Short Term Loans Richmond 2019

Throughout your life, it’s likely that many different expenses will come your way, especially in British Columbia, where the average cost of living can be more substantial than many other places in Canada. Richmond, being part of the Greater Vancouver Area, is no exception. So, if you’re currently dealing with the cost of living or even an unexpected expense, a short term loan might be the solution you need.

How to choose the best personal loan for your needs. Click here.

How Should a Short Term Loan Be Used?

A short term loan is a type of credit product that comes as a small to moderate amount of money, usually $5,000 or under. While some lenders may grant you the loan using different payment options, such as e-Transfer or cheque, most will have it deposited directly into your bank account upon approval.

A great thing about this kind of loan is that you can acquire one through almost any financial institution, like a bank or credit union. However, prime lenders like those can be a little bit harder to qualify with, because their approval standards are more strict. If that’s the case, you can also apply for a short term loan through a subprime lender, such as a private, alternative, or bad credit institution (learn more about getting loan qualifications here).

Once the money is in your bank account, you’re free to spend it on whatever you like. That said, any loan, no matter how small, is a serious responsibility, since you’ll be in debt to your lender until it’s been fully repaid.

Therefore, it’s better to only use it to cover essential costs, such as:

  • A car accident or other financial emergency
  • General home maintenance and repairs
  • Taxes, utility bills, and other recurring charges
  • Groceries and household supplies
  • Unexpected travel or medical expenses
  • Fixing broken appliances or buying new ones altogether

How Does Bad Credit Affect Daily Life?Did you know that bad credit can affect your daily life? Click here to learn more.

Short Term Loans vs. Payday Loans

Another kind of loan with a short term is the payday loan, which you can often find online or on the streets of Richmond. Distinguishing between these two loan types can be confusing, since a payday loan is also a relatively small amount of money that’s faster and easier to get approved for than some larger loans, such as a mortgage.

Short Term Loans

  • Sometimes involve a more complicated/strict approval process
  • May require you to have a decent credit score and higher minimum monthly income to qualify
  • May take several days to be approved and deposited
  • Are potentially larger than the average payday loan
  • Come with more flexible repayment plans (if you have good creditworthiness)
  • Can have slightly higher interest rates than other credit products (due to their short terms)

Payday Loans

  • Only require that you have a job, bank account, and address to receive approval
  • Are usually deposited within the same day that you’re approved
  • Generally, range from $100 – $1,500 (smaller than almost any other loan)
  • Often come with non-negotiable payment plans of 14-days maximum
  • May have far higher interest rates than the majority of credit products (the maximum rate permitted in BC is $15 per $100 you borrow)

In the end, a payday loan might be the easier choice for you simply because the approval requirements are so minimal, which can be especially helpful if you have an immediate expense on your hands. That said, before you apply for one, it’s very important to understand the potential risks involved with any payday loan.

Remember, payday loans come with extremely high interest rates and less adjustable payment plans. If you’re qualified, most short term loan lenders will allow you to stretch your payments out over several months, maybe even several years. On the other hand, if you don’t cover your payday loan sum by the end of the 14-day period, a hefty defaulting penalty upward of $40 – $50 will be applied. All of this can lead to severe debt problems and reduce your overall financial health.

How to Break The Payday Loan CycleCheck out this infographic to learn more about the payday loan cycle.

Be sure to walk in the other direction if the supposed lender…

  • Demands a payment, such as “loan insurance” before the loan is deposited
  • Uses manipulative or forceful language to get you to pay
  • Doesn’t have at least a physical mailing address
  • Offers you a loan contract that lacks important details
  • Refuses to give you all the information you need about the costs involved
  • Tells you, you’ll be 100% guaranteed for approval, no matter what your financial situation is (even real payday lenders have certain standards you must meet)

Looking for relief from payday loan debt? Click here.

How to Make The Approval Process Easier

Let’s assume that you’ve decided a short term loan is right for your case. Although every lender’s approval process will vary, all lenders need to confirm that you have the ability to keep up with any payments. The stronger your finances are, the easier it will be to get approved for a larger loan amount. Furthermore, good financial strength can help you earn a lower interest rate, as the lender will be taking less of a risk on you.

Therefore, it’s important to go into the process with the best “creditworthiness” you can muster, which you can do by:

  • Regularly monitoring your credit report for errors, signs of fraud or identity theft
  • Dealing with any unpaid debts you might have
  • Improving your credit score as much as possible
  • Asking for a pay raise, working overtime hours, or applying for a second job
  • Reducing your unnecessary expenses (memberships, clothes, eating out, etc.)
  • Offering an asset (car, property, etc.) as collateral
  • Finding someone to cosign your application

Canadian Credit Score

Take a look at this infographic to learn more about how credit scores are calculated.

