A short-term loan is a great choice when you need immediate cash. It is also a suitable choice for small businesses and startups that are not eligible for a bank credit line. The loan amount can be between £100 to £1500. Short-term loans get their name from how quickly they must be repaid. It usually needs to be repaid within a span of six months to a year but not no more than 18 months.
Where to look for a good short-term lender in the UK?
PM Loans offer quick cash are the direct lender and also a broker with access to a huge panel of lenders so that their customers can get the best short-term loan deal. They are authorized and regulated by the FCA which makes them highly reliable, responsible, and efficient.
It is because of their transparent process and speed of service that hundreds of UK citizens choose them for a short-term loan when in a financial emergency. Get in touch with them for the minimum loan amount that starts at just £50 to a maximum of £1500.
How to make the best out of your short-term loan?
One of the reasons that make short-term loans expensive is because of defaulting or missing out on payments. Making late payments and defaults should never be an option if you are looking for the best from your short-term loan. Follow these tips to ensure you meet the loan repayment target.
Never borrow that you can’t repay
This advice applies to all kinds of loans whether it is short-term or long-term loans. Never borrow an amount that you can’t afford to repay comfortably. As a general thumb rule, ensure you are not paying back your loan with more than 10% of your total net monthly income.
Unless you have additional sources of income that would allow you to comfortably pay off your loan in addition to your other monthly obligations, you run the risk of running into financial difficulties. Make sure you repay the amount during your next payday or as per the terms of taking the loan to avoid late penalties and interest charges.
Repay quickly, save on interest charges
Short-term loans can be cheap and convenient only if you intend to pay them back fast.
- The loan cost increases if you increase the loan term.
- Avoid taking the longest term only because you get to pay lower monthly repayments.
- This would make the loan amount expensive in the long run.
- Opt for the shortest term that you can afford to pay back.
- Look for early repayment options
Make your payments on time
Pay on time to avoid being charged late fees and penalties. Lenders make a good profit from late fees along with interest costs. You can keep a standing order to ensure you do not miss a payment. Paying on time will also ensure that your credit record is maintained.
It’s important to remember that short-term loans can become expensive when you skip a payment or choose the longest payment term. Hence, choose a good lender so that you do not need to worry about paying penalties for paying off your loan early.