Even Staff

2016-06-29

How to Find a Business or Personal Emergency Loan

We all have to deal with the unexpected, but an unexpected financial event is especially stressful. If you have a financial emergency, you may need to take out a loan. That emergency may be due to a personal issue or a business challenge. If you encounter some difficulty securing a traditional loan from a bank or credit union, you may need to look to other options; consider a firm that offers alternative lending.

Common Financial Problems

Here are some financial emergencies that may require you to borrow money:

1. Car repairs

Nothing is more frustrating than sitting on the side of the road with a car problem. It's a huge interruption of your normal schedule and can prevent you from getting to and from work. Worse, car repairs aren't cheap. In most cases, you don't know the cost of the repair until the car is at the shop. That makes planning to pay for a repair even more difficult.

2. Weddings

A wedding is a big life event and according to Knot's 2014 Real Weddings survey, the average wedding spend is now $31,213. You may start planning your wedding and realize that the cost will be higher than you expected. Planning a wedding is stressful, because your new spouse, friends and family members may all have different expectations. If the date is set and friends and family have made travel arrangements, it's hard to change plans.

3. Refinancing credit card balances

Juggling personal finances can be a tricky game. If you have credit cards, you need to carefully track the payment dates and amounts due. If you're not able to make specific payments on time, you'll incur big penalties and if you can't pay them at all, you'll need to refinance. On top of the financing, making late payments will negatively impact your credit rating.

4. Business costs

If you own a business, you might invest your personal assets, including your savings, in the company. If the company sales don't generate cash quickly enough, you may not be able to take money out of the business to pay yourself. Keep in mind that you need to maintain a good personal credit rating and the credit rating for your business. All of these situations require an emergency loan, but that's not an option for many people. This is where alternative lending comes in.

Alternative Lending: Personal Loans

Personal loans are different from a traditional loan agreement with a bank or credit union. If you're facing a personal financial emergency, consider the following types of alternative loans:

Unsecured loan

An unsecured loan is simply a personal promise that you'll pay the loan back. This loan does not include collateral. When you take out a car loan, the car itself serves as collateral that you'll pay the loan back. The same rule applies with a home loan -- your house is the collateral. Unsecured loans are based on your monthly income. The lender is making a judgment that you have enough money to pay back the loan.

Secured loan

You can also borrow money by pledging an asset to get a loan. Think about any items you own that have value, such as a car, fine jewelry or rare artwork. Stock and bonds can serve as collateral, too.

Alternative Lending: Business Loans

Company finances can also have a big impact on the personal finances of the business owner because many business owners invest their personal cash into their business. If you run into personal finance issues, you might not have your own savings to help you. If you're a business owner, your company profit is likely your primary source of income. If a business challenge prevents you from taking profits out of the business, it can put you in a bind. Look into these alternative loan options:

Factoring

Businesses often have a cash shortage when customers owe them money but haven't paid their invoices yet. In many cases, these unpaid invoices belong to trusted customers who you know will eventually pay. Factoring means that you borrow money using these receivables (unpaid invoices) as collateral. The company that loans you the money collects the receivables from your clients.

Product presales

If you have an established base of customers, you have some other options. You may be able to presell products to clients before you produce the product or service. The customer pays you for a product that they receive in the future. As with any type of loan, you do have an obligation. In this case, it's to provide the product or service in the future.

Friends and family

While it can be a tricky situation, you certainly have the choice of approaching a friend or family member for an emergency loan. It might be a short-term loan that you can pay back quickly. However, if you have trouble repaying the loan, it can damage a relationship. To make the loan more formal, consider pledging company assets (vehicles, equipment) as collateral for the loan. Finding yourself in need of an emergency loan is stressful, but it's important to think wisely about your best options. If you can't find a loan through a traditional bank or credit union, consider alternative lending options.

Disclaimer: The material provided on this site is not intended to provide legal, investment, or financial advice or to indicate the suitability of any Even Financial product or service to your unique circumstances. For specific advice about your unique circumstances, you may wish to consult a qualified professional. Any information or statistical data sourced by Even Financial through hyperlinks, from third-party websites, are provided for informational purposes only. While Even Financial finds these sources to be accurate, it does not endorse or guarantee any third-party content

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"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

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"... generating some of the highest approval rates and conversion rates among our online acquisition partners. The transparency and focus on data have allowed us to drive consistent growth and success each month. "

"Even enabled MoneyLion to... streamline our user experience, serve a broader set of our customers, and improve key monetization metrics... driving 4x+ growth since launch."

