When people need a small personal loan it is usually because they have some kind of financial emergency that needs to be solved before the next time they get paid. This could be anything from the need to pay a bill that is due tomorrow to having the cash on hand to fix your car so that you can get to work.
Fortunately, if you find yourself in this kind of situation these days there are lenders who can approve you for, and fund, an online short-term loan within just a few hours, sometimes less, even on a day when your local bank’s High Street branches are closed.
How Can Lenders Fund an Online Short Term Loan So Quickly?
If someone writes you a cheque it is normal that it takes a few days to clear and that you will not be able to access all the funds from it right away. And if you apply for a personal loan from your bank and are approved it can take days, if not weeks, before you receive your loan funds.
With all of this in mind, many people wonder just how lenders who offer best short term loans manage to get the money into your bank account in as little as a few hours, even at weekends or on Bank Holidays in some cases.
The answer is that these companies send your money via instant wire transfer, something that has been made possible since the advent of the Internet. The transaction can be made in just a few minutes from the lender’s end.
The only delay you may experience in receiving your online short-term loan funds is if your bank does not post these transactions automatically. Some banks only post transactions once a day – sometimes at midnight, sometimes first thing in the morning. In addition, some banks do not post deposits to an account at the weekend, so before you apply for an online short-term loan you should find out what your bank’s policy is so you know when you will actually be able to spend your loan funds.
Who Can Get an Online Short Term Loan?
Every online short-term loan lender has a different set of acceptance criteria for granting a loan, but usually, you must be over the age of 18, a legal UK resident and have a verifiable source of income. Some lenders will consider only those with traditional employment income for a loan while others will accept those whose income comes from being self-employed. a few with even consider those receiving government benefits of certain kinds.
Some of the biggest users of these kinds of fast cash loans are those with less than stellar credit scores. Usually their bank will not grant them either a small personal loan or a line of overdraft credit so online short term loans are really the only place they can turn for a loan if a financial crisis comes up.
How Do You Apply for an Online Short Term Loan?
Most of the lenders who offer online short term loans have an easy application system that does not require you to fax or mail in additional paperwork. The type of checks performed will also vary from lender to lender and while many will not run a traditional credit check they may want to verify your employment or other details. This is normally done very quickly though, and most online short term loans are approved within an hour at most, offering people the peace of mind that their current financial crisis is almost over.