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Anyone who has visited with a loan officer at a local bank or credit union knows that generally those financial institutions don't make loans of less than two or three thousand dollars, to be repaid in installments over a period of time. Of course there are perfectly logical reasons for their methods of operation. Making same day payday loans is not practical because the costs of making the loan can easily exceed the profits in the present economic climate.

Naturally, banks are in business to make a profit, that just makes sense. And credit unions are also in business to serve a group of members, but they are not supposed to lose money in their day-to-day operations. Again, making cash advance loans may not be in the best interest of the financial institution, even if it is in the borrower's best interest.

Some examples of situations in which a person might need a short term loan are waiting periods associated with awards from court settlements, the unemployment gap between jobs and a remodeling project when fixing up a house for resale. These situations are not uncommon, but they can all be somewhat awkward. They represent short time periods during which we know we have some money coming, but we just don't have it right now. If we don't have savings to cover our needs, then we need to find alternatives for short term loans.

So, what are some alternatives for short term loans and what are their advantages? Naturally, we often think of friends and family members when the time comes to borrow. And this plan, while it may have worked out well in the past, often fails these days because our friends and family members may not have the money to lend. It's that simple. The economic times are affecting everyone at every income level. Expecting a friend to help us out is a good way to end or at least strain a friendship. Expecting family members to step up and offer to help out is probably a big mistake. So, one of the most logical alternatives is cash advance lenders.

In a manner of speaking, credit card companies make cash advance loans, but they are not short term loans. They are installment loans that must be paid on a monthly basis, and that obligation might not be in line with the family budget. However, payday loan lenders make cash advance loans as short as seven days in duration. They are in business specifically to make short term loans, so they can help out in these situations mentioned above.