The Pros and Cons of a Short Term Loan

In reality, a short term loan in Richmond, like any credit product, does come with a few pros and cons that can impact your finances in various ways. Make sure to weigh them properly and even talk to a financial advisor prior to applying.

Need to get approved for a loan as a student? Check this out.


  • Available with almost every lender
  • Easier to get approved for than larger credit products
  • Simple solution for small to moderate expenses
  • Good credit/financial health can lead to lower rates and flexible payment terms
  • Timely/full payments improve your credit health and financial strength


  • Higher interest rates than credit products with longer terms
  • Bad credit/finances can lead to even higher rates and less flexible payment terms
  • Scams, fraud, and identity theft are possible without prior research
  • Defaulted payments will damage your credit health and financial strength

Ready to Apply?

If you’re in the market for a short term loan, there’s no better place to go than Loans Canada. We’re here to set you up with the best lending sources in Richmond. Contact us today for more information or apply below if you’re ready to take the next step toward a better financial future.

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Bryan completed the Cinema, Video, and Communications program in Dawson College and holds a Bachelor’s Degree in English Literature & Creative Writing from Concordia University. Bryan covers a wide range of topics for Loans Canada, including cred...

Lenders in this region:
Provider Rating
Pylo Finance 4/5
Fresh Start Finance 4/5
Marble Finance 5/5
Money Mart 4/5
Speedy Cash 5/5
Private Loan Shop 5/5
Progressa 5/5
My Canada Payday 4/5
Mr. Payday 4/5
Money Provider 5/5
Loan Express 3/5
Loan Away 5/5
Lendful 3/5
LendDirect 5/5
Health Smart Financial Services -
GoDay 5/5
iCash 5/5
Focus Financial Inc. 2/5
FlexFi 5/5
Eastern Loans 5/5
DMO Credit 5/5
Capital Cash 2/5
Credit 700 2/5
Credit Club 5/5
Credit2Go 3/5
Ledn 5/5
Amber Financial 5/5
Affirm Financial 5/5
310 Loan 2/5
Newstart Canada 4/5
Ferratum 5/5
SkyCap Financial 3/5
Fairstone 2/5
Lending Mate 5/5
Consumer Capital Canada 2/5
Lamina 3/5
Loans SOS -
514 Loans 5/5
CashCo 5/5
UrLoan 5/5
Loan Me Now 4/5
Captain Cash 3/5
BC Loans 4/5
Urgent Loans 4/5
Easy Financial 3/5
Mogo Finance 4/5
Cash Money 5/5
Borrowell 5/5
Magical Credit 5/5
Provider Rating
SharpShooter Funding 5/5
First West Credit Union 5/5
Meridian Credit Union 5/5
Laurentian Bank of Canada 5/5
HSBC Bank Canada 5/5
National Bank 5/5
Canadian Imperial Bank of Commerce (CIBC) 5/5
Scotiabank 3/5
Bank of Montreal (BMO) 3/5
Royal Bank of Canada (RBC) 5/5
CWB National Leasing 5/5
Money in Motion 5/5
Lease Link 5/5
FundThrough 5/5
Econolease Financial Services Inc. 5/5
Easylease Corp 5/5
Dynamic Capital 5/5
Capify 5/5
Canadian Equipment Finance 5/5
Capital Key 5/5
Cashbloom 5/5
BFS Captial 5/5
BDC 5/5
Baron Finance 5/5
B2B Bank 5/5
AOne Financial Solutions 5/5
Borrowell 5/5
iCapital 5/5
Lendified -
IOU Financial 5/5
Company Capital 5/5
OnDeck 5/5
Evolocity 5/5
Lending Loop 5/5
Thinking Capital 5/5
Provider Rating
Car Creditex -
Auto Capital Canada 5/5
Carfinco 5/5
Canada Drives 5/5
Prefera Finance 5/5
Approve Canada 5/5
2nd Chance Automotive 5/5
Newstart Canada 4/5
SkyCap Financial 3/5
Splash Auto Finance by Rifco 5/5
Carloans411 5/5
AutoArriba 5/5
Provider Rating
Newstart Canada 4/5
BHM Financial 2/5
Provider Rating
Centum 5/5
Broker Financial Group Inc. 5/5
Bridgewater Bank 5/5
Alpine Credits 5/5
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