Access your money on your terms – Quick and convenient financial transactions at your fingertips.
Sometimes we all just need a little help to get by — and that’s when a short term loan comes in handy. Use it to pay for a sudden, unexpected expense or manage a cash crisis and then quickly pay back what you borrowed. Loanz makes it easy to connect to trusted lenders offering short term loans. Simply fill out our convenient online form and we’ll connect you to a lender who can work for you!
Enter your desired loan amount and a few other details into our calculator. It quickly provides you with an indicative loan scenario based on the information you provide. This tool is designed to help you understand potential loan structures that could suit your financial situation.
Once you’ve chosen one of our partner lenders, you select the payout option that works best for you. Funds can be disbursed as quickly as one business day depending on the lender.
If you need money fast, save time and effort by using our convenient online form. Loans has a large partner network to connect you to a lender that works for you.
Our encrypted form protects your information and connects you with trusted lenders.
Our online process makes it easy to get a quote anytime, anywhere. Fill out our convenient form from your phone or a computer to explore your loan options!
Exploring your loan options has never been easier. With one simple form, you can unlock multiple potential offers.
We keep the qualification process simple to understand and strive to make lenders’ terms as transparent as possible as we guide you through the loan request and approval process.
Our streamlined application process is designed to save you time, allowing you to submit your information just once instead of applying separately to each lender. You have the possibility of potentially connecting with various lenders from our network depending on the individual lender’s criteria and your eligibility.
Loanz will assist to explore potential loan offers by searching through our network of partner lenders. We are here to support you in the loan exploration process and, if you find a suitable offer, assist with the next steps as needed.
After you have finalized the details of your loan with your selected lender, they will be responsible for depositing the funds into your bank account. Payouts could be offered as quickly as one business day, subject to individual lender policies and procedures.
When it comes to borrowing, Loanz.com knows how crucial it is to empower you to know all the options available to you while you are making financial decisions for your future! If you’re considering a short term loan, it will helpful to know what it is, their differences from other loan types, interest rates differences compared to other types of loans, how short term personal loans compare to short term business loans, and if short term loans including payday or title loans affect your credit score.
Let’s explore all of these elements of a short term loan. However, it must be noted that short-term loans are not a long-term financial solution and there are ways to improve your financial situation.
A short-term loan is a type of installment loan that is typically repaid within a brief period, usually within a year or even a few months. These loans are designed to provide quick access to funds for individuals or businesses facing temporary financial needs. Short-term loans often have APRs compared to traditional loans due to the shorter repayment period even if interest rates are initially less than other loan types.
Short-term loans can be secured or unsecured. Secured loans require collateral, while unsecured loans do not. The type of security needed, if any, depends on the lender and the borrower’s creditworthiness.
A payday loan is a short-term, high-interest loan that is typically due on the borrower’s next payday. These loans are designed to provide quick access to cash to cover immediate financial needs or unexpected expenses.
Payday loans and short-term loans are similar in that they both provide quick access to funds, but there are some key differences between the two:
| Payday Loans | Short-Term Loans | |
| Loan Duration | These are typically very short-term loans, often due on the borrower’s next payday, which could be within a few weeks. | While also designed for short durations, they may have slightly longer repayment periods, ranging from a few months to a year. |
| Repayment Structure | Repayment is usually a lump sum, including both the principal and the fees, withdrawn directly from the borrower’s bank account on the agreed-upon date. | Repayment may be more flexible, with options for installment payments over the loan term. |
| Loan Amounts | Typically provide smaller loan amounts, often based on the borrower’s regular income. | May offer higher loan amounts, depending on the lender’s policies and the borrower’s creditworthiness. |
| Interest Rates & Fees | Tend to have high annual percentage rates (APRs) and fees, making them more expensive for borrowers. | While still having higher interest rates than traditional loans, they may have more competitive rates compared to payday loans. |
| Lender Type | Often associated with storefront lenders or online lenders specializing in short-term, high-interest loans. | Offered by various financial institutions, including traditional banks, online lenders, and alternative finance providers. |
| Credit Check | Payday lenders often do not conduct a thorough credit check during the application process. Instead, they may focus on the borrower’s income and ability to repay the loan. | Lenders typically make a soft or hard credit check inquiry. |
Short-term loans, including payday and title loans, can have varying impacts on your credit score. Here’s a breakdown of how each type of loan may affect your credit:
Traditional short-term loans, such as those with a fixed term and installment payments, may or may not be reported to credit bureaus. If the lender reports your payment history to the credit bureaus, making timely payments can have a positive impact on your credit score. However, if the lender does not report, the loan may not directly affect your credit.
Most payday lenders do not report your payment history to the major credit bureaus. This means that taking out a payday loan and repaying it on time typically won’t positively influence your credit score. Conversely, if you fail to repay a payday loan and it goes to collections, it may be reported, negatively impacting your credit.
