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Short Term Loans

What Is A Short Term Loan?

what is a short term loan
Learn what is a short term loan, why it could be useful and how to get one here. Need to cover short-term expenses?

If you are in need of access to cash quickly, then a short-term loan could be the perfect solution for you. They can also be referred to as payday loans, with the intention that the extra cash you receive can be used to tide you over until your next payday. It’s no secret that unexpected expenses can crop up all the time.

Perhaps your car registration is due and you don’t have the funds. An unexpected medical bill might crop up. You could find yourself in an accident and unable to pay for repairs. They work as personal loans that need to be paid back relatively quickly. Short term loans can also be used for businesses that need access to capital. Once again, the idea of these loans is to provide a quick cash injection that can be paid back once cash flow improves. So what is a short term loan and how does it work?

short term loan credit card

What Is A Short Term Loan?

Are you wondering what is a short-term loan? These can also be referred to as payday loans, where you can borrow any amount of money, usually up to about $2,000. They are generally expected to be paid between 16 days and a year. The idea is simple, they offer you access to some extra money for a short period of time. As a result, these types of loans do work differently to regular loans.

What is a short term loan?

The fees and charges on short term loans are one of the main things that set them apart from other types of loans. These can vary from lender to lender, but can reach these amounts:

  • A one-off establishment fee of 20% of the amount loaned.
  • A monthly maintenance fee of 4% of the amount loaned.

On top of this, there are extra fees and charges that the lender can charge you if you fail to meet the repayments or payback the loan. Short term loans do end up being more expensive than other loans. You are essentially paying for the convenience of being able to access the money you need as fast as possible.

short term loan school fees

What Is A Short Term Loan Good For?

There are many different reasons you might look at taking out a short-term loan. Wondering what is a short-term loan good for? Here are just some that might crop up:

  • Moving expenses: hiring a moving truck, paying an end-of-lease cleaner and paying bonds can all add up.
  • Car repairs: whether you have been in an accident, or your car has simply broken down, repairs can be expensive.
  • Furniture: if you have just moved house, you may find yourself out of pocket paying for furniture to fill it up.
  • School fees: these usually come out in blocks, which can push you into debt if you don’t have the cash on hand.

When it comes to businesses taking out short-term loans, they usually apply to small businesses in need of a quick cash injection:

  • Buy stock: if you have a busy period coming up and want extra stock, a short-term loan can tide you over.
  • New clients: bringing new clients on board can be expensive, and usually, the cash comes at the end. A short-term loan can give you the money you need.
  • Growing your business: if you are looking to grow, then a short-term loan can give you access to the funds to make it happen.
short term loan holiday

Types of Short Term Loans

When it comes to exploring what is a short term loan, it is worth noting there are a number of different options available to you.

  • Credit card: if you only need a small amount of money, this can be a great option. It is flexible and has lower interest rates than a payday loan.
  • Personal loan: personal loans give you more time to pay back the money, and you have access to more money than payday loans. They can take longer to apply for and to get access to the cash.
  • Payday loan: this is a fast way to get cash and doesn’t require much paperwork. It does come with the large fees discussed above, so it pays to shop around.

Applying for a short-term payday loan is very simple and can often be done online. You will need to provide proof of identity, recent payslips, bank account statements and a utility bill confirming your address. Your application is usually approved very quickly, so you have cash in hand within 24 hours.

Taking Out A Short Term Loan

Are you looking at taking out a short-term loan, either for you personally or for your business? Australian Lending Centre can help you out. We will find the right loan for your specific needs to help you get access to the cash injection you need as quickly as possible.

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Personal Loans Short Term Loans

How To Improve Your Lifestyle with Quick Loans

How To Improve Your Lifestyle with Quick Loans

There are so many different ways you can improve your lifestyle with quick loans, the problem is, many people don’t know what a quick loan is and exactly how one can help you out. Whether you are trying to find your way out of debt or looking for a bit of financial help over a certain period (such as the holidays) a quick loan can be the perfect solution.

What is Quick Loan?

The term ‘loan’ can be off-putting. It can conjure up images of debt and financial stress, and many people are unable to see the benefits of it. Not all loans are created equal, and taking out a loan can sometimes help you stay out of financial trouble and get you back on your feet once again.

So what are quick loans? They are personal loans that can be funded in a short space of time. Approval and funding can both occur within days of your application, which means you can put the money to use straight away without waiting for funds to clear.

There are so many different ways to improve your lifestyle with quick loans, here are just a few.

How to Improve Your Lifestyle with Quick Loans

Pay Off A Holiday

No more scouring through Trivago for the best deals… An injection of cash can help you to book the holiday you deserve.

