BASETTERRE, St. Kitts – WITH Fast Cash quickly becoming a household name when it comes to borrowing personal loans at the quickest possible time, could this be the biggest rival to commercial bank loans?
SKNVibes Business took time out to take a comparative look into the loan industry put forward by several lending institutions and the requirements for these loans. What was found is a long list of relevant documentation is required for a secured loan, which may and has discouraged small businesses from approaching these institutions for credit.
A small enterprise would have to deal with high interest rates set forth by the banking institutions while with Fast Cash, while seeking a short-term loan one would have to deal with a meager 2.5% with plus a 3% processing fee.
However, small businesses would have to deal with a quick turnaround period for repayment of these loans being given to them; 30 days, 90 days or 180 days.
Speaking at the recent launching ‘BiZ’ CEO of Fast Cash Michel Williams said the product is a great initiative for fledgling small enterprises that may need quick cash and may not be able to access it within the fastest possible time at the banks. But with Fast Cash’ BiZ product, they can do so within three days.
He stressed that under their agreement the principal borrower would not have to provide a detail plan as with other lending institutions would demand. Letters of request, purpose of the amounts to be borrowed, securities, certificates of good standing, cash flow projects for two years are amongst the information that should be provided when applying for a loan at the commercial lending institutions. With Fast Cash however, the borrower would be required to provide only a financial statement of the company and its official registration and compliance documents.
“What we have created is a working capital facility for short term where businesses can very quickly access the cash within three days as promised. It is an opportunity for businesses to be able to leverage locked in cash flows that they expect to come in, in a very short order to meet expenditure that does not have the patience to wait for that type of cash to come.
However with Fast Cash one just has to provide the basic information to know if they qualify for the loan and also how much they qualify for but they cannot exceed the $50 000-ceiling and they may not borrow below $10,000.
“They would have to provide a readily available financial statement certified preferably and that is the way we do it. We lend to the principal borrower of the company in their capacity.”
This may sound like a sweet deal but Williams noted that in order for one to qualify, it takes a comprehensive review of the “dynamics of the company” to know if that company would be able to repay the loan and what loan amount they would qualify for.
“It is for contactors who are sitting on contracts that need to mobilize and companies coming to the end of the month when they have to meet statutory and contractual expenditures but expecting their receivables to come probably to come in for another 30 days,” the CEO stated.
With banking institutions, the business would be given a longer repayment period on the loan to be borrowed.
It was however lamented that Fast Cash is not one that would be used for the establishment of new enterprises but for businesses which have been existing for in excess of two years.
