Is lending up in recent months? That is an easy one. Most people agree the financial freeze is thawing. Let me throw some facts your way. Small Business SBA lending is up this fiscal year (September 2009 to October 2010). As of March, the number of 7(a) loans (the workhorse loan program of the SBA) are up 48% and the dollar amount rose 116%. The average weekly average of loans has climbed 86% higher compared with the last fiscal year.

So why is this happening and is there any chance of it increasing even more? Absolutely. This is based upon how banks make money.

How banks make money. Putting aside checking account fees, ATM access fees, and over- draft costs, (which lately have been a staple of bank profit), banks were put on this earth to make money by making loans. We all learned how the system works in high school. After a bank satisfies the reserve requirements of the Federal Reserve (say between 10 and 15% of the money retained for the cash needs of withdrawing customers) they loan out money at higher interest rates than they are paying their depositors. Mathematically, a very simple formula. Hypothetically, pay a depositor 3% and loan out at 8%.

But it is even better. When banks are loaning, they literally receive money out of thin air. Much like the self-perpetuating machines we all dreamed of in lab class that can produce energy out of nothing. For this reason, there is a great incentive for banks to start loaning again.

Here is a simple example. Joe deposits $100 in ABC bank. The bank retains $10 as a Federal reserve requirement. It then loans to Kathy $90. She keeps it in her account. The bank then loans to Fred $81, after holding back $9 in reserve. Overnight, there is now a total of $271 in accounts when there was only $100 to begin with. You can imagine how much money the bank can loan if they keep churning these deposits. They continue to make interest and get this fresh influx of capital. It is like a legalized Ponzi scheme. Everything works just fine as long as people are making deposits, the loans continue, and people are paying back those loans. But if the loans become toxic and are not paid back, together with people now demanding all their money from the deposits, the bank will collapse like a cheap house of cards. That is exactly what happened in the recent financial meltdown.

But here is the good news. Since the economy is starting to recover, we know for certain banks will start loaning again–they have to do make a profit.

Are loans are available now? They sure are. There are over 117 licensed SBA lenders who specialize in quick and easy small $5,000 to $25,000 loans. The paperwork is abbreviated and the funding process is accelerated to approximately 14 days. Because these loans are monitored by the Federal government, they are currently at $60 per month, principal and interest, for every $5,000 borrowed. When you are speaking to your banker, mention the SBA Community Express Loan Program. Don’t fall off your collective chairs, but there are lenders actually entertaining these loans. Good luck. It can only get better.

This loan will allow you to borrow money without collateral. Moreover, it is possible to get this loan without even leaving the house. By transacting the loan online, you can enjoy a hassle-free way to get your money. And dealing with bank and lending companies online is safe. Most banks have security software in place to protect the confidentiality of their borrowers.

You can apply at home or within the four corners of your office. It does not matter where you are because as long as you have an internet connection you can transact entirely online . Most banks and lending companies have expert representatives who are more than willing to help you figure out how application process for unsecured cash loans works. These representatives can speed up the process of getting a loan.

Without a doubt, unsecured cash loans are a helpful way for you to deal with immediate financial problems.  No matter if you are in need of cash because of a medical emergency or you need to pay a debt that is fast coming due, getting unsecured cash loans will help you to get out of the mess. Just submit your application online, wait a few hours or days to get your loan approved without any worries. No need to fret about your credit history or the fact that you don’t have something that will serve as collateral. With unsecured cash loans, you can get the loan no matter who you are.

Because of the high demand from borrowers, many lenders offer this type of option nowadays. These loans are often large enough to handle financial needs like home repair, medical emergencies, etc. Without any collateral to serve as loan security, this loan has been the saving grace of many.

Another good thing about unsecured cash loans is that they are available even among people with bad credit. So if you think that you are not a good candidate for getting a loan, considering your credit history, you may be surprised.  Unsecured cash loans may be viable options for you.

