A cash loan is typically a small loan. Often it is used to cover the cost of smaller expenses. It could come in the form of a payday loan or a personal loan. The small amount means that it is usually unsecured and with a high APR.
What is a cash loan used for?
These personal loans are usually taken out in times of financial emergency. Many applications for small cash loans are used to cover the costs for things such as unexpected bills or the costs of repairs. As the loan amount and terms are short they are ideal for short term cash flow problems.
These loans can cover things such as, but not limited to:
- Rent and mortgage payments
- Vehicle maintenance and repairs
- House and home appliance repairs
- Private medical bills
- Utility and maintenance bills
Where can I borrow a Cash Loan from?
Should you find yourself in a situation where you require a small loan quickly, here are your options for borrowing cash:
- A high-street payday loan provider: you can apply to borrow money from a lender on your high-street by visiting your local pawnbrokers or cash converters.
- Banks: Some banks may offer personal loans which can help you to cover the costs of your expenses. Check your local bank for more information.
- Credit cards: you can use a credit card to cover the expenses of your unforeseen expense. However, be wary of interest rates and implications of maxing out your credit.
- Doorstep loan: You can apply for a loan to be delivered straight to your door.
- Your local credit union: Not for profit credit unions may also be an option if you’re looking for a lower interest rate for your finace rather than a bank.
- Borrowing from friends or family: this can be a great interest-free option, however, borrowing from friends and family members can cause conflicts to arise.
- Applying online: if you’re looking to stretch your budget until payday, then you can apply for a loan online.
How much can I borrow?
At Flexy Finance we offer cash loans, anywhere from £100 to £5,000 for periods of 1 to 60 months (2 years). Some of the most popular amounts that applicants apply to borrow include: £200, £500 and £1,000 loans.
How long can I borrow a cash loan for?
At Flexy Finance, we can provide cash loans for as little as a month up to 2 years. How long you wish to repay may depend on how much you wish to borrow. However, whether you wish to borrow for 6 months or 12 months, or on your next payday, we may be able to help.
How can I get a cash loan?
You can get a cash loan by applying online with our quick application form. The application form will require some details before it is submitted. Once the form is completed and submitted it will be matched with the best suitable lender for your needs.
How do I apply for a Cash Loan online?
To apply for a loan with us, you’ll need to fill out our online application form with your personal, financial and employment details. Once your application has been completed and submitted, we’ll check it in real-time against our panel of over 30 lenders to give you an instant decision on your application.
Our online application process has been specifically designed for ease of applying in an emergency and when time is of the essence, which means that you don’t have to worry about filling out long forms or wasting time sending over paperwork.
How fast can I borrow money?
Quick loans are designed to be used in emergencies, so naturally, they reflect the urgency of which borrowers need them. If you’ve applied for a cash loan online, you should receive a decision within 15 minutes. If accepted, the majority of the lenders we work with should be able to send your money the same day*.
Am I eligible to borrow money?
In order to be considered eligible for quick small loans with us, you must:
- Be at least 18 years of age
- Be a resident of the UK
- Receive a regular and steady income
- Be able to provide your address/es from the past three years
- Have a valid bank account
Can I still get a Cash Loan if I have bad credit?
You can still get finance with poor credit. However, the loan will likely come with high APR and the loan amount may not be as much. The reason for this is that a bad credit report suggests that the borrower is more risky, therefore lenders are less inclined to lend.
Generally, poor credit can be an indication that you are likely to miss repayments, making you a high-risk customer. However, there are still lenders who are willing to lend customers with bad credit money.
If you are worried that you will fail a credit check due to financial difficulties in the past, you can use the soft search loan eligibility checker to determine whether you are likely to be approved or not. While soft searches won’t affect your credit, it will leave an entry on your report.
Do I need a guarantor?
Most cash-loan lenders won’t require you to provide a guarantor with your application, even if you have bad credit. Instead, lenders consider the many different reasons that can be attributed to a poor credit score and will perform the appropriate checks to assess both your affordability and creditworthiness.
The Advantages & Disadvantages of Cash Loans
Cash loans are one of the most convenient forms of finance, which is why they have grown so popular in recent years. Due to their flexibility, you can use the loan for whatever short term money woes you need them to cover. However, despite their many benefits, problems can arise if they aren’t used in the right circumstances.
What are the advantages of cash loans?
