In a country like Canada, it is quite tough to establish and operate a small business. A fully developed country like this has quite a lot of competition in the market and not every business can survive it. Small business owners need to be strategic about operating their company effectively so that they can not only stay afloat in the market but also scale and boost their business. There can be multiple instances where a small business would need some cash in an emergency, such as meeting the deadline for an important payment. This is where the beauty of payday loans come in. These are small loans that can be paid off in a single payment in a short period of time. They can be vastly beneficial for small businesses trying to keep themselves afloat. No business can have profit all year round. There are bound to be some months where they struggle to make ends meet. These are the defining and crucial moments where small businesses make or break it. Here are some of the top reasons why payday loans are actually a blessing in disguise for small business owners.
The comfort of online loans no credit check instant approval Canada
Online payday loans provide a huge variety of benefits to the applicants. The top three benefits as rated by financial advisors are:
- The ease
A business owner who is busy night and day handling their company operations might not have the time to go out and personally apply for a loan. It is hard to take a few minutes out of their busy work schedule. Experts at FriendlyLender describe how such loans offer the ease of applying for a loan from the comfort of your workplace. Traditional bank loans require you to visit the bank multiple times before even getting your loan considered or approved. All you need in order to apply for an online payday loan is a few documents and a working internet connection.
- No credit check
A lot of people in Canada do not have a credit history. What is worse than having no credit history is having a bad credit history. Banks require people to undergo vigorous and extensive credit history checks in order to see if the applicant fits their criteria for approving a loan. This leaves a lot of people with no option of getting a loan from a bank. A lot of payday loan lenders do not require the applicant to go through a credit check and some even provide a loan to those with bad credit history. This can be quite beneficial for small business owners who have a bad credit history and cannot apply for a loan from a bank.
- Offer the applicant instant approval
If you have applied for a loan at a bank before, you know very well that loans take time to get approved. A bank requires your permanent address, a valid ID, proof of steady income and most importantly, good credit history. You have to visit the bank multiple times before getting your application reviewed. It offers the comfort of instant approval. This feature is quite handy when you have an important payment suddenly due, or an unexpected emergency. Most payday loans are approved within 24 hours of applying for them, making it quite an attractive feature for small business owners.
Do not require any collateral
Another salient feature of payday loans is that it does not require any collateral from the applicant. A lot of loans such as home loans require putting up collateral in case payments are not being made. Payday loans are small microloans that range from $100-$1000. Such small loans do not require any collateral and can be paid in one go at your next “payday” hence the term payday loans. In case an applicant fails to pay back the money within the specified amount of time, he or she can work it out with the lender and pay it back on a new schedule with new interest rates.
Do not impact your credit history
Payday loans really are a blessing in disguise for business owners. If you are late with even one payment in a traditional bank loan or even for your credit cards, it impacts your credit history. This in turn can be very harmful when you want to apply for a business loan from the bank. Payday loans are not generally reported to credit reporting companies. So basically, they do not impact a person’s credit history.
Can be used for almost anything
A lot of traditional bank loans have various specifications as to how you can spend the money obtained from the loan. This is why there are several different kinds of loans such as education loans, home loans, business loans, etc. Payday loans on the other hand can be spent almost anywhere as long as the applicant pays the money back within the specified amount of time. It can be used for new office equipment, for paying salaries to your staff, for advertising your business, for certain payments and can even be used for a last-minute vacation.
Have fewer requirements
Unlike traditional bank loans, payday loans have few requirements that need to be fulfilled in order to apply for one. To apply for this loan, all you need is proof of steady income, a valid ID, your permanent address and for you to be above the age of 18. It is easier for business owners to apply for them for emergency cash than to avail of other options. It is quite tough to stabilize a small business in Canada. One has to look after a multitude of things such as salaries, profit, business plan and even customer service. It is pretty tough to boost your business in such a competitive market, but payday loans can really help a business during hard times.