When people need a small, short-term loan, what they are looking for is flexibility, affordability and convenience. With these characteristics in such high demand, it’s little wonder why people are opting to apply for loans with a short-term lender as opposed to a bank. The real question is how do these short-term lenders provide all the three key features that borrowers are looking for.
The flexibility comes into play on two fronts. Since credit scores don’t usually affect approvals for short-term loans, virtually anyone can apply and get approved for these loans. In addition the amount of the loan and the repayment time can be quite varied. While these repayment agreements will be relatively short due to the limited amounts these lenders provide, a person can pay off their loan in 2 weeks or they can stretch out payments over a 6 month period if they need something more fitting for their budget.
Making it Affordable
Affordability isn’t just about payments that are right for a person’s budget. Affordability is also about getting a loan payment out of the way as quickly as possible. Most lenders, whether they are short-term lenders or mortgage lenders understand that customers are looking to reduce the amount of monthly expenses they have. For this reason, a short-term loan repayment can be fashioned to be paid off as quickly as possible. Not only does this free up more money for a person each month, it also reduces the amount of interest a person has to pay on the loan.
Lastly, these loans are simple to apply for and approvals for the loans can happen in as quick as a few seconds to an hour or so at the most. In addition, there is no going to the bank for any paperwork or to turn in documentation about assets or anything of the sort. A person will need to fill out some basic information, but they can submit their application online and simply wait for an approval notification.
While short-term lending may not be for everyone, there are many people who can and do benefit from this type of loan. Regardless of if you’re looking for flexibility, affordability or an easy way to borrow money, you’ll be well served by taking some time to learn today about the benefits of a short-term loan.