Why is a Short-Term Loan Better Than a Long-Term Loan?

Short-term loans and long-term loans each have their specific uses. Long-term loans are, of course, necessary for the bigger purchases in life, such as property. However, when it comes to addressing more immediate financial problems, short-term loans may be the best option.

Whether you need an extra bit of cash to cover unexpected bills, money for a special occasion or you’re simply filling the gap between paydays, short-term cash loans are the best bet. You can pay them back in a few weeks so you don’t have to stress over potential impacts to your life, along with a host of other benefits.

 

Short Term Loan Benefits

 

It’s Cheaper

In most cases, a short-term loan will be cheaper than relying on credit cards, overdrafting your bank account or facing late payment fees on bills. They can also cheaper in terms of the overall interest you pay compared to a long-term loan, depending on the situation.

The interest rates on short-term loans are often higher than other types of loan, which has lead to the misconception that they are more expensive. However, because you’re paying back the loan over a shorter period, there is far less time for interest to accrue.

The lower interest rate on long-term loans adds up over time with no fixed end date or no way to tell how interest rates might move. With short-term loans, interest rates are fixed, you know exactly how much you will have to pay back and you can be free of the debt within a few weeks.

 

No Collateral

Unlike long-term loans, you don’t have to offer up any of your assets as collateral when applying for a short-term loan. That means no matter what happens to your financial situation; , you’ll never have to worry about debt collectors coming after your house, car or any other valuables.

At Chequers Finance, we grant our short-term loans based on your income rather than asking for collateral. It’s all part of our philosophy of responsible lending. We ensure borrowers can afford the loan and that they understand their obligations. 

 

No Credit Checks

A short-term loan with Chequers Finance doesn’t involve any credit checks. This means any financial mistakes you made in the past that can prevent you from borrowing on a credit card or being approved for a long-term loan don’t impact you in the same way.

At Chequers Finance, we understand that previous financial hardship can arise out of unpredictable situations that aren't your fault and don’t necessarily reflect your ability to pay a loan now. That’s why we grant loans based on your ability to pay back in the future, not in the past.

 

Quick and Stress-Free

If you need money fast, then a short term loan may be the right choice. Unlike long-term loans, which can sometimes take days or weeks to process, you can be approved for a short-term loan within a few hours. It’s the perfect solution for financial emergencies.

A short-term loan is stress-free since your payments are fixed amounts and due at scheduled times.

 

Need a Short Term Loan?

Chequers Finance offers short-term loans in New Zealand, ranging from $100 to $1000. If you’d like to apply for a loan or find out more, get in touch with our team by visiting one of our branches, calling us on 0800 243 783, or contacting us online.

Back to News

Short-term loans and long-term loans each have their specific uses. Long-term loans are, of course, necessary for the bigger purchases in life, such as property. However, when it comes to addressing more immediate financial problems, short-term loans may be the best option.

Whether you need an extra bit of cash to cover unexpected bills, money for a special occasion or you’re simply filling the gap between paydays, short-term cash loans are the best bet. You can pay them back in a few weeks so you don’t have to stress over potential impacts to your life, along with a host of other benefits.

Visit us at any of our branches:

Auckland Rescue Helicopter Trust Corporate Supporter 2013 / 2014

Chequers Finance Hamilton

Caro House
137 Alexandra Street
Hamilton
Phone: 07 838 2939

Chequers Finance Henderson

334 Great North Road
Henderson
Auckland
Phone: 09 836 6201

Chequers Finance Papakura

155 Great South Road
Papakura
Auckland
Phone: 09 299 7883

Chequers Finance Otahuhu

13 Criterion Street
Otahuhu
Auckland
Ph: (09) 276 4384