Short-Term Financing

There are many reasons why you might need access to a small amount of cash rather quickly. Did you know that you can apply for a short-term cash loan? Short-term loans are smaller amounts of cash that you can often receive right away with just a government-issued ID, source of income and a checking account. They are usually payable within several weeks to several months, depending upon the type of loan.

Applying for a short-term loan is easy and convenient, and you don’t have to have excellent credit to get one. Advance America short-term loans can help you hire a professional to do a car or home repair, pay upcoming bills, or fill in the financial gaps when you’re running short on cash due to the unexpected.

Here's how short-term loans work, some loan types, and four situations when you might consider that applying for a short-term loan is right for you:

What is short-term financing?

Short-term financing refers to loans with repayment terms of less than one year. You’ll often use a short-term loan to cover a specific expense and then pay it off fairly quickly. You’ll repay what you borrow plus interest and fees over a period of anywhere from a few weeks to several months. 

Types of short-term loans

There are a number of short-term loans you can choose from, including:

Payday loans

Payday loans are short-term, small-dollar loans you can pay back when you receive your next paycheck, usually within two to four weeks. A payday loan might be ideal if you need some extra funds to hold you over until payday.

Installment loans

Installment loans give borrowers a lump sum of money at once. After you receive this loan, you make fixed monthly payments or installments over time. Compared to other short-term loans, installment loans offer larger borrowing amounts. 

Title loans

Car title loans are secured loans that require your car as collateral. Once you give the lender your title, they’ll offer you cash, based on the appraised value of your vehicle. You can drive your car as you make your loan payments. A title loan can be a good idea if you own your vehicle.

Lines of credit

Lines of credit are a lot like credit cards. You can withdraw funds at any time, up to a set credit limit. Fortunately, you’ll only pay interest on the amount you borrow, instead of the entire amount you’re approved for. A line of credit is a flexible type of short-term loan. 

4 reasons you might need a short-term loan

Here are some reasons why you might need to get a short-term loan:

1. To pay bills.

Keeping current with bills, especially electric, water, and insurance is vital to keeping a household running. And, not paying a bill on time can mean not being able to drive, or not having electricity or water.

If you have a credit card bill that is due, it’s never a good idea to just not make the payment. Consider applying for a short-term loan to pay the bill on time and to avoid any late fees and additional interest. Paying your credit card bills on time will also keep your credit score healthy, too.

2. Car repairs.

Today, our vehicles are key to our economic health. When your car’s not running right, won’t start, or needs a new set of tires, you may not be able to get to work—or even get your kids to school, doctor appointments, or activities.

By keeping up with the maintenance on your vehicle, such as checking tires and fluids regularly, and getting oil changes every 3,000 miles, you’ll be investing in your transportation, and economic livelihood. So, If you’re short on cash, consider applying for a short-term cash loan to keep your car’s motor running.

3. Home repairs.

Short-term loans are convenient when you need an emergency repair, such as fixing or buying a new water heater or repairing a leaking roof. Even non-emergency home repairs, such as replacing a door lock or fixing a garage door, need attention.

You may need to purchase materials or tools to make a home repair yourself instead of hiring a handyman or repairman to do the work. A short-term cash loan can help you save money because not making a repair can cause additional damage to your home, and, in the long run, result in a more costly repair.

4. Cell phone or electronic device replacement.

Cell phones are our way of staying in touch with our employers, families, and  communities. Unfortunately, when you lose or break your phone, replacing or fixing it can be costly, even if you carry insurance. You might have money in your bank account, but don’t want to spend it all on replacing a cell phone.

A short-term loan, like a payday loan, for example, can help you replace your cell phone or other electronic devices until you receive your next paycheck.

Advantages of short-term financing

There are several benefits of short-term loans, such as:

Simple application process

Many lenders let you apply for short-term financing online, from the comfort of your own office or home. The application process should take no longer than a few minutes, especially if you have basic personal and financial details on hand. 

Fast funds

Upon approval for a short-term loan, there’s a good chance you’ll receive your money quickly. Depending on the lender, this may be the same day you apply or within 24 hours, which is great news if you have an emergency expense that can’t wait. 

Easy to qualify for

Borrowers don’t need great credit to get a short-term loan. In fact, many lenders have lenient requirements and are willing to look beyond your credit. As they review your short-term loan application, they might consider other factors like your income and employment situation.

Is short-term financing right for me?

Short-term financial may be a good option if you need some fast cash to cover an emergency expense, like a car repair or medical bill. This is particularly true if you’re confident you can repay your loan within a short amount of time. You can apply easily and get approved quickly, regardless of your credit. 

Advance America offers short-term loan options like payday loans, installment loans, title loans, and lines of credit that can get you fast funds. Visit Advance America today to learn more about who we are, what money solutions we offer, and why our customers love us.