A so-called interim financing is more often found in the field of mortgage lending, for example, if the payment of the requested real estate loan or the home savings loan still takes some time and the customer therefore decides temporarily for a replacement financing. But even in the case of a short-term liquidity bottleneck that only lasts for a few weeks or months, the corresponding financing is referred to as interim financing. Mostly it is a small loan or a so-called mini loan , which is used for financing.
Numerous occasions for a meaningful interim financing
In practice, there are many occasions when interim financing may be necessary and useful. If, for example, a car repair has to be carried out, money is needed so that a flexible and fast interim financing can be provided, for example by a small loan or a mini loan. But other occasions, where a relatively small amount of money between a few hundred and up to 1,000 euros is required in the short term, can make interim financing meaningful, such as:
• Mobile phone purchase (old mobile phone defective)
• Advance the costs of dental treatment
• Finance a spontaneous holiday trip
• Purchase new kitchen appliance, for example stove
In general, interim financing makes sense, above all, when spontaneous expenditure must be financed quickly and easily that does not exceed a certain countervalue.
How does a bridging loan work in detail?
A big advantage of bridging finance, which includes either a small loan or a mini loan or microcredit, is the great flexibility and speed with which the credit amount is credited. Normally, a Schufa query will first be found, but some providers of small loans will also award the bridging loan as a loan without Schufa, that is, without querying the Schufa data. Speed also contributes to the fact that the customer often no longer has to take part in the time-consuming post-ID procedure, but instead most providers of mini-loans nowadays offer the WebIdent procedure. The credit decision usually takes only a few minutes, so the applicant knows immediately whether or not he receives the microcredit.
Interim financing via micro-credit cheaper than discretionary credit
Another advantage of interim financing by means of a small loan is that it is often cheaper than the use of the disposition credit. Particularly in the case of short-term liquidity bottlenecks and capital requirements, most consumers first of all think of availing themselves of their discretionary credit provided on the current account. However, the credit line is usually more expensive than a mini loan or a small loan. On the other hand, the credit limit on the current account is often already exhausted. If you use a loan calculator that is provided free of charge by most providers of short-term interim financing, you will quickly realize that a mini loan can save you between three and five percent in interest compared to using the disposition credit.
For whom is a small loan suitable as interim financing?
Irrespective of whether the bridging loan is now carried out as a microcredit, mini-loan or microcredit : this temporary financing is particularly suitable for consumers who have a short-term capital requirement of between € 100,000 and who can repay the money at the latest after two months. These are exactly the features that apply to mini-loans, and borrowing is usually possible even if there is a negative entry in the Schufa. Only on the condition that you need a larger loan amount beyond 2,000 euros and this can not be repaid within a few minutes months, offers instead of small loan as a bridging loan due to the more favorable terms and the longer maturity rather a classic installment loan.