Points To Ponder:

Getting unsecured cash loans should not be undertaken as quickly as picking candy from a store; care must be considered. Do not consider only one lending institution without looking into a few others, as well. It will help if you can consider what other people have to say about the bank. A community bank with ties to the local area may be a familiar option. Doing your homework beforehand is an important step in the process of looking for the best unsecured cash loans in the market. Now that the internet has made lending democratic, completing the process online is the best option for many people.

Advantages of Unsecured Cash Loans:

Collateral is totally eliminated in this process, that’s why these are called “unsecured” cash loans. The process of getting one is relatively simple. An applicant has to accomplish the online application form. By the time the required information is submitted, it will be processed by the bank for approval. In the a span of few minutes, the lenders will either confirm or deny the application. If approved, the sum of money will be transferred into the borrower’s checking account.

The best thing about unsecured cash loans is the fact that there is no need to deal face-to-face with with bank employees who have access to your personal information when you are trying to get a loan. It is even possible than an applicant can be granted with a loan without a good credit history.

As good as they get, please understand that unsecured cash loans are not perfect. Most of the times, these loans come with high interest rates, since this is the way for the bank and lending companies to guarantee their protection just in case a borrower would default on the payment. As with any type of loan product, the key is to be a responsible, yet informed, borrower.

The Pros of Unsecured cash loans

The primary advantage of this kind of loan over the rest is its lower risk. If you default with secured loans, such as mortgage or vehicle loans,the probable likelihood is asset repossession. Another advantage is the short term borrowing ability that will give borrowers the chance to return the money without dealing with penalties. Also, applicants can enjoy fast and easy application processes, compared with secured loans. The lesser amount of paperwork assures that you get unsecured cash loans in a more timely manner. Hence, making this a popular option for those folks who want to get fast financial assistance.

The Cons of Unsecured cash loans

Like with anything else, unsecured cash loans also come with disadvantages that you must know about. For one, there is a higher decline rate for people applying for this type of loan. Why? This is simply because the banks do not like to risk their money on a chancy borrower. There is also a shorter repayment obligation. Since there is a lesser period of time given to repay the debt, it is likely that the borrower won’t enjoy the borrowed amount for too long. Often there is a lower borrowing limit because the loan is considered as high risk. It is unlikely  to get a large amount  from unsecured cash loans. For this reason, this is not a good option if you need substantial amounts of cash from your loan.

How will you know if you have a good credit? Typically, those with a credit score above 700 are considered to have great credit, based on the FICO credit score range.

Unsecured cash loans are very popular because they can be processed quickly and often at favorable terms. These are usually  paid off quickly but there is no need to worry about pledging assets to the lender.

Unsecured cash loans are very helpful for people who need quick cash to deal with untimely financial needs.  There is a limitation on the amount that can be borrowed. You cannot expect to enjoy a Caribbean vacation from the money you’ll get from the loan. Expect that the sum of cash you will receive will be modest, but  enough to deal with abrupt financial problems like medical expenses, house repairs, tuition payments, and more.

If you are confident that this is a good fit for you and your circumstances, you will be surprised by how many banks offer unsecured cash loans. There are lots of options that you can take advantage of, ensuring you of the big chances you have success in getting your loans approved. In many instances, you can even transact online so you do not have to leave your house but still get the loan that you need.

There are many kinds of unsecured cash loans but some of the most common are payday loans and title loans. These two can be taken out by people who either have steady income or own a vehicle outright. The lending periods are usually short, but can be extended every week. But let it be known that since these loans are usually made to people in desperate, needy situations, the interest rates are excessively high and there are usually additional fees tacked on to the back of the loan. If you find yourself considering a payday loan, you may be in a situation that requires some serious life-support, not high-rate debt.

A borrower’s income is the deciding factor in determining how much of a high-interest loan he or she can take on. Most lending agencies will allow applicants to borrow 40% of the total monthly income. The loans are paid after or during payday. Sometimes, lenders will ask borrowers for a check that is post-dated as a means of ensuring repayment.

