Understanding Short Term Loan Borrowing

I think it will certainly be fair to say that there can always be a time when a person needs to borrow money. This can be down to a high amount of different reasons. Some people may then need a high amount of money as they are looking to make some form of expensive purchase of some kind. This could possibly be for a new car perhaps or maybe someone is looking to put money towards home improvements etc. There can then be others who may only need a small amount of cash. They could just need some financial help paying a bill or they need some additional funds to help make their wages last until they are next paid from their employer. Now regardless of what any person needs any amount of money for, if they have this saved they can then use it as required to pay for whatever they then need. Some people might even have enough put away through savings to pay for their requirement and need outright. Turning to savings is always nice but unfortunately it is not available for everyone and if this is then the case the money will need to be borrowed. Short term loans is just one way people use when money is needed to be borrowed.

Understanding Short Term Loan Borrowing

Understanding Short Term Loan Borrowing

When most people need to borrow money the chances are first of all they will approach friends and family to see if they can get the money this way. This will be much more common for any potential borrower if only a small amount of money is needed. They will know that doing this can often enable them the chance to take out a short term loan or any kind of other borrowing interest free. This will be great as people in these cases just pay back exactly what they loaned in the first place. People here as well can get their loans quickly and then just repay back that debt as soon as they have the required funds available again. This as a borrowing option is just like turning to potential savings as it is not available for everyone.

If people ever need money due to have a small amount of funds in need of a cash emergency for example then using a short term loan may be the better option. Some many different lenders provide these as a borrowing option. Payday lenders will most likely however, be the source that provides this finance. They aim their financial products towards people with bad credit as these are often obtained by people who have other borrowing options limited. It can often provide people with loan amounts up to £500.00 for the same people to then repay the debt over a short period of time hence the term short term loan. Never is the loan ever under any circumstances to be used as a long term borrowing option. People have to then repay back the finance within a time frame of up to twelve months.


How Short Term Loans may be Able to Assist your Credit Rating

As individuals we are all subject to having a credit rating or credit score and this information is gathered and formulated thanks to the Credit Reference Agencies. Our score will be directly reflective of our previous and current performance regarding credit based commitments. Records are held for previous credit agreements for a period up to 6 years and as such how you chose to repay credit commitments of the past can have a lasting effect on your credit future. What many of us may not be aware of is the fact that even small credit agreements can and do effect our ability to obtain credit in later years; such as communication suppliers. This means even the most ‘basic’ of credit facilities will and do exist within an individual’s credit reference file. In instances where agreements of this nature have been either poorly repaid or defaulted entirely, an individual may later discover that they are unable to obtain other forms of credit; such as Hire Purchase agreements or even a mortgage. This is why it is so fundamentally important to ensure that any form of credit, large or small, is managed and repaid as it required.

Assist Short Term Loans

Assist Short Term Loans

Whether it be a short term loans lender or a mortgage provider, all lenders will access an individual credit report before making a decision as to whether their product is suitable. Of course lenders of short term loans will be looking for a different ‘set’ of results compared to that of a mortgage provider given the sums of money being considered by each. That though, is not to say one will except ‘poor’ credit more so than the other and this is really the decision of the individual lender. Certainly as fair as mortgage providers are concerned, it would be fair to stay they are looking for examples of successful and timely repayments as fair as prior credit performance is concerned.

For consumers who are aware that previous credit commitments have been poorly managed or even defaulted through lack of repayment altogether, they may also be aware that obtaining future credit can be difficult. For consumers in this position the sensible use of short term loans may be an option worth considering. Given the fact that short term loans are generally for no more than £500.00 in value, there may be an opportunity to demonstrate you can now repay a small credit commitment as required. Using short term loans and repaying them as is requested will allow an updated ‘imprint’ on your credit reference file and furthermore may highlight to potential future lenders that you have gained experience in managing your credit based commitments in a sensible manner. Short term loans in their current form are generally flexible and therefore able to offer a number of different repayment terms; at the point of applying. So making a sensible and affordable decision concerning the right type of loan, for your individual needs is likely to be achieved with a level of ease.

Considering the Application Process for Payday Loans

Payday loans are a means for borrowing between £100.00 and £500.00 typically and the application process in the vast majority of cases takes place online. This means that lenders will assess the suitability of the loan in the most part by electronic means. Generally speaking it is the attention of payday loans lenders to deliver a service which is flexible, discreet and timely, with most lenders being able to make a lending decision the same working day the application is submitted. It is important to realise that lenders will not place speed as the uppermost important factor and therefore will not progress an application simply based on this. Instead modern day payday loans lenders will focus their efforts on making sensible and affordable lending decisions for their customers. Let’s look at the process of applying for payday loans, in greater detail, to understand then exactly how this generally achieved.

