The Different Types of Short Term Loans 1 | Page 10

As such, payday loans are often better suited to customers who
usually have the means to repay a sizable lump sum but for
whatever reason need to borrow money on a short term basis.
Take for examples a consumer who usually have about £400.00
disposable income, after all normal bills and expenses have
been paid. An unexpected cost results in a requirement for a
short term loan; say for example a broken washing machine
with a replacement value of £200.00.