar people, such as citizens of the same neighborhood or people of the same profession. Therefore, if you can find a credit union to which you can link yourself to somehow, you might get a loan.

· Try out person-to-person lending

Otherwise known as peer-to-peer lending, this type of loans are online-based. Instead of applying to an institution, you will basically be interacting with a person directly.

The procedure is quite simple: the borrowers have to post a loan listing that consists of how much money they need and why they need it for. The lenders judge the lists based on needs and credit score and select which one they want to fund, but they might overlook your score for a genuine, good-enough cause.

· Put your home on the line

In my opinion, this should be the very last thing you could do.

By using your equity in your home, you can apply for a home equity loan. You are basically giving your home as collateral, which means they will have the right to cease your home if you fall behind on payments.