Key takeaways Short-term loans provide financing with a brief repayment period and often require collateral to obtain. These loans are generally capped at $2,000 and are often used by borrowers who are strapped for cash or who have a low credit score. Loan funds are provided quickly, but you’ll likely pay a steep interest rate or finance charge due to the level of risk the lender takes on. There are alternatives to short-term loans that could be less expensive and better for your financial needs. ...