When considering applying for any credit, you should always consider both the positive and negative aspects before you apply. Weighing up the pros and cons will help you determine whether or not this type of finance is suitable for your circumstances. Here are some of the benefits:
1. Easy loan applications: No paperwork or time-consuming application forms.
2. Added convenience: Apply online, via mobile, tablet or desktop wherever and whenever.
3. No waiting around: Receive an instant decision on your application within minutes.
4. Regulated by the Financial Conduct Authority: these loans are regulated by the FCA, ensuring the rights and protection of consumers of short term finance products.
What are the disadvantages of cash loans?
You should also consider some of the problems of using this type of finance as well:
1. Your application is not guaranteed approval: your application will be approved subject to a lender’s eligibility criteria.
2. Loan amounts can be small: loan amounts of up to £5,000, making them unsuitable for long term periods.
3. The money will be sent to your bank account: most lenders can pay your loan straight into your account within just 15 minutes* of your application being approved.
4. Interest charges: interest and APR will be added to your loan, which can, in some cases, make the loan more expensive. Always ensure that you check the total amount payable in your loan terms.
What are the alternatives to a cash loan?
If you do decide that this option may not be the best to suit your circumstances, then you may want to consider alternative options. There are plenty of options available if you are having trouble making ends meet until payday. These include:
- Long-term loans: if you require a more considerable loan amount to cover your expenses, or if you wish to spread out your repayments, then your needs may be more suited to a longer-term loan.
- Secured loans: Alternatively if you want lower rates and a higher loan amount you may wish to take out a secured loan. However, this may require you to provide an asset to secure your loan against.
- Credit cards: if your expenses don’t amount to a large sum, but you’re still finding it hard to stretch your budget, you could consider using a credit card to get you through to payday. However, this is unsuitable for larger amounts, and you should be mindful of the interest you will accrue.
- Budgeting: by budgeting and stretching your budget, you may be able to make the appropriate changes to see you through your money issues.
Can I afford a cash loan?
As cash loans are regulated in the UK by the Financial Conduct Authority, the appropriate affordability checks will be performed to ensure your ability to make the repayments as part of responsible lending practices. However, you should also consider whether you can afford the loan repayments based on your monthly income and expenses.
If a lender determines that you cannot afford to borrow the loan you have requested, they may offer you a lower amount or may decline your application for credit. Consider APR and interest rates of your loan and check the repayments and the total amount repayable by using a loan calculator.
Will taking out a loan affect my credit if I’m late or miss a repayment?
Lenders will have different policies regarding collection and implications on non-payment. You’ll be able to find these in the terms and conditions of your loan agreement. But for the most part, lenders will be in touch with you to rearrange payment if you are late paying any instalments.
Implications of late and missing payments can lead to additional charges and interest added to your loan which can affect your credit. This is why it is essential for you to ensure that you only borrow what you can afford to repay, which will safeguard you from any affordability issues.
What should I do if I’m struggling with debt?
It is important to remember to not to borrow more than you can afford, so always borrow responsibly. These loans should not be used for long-standing financial debt or other issues. Remember, if you are struggling with debt please click on the links below:
Why Choose Flexy Finance for a cash loan?
Quick cash loans can be excellent options for those who find themselves in an emergency. Whether it’s an urgent repair you need to make or a medical issue that needs to be taken care of, it’s good to know there is a financing solution that can help when money and time are short.
What makes Flexy Finance different?
At Flexy Finance we check our panel of over 30 Top UK lenders to ensure we find you the quickest and most suitable loan for your circumstances. With our swift application process with no need for paperwork, you could receive your short term loan in less than 15 minutes*.
We consider all applicants fairly, irrespective of credit history and charge no additional fees for the service that we provide.
FAQs
What is a Cash Loan?
A cash loan is a personal loan that the borrower will usually receive in cash, although more often than not these loans will be deposited into a bank account. Cash loans can be issued by high street lenders and payday loan companies.
How does a Cash Loan work?
Once your application for a cash loan has been approved, a lender will then be able to deposit your loan into your bank account. You then agree to make monthly repayments in addition to any fees or interest, until the outstanding balance is paid.
Can I get a Cash Loan with bad credit?
You can still apply for a cash loan, even if you have poor credit. Bad credit cash loans will instead take your affordability and circumstances into account when considering your creditworthiness as opposed to your credit history. Applicants with bad credit can still apply for short term loans.
Why choose Flexy Finance?
At Flexy Finance, our small cash loans and application process are created to ensure the entire application process runs as smooth as possible. Allowing you to apply and receive an instant decision on your cash loan as soon as you need it.
