It is a known fact that zero-rate loans are provided to large business organizations. But how are they meant to help us? That is an important question, as they may very well create another problem.
Advantages of zero rates loans
These zero-rate loans are meant to help the small and medium sized businesses expand and thrive. There are a number of special schemes and advantages offered by the banks. These advantages are as follows:
- Grant money. Banks give out a certain amount of grant money every year on a general basis. You will be able to avail the loan in the form of grant money, which you have to pay back at a reduced rate of interest. It is like a second mortgage.
- Interest rates. This also comes with a discount rate. The interest rate you pay is lower than the general rate that is available.
- Credit card facilities. There are a number of credit cards offered by the banks. You can also avail of these facilities.
- Online application. You just have to fill up an online application form and the loan amount is given to you. However, it is advisable to go for the banks and not the payday lenders, as there are some discrepancies between the two.
As a new business owner, your finances are on a shaky ground. You need urgent financial assistance, but finding it may take some time.
Zero-rate loans offer you a good option
Your new company is something completely new and fresh. This will bring in a lot of profits and extra revenue for you. The bank credit card facility helps you in setting up the new business.
You can use the credit card for purchasing office equipment, furniture, computers, phone bills, supplies, office stationery, and other things required for the company. You can also avail funds for meeting your travel expenses and meeting expenses for some seminars. You can even avail fund for paying your employees’ salaries.
No credit check loan
If you are not good with the finances and don’t think you can manage the funds, then zero-rate loans are the right option for you. You have to be a resident of UK to avail this facility. The loan is granted without any kind of credit check.
No co-signers are required in the case of this type of loans. No collateral requirements are required for this facility. You are free to borrow as much as you can. And once you finish the entire borrowed amount, you will have to pay back the loan amount to the bank.
The interest rates you get are different depending on the lender and the loans. You can also use the cash loan facility and repay the loan in installments. Before choosing the best option, you must thoroughly analyze the financial condition of your company.