The benefits of a short-term loan for both businesses and consumers

Here, we look at how debt finance is a popular choice for companies and individuals alike.

Debt finance, in particular the short-term loan market, is a popular route for cash for both individuals and businesses.

A suitable circumstance for a short-term loan for a business might be that a company requires investment in a piece of equipment, or some temporary staff, and doesn’t currently have the funds available.

Another example might be a situation where you have a large order to fulfil but do not have the cash to purchase stock.

In this case, it might be sensible to take out a short-term loan that can be paid back when your invoice is settled by your customer.

There are a wealth of options in the marketplace for such a service, and the business owner can often feel spoiled for choice.

Consumer loans

On the consumer side of the market, a short-term loan might involve borrowing money (usually a larger amount than a typical payday loan) and generally repaying in instalments over a short period of time.

As much as we try to save money for a rainy day, we can never be sure when an accident or emergency is going to occur that leaves us in need of funds.

It is recommended to have a few months of your salary available as an emergency fund to pay for things such as a burst pipe, car repairs or dental bill, but this is not always as easy as it sounds.

It’s very common to apply for a short-term loan in order to get the money you need, and get your finances back on track.

As an individual, it’s important to choose the right short-term loan provider, a lender that can assess your situation and give you a clear, quick, and fair decision as to whether your application was successful.

A lender that is prepared to speak to their customers if necessary is also a welcome touch. And when your application is approved, you want to be able to have the funds sent to your bank account, quickly, within an hour, even.

Loans provided should be transparent and clearly explained to the customer. For example, Mr Lender are a UK-based leading short-term lender, and they assess all applications carefully and conduct thorough affordability checks to ensure all customers are lent to responsibly.

The company also recently won two awards in the 2016 Consumer Credit Awards – Best Short Term Loan Provider and Customer Service Champion. And with over 19,000 positive reviews on, this is a direct lender you can trust for your short-term loan requirements.

Ben Lobel

Ben Lobel

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

Related Topics

Leave a comment