What Is a Small Loan?
A small loan typically refers to borrowing a lower amount, usually to cover short-term gaps such as:
- Unexpected household costs
- Temporary income shortfalls
- Urgent everyday expenses
The size of the loan does not reduce the importance of affordability checks or suitability. Even smaller amounts must be assessed carefully to ensure repayments are realistic.
Small Loans and Bad Credit
Having a poor credit history does not automatically mean borrowing is impossible — but it does mean decisions must be made carefully.
Cashfloat does not approve or decline applications based on a single number or past event alone. Instead, we look at the broader picture, including:
- Current income and essential outgoings
- Recent financial behaviour
- Whether repayments appear affordable and sustainable
This approach applies equally to small loans and larger amounts.
Why Smaller Amounts Can Be Appropriate
For some borrowers, requesting a smaller amount can:
- Reduce repayment pressure
- Shorten the borrowing period
- Make affordability easier to assess
However, borrowing less does not guarantee approval. Every application is assessed individually to determine whether a loan is likely to help rather than create further difficulty.
Responsible Lending Still Applies
Small loans are still regulated financial products. This means:
- Affordability checks are required
- Costs are capped under FCA rules
- Clear repayment schedules must be agreed
- Support is available if circumstances change
Cashfloat applies the same standards to all loans, regardless of size.
How Small Loans Fit Within Bad Credit Borrowing
Small loans are one subset of bad credit borrowing — not a separate lending category.
Borrowers looking for options with poor credit histories should understand the full range of considerations, protections, and assessment criteria that apply.
To understand how Cashfloat approaches bad credit borrowing as a whole — including eligibility, affordability, and borrower protections — visit our main guide below.
👉 Learn how Cashfloat assesses bad credit loan applications
Regulatory Notice
Cashfloat Loans is a trading style of Western Circle Limited. Authorised and regulated by the Financial Conduct Authority. FCA full permission licence: 714479.
Proceeding Carefully
If you’re considering borrowing, take time to understand whether a loan — of any size — is appropriate for your situation.
Cashfloat encourages borrowers to:
- Review costs carefully
- Consider alternatives where available
- Contact us early if circumstances change
Independent guidance is also available from organisations such as MoneyHelper.