Payday loans are short-term loans that can be easily obtained even with bad credit. The loan repayment period is typically less than two weeks, and you can even pay off your loan early without incurring any penalties.
However, these loans can be expensive compared to other means of borrowing money.
1. Short-term loans allow you to obtain funds quickly
When you need money quickly but don’t have the credit to get a traditional loan, short-term loans are an excellent option. These loans are easy to apply for online and are wired directly into your bank account upon approval.
They are based on your business’s accounts receivables, meaning that the lender will charge you interest on the outstanding invoices. If you fail to pay your debts, the lender will interrupt your payments and deduct the interest from the loan.
Short-term loans are great for individuals with bad credit or small businesses. They are usually for a smaller amount than a traditional loan, and you pay them back sooner than if you were to have taken out a longer loan.
And because they have a shorter repayment period, you don’t have to worry about making large monthly payments.
2. Easy ways of borrowing money
Payday loans are among the easiest forms of financing. The average fee is $10 to $30 for every $100 borrowed.
The fees and interest can compound over time and add up to a cycle of debt. Instead, look into personal loans, which are generally less expensive and offer longer repayment periods.
Another option is to consider a federal credit union. The lending union is likely to offer lower interest rates on their loan products. However, these lenders often require direct deposits from members and prefer that their members have a good credit history.
3. They have repayment terms of two weeks or less
Payday loans from SpeedyCash are a common way to borrow money for emergency situations, but they also have risks. People can fall into a cycle of debt if they do not pay them back.
In Canada, these loans are legal, but the repayment terms are short and they are not advisable for long-term use.
4. They allow you to repay your loan early without any penalties
Payday loans are short-term loans, which can be immediately available in Canada. Payday lenders deposit the money into your bank account, give you a cheque, or even give you a prepaid debit card.
Sometimes, they may charge a small fee to activate the card. In order to get the money, you will have to sign an agreement. It will detail the fees, interest, and due date. It is advisable to ask for as much information as possible.
Payday loans are popular in Canada. You can apply online, and if your application is approved, you can collect the money at a store near you. In Canada, you can also receive the money by Interac e-Transfer or direct deposit. In some provinces, however, payday lenders cannot extend a payday loan.
Most lenders offer different repayment methods, and you will have to choose the one that works best for you. For example, you can set up automatic payments from your checking account, or you can mail a check. Another option is to use your banking information to pay online. This is one of the fastest ways to get money.