Short Term Loans
How much money do you need?
Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
- Fast Quote
- Bad Credit Considered
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- 24/7 UK Service
What is a Short Term Loan?
A short term loan is a loan taken up for either personal or business financial reasons and usually has to be repaid with principal and interest over a repayment period of between six months to a year.
These loans are usually taken to solve a temporary problem of liquidity for a business, or for a person with a sudden need for finance
Are There Any Differences Between Short Term Loans and Payday Loans?
The tenure of short term loans is generally longer than that of payday loans. A short term loan usually has a flexible repayment schedule, over a period of up to a year. A payday loan as the name suggests is a loan obtained for a month or less, to be repaid on the next day.
The money you can borrow from a short term loan largely depends on the loan’s context and the ability of the borrower to repay. A payday loan is generally limited to the amount a borrower can repay within a 30 day period, based on their salary or wages.
How to Find the Best Short Term Loans in the UK?
While there are various ways to borrow money, the most effective way will always be to choose an online broker like CocoLoan, which is aiming to make your borrowing experience easier and quicker.
Fill out an easy online application form in just a few minutes, we then shop around and come back to you with the best deal we can get.
Once your basic information is sent to our partnered lenders, they’ll do a careful assessment before making a decision on your loan. You just need to briefly run through the details and confirm the terms, then digitally sign the agreement.
Within several minutes of signing the loan agreement, the money will be transferred into your bank account. The exact time you receive the funds varies depending on your lenders and payment policy of your bank.
Reasons to Work with CocoLoan
All Credit Considered
Although it can be easier to get a loan if you have a good credit history, you can still get a short term loan if you have a bad credit history or no credit history throuh CocoLoan. In some cases, this will result in a higher interest rate.
Same Day Cash Transfer
As soon as the loan is approved and you have digitally signed the loan agreement the money will be paid into your bank account almost immediately. It can all happen very quickly, and usually in less than a business day.
Loans Tailored to You
To save you time, we talk to the direct lenders and work out the best deal we can get for you. We make sure we understand your financial need so that the loan can be tailored to suit you with the best terms and flexibility.
User Info 100% Secure
Your personal information on the application form and details about the loan agreement are completely safe and will not be sold to another company, and we don’t allow other companies to contact you or try to sell you anything.
What Can a Short Term Loan Be Used for?
- A short term loan is designed to help to take you through a difficult or unexpected financial situation. Whatever the reason, it can help to put your mind at ease while your finances are sorted out.
- In business, it might be a temporary shortage of liquidity due to delays in debtors, payments, or demands from creditors, or it may be as simple as the need to invest in a piece of new office equipment.
- For individuals, it can be used to consolidate debts so that you only have one regular repayment instead of several, or there may be other reasons like a family wedding or buying a new car at a time when you are temporarily short of funds.
Can I Apply for a Short Term Loan with Bad Credit?
Generally speaking, short term loans are simply based on your ability to repay and service the loan. Bad credit is taken into account and usually results in a smaller loan amount and a shorter repayment period and in many cases, it also attracts a higher interest rate.
Frequently Asked Questions
Is CocoLoan a Direct Lender?
No, we're not a direct lender but an online broker. We help borrowers get connections with a long list of lenders we partnered with. We will take your application around to various lenders to get their approval and they will give you the money.
How Does a Short Term Loan Work?
Like any other loan, a short term loan is simply borrowing money and paying it back at a later date, usually with an interest charge. Unlike some other longer-term loans like mortgages etc, a short term loan is generally a smaller amount of money and has to be repaid over a shorter time period.
Will Short Term Loans Affect My Credit Score?
A short term loan can affect your credit rating in two ways.
- If you pay back the loan on time it will improve your credit rating and show you are a good borrower in the future.
- If you don’t pay back the loan despite repeated requests this will have a negative impact on your credit rating making it more difficult for you to borrow money again.
What Happens if My Application is Rejected?
If your application is rejected you should talk to your lender to find out why. If it is due to insufficient income you can try to reduce your debt level before applying again.
Another way is to offer a personal asset as security, whether property or a vehicle. You can also try to find someone who will act as a guarantor, provided they have sufficient income themselves.
Apply for Short Term Loans up to £5,000 Now!
A short term loan is a great way to solve a temporary cash problem and we make it fast and easy.
So apply online today!