Title loans are secured by the borrower’s vehicle, and non-payment can result in repossession. Like payday loans, many title lenders do not report payment history to credit bureaus. However, if the loan goes into default and the lender repossesses and sells the vehicle, the repossession may be reported to the credit bureaus, negatively affecting your credit.
It’s crucial to check with the specific lender to understand their reporting practices. If improving or maintaining your credit score is a priority, you may want to consider other types of credit that are reported to the credit bureaus, such as credit cards or installment loans from traditional lenders.
Short-term loan interest rates work differently depending on the type of loan, the lender, and the specific terms of the agreement. Here are the common ways short-term loan interest rates are structured:
The APR is a standardized measure that expresses the annual cost of borrowing, including both the interest rate and any fees associated with the loan. It provides a comprehensive view of the total cost of the loan over a year.
Borrowers may use short-term loans for various purposes, depending on their financial needs and circumstances. Here are several common ways in which individuals and businesses might utilize short-term loans:
Short-term personal loans and short-term business loans serve different purposes and are tailored to meet the financial needs of individuals and businesses, respectively. Here are the key differences between the two:
| Short-Term Personal Loans | Short-Term Business Loans | |
| Purpose | Individual Needs: Personal loans are often used for personal expenses such as medical bills, home repairs, debt consolidation, or unexpected emergencies. | Business Expenses: Short-term business loans are intended for covering various business-related expenses, such as working capital, inventory purchases, equipment maintenance, or bridging cash flow gaps. |
| Borrower Criteria | Individuals: Personal loans are typically granted to individuals based on their personal credit history, income, and financial stability. | Business Entities: These loans are typically available to businesses, and the approval process considers factors like the business’s credit history, revenue, and financial stability. |
| Collateral | Unsecured: Personal loans are often unsecured, meaning they don’t require collateral. Approval is based on the borrower’s creditworthiness. | Secured or Unsecured: Business loans can be secured (requiring collateral) or unsecured, depending on the lender and the borrower’s creditworthiness. |
| Loan Amounts | Moderate Amounts: The loan amounts for personal loans are generally moderate, depending on the borrower’s credit profile. | Varied Amounts: Short-term business loans may offer larger loan amounts compared to personal loans, accommodating the greater financial needs of businesses. |
| Repayment Terms | Fixed Terms: Personal loans often have fixed repayment terms, and borrowers may make monthly payments until the loan is fully repaid. | Flexible Terms: Repayment terms for short-term business loans can be more flexible, allowing businesses to align repayments with their revenue cycles. |
While using a short-term personal loan for business purposes might provide quick access to funds, it comes with several potential consequences and risks. Here are some considerations.
Using a personal short-term loan for business purposes may lead to legal and financial complications. While the specifics can vary based on jurisdiction and individual circumstances, here are some potential legal issues and consequences:
If the terms and conditions of the personal loan explicitly state that the funds are for personal use only, using the loan for business purposes may be considered a breach of the agreement. This could lead to legal consequences, including penalties or additional fees.
Providing false information to the lender about the intended use of the loan may be considered misrepresentation. This can result in legal consequences, including the lender taking legal action to recover the borrowed funds.
Personal loans are the responsibility of the individual borrower. If the business fails to repay the borrowed funds, the individual’s personal assets may be at risk. This is especially true if the lender can demonstrate that the funds were misused for business purposes.
If the lender can prove that the borrower knowingly used the funds for business purposes in violation of the loan agreement, it may be considered fraudulent use of funds. This could have legal consequences and impact the borrower’s credit.
Mischaracterizing personal expenses as business expenses for tax purposes can lead to legal issues with tax authorities. This may result in fines, penalties, or audits.
Using a personal loan for business purposes may violate consumer protection laws or lending regulations. In some jurisdictions, lenders are required to adhere to specific rules regarding the types of loans they offer and how they can be used.
If the lender discovers that the borrower is using personal funds for business purposes without their knowledge or consent, it may be viewed as an unfair business practice. This could lead to legal action against the borrower.
If the borrower defaults on the personal loan due to financial difficulties in the business, it can negatively impact their personal credit report. This, in turn, can affect the individual’s ability to secure future credit or loans.
It’s crucial for individuals considering using personal funds for business purposes to carefully review the terms of their loan agreements and seek legal advice if needed. Exploring business-specific financing options is generally recommended to avoid potential legal pitfalls and ensure compliance with relevant regulations.
Short-term loans can be useful in certain situations, but they also come with both advantages and disadvantages. Here are the pros and cons of short-term loans:
Pros:
Cons:
Before considering a short-term loan, individuals should carefully weigh the pros and cons, assess their ability to repay, and explore alternative financing options based on their specific needs and circumstances.