After relaxing and forgetting all of your worries, the last thing you want to face, on top of the holiday blues, is financial stress. You’ve been off work for a couple of weeks, enjoying your trip and now you are back home with no pay coming through any time soon. A quick loan is a perfect way to get you out of debt fast.

Get You From Paycheque to Paycheque

It’s no secret that some months it can be hard to stretch your money to the next paycheque and you find yourself living off tinned baked beans just to make it through. Next time this happens to you, consider taking out a quick loan. It will tide you over until that next paycheque, and offer you something nutritious to eat at the same time! It is the perfect way you can improve your lifestyle with quick loans.

Pay For Gifts

Pay for gifts
This time of year can place a huge financial strain on many families, but the fact is, it doesn’t have to.

The holiday season is a busy time of the year. From Christmas parties to presents for all the relatives, you can find your money is flying out the window faster than you can earn it. Don’t worry, you aren’t alone.

Get Out Of Debt

Unfortunately, debt is something that tends to spiral out of your control. Once you are in debt, unless you can sort it out quickly, it can all too often get the better of you. The bills pile up, one of top of each other, and before you know it, you are sinking.

A quick loan is a perfect way to offer some light financial relief while you get back on your feet again. It can be just the boost you need. The competitive interest on quick loans can help you pay off your overdue bills and give you a bit of breathing space when it comes to paying off the next one. Just this simple step-up can often be enough to help you take back control of your finances.

Unexpected Costs

Life is unpredictable and at times you can find unexpected costs creeping their way in. Sometimes, these costs can add up and you find yourself pushed financially. Whether you were in a car accident and need to pay for repairs, or have ended up sick and in hospital, you can improve your lifestyle with quick loans.

Taking out a quick loan can help you get back on your feet without spiralling into further debt along the way.

These are just some of the ways you can improve your lifestyle with quick loans. The fact is if you find yourself in the situation that you need a bit of cash to tide you over or help you get a leg up, consider taking out a quick loan. The team at Australian Lending Centre can help you out, enquire today!

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Short Term Loans

The Ultimate Guide To Short Term, No Credit Check Loans

short term loans for business cash flow

Taking out a loan can be a very long process. It is dependent on a number of factors, including what type of loan you need, your credit history, and the institution you choose to take the loan with. But sometimes, we need a quick cash injection to give our personal or business life that little boost it needs, and we don’t want to be waiting around for the long, drawn-out process of taking out a loan and miss out on opportunities in the process. This is where a short term no credit check loans can be very helpful.

What Is A Short Term Loan?

As the name suggests, these are loans that are taken out in the short term. Normally, they are expected to be paid back within the year. These type of loans are commonly taken out by business start-ups, who don’t yet qualify for a credit line from the bank, yet need a quick cash injection to get them up and running.

Types Of Short Term Loans

There are different types of short term loans that can be used for a number of different purposes depending on your individual circumstances.

Merchant Cash Advances

This type of loan is actually a cash advance, but it works in the same way as a short term loan. You can borrow a certain amount from the lender and then make the payments back to them by allowing them access to your credit facility. A certain percentage of each business transaction you make is taken back until you pay back your loan.

Line Of Credit

This is similar to using a business credit card. A limit is set, and you can use that credit as needed. You then have to make monthly instalment payments against the amount you have borrowed, so these will vary from month to month.

Payday Loans

These loans are usually given for emergency situations and can be fairly easy to obtain. Unlike the other loans we have looked at, they generally have to be paid back in one lump sum on your next payday.

Online Loans

Once again, as the name suggests these loans are carried out online. You can access a short term loan with a number of finance providers, with everything from application to approval done online with money wired into your account instantly.

Why Take Out A Short Term Loan?

There are a number of different reasons you may want to take out a short term loan.

Consider the following scenarios:

  • short term loan to cover car breakdown
  • short term loans to cover medical expenses

You have just started up a new business and need an initial cash injection to hire some employees to get things up and running. You have approached a bank, but they aren’t interested in helping you as you have no credit history and are considered a risk. If you’re looking to get back on your feet, the consider a short term loan. Short term loans can provide the foundation for taking out a long term loan down the track.

You need some money to fix your car after you have been in an accident. You need that money fast, as you rely on your car every day for work. Instead of waiting for approval from the bank, you can go down the route of a short term loan, get the cash as soon as you need it and get back on the road faster.

There are also plenty of benefits that come with short term loans

Less Interest

With a short term loan, you can expect to pay less interest. Pay them off quickly as the time frame is usually shorter. This doesn’t allow time for interest to build.

Instant Money

Given the fact that there is a lot less risk for lenders when it comes to short term loans, the process is a lot shorter and you can have the money with you even faster.

