Presentation on short term Loans
Martin Yon – CEO web internet marketing
John Mint – siloans.com website owner, offering
short term loans.
Loan in finances
In finance, a loan is a debt evidenced by a note which specifies, among other things, the
principal amount, interest rate, and date of repayment. A loan entails the reallocation of
the subject asset(s) for a period of time, between the lender and the borrower.
In a loan, the borrower initially receives or borrows an amount of money, called the
principal, from the lender, and is obligated to pay back or repay an equal amount of
money to the lender at a later time. Typically, the money is paid back in regular
installments, or partial repayments; in an annuity, each installment is the same amount.
The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan. In a legal loan, each of these
obligations and restrictions is enforced by contract, which can also place the borrower
under additional restrictions known as loan covenants. Although this article focuses on
monetary loans, in practice any material object might be lent.
Why short term loans?
Short term loans are a good way to increase
One thing to consider when getting a term loan
is whether the interest rate is fixed or floating
Time to maturity
Interest – APR
Variable rate – linked to base rates
Repayment holidays – improve your cashflow by
making no loan repayment or repaying only
interest for a fixed term after drawing down your
Repayment style – choose from capital and
interest, capital only or interest only.
Repayment frequency – pick the frequency that
suits you from monthly, quarterly, half yearly and
Staged drawdown – save on interest costs and
enjoy lower initial payments.
Who can have a short term loan?
You must be at least 18 years of age
Have a job (or other regular source of income)
You must have an active open bank account
Usually more expensive
Not secured by collateral the lender raises
interest rates to cover the risk
Before giving you short term loans the lender is
likely to investigate into your credit history and if
it is excellent you will be offered lower APR –