Should You Take Out a Short-Term Loan to Cover an Emergency Expense

Sometimes you wake up and the day ahead seems good and lively. You have high hopes your day’s plans will go on as planned.

You prepare and depart joyously then after an hour or two, and you receive a distress call.

It’s your nanny telling you to hurry home as there’s an emergency. Emergencies come when you least expect them. In most cases, they happen when your savings account has no money. That’s the time your mind runs helter-skelter thinking where to get money or what to do.

What is a short term loan?

A short-term loan is a form of a loan secured to meet the needs for urgent personal or business money. Since it is a form of a loan, it includes a borrowed principal sum and interest that has to be repaid by a specified deadline, typically within a year from having the loan. The lender sets the deadline and the terms.

A short-term loan is a useful alternative, particularly for micro-enterprises or start-ups that have not been qualified for a bank line of credit. The loan consists of a smaller amount secured, ranging between £100 to as high as £100,000.

Short-term loans are ideal not just for companies, but also for individuals who have an immediate, unforeseen financial crisis. There are several reasons why you should apply for online short-term loans to help meet your emergency needs.

They get fast approval

You only consider taking a short term loan because you are faced with an emergency. As a result, you will be looking for a lender who will approve your loan within the fastest time possible.

Most lenders understand the urgency of the loan and they give it a priority. You might not even have the time to rush to your lender to request for the loan. Instead, you can apply for online short-term loans which can redeem the time you could have spent rushing to the bank.

Most online lenders will not ask you for a lot of paperwork to approve your short-term loan. Mostly, all they will require from you is proof that you are earning an income, you have a bank account and you are a genuine citizen.

Once you upload the necessary documents and they approve them, you get your short-term loan within a few minutes.

You will not need long-term agreement

Short-term loans are paid within one year. That means the loan term can fall anything between one month to twelve months. If the emergency loan was extended to longer periods, it would always remind you of the emergency and every challenge you went through. The best way to forget the pain is to pay off the loan and move on with life.

That is why short-term loans are given a short payment period. In most cases, friends, neighbours and family members may come to help later after your emergency case has been attended. You can use the help you receive to pay your short-term loan.

There are many short-term loan lenders

Currently, short-term lenders are many and they are all eager to help you with your emergency need. If you borrow from the short-term lenders, you will not need to wait for four days before your loan gets approved.

The short-term lenders are online lenders and you can access them from anywhere as long as you have an internet connection. You will be free to compare a few and check their terms like interest rates, loan processing time and payment period.

Most of the online short-term lenders process your loan within a few minutes after you get approval. They have minimal document requirements and their payment period is short meaning you will not need to carry the emergency burden for long.

You get your loan in cash

The greatest dilemma you can be faced with is when your loan gets approved and processed, just to be told you go and collect a check. The information would add pain to your heart that is already bleeding.

It would be pleasing if you were told your loan had been approved. As you wait, you receive a message that cash has been deposited into your bank account.

When you get direct access to cash, you can withdraw and clear any bill you needed to clear. It could be your emergency involving paying your supplier for goods you needed to process urgently. You will be able to pay your supplier and in turn, deliver the urgent goods to your client.

You will not burden others

Sometimes when you need money for an emergency, you get confused about who to contact. As a result, you may find yourself calling everyone in your contact list to ask for help. Some people feel burdened and they will not take your call kindly. They could also go telling everyone about your problem.

Instead of creating enmity with your friends, family and colleagues, opt for a short-term loan. The transaction shall only be known between you and the lender. The lenders don’t even ask for your photo and therefore, all they will have is your name, bank account number and government identity number.