Warning: Late repayment can cause you serious money problems. For help, go to MoneyAdviceService.org.uk

Which payday loan is best for
people with bad credit?

Which payday loan is best for people with bad credit?

High Approval

High levels of successful applications

Fast Payouts

we can payout your funds fast

Follow Repayments

Statements clearly show repayments

Online Completion

Everything can be completed online

Short-Term Loans And Long Term Loans

When running a business, there will come a time when you will need a large amount of cash. This can be sufficed by using your personal savings, seeking help from investors, or the more common option – applying for a loan.

Basically, a loan is a borrowed amount of cash – including the principal rate, interest, and other charges. It is settled back at a pre-determined maturity date stated in the loan contract. The additional interest can be fixed or variable, depending on the loan’s terms and conditions. Nowadays, there’s no need to go out and visit a loan office; just a quick browse online will lead to a hundred loan providers who are willing to accommodate requests. The pre-payment period ranges from 6 months to as long as 25 years, usually depending on the amount. Unknown to many, a 6-month loan has a significant difference with a 25-year one, and you’ll figure out soon as you read the article.

Below, you’ll find out the differences between short-term loans and long term loans; their advantages and disadvantages; and when to use one.

Short-Term Loans

As the term suggests, the repayment period takes place over a shorter period of time, usually within a year. This is mainly used for urgent expenses, working capital prerequisites, and/or to finance an operating business.

why choose long term loans

Here are the advantages of short-term loans:

  • Faster Application

Since the loan has a maximum term lengthen of one year, the amount you can have is lower than the one you can get from long term loans. Because of this, the application process is less complicated and quicker. Most short-term loans can be acquired in less than 24 hours, providing that you have completed the requirements.

  • Quick Access To Capital

In line with the statement above, the application and release of funds for short-term loans are faster compared to long term loans. Funding is released at the soonest possible time, so you can use the money for a sudden bill and emergency expenses, be it paying the employees or purchasing equipment.

  • Fewer Restrictions

Not only is the release of decision and fund faster, but with short-term loans, the requirements you need to comply are lesser than long term loans. The amount offered is smaller, meaning it’s less risk for the lender. Since there is less risk involved, the loan provider will not demand complicated prerequisites such as business expenses, salary caps, etc.

Meanwhile, short-term loans also come with disadvantages:

  • Higher Costs

As short-term advances provide quick release of the fund, thus having an efficient access to capital, the interest rates tend to be higher. However, taking a high-interest rate loan is better than not getting an advance and having zero sales. Therefore, when making a business decision and planning to get a loan, assess the situation to find out what’s the best option for the company.

  • Can Trap Borrowers Into A Cycle Of Debt

Short-term loans provide quick financing, thus making it a quick solution from time to time. Although it sounds like a good alternative, it may put you in the temptation of repeated borrowing. If you take a loan to pay for all your employees and take another one next month, this is a sign that your business isn’t running efficiently.

Long Term Loans

Long term loans, on the other hand, comes with a maturity date that extends over a year and can even last up to 20 years. The amount provided is bigger, compared to its counterpart, and can be used to finance franchising, business expansion, buying a new property or other fixed assets.

Here are the advantages of long term loans:

  • Lower Interest Rates

Unlike short-term loans, long term loans have more stringent requirements, thus lowering the risks involved. Because of this, the interest rates are lower and easier to settle. However, it won’t be long until you find out that you’re spending more interest with long term loans.

  • Longer Repayment Period

The loan comes with a longer repayment period and you don’t need to bring out one lump sum, therefore, you’re not as pressured to settle the entire loan in a short period of time. However, you should not take the repayment easily; in fact, you should have a plan on how to settle the debt.

  • Can Fund Larger Expenses

Obtaining profit is the goal of every business, as well as its ability to grow and become stable. However, the more your business expands, the more the expenses come. Eventually, you will hire a number of people and/or build a new office. This, along with buying new machines, means a hefty price. Enter long term loans, this kind of advance can fund larger expenses, thus helping your business.

Like short-term loans, long term loans have various disadvantages as well:

  • You’re Paying More Interest

Since you’re borrowing a bigger amount than short-term loans, the interest rate associated with long term loans are higher. But then again, you should assess each situation. Yes, you’re handling more interests but if it means taking an investment and having more machinery, then long term loans are the obvious choice you should take than not getting a credit at all.

  • Limited Monthly Cash Flow

With long term loans, you have a longer repayment period. However, it’s still advisable to settle the loan in the soonest possible time; the longer the repayment, the higher the interest rate applied. Also, since you’re locked in a contract of – let’s say 20 years – your cash flow will be limited since you need enough cash to cover the monthly settlement.