Easier To Get

Credit scores don’t factor in when it comes to obtaining a short term loan, which makes these loans even easier to get. The requirements are lower, which make them a lifesaver for many businesses.

Benefits Of Short-Term No Credit Check Loans?

Firstly, credit checks take time, which is one of the reasons the loan process can be fairly drawn out. Also, if you have a bad credit history, there is also the likelihood you won’t be approved for a loan with many financial institutions. Getting short term loans with no credit check sidesteps this and allows you to get the money you need when you need it, and without the hassle.

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Short Term Loans Business Consolidation Loans Business Loans Self Employed Short Term Business Loans

Short Term Loans Facts You Probably Don’t Know

short term business loans for seasonal business

Short term loans are convenient and quick ways to get money in a frenzy. You don’t have to worry about a credit check because many lenders offer no credit or poor credit loans. If you have a stable income, you’re over 18 and you’re willing to pay off a loan in as short as two weeks’ time, you have a great chance of qualifying for a loan. A short term loan is also a very potent financial tool that can help you break the cycle of debt and say goodbye to high-interest credit card debts. Read our short term loans facts now and take advantage of this useful source of finance.

How does a short term loan work?

It takes only a few minutes to fill out the application form. In 15 minutes or less, you can get the result of pre-assessment. Lenders will ask basic questions with a soft enquiry such as your income and age and the amount you want to borrow. In most cases, when you apply for quick cash like 90-day loans, lenders will review the information you provided, ask for your income verification and send you a loan offer.

What loan amount should you take? 

Depending on your financial situation, a lender may offer a high loan amount. If you don’t need all of it; don’t take the full amount. Lenders often extend higher amounts of short term loan to earn more money in the form of interest. Stick to the original amount you intended to borrow—which must be limited to the amount of money you need to meet your current need so that you can easily pay it back as soon as you can.

alc simple application process

How long is the repayment period?

Short term loans can be as short as two weeks to three months, or up to 1 year. Often, borrowers pay back the money back in full within 90 days. If they receive their salary twice a month, they pay back a portion of the loan into bi-weekly payments. The lender can break it into 3 monthly payments, 6 monthly payments or more depending on your income. Australian Lending Centre offers flexible repayment terms.

What fees are included in the monthly repayments?

One of the more complicated short term loans facts concerns the fees. The repayment amount includes the interest rate and fees on top of the principal amount of the loan, divided into several payments. The repayment amount each period depends on the total cost of the loan including the amount you borrow.

It is important that you review the terms of the loan, especially the loan amounts, interests and any fees before you accept the offer. If there are any hidden fees or the interest rate is too high; consider declining the loan. It is important to enquire about the interest, and completely understand the loan agreement that you are entering before you sign.

Why do people prefer short term loans that regular loans?

Convenience is one of the top reasons why borrowers choose a short term loan over bank loans and other loan products. It has minimum documentary requirements and an easy income verification process. The review process is extremely quick. Short term loans are a convenient and easily accessible means of acquiring money fast.

Business loans typically require a business plan and extensive paperwork. With short term loans, you don’t have to show any proof or supporting paperwork as to where you are spending the money. Bad Credit Loans also offer Short Term Loans. If your credit history is bad due to a default, judgement or blackmarks you may still be eligible for a loan with no credit check. 

A short term loan is a reliable and flexible financial resource. In times of emergencies, a short term loan can prove to be your saving grace. Unlike traditional loans, you can access the money within 24 hours. Pay it off in just a few weeks or months. Short term loans don’t require collateral. If you have missed payments your assets are still safe.

How should I choose a lender?

There are multiple online lenders promising cheap interest rates, low fees and high amount of loan. But, don’t be fooled, some of them are either scams—asking for advanced payments before releasing the money, or those that charge hefty interests and fees, plus hidden costs that could probably put your deeper into debt.

Look for a credit provider with the following characteristics:

  1. It provides equal opportunity for affordable loans for people with good or bad credit. A stable lending company profits from offering quality products and reliable service, not because it squeezes money from its borrowers.
  2. The loan process is hassle-free. If you qualify, the lender would tell you right away and will make the money available in less than a week. It has a reliable screening system and credit evaluation criteria that allows it to screen creditworthy applicants as quickly as possible.
  3. It offers affordable interest rates, knowing that all borrowers—those with an excellent record or those with bad or no credit record at all must be given reasonably priced loan products to help them out in times of needs.

Now you know the short term loans facts, enquire with Australian Lending Centre to receive professional advice.