There are other types of unsecured cash loans that may prove to be more viable options. Starting with your own bank, ask a representative to help you find a loan that will match your needs. Although the process of searching for a good loan is not always quick and simple, doing your homework now will pay dividends in the end.

The Different Kinds Of Unsecured cash loans:

1. Personal Loans- These kinds of unsecured cash loans can be used for any reason that the borrower may think of. While it is common for this kind of loan to be available as secured loan, this is not always the case. In some cases wherein a person’s credit score is good, unsecured loan might be given. But since it is an unsecured loan, do not expect to get a very high amount of cash as loan unless you have excellent credit.
2. Payday loans- These are the kinds of loans given in between paydays. Since this loan is only for a short period of time, most lenders would grant this fast. Most of the time, it takes only hours before you can get the result of your loan application.The interest rates can be astronomically high, and there are usually additional fees. This is rarely a good option.
3. Others- There are other kinds of unsecured cash loans. Just as long as you are in good credit standing then you should be a good candidate. There are even times when auto loans are granted to people without any security. Other times, student loans and home improvement loans are given as unsecured loans too.

Now that you know some of the unsecured cash loans options available, it is wise to shop around for the best loan which will fit your particular needs.

The Misconceptions Surrounding Unsecured cash loans:

Despite the fact that unsecured cash loans are the best resource for people who need fast cash, it is unfortunate that there are so many misconceptions surrounding this loan option. The most popular is the belief that this loan is only intended for people who enjoy good credit. While it is true that folks with good credit can get their loans approved faster than those with bad credit history, this does not mean that unsecured cash loans are only intended for those with stellar credit. Anyone can get this loan, even possibly those who are at the brink of bankruptcy.

Another misconception is the belief that unsecured cash loans are hard to find. While there are banks that would focus more on secured loan, most of these banks also give unsecured loans to borrowers too. The best way to know more about the services of the lending institution you are applying to is to ask their representatives about your options. Do not be intimidated out of financial embarrassment;  bank staff routinely see varied types of monetary situation and were trained  to support people like you.

Further, some borrowers think that unsecured cash loans only give small amount of money as the principle loan. This is not true. There are even some banks that provide unsecured cash loans for auto loans or school tuition fee loans. Again, we advise you to ask around for proper information about your options. Do not believe these misconceptions; know the truth by asking.

First a little history. At a town hall meeting in New Hampshire on February 14, 2010, Obama first proposed using 30 billion of the remaining TARP monies, including monies already repaid by big banks, to loan directly to smaller community banks who in turn, are you ready for this, would loan to us. Nice try. They never got out of the gate. Congress reacted negatively, comparing this to a perpetual TARP piggy bank where big banks would return over and over to the feeding trough for more cheap giveaways. Even worse, the recipient community banks did not want the stigma of receiving monies tied to a Wall Street bailout. This same idea was placed before us like a small business banquet in the President’s State of the Union address, but still no one was taking it seriously in the House or Senate.

Oh well, time to re-tool the proposal. And that is exactly what the Treasury Department did, in its new TARP free re-do legislation. Enter new legislation proposed by Obama on May 13, 2010 under HR 5302, known as the State Small Business Credit Initiatives Act of 2010. Here is how it works in a nutshell.

Instead of using TARP monies, there will be fresh Federal funding paid to State redevelopment agencies (great—more money to government agencies to waste). Those states will be empowered to loan money to insured depository banks and credit unions (in other words, the typical community bank on main street) at low interest rates, who will then loan the money to small businesses.

In principle, it is a good idea. In the next article, I will describe the details of the program. But while we are waiting for Congress to entertain just one creative thought, let me tell you about a small business loan program that is working now and actually making funds available. It is the SBA Community Express Loan Program. This gives unsecured small business loans between $5,000 and $25,000 with very little paperwork, answers typically in two days, interest rates presently at 7.75%, funding and two weeks, and monies wired directly to your business account. There are still lenders participating in this program. So the meantime, at least we have a source of ready capital. Good luck.