  • More Stringent Application Process

There is more risk involved with long term loans than with short-term loans. Obviously, the amount is massive and one way for the lender to reduce the risk is to provide a stringent loan application process. As much as possible, they weed out immediately those who don’t have a good or excellent credit rating or have no capacity to settle the loan back. Therefore, before you take out long term loans, check all of your requirements including your credit remark. If you can, improve your credit score first to avoid rejection or expensive loan interests.

why choose long term loans


Get a Line of Credit Today

Qualify for a loan of up to ‎£20,000 in minutes

Fast Turnaround

Loans are paid out as fast as possible with a decision made in mer hours


The rates and the loan arrangement is clearing shown for transparency

Clear Form

Our application forms are Quick and Simple to complete entirely Online

Securely Paid

The loan is paid out into your selected bank account securely and quickly

See How Others on the Market Compare

Loan amount
£100 - £750
Loan term
1 - 35 Days
Apply Now

Show More ▼

Loan amount
£100 - £2,000
Loan term
3 Months Only
Apply Now

Show More ▼

Struggling Employees

Employees are the drivers of the global economy. They comprise a large percentage of the workforce, and the world will stop without them. If you’re going to analyze deeply, you’ll realize that all of us are employees. We are working for someone else – be it a boss, an organization, or a contractor. Employees are good demographic points because they tend to experience financial troubles more often. It could be that employees are also parents, or they need quick cash to survive until the next payday. In fact, the borrowing habits of employees empowered payday loans (that’s why they called ‘payday’). Employee-centric payday loans don’t have much difference from the cash advance programs of the past, though some lenders have made adjustments. Employee payday loans probably have a smaller interest rate stretched over a manageable repayment period. Lenders can also work hand in hand with employers to increase awareness for employees.

Freelancers on A Budget

The global freelancing community is starting to gain important traction this 2017. In fact, thousands of people are now resorting to freelancing because of the awaiting opportunities in the market. Freelancers are like hunters – they’re actively chasing big game, occasionally hitting and, oftentimes, failing. New payday lenders have understood the need for freelancer-specific loans, though only a few of them are following suit. Perhaps freelancing still needs to be recognized as a tangible income source in the payday lending arena. Another angle is the way people are tagging themselves as ‘freelancers’ even though they don’t have any jobs or income sources. This is why some lenders will look for additional income proofs whenever they encounter freelancers applying for payday loans. Nevertheless, we’re going to see lots of payday loans geared towards freelancers on a budget this year.

Startup Entrepreneurs

Being an entrepreneur today is no longer a side path – it’s necessary for the betterment of your life someday. Once you have a winning idea and transformed it into a plan, you can focus on acquiring capital. If your startup business is not that big, you can settle for a payday loan. Payday lenders can release your money in just minutes. They won’t care about your credit rating or the nature of your business (somehow). What they want to know is if you’re capable of repaying the loan within the agreed time frame. Once you got your payday loan, your business operation can be ignited and you’ll start raking profits in no time. Just remember to allow some of those profits towards your loan repayment. An unpaid payday loan can bring too much stress.


You may think that big-time investors are going after large, bank-issued loans. Well, you’re right. A stock investor, for example, needs big loans if he wants to participate in a growing market. The same can be said for antique collectors and coin enthusiasts. However, we can’t deny the fact that investors also start small. In this sense, small-time investors can use payday loans to fund their investments. Whether they make a killing or not, investors can see potential attention from new payday lending companies.

Once you understand all of these demographic points, you’ll know how lenders are adjusting their operations strategically. At one point, they may pursue better marketing efforts while compromising other areas. Despite this, it’s still important to find a lender that attains a great form of balance among all of these demographic areas.

5 most recent personal loan reviews

Review of H&T Finance

So friendly and so easy to be accepted. I needed a loan to help out a family member and I've been able to do so, so quickly. Daniel at H&T was so polite and helped me understand everything thoroughly.

Review posted by Aimee Walls, Carlisle

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Post Office Money

Post Office, thank you so much! I will definitely be recommending you for your helpful and professional support, from receiving my completed application you were very quick in processing my application. I applied in one day and by the second had my loan. You gave clarity when needed and made me feel that I was not just a number. Thanks again.

Review posted by Lisa Davies, Sunderland

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money

Review of Street UK

My experience with this great team has been superb, I've had five star quality service since day one and my application processed rapidly, there is no messing about and they provide real fast and strong customer service which I am happy about, I know where to come next time, thanks for all your help.

Review posted by Joe Irving, Leeds

  • Customer Service
  • Flexibility
  • Ease Of Use
  • Value For Money
We source all of our reviews from Trust Pilot to ensure that all accounts are authentic.