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Short Term Business Loans

Are Short Term Loans a Good Option for Small Business Owners?

short term business loans||inventory||high interest rate short term loans
short term business loans inventory high interest rate short term loans

It goes without saying that a business is doomed to go under without proper funding. Small companies are more prone to dying out, at least in the beginning, if funding isn’t injected into them. If your small business is however growing, you may also need funding to help expand your operations.

In both cases, a short term business loan may be your saving grace.

What are short term business loans?

A short term business loan is a fast and flexible loan type, that can help improve your business cash flow. Short term business loans are typically quick to access and require minimal documentation. They are generally used for the following reasons;

Cover a business initial start-up costs

  • Pay staff
  • Purchase inventory or equipment
  • Pay for emergency situations
  • Purchase stock
  • Pay BAS or Tax Payments
  • Working Capital
  • Marketing or Advertising.

The benefits of short term business loans

Quick funding

Short term loans provide immediate aid to business owners that need it. The process is quite short, and the requirements are easy to fulfill. To give you a hint of how quick the funding is, the approval period of a short term loan can be 24 hours.

That, of course, does not apply to a large loan. Bear in mind that you can use this money to seize some opportunities; they’re not only for worst-case scenarios (going bankrupt or risking closure, for instance).

They are given to people with bad credit score

Not only are these loans given in a matter of hours (depending on the policy of the lender, really), but they are handed out to people who would be rejected by banks on account of their low credit score.

In this light, short term loans are life-savers. Given that they are short-term, creditors know that you will be able to pay the loan back, even if your credit score is a little low.

Short term business loans can be given for a variety of purposes

You can use the money from a short term loan for any business-related expense. This may include; an investment into a product or service that will better the business such as a marketing campaign. No matter what you need, you’re set with a short term loan.

Drawbacks of Short Term Business Loans

Smaller sums of money

Short term business loans may not allow you to borrow large sums of money. For example, If you need to borrow $50,000 you may not be eligible for a short term business loan. Bigger sums of money are not given out as a short term loan because of the nature of the loan, which has to be repaid in less than one year.

High-interest rates

Many lenders know that, once you’re looking for short term loans, you’re probably in dire straits. Unfortunately, this generally translates to higher interest rates. It is therefore important to do your research and make sure that you find the right lender. This way, you can at least make sure you’ll be going with the one that will take the least from you.

Other strings attached

Apart from the high-interest rates, you may be required to pay some other additional fees imposed by the lender (depending on each lender).

Risk of losing the collateral

Short term loans are usually secured by collateral, even though they’re basically to be repaid within a few months. Should you default, you could lose your car or whatever it is you secured the loan on.

People seem to think that secured loans are so much better than their unsecured peers. If you are 100% certain that you can repay the loan, consider a secured loan.  If possible, always get short terms loans without any collateral. There’s no way you will default on a loan like this. It’s almost impossible, given that the sum of money you’ve borrowed is quite small.

Loans with short term make sense for small business, but they also have some unpleasant downsides. If you have a financial advisor in your company, it would be a good idea for you to consult with him/her before making a decision. If you don’t have an advisor, you can speak to one of our expert loan consultants at Australian Lending Centre.

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Short Term Loans

Cash Advance With Payday Loans

Payday Loans Australia payday loans australia
Payday Loans Australia payday loans australia

Cash advance payday loans may look like a great option, but there is a downside. Your bills may be piling up, you may need to pay your car rego, fix a car, or pay for a medical bill, but you haven’t been paid yet? A payday loan seems like a simple solution.

If you are in dire need of quick cash, there are options available. One such option is cash advance with payday loans.

What are Cash advance payday loans?

Cash advance payday loans are high-cost short term loans that offer quick and convenient access to cash. If you are in need of cash to pay for upcoming bills; then a cash advance can help you get sorted fast.

Whilst some people may see payday loans as their quick fix to financial stability, there are however opposing views. Here are some of the advantages and disadvantages associated with cash advance, payday loans.  Take a good look at these and weigh if a payday loan is good or bad for your financial health.

Advantages of cash advance payday loans

  • Fast approval
  • Loans are available even for a high-risk borrower
  • Pay for emergency situations fast. Did your car break down? Is there an emergency field trip in your child’s school? Or, are you taking advantage of the big discount on equipment for your business? Use it any way you like it, cash advance payday loans can save the day.

As long as you can assure the lender that you can repay, you can get the money you need fast and you don’t have to worry about receiving notices that your utilities will be cut off because you missed the payment.

