Accessing cash quickly can be challenging during financial emergencies—whether personal or business-related. While bank loans are an option, the approval process often takes time, making them unsuitable for urgent needs. In such cases, short-term loans could be a viable alternative, as it typically provides quicker funding.

However, before applying, knowing what this loan entails is essential to know if this is the right choice for your situation.

Short-Term Loans: What It Is and What You Should Expect

Short-term loans offer fast and flexible financial solutions for individuals facing urgent cash needs. Unlike traditional long-term loans, they come with shorter repayment periods, typically within a year or two, depending on the lender.

These loans provide a lump sum amount to help cover unexpected expenses, manage cash flow gaps, or handle financial emergencies. While they have a swift turnaround time, they often have higher interest rates due to the shorter repayment timeline.

Additionally, most short-term loans are considered unsecured personal loans, meaning they usually do not require collateral.

Benefits of Short-Term Loans

Some of the advantages of getting a short-term loan include the following:

1. Quick Application and Approval Process

Many short-term loan lenders provide an easy application process, enabling you to apply online in as little time as possible. This means less paperwork and a quick turnaround time.

2. Flexibility

Short-term loans offer customisable repayment terms based on your ability to pay. You can also choose between weekly or monthly repayment schedules, depending on your financial situation.

3. Shorter Total Interest Payment

Even though short-term loans may have higher interest rates, the total interest paid is often lower compared to long-term loans. This is because you repay the principal amount within a shorter period, reducing the overall cost of borrowing.

4. Easier Access

Unlike traditional loans, which require you to have a high credit score, many short-term loan lenders focus on cash flow and income stability rather than past credit history. This makes short-term loans a suitable option if you have a lower credit score and struggle to get financing from banks.

5. Credit Score Improvement

If you have bad credit, taking out a short-term personal loan and repaying it on time can help with your credit score. This could also increase your chances of being eligible for larger or long-term loans in the future.

By borrowing responsibly and making consistent, timely payments, you can rebuild your credit gradually and improve your financial standing.

Key Considerations Before Taking a Short-Term Loan

If you’re planning to get a short-term loan, make sure to consider the following:

1. Loan Purpose

Before taking out a loan, ask yourself: Do I really need this loan? Short-term loans are ideal for urgent financial needs, such as covering unexpected medical bills, repairing essential equipment, or managing temporary cash flow gaps. However, if the loan is for non-essential expenses, you may want to reconsider borrowing and explore alternative ways to manage your finances.

2. Repayment Capacity

One of the most crucial factors to assess is your ability to repay the loan. Since you will have to pay high interest rates within a shorter amount of time, this means you’ll have to make larger monthly payments compared to long-term loans.

Therefore, carefully evaluate your monthly income and expenses to know if you can afford the repayments without disrupting your financial stability. It’s important to remember that missing payments can lead to penalties, additional interest, and a negative impact on your credit score. This would make it difficult for you to secure loans in the future.

So, by assessing your current financial situation and borrowing within your means, you can avoid unnecessary stress and maintain a healthy credit profile.

3. Interest Rates and Fees

Not all short-term loans are the same. Lenders may charge different interest rates, processing fees, and late payment penalties, which can significantly impact the total repayment amount. Therefore, always read the fine print and know the true cost of borrowing before committing to a loan. Compare multiple lenders and carefully review the following:

Annual Percentage Rate (APR) – This reflects the total cost of the loan, including interest and fees.
Processing Fees – Some lenders charge a processing fee up to 10% of the loan amount, which is typically deducted from the actual loan disbursement.
Late Payment Penalties – Missing a payment can result in additional charges such as late fees and late interest.

