In everyday life it is impossible to avoid unexpected emergencies and there are many situations which can leave us short of just a small amount of cash. We understand that at some point most of us will need a small loan, so we are committed to helping people find competitive loans as easily as possible. As a broker we help people every day find the small loan they need from our extensive panel of lenders. If you are looking to borrow a small amount, this useful guide will provide the information you need to find the best loan for your situation.
The definition of a small loan varies, however in general the term ‘small loan’ is used to describe loans of less than £1000 which are repaid in less than 12 months. There are many reasons why small loans are needed, although unexpected expenses which don’t fit within a person’s normal monthly budget tend to be the main reason. For example, unexpected car repair bills, an urgent utility bill, a broken boiler or urgent home improvements can cause a lot of stress if the funds are not readily available, however a small loan could be taken out to cover the cost.
Although you may manage your finances effectively to ensure your bills are paid and you have enough cash to cover day-to-day spending, there are times when unexpected bills arise. In an ideal situation your income would cover living costs with a surplus to save as a financial cushion each month. However, despite your best efforts these emergencies can leave you short of cash and small loans are available to fill these gaps in your finances.
If you are looking for a small loan, the first thing you need to understand are the types of loans available to you. There are many factors which will determine the type of loan you should be looking for, including your credit history, the amount you are looking to borrow and the ideal terms. A small loan can provide you with the funds you need for a range of financial emergencies and there are a range of loan types available.
Small loans are typically borrowed for a few hundred pounds and repaid over the course of weeks and months rather than years, so they can be ideal for cash emergencies. A short-term loan for a small amount can provide the funds you need to resolve a financial emergency, although you should always stick to the repayment plan agreed with the lender. In many situations it is impossible to avoid these unexpected events, but if you are struggling financially it is important to consider the implications of the loan type and whether you can comfortably afford the repayments.
Unsecured personal loans are one of the most popular forms of borrowing, as you are not required to provide collateral as security for the loan, which means there is no risk to your assets. In general, the lowest interest rates will be offered to those with a good credit history. However, if you have a poor credit history you may still be eligible for a competitive unsecured small loan. In comparison, secured loans tend to be taken out for larger amounts, where there is an increased risk to the lender.
In the past many people turned to payday loans when they needed a small loan to tide them over until the next payday. They are designed to be short-term small loans, which are repaid in full on the borrowers next payday. Although payday loans can provide a small loan in an emergency situation, they do tend to have higher interest rates than other forms of lending.
If you need to borrow a small loan but are unlikely to be accepted, you may be able to take out a guarantor loan. For example, if you have a very poor credit rating a close relative or friend could agree to co-sign the loan agreement. They will need to meet the criteria to be accepted for the loan which varies between lenders. Although in general they should have a good credit history, be employed and be a UK resident. If you fall behind on repayments for the loan the guarantor will become responsible for making the repayments, so it is important that you seriously consider the implications of this.
It may be possible to apply for a credit card which will provide access to funds to cover emergency expenses. If you are able to repay the borrowed amount quickly, they can offer an affordable form of borrowing and they are widely accepted as a form of payment. Although, if you are unable to repay the borrowed amount quickly, the interest charges and fees can build up over time due to the revolving credit card balance. Depending how quickly you need the cash it can take days or sometimes weeks for the application to be processed and the card to arrive. If you do not have the luxury of waiting for this, a short-term loan may be a quicker option.
Here at CashFlex we understand that when you are looking for a small loan you probably need it quickly, that is why the whole application can be completed online and takes just a few minutes. When you complete the 2-minute form on our website we will send your application to up to 40 lenders, so that you apply to a lender which indicates a strong chance of approving your loan.
The innovative application form on our website will ask a few personal details, such as your name, address and phone number. You will also need to provide details of your employment and earnings, so the lender can assess your ability to repay the loan. The information you provide is then shared with our direct lender partners so that you receive a quick loan decision. The information you provide is only shared with our trusted panel of lenders and is kept secure using our 256 Bit security.
We will match you to a lender which closely matches your financial requirements, so that you have the best chance of borrowing the exact loan you require. Once you are matched to a lender you will be sent to their website, where you will need to provide a few further details to complete the application.
The whole process is designed to be quick and if your application to the lender is approved, you could be sent the cash to your bank account in just minutes*. However, the exact availability of the funds will vary between banks as each bank will have different processing speeds.
