For emergency financing needs, there are short-term loans that people can avail. It might be that someone's car broke down and repair is needed or somebody wants to avoid paying late the household bills, which in both cases  there are loans available that they can turn to. The thing left to do is to identify which loan is the most appropriate for a particular type of cash flow emergency.

When cash is tight, it is usually the time when people turn to loans for their own specific purpose. The purpose of getting the loan could be paying the cost of tuition fees or paying the cost of repairing the kitchen. The maturity for these loans range from a few months to 1 year. For people who need money quickly for a very important spending, these products are highly recommended. In just minutes or a few hours loan applicants can already get an approval especially for online applications.

Banks and credits unions are the financial institutions involved in distributing these types of loans to businesses and consumers. Each borrower can avail of loans that range from $1,000 to $15,000.

These types of credit have high interest rates, but the rates are fixed so they can never go higher. Compared to long-term loans, borrowers will have lower interest payments in short-term credit because the repayment period is much shorter.

Some loans mature in a period from 90 to 120 days. The repayment structure for each type of short-term credit is dependent on the bank's view of the loan's purpose.

The approval of every application depends on the payment history and cash-flow status of the borrower. Banks can determine the borrower's ability to pay back the loan amount by checking the individual credit history and credit score.

For short-term loans, banks only need to make an extensive check of the applicant's financial record and most of them do not require any collateral. Examples of institutions that offer unsecured loans are colleges and universities.

Secured loans are also offered by some institutions. Borrowers are requested to submit collateral such as property or accounts receivables for their loans to be processed. Banks usually offer better rates and more lax credit terms for collaterized loans. Banks clearly want safer investments by choosing this kind of transaction.

There are Internet sites that allow borrowers to apply online. Banks and credit institutions have online presence, so borrowers can easily send their application for short-term loans over the web. Online loan applications are usually approved quickly. Borrowers would just need to accomplish several online forms that ask for their income details, work history, and loan requirements.