The top eight benefits of online cash loans in Canada for your business
Need a short term boost of funds right now? Here are the top eight benefits of online cash loans in Canada for your business.
At some time in your life you’ll probably find yourself with a shortage of cash to bridge a funding gap. And right now, with the current situation, this need might be acute if you run a small business that’s been hit by the pandemic.
This is where loans can come in handy. And luckily, today, you no longer need to physically go to a bank to get a loan. You can simply go online and take out a cash loan in Canada – which is very useful when you can’t leave your home, or have no time to visit a bank.
What is an online cash loan?
So what exactly is an online cash loan? Just like its name implies, an online cash loan is a loan that you can apply for through the internet.
This means that you don’t need to leave your office or home to visit a bank physically to apply for a loan. All the exchanges of communication and information between the lender and the borrower are conducted online for the entire application process.
It’s very hassle-free, stress-free, convenient, and quick.
What are the benefits of online cash loans in Canada?
Online cash loans are not just for personal use. There are also numerous cash loan online providers who can help you finance your business, if you need funds.
Because of their nature, online loans can be very beneficial for your business, especially when compared to other types of loans. Here are just some of the benefits of online cash loans in Canada for your business.
1) Increased borrowing limit
When it comes to online cash loans, they often have a higher borrowing limit when compared to credit cards.
Because your credit cards are tied to a credit limit, this usually means the amount you can access is lower. With online cash loans, your finds aren’t restricted by a credit limit.
How much you can borrow depends on the bank’s decision. And this in turn will depend on your credit score, historical payment performance, income, employment history, possible delinquencies, and debt to income ratio.
When you are borrowing for your business, you’d want a higher amount to cover your capital expenditures, and online cash loans can often provide that for you.
2) Lower interest rates
When taking out a loan, it’s important you check the interest rates, and compare the interest rates of different lenders and loan products. The closest competitor of online cash loans are credit cards, as you can also get money from your credit card without having to go to a physical bank.
However, when compared to credit cards, one of the many advantages of online cash loans is the lower interest rate.
Credit card loans usually have the highest interest rates because it is compounded. This means that they also add interest on the interest incurred historically.
When you are running a business, taking out a loan will incur interest costs – and these need to be factored into your calculations when considering if you can afford to take out a loan and meet the repayment requirements. If you get a loan with a lower interest, then you can save on your costs in the business.
3) Convenience and ease
With the unprecedented current situation, the world was pushed to digitize many processes as most people cannot leave their homes. This is where online cash loans have really come into their own.
In a time like this when cash is tight, online cash loans may be a solution for businesses to get funding, even if they cannot actually visit a bank.
As all communication and exchanges of information is done online, it is very convenient for businesses in Canada to get the funding they need anywhere, anytime. All you need is a mobile phone or laptop with a stable connection to the internet.
With these, you can simply visit a website and apply for a loan. You can also submit your application and documents then and there – there’s not even a need to go to the post office to mail anything.
When running a business, time is always of the essence, and you can’t afford precious time to make an appointment and visit a bank (even if it’s possible to do so).
Online cash loans are a convenient way to apply for funds quickly and easily. You don’t even need to wait for office hours to start applying for a loan – you can even do so in bed, if you wish! Now what can be easier than that?
4) You don’t usually need collateral
Another big advantage of online cash loans in Canada is that collateral is rarely required. So you don’t need to worry about the bank taking your house, vehicle, or heirlooms if you default on the loan.
When it comes to documentation, this also lifts the burden from your shoulders because documenting collateral for a loan can also be troublesome and time-consuming
In addition, there are costs that come with putting up land, property, vehicles, and similar, for collateral. For example, with land, you need to affix an annotation in the land title, which will cost you fees. You’ll also need to hire a lawyer. To avoid having to put up collateral, you can opt for online cash loans instead.
5) Longer and more flexible repayment terms
Online cash loans are designed to be flexible and have longer repayment terms of around two to five years- often longer than payday loans, credit card loans, and pawn shop loans.
With longer repayment terms, you can make smaller installments on a regular basis, when compared to loans with a shorter term. This will also give you flexibility to plan out your business expenses and recover the funds you have deployed from online cash loan proceeds.
When it comes to flexibility, you can also tweak the repayment schedule depending on your preference. For example, instead of making equal amortizations on principal payments, you can choose to get a sculpted repayment scheme to fit your cash inflows and outflows, which is perfect for businesses.
Depending on your income and expense streams, you can decide how you are going to pay for your online cash loan.
6) They’re more accessible
One of the advantages of online cash loans is accessibility. When you compare online cash loans to traditional loans, online cash loans are less picky when it comes to picking who they lend money to.
So it is often faster and easier to get approved for a loan when you apply for an online cash loan. The lenders for online cash loans are often willing to take on more risk, which means that you can get approved even if you have a low credit score.
As long as you have a steady income in your business, you can often get the money you need to keep your business going. This makes it more accessible to more businesses in need, especially in times of crisis.
7) The processing time is faster
With traditional banks, the usual complaint is the processing time. It often takes quite a while for traditional bank loan applications to get processed.
Sometimes, the whole approval process for a traditional bank will last a few weeks. But fortunately, with online cash loans, they have solved this bottleneck.
A popular benefit of online cash loan is speedy approvals. Approval is processed faster because the application process is simpler. You’re also asked to provide less documentation.
Basic documentary requirements include proof of identity, address, and income. It’s that simple. So the application process will only roughly take 15 to 20 minutes of your precious time as a business owner.
Sometimes, the whole process of approval only takes hours. After you are approved, the loan proceeds will automatically be deposited to your bank account on the next business day. You don’t even need to go to a physical bank to collect or process your loan. If you need money fast, then an online cash loan will be perfect for you.
8) It covers emergency expenses
Because anything that can go wrong will go wrong, there will be times when you will have emergency expenses in your business.
With an online cash loan, you can quickly settle these expenses because of the speed of approval. In addition, you will be required to provide less proof of where you used your funds when it comes to an online cash loan.
Usually with traditional loans, you can only use the proceeds for a specific purpose. With online cash loans, you have more flexibility on where you can use the funds. You can even keep the use of proceeds confidential when taking out your loan.
Is an online loan right for your business?
These are strange times, and right now it’s unlikely that you’re experiencing ‘business as usual’. If you need funding to help you through this period – especially if you need money FAST – then an online loan might be right for you.
With longer repayment terms (and flexible options), plus less requirements for documentation and easy and quick online applications, they can give you the short term cash boost you need to keep your company going.
Photo by Ali Tawfiq