Banks offer a range of financial products from mortgages to personal loans, but one thing they generally fail to offer their customers is access to small amounts of cash for a short period of time, especially if you have a less-than-great credit history.

While you may be approved for a current account overdraft, many people are only allowed access to this type of cash flow injection if they have a good credit score, which means people who already have difficulty accessing mainstream financial products are yet again facing financial exclusion. Often, those who cannot get an arranged overdraft can end up using an unarranged overdraft which results in unavoidable fees and interest charges on a revolving basis.

What is a short term loan?

A short term loan is a form of high cost short term credit. It’s sometimes known as a payday loan or a bad credit loan. Short term loans allow a customer to borrow a small amount of cash, usually less than £1000, over a short period of time, usually less than 3 months. Payday loans act as a bridge to your next payday should you suddenly come across an emergency expense or you are faced with a temporary cash flow problem.

Payday loans are considered to have a high interest rate, however as you only borrow over a short period of time, your repayments can sometimes be cheaper than using an unarranged overdraft.

There are several lenders who offer short term loans, and many focus on lending to people with a bad credit history. Online bad credit loans tend to be the most popular way of borrowing money because the loan applications are often:

  • accessible 24/7
  • fast to complete
  • and the loan transfers are almost instant

So, who offers short term loans for people who are unable to get an arranged overdraft?

Typically, short term cash loans are available from direct money lenders – the largest market now being online. A lot of direct lenders are online because having online access to this kind of credit means it’s quick and easy for the majority of people to apply for a loan. It also saves time as you won’t need to go into a branch to make an application, like you might have to when applying for an overdraft.

What are the main differences between a short term loan and other bank loans?

The main differences between a short term loan and other bank loans is the amount you can apply for and the time over which you can borrow the loan for. As explained above, short term loans have a short loan period and usually you can only borrow a few hundred pounds. In contrast, a personal loan from a bank can often be in the thousands and have a loan term over a few years. Typically, this kind of credit is only available to people with a good credit history, and a good relationship with the bank.

Online short term loans also allow customers to cover small unexpected bills without taking out a huge loan. Even if the interest rate is lower on a larger loan, because you are borrowing so much more money, the overall repayment can often end up being much bigger.

Where can I get a short term loan?

If you do decide you need a short term cash loan, and you have exhausted any other option of making the payment without borrowing money, then the best place to look for a short term loan with a fast loan transfer time is online.

Loans at

We are an online direct lender which means if you get a loan with us, your contract is directly with us. The quote you get at the start of your application is the amount you repay on your repayment date. The application form is simple, and we make our lending decisions quickly and fairly, in line with the latest information available to us, which means you could have your loan transferred to your nominated bank account within just 15 minutes of making your application if you are approved for a loan.

While we understand that not everything always goes according to plan, failing to make your loan repayments on time can cause you serious money problems so you should only apply for a loan if you really need it, and if you know you can afford your repayments – regardless of whether it’s a payday loan, an overdraft or a personal loan from a bank.