Businesses and individuals often face the problem of a short-term debt. Technically speaking, a debt is short-term, if it is expected to be cleared within a year. Short term debts are characterised by involvement of a small sum of money and hence, they are easier to procure and manage. Companies like peachy loan make it easy for a person or business to get a short-term loan quickly. They cover the following types of loans:

Title loans

These loans are considered to be a safe and secure way of arranging quick cash. They involve keeping some kind of collateral, and have a high rate of interest. Personal vehicles are a very common collateral that is used for these loans. The client may keep using the collateral during loan period, but it is forfeited in case the person fails to make an installment. These loans are preferred by those people who don’t want to get their credit score checked for loan application.

Payday loans

These loans are ideal for employed persons who have a regular paycheck every month. Their paycheck records are duly checked before approving this loan. Although these loans are supposed to be repaid as soon as the next paycheck arrives in the client’s bank account, many lenders like peachy loan allow the client to choose the repayment period. Despite their higher rates of interest, these loans are popular among those persons who are not in a position to wait for resolving their financial need.

Installment loans

These are the most popular kind of loans opted for. The standard procedure regarding these loans is that the lender (bank or credit union) lends the entire sum of money to the applicant after carefully assessing their financial records. Then, they start deducting a fixed fraction of the loan plus interest amount from the bank account of the applicant. The installment amount and the total duration of this deduction is mutually agreed by the client and the lender. Once the full repayment of sum and interest amount has been made, the loan is closed.

Consolidated loans

If an individual or a business has multiple small loans to take care of, one good option is to get all of them consolidated into one single loan. For availing this type of loan, the client needs to furnish proofs of the different financial requirements. The lender and the borrower then arrive at a mutual decision regarding the duration of repayment and the monthly installment. In general, consolidation of several small loans results in a reduction in the effective interest rate levied to the borrower. These loans are excellent means to prevent the paperwork and confusion of paying multiple lenders.

Current economic uncertainty has paved the way for unforeseen financial crises. Depending on the issue to be addressed, this requirement can be small or big. Companies like peachy loan make it easy for people to get quick cash by offering a large variety of short-term loans. The borrowers should make sure that they are fully aware of the terms and conditions of their loans.