If you find yourself in a situation where money is tight, know that you are not alone. Many Canadians find themselves in short term financial situations where they need some extra help. Perhaps you’ve had an unexpected home repair, your car has broken down, or you are just looking to consolidate your debts.
If this sounds like you, a loan may be a good option. But with so many options for applying and receiving loans, the choice can be overwhelming. The good news is that there are loan agencies that help streamline this process. But just like with any financial matter, it is important to take your time to ensure you are making the right decision for you and your family by seeking out a loan.
What is a loan agency?
A loan agency is a lender that is able to authorize funding to borrowers under a specified contract. Usually it is for individuals or businesses that are in need of quick cash due to an emergency or tough financial situation.
A loan agency has the ability to determine if a borrower is eligible for a loan, and how much money they are willing to lend. Once a loan has been approved the two parties sign a contract, with pre-determined loan repayment terms usually reflecting the borrower’s ability to pay.
While there is often a list of requirements to be met before a loan can be approved by an agency, for many Canadians it is a great short term option to get their finances back on track. Some agencies even offer child tax loans, and other services.
Advantages of a loan agency
- Unlike a bank, the process of applying for a loan through an agency is designed to be fast. It is possible to get the funds in a very short amount of time.
- You can often apply for a loan 24/7, especially from an online agency. This is an advantage for truly urgent cash loans.
- Loan agencies can be either online or in person, meaning there is likely a loan option that is right for you. Make sure to do your research to find a Canadian loan agency that matches your needs. It also helps if the the loan agency is in the same city or province as yours. So if you live in Ontario, make sure you have access to physical location within the province. Not a necessity, but it helps.
- Private loan lenders often have a well-established customer support system, meaning that any questions or concerns can be discussed with a loan agent.
- Depending on the agreed terms of the loan and the borrower’s ability to meet repayments, a loan agency can provide an option to let you consolidate debt and reduce your monthly interest
How to find a loan agency
While it may seem overwhelming, the good news is that there are many options for finding a loan agency near you.
- Start with a google search for “Canadian loan agency” or “loan agency'' in my area.” This will be a good starting point for loan agency options.
- Decide if you are looking for an online-only or in-person loan agency, and narrow your search down accordingly. For example, if you are in Manitoba, the amount of physical locations might be few.
- Make sure to read reviews of the agencies you are looking at. It is important to choose a reputable and trustworthy agency, especially when you will be sharing important financial information with them.
- Look up the urgent cash loan application procedure for each agency and decide which works for you. Many have their forms and required details available online, which can make the process extremely swift (even if you plan on applying in person)
What to look for in a loan agency
When searching for a loan agency that meets your needs, it is crucial to do your due diligence. Like with any financial matters, there can be scammers out to steal your financial information or money. To avoid this, here are some important factors to look for:
- Loan agencies must be licensed to practice in Canada, and their licensing information should be freely available (or presented upon request).
- There should be a guarantee between the lender and borrower that any sensitive financial information is kept securely to prevent your identity from being sold or stolen.
- A reliable lender should have a strong history of positive reviews online. If there are bad reviews or no reviews it can be a sign of a scam or a dodgy loan agency. A loan is not the place to take a chance on a new business.
- All communication from the lender should be clear and in writing. There should be no confusion about terms of repayment or loan conditions. Remember that even if you are only borrowing a small amount, you will still be entering a legal contract and all documentation should reflect this.
- As well as this, the loan agency should also be easy to contact with effective customer service. It is important to trust that any questions or concerns you may have regarding your loan will be quickly and thoroughly addressed
What if my credit is bad?
If you have been previously denied a loan from a bank or an agency because of bad credit, you may believe that you are not eligible for a short term personal loan. This is not necessarily true as there are many agencies that specialize in low or no credit lending.
While your credit score will likely still be checked as a formality, it is very possible to be approved for a loan from an agency, even with bad credit.
When money is tight it can feel scary, but know that there are options for quick cash that can help! A loan agency may be the right option to help you get ahead and take control of your financial situation, or to get you out of an emergency situation. Make sure to do your research, and you may be one of the many Canadians that takes advantage of this easy financial resource.