In Canada, for the masses with great credit and no issues, there are chartered banks, many credit unions, some investment banks and some regional banks.
For the self employed, seasonal workers, gig-economy workers and those with poor or no credit history, there are a handful of large national alternative lenders with storefronts charging over 27% interest, a slew of payday lenders in possibly the most litigated form of borrowing over the last 17 years.
Starting around 2013-14, fintech became a new term to describe lenders that want you to apply online and get a quick yes or no within one day, no phone consulting and no frills.
Fast forward to 2020 and you’ll notice fintech lenders dominate the alternative lending landscape online. They do not open physical shops and, although they will take calls, they really want online applications from people who are ready to borrow immediately if approved.
With so much to consider, how can you know where to turn?
Here Is What To Do
1. Look for a lender on a mission to do good for its borrowers. Check their website and look for companies whose owners have a passion for helping in tough situations and have been there for years or decades
2. Look for straight answers right away. Ask about fees, how long it will take and what they need in order to approve you.
3. Avoid lengthy back and forth phone calls. A true fintech company will make the approval process fully automated, online, fast & easy.
4. Reviews matter. A good company will have reviews from real people who have been helped in the past BUT too many reviews and they may have be fake posts bought from an ad company.