https://www.allthelenders.co.uk/assets/ShortTermLoans-DONhnDxx.js

1import{j as e,L as r,B as s}from"./index-c-7JXoDX.js";import{S as t}from"./SEOHead-CTdqXB-0.js";import{H as n,F as o}from"./Footer-DG5eVaFo.js";import{P as l}from"./PageHero-CvlV9xS7.js";import{C as a}from"./ContentBox-wgUC7cf9.js";import"./allthelenders-logo-D5NueilX.js";const x=()=>e.jsxs("div",{className:"flex min-h-screen flex-col",children:[e.jsx(t,{title:"Short-Term Loans Explained — How They Work in the UK | allthelenders",description:"Understand how short-term loans work, what the FCA price cap means, and how to compare lenders by total repayable — not just APR.",path:"/short-term-loans"}),e.jsx(n,{}),e.jsxs("main",{className:"flex-1",children:[e.jsx(l,{title:"Short-term loans explained",size:"compact",containerWidth:"narrow",productType:"short_term",breadcrumbs:[{label:"Home",href:"/"},{label:"Help & info",href:"/help"},{label:"Short-term loans explained"}]}),e.jsx("article",{className:"py-6 md:py-8 bg-white",children:e.jsxs("div",{className:"container-narrow space-y-6",children:[e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"What are short-term loans?"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Short-term loans are regulated credit products designed to be repaid over a relatively short period of time, typically between 1 and 12 months. They are commonly used to cover temporary cash shortfalls, unexpected expenses, or timing gaps between income and outgoings."}),e.jsxs("p",{children:['In the UK, short-term loans are regulated and must comply with strict rules designed to protect borrowers. These rules apply regardless of whether a lender markets their product as a "short-term loan", "payday loan alternative", or similar. Read more about ',e.jsx(r,{to:"/how-payday-loans-are-regulated",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"how short-term loans are regulated"}),"."]}),e.jsx("p",{children:"allthelenders compares regulated short-term loans and helps you understand the real cost of borrowing before you apply."})]}),e.jsxs("div",{className:"mt-6 space-y-2",children:[e.jsx(s,{asChild:!0,size:"lg",variant:"short-term",className:"text-base px-8 font-semibold btn-hover shadow-soft",children:e.jsx(r,{to:"/payday-loans",children:"Compare short-term loans"})}),e.jsx("p",{className:"text-sm text-muted-foreground",children:"1-12 months"}),e.jsx("p",{className:"text-sm font-bold",children:"Representative 79.5% APR"})]})]}),e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"How short-term loans work"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Short-term loans generally involve borrowing a fixed amount (for example, £100–£1,500), agreeing a repayment period (such as 1 to 12 months), and repaying the loan in one payment or multiple instalments, depending on the lender and product type."}),e.jsx("p",{children:"Different lenders structure repayments in different ways. Some require equal monthly repayments, while others use reducing balance repayments, where the amount you pay each month decreases as the outstanding balance reduces. Some products may involve a single repayment, particularly for very short durations."}),e.jsxs("p",{children:["Because of these differences, comparing short-term loans by APR alone does not always show how much you will actually repay."," ",e.jsx(r,{to:"/payday-loans",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"Compare lenders by total repayable →"})]})]})]})]})}),e.jsx("section",{className:"relative overflow-hidden section-tint py-6 md:py-8",children:e.jsx("div",{className:"container-narrow relative z-10",children:e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"Short-term loans and payday loans: what's the difference?"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsxs("p",{children:['Many people still search for "payday loans", even though the market has changed significantly. For more on how the term has evolved, see ',e.jsx(r,{to:"/what-is-a-payday-loan-today",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"what is a payday loan today?"})]}),e.jsx("p",{children:"Historically, payday loans were very short-term products, often repaid in a single lump sum and lightly regulated before 2014."}),e.jsx("p",{children:"Today, most products people refer to as payday loans fall under the category of regulated short-term credit. These products are subject to rules that limit how much lenders can charge and how they must treat customers."}),e.jsx("p",{children:'In practice, "payday loan" is now an informal or legacy term, while "short-term loan" is the more accurate description for regulated products available today.'}

