Advantages and disadvantages of short – term loans
How do you get fast money without unnecessary paperwork and stretching? A short-term loan can be a recipe for resolving an acute shortage of funds in the short term. It is an easy and quick solution, which in addition to the undisputed advantages also entails certain risks. How does it work when it pays to reach for it and when is it better to avoid it?
Money in minutes
Approval within minutes. This is the biggest advantage of short-term loans. So if you need money to seal a hole in your budget right away, there’s no easy way. Especially when you consider the conditions that must be met before arranging the loan. They are not strict. You do not need to provide detailed evidence of your income or seek a guarantor. All you need is a clean register of distraints and insolvency.
You know the amount of all interest in advance
Then you can decide if you need a five hundred to cover a short-term loss of funds or a higher amount for a longer period of time. The terms of the short-term loan are very transparent. Before negotiating, you will know the amount of interest, the price for possible extension of the contract period or the amount of interest on late payment.
Beware of due dates!
Short-term loans are the domain of non-banking companies, so all the benefits described are outweighed by higher interest rates. But if you honestly repay, there is no need to worry about any pitfalls. The problem can only come when you are not able to handle the repayment. Indeed, late charges and fines are often in the tens of percent and are increasing very rapidly.
It is not assumed that you will take on short-term loans too often and regularly. You should always be sure that you can repay the loan. These are solely one-off loans. However, nothing prevents you from repeating this one-off event after a certain period of time if necessary. Conversely, non-banking companies can offer you more favorable terms at this point, whether lower interest or some additional services.
Bargain conditions with Small Lender
One such company that offers short-term loans is Small Lender. Here you will receive approval of the loan within 10 minutes from the moment you decide to arrange it. You can borrow up to CZK 20,000 and have up to 30 days to pay.
All this without checking the central register of debtors. There is no need to prove the purpose of the loan. The only examination awaits you in the insolvency and execution registers. All you need is a mobile phone to sign the loan, the contract is signed by SMS, and an ID card, a copy of which is attached to the application. If you have an account with the same bank as Small Lender, you will have money in your bank account in just a few minutes.