For most people, no matter how robust their financial plans are there will come a time that they will encounter some cash flow issues requiring them to produce immediate funding. Good thing there are loans that are easier to get and these type of loans falls under short-term loan category.
Short-term loans offer quick funding with less stringent requirements. Processing time for short-term loans can be between one day to around 5 business days. Short-term loan payment terms ranges from one month to 5 years.
Payday Loans
One of the easiest loans to obtain is the payday loan. As the name suggests, this type of short-term loan will only require some pay slips. There are many lenders offering this type of loan with the only drawback that the borrower must pay the entire loan including interest when payday arrives.
Merchant Cash Advance
This loan is geared towards helping finance small businesses which accept either debit or credit card payments from their existing pool of customers. The repayment process will require the borrower to grant the lender an access to his business credit payment facility wherein a certain amount will be taken from the payments made by the customers.
Cash Advance- Credit Card
The quickest way to obtain cash is through a credit card cash advance which uses the current credit limit of the borrower as basis of how much money he can request. Repayments come in monthly installments which will incur interest which is a bit higher than making a purchase using the credit card. Cash advances can be made via an ATM for directly from the credit card bank issuer.
Line of Credit
This is a type of loan is offered mostly by banks or other financial institutions. Line of credit is a financing term granted to a borrower which is based on the borrower’s current credit standing. There is an option for the borrower to take the entire amount granted or have it withdrawn in installment basis to suit his financial need. Once the entire loan is fully paid, the borrower’s credit line is refilled with the loaned amount. Line of credit loans are granted depending on the borrower’s credit score which will determine the loanable amount.
Short term loans don’t require excellent credit rating or history. Check this out and learn about borrowing options for people with lower or bad credit standing. It seems like short-term loans are second chances for people who have a bad credit history or rating. So, if ever you were one of those people who were given the chance to acquire money from this kind of loan, don’t waste the opportunity. Put the money into good use.
To anyone who would be granted short-term loans, just because you get it quicker and with less hassle doesn’t mean you can spend it anyway you want it. Any kind of loans should be spent to the most essential things such as food, shelter, health or as business investment. No matter how big or small, a loan or a debt is a huge responsibility that we have to take very seriously to avoid any financial trouble in the future.