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Advantage: Speed
  • A bank loan can be secured quickly; in less than an hour, a qualified borrower can complete a bank loan transaction.
Advantage: Uses
  • A bank loan can be used in a number of ways; money can be borrowed for many large-ticke items, such as furniture, vehicles or home renovations.
Disadvantage: Fees
  • Some loans carry a prepayment penalty, preventing the borrower from paying the note off early without incurring extra cost.
Disadvantage: Limitations
  • There are a number of limitations on the transaction. Good credit is often required to borrow money, and there are stipulations on how the money can be used.
Disadvantage: Cash Flow
  • Borrowing too much money can lead to decreased cash flow and payments can even overtake income in some cases; this is why many loan payments are limited to a certain percentage of a borrower's income
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15y ago

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