Disadvantages of payday loans

Payday loans usually come with very high-interest rates. These rates can come in the form of a flat fee or a certain percentage of the cash advance payday loans. For example, a cash advance lender may charge 20% per $100 borrowed. This means that the borrower has to pay $20 in interest on a monthly basis. If you missed a payment on the first month, the interest will accumulate and you’ll be paying more than your original debt as the time goes on and the debt remains unpaid. 20% may not be a big deal if you will pay it outright when you receive your pay for the month. But, if you took a loan 7 days before your payday, you will be paying a large fee for a 7-day loan.

If you’re borrowing against your salary, where will you get money to pay for your expenses before the next payday? It can lead to another debt until you can’t get out of it anymore.

Is cash advance loan a good idea?

A person has too much debt when he owes more than what he can afford to pay, simply because his income is lower than his debt, and his liabilities are greater than his assets. If you’re struggling with debt, another debt can either help you get out of it, or drag you deeper into debt. It is a choice you have to make, especially in the way you will use your money.

Better alternative to payday loans

When you need money for emergency use, you can turn to Australian Lending Centre for short term loans, which are a safer solution than payday loans. Whether you are going to use the money for business or personal matters, short term loans are easy and quick solutions that you can count on. You can get approved in a few hours and get the money faster than banks do.

Pay for personal or business expenses, invest and grow your money, by using Australian Lending Centre short term loans. It is a better option than cash advance payday loans. Contact the experts of Australian Lending Centre today.

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Financial Planning Financial Fitness Short Term Loans

Starting a New Job? Here’s How Short-Term Loans Can Help You

short-term loans

Congratulations on your new job! Whether you applied for this job for experience, for pay, or both, here’s how short-term loans can help you get started on the right foot.

Cover Job-Related Expenses

If you were laid off, or you just started working for the first time in your life, you’ll eventually realise that you must spend money in order to keep your job. That means you need to get ready for job-related expenses, such as:

Transportation Costs

Your new job may require you to use your personal vehicle or take public transport for work-related reasons. Fuel and bus fares can be pretty expensive, especially if you’re travelling a long distance to get to the workplace. Since commuting may not qualify you for tax breaks, it is best to discuss the possibility of reimbursements with your boss for work-related travels. You can also enquire at the tax department about job-related tax deductions, should any of the allowable deductions apply to you.

Accommodation/Travel Costs

Does your job require you to travel to various places in order to find new clients or meet potential investors? If so, it is advised to discuss the travel expenses with your employer. If there is a delay between reimbursement can leave you out of pocket so short-term loans can help with this. Whether you will have to pay for it first and be reimbursed later or if they will provide the money upfront every time you travel. Just in case you’ll have to shoulder the cost first, you can rely on short term loans for quick cash. But, always remember to bill your employer so that you won’t have to foot the bill all by yourself. Otherwise, you need to shoulder it and apply for tax deductions for job-related costs later.

Work Wardrobe

Working in style doesn’t have to be expensive. If you have a uniform at work, things would be easier. But, if there’s none, you need to find creative ways to look neat, clean and a little bit stylish. Looking good and being comfortable can boost your productivity simply because you like what you are wearing and you’re proud of it. A short-term loan can help cover these initial expenses.

Look for discount stores that sell high-quality garments at low prices. Choose clothes that can serve double duty. For example, if you’re in the corporate world, buying black pants, skirt (for women) or a jacket would be a great idea. You can match it with a white shirt/blouse and black shoes. Purchase an all-weather coat and great fitting jeans. A tote bag can be very useful too, it can hold your work-related items and you can also use it on casual days. For $1,000 you could easily buy yourself high-quality outfits that last; these items will get you through the first few months of your new job.

Pay Your Existing Debts

Do you have a variety of debts? Perhaps you’re dealing with a car loan, mortgage or a credit card balance.

When you run up a large credit card balance, it won’t be easy to pay it off. The longer it takes you to pay off the balance, the more it can cost you.  Make sure that you pay at least the minimum required amount on time.   Defaulting on your debts will not only destroy your credit rating, it could mean additional interests and fees, plus increased risk of bankruptcy. While you’re starting on your new job, try to stay in control of all your loans – including your utility bills.

Set Aside Money for Emergency Needs

Put money aside for emergency needs so that you won’t be in a vulnerable financial situation when an unexpected expense hits you.

Set a Budget That You Can Live With

Nothing is more challenging than setting a budget without money to work on. If you would like to stick to a daily budget, get a short-term loan first, and consider it as your first salary. Create a daily budget out of that amount (make sure that you are basing it on the actual salary you are expecting to receive) and follow it. Plan your day and budget your daily meals, transportation expenses, utilities, recreational activities, etc. If you’re fond of eating out, perhaps it’s about time to eat healthy home-cooked meals. You might be too busy to cook on a daily basis, so why don’t you prepare your meals weekly? Stock your meals inside the fridge and simply heat them on the weekdays.

