A long-term payday loan may mean anything to the consumer, but because of the way some pay-day loans are structured, a landlord may not have to repay the entire amount at once, but rather in four equal quarterly payments spaced out over a maximum of six months.
This is effective for two reasons. The first quarterly instalment can be anticipated by month 3, giving landlords time to put money aside for this first repayment. From this point on, the customer’s major concern is ensuring that they can afford the repayment terms without blowing their budget in unnecessary ways.
Currently they have no control over how clients choose to manage their money or how they choose to handle their loan repayments. Nonetheless, some lenders are very generous with the pay day loan offers that they make to their customers because most pay day loans must be repaid within six weeks. Six months is more than enough time for the customer to make repayments.
The advantage of the amount of time they give landlords is that they can gather the money they need to cover their rental expenses in between new renters for the next three months, as well as the money they’ll need to buy replacement furniture if they get damaged such as a coffee table.
These seemingly insignificant details have a significant impact on landlords. Without the proper financing or funding, people may have a very difficult time getting new furniture or meeting the costs of necessities that are related to their tenants feeling they are home from home.