"... a streamlined consumer experience, helping millennials with no collateral, budget, or saved money. Even’s impressive matching algorithms simplify the process of finding the best personal loans to meet your needs."

"... a truly modern and easy to use platform for the financial services marketing world. They make it easy to develop consumer friendly, innovative products in a space dominated by legacy platforms."

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Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
EVEN
Even Financial Partners with Figure to Add Blockchain-Enabled Personal Loan Products to its Financial Services Marketplace
New York, New York – June 2, 2021 – Even Financial (“Even”), the leading search, comparison, and recommendation engine for financial services, has announced a new partnership with Figure to launch the company’s personal loan products on the Even platform. Leveraging machine learning and advanced data science, Even solves a significant pain point in financial services acquisition by seamlessly bridging financial institutions and channel partners via its industry-leading API and embeddable solutions.   Figure is a fintech company that leverages AI, blockchain, and analytics to deliver innovative consumer financial products with speed and ease. Figure has dramatically decreased the time it takes for consumers to secure loans and has significantly reduced the costs associated with loan origination, servicing, financing, and capital markets execution. The company was founded in 2018 to unlock new access points for consumer credit products that can transform the financial lives of its customers. In addition to personal loans, it provides mortgage refinancing and home equity release solutions, including home equity lines of credit, home improvement loans, and home buy-lease back offerings for retirement.   Figure is an exciting, advanced provider that is driving transformational change in consumer credit,” said Phill Rosen, Founder and CEO of Even Financial. “We’re thrilled to welcome them to Even’s unparalleled network of loan products.”   Shwetabh Gautam, Director of Financial Institution Partnerships at Even added: “We continue to see a strong resurgence in the demand for lending products across the millions of consumers Even surfaces offers for each month. The addition of cutting-edge partners like Figure strengthens our ability to connect consumers with the loans best suited for their unique needs.”   Even offers the largest network of premium, API-connected loan providers. Enterprises and established publishers such as MoneyLion and TransUnion partner with Even to power financial product offers for loans and other financial services including insurance, credit cards, and savings. Within loans, Even continues to expand its vast offering, recently launching products for secured lending, line of credit, and auto refinancing.   The launch of Figure on the Even platform enables consumers to get matched with personal loans of up to $50,000. Figure offers a 100% online application that allows applicants to apply and see their rate in minutes and access funding in as few as two days.   “Phill and the team at Even share our vision of leveraging blockchain technology to make financial services simpler, faster, and personalized. Through the Even platform, we will be able to reach a broader and more diverse set of consumers seeking our innovative credit products,” said Brad Simmons, CMO of Figure.   Even has continued its rapid growth trajectory in 2021, facilitating over $3 billion in consumer credit issued through its API and expanding its platform to over 400 partners. Earlier this year, Even was named one of “America’s Best Startup Employers'' by Forbes for 2021 and placed in the Top 50 of the 2020 Deloitte Technology Fast 500, which recognizes the fastest growing tech companies in the world.    About Even Financial Founded in 2014, Even Financial is a B2B fintech company that is transforming the way financial institutions find and connect with consumers. As the leading search, comparison, and recommendation engine for financial services, Even seamlessly bridges financial institutions (including American Express, Goldman Sachs, and SoFi) and channel partners (such as MoneyLion and TransUnion) via its simple yet robust API and embeddable solutions. Even turns any consumer touchpoint into a comprehensive financial services marketplace with full compliance and security at scale. The company is backed by leading financial services firms and VCs, including American Express Ventures, Canaan Partners, Citi Ventures, Fidelity’s F-Prime Capital, Greatpoint Ventures, Goldman Sachs, LendingClub, and MassMutual Ventures. Learn more at www.evenfinancial.com.  About Figure Figure is transforming the trillion dollar financial services industry using blockchain technology. In three short years, Figure has unveiled a series of fintech firsts using blockchain for loan origination, equity management, private fund services, banking, and payments sectors – bringing speed, efficiency, and savings to both consumers and institutions. The company was founded in 2018 by serial technology entrepreneur Mike Cagney, who also founded SoFi and built the company into a multi-billion dollar business under his leadership as CEO. Learn more at www.figure.com.   Media Contact media@evenfinancial.com
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Now, financial advisors and other businesses will have a way to leverage Even’s platform for their clients. ‘Financial Products for Salesforce’ - Powered by Even, a plug-and-play app available on the Salesforce AppExchange, matches consumers with real-time, personalized financial product offers.   Click below to read more at PYMNTS.com.
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