Australian Lending Centre can help employees achieve financial independence. Learn more about our short-term loans by making an enquiry today!

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Short Term Loans

Best Ways to Use Short Term Loans for Consolidation

short term loans for consolidation||short term debt consolidation||debt consolidation

Short term loans are becoming more and more popular nowadays for an obvious reason: no one likes to drag on their payments. They want to get it over with as quickly as possible to be debt-free and considering that the application process is so smooth, this option is fairly convenient. You can also use short term loans for debt consolidation. Find out how here.

Moreover, these loans are great for those with bad credit, since they don’t need pristine credit rating to offer you a loan. The downfall, however, is that these loans have higher interest rates than the average loan. Everything “emergency-labelled” possesses some sort of risk, so in order to gain some security, lenders will raise the stakes to keep you paying.

But how can you use short term loans without burying yourself even deeper into a hole of debt? The answer is: use them wisely. You may contact our specialists on 1300 138 188 for a free consultation, if you wish. No matter if you are looking for a loan or some advice, we will do our best to guide you on the right path – and also help you avoid more payments than you can handle.

What Is Debt Consolidation?

Debt consolidation is the process of combining two or more loans into a single payment. If you’re asking yourself what difference would it make, think about it this way: with each loan, you have a particular interest rate to pay. As a result, the total payment in interest will skyrocket into space.

Granted, interest rates in debt consolidation may rise depending on the total sum; but if you can get at least 1% off the total interest, this will help you in the long run to save money – money that you can use on the payments for the actual loan.

helpful

How a Short Term Loan Will Help

Short term loans are there to help people in an emergency. As we may have mentioned, though, these types of loans are unsecured, and therefore, quite expensive. Since the lenders will be put at risk when they offer you money, they will have to turn to a high-interest rate to make sure that they are getting their money back.

Here’s a short list of the pros offered by short term loans:

  • One single payment: Nothing is more confusing than having to pay multiple loans to a lot of lenders. The risk of forgetting to pay one loan is very high, and before you know it, you’ll be staring at your credit history wondering why it looks so horrible.
  • Possible lower interest rate: There’s no absolute certainty that short term loans used for debt consolidation will offer lower interest rates, but let’s say that it’s a high 95% possibility. Used correctly, such a loan will have you paying less for each month.
  • Avoid credit score damage: By using short term loans to pay off your debt, you’ll be less likely to fall behind on your payments, and you will actually be able to stay on track. Over time, this will work to “heal” your credit score, and you’ll be able to gain credibility if you want to go for a regular loan in the future.

You may also want to keep in mind that a short term loan will be helpful only if you take out one of them. The more loans you take out, the more you will have to pay in interest. The solution would be to find some short term loan that will cover your entire debt, without having to resort to other financing sources.

Here’s how the whole process works: you get a short term loan, and the money that you will get will be used to pay off your other debts early. Not only will it help make things easier for you, but if you already had issues with late payments on the previous loans, this option will help fix your history.

avoid-traps

Avoid Getting into a Trap

The secret to avoid getting yourself trapped into a debt cycle is by borrowing exactly the amount that you need, and no more than that. Many people make the mistake of borrowing more than they need, just in case they need it. However, that “just in case” will have you paying more than you were supposed to in interest, which beats the purpose of consolidating. Basically, you are borrowing so that you can make things easier, not over-complicate them.

It’s important that you borrow responsibly so that you do not have any issues paying it back. Borrow from just one lending company to avoid the clutter of interest fees, and before you know it, your payment will be made without any further issues.

In conclusion, short term loans can help you if you want to consolidate your debts into one payment. The only requirement is that you need to be smart about it and not stretch more than your rope can handle. Enquire today and get short term loans for consolidation with Australian Lending Centre.

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Short Term Business Loans Self Employed Short Term Loans

What’s the Deal with Short Term Loans for Your Business?

What’s the Deal with Short Term Loans for Your Business?
What’s the Deal with Short Term Loans for Your Business?

As a business owner, you’ll often find yourself in need of financing and may be asking about short term loans for your business. Depending on your needs and circumstances, you could choose from short, intermediate or long term business loans.

In today’s post, we will discuss short term business loans, the instances in which they should be used, and the terms you have to meet to qualify for them. So, let’s get started!

Defining short term loans for your business

Loans that are classified as short term loans typically have a maturity of one year or less. In other words, they have to be repaid to the lender within that fixed timeframe. Nevertheless, there are short term loans that can be repaid much quicker than that – in approximately 120 days.

The primary reason why many business owners choose loans with short maturities is that they facilitate immediate financial help. What is more, they don’t require making a long-term financial commitment, which can be rather stressful, especially for start-ups.

