In simple words Money Lending enables someone to borrow something in terms of business and finance, lending often occurs in the context of taking out a loan. A lender gives a loan in terms of an entity, which is then expected to repay its debt. You will find someone good at money lending in tanjong pagar for sure.

It’s a broad term that encapsulates many different kinds of transactions consisting of both pros and cons.

TYPES OF LENDING

Money Lending can be categorized in the following:

• Personal/ consumer lending and
• Business lending.

Personal money borrowing is done to meet personal purposes for instance home loan, education loan, pay for home renovations or to plan a dream wedding.

While on the other hand Business lending is a loan specifically for business purposes which includes bank loans, asset-based financing, microloans, business cash advances, and cash flow loans.

PROS OF PERSONAL LOAN

Personal loans can benefit the borrower in different ways, some of which a mentioned below –

• Flexibility and versatility

Some types of loans can only be used for a particular purpose. For example, if you take out a car loan, the funds can only be used to purchase a vehicle. It can be used for many purposes, from centralizing to paying off medical bills.

If you want to fund a major investment but don’t want to be latched into how you use the money, a personal loan can be a good alternative.

• Low-interest rates and higher borrowing limits

Personal loan has lower interest rates than credit cards.

Consumers with excellent credit history can equip for personal loan rates in the range of 6-8 percent.

Other pros of personal loans include- no collateral requirement for unsecured personal loans and easy management.

PROS OF BUSINESS LOAN

• Cash flow boost

One of the top cash flow crises for small business owners is jagged revenue streams. A business/commercial loan provides the cash flow that you need to invest in new equipment, meet payroll, or afford other business expenses.

• Maintain Ownership

In the short term, selling shares in your company to raise money may seem economical compared to a commercial business loan. However, this funding method carries a different kind of expense including the right to control the company that you have worked so hard to build.  So, opting for a loan is better than selling your equity.

CONCLUSION

Money lending may or may not be the right option for you, the deciding factor is to make sure you have reviewed all the options available to you before making a decision.

A basic knowledge of the pros and cons of money loans, traditional loans , and cash transactions can help direct you in identifying the right investment choice.