A lot of people turn to non-traditional loans, like pawn shop loans or payday loans, when an emergency arises. The transmission goes out on their car and they don’t have the cash to fix it. Or they get sick and lose time from work but don’t have sick days to cover them. Getting a non-traditional loan can help them take care of these short-term and urgent needs. Otherwise, they would have to wait weeks to get the money from a bank — if they could even qualify for a bank loan, that is.
But non-traditional loans are useful for a lot more than just financial emergencies. You can use quick cash loans strategically to reach financial goals or to do something else you’ve been wanting to do for a long time. Here are just a few ideas:
Start Your Own Business
You aren’t going to be able to get enough to start the next Wal-Mart, but you can get enough to start a small shop or online business. It all depends on how much you need for your business and what kind of loan you pursue. For example, you might be able to get only a couple hundred dollars from a pawn loan, but you might get $10,000 or more from a car title loan. A couple hundred dollars might be enough to start a blog that makes money from advertising, but it would be a drop in the bucket if you were trying to start a car dealership or a bookstore, for example.
Buy a House
No, you aren’t going to get enough to buy the whole house, but you can certainly get enough to cover the deposit or the closing costs. Maybe you have saved for your down payment, but you found a house that’s just outside of your budget, upping your down payment a bit. Or maybe you counted on a loan that would cover more, and now you need more of a down payment than you thought you would. Getting a non-traditional loan can help you cover the cost without putting another hit on your credit. Or the loan can pay your closing costs, which hit many first-time home buyers by surprise.
Buy a Car
A car is the second-largest purchase that most people make, outside of a house. If you don’t have good credit, you may struggle to get affordable financing to buy a new car. Instead, you can get a non-traditional loan to buy a quality, used car from an individual or a small car lot. Or you can use the non-traditional loan to come up with a small down payment on a newer car so that you are more likely to get financing. Some lenders won’t give you the financing unless you have a thousand or three to put down first. A non-traditional loan can give you that.
Take Advantage of an Investment Opportunity
You don’t have to be a high roller to be an investor. You can start with a few hundred or even a few thousand dollars and go from there. Warren Buffet didn’t start out as THE Warren Buffet. So if you hear about a good investment opportunity that doesn’t cost the Big Bucks, you can get a non-traditional loan to help you get a piece of the action. Maybe you invest in your friend’s new business for a cut of the profits, or maybe you hear about an IPO and you are able to get a share or two. Your non-traditional loan can help you take advantage of the sudden opportunity, and you might be able to get a big return on your investment.
While non-traditional loans offer you fast cash that can be used for a financial emergency, they can be used for a lot more of your financial needs. You can use them strategically to meet many of your financial goals, ranging from a “small time” purchase like a new car to something huge like your first house or even your own business. The key is to find a good lender and to get the best terms you can. Then weigh the cost of interest and other fees against the returns or the value it will give you.