Different Options for a short term loan

Created: 2017-10-09 14:12:00

What is a short term loan?

A loan that is due to be paid off in less than a year is known as a short term loan. If a business does not qualify for a bank loan or long term loan that doesn't mean your luck is out, you may still qualify for a short term loan. Each differing from the other in terms of interest rates and repayment terms will apply.

Is a short term loan for you?

A short term loan is a fast, efficient way of gathering some extra cash quickly. Before going ahead and applying for a loan ask yourself some questions first do you need the money now? Is there another way you can fund your business? Can you afford the repayments plus interest rates? A short term loan will offer you a step in the direction of financial success.

Why consider a short term loan.

People would consider a short term loan to get some extra money for many reasons such as emergency, unexpected bills and for business purposes. You can pay them off over a short period of time (Less than a year) with options of flexibility and less APR to pay. It is known that short term loans are more affordable than any other loans out there, the interest is usually calculated by going off your chosen payback period, the longer it takes the more APR you pay. The application process is somewhat quicker and simpler with some applications only taking 15 minutes for a decision.

When it comes to finding the best option for a short term loan it is vital to check each company's terms and conditions as they will differ from the rest. Taking out a loan can help if your business needs cash right away, but what options do you have when it comes to deciding which path to take?

Friends & Family

The option of a short term loan from either family or friends is probably your best option when it comes to low interest rates. Circumstances can change at any moment and that's why this option would be the best one for flexibility. Higher communication levels, more lenient with the repayment methods and instalments. It would be beneficial for businesses and the lender to write up a form of contract to help both parties meet expectations.

Cash Kitty

If you can't decide which is the best loan to help your business with financial success? then cash kitty is the place to be. Comparing different companies will give you the best evaluated stats of each loan company. You will not have to fill any paperwork out as it is an online application form that gives you an instant decision upon completion.

Online Loan Companies:

You can find more than a handful of companies offering short term loans online. The application process for these types of loans would be the same as applying for a bank loan. Evidence of your business income sales, credit score and your profits. The rates vary and can be between 10 - 25 percent APR. Usually, there is a minimum and maximum you can borrow and a set time frame to pay them back. Another great asset to online is the endless information on how to get a short term loan.

Bank Overdraft:

Man banks provide you with an overdraft access feature on business accounts meaning more money can be drawn from the account than what's actually in sending the account into overdraft. The amount overdrawn then needs to be repaid within a year limit. This short term loan is beneficial if needed within 30 days.

Facts about short term loans:

Short term loans tend to involve a smaller amount of money borrowed out opposed to long term loans. This can be a great way to help a business make its way to financial success. They are easier to get accepted for and have a relatively smooth application process. The repayment period tends to be less than a year and can be due within a week or months but never longer than a year. Short term loans are a go to if you the borrower needs extra cash in a short period of time. People can access these types of loans through many different ways but the most popular being online. Before taking any form of loans out please make sure to check each company's terms and conditions as these will differ from one company to the other.

Warning: Late repayments can cause you serious money problems. For help, go to moneyadviceservice.org.uk