What to Look for in Short-Term Loan Providers

Choosing the right short-term loan provider is important so you can have a smooth borrowing experience and secure favourable loan terms. Some key factors to look out for include:

1. Transparent Terms and Conditions

Before signing any loan agreement, thoroughly read and review the lender’s terms and conditions and ensure it has no hidden fees or unclear repayment clauses. It’s important to note that reputable lenders fully disclose their loan repayment terms or structure, interest rates, processing fees, late payment charges, and other applicable costs. So, be cautious of lenders that do not clearly outline their terms, which can lead to unexpected financial obligations.

2. Competitive Interest Rates

Short-term loans have varying interest rates, so it’s essential to compare offers from multiple providers to ensure you’re getting a fair deal. Look for a lender that offers reasonable and competitive interest rates without excessive additional charges.

3. Flexible Repayment Options

Every borrower’s financial situation is unique, and having a flexible repayment plan can help manage cash flow properly. Some lenders provide customised repayment schedules that allow you to adjust the frequency or amount of payments. Therefore, check if the lender offers options for early repayment without penalties, as this can help you save on interest costs.

4. Efficient Customer Support

A reputable lender should provide clear communication and responsive support throughout the loan process. Look for a provider with a support team that can promptly address your concerns regarding application procedures, repayment schedules, or loan modifications. To help you gauge their service quality, check out their customer reviews and their track record.

Explore Your Short-Term Loan Options with Greystone Advisory

Applying for a short-term loan without understanding the fine details can be risky. That’s where Greystone Advisory, a finance broker in Singapore, can help.

At Greystone Advisory, our experts provide personalised loan guidance to help you find the best short-term financing solutions. We work closely with reputable private money lenders in Singapore, ensuring you secure a loan with competitive interest rates, transparent terms, and flexible repayment options.

Whether you need a loan for unexpected expenses or quick funding for your business, we will guide you through the process so you can make an informed decision.

Situation 1	BANK’S REPOSSESSION
Deal Type	Refinancing with Fresh Cash-Out
Property	3 Bedroom Condo along Meyer Road
Property Value	$3.2M
New Loan Amount	$2.4M (with fresh cash-out of $500K)
LTV	75%
Synopsis	Customer, age 51, a senior marketing director in the food logistics industry, was being retrenched in August last year without any prior notice. With his wife being a full-time homemaker, he found himself soon having difficulties in servicing his mortgage repayments, resulting in the bank taking steps to repossess the property for a mortgagee sale within a short span of 6 months. Despite only having a $1.4M outstanding mortgage with $600K of CPF usage, the bank was unable to grant him additional cash-out facilities to tide him through this challenging period, as he couldn’t pass the 55% TDSR threshold in the absence of regular reported income.
Solution (1)	Luckily, the customer managed to find us in time and we eventually saved his house from being repossessed. Arranged our private property lender to grant a $2.4M mortgage loan, out of which $1.4M to redeem his existing mortgage, $600K to refund to CPF with remaining $400K fresh term loan for his personal use, which includes servicing of the monthly instalments with the new private lender.
Solution (2)	The customer managed to find a new employment sometime in March this year. We had since successfully helped the customer to refinance the $2.4M from the private lender sometime in September this year.

Situation 3	INHERITANCE DISPUTES
Deal Type	To finance purchase of sibling’s share in the property
Property	Sem-Detached house along Jalan Seaview
Property Value	$$7.5M
New Loan Amount	$2.8M
LTV	37.5%
Synopsis	Customer, age 62, had jointly inherited the above fully-paid property together with his sister when their father passed away sometime in June last year. Both siblings were at constant disagreements regarding the sale of the property. Customer had always wanted to keep the property for future capital appreciation and his sister was in favour of selling the property so that she could use the sales proceeds to fund her new condo purchase.
Solution (1)	Unable to reach a consensus, the Customer then wanted to buy over his sister 50% equity stakes in the property (valued at $3.75M). Customer was unable get the bank to finance his part purchase exercise as he cannot meet the TDSR requirement and loan tenure. We then managed to get our private lender to finance his purchase of his sister’s share with a $2.8M loan (with a 75% LTV against the $3.75M purchase price)
Solution (2)	Separate financing had also been arranged for the remaining $950K cash difference (being the balance of the remaining 25% purchase price), which was secured by pledging part of Customer’s 50% stakes in the property as well.