We specialise in helping those which are looking for the best option for a small loan, with loans available between £100 and £5,000. The loans our lenders provide are designed to be flexible, so you can use the tool on our website to create a personalised loan quote. The repayment terms vary depending on the amount you borrow, with small loans of less than £1,000 offered repayment terms of 3, 6 or 12 months. The term length increases in line with the amount you borrow, so if you borrow more than £2,000 you will be offered repayment lengths of 12, 18, 24 or 36 months.
We know that it can be difficult to find small loans if you have a poor credit history, however we may still be able to help. We have developed our innovative QuickCheck tool, which will give you an instant estimate about whether our lenders are likely to approve your loan. There are a few simple questions to answer, which are designed to provide us with an understanding of your financial circumstances and the affordability of the loan.
If our QuickCheck tool indicates you are likely to be accepted for a loan, the next stage will be to complete our 2-minute application form. This information will then be passed to lenders who will complete a soft check of your credit file, although this will not leave a footprint on your record. When the first lender responds to the application indicating a strong chance of approval you will be redirected to their website to complete a final application.
At this point you will be matched to the lender who is most likely to approve your application. Each of our lenders we partner with is authorised and regulated by the Financial Conduct Authority, so they will conduct a hard check of your credit file if you decide to proceed with the final loan application on their website. This will leave a footprint on your credit record and if you do have a poor credit score, our lenders may still be able to approve your application if you pass their affordability checks. As responsible lenders, it is important to them that you only borrow an amount which you can comfortably repay.
If the credit check shows that you have a poor credit history, you loan may still be approved. Our panel of lenders are chosen because of their progressive approach to lending, so if you can show the loan is affordable and demonstrate a commitment to repaying the loan, you may still be approved. Although, you will need to meet the lenders eligibility criteria, which usually requires you to hold a UK bank account and debit card, be aged over 18, in regular employment and be a UK resident.
As a loan broker, we believe that the best place for you to get a small loan will depend on your individual requirements. However, our website is a good place to get a small loan as we offer many benefits compared to approaching lenders directly. In fact, the CashFlex Loans team has more than 120 years’ experience in providing financial services and innovative comparison websites. Our service is completely free of charge to you so there are no additional charges to pay for your loan. If you are approved and do take out a loan from one of our lenders, they pay us directly.
Our wealth of experience will help you find the right lender for your small loan, without completing multiple time-consuming applications to individual lenders. In addition, when you use our site you will only have one credit check footprint on your record, compared to numerous checks if multiple lenders carried out hard credit checks on your file. It is advisable to avoid multiple footprints on your file as too many in a short space of time could impact your credit score.
We are committed to only connecting our customers to reputable and trustworthy lenders, so each of our partners is authorised and regulated by the FCA. By taking out a loan with one of our FCA approved lenders, you will benefit from clear and transparent loan terms, including details about the total amount you will be expected to pay and the amount of your monthly instalments. The FCA have also implemented price caps on small loans with short terms, so you will never be charged interest of more than 0.8% per day when you borrow through our lenders.
Although you may only be thinking of borrowing a small amount it is still a loan, so you should take the time to consider whether it is the right option for your financial circumstances. The loan should only be taken out as a short-term financial bridge, which you can comfortably repay without leading to financial hardship. During the application process you are under no-obligation to continue with the loan and free financial advice is available from a variety of impartial organisations, such as The Money Advice Service, Step Change, PayPlan, National Debtline, the Debt Advice Foundation and Citizens Advice.
These organisations will help you review your finances, so that you can take an active approach to budgeting and ensure you will be able to afford any loan payments. By tracking your spending and making the most of opportunities to reduce some areas of your usual budget, you may be able to find opportunities to save in the future.
Why choose us
Sometimes, the unexpected happens that means you need money fast. Here at Cashflex we offer a user friendly process to help you find same day loans in a responsible and affordable way.
The exact amount you can borrow depends on your personal circumstances and can differ by lender. You can apply for a loan between £100 and £5,000
This is dependent on the amount that you wish to borrow. The repayment terms can be: 3 months, 6 months and 12 months to name a few, ranging right up to 36 months.
Yes. If you are unsure you can use our FastCheck tool to find out your loan eligibility.
Try our FastCheck tool with no impact to your credit score
Our new tool allows you to calculate your chance of being accepted for a loan.
Representative Example: Amount of credit: £1200 for 18 months at £90.46 per month. Total amount repayable of £1628.28. Interest: £428.28. Interest rate: 49.9% pa (variable). 49.9% APR Representative.
We’re a fully regulated and authorised credit broker and not a lender.