Do you often find yourself or your business hitting rock bottom with financial emergencies? If yes, then this article is just the right thing for you.
Being a business owner, you might be familiar with different ways to generate cash or capital for your business. Undoubtedly, finances play an important role in business operations. A well planned financial plan determines the smooth functioning of your business. Cash flow management keeps a check on your business’ monetary details. It determines decisions of what, when, where to spend the money.
Now, imagine this, you want to pay for some urgent repairs. Your debtors are not able to pay the balance they owe to your Canadian business. This could lead to a huge financial gap.
But the show must go on. Right? You can’t let your limited finances be a hurdle in the growth of your business. And asking for money from your friends and family members shouldn’t be an option. Trust me. You wouldn’t want to face the awkwardness that comes with it. So don’t!
So, what financial strategies or decisions help the business owners to sustain their business in the Canadian market?
Some smart businessmen use their presence of mind and opt for to balance the financial crunch. You might be familiar with payday loans. If not, then let me give you some insights on the loan policies and advantages.
Payday loans are the short-term loans used by Canadian business owners to access quick cash and meet their financial needs. The lenders are available 24/7 at your service. As soon as you meet the minimum requirements, the money is transferred to your account without any hassle. This loan is specifically designed for people with a poor financial status in Canada.
Now, the burning question is, why would a Canadian business owner want to go for payday loans instead of the traditional or conventional ones? Well, to get an answer to this question, keep scrolling.
Let’s get started!
- To bridge the financial gap as soon as possible.
The basic function of a payday loan is to meet the financial requirement. Of course, every loan is taken for the cash, so what makes payday loans so special?
Suppose you need to pay your creditors within the next 48 hours. You can’t apply for a traditional loan because, firstly, due to your bad credit score, it won’t get approved. And secondly, even if it does get approved (chances of which are very less), it would take weeks to get the funds transferred.
Payday loans not only come with minimal formalities but also, quick transactions seem like a bonus. As soon as the lender confirms that the borrower is 18 (or above) years of age, with a legit government-approved id, and a bank account, the funds get transferred to the borrower’s bank account within minutes. That was really quick. Right?
- To dodge the credit check.
A credit check is one of the reasons why 6/10 loan applications get rejected. Conventional banks need to ensure that the borrower can repay the balance on the due date. And that is what collateral security is for. You either put your home or other valuable things as collateral for the loan.
On the other hand, the payday lender has nothing to do with your credit scores. Hence, guaranteeing the loan application approval. The lender either takes a post-dated check or your bank details to withdraw the money on the due date. This way, even if you forget to repay the balance, the lender will be paid in full automatically. That’s really convenient! Now your bad credit score isn’t a hindrance anymore!
And yes, don’t forget to check the authorization of the lender. You’ll be giving a lot of personal details along with access to your bank account, so better make an informed decision.
- For flexible cash
Many traditional banks offer loans with a minimum or maximum cash limit. But with a payday loan, the borrowers can opt for the amount they need. The loan amount can vary from $50 to $1500, depending upon your requirement and state laws.
The qualifying amount depends on the profitability of the business. Although, most states have laws regarding establishing maximum payday loan amounts.
So, you’ll get the amount according to your income, which is a fair point because this way, you won’t fall into the trap of the debt cycle. Also, the cash generated from payday loans can be used for whatever purpose. From your business expenses to meet your personal requirement, you can use the cash as per your needs.
- Early repayment policies reduce their overall payment.
A business owner knows the importance of saving every single penny. With payday loans, the balance is paid with the next profit along with interest. For example, suppose a business owner takes a loan of $100 for a month. The borrower earns the profit before the due date. The business owner can easily repay the loan before the due date to save on some interest.
Such convenient policies made payday loans different from conventional loans and proved to be feasible and the best option to generate quick cash within a short period of time.
- To ensure confidentiality of the details.
Business owners often deal with a myth that providing their bank details or ID card information to payday lenders might get them and their business into trouble. But, you don’t need to worry about this. Your personal information will be kept confidential and perfectly safe.
The payday loan lenders do not share your information with any third party. The lenders make sure that your personal or business details do not fall into the wrong hands.
To sum it up,
Payday loans are a great way to deal with unannounced financial troubles. The business owners apply for such types of loans to minimize the paperwork, formalities and get some quick hands-on cash. In fact, many business owners in Canada opt for payday loans because of their convenience and reliability.
So, next time you find you or your business struggling to cope with financial issues, you know what to do. Right?
This content was originally published here.