The Purposes of Short Term Loans for your business

What are those instances in which short term loans are actually helpful? It’s always recommended to assess your circumstances, whenever it comes to making a financial decision. That being said, short term loans can be convenient for seasonal businesses, in particular. For example, retail firms that have to cope with inventory for the holiday season.

seasonal-business

Such a company might require a short term loan in order to purchase inventory in advance for the holidays. A business in this situation might be unable to make repayments until the end of the holidays. In such a scenario, a short term loan is an excellent option for businesses.

Nevertheless, this isn’t the only scenario in which a short term loan is a good choice. If a firm intends to increase its working capital in order to cover potential temporary deficiencies, a short term loan will meet this purpose.

On a different note, if you are waiting for credit customers to cover their bills, you might need financial support in order to pay your own bills. Additionally, such a loan could aid you to even your cash flow, especially if you own a cyclical firm.

What You Should Know About Qualifying For Short Term Business Loans

Moving on to qualifying for a short term business loan. For starters, you’ll have to collect comprehensive documentation for your application. Most of the times, the lender will require a record of your payment history that encompasses the loans you had in the past, payment records to current accounts, and, of course, your firm’s cash flow history for the last three to five years. Of course, these requirements vary. Additionally, you should be prepared to supply your income statement for the amount of time your lender requires it. Take into account that the documentation you gather should be in a professional format.

On a final note, your qualifications for short term business loans will establish whether or not the loan will be secured or unsecured.

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Short Term Loans vs. Long-Term Loans: Which Is Better?

Typically, short term loans have higher interest rates, in comparison with long term ones. Nevertheless, in a recessionary economy, the interest rates on short term loans could be more advantageous.

In general, short term loan rates are determined by the prime interest rate and some premium. The lender will establish the premium depending on the risk your company poses to them. That is concluded after carefully analysing the documentation submitted for the application process.

Moreover, the interest rate on short term loans can be calculated in a number of ways. It’s best to be informed about the current prime interest rate so that you are knowledgeable when you negotiate the interest rate on your loan.

Securing a short term loan as a small business or start-up is a possibility. That is primarily because short term loans feature fewer risks than long-term forms of financing, due to their maturity. Nevertheless, it’s worth noting that, in the case of start-ups, most will qualify only for secured loans, which would involve offering collateral to secure the loan with the lender.

On a final note, the availability of short term loans to start-ups and small businesses is crucial to the economy. Without short term financing, companies couldn’t operate properly, nor could they expand.

If you’re looking for reliable funding for your business, you should get in touch. Australian Lending Centre supply suitable deals for our customers. Our focus is to assist Australian businesses, helping them find the ideal loan options for their needs and circumstances.

Conclusion Regard short term loans for your business

To conclude, short term loans for your business can be beneficial to both start-ups and businesses that have been operating for years. And the good part about them is that almost every business can get one. If you have other questions on the topic, you can leave them in the comment section below!

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Short Term Loans

Why Should You Consider Getting a Short Term Loan?

short term loans

Short term loans are there whenever you need a small sum of money for your emergencies. It is a great thing to know that if something unexpected happens and you don’t have the cash, you can rely on a lender to help you out of a tricky situation. This kind of loan is becoming more and more popular in Australia, thanks to the fact that is it easy to obtain and fast to get rid of. So should you consider getting a short term loan?

Short term loans are like money you borrow from a friend, but it comes with some fees and limitations. Do you have any other ways of getting money fast? If not, then this might be the best solution for your problem.

What Are Short Term Loans?

Short term loans come with a value between one hundred and ten thousand dollars. The attractive part of the short term loans is the fact that they come with a short payback period. A short term means that you won’t pay too many interest rates and fees.

Anyone can have access to short term loans, even people who have bad credit. The loan terms can last anywhere between sixteen days to a year. The loan is easily approved, and the lending process is quick.

Who Should Consider Getting A Short Term Loan?

The main eligibility criteria are not very complicated. You need to be at least 18 years of age and have proof of a regular income. Don’t forget about that 100 points identification check.

You can use this loan however you see fit. Some use this loan to pay a pile of bills that they couldn’t get under control. Others use this type of loan to pay unexpected fees or bills.

unexpected-fees

The most attractive thing about getting short term loans is that you don’t have to dig into your money at this moment to pay something. Do you have to pay something until payday? No problem, a short term loan can easily help you with that.

Don’t want to use your credit card or cannot use it to pay for something? Short term loans can do that. Did your employer delay your payday? Don’t wait; apply for a short term loan. Want to go on a shopping spree but don’t have the money? Request a short term loan.

