Short-term loans are a fast and simple way to cover budget shortfalls. There are several options available, including installment and payday loans. These options are great for those who don’t want a long commitment, and some of the benefits are listed in the guide below.
As most short-term loans are for small sums and borrowed over a shorter time, they’re unsecured by assets such as a house or car title. Rather, the lending decision is based on factors such as the borrower’s credit score or whether they have someone who can co-sign or back the loan.
Loans are Quick
One of the main benefits of short-term lending is that it happens fast. In many cases, the funds are available the same day or within 24 hours. This makes these loans an ideal financing solution for those who need quick cash.
No Long-Term Commitment
With a short-term loan, the borrower only has to focus on the future as loans are paid off within a shorter period. Many borrowers are unwilling to commit to a lengthy lending period, as it makes it harder to manage one’s finances. However, with short-term loans, the repayment term can be as little as a month, which allows the borrower to repay the loan and get on with life.
They Cost Less
The longer the loan term, the more the borrower pays in interest. Short term loans give people a simple way to get the cash they need and to pay less over the loan term. As these loans aren’t secured by assets, there’s less risk for borrowers who can’t keep up with payments. While it’s important to only borrow what one can afford to pay back, avoiding the risk of losing assets takes the pressure off of many borrowers.
The loan types mentioned in this guide illustrate how short-term lending can suit a variety of needs. Whether a borrower has poor credit, they’re borrowing money for the first time, they lack a bank account, or they simply don’t want to deal with a conventional lender, there are many options available. Visit MaxLend Loans for more details.