Payday loans as mentioned above are accessible via the means of an online based application process. To apply for a loan a lender will offer an online based application form which can be completed usually in little longer than 10 minutes. Typically speaking the application form itself will be broken down into a number of clear and logical steps, designed to gather all the key information regarding the applicant to make an informed lending decision. These sections usually focus around personal information, employment details and banking information. By gathering this information it allows the lender to run a series of automated checks to assess whether the requested loan can be deemed as suitable. These automated checks are completed via the means of what is commonly known as a ‘decision engine’. A decision engine assesses the identity, address, banking information and credit worthiness of an applicant. It will seek to verify the personal information of the applicant and then assess the credit worthiness against the individual payday loans lenders individual criteria. If at this stage any of the lenders requirements are not met, there is a high probability that the application will be declined.

Application Process for Payday Loans

Application Process for Payday Loans

In most cases once the decision engine has completed its checks and in essence the application has been provisionally accepted by the lender. At this point the lender will likely manually review the application to ensure all the information contained is as they would require. At this stage there may be a requirement for the applicant to provide additional documentation to support the application. Additional documentation is usually requested when an automated check has highlighted a need to verify some of the information relating to either identity, address or even employment. In some cases there will not be a need to provide any form of documentation in order for the payday loans lender to make their decision. Providing the lender is satisfied all of their electronic and manual checks have been successfully passed, it is at this point that the lender will have the ability to approve the loan and transfer the funds, usually via faster payment, to the account nominated in the application.

Borrowing Funds From Direct Payday Lenders

If anyone is ever looking to borrow money, regardless of the reasons and no matter what people ever needs the money for, they will have to always consider a number of different things before the application can then look to be submitted. They will have to all firstly know that they definitely one hundred percent need to borrow the money in the first place and then if so they will then have to only borrow a realistic loan amount. Any amount obtained must then be affordable for that person to then manage and then repay the debt. The actual type of finance can then be chosen and here there can be a number of different borrowing options. For example both short term loans and instalment loans could then be available. This way from possible direct payday lenders people can look to often borrow a selection of different loan amounts for that person to then repay the debt back over a number of different repayment terms. As well as the type of finance being considered the lender must then also be chosen and here there can often be a number of different borrowing options.

Borrowing Direct Payday Lenders

Borrowing Direct Payday Lenders

Obtaining money from direct payday lenders can be a way for people to borrow mainly short term loans when they need to borrow in the first place. I have certainly found that in recent years it does seem more and more people are turning to this way of borrowing when they need to. It can be a common way for someone to obtain a relatively small amount of cash for a then short period of time. Direct payday lenders normally aim to help people obtain amounts up to £500.00 and then just like other short term loans, when borrowed they must then be repaid back to the lenders within a twelve month period of time as the maximum duration. Any loan that is repaid back over longer cannot be classed as that way of borrowing money. There can be some cases where more than £500.00 can be borrowed but this will be subject to what the lender can then provide to that person.

I have found that borrowing money this way can give people flexibility on what they can then look to borrow which I always will feel is beneficial to that person. Another benefit of using direct payday lenders would be the fact that they can give people cash very quickly when they need it. People can often apply for these loans online or over the phone in a quick and simple process that should only then take a matter of minutes to complete. If that same application is then accepted from the lender then that person can often look to receive their loan that very same day. In some cases people can then look to apply for the loan and then if approved they can receive their money in their chosen bank account within just a matter of quick minutes. People can honestly receive their money that quickly through some financial lenders.

Best Repayment Term for your Payday Loan

Thankfully nowadays payday loans come in lots of different shapes and sizes and this means as consumers, we have plenty of choice and flexibility at our disposal. Whether we are looking to borrow £100.00 until pay day or £500.00 for a longer period of time, there is likely to be an option to fit the need. Payday loans are not designed to be used all the time and instead are most effective when used as intended; for short periods of time. The name given to these type of loans is not coincidence and in fact the name ‘payday loans’ is very finding for the type of product on offer. Payday loans do what the name suggests and allows us to borrow until our pay date in simple terms. With this in mind it is easy to see how they vary from more traditional ways of borrowing money. Take for example a bank loan, available from a host of different high street banks, these can often be offered to consumers over a number of years’ worth of repayment and furthermore can reach values way up into the thousands of pounds. Clearly consumers needing to borrow these sort of sums would not benefit from the resources offered by payday loan lenders.

