Short term loans are a source of secured funding and a type of financing in which the debtor requires an assurance that the loan will be repaid within the agreed period, which is shorter than a year.
Cash Kitty will use assets, supplies or something valuable that the client owns to make sure that the debt will be repaid. If the client fails to repay within the agreed period, Cash Kitty will be forced to sell those valuables in order to get the money back. The real value of these assets must be greater than the loan in order to prevent loss because their value can change after a certain period of time. Inventories, furniture, stocks are also considered assets and they can be used in this process too.
Cash loans are a great option when you have a plan in advance on where and how to invest the money that you will take from the bank, and want to avoid additional documents, or costs related to loan approval. Unlike other loans, short term loans do not require to attach documents that justify the purpose of the use of funds - invoices from the goods you purchased.
Choosing between short-term or long-term loan is mainly an individual thing, and this decision depends on how much your household budget can handle.
And there are no universal guidelines - short term loans are usually used when clients need small amounts of money and they want to repay it quickly. Of course, the good side of short term loans is that the client will pay a smaller amount of total interest.
Cash Kitty is the experts when it comes to offering short term loans to clients. Of course, the final decision will depend on you. Make sure you choose a reputable place that will satisfy your needs.