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Cash in your bank within 60 seconds of approval*

- It's possible with Nifty.

Tell me more!

*Only available for NPP enabled bank accounts

Short Term Loans Australia

short term loans australia

Getting Short Term Loans Australia

A short term loan is borrowed for temporary personal or business needs for funds. This loan is a type of credit that lends the borrower a capital amount.

The borrower has to pay back the amount and interest on it at a given due date, usually within a year from obtaining the loan amount. The loan amount ranges between $100 and $100,000.

Nifty is one of the leading providers of short term personal loans in Australia. In addition to that, Nifty is a responsible lender. You can apply for a loan online and get your loan approved in the shortest possible time.

What is short term lending?

A short term loan is an excellent option for startups and small businesses that are ineligible for a credit line from banks. In order to strengthen your business, you might plan to buy a new property, expensive equipment to improve your operational efficiency, or simply want to fill a cash-flow gap.

A short term loan provides access to new capital that, when used thoughtfully, helps increase your revenue. Make sure that you outline a clear strategy for how to use the obtained sum of money for your business growth.

Here is how short term lending can help businesses:

  • Business expansion when you require additional space, new equipment or staff for new business opportunities
  • Even out cash flow fluctuations
  • Act quickly when an opportunistic property or stock purchase knocks
  • Payout an outgoing business partner

These loans are also valuable for individuals who are going through a temporary, sudden financial need.

Why do people get short term loans?

There are many benefits to obtaining short term loans. Because the loan amount has to be paid back within about a year, the total interest incurs is lower than that with a long term loan.

Short term loans are less risky than long term lending because of a shorter maturity date. Borrowers can obtain the loan amount quickly without any hassle. The requirements for these loans are easier to meet.

You can borrow this type of loan if you have bad credit. In this way, you will not only get access to funds even with a bad credit score, but it will also help improve your credit score quickly. In addition to this, short term loans do not involve providing your property as collateral.

Types of short term loans

Here are the different types of short term loans you can borrow with examples:

  • Line of Credit (LOC)

In this type of financing arrangement, banks or a financial institution assesses the maximum loan amount based on the borrower’s creditworthiness.

The borrower can withdraw the loan amount in a lump sum or instalments as the need arises. Charges incurred for the borrowed amount, but not for the sanctioned amount.

Once the loan amount is paid off in full, the borrower can apply for a fresh LOC with the same amount. There is no fixed tenure for the facility until either party chooses to close the LOC. The interest rates are fixed for the entire duration and can increase if any default or late payment occurs.

Merchant cash advances

This short term loan is a cash advance that operates as a loan. The borrower pays the loan by allowing the lender to access his or her credit facility. Every time a borrower’s customer makes a purchase, the lender takes a certain percentage of the sale.

Payday Loans

These emergency short term loans are easy to obtain and can be offered even by high street lenders. In this type of loan, you have to pay the full loan amount and interest in one lump sum on the payday. For repayment, the lender withdraws the amount from the borrower’s bank account. 

Bank Overdraft

It’s a type of line of credit linked to the borrower’s existing bank account. The bank fixes the overdraft amount in advance. If there are insufficient funds in the borrower’s account, the bank extends additional funds, and the borrower pays bank charges for this facility.

Online or Installment Loans

This type of short term loan is easy to obtain because everything – from application to approval – is done online. You will get loan approval within a few minutes, and the loan amount is wired to your bank account.

Invoice Financing

Under this facility, a business borrows money against the receivables from its customers. For instance, a company has a large number of customers who take 20-30 days to make payments, or there could be late payments. To meet the instant liquidity requirements, companies choose invoice financing.

The lender pays money to the company, after deducting its fee as a certain percentage of the invoices.

How do I apply for a short term loan?

First, understand what you need a short term loan for. Could it really fulfil your needs? If yes, select the best lender and check whether you meet all eligibility criteria. If you fulfil all requirements, start with the loan approval process outlined by the lender. The process and policies may vary from one lender to another.

So make sure you familiarize yourself with all policies of your lender before applying for the loan. Follow the step-by-step process and instructions for a loan application. Most of the short term loan lenders approve loans within a day or even hours, facilitating you with instant money. 

Where can I get short term Loans Australia?

Many financial institutions offer short term loans. These institutions include small non-bank lenders, community leading associations, and not-for-profit lenders. Moreover, peer-to-peer lending has also gained popularity in Australia these days.

If you are looking for a quick short term loan for your personal or business needs, online lenders like Nifty make the process easy for you. Nifty provides fast outcomes in a hassle-free manner and with an easy application.

Conclusion

Though short term loan is a great option to accommodate your sudden and temporary financial needs, there are a few things you should know in advance.

Any default or delay payments can lead to interest rate hikes and penalties. It may cause problems for the borrowers, further leading to lower credit scores. Moreover, availing short term loans for your long term needs may result in high interest rates.

So be careful when applying for short term loans Australia to fulfil your financial needs.

Loan Costs

Small Loans

Small Loans

$300 - $2,000

Loan amounts:$300 - $2,000
Terms:6 - 9 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
View Example

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
View Loan Details
Medium Loans

Medium Loans

$2,001 - $4,600

Loan amounts:$2,001 - $4,600
Terms:9 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
View Example

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
View Loan Details
Large Loans

Large Loans

$5,000

Loan amount:$5,000
Terms:9 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
View Example

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Establishment fee and Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43
View Loan Details
* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

Loan Costs

Small Loans

Small Loans

$300 - $2,000

Loan amounts:$300 - $2,000
Terms:6 - 9 months
Establishment fee:20%
Monthly Fee:4%
APR:N / A *
Comparison Rate:138.37%**
View Example

Small Loan Example

Loan amount:$1,000
Terms:6 Months,
(24 weekly repayments)
Establishment fee:$200
Total other fees:$240
Total payable:$1,440
Weekly installments:$60.00
View Loan Details
Medium Loans

Medium Loans

$2,001 - $4,600

Loan amounts:$2,001 - $4,600
Terms:9 - 24 months
Establishment fee:$400
Monthly Fee:$0
APR:47.8%
Comparison Rate:65.86%**
View Example

Medium Loan Example

Loan amount:$2,500
Terms:24 Months,
(104 weekly repayments)
Establishment fee:$400
Total other fees:$1,609.44 (reducing interest)
Total payable:$4,509.44
Weekly installments:$43.36
View Loan Details
Large Loans

Large Loans

$5,000

Loan amount:$5,000
Terms:9 - 24 months
Establishment fee:Variable
Monthly Fee:$0
APR:21.24%
Comparison Rate:48%**
View Example

Large Loan Example

Loan amounts:$5,000
Terms:18 months,
(78 weekly repayments)
Establishment fee and Total Interest:$1,897.54
Total payable:$6,897.54
Weekly installments:$88.43

* Not applicable. Small loans do not charge an annual interest rate.

** WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate with the lender that finances your loan. Different loans may include other payable fees and charges. All fees and charges will always be displayed on your loan contract.

We don’t stop there

No matter what the occasion is, Nifty has your back.