There are all sorts of different loans available to us and we cannot know everything about every one of them. This means that we may find that we have specific questions about them. With some loans we might know more. This could be because we have used that type of loan before or that they are just ones that are more common and people talk about a lot more. Some loans which are less common include short term loans. These are newer loans and they are not offered by traditional lenders or high street banks. This means that many people may not have even heard of them. It is a good idea though, to get to know all about all of the loans that are available. This is because you never know what you might need in the future. When you suddenly need money, you might be in a panic and might not have the time to research all of the different loans that are available.
Quick to arrange
If you need money in a hurry then you might be looking for a loan that is quick to arrange. Sometimes this can be hard to find. Firstly, a loan will tend to have an application form and this can take a while to complete. You might need to find out all sorts of information and get forms and things to send off as well. If you do not like filling out forms you may even procrastinate doing this for a bit or just find it too overwhelming.
Once you have done this you will need to send it off and wait for it to be processed. Banks tend to only be open 9-5 on weekdays and so this can limit the time that they have to do this. They will also take time to process all of the forms and make a decision as to whether they are prepared to lend you money based on a credit check. Then they will let you know how much you can borrow. Then you will be able to state whether you are interested in having the loan and they will organise to send you the money which could also take quite some time.
Short term loans
With a short-term loan things are slightly different. Firstly, you will usually apply online or even over the phone. This can be a much quicker process and therefore you will be able to get it done sooner. They will try to ask a minimal amount of questions and you will only have to send them a few forms to go with it.
Some short-term lenders such as Emu are open all of the time. They have staff employed over night and at the weekends so they can process forms much more quickly. They also employ a lot of staff so that they do not get a backlog of forms and they can be processed quickly. They will only do a very quick credit check to make sure that you have an income and to check when you get paid. They will not worry about calculating a credit score and deciding if they want to lend you money, they do not worry about this sort of thing. They will let you know how much you can borrow very quickly. In fact they can do this so fast, that you might have a decision in minutes and you could even have your money within hours.
So, in answer to the question, short-term loans are quick to arrange compared with other loans. If you already have a borrowing method set up, such as an overdraft facility or a credit card then this could be even quicker. This is because you do not have to arrange anything at all. However, they may not work in the way that you need. For example, if you need cash, then if you only have a credit card, then you will have to draw it from an ATM. Even if you have access to one, the charges will be high as if you draw cash on a credit card you start being charged interest right away. With an overdraft, you will find that the interest is pretty high. With both of these you will need a good credit record to have them and not everyone has this.
It is worth always checking with the potential lender though, before you decide to take out a loan with them, as to how long it will take for you to get the money. You could find that it will vary quite significantly. If you need the money really quickly then obviously it will be critical that you pick a lender that can help you out with that. You will also need to be careful to make sure that you fill in the application correctly and that you send all the forms off so that you do not delay the application process yourself.