Pros of Choosing Short Term Loans in Canada

If you go by the definition of a short term loan, it is a loan that needs to be repaid within a year or less, and from this very feature, all the pros and cons of short term loans emerge. The short term loan category includes a variety of loans ranging from payday loans to instant paperless short term loans in Canada, credit union loans and bank overdrafts. In this post, we will look at the pros of short term loans.

Pros of Short Term Loans

1. Instant Amount Transfer

If you need emergency funds, instant short term loans from online lenders are the best way to meet your emergency needs. You can easily get approval within a few minutes if you meet the criteria of the lending platform or lenders. Your application will be processed, and money is transferred to your account the same day. Easy peasy!  

2. Approval with Poor/Bad Credit Score

Not all short term loans options lend you money with bad credit, but some do. For example, a bank or credit union will perform a credit check before lending you money, but an independent lender is willing to accept your loan application even with a poor credit score if you are earning a steady monthly income. You can search online for no credit check loans in Canada to find the lenders that offer short term loans with bad credit.      

3. Flexible Repayment Schedule 

This sets short term loans apart from typical personal loans. If you want to pre-pay the loan, you can do it without penalties. Some lenders even allow you to postpone the monthly or biweekly installment for a basic fee if you want. However, it is not the case with every short term loan. Payday loans charge you hefty penalties if you miss the payment date.

4. Unsecured Loans

Short term loans are usually unsecured as it is a small-dollar loan to meet working capital needs. The only thing a lender is interested in is your ability to repay the loan.  

5. Revolving Credit Feature 

Some short term loans allow you to re-borrow the money up to an agreed limit upon the repayment of the debt, similar to a credit card. This revolving credit feature makes the loan highly usable and flexible for borrowers. Flexiloans is a leading platform in Canada that offers such loans.

So these are few pros that make short-term loans in Canada a good option for meeting working capital needs.