Short-term loans are widely used by friends who borrow money. They are very popular with everyone. The so-called short-term loans generally have a short repayment time. This kind of loan term generally refers to short-term loans within 65,438+0 years (including 65,438+0 years), which can be divided into different loan terms according to different time. There are several types: loans within three months can be called temporary loans, while loans from three months to nine months are current loans, so loans with a time range from nine months to 1 year are called revolving loans.

1 advantages

Compared with medium and long-term loans, short-term loans are characterized by short term, low risk and, most importantly, low interest rate. In addition, because the acquisition procedure is relatively simple, enterprises and individuals can use funds flexibly according to their own needs. Therefore, this kind of loan is very popular with enterprises and has become an important financial resource reserve for many enterprises.

2. Deficiencies

The most obvious disadvantage of this kind of loan is that it will be repaid in a short time, and it can't meet the long-term capital demand of enterprises to a great extent, so it is easy to cause some enterprises or individuals to make mistakes in the allocation of capital structure. In this case, it is necessary for enterprises to have a good capital flow mechanism to avoid causing financial difficulties, deteriorating solvency and falling into the abyss of financial difficulties.

Under normal circumstances, the interest payment method of short-term loans is quarterly interest settlement, the 20th of the last month of each quarter is the interest settlement time, and the 20th of each month is the monthly interest settlement time. Under normal circumstances, the specific interest settlement method needs to be negotiated between the borrower and the lender. If the borrower fails to pay the interest on time, it needs to charge compound interest at the penalty interest rate.

Short-term loans are good for both sides:

1, the borrower benefits.

Short-term loans are generally small loans, and applying for such loans is also beneficial to borrowers. First of all, the application for short-term loans is relatively simple. After the borrower provides the information, the loan funds can be obtained after approval. Among them, the review is also relatively fast, such as credit cards, which are also short-term microfinance loans, and the application is very simple. Secondly, short-term loans need less guarantees, so borrowers do not need to look for third-party guarantees.

2. Lenders' interests

Short-term loans have many advantages for lenders. Generally speaking, lenders are banks or financial companies. The risk of short-term loans is relatively low. As can be seen from the proportion of non-performing loans of banks, the long-term loans of most banks are in poor condition. Short-term loans have less funds and short periods, so the risks are naturally smaller.

The above is my popularization of short-term loans. You should clearly introduce its advantages and disadvantages, hoping to help everyone!