1),e.jsx("p",{children:"allthelenders focuses on regulated short-term loans, regardless of how they are described in search terms or marketing."})]}),e.jsxs("div",{className:"mt-6 space-y-2",children:[e.jsx(s,{asChild:!0,size:"lg",variant:"short-term",className:"text-base px-8 font-semibold btn-hover shadow-soft",children:e.jsx(r,{to:"/payday-loans",children:"See regulated short-term loan options"})}),e.jsx("p",{className:"text-sm font-bold",children:"Representative 79.5% APR"})]})]})})}),e.jsx("article",{className:"py-6 md:py-8 bg-white",children:e.jsxs("div",{className:"container-narrow space-y-6",children:[e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"FCA regulation of short-term loans"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Short-term loans in the UK are regulated by the Financial Conduct Authority (FCA). The FCA introduced significant reforms to the high-cost short-term credit market to improve consumer protection and reduce harm."}),e.jsx("p",{children:"These reforms followed widespread concerns about unaffordable lending, excessive charges, and poor treatment of customers in the early payday loan market."}),e.jsx("p",{children:"The FCA rules apply to all regulated lenders offering short-term credit and are designed to ensure borrowing costs are limited and customers are treated fairly."})]})]}),e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"The FCA price cap explained"}),e.jsx("p",{className:"text-lg text-muted-foreground leading-relaxed mb-6",children:"One of the most important protections introduced by the FCA is the price cap on high-cost short-term credit."}),e.jsxs("div",{className:"space-y-4",children:[e.jsx("div",{className:"bg-secondary rounded-xl p-5 border border-border/50",children:e.jsxs("div",{className:"flex items-start gap-3",children:[e.jsx("div",{className:"w-2 h-2 rounded-full bg-accent mt-2.5 flex-shrink-0"}),e.jsxs("div",{children:[e.jsx("h3",{className:"text-lg font-bold mb-1",children:"Daily interest cap"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed",children:"Lenders cannot charge more than 0.8% per day on the amount borrowed."})]})]})}),e.jsx("div",{className:"bg-secondary rounded-xl p-5 border border-border/50",children:e.jsxs("div",{className:"flex items-start gap-3",children:[e.jsx("div",{className:"w-2 h-2 rounded-full bg-accent mt-2.5 flex-shrink-0"}),e.jsxs("div",{children:[e.jsx("h3",{className:"text-lg font-bold mb-1",children:"Total cost cap"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed",children:"The total cost of borrowing — including interest and fees — cannot exceed 100% of the amount borrowed. This means you will never be required to repay more than double what you borrowed."})]})]})}),e.jsx("div",{className:"bg-secondary rounded-xl p-5 border border-border/50",children:e.jsxs("div",{className:"flex items-start gap-3",children:[e.jsx("div",{className:"w-2 h-2 rounded-full bg-accent mt-2.5 flex-shrink-0"}),e.jsxs("div",{children:[e.jsx("h3",{className:"text-lg font-bold mb-1",children:"Default fee cap"}),e.jsx("p",{className:"text-muted-foreground leading-relaxed",children:"If you miss payments, default fees are capped and interest cannot continue to grow indefinitely."})]})]})})]}),e.jsx("p",{className:"text-lg text-muted-foreground leading-relaxed mt-6",children:"These rules apply regardless of the lender or product type."}),e.jsxs("div",{className:"mt-6 space-y-2",children:[e.jsx(s,{asChild:!0,size:"lg",variant:"short-term",className:"text-base px-8 font-semibold btn-hover shadow-soft",children:e.jsx(r,{to:"/payday-loans",children:"Compare loans within FCA price cap"})}),e.jsx("p",{className:"text-sm font-bold",children:"Representative 79.5% APR"})]})]}),e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"Why short-term loan costs can still vary"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Even with the FCA price cap in place, the total amount you repay can vary significantly between lenders."}),e.jsx("p",{children:"This is because lenders may differ in how interest is calculated (for example, flat interest versus reducing balance), whether repayments are equal or reducing, whether the loan is repaid monthly or in a single payment, and how fees are structured within regulatory limits."}),e.jsx("p",{children:"For this reason, allthelenders compares lenders by total amount repayable rather than relying solely on APR."})]})]}),e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"Checking eligibility before you apply"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Applying for credit you are unlikely to be eligible for can lead to unnecessary declines and frustration."}),e.jsx("p",{children:"Each lender has its own criteria, which may include minimum income levels, age requirements, employment status, residency and banking requirements, and loan amount and term limits."}),e.jsx("p",{children:"allthelenders allows you to check eligibility with a lender before you apply. This check does not affect your credit score, is based on lender-prov

1ided criteria, and is an indication only, not a guarantee of acceptance. You'll then be taken to the lender's website to start your application."})]}),e.jsxs("div",{className:"mt-6 space-y-2",children:[e.jsx(s,{asChild:!0,size:"lg",variant:"short-term",className:"text-base px-8 font-semibold btn-hover shadow-soft",children:e.jsx(r,{to:"/payday-loans",children:"Check eligibility before applying"})}),e.jsx("p",{className:"text-sm font-bold",children:"Representative 79.5% APR"})]})]}),e.jsxs(a,{children:[e.jsx("h2",{className:"mb-4",children:"Are short-term loans right for you?"}),e.jsxs("div",{className:"space-y-4 text-lg text-muted-foreground leading-relaxed",children:[e.jsx("p",{children:"Short-term loans may be suitable for covering temporary financial needs, but they are not a long-term solution."}),e.jsxs("p",{children:["Before applying, it's important to consider whether you can afford the repayments, whether the borrowing is necessary, and whether alternative options may be available. Read our guide on ",e.jsx(r,{to:"/are-loans-right-for-you",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"whether loans are right for you"})," and explore ",e.jsx(r,{to:"/alternatives-to-payday-loans",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"alternatives to payday loans"}),"."]}),e.jsxs("p",{children:["If you're already struggling with repayments, free help is available — see ",e.jsx(r,{to:"/struggling-to-repay",className:"text-primary underline underline-offset-4 hover:text-primary/80 font-medium",children:"what to do if you're struggling to repay"}),"."]}),e.jsx("p",{children:"allthelenders provides information to help you make an informed decision, but does not provide advice or recommendations."})]})]})]})}),e.jsx("section",{className:"relative overflow-hidden section-tint py-6 md:py-8",children:e.jsx("div",{className:"container-narrow relative z-10",children:e.jsxs(a,{className:"text-center",children:[e.jsx("h2",{className:"mb-4",children:"Compare short-term loans"}),e.jsx("p",{className:"text-lg text-muted-foreground leading-relaxed mb-6",children:"You can compare regulated short-term loans, see the total amount repayable, and check eligibility before applying."}),e.jsxs("div",{className:"space-y-2",children:[e.jsx(s,{asChild:!0,size:"lg",variant:"short-term",className:"text-base px-8 font-semibold btn-hover shadow-soft",children:e.jsx(r,{to:"/payday-loans",children:"Compare short-term loans"})}),e.jsx("p",{className:"text-sm text-muted-foreground",children:"1-12 months"}),e.jsx("p",{className:"text-sm font-bold",children:"Representative 79.5% APR"})]})]})})})]}),e.jsx(o,{})]});export{x as default};