5 Easy Steps To Get Short Term Loans
Do you have an emergency that needs an immediate solution? It could be a car breakdown, paying rent, credit card bills or even medical expenses that can’t wait. With no savings and a poor credit score, you are wondering where to get funds to help solve the financial crisis. Stress not. Short-term loans from reputable lenders are your best bet.
Commonly known as payday loans, these are an instant source of funding between $100 – $1000 with shorter repayment periods of say, two weeks or less than one year. Unlike installment loans which you can pay in small installments over an extended period, short-term loans are paid in one lump sum at the end of the term. If you are in business, this source of funding helps bridge gaps in your cash flows, deal with unexpected needs or take advantage of new business opportunities.
Features and benefits of short-term loans
Below are the common features and advantages of short-term financing:
- There’s no limit to what you can do with these funds. Lenders do not put restrictions on what to do with the money once it gets into your account.
- No collateral – most lenders don’t ask for security before funding. This, however, varies from lender to lender.
- You can apply online – you don’t have to go to the lender’s office. You can request for these loans online and get funds at the comfort of your home.
- Some lenders may approve your loan depending on your credit score, but many do not perform credit checks and give out loans to individuals with poor credit history.
- Quick approval time – loan applications are approved and funds are issued as soon as the next business day.
How to get short-term loans
Apart from traditional banks that offer secured short-term debt, several lenders also offer these loans to individuals with poor credit history without collateral.
To get these funds, you must first meet the eligibility criteria. Below is a step-by-step guide on how to get short-term funding:
- You must qualify for funding
To get funding, you must be above 18 years old, have a source of income either from your business or salary, and provide documents that prove your source of income.
- Provide proof of identity, age, residence, a source of income. If you are employed, you’ll have to show your pay slips. For self-employed individuals, bank statements will do.
- Request for funding by filling a form online and attaching the relevant documents. You will get connected to direct lenders who will review your applications and respond to you within the shortest time possible.
- If your loan application is approved, you will get a link to the lender’s website where you will read their terms and conditions.
- You will then sign if you agree to their terms and funds will be disbursed to your account.
Factors to consider when choosing a short-term lender
Lenders vary. To get an affordable loan that does not trap you into more debt, you have to choose wisely. Below are some of the things to look out for in a lender:
- Loan approval and issue time – since these funds are for immediate needs, the faster your loan is approved, and faster funds disbursed the better.
- Interest rate – although interest rates vary from lender to lender, the California finance law regulates interest rates charged on short-term loans at $15 and $30 per $100 borrowed. It’s essential to go for lenders who charge lower interest rates.
- Loan charges – these are the extra amounts charged to your loan. It should not be too high.
Short-term loans offer an instant solution to life emergencies. They are, however, not a solution to long-term debt. As a borrower, it is crucial to choose a lender who will not only offer you funding, but will help you to gain financial freedom by providing affordable loans and useful information on how achieve financially stability. We connect our clients to such lenders while keeping their data safe and secure. Fill out our application forms today and let us help you acquire fast funding at the comfort of your home.