Installment Loans

At PaymentCloud, we believe installment loans should be fast, easy, and convenient. With us, you’ll get:

  • Simple Application
  • Flexible Terms
  • Speedy Funding
  • Quick Approvals
  • Competitive Rates
  • Manageable Payments

I cannot recommend Wisco enough. I will never go anywhere else for my business funding. You can't go wrong with this company!

Andi GillBusiness Owner
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Don’t miss outDon’t miss out! The application with our trusted funding partner takes less than 5 minutes to complete.

What Is an Installment Loan?

An installment loan is a borrowed sum of money that is repaid over an agreed-upon schedule by means of fixed payment amounts, called – you guessed it: installments. If you’re looking to borrow money without needing to pay it back right away, installment loans are a great option.

Financing secured for our clients

$100,000,000+

Financing secured for our clients

DBusiness we’ve helped grow

10,000+

Business we’ve helped grow

Lending Experience

35 years

Lending Experience

Average funding time

24 hrs

Average funding time

How Do Installment Loans Work?

Before applying, it’s best to get an understanding of how installment loans work. The borrower fills out an application, requesting the needed amount, and provides supporting documentation. The financial institution that provides the loan then sets the terms and conditions for repayment. Typically, the bank calculates the interest rate over the life of the loan and adds that figure, along with any other fees, to the amount borrowed to get the total cost of capital. That sum is then broken down into even payments based on the number of months or weeks the loan is set for. Once the terms have been agreed upon, the loan is funded, the business owner applies the funds to its intended uses, and the repayment period begins.

Funding new path

Here’s the formula to calculate your monthly repayment:

Monthly Payment = P (r(1+r)^n) / ((1+r)^n-1)
r: Interest rate
n: The number of payments in total
p: Principal (the amount of money you’d like to borrow)

Types of Installment Loans

Unsecured vs Secured Installment Loans

An unsecured installment loan is based solely on the strength of an applicant's historical factors. From the bank’s perspective, it is a leap of faith, which naturally classifies it as a higher risk for non-payment. A secured loan will require that you provide the lender with some kind of collateral, like a vehicle or a home.

Unsecured Loans

  • Approval is based on creditworthiness
  • Debt-to-income ratio and credit history determine your rate
  • Typically has a higher rate
  • Defaulting on the loan can hurt your credit score

Secured Loans

  • Easy to be approved for
  • The value of your collateral will determine your rate
  • Typically has a lower rate
  • Defaulting on the loan can have your collateral seized and hurt your credit score

Installment Loan Requirements

Your bank considers many factors when you apply for an installment loan:

income

Income

The applicant’s income is steady and high enough to cover the repayment terms.

credit score

Credit score

Personal and business credit scores show previous financial activity and gives a look at what the borrower’s financial health is.

Bankruptcy history

Bankruptcy history

Lenders are looking for applicants who don’t have a history of defaulting on a loan or filing for bankruptcy.

Financial obligations

Financial obligations

The applicant doesn’t have other obligations that may prevent them from repaying the loan.

Cosigners or collateral

Cosigners or collateral

Any other person or collateral that can help the applicant guarantee repayment.

Wisco’s Recently Funded Businesses

$40K

Working Capital

Transportation Company

$175K

Bridge Loan

Manufacturer

$15K

Merchant Cash Advance

Bar Restaurant

$70K

Line of Credit

PPE Wholesale

Benefits of an Installment Loan

Installment loans are a fantastic way to access capital to help bring about financial well-being. Whether it is to finance purchases for your business, consolidate debt, pay for a vacation, or purchase a home, installment loans are an important mechanism for facilitating the overall economy and fulfilling the American dream.

PaymentCloud has supported thousands of businesses throughout the United States in securing business funding. Our business loan partners are experts in choosing the right funding solution for any type of business. If you’re looking to get in touch with a representative, it’s as easy as applying!

Get Approved Within 24 hours

Secure business funding as fast as tomorrow!

Installment Loan FAQs

  • How long do installment loans stay on a credit report?

    Installment loans can stay on one’s credit report for up to seven years. How it affects your business credit score will depend on the outcome of the agreement.

  • How many installment loans can you have?

    Theoretically, as many as you could feasibly handle based on your income and other financial obligations. Though there are lenders out there who don’t have a limit on the number of installment loans one could have, most lenders place the cap at 2 per borrower. In an underwriter’s eyes, more than 2 installment loans can indicate irresponsible financial behavior.

  • Can I get an installment loan with bad credit?

    Absolutely! All loans are funded on the strength of the application package. While credit is an important part of the application process, it is not the only factor that most think it is. To make up for less than ideal credit, a number of strategies can be applied to strengthen the application package, such as the addition of a co-borrower, a form of collateral, or even a higher interest rate.

  • Are there no credit check installment loans?

    No. Although credit is not an end-all-be-all deal breaker for installment loans, it is an important enough factor that it always needs to be considered for underwriting in determining the likelihood of repayment.

  • What is the difference between a payday loan and an installment loan?

    A payday loan is a short-term, high-interest rate loan that is secured by the borrower's upcoming paycheck. Because the paycheck is being used as collateral, these loans typically are for less than $1,000 and are paid off in full by the upcoming payday. These loans are essentially a fee for getting access to your future money now, whereas an installment loan is typically for a greater amount of money, with lower interest rates, that is paid off over a period of time with multiple payments, versus the one-time payback on the next paycheck.

  • Is a small business loan an installment loan?

    Yes - SBA loans and small business loans provided by financial institutions are installment loans with set terms to help small businesses thrive.

  • What happens if you pay off an installment loan early?

    You get the satisfaction of completing the agreement, the financial relief of no longer having to make monthly payments, the ability to save on interest, and an increase in your credit score! Most installment loans do not have a charge for paying off the loan early, however always read the fine print of your contract, as there are instances where an early payoff fee or penalty is part of the terms and conditions of some loans.

  • Is a credit card an installment loan?

    No, a credit card is a revolving line of credit. This differs substantially from an installment loan mostly due to the flexibility of these revolving lines. For example, credit cards have no set repayment schedule whereas an installment loan is based on a fixed timeframe. Additionally, the amount borrowed on a credit card is constantly available depending on the revolving utilization, whereas an installment loan is a fixed amount borrowed. Lastly, credit cards are potentially subject to variable interest rates, and installment loan rates, like their repayment terms and amounts, are fixed.

  • Is an auto loan an installment loan?

    Yes, an auto loan is an installment loan secured by the value of the automobile you are purchasing.

  • Do installment loans help your credit?

    Absolutely! While there will be a negligible dip in your credit score once you first open the installment loan, the history of consistent, on-time payments will substantially improve one’s credit score.