Are payday loans quick to process? #infographic

Are payday loans quick to process?

When you are in need of cash fast to pay for bills, medical expenses or other emergency situations, it can feel stressful and overwhelming to handle. Fortunately, there are a few options available depending on your location, qualifications and the amount of cash you are seeking to get in advance. If you are currently employed and you can provide proof of income, fast payday loans may be the right choice for you and your situation.

A payday loan is a loan that is provided to an individual who is currently employed and can show proof of income on a regular basis. Payday loans allow you to get cash in advance for a set period of time which must be paid back by a set date to avoid additional fees and penalties. Many times, payday loans require you to pay an interest rate that is often determined by your credit or financial history and current situation.

Banks offer a wide array of credit products, so their approval process has to be highly flexible.  This flexibility comes at a cost, as it adds layers of complexity.  When your loan application enters a traditional bank's underwriting process it will end up shuffling between several different departments and assessment officers before it reaches the right person.  Each person will have to read the application and make a decision on its individual merits before forwarding it down the line.

All this work comes at a cost, which can be easily recouped on a $500,000 mortgage, but can be more difficult on a $200 loan where they can only charge somewhere close to prime.  Payday lenders specialize in a very small segment of the credit market, allowing them to streamline their processes to make small loans affordable to offer. How fast are they? In fact, My Canada Payday offers virtually instantaneous loans. That's right, after approval funds arrive in just minutes.

Are payday loans quick to process? #infographic

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