Types of Short-Term Loans That Might Interest You

Many reasons may lead you to research short term loans online. A short term loan is any type of loan that needs to be repaid within 12 months. With this in mind, numerous factors could cause you to need a short term loan, ranging in anything from a payday loan to a personal loan. 

Given the small period to repay your short-term loan, you would likely consider a loan with a quick repayment timeline for auto repairs, an upcoming vacation, or remodeling your home. Luckily, when it comes to researching the types of short term loans that are available, there is a plethora of information that you can find to pinpoint the best loan for your exact needs. 

When you decide on the right type of loan, then you can also do your research to find the best loans, such as the best personal loans that will give you an adequate interest rate or a repayment plan. 

As there are numerous types of loans out there, listed here are several types of short term loans that may interest you:

  • Merchant Cash Advances

This is a short term loan that works very quickly and as a cash advance. With a cash advance loan, the lender will have access to the borrower’s credit and will take a certain percentage of each sale that is made until the loan is repaid. There are some benefits to using this type of loan. You can receive your money very quickly – in under 24 hours. You do not have to undergo a credit check for this type of loan. Also, merchant cash advances are only using business revenue to fund this type of loan.

  • Lines of Credit

Another type of short term loan involves various lines of credit. This is a type of loan used by businesses to have access to money in a different way than a traditional loan. When working with lines of credit, the borrower will have a set credit limit that they can not surpass and can borrow up to that limit. They will make monthly payments to the amount of a percentage of what was borrowed or a set amount based on the lender. They also work with an annual percentage rate to determine the amount of interest paid on what has been borrowed with each given month. Lines of credit are often preferred compared to business credit cards as they generally offer a lower annual percentage rate. 

  • Payday Loans

Payday loans are a type of short term loan that can be obtained very easily. The ease of getting a payday loan involves the fact that the borrower will borrow what they need prior to their payday, and they will need to repay their loan and the interest involved when the payday comes. These can contain high-interest rates, so you must explore different platforms and look for the best payday loans that offer better options for you. This type of loan is a great option for obtaining the money needed urgently, especially since it is easy to get. Other benefits for payday loans include information security – payday institutions cannot give out your personal or banking information to other companies. Payday loans usually do not have restrictions when it comes to what you are borrowing money for, so you can use the money for any of your needs. 

  • Invoice Financing

This type of short term loan is a loan that is done for businesses through their accounts receivables. Accounts receivables include any invoices that are not yet paid but are due for payment by the customers. Invoice financing loans will be paid to the borrower by the lender and then will be charged interest rates based on the amount of time left that the invoices need to be paid. Once the invoice is paid, then the lender will take the percentage of interest that is due for the loan from that payment. The lender will then return the rest to the business for payment of the invoice.

  • Online Loans

There are also loans that you can get online. This means that you can apply for a short term loan online, for personal reasons, and have the money wired into your bank account in a very quick time frame. There are many advantages to online personal loans as they are very convenient and easy to get. They are great for emergencies and are very accessible. As most people don’t have more than $1,000 in the bank in terms of savings, these types of loans can be a lifesaver. 

As you can see, there are many types of short term loans. When it comes to determining the type of loan that you need, you will want to consider some of the advantages of choosing a short term loan over a loan that involves a repayment plan longer than twelve months. 

One of the advantages that with a short term loan includes the fact that there is not a lot of time for interest to accrue within a twelve-month time frame. This means that you will need to repay the loan more quickly, but you will also pay less in interest. You can also consider getting a short term loan to have access to the money that you need faster than if you were applying for a longer loan. With these types of loans, the borrower can access their money much more quickly, sometimes within minutes of borrowing! 

Short term loans are also easier to get for individuals or even businesses that may lack the credit needed to get a longer-term loan. These are great for situations where less money is needed but needed quickly and can usually be obtained regardless of less than ideal credit scores. 

When it comes to short term loans, whether you are a business or an individual in need of fast cash, they are a fantastic method for getting your money in the bank quickly and without a lot of hassle. These can also provide instant relief in an emergency for those who are waiting for their next payday. 

Love Belfast
Belfast guide to restaurants, bars, nightclubs, concerts, events, hotels, entertainment, special offers, news, gossip, travel, festivals and culture. https://lovebelfast.co.uk

Related Articles

Leave a Reply

Stay Connected


Latest Articles