Short Term Loans

The Pros and Cons of Short Term Loans

If you need a little bit of financial help, short term loans can be a viable solution. Similar to short term property loans, these types of loans have a much shorter repayment term. In many cases the terms last between six and 18 months. Anything longer than 18 months is considered to be a medium or long-term loan. Before you apply for short term property loans or any short term loans, read on to learn more about the pros and cons.

 

  • Most applicants receive funding quickly when they apply for short term loans. In fact, the approval time is often just a few business days, and the funds can be used immediately.

  • The loan application process for these types of loans is much easier and shorter. This can be very helpful if you don’t have time to wait for long approval times. It also means that you’ll have a lot less paperwork to deal with.

  • A major con to choosing short term loans is their higher interest rate. Long-term loan rates are lower, which means you’ll pay less overall for the same amount of money.

  • Many short term property loans require you to make frequent payments. In fact, some may actually require you to make payments weekly or even as often as every day. This can be quite constraining, especially if you don’t have the funds to make such frequent payments all at once.

  • One pro to short term loans is that it’s much easier to qualify than it is for long-term loans. If you have good credit, then your approval odds go up even more significantly.

  • One great alternative to traditional short term loans is a settlement advance. If you’re interested in finding out more about this option, please contact the experts at Settlement Advance today or fill out an online application.