Welcome to Short Term Loans With Cockle Finance

Here at Cockle Finance, a decision on whether or not we’ll be able to provide you with a short term loan will depend on a plethora of factors, from credit history to income vs outgoings etc. A short term loan can provide the perfect solution for both personal and business needs and upon approval, you’ll need to agree to pay the loan in question, back within a certain timeframe. 

Our team are here to provide you with all the advice and guidance when it comes to securing a short term loan. They’ll also ensure you’re clear on exactly what’s involved when you take out a short term loan i.e. the potential risks, should you not pay it back in time.

Here at Cockle Finance, we want to make it clear that we’re a broker for short term loans, and not the lender themselves.

A short term loan is a loan that’s obtained or taken out in order to support either a personal or commercial need. A short term loan is a form of credit and involves a person borrowing capital that will need to be paid back; often incurring interest. All short term loans will have a due date when they must be paid back by – usually within a year from having the loan approved. 

Short term loans are great options for companies or start ups who may not necessarily be eligible for credit. Short term loans usually involve smaller borrowed amounts ranging from £100 to £100,000 in some cases. It’s worth noting however, that these types of loans can be suitable for personal needs, especially when individuals may find themselves with very sudden and unexpected financial needs.

As previously mentioned, short term loans must be paid off within a certain time frame, from six months to a year, however there are times this can be up to 18 months. Anything higher than this, time wise, will be considered a medium or even long-term loan.

We’ll always take the time to provide you with the necessary advice and guidance before you sign for any loan, however there are certainly a few considerations to make before applying or accepting a short term loan of any kind…

• Interest Rate – make sure you’re getting the best deal and are fully aware of the interest rate you’ll be accepting.
• Monthly Repayments – are you completely aware of the monthly repayments? Are you happy with what you’re agreeing to pay back each and every month for the full term of the loan?
• Total Amount – are you aware that with interest, you’ll be paying back more than you’re actually borrowing?
• Budgeting – are you able to continue these payments should you lose a portion of your income? Are you able to pay additional charges for late payments or even missed payments and early terminations?

We know that borrowing money can be a lifeline when an unexpected expense comes about. Here at Cockle Finance we want to make the process of borrowing money as safe as possible so that you can manage your cashfl0w and loan repayments.

There are a range of finance options available for people who want to borrow money. Doorstep loans are a great finance option that is well suited to short term borrowing. Find out more information about a doorstep loan here.

What is a short-term loan?

A short-term loan, as the name suggests, is a type of credit that is typically repaid within a short period, often less than a year. It’s designed to offer quick financial relief in emergencies or to help cover temporary cash shortfalls. The specifics of short-term loans, such as the amount, interest rate, and repayment terms, can vary significantly depending on the lender, borrower’s creditworthiness, and local regulations. Short term loans are in contrast to short to long-term loans like mortgages or car loans, which are typically repaid over several years or decades. Short term loans can come in the form of payday loans, instalment loans, cash advances, or other forms of credit.

How much can I borrow with a short-term loan?

The amount you can borrow varies by lender, but short-term loans typically offer smaller amounts than long-term loans, often ranging from £100 to several thousand pounds.

What is the interest rate on a short-term loan?

Short-term loans often have higher interest rates compared to long-term loans. The exact rate can depend on several factors, including the loan amount, and the repayment term.

How quickly can I receive a short-term loan?

Short-term loans are often processed quickly, sometimes within the same day of application. It is important to note that the exact timeframe can depend on the lender and your personal circumstances.

What are the eligibility criteria for a short term loan?

Short-term loans often have less stringent eligibility criteria than longer-term loans, which can make them appealing to people with less-than-perfect credit histories. However, this accessibility comes at a cost, as these loans typically have higher interest rates and fees compared to traditional, longer-term loans.

Can I get a short-term loan with bad credit?

Yes, it is possible to get a short-term loan with bad credit, though it can be more challenging and potentially more expensive. Many short-term lenders specialise in lending to individuals with poor or no credit history. These lenders often place more emphasis on your income and ability to repay the loan than on your credit score.

However, the trade-off for this accessibility is often higher interest rates, which makes these loans much more expensive. Short term loans can also potentially lead to a cycle of debt if they’re not repaid on time, as late payments can result in additional fees and increased interest rates.

What happens if I can’t repay my short-term loan on time?

Failure to repay a short-term loan on time can result in additional fees and increased interest. If you think you might struggle with repayments, contact your lender as soon as possible to discuss your options.

Is a short-term loan right for me?

This depends on your personal circumstances. Short-term loans can be useful for handling unexpected expenses, but due to their high interest rates and fees, they may not be the cheapest way to borrow money. Always ensure you can afford repayments before taking out a short-term loan. Remember, if you’re considering a short-term loan or any form of borrowing, it’s important to understand the terms, make sure you can afford the repayments, and consider seeking independent financial advice if you’re unsure.