The global digital revolution of the past two decades has set off an unprecedented expansion of the online lending industry across Canada. There are hundreds of certified lenders out there, with each targeting specific individuals and companies. To find a lender that suits your borrowing needs, you need to conduct some research. Read on for a few tips to keep in mind when choosing a Canadian online lender for a business or personal loan.
Check their credibility
Credibility should be a top priority when researching lenders. There are many credible Canadian loan companies, but that shouldn’t lull you into thinking everyone you bump into will put your interests first. The best way to tell trustworthy companies from scammers is to visit review sites and see what previous and current customers have to say about them. Settle for a lender with a combination of the most reviews and the highest star rating.
1. Check their loan approval speed
Contact each of your candidates and enquire about their loan approval speed, particularly if you want the money urgently. Ask about the steps you have to follow, and if at all, you need to avail yourself at their physical office to finish the application process. If you are required to visit an office, find another option as there are many lenders that won’t ask that of you.
2. Ask if the collateral is a requirement
Unless you have plans to default on the loan, you shouldn’t be worried about collateral. Unfortunately, that’s not the only aspect where the presence or absence of collateral matters. Secured loans typically take longer to process as some lenders require that you submit the papers in person. They will also need time to review the documents plus your credit score before approving your loan request. Unsecured loans will almost always offer more convenience than secured ones.
3. Consider the quality of customer service
Communication is key in any transaction that involves money. You want to ensure your lender’s customer service is excellent from the word go to avoid costly miscommunications along the way. Note how fast they respond to your inquiries and how acquainted they are with the company’s service structure and rulebook. If they seem thoughtful, there is a good chance their services are just as good.
4. Research interest rates
There are many factors more significant than interest when it comes to business and personal loans, but there is no way you can ignore the cost of credit when there are so many options on the market. Research the market interest rates and see how your candidate compares to other companies with similar loan terms. The company with the most favorable rates should be given the nod only if it is credible and has a convenient application process.
The Canadian online lending landscape will only keep growing, and that means you will have more lender options to choose from in the future. These tips will help you find an online lender whose service catalog is aligned best with your preferences.