Cash finance is an integral part of today’s modern living. It is a universal service that found in all countries, cities, and towns. In the 20th century, cash financing approval looked into the assets that an individual owned, like land, a house, car, appliances, jewelry, and other resources. Financing was essentially collateral-based. A financing company would lend cash to the borrower provided his or her assets are pledged to secure the loan.
Today, making use of cash finance needs only a credit card. There are 21st-century financing companies that provide cash finance based on the credit standing of the individual which can be seen by looking at the credit card holder’s payment history for at least one year. Many cash financing companies today provide loans online, and even without any collateral. The only security that a loan applicant must offer is a set of information required by the financing company plus the credit card number of the individual.
There are financing companies that offer a minimum of $10,000 cash loan to a maximum of $100,000 without any collateral at all save a good credit standing based on the applicant’s credit card payment performance.
Because of the increasing competition among financing companies, cash loans are approved within 24 hours that has become an attraction for thousands of loan applicants in a particular country. Even governments offer cash financing for employees through the Social Security System, for instance. Housing and car loans are also provided by some government agencies in coordination with government-owned or private banks.
Once an applicant’s loan is approved, the cash is deposited in the bank or credit card of the applicant. A short period is provided before the loan maker makes the first payment on the loan. To be able to make a good credit standing, the borrower must be able to pay the cash financing regularly. A good credit standing with the financing company allows the loan maker to make another loan, either with the same financing company or with another company, after the loan has been fully paid.
In some instances, financing companies would require a co-maker if in the assessment of the cash finance company the risks are higher for a particular borrower. Among the information that might need a co-maker are those related to the stated income of the borrower where a lower income level might pose a higher risk than those individuals with stated higher income levels. The financing company will examine an applicant’s Income Tax Return to enable the
Company to make a precise assessment of the borrower’s income.
For high-risk cases, the cash finance company may approve the loan of individuals provided additional requirements are made like to pledge some properties that an applicant owns, such as a car, to secure the loan. The job of the credit investigator is to look into the financial accounts of the borrower to find ways how the loan payment can be assured and the risks mitigated.
Otherwise, most cash finance companies directly provide fast loans to borrowers with just a credit card and an Income Tax Return of the borrower.