Short-term lending refers to the practice of borrowing or lending money for a relatively brief period, typically ranging from a few days to a few months. It is commonly used by individuals, businesses, and even governments to meet immediate financial needs or bridge temporary cash flow gaps. Here are some key points about short-term lending:

1. Types of Short-Term Loans: Short-term lending can take various forms, including payday loans, cash advances, lines of credit, instalment loans, and merchant cash advances. The terms, interest rates, and repayment schedules may differ depending on the type of loan and the lender.

2. Purpose: Short-term loans are often used to cover unexpected expenses, such as medical bills or vehicle repairs. Businesses may use short-term loans to manage inventory, meet payroll obligations, or seize time-sensitive opportunities.

3. Higher Interest Rates: Compared to long-term loans, short-term loans typically carry higher interest rates. This is because lenders assume a greater risk due to the shorter repayment period and the absence of extensive credit checks.

4. Speed and Accessibility: Short-term loans are designed for quick access to funds. Many lenders offer streamlined application processes, often online, allowing borrowers to receive funds within a short period, sometimes even within a day.

5. Collateral and Creditworthiness: Short-term loans may or may not require collateral, depending on the lender and the borrower's creditworthiness. Some short-term loans, like payday loans, may not require collateral but rely more on the borrower's income and ability to repay.

6. Considerations and Risks: While short-term loans can be useful in emergencies, borrowers should be cautious about their borrowing capacity and repayment capabilities. Failing to repay short-term loans on time can lead to additional fees, higher interest rates, and damage to credit scores.