You can use a short term loan to finance your holiday if the time is right. Don’t wait until you save enough money. You might miss an opportunity by not acting now.

Another advantage is that a short term loan can help you fix that bad credit you have – provided that you make the payments on time. It really is a win-win situation. Use the money for your emergency situation and also improve your bad credit.

If you have bad credit, then it is a bit more challenging to get a loan. But do not weep, since plenty of lenders will approve your application if you bring collateral. They need some reassurance that the loan will be paid. Completely understandable, don’t you think?

Since technology is used in every domain to make our life easier, banks came up with a very interesting idea to simplify and accelerate the process of applying for a loan. Nowadays, you can apply online for a loan, from the comfort of your home, from the office or your car, and the money is quickly transferred into your account.

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Types of Short Term Loans

When it comes to short term loans, you have to choose between payday loans, unsecured short term loans, and secured short term loans.

  • Payday loans are loans that can go anywhere between one hundred and two thousand dollars.
  • Secured short term loans require that you connect an asset to a loan in case you default.
  • Unsecured short term loans require no assets, but the requirements are stricter than the secured ones.

Things to Look Out For

Be careful of lenders that will approve a short term loan that you cannot afford. Those irresistible offers might do you more harm than good. Also, because they have a short term of payment, there is a catch: they come with high rates and fees. So, there is a risk and you might find yourself in bigger trouble than before.

Conclusion

Short term loans can be of much help, but the actual result, good or bad, is only decided by you. Should you consider getting a short term loan? If you want to use them to pay debts every month resulting in an unhealthy financial habit, then you better stay away.

If you just need a bit of financial help, then you can contact us on 1300 138 188 or fill out our enquiry form for a free consultation. With us, you can find a loan with accessible fees and rates. Don’t hesitate to call us if you have more questions and ask our experts to help you choose the best option for your financial situation.

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Short Term Loans

When Short Term Loans Make Sense

Bad Credit Personal Loans

If you need immediate cash and you have no financial documents to submit at this moment, short term loans make sense.

Don’t get us wrong. Using credit cards to finance a purchase is sensible as long as the repayment period is short; however, using it as a financing instrument is another thing. Stretching fees to a longer period of time would also increase the financing fees.

Personal expenses

Short term loans are commonly used to pay for personal expenses. You can access the money quickly which is very helpful in times of emergency. It has a shorter time span too, so you don’t have to worry about accumulating interests. You might say, “But the interest rate is higher than long-term loans”. It depends on the lender. Look for short term loans with flexible terms that would allow you to make affordable payments on the balance of the loan and the interest payments.

Personal loans are commonly used to pay for the money you need when you don’t have to wait for the lengthy loan approval process. Not having collateral to secure you debt is not a problem as well. So, instead of applying for secured loans that requires collateral, it is more convenient and shall we say, safer to get short term personal loan which can be granted without risking any of your property.

Investment

If used wisely, you can use your short term loans to grow your financial portfolio and prepare for your retirement. That includes purchasing investment property which is one of the safest investment vehicles out there. You can rent it out as a quick source of income, and the property may appreciate in value over the years, and you can build your equity and be in a better financial situation in the coming years. With your home equity you can have a quick source of income for medical emergencies, home improvements, business capital or even school expenses for those with kids.

Business owners who don’t want the lengthy loan process may avail of short term loans to grow their business. You may use it as a financial fall-back plan to make a smoother start when your business is in the rocks.

Consumer education

A short term loan can help you get what you need quickly but remember that while you may obtain it quickly, paying it back is the hard part. You may find yourself sinking into overwhelming debt if you don’t have a proper repayment plan. Consumer education is important especially in terms of compounding interest and payments. Climbing out of debt requires commitment and proper planning. But, you cannot settle your debts easily if you have no adequate knowledge about prioritizing payments and debt reduction. You must also know what to do when you cannot make a payment.

Australian Lending Centre provides short term loans to individuals who need funding fast. Our certified specialists can quickly assess your financial situation, even if you have poor credit history and low documentation. So, whenever you need cash flow injection for your business, investment deals or personal needs, you may contact us and our team will do our best to help you.

Call us today at 1300 138 188!

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Short Term Loans

Short Term Loans vs Credit Cards: Pros and Cons

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Short Term Loans vs Credit Cards

Are you running short of cash? If you know how to make ends meet, you surely would find ways to overcome it without getting any debt. But if the need for money is drastic and necessary, you may not have any other choice but to apply for financing. For sudden and emergency needs, you may consider two logical and reliable options: short term loans vs credit cards. Which of the two should you choose? Let’s weigh up the pro’s and con’s of both.

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