We often need fast money at times when an emergency arises. Short-term loans can help tend to this need. Therefore, with the assistance of short term loans Singapore, we can fulfill our immediate monetary requirements. Below we discuss and look into what short term loans is and how it can benefit us in our daily lives.
Significance of short term loans
Short-term loans are very much like long and medium-term loans. However, the period of repayment is shorter in the case of short-term loans. Normally, this repayment period lasts for a year. But, a legal money lender in Singapore can also view a repayment period of fewer than two years as a short-term loan.
The best advantage of getting a short-term loan is that while taking the loan, you are aware that the loan needs to be paid off within a period of a year. An individual can also pay off the loan within ninety to one hundred twenty days.
What are the different kinds of short-term loans in Singapore?
For your convenience, we have listed the different kinds of short-term loans in Singapore.
- Credit lines
Credit lines resemble business credit cards. There is a credit limit that one agrees upon. When a requirement arises, the borrower can depend on the credit.
Here, you get low-interest rates in comparison to credit cards. There is a flexible payment period. Credit lines have more flexibility when you compare them with the list of best personal loan in Singapore.
- Instalment and online loans
Instalment and online loans are the most effective. Here, you have the convenience of getting everything done online. The application and the approval of your loan are performed remotely.
Its efficiency is also because of its speed of processing. After a few minutes, your money gets transferred to your account. You will also have the flexibility to clear your due payment on a monthly basis. For this, you can get fast cash without much trouble.
- Merchant cash advances
Merchant cash advances are similar to the cash advances that depend upon a business’ sales of credit cards. With the help of this loan, you can get the cash amount deposited to your bank without much trouble.
The repayment of such a loan is made by giving the moneylender access to the credit of the business or an individual. There is a withholding of a percentage of the daily receipts of your credit card. This is done until the cash advance is completely paid off.
- Payday loans
Payday loans furnish you with quick money, but they have a higher interest rate. You will have to pay off this interest and the loan amount at once. Moneylenders in Singapore take the money from your bank account on the days when the payment is due.
- Invoice finance
Invoice finance is a short-term business loan. If a business wants to take a loan from a bank, it can take the help of its customers’ invoices. This kind of loan relies on invoice factoring. Through this, you can get customer invoices and then sell them to a bank from where you want to get your short-term loan.
The bank will then offer you eighty percent of the money of your customer invoice. Hence, the customer can pay off the loan to the lender, and after deducting the sum you owe to the bank, they will give you the rest of the balance.
Advantages of short term loans
- Quick access
You can easily get hold of a moneylender or a bank from where you can get a short term loan. As we stated earlier, you can gain quick access to a short term loan by applying for it online.
For a licensed moneylender in Singapore, you will need to appear for a face verification before your short term loan amount is deposited into your account. This is done to prevent any kind of identity fraud.
- Have more flexibility
Short term loans can help you with your emergency needs while giving you better interest rates. Moreover, even the repayment period is much more flexible for short-term loans. As a result, you will have better management while repaying your short-term loans.
- Easy to obtain
Credit checks have more leniency in the case of short term loans which means you will be able to obtain your loan without having much difficulty. The application process is also a lot quicker for short-term loans. And there will not be any need for any collaterals.