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The Reasons Why You Should Consider Short-Term Financing


For people who need immediate cash, but don't have the sort of money in their bank account to cover that need, there are several options available. Many people look to payday loans. These are fairly easy loans to get, regardless of credit history. However, payday loans are typically repaid anywhere from two weeks to a month after the loan is made. This can be extremely difficult on an individual that is having cash flow issues. This is why there are a growing number of people that choose instalment loans instead.

When you hear payday or short-term lending, as you may think that they're one in the same. While there are certain similarities, there are enough significant differences to make differentiating between these two lending options important. Here are a few things to consider.

The similarities between a payday loan and short term loans is that they are relatively easy to get. In many cases, especially if you're only looking to borrow a very small amount, you'll need to meet just a few requirements. You'll need to be at least 18 years of age, you'll need to have a steady source of income and you'll need to have a bank account with a valid debit card.

Unlike traditional lending, whether it's a payday loan or a short-term loan, credit scores aren't going to be taken into account. The reason for this is that a bank account as well as steady income is the collateral that a short-term lender is looking for. Traditional lending institutions use credit worthiness as a type of collateral.



As far as similarities, that is typically where they end. Short-term lending offers installation payments as opposed to a one time repayment that is common with payday loans. These installation payments are geared more towards helping somebody structure their repayment and helping a borrower to manage times were they may have cash flow issues. By having smaller scheduled payments, it would be less likely for an individual to default on a small payment, as opposed to defaulting on a lump sum payment for a payday loan.

If you need quick cash, but you're concerned about a large payment that will be due in anywhere from two weeks to a months time, a short-term loan from moneyboat may be precisely what you need. If you're interested in this type of loan, but you want to get more information on the amount of money you can borrow, and any other stipulations such as interest rates and things of that nature, visit Moneyboat.co.uk. From this website, you'll be able to get all the details you need in order for you to determine if this type of loan is going to be right for you.