Short-term Loans in Cape Town | Strand | Helderberg | Somerset West.: Short-term Low Credit Score Loans. Our Low Credit Loans range between R 1 000 up to R 15 000 and repayment terms can vary from 6 months up to 24 months. Personal loans. Our Personal loans range from R 15 000 up to R 150 000 and repayment terms can vary from 12 months up to 60 months. Consolidation Loans.
According to their duration, the intended use, the collateral, the lenders and the legal position of the borrower, a distinction must be made between short-term and long-term loans. Literature and statistics frequently mention medium-term loans, which, depending on the structure, can be classified as either short-term or long-term. One form of financing, geared specifically to foreign trade, is the external financing of trade, which includes international payment, security and financial instruments.
Short-term loans have a term of up to 12 months. They are the most common form of lending. Short-term types of loans are differentiated into bank loans, trade credits and special forms. Bank credits can be further extended into money loans (with which banks provide capital to borrowers for book or cash) and credit loans (Take over eg a guarantee or guarantee for the customer).
Short-term bank loans are often taken out to settle accounts payable, but also to finance the production phase and / or payment terms that the operation must grant to its own customers. The trade credits, which are also referred to as commercial credits, are made available to the so-called non-banks (suppliers, but also customers).
Trade credits are, on the one hand, supplier credits, ie loans which the company receives from its suppliers in the form of payment terms (and which are to be included in the balance sheet of the borrowing company as trade payables). On the other hand, trade credits are prepayments or down payments which the company receives from its customers and which are therefore also referred to as customer loans.
The bank loans made available can still be subdivided into current account overdrafts and bill of exchange loans. The overdraft facility is the provision of a credit line on the customer’s current account. Nonetheless, this relatively expensive type of loan is an instrument used very often in practice to remedy liquidity shortages.
In the case of credit lending, the bank provides the customer (borrower) with its own creditworthiness (in the form of a guarantee, guarantee or acceptance). For the credit loan, the bank does not charge interest, but a commission.
Types of loan borrowing are the acceptance and the guarantee loan. The acceptance loan is granted by a credit institution by accepting a bill of exchange drawn up by the borrower within a specified amount of credit and undertaking to pay the bill of exchange upon maturity to the bill holder.
The guarantee loan is a loan transaction in which the bank (credit guarantor) assumes liability for the liabilities of a customer (guarantor) to a third party in the form of a guarantee or guarantee.