Best Repayment Term for Payday Loan

Best Repayment Term for Payday Loan

One of the most important considerations before taking a form of payday loan is whether the reason for borrowing matches the resource which is ability. As discussed above payday loans are not designed to be used as an on-going resource and therefore will not be useful to all consumer needs. Instead if you are looking to cover a short term financial short fall, payday loans can prove to be a useful resource. Take for example a broken washing machine or the requirement for a new car tyre. These are the type of costs which can arise from time to time but will not continue to be a financial concern month in and month out. If, however, there is a financial cost which is likely to occur regularly, it would be more suitable to consider the resources of a larger and longer term loan product; for example, a credit card provider.


So assuming there is suitable reason for borrowing, matching that of the resources offered by payday loan lenders, it is next important to select a repayment term which is sensible and realistic. This means not over-committing yourself financially in terms of the repayment amount agreed to. Given that payday loans can be repaid in a number of ways, there is plenty of different ways in which the repayment amount can be amended to fit your budget. Payday loans are often offered over a range of terms, whether this be 3, 5 or 6-month repayment terms or 1, 2 or 3-month repayment options for example. This means the repayment amount can be increased or decreased on a monthly period depending on the overall period of repayment which is decided upon. Therefore, it is very important to review the options and make an informed lending decision.

Sunny Loans

Sunny loans has emerged as an excellent alternative to the United Kingdom’s short term loan borrowers. A customer can get Sunny loans ranging from £100 to £2,500 on fixed instalments. It caters to the needs of all sections of short term borrowers that is whether a customer is in need of small amount in hundreds or in relatively large amount in thousands.  This gives the borrower the option to select the loan amount that exactly satisfies the purpose of the loan. Sunny has its own mechanism of assessing the credit worthiness and affordability of the applicant. The applicant will have different terms and conditions for each loan amount selected so is the interest rates. The instalment loans have been planned in a way that it gives control and flexibility. They have the option to pay back anytime the customer is able to repay the money with no additional fees for early repayment.

Sunny loans lender is different from other loan lenders.  Here customers are required to pay the interest charged on a daily basis on the loan amount. There are no other fees like application fees, processing fee, administration fee, funding fees etc. There are no hidden legal fees. The fact that it does not charge extra for early repayment is praise worthy.

The most favorable thing to the customers is that Sunny offers loans from £100 to £2500 with varying terms. Thus it is very sure that any customer will find a loan that perfectly suits his circumstances. The interest rate and terms of the loan vary from one amount to another amount of approved loan.

There is enough flexibility in the Sunny loans which paves way for the customer to pay more than regular instalments thereby saving interest and repay the entire credit in a short span of time. This facility can be opted by selecting flexible payment plans. There are no extra charges for early repayment which means payment made before time does not cost more to the customer.

In their website Sunny loans has its money tips section that has videos, tools and guiding instructions for customers. These are a great help to the customer in managing their money and have control in their cash flow.



Sunny strictly follows the rate cap prescribed by the Financial Conduct Authority (FCA) which states a customer will never pay interest more than 0.8 % per day and the total interest paid cannot cross the amount of the actual borrowed sum.

Sunny loans is a responsible loan provider and work with its customers when they are in difficult financial situations and find it hard to repay the money at the agreed date. Sunny provides customers with alternative payment plans to ensure that the customer is not overburdened with the interest accrued due to late payment. They also lower the rate of interest if there is late payment by putting a cap in it.

With the changing economy and the world it has become common that at some point of time hard working people have found it difficult to meet their needs for a given time.


There is a large group of people who have to look for alternative sources for loan purpose when they meet up with unexpected financial challenges. Sunny involves itself in making packages and developing products that help their customers to solve their individual financial challenges and work towards a secure financial position in future.

Applying is easy with Sunny

There is an easy online application process available with Sunny Loans. A customer can request a loan within minutes through their website and get a quick decision when they are in need of money. Once the loan is approved the money is transferred to customer’s bank account within 15 minutes.

Sunny loans also provide 5 days to the loan applicants to change their mind. There are no explanations required to be given for any changes made by the customer within these five days. The applicant just needs to call the customer care team to return the amount that was transferred and there is no extra charge for this. This benefit is in additional to the within 14 days withdrawal right.

The repayment due date or dates is aligned to the pay date or dates. Customer needs to make sure that they have the required funds available to pay off the dues.

The customer has the option to go to the payments section in their online account and make additional payments towards the repayments at any point of time. This option is helpful when customers have little extra money and decides to come out of the debt in a short period of time. This will also help saving interest to an extent.

The customer also gets an opportunity to choose flexible overpayment plans wherein they can authorize the lender to take regular overpayment every month to pay off the loan along with interest before pre agreed time. For doing this there is no extra fees charged by Sunny.

To apply for Sunny loans the applicant must be 18 years old and a resident of the United Kingdom. The applicant also needs to have a UK bank account and possess a debit card. The applicant needs to have a minimum monthly of £500 and in permanent employment. For being applicable for Sunny loans an applicant must have a mobile phone as well.

