Short Term Loans Uk

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Short Term Loans
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Short term loans are essentially cash advances
that are given to people in times of immediate
need of cash and that is one of the main reasons
why these loans are becoming increasingly
popular. There are different purposes for a short
term loan and the number of applications has
increased in the last few decades. The financial
uncertainty has added to the problems that the
people are facing today and as a result of that,
it has increased their dependence on financial
institutions. 
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 Long term loans are not affordable for many and
many people belonging to the lower classes of
society do not have access to these lines of
credit. These short term loans are now finding
their importance amongst college students
applying for scholarships, people paying for
their mortgage, covering business needs and many
others.
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Let us discuss some of the important purposes
that short term loans can be used for Short term
loans for students are primarily used for
students who have cash flow problems due to
unexpected situations that may arise. In order to
apply for short term loans, a student must
understand the terms and conditions before
applying for one.
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• Short term Loans for College Students
• Short term loans for college students have a
  limit of upto 500 pounds. There are certain
  students who want to receive cash-in-hand usually
  have a limit of upto 100 pounds. A higher amount
  is usually paid via cheque or direct deposit.
• Students must be admitted to a degree program,
  utilizing 6 credit hours as an undergraduate
  student and 5 hours as a graduate student, during
  the term of the application.

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• If the application for financial aid has not been
  completed, the student must have verifiable
  employment or co-signed with another employer to
  ensure repayment of the loan, once the term has
  expired.
• Short term loans for educational fees are usually
  not allowed.
• No short term loans will be given against
  expected financial aid by a student. The
  financial aid needs to be completely approved by
  the authorities in order to make the student
  eligible for the loan.
• Students are always allowed 2 short term loans
  per semester and this is mainly because students
  shouldnt find themselves into the habit of
  borrowing money.

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• Short term Loans for mortgage properties
  (bridging loans)
• The bridging loans market has grown steadily in
  the recent years, as borrowers try to complete
  their property purchases to secure their dream
  house.
• Borrowers usually pay a high price for bridging
  loans with arrangement fees of one per cent in
  addition to one per cent per month.
• This could mean 10000 pounds in fees and interest
  in just the first month. The bridging loan could
  be for as short a period as 2 months, it could
  rack up 20,000 pounds.

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• There are different ways of deferring payments
  and especially when your home is at stake, you
  could sell your home, pay off the mortgage on
  your existing home and cover the debt of the
  future home by applying for a loan with a smaller
  interest fees.
• They are an expensive source of finance and the
  Financial Conduct Authority has expressed these
  loans as one of the last resorts for borrowers.

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• Short term Loans for Small Businesses
• Short term loans are helpful to businesses,
  especially retail businesses that are seasonal in
  nature. Such a business need a short term loan
  usually during the holiday season, and this loan
  is repaid at the end of the holiday season.
• Other uses for short term funds are to increase
  the working capital so that you are able to meet
  your business needs. This is because it is
  important for you to have enough capital for your
  payrolls, for paying your bills and so on.

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• The interest rates on short term loans are
  usually higher than long term loans but in
  recessionary times, the interest rate can be
  lower. Short term loan rates are usually based on
  the prime interest rate plus premium.

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• Start-ups find short term loans a more feasible
  option than long term loans and this is mainly
  because they are considered less risky than long
  term loans. Start-up firms have to present
  extensive documentation to the lender such as the
  project cash flow statements for the next 3-5
  years along with the anticipated financial
  statements for the time period of the loan.
• It is essential to understand that small
  businesses find it extremely difficult to operate
  without short term loans and this is needed for
  an economy to operate smoothly as start-ups are
  always strapped for cash and do not always have
  money.

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In order to qualify for a short term loan, it is
essential to present comprehensive documentation
to the lender whether it is a bank, a credit
union or another financial institution. It is
natural for a lender to ask for your earlier loan
repayment history, as it builds confidence in the
lender and also gives him an idea of how quick
you are about your repayments. A lender also
considers your businesss functioning and how
regular you have been about your payment of
bills, payment to suppliers, and payment to
employees.
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All these factors contribute to whether you can
get the loan or not. Businesses have found short
term loans to be an excellent source of finance
and have found these loans to be a blessing
during season times, when they require the extra
cash to finance their immediate needs.
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In conclusion, short terms are considered more of
a blessing than a curse in difficult times and
are being considered by people belonging to
different walks of life. Short term loans have
been seen as an opportunity by many financial
institutions to bridge the gap between the lender
and the borrower, bringing short term finance to
many borrowers is an ideal opportunity to keep
the economy in check, as it reduces the debt
cycle.
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The scrutiny of applications also needs to
continue, as it leaves no room for fraudulent
practices adopted by either side. All in all,
short term loans are here to stay.
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For more information go here
www.trueblueloans.co.uk
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Thank You