Situation 2	BANKRUPTCY LAWSUIT
Deal Type	Refinancing with Fresh Cash-Out
Property Type	Detached House in Newton Area
Property Value	$14M
New Loan Amount	$10M
LTV	71.4%
Synopsis	Customer, age 72, was facing one of the biggest challenges as a veteran businessman, when one of his suppliers had filed a bankruptcy application against him (being the guarantor for his group of F&B companies). After successfully obtained the court judgement for a claim-sum of $1.9M, the customer was eventually given 2-month timeline to settle the payment, failing which he would be in imminent danger of being declared a bankrupt, thus crumbling his business empire which he had built for decades. Despite only having an outstanding mortgage of $7.5M (with a 53.5% LTV against its $14M valuation), no bank is willing to explore the fresh financing in view of his age and more importantly, the pending bankruptcy lawsuit.
Solution	Secured a $10M financing (@ 71.4% LTV from a non-bank lender, out of which $8.5M was to redeem his existing bank loan with another $1.9M to be earmarked to be paid to the supplier on the agreed deadline. Remaining $600K was disbursed to the Borrower for his personal use. With the payment made to the supplier and eventual complete withdrawal of the bankruptcy application, we have thus successfully helped our customer to avert the disaster of being made a bankrupt at this age and he can now refocus on rebuilding and restructuring his other business portfolio

Challenge 6	MULTI-PROPERTIES OWNER
Deal Type	Refinancing (with fresh cash-out)
Property	Good Class Bungalow (“GCB”) in Holland vicinity
Property Value	$70M
Existing Mortgage	$28M
New Loan Amount	$50M (with fresh $22M cash-out)
LTV	71.4%
Synopsis	At the age of 60, our borrower stood as a seasoned property investor with a remarkable portfolio of prestigious GCBs and luxurious Sentosa Bungalows. His journey was a testament to years of astute investment decisions. However, even a seasoned investor can face hurdles. Despite his impressive corporate and professional profile, the ever-evolving TDSR regulations had cast a shadow over his aspirations for further financial growth. His own bank had to adhere to these stringent regulations, leaving him unable to access additional facilities.
Solution	With determination and creativity, we set out to secure a $50 million mortgage loan from a non-bank lender. What made this solution stand out was the 18-month interest servicing repayment plan. Now equipped with fresh capital, our borrower could breathe new life into his retail business, expanding it like never before with a $22 million cash-out facility. But our assistance didn’t stop there. We successfully guided the borrower in refinancing the mortgage loan back to a local private bank just nine months after the initial disbursement. This win is a narrative of resilience and adaptability.

Challenge 3	POOR CREDIT GRADING
Deal Type	Refinancing with Fresh Cash-Out
Property	Bungalow in Katong
Property Value	$9M
Existing Loan	$5M
New Loan Amount	$7.5M (with fresh $2.5M Cash-Out)
LTV	83.3%
Synopsis	At 62 years old, our customer faced a roadblock. His aspirations for additional mortgage financing hit a snag as his bank hesitated due to both his age and an unfavorable “HH” credit bureau rating. This rating was a result of overdue credit card facilities amounting to a hefty $1.2 million.
Solution	With a determined spirit, we sought out an alternative path. Through our network of non-bank lenders, we secured a remarkable $7.5 million term loan facility. It was not just a financial transaction; it was a lifeline. The first step was to use $2.5 million of this fresh term loan to clear off the burdensome $1.2 million in overdue credit card facilities. It was a moment of relief, a chance to leave the past behind. But that was not all. The remaining funds were now at our customer’s disposal for personal investments, a fresh start to chase new dreams. This story encapsulates our commitment to finding solutions when doors seem closed. .