All applications for Sunny loans have to be made through their website. Sunny will need the applicant’s employer details, the bank account information and also proof of three years address. For Sunny loans the applicant also needs to disclose expenditure information and any other financial obligations the applicant may have. Such information helps Sunny to asses and approve a loan that is affordable to the applicant.

Thus it has been observed that Sunny loans have come as a popular alternative to other form of short term loans provided by various other lenders. It has been successful in attracting a large bulk of people towards its loan plans and the terms associated with it along with the flexibility in repayment.


Sunny Loans

Sunny Loans specialize in what we call today as payday loans. Payday Loans are essentially cash advances that are offered on a short term basis to a customer, usually to be repaid over a short period of time ranging from 2 weeks to 12 months, depending on the lending agency and the type of loan you opt for. These loans usually carry a higher interest rate and certain repayment options can carry an Annual Percentage Rate (APR) of close to 4000 %. Sunny Loans are known to provide a better alternative to the UK’s short term borrowers.

Sunny Loans have been in the business for some years and are known to be one of the most trusted names in the industry today. They have arrived at a time when the regulations are being put in place and there is much stricter cap on the interest rates being charged to the customers. Despite these limitations, they have excelled in their services, right from providing the best possible loan to the customer, to guiding the customer in the need for financial responsibility as well as being gentile and empathetic with the customers at the time of repayment. Sunny Loans is perhaps the only lending agency which allows you a 5-day grace period to return the loan amount without any extra charge.

Besides providing these services, they have also indulged in conducting regular surveys and reviews to gauge what the developments in the industry have been leading to and where the future of this industry lies. They have constantly felt that it is a need that the customer remains completely involved and informed of the various developments taking place in the lending world, so that we can become more informed citizens.

Let’s look at some of the practices that should be adopted by some of these lending agencies in order to create a positive impact:

  • It is essential that these lending agencies are completely transparent in their process and their transactions, keeping the customers clear from the hidden costs and other fees that could potentially damage the customer’s ability to pay.
  • They need to serve more as a guide rather than just a lending agency, so that the customer derives confidence from this institution and looks at it as a source of support rather than a burden at the end of the month.
  • An additional motive of these organizations should be constantly engage their customers with relevant information on various tools available to keep themselves financially stable so that they can become more responsible in their approach towards money.
  • They could do this by writing blogs, sending those links online to various informative websites, sending them regular updates on the developments taking place within the lending industry.
  • They could also educate them about the various risks involved with short term lending or payday lending, so that they make an informed choice while making this decision.
  • They should also recommend more sustainable sources of short term lending to those who they feel are not in a credible position to apply for a loan. This would create a feeling of confidence in the minds of the customer and also not see himself as unworthy.

Some of the things that a customer must keep in mind while making these choices is:

  • A lender is not the only one who is responsible for his money. He is also responsible for it, which implies that he needs to understand whether he is in a position to take the loan, and not just that but whether he is in a position to repay the loan within the specified time.
  • He should do a fortnightly check on his financial situation. This also creates a sense of self assurance and at the same time, helps him project his finances for the rest of the month.
  • Savings should become a practice, irrespective of how much you own. This can see you through your crisis and gives you the ability to not rely on external sources of funding.
  • It is also important for you to understand the importance of being educated about various sources of funding and the different types of lenders functioning in the market. This gives you an idea of who the best possible lender is, and why they are offering the products they are offering.
  • It is always advisable to be directly linked to the source of fund rather than relying on a broker, as this could be detrimental to your overall financial state. Brokers have a tendency of putting their own interest before your own and their exposure to many clients and borrowers puts additional pressure on them.


These are some of the practices which could bring lenders and borrowers closer to each other and bring in mutual respect for each other rather than unnecessary dependence. Lenders need to realize they are here to help customers and that’s what their practices should revolve around. IN the same way, borrowers need to understand the need for being informed and not be victims to some fraudulent practices.

There are some lenders who have identified this need and are working towards improving the overall situation. Lenders like Sunny Loans are ensuring they are exposing their customers to the right needs and are discriminating between their customers which could sound wrong but in practice is very much needed. Everyone and anyone is not eligible for a loan and as long as lenders understand that, it can help things.

Overall View:

The idea is to understand that we live in an economy where people are financially dependent on these institutions and there needs to be a paradigm change from this state of dependence to a more constructive role of guidance, which could uplift the customers in every sense and see them being more educated and sure about their financial casualties. This needs to be an overall change in perception and new laws and regulations will only help to a certain extent. Systems unfortunately have enough loopholes and the more laws we create, the more loopholes it will give rise to.