Short-term loans typically involve the borrowing of smaller to medium-sized loan amounts, often for personal uses. They can also be used for business or corporate purposes, such as when a business needs to pay off some debt quickly. Short-term loans are often associated with quicker approval process and more lenient credit/background checks. They are typically repaid within a few weeks or a few months. Larger short-term loans may be paid back over a period of a couple of years.
Where Can Short-Term Loans Be Obtained?
Short-term loans can sometimes be obtained through various sources, such as:
- Banks and other financial institutions
- Independent sources such as a friend or a family member (such as with a promissory note)
- Peer-to-Peer lending sources
- Companies that specialize in cash advance or payday loan arrangements
Sometimes, short-term loans can be used in the process of obtaining greater financing in the future. For instance, a short-term loan may help a person pay off some of their debt, which might increase their credit scores. In turn, this may help them qualify for a larger type of long-term loan.
What Are Some Types of Short-Term Loan Disputes?
Short term loans can sometimes be the focus of various disputes, including:
- Lack of lender credentials (there might be smaller loan companies that might be operating without a license)
- Loan fraud, tax fraud, and other related white-collar crime issues
- Failure to pay back loan amounts
- Raising interest rates or loan capital amounts in a way that is considered to be a breach of contract
- Use of misrepresentation to obtain a loan or to deny a loan to a borrower
These types of disputes can sometimes be resolved through a re-negotiating of loan contract terms. In many cases, a lawsuit may be necessary to help compensate the plaintiff for losses caused by the dispute. This can sometimes extend to other losses such as loss of business profit or opportunities.
Should I Hire a Lawyer for Help with Short-Term Loan Disputes?
Short-term loans can be obtained relatively easily, but they often present risks to both the lender and the borrower. It may be necessary for you to hire a qualified bankruptcy lawyer if you need help with a short-term loan issue. Your attorney can provide you with legal advice and representation for your case. Also, if you need to file a lawsuit, you’ll want to connect with an experienced attorney in your area for legal representation during trial.