If you have ever been in need of cash to take care of your business or an item you’re importing, chances are that you have considered taking a long-term loan. These loans are available to both private individuals and small and large businesses alike and provide a source of funding for considerable purchases or business expenses that the borrower must pay off over a period of years rather than weeks or months.
Just in case you’re thinking of taking a long-term loan or get a long-term financing from your financial institution, weigh in both the advantages and disadvantages before signing on that dotted line.
Why is a long-term loan or financing important?
- Purchasing Power: Long term loans spans a greater period of time than short-term loans. This means you can borrow a great amount which gives you a far greater purchasing power than borrowing a small amount. If your business or as an individual that needs cash quickly to stay afloat, long-term loans are really beneficial.
- Lower repayments: Long-term financing loans also provides applicants with lower payments than short-term financing for the same amount. Long terms payment periods allow applicants to incorporate their payments into their budget easy.
- Build Credit: Longer repayments periods have very structured payments processes designed to meet the needs of borrowers. Making regular payments on a long term loan allows clients to build their credit worthiness. For a business owner building a business’ credit it is important to rely less on personal credit for future debt financing.
Long-term loans or repayment periods can be very advantageous for both an individual and a business. After the maturity date and when full ownership is assumed, the former debtor who is now the owner can use the asset and the positive credit they have already developed paying for it for future borrowing.
Ngao Credit Limited has extended its repayment period from 12 to 20 months for all its products including import financing for vehicles, log book among others.
By extending the payment period, Ngao Credit us helping minimize time spent saving for investments so that you’re able to realize potential earnings sooner to help offset the cost. The company help clients to raise capital and pay for their products helping them get access to these products within the shortest time possible.
Want to know more about our long-term repayment period and how it can help your business ease cash flow? Visit their website www.ngaocredit.com for more details.