What's the difference between short term loans and personal loans?

While a short term loan, also known as a payday loan, is a type of personal loan, there are a number of differences. Personal loans are generally taken out over 1 to 7 years, whereas a payday loan is between 16 days and 1 year. Payday loans are also for smaller amounts – between $100 and $5,000 – and are available to those with bad credit.

What if I'm rejected for a personal loan?

Each lender has their own process and criteria, so if you're not approved for one loan, you can still apply for another. It's best to aim to meet the advertised criteria rather than apply for as many loans as possible, as too many applications can reflect poorly on your credit score, making it harder to get approved for future loans.

I'm having trouble repaying my loan – what do I do?

If you are having trouble repaying your loan, you'll need to get in contact with your lender. They may be able to organise a payment plan with you or be able to offer you some sort of option to help you manage your repayments. You also have the option of getting in touch with a free financial counsellor on 1800 007 007 to help you organise a budget.

Can I use a personal loan to buy equipment for my business?

Yes, personal loans can help with your business needs too. You can access personal financing to help cover business needs – everything from trucks to equipment can be purchased or even leased with a personal loan . The same is true even if you have bad credit. Business vehicles including company cars, trucks or vans can all be financed with a personal loan. If your business requires specific equipment to purchase or lease, such as forklifts, earth-moving equipment, workshop machinery or even office equipment, you can take out a personal loan to help cover the costs . You won't have to hurt your business's cash flow to make the purchase.