Many customers need help with unexpected expenses that can really cause problems in a person's everyday life. More than two million Canadian citizens take advantages of unsecured short term loans in amounts that range from $100 to $1,500 annually. These types of loans are available in over a thousand offices across Canada, or better yet, they can be accessed quickly and efficiently online.
Companies who give payday loans first arose in Canada in the 1990's because there was more of a need for short term loans in small amounts at the time. When many businesses began outsourcing their payroll function, they were unable to give traditional salary advances to their employees. Also banks were not able to process these small transactions, this opened the gate for the payday loan business.
Payday loan companies don't just give money to everybody, they only service people who have identification, proof of employment, and a personal checking account. According to the Canadian Payday Loan Association, 53% of all customers are women and 47% happen to be men, the majority of which have average incomes. Also most who apply for a payday loan are educated people who are aware of the cost of obtaining the loans, but factor in just how convenient it is to get the service they need at the time.
These loans are typically used for unseen expenses that can put a strain on a person's finances. Payday loans are not meant to be used regularly as a way of juggling incomes. Also government regulations stop the payday loan companies from becoming too much in debt. When a customer borrows money, he or she must write a check from their next payday to pay back the loan and it's interest. Usually the customer has just exhausted all other methods of getting the necessary funds.
Loan companies are strictly governed by the federal government in eight provinces in Canada. Payday loan companies have also developed a Code of Best Business Practices. Members of loan companies are also highly encouraged to provide counseling services to their customers who have difficulty with their finances.
With the internet's growing popularity, it is now possible to get payday loans online in Canada
. It is easy to access and much more convenient for everyone. Getting the payday loans online is a much more preferred alternative to the traditional way.