Posts

Showing posts with the label Short term loan

Difference between Write off and Waiver of Loans

  Loan write-off and Loan waivers are two tools for dealing with bad loans. Many people are unaware of the differences between these financial terms. Though both loan write-offs and waivers seem similar, there are fundamental differences between them. Take the case of an example. Your friend borrows Rs.1 lakh from you while moving away from town to another location, promising to repay you within a month. You wait for a few months and still get no reply from him.   Thus, you have no way of getting your money back unless he returns to your city, which is far-fetched and next to an impossible event. So, what you do is write off the loan while still hoping to regain the money after some time. Suppose after a few months, the same friend returns to your city and contacts you. He may apprise you of his poor financial condition and express his inability to repay the loan. He may beg you to forgive him in his dismal condition. Now, you have the chance to waive off the loan. So, you will deliber

Short-term Loans vs. Long-term Loans: Make A Right Decision

Image
  Maintaining a good cash flow may be difficult between invoices, recurring costs, and personnel. The bottom line is that a poor cash flow may have a significant impact on your clients. The distinction between short-term loans and long-term loans should be kept in mind while establishing a cash flow plan. There are several sources of accessible finance, each of which is important under different circumstances. Making strong cash flow requires combining money with the correct sources. It's critical first to assess your requirements and then match financing choices to those demands. The amount of money you borrow in a loan and the interest rate are determined by the length of time you want to borrow it. The benefits of long-term and short-term finance may be judged in terms of how well they adapt to varied needs. Below is the enumeration of some of the important differences between short-term loans and long-term loans. The total